About this report

Eating out is an increasingly popular activity amongst consumers in the UK, in part driven by agrowing proportion of disposable income that is being spent on leisure, but also due to theproliferation of concepts and brands in the restaurant sector that is generating more interest indining out. This has had a profound impact on the hotel sector; food and beverage provision is nowseen as a means not only to generate additional revenue but also a way of attracting consumers tostay in their hotel.

Despite headway made in the top-end of the hotel catering sector, strong growth in the budgetsector where food and beverage provision is limited virtually or non-existent, has had a negatingeffect on the year-on-year growth in the hotel catering sector. Indeed, when inflation is taken intoaccount, the hotel catering sector has in fact diminished in value by 6% since 2000. In 2005 it isestimated that Ѓ’4.1 billion will be spent on dining in hotels. The proportion of overall hotelrevenue generated by food and beverage activity has risen over the last five years from 35.8% in2000 to a forecast 38.9% in 2005.

Contents

• New Page 2 Introduction and Abbreviations
• Definition
• Consumer research
• ACORN
• Abbreviations
• Summary of Key Report Findings
• Hotel catering is worth ｣4.1 billion
• Promising results from the hotel sector
• Polarity developing within hotel catering market
• Hotel food and beverage strategy -- an evolving form
• Hotel visitors and hotel guests
• The price is not right
• Outsourcing to increase alongside more innovative developments
• Market Factors
• PDI and consumer expenditure on the rise
  • Figure 1: PDI and consumer expenditure, at current and constant prices, 2000-10
• Inbound tourism to the UK
  • Figure 2: Trends in overseas visitors to the UK by country of origin, 2000-04
  • Figure 3: Inbound visitors to the UK by reason for trip, 2000-04
• Domestic tourism
  • Figure 4: Trends in UK domestic tourism, 2000-05
• Tourist expenditure on eating out
  • Figure 5: Tourist expenditure on eating out in the UK, at current and constant prices, 2000-05
• The hotel market -- a return to growth?
  • Figure 6: Key hotel market statistics, 2000-05
• The Meetings, Incentives, Conferences and Exhibitions (MICE) is a key source of income
• Demographic factors
• Age
  • Figure 7: Structure of the UK adult population, by age, 2000-10
• The eating out market
• Healthy eating is a trend, not a fad
• The new licensing law -- a window of opportunity or an extra burden?
• Market Size and Trends
  • Figure 8: The Hotel catering market, at current and constant prices, 2000-05
  • Figure 9: Index of the hotel catering and eating out markets, at current prices, 2000-05 Figure10: Food and beverage revenue per available room, 2001-04*
• Market Segmentation
• Hotel food and beverage strategy
• Purpose of visit
  • Figure 11: The hotel catering market, by purpose of stay, 2004 and 2005
• Holidays and short breaks
• Business travel
• Conferences and banqueting
• Other hotel users
• The Supply Structure
• Major hotel groups
• Whitbread plc
• Permira
• InterContinental Hotels Group plc
• Accor
• Hilton Group plc
• Skye Leisure Ventures
• BIL International
• The Consumer
  • Figure 12: Eating out venues visited, April 2005
• The hotel restaurant user -- a demographic analysis
  • Figure 13: Hotel restaurant users, by gender, age, socio-economic group and working status,April 2005
  • Figure 14: Hotel restaurant users, by detailed lifestage groups, April 2005
  • Figure 15: Hotel restaurant users, by region and ACORN category, April 2005
  • Figure 16: Hotel restaurant users, by media, supermarket usage and commercial TV viewing, April2005
• The frequency at which hotel restaurant users dine out
  • Figure 17: Frequency of eating out, April 2005
• Eating in hotels -- guests and visitors
  • Figure 18: Usage of hotel restaurants, by hotel guests and visitors, June 2005
• What occasions have hotel guests and visitors eaten in hotel restaurants?
• Hotel guests
  • Figure 19: Hotel guests who ate in during their stay, by hotel guests and visitors who haveeaten in hotels, June 2005
• Hotel visitors
  • Figure 20: Hotel visitors who have eaten in hotels, by hotel guests and visitors who have eatenin hotels, June 2005
• What occasions do hotel guests and visitors eat in formal or informal hotel restaurants?
• Hotel guests
  • Figure 21: Hotel guests who have eaten in hotels, by the type of hotel restaurant, June 2005
• Hotel visitors
  • Figure 22: Hotel visitors who have eaten in hotels, by the type of hotel restaurant, June 2005
• The Consumer -- Detailed Demographics
• Hotel guests who ate in during their stay
  • Figure 23: Hotel guests who ate in during their stay, by gender, age, socio-economic group andworking status, April 2005
  • Figure 24: Hotel guests who ate in during their stay, by detailed lifestage groups, April 2005
  • Figure 25: Hotel guests who ate in during their stay, by region and ACORN category, April 2005
  • Figure 26: Hotel guests who ate in during their stay, by media, supermarket usage and commercialTV viewing, April 2005
• Hotel guests who did not eat in during their stay
  • Figure 27: Hotel guests who did not eat in during their stay, by gender, age, socio-economicgroup and working status, April 2005
  • Figure 28: Hotel guests who did not eat in during their stay, by detailed lifestage groups,April 2005
  • Figure 29: Hotel guests who did not eat in during their stay, by region and ACORN category,April 2005
  • Figure 30: Hotel guests who did not eat in during their stay, by media, supermarket usage andcommercial TV viewing, April 2005
• Hotel visitors who have eaten in hotels
  • Figure 31: Hotel visitors who have eaten in hotels, by gender, age, socio-economic group andworking status, April 2005
  • Figure 32: Hotel visitors who have eaten in hotels, by detailed lifestage groups, April 2005
  • Figure 33: Hotel visitors who have eaten in hotels, by region and ACORN category, April 2005
  • Figure 34: Hotel visitors who have eaten in hotels, by media, supermarket usage and commercialTV viewing, April 2005
• Non-hotel restaurant users
  • Figure 35: Non-hotel restaurant Users, by gender, age, socio-economic group and working status,April 2005
  • Figure 36: Non-hotel restaurant Users, by detailed lifestage groups, April 2005
  • Figure 37: Non-hotel restaurant users, by region and ACORN category, April 2005
  • Figure 38: Non-hotel Restaurant Users, by media, supermarket usage and commercial TV viewing,April 2005
• Users of formal and informal hotel restaurants/outlets
  • Figure 39: Types of hotel restaurant, by gender, age, socio-economic groups and working status,April 2005
  • Figure 40: Types of hotel restaurant, by detailed lifestage groups, April 2005
  • Figure 41: Types of hotel restaurant, by region and ACORN category, April 2005
  • Figure 42: Types of hotel restaurant, by media, supermarket usage and commercial TV viewing,April 2005
• The Future
• Inbound tourism uncertain
• Outsourcing is a growing trend
• In-house catering development
• Licensing hours -- an area of opportunity?
• Forecast
  • Figure 62: Forecast of the hotel catering market, 2005-10 Figure 63: Forecast of the totaleating out market, 2005-10