Minibars Can be Used For Promos While Pulling In Cash For Some Hotels

NATIONAL REPORT— Hotels are finding that minibars are a dependable way to raise revenue, even in a down economy. At The Time Hotel in New York, front-office manager Bernardo Gupert uses the minibars in his 200-room property to run promotions that offer guests checking in a free drink. He also runs happy hours from time to time, that provide “two-for-one” drinks between certain hours of the evening. Guests learn of the promotions through fliers he inserts in keycards when guests check in, or though in-room literature. Gupert said he used the minibar promotions more so in 2001 than in 2000, in order to boost sales. His hotel uses Bartech’s “e-fridge” model, which has technology that allows the hotel to program price changes of minibar items throughout the day. All told, minibars are big business for The Time, which in 2000 saw $250,000 in revenue generated from sales. Revenue Generator “It is a huge revenue generator,” he said, noting that the biggest selling item is bottled water. “I started out with one bottle per minibar, I went to two, and now stock three. I cannot stock enough,” he said, noting that all together he sells 1,000 bottles a month, a sizeable amount for a 200-room hotel. Gupert— who last year eliminated the staff position that oversaw minibars and now handles the task himself— said that he tries to use as few vendors as possible. One provider supplies beer, another hard liquor, while a third, In-room Plus, supplies all “dry goods,” which include snacks, and an “intimacy kit,” which includes condoms and lubricants. The hotel keeps a keen eye on items that do not sell well, said Gupert, who will discount a product to sell it off. “If it is not selling you can substitute it for something else that will sell. After all, your profit margin on items is 80% to 90%, so even if you halve the price, or sell it for 70%, you are making a profit.” While The Time for the most part sticks with the basics when it comes to its minibar product offerings— preferring not to sell New York souvenirs or disposable cameras— other hotels go the route of trying to sell unique items. The W Atlanta, for example, said it tries to sell non-refrigerated items that will grab guests’ attention, like hats, tee shirts, wax lips and slippers. Many items also have the W logo on them. The hotel, which uses the Dometic Refreshment Center product, calls its minibar “Munchie Boxes,” and does not lock them, in order to make guests feel more at home.