Lodging
Hotel revenue growth from food, beverages and other ancillary sources is lagging overall revenue growth,
according to PKF Hospitality Research. Data collected from 6,500 hotels in 2011 and 2012 showed room revenue was up 6.3 percent but total revenue rose 5 percent, meaning hotel revenue from other sources grew less quickly. PKF Hospitality Research president Mark Woodworth noted that in response to rising room rates due to increased occupancy, corporate travel buyers and meeting planners have placed "limitations ... on the amount conventioneers and business people can spend on ancillary services and amenities. We already have seen hotel owners and operators react to this trend by reducing the levels of food and beverage service at their properties, along with an enhanced focus on building select-service hotels."