Hotel Catering- Business Users Brakes Hotel Catering- Business Users December 2012

TOC Business Traveller Overview Hotel Business Events Hotel Dining Discussion Points

Occasions requiring a hotel stay in the last two years The Business Traveller Overview YouGov SixthSense’s 2011 Hotel Catering report found a small proportion of UK adults use hotels for business travel Occasions requiring a hotel stay in the last two years When visiting family and friends 25% For romantic time with my partner 20% On a family holiday 18% 17% On a sight seeing trip On a business trip 15% However, the frequency of hotel stays makes it an important revenue stream for business and provides opportunities for food service providers. Base: 2125 nationally representative UK adults aged 16+

The Business Traveller Overview YouGov Sixth Sense's new Hotel Catering Report focuses exclusively on hotel stays for business METHODOLOGY The survey used for this report was conducted online among a sample of over 2,000 business travellers who had identified themselves as travelling and staying in hotels for business reasons. The survey was conducted over the period 5-8 October 2012

Hotel Business Users Profile The Business Traveller Overview Hotel Business Users Profile Profile of respondents that have stayed in a hotel for business ABC1s (85%) C2DEs (15%) Men (68%) Women (32%) Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

The Business Traveller Overview Business stays On how many occasions, if any, have you stayed in a hotel while away on business in the UK in the last 12 months, whether paid for by yourself or by your company? Nearly three quarters of business travellers had stayed overnight more than once in the previous 12 months Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Large chain and budget hotels are the most popular for business stays The Business Traveller Overview Large chain and budget hotels are the most popular for business stays Which of the following TYPES of hotel have you stayed at in the past 12 months for business? Large chain hotel (e.g. Holiday Inn) 52% Budget hotel (e.g. Premier Inn) 49% 28% Small chain hotel (e.g. Thistle) 17% Family run/ independent Bed and breakfast or guest house 14% 11% Boutique hotel 10% Heritage/luxury hotel 3% Self catering apartment Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Proximity to the business meeting the most important factor The Business Traveller Overview Proximity to the business meeting the most important factor Which of the following, if any, are personally important to you when staying away from home overnight for business? Proximity to where the business meeting will take place 64% Free Wi-Fi Available 51% 51% Breakfast included in the room rate Overall value for money 47% 30% Proximity to public transport Proximity to shops/restaurant/ entertainment 29% 24% Good cafes/restaurants within hotel 23% Good facilities in hotel Other colleagues will be staying there 20% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Business events and conferences present opportunity for caterers… Hotel Business Events Business events and conferences present opportunity for caterers… How many times have you attended a hotel for a business meeting or conferences in the last 12 months? 64% Around three-quarters of business travellers have used a hotel for business meetings or conferences in the last 12 months, offering a vast market for business dining. 51% 51% 47% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Business events and conferences present opportunity for caterers… Hotel Business Events Business events and conferences present opportunity for caterers… How many times have you attended a hotel for a business meeting or conferences in the last 12 months? 64% Around three-quarters of business travellers have used a hotel for business meetings or conferences in the last 12 months, offering a vast market for business dining. 51% 51% 47% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

…with hotels taking a large share of the business events market Hotel Business Events …with hotels taking a large share of the business events market Where corporate events took place, 2009-2011 64% Hotel 61% Hotels held an average of 445 business events in 2011, compared with 520 for conference and training centres and 495 for academic venues. The number of events held by hotels was well above the 369 average for all types of venue 51% Conference/ training centre 12% 51% University 7% 47% Purpose built 1% 19% Other venue UK Events Market Trends Survey 2012, published by Eventia

British food is best for business dining Hotel Dining British food is best for business dining What kind of foods do you prefer when entertaining a business associate, or being entertained yourself? 64% Traditional British Cuisine 37% 51% Italian Cuisine 35% 51% Modern British Cuisine 35% 47% Indian Cuisine 20% French Cuisine 19% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Attitudes towards hotel services Hotel Dining Fast, friendly and efficient services are rated as important factor by the vast majority of business travellers Attitudes towards hotel services 64% 51% 35% 51% 35% 47% 20% 19% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Hotel Dining Hotel’s face stiff competition in the business market from restaurants, pubs and clubs Types of venues preferred for entertaining business associates and clients 64% 51% 35% 35% 47% 20% 19% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Factors associated with restaurants and hotels Hotel Dining Food quality and choice is associated more with restaurants than hotels Factors associated with restaurants and hotels 64% 51% 35% 35% 47% 20% 19% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months Again shows that restaurants are seen as a better venue for business interaction

Most important factors when hosting a business meal in a hotel Hotel Dining High quality food most important factor when hosting a business meal in a hotel with colleagues/associates… Most important factors when hosting a business meal in a hotel 64% High quality food 25% Conducive atmosphere for business (6%), food not to expensive (5%) and good service (5%) also featured on list. 51% Fresh food cooked on the premises 9% 51% Good value for money 7% 47% 7% Wide choice of food Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

… and it also ranks highly when eating alone Hotel Dining … and it also ranks highly when eating alone Most important factors when dining alone 64% High quality food 17% Other factors such as short waiting times (6%), convenient location (5%) and free Wi-Fi (5%) also featured 51% Fresh food cooked on the premises 16% 51% Food not too expensive 13% 47% 13% Good value for money Wide choice of food 9% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Hotel Dining 64% 71% 14% 17% 47% 5% 36% 3% 5% Breakfast is taken by seven in ten people in hotels when they are with business associates or clients Meals/snacks eaten at hotel restaurant when with a business associate or client 64% Breakfast 71% Morning Coffee 14% Lunch 17% 47% N.L- Breakfast is a “key meal time” for 3663 so understanding trends around this is very important. Research for this report shows that breakfast is the meal business stayers are most likely to have eaten at the hotel restaurant. Afternoon tea 5% Evening meal 36% 3% Alcohol only Snacks 5% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

…and its also the most popular meal when eating alone Hotel Dining …and its also the most popular meal when eating alone Meals/snacks eaten at hotel restaurant/cafe when eating alone 64% Breakfast 74% Morning Coffee 11% Lunch 9% 47% Afternoon tea 3% Evening meal 34% 5% Alcohol only Snacks 2% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Reasons for not eating breakfast at a hotel on last visit Hotel Dining Of those that did eat breakfast during there last hotel visit, one in three cited it “not being included in the room rate” as the reason Reasons for not eating breakfast at a hotel on last visit 64% Breakfast was not included in the room rate 34% 51% I proffered what I could get to eat outside the hotel 22% 51% 20% I didn’t have enough time to eat at the hotel 47% 20% The breakfast on offer was too expensive Base: 359 UK business travellers aged 18+ who didn’t eat breakfast on their last business trip N.L- Again- given that breakfast is the key meal time its important to understand why business stayers are not eating breakfast at a hotel. Finding is consistent with what we see previously, breakfast included in room rate is very important.

Four in ten see eating at hotels as a necessity Hotel Dining Four in ten see eating at hotels as a necessity Consumer attitudes towards eating in hotels 64% 51% 51% 47% Base: 2,013 UK adults aged 18+ who have stayed in a hotel in the UK on business in the past 12 months

Discussion Points Women represent a third of YouGov respondents that had stayed in a hotel for business in the last 12 months, and women are more likely to have reported an increase in hotel stays in the last 12 months. Is there room for food services companies to better target women with healthy, low fat options? Restaurants are seen as a more suitable venue for business meetings/meals than hotels, with restaurants seen as better for food quality and choice. What can hotel caterers do to bridge the gap? Hotels grab a large share of the corporate events market, what can food services companies do to capitalise on the opportunities this presents for corporate/business dining? Traditional (37%) and modern (35%) British cuisine is the most preferred food choice among YouGov respondents when entertaining business colleagues/associates. Is “Best of British” always the right approach when it comes to business dining? 20% 18%