Although a key element of vacation ownership resorts' appeal is the idea that guests can prepare their own meals in the unit's kitchen, that doesn't mean they want to cook every meal while on vacation. Adding food service options at your resort provides a valued amenity for guests, and it can also be an important source of ancillary revenue. According to Court Williams, CEO of HVS Executive Search, food and beverage revenues can be upwards of 50 percent of total revenue for luxury lifestyle resorts where the restaurants and bars are also a destination for guests not staying at the resort. However, he cautions, "at HVS, we believe that profit shouldn't be the primary motive; the main reason for having food and beverage facilities in a resort is to enhance the rooms division revenue. This enables the property to offer dining facilities for guests, while the restaurant benefits from access to a continuous stream of potential diners."
The question is, what's the best way to maximize revenue and enhance guest satisfaction when adding a restaurant to the amenities at your resort? Here, the Resort Trades reports on two developers who have taken different approaches and weighs the pros and cons of each.
Concord Servicing Corporation, the Scottsdale, Arizona-based consumer obligation servicing company, has announced a significant expansion of its longtime partnering agreement with Welk Resorts, a leader in the vacation ownership and hospitality industry.