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We've all been there countless hours of
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traveling. Arriving at a hotel at odd hours,
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tired, hungry, and tempted by the ultimate
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convenience the hotel has to offer the minibar.
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But a can of soda, a bag of stale chips and a
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candy bar at 3 a.m.
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adds up. In fact, it costs about 80% to 400%
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more than what you paid for at the store.
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You wanted it, and then you see the bill
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two days later.
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But initially, the minibar was put in
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rooms. It was a novelty.
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And then it sort of devolved into an annoyance.
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And Minibars got the, uh, sort of the comedic
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punchline of being undersized and overpriced.
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But the sentiment around Minibars wasn't always
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negative. In its heyday, minibars were often paired
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with the feeling of luxury and the allure of traveling,
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but the convenience factor wore off,
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becoming a hassle for guests and an even bigger hassle
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for hotels.
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Traditional minibar operation would never be
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profitable. They would always lose money.
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It is seen to be one of the worst operations at the
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hotel level.
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Operational cost climbed.
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Theft was rampant.
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Food spoiled and guest guess preferences shifted.
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Cnbc looked at why the once essential amenity became
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obsolete. The minibar didn't go global until 1974,
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when a Hilton hotel in Hong Kong started stocking its
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in-room fridges with tiny liquor bottles inspired by
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airlines.
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Then comes cocktail time, offered with the compliments
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of your host.
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Airline drink sales soared 500% that year,
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boosting Hilton's overall revenue by 5%.
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The concept quickly spread worldwide.
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Soon, minibar expanded beyond alcohol,
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adding sodas, snacks and candy.
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Hilton even standardized offerings so guests could
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expect the same selections no matter where they stayed.
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Yes. The travel.
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Want to see items that they would find in their own
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fridge at home? That's why you have Coke items or M&Ms
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would always be a bit more profitable.
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In the early days.
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Operations were simple guests.
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Your hotel staff would make note of what the guests had
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taken. As hotels began to fill each room with
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minibars. The amenity became a burden by the early
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aughts. Some chains began phasing out the minibar
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altogether, citing rising operational costs and
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declining usage as primary drivers.
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But besides the financial losses,
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the logistical nightmare of constantly checking and
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restocking proved to be a strain on hotels.
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One factor that led to the, I guess,
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the demise of the fully stocked minibar,
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and that's rising labor cost and the cost replenishing
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these in addition to cleaning the rooms.
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One minibar attendant can visit about 100 rooms per
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day. You would have four people.
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Theft was another issue since not every guest would
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consume from the minibar.
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It could take days before a guest or hotel staff
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discovered that the content of the bottles wasn't
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actually vodka or whiskey, but instead water or tea.
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Guest would dispute all charges contributing to a
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time consuming and costly headache.
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For years, one of Marriott's largest locations in Times
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Square had eight full time staffers working its 150
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minibars. But by 2004, that location moved all of
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them. The proliferation of smart mini bars was an
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effort to improve efficiency.
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Nowadays it's much easier.
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Everything is online and you would know where to go to
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visit those rooms to refill those items.
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Instead of going to visit every single room in the
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hotel.
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Bartek is one of the leaders in smart mini bars.
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The company works with 1400 hotels worldwide.
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Majority of them are luxury and high end properties.
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Only about 1 in 3 guests use a minibar if available to
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them. The average daily transaction is $12.
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So for a hotel with 100 rooms,
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roughly 33 of them generate about $400 in revenue on a
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daily basis. Despite their modest usage,
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automated minibars pay themselves in 9 to 18 months
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and typically lasts up to a decade.
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Today, manually operated minibars are pretty much
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obsolete. Agario believes they're underused in
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midscale hotels because the value customer can't justify
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spending at the minibar.
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The average daily rate is the most important factor.
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For example, if the room rate was $75 Dollars per
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night. You would.
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It's unlikely you would purchase a $5 coupe.
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Between 2007 and 2012.
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Minibar revenues at hotels dropped by 28%,
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while hotel lounge bars saw a 5% rise.
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Surveyed U.S. travelers ranked Minibars as their
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least desired amenity at a hotel.
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Eventually, hotels emptied their minibars altogether,
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letting guests use them for their own food and drinks
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instead. Lobbies are becoming more of a focal
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point.
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What do you think about hotel lobbies? They went
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through three stages and I call them three C's
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communication, commerce and community.
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So in the beginning, hotel lobbies were just a
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place for you to communicate with your desk agent.
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And then the addition of putting in revenue
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generating amenities in the lobby so that you can have a
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bar, you might have a little grab and go,
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a little restaurant. And then in the most recent redo
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of hotel lobbies, a lot of brands have
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realized that they also need communal spaces.
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Over the years, you've seen the evolution,
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much like an open floor plan really coming,
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and also with a little bit of labor.
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Thinking that there could be more synergies and that you
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could start to really fuze together.
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And it's hard to distinguish,
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really. Am I sitting in the bar or am I sitting in the
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lobby? All of this is really to draw guests out of the
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room.
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In recent years, delivery apps have seen a
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rise in popularity among hotel guests,
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offering easy access to plenty of options among
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local restaurants without the need to leave the hotel
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room. Wyndham teamed up with DoorDash in 2019,
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offering $0 delivery fees and 2000 signup points,
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and it's over 3700 locations in the US.
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Marriott Uber began its partnership in 2021,
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letting guests earn hotel points when ordering with
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Uber Eats from designated hotels.
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In 2024, Hilton named Grubhub its go to delivery
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service, giving guests perks like a free month of Grubhub
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Plus. And so far, it's worked.
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For example, the share of Uber Eats Marriott customers
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grew twice as much as non Marriott customers between
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2019 and 2025.
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Instead of having room service open till 2 or 3 in
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the morning, where they might get very few orders,
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is to basically have guests order room service from the
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entire location. So if you're in a city,
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all restaurants in town that deliver are on your room
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service menu.
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While Value and Midscale hotels have done away with
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the minibar almost entirely,
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there are some segments that still find a need for them
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at their hotels. Boutique hotels have reinvented the
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minibar concept by replacing generic snacks and drinks
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with curated displays of local goods.
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Luxury hotels have gone even further,
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offering specific guests fully customized mini bars
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that they could choose from, with delivery apps and lobby
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marketplaces offering more convenient options,
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the once iconic minibar must now evolve or risk becoming
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obsolete altogether.
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One out of three guests will consume,
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but if you have to check in every room,
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you will lose the house, even if you sell Cokes for
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$10.