Speaking during a session at MA Leaders last month in Glasgow, Tait said accommodation was becoming an increasingly important opportunity for operators, with many looking to diversify revenue streams and capture higher margin sales.
Join our new WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day. Remember to turn notifications on in the top right corner!
He said Zonal research found 41% of operators surveyed were planning to add rooms this year, with pubs with rooms positioned between traditional hotels and short term lets.
Tait said pubs with rooms can combine the flexibility of short stay accommodation with the food and beverage strength of hospitality operators, but warned that success depends on connecting the guest journey.
Integrated technology
“The single biggest thing that we hear from operators is they want to go into the accommodation space,” he said. “They know that’s where really great margins exist, but the ones that do it really successfully are the ones that have integrated technology.”
He said operators often underperform when room booking systems are not linked with food and drink systems, creating missed sales opportunities. Examples include guests being unable to reserve a table, restaurant bills not being charged to rooms, or operators losing visibility of spend across the visit.
Tait said connecting property management, point of sale, table reservations, payments and loyalty can help operators keep guests on site and improve spend.
QR codes
He said simple tools such as in room QR codes can encourage room service orders and reduce the risk of guests ordering from third party delivery platforms. Operators using this approach often see a £5 to £7 per head increase in revenue compared with restaurant dining, he said.
Tait added that integrating table reservations into the accommodation booking journey helps secure dinner bookings before arrival and makes the restaurant a core part of the stay.
Payments and loyalty also play a key role, he said, by allowing operators to build a single view of the guest across accommodation, food and drink.
He cited Liberation Group, which added accommodation spend to its loyalty programme and attributed an additional £1m in room bookings within the first eight months.
Tait said operators should also focus on driving direct bookings through their own websites and digital touchpoints, rather than relying solely on online travel agents, which take commission.
He concluded that pubs with rooms can unlock stronger revenues when operators use technology to understand guests, reduce friction and connect every part of the stay.