With the share of banqueting in the food & beverage, or F&B segment on the rise, hotels are rushing in to tap this market. While conferences, seminars and meetings have always been the archetypal events at a banquet, product launches, weddings and anniversaries are also a part of the banqueting repertoire today and hotels are vying to play host to any of these.
Things are clearly looking up. The share of banqueting to overall F&B recorded a year-on-year increase of about 17% in 2012-13 and is expected to grow further this fiscal. Over the years, it has gone up from 33% in 2007-08 to 38% in 2011-12, and is steadily growing at a clipping pace.
Vineet Soni, resident manager, Cidade de Goa, says, “Banqueting contributes significantly to the revenue of a hotel. F&B accounts for about one-third of a hotel’s overall revenue. Total banqueting services in a five star could constitute as much as 45% of total F&B business.”
Manish Sodhi, general manager, Hotel Sahara Star & Aamby Valley City, further says, “Banquets have traditionally always been the largest revenue vertical of the F&B department and with the growing demand of superior convention and social venues, they are of course becoming more important for all existing and planned hotels. Hotels that feature a large banqueting facility with 350 to 400 plus keys end up with larger groups. They have the infrastructure to hold large MICE and social events as well as large scale exhibitions. These translate into enhanced revenues. Banquet facilities, if planned and sold effectively, drive the maximum to the bottom line. A healthy and well managed banquet operation must contribute minimum 50% of the F&B revenue, but this again depends on the banquet space available in any hotel.”
Social banqueting today has acquired a new meaning. It could be as varied as a birthday party, pre-wedding or engagement party, or a sit-down dinner for a celebrity event. And hotels are getting their share. Kumar Shobhan, executive assistant manager, F&B, Park Hyatt Chennai, says, “We have had VIP birthday parties, a Venetian masquerade, Indian themed cooking events for a Japanese group of ladies, to hosting an exclusive sit-down dinner for the visiting troupe of the world-class musician Yanni with the music industry’s luminaries from south India, and a pre-wedding event where the focus was the premium molecular gastronomy showcased by our team of chefs.”
If the nature of the events held in a banquet is changing, so are the demands. Sanjeev Shekhar, general manager, Marine Plaza, Mumbai admits, “Banqueting guests are very discerning today and they like their food and ambience to be perfect, and the menu to be tweaked to their tastes. It is thus very important to be innovative in banqueting to give each guest a new experience, be it in presentation, food or ambience. We have introduced an outdoor video wall, floating candles in the swimming pool and innovative decorations, as value-additions.”
Soni of Cidade de Goa adds, “Interactive counters are being preferred over long buffet spreads. International cuisine is gaining prominence. Banqueting is also going with specific cuisine-led themes. Guests are opting for local cuisine and food products which also help hotels to showcase local culture.”
Hotels, in fact, welcome these demands. Sodhi of Sahara Star says, “I am glad to see this rapid progress, as it has further created more revenue generation avenues for hotels. From internal events teams, international artists, global shows, Broadway classics, complete planning and execution of destination and in-house weddings, theme bars and artistic bartenders, hotels now offer increased services and products to their banquet guests, thereby increasing both the top line and bottom lines for the company.”
New hotels across the country have come up with large spaces in the last few years and are being lapped up by corporates and social guests alike. Hotels like Sahara Star in Mumbai, JW Marriott at the Delhi Aerocity and Park Hyatt in Chennai are doing exceptional banquet business.
Sahara Sapphire, Mumbai’s largest pillar-less multi-purpose event hall, boasts of its largest hall in the city with a floor plate of 55,000 sq ft and an impressive ceiling height of 25ft. Ideal for corporate gala parties and cocktail receptions, its architectural features demonstrate a fine blend of Indian sensibilities and contemporary design. With a central hall of 28,000 sq ft and two Annexe halls of 6,000 sq ft each and a pre-function area of 3,000 sq ft, it has a capacity to accommodate upto 2,500 guests.
Conventional banquets are not all that is sought after. Avante garde banqueting areas are also preferred by guests. Park Hyatt Chennai for instance, does not even have a ballroom. The Apartment is a unique residential-style venue that offers 952 square metres, or 10,268 sq ft of flexible meeting and banquet space featuring colonial meeting rooms with natural daylight, sophisticated function facilities giving the space a unique degree of flexibility and two open kitchens providing a highly personalised experience.
Innovation and change are the most important factors in the hospitality industry and banquets are no exception. Sodhi agrees, saying, “One has to keep up with the recent innovations, food concepts, service patterns, specialty buffets, grand displays and all aspects which can create that WOW factor. Guests are always willing to experience a creative concept, if it is communicated and presented in a perfect manner. Sahara Star offers molecular gastronomy, specialised silicon food displays, personalised menus, table-side service by culinary experts, personalised theme cakes, etc.”
Shobhan of Park Hyatt Chennai concurs. “New and emerging trends in banqueting have seen guests wanting curated events with special menus, very fresh and quality produce and the personal involvement of chefs,” he says.
Social banqueting may have gathered momentum, but MICE remains an important area for banqueting too. Soni reveals, “MICE banquets are a fast growing sector in India and consists of large scale catering to the domestic and international business circuits.” Sodhi adds, “MICE basically targets the corporate part of our banqueting business. These events are generally linked with a large number of residential guests, whereby the hotel can maximise its revenue across all verticals.”
Even MICE events are seeking innovation and novelty, and hotels need to comply with these demands. Shobhan says, “For MICE banqueting, each of the events today needs a degree of novelty with themed meals, new locations within the hotel so the group experiences the hotel at its best during their stay there. We had a group recently where the entire hotel was galvanised to create an experience on the lines of Mardi Gras. The brunch had a champagne chandelier, followed with a cook-off and the main event at the poolside showcasing aquatic performances by international artists. Park Hyatt Chennai’s team supported with themed meals and special offerings which made the MICE event one of the best the hotel has showcased ever.”
Technology also helps in making these events successful. “Hotels make elaborate hi tech arrangements to facilitate conferences and meetings. Upgraded acoustics, the key requirement for any event or meeting, proper audio visual facilities along with technical support and WIFI facilities are installed for holding successful events,” says Soni.
Timing each function is important because crew members star setting up equipment for an event even as the room is still in the process of being dismantled from an earlier event by a previous crew. And these things are what hotels astutely manage. Operations and logistics are important areas to be manned if a hotel wants to host a successful banqueting event.
With room rates still at a low as compared to earlier times, banqueting has presented a new revenue option for hotels, one they cannot afford to miss and are taking very seriously.
