It was a routine flight from Bangkok to Hong Kong in early 1974. The 24-year-old business passenger was having a gin and tonic served from miniature airline-size bottles when he experienced a revelation. “Eureka! I’ve got it!” he whispered to himself. Robert Arnold was the food and beverage manager of the 840-room Hilton Hong Kong.
After the flight, he approached his doubtful boss and suggested selling similar bottles in the guest-room refrigerators, used then mainly for bottles of water. The boss didn’t want to stop his proactive manager and agreed to a trial period on one floor.
“We used these alcoholic bottles and numerous other bite-sized products that guests favored, in the hotel bar. Within a month, the experiment covered the entire hotel, as sales increased tremendously. When I filled out the report for the Hilton headquarters I called the refrigerators ‘minibars’ without paying much notice,” says 74-year-old Arnold, enjoying his retirement in a suburb of Basel, Switzerland.
“Within a year, most of the company hotels offered minibars in their guestrooms and the rest of the hospitality industry copied rather quickly,” he recalls enthusiastically.
This is how it all started, bringing glorious days for hoteliers since the 1970s: Guests in their pajamas feeling at home in their room with drinks, snacks, alcohol, and their favorite television shows.
Over time, however, keeping tabs on hotel guest’s minibar consumption became a challenge. Numerous employees were required to check the inventory daily, peering into the confusion of bottles and snacks; looking for something that is no longer there – needing to be replaced and charged to the guest’s account. With a large margin for error in this process, guests would dispute the charges and argue loudly upon checkout.
Cunning guests have managed to beat the system by replacing the alcohol with tea. Others use the minibar to store things they want kept cold. Mothers of babies use the minibars to store milk, and others shelve food leftovers, infuriating hoteliers and causing fines to be incurred.
Technology suggested a debatable solution as sensors were installed inside minibars. Simply moving a product from its location in the fridge led to a charge on the bill, even when the guest had not consumed the product. Together with customer aggravation and the rising cost of purchasing and operating sophisticated minibars, the drop in revenue generated by supporting the large workforce needed to maintain it was frustrating.
Yet the problems didn’t vanish. Eventually, it became evident that the minibar’s heyday is past. Numerous global brands began by removing stocked minibars from some convention hotels. While the rather expensive minibar is definitely still in use, new young brands emphasize a communal atmosphere with their items in the refrigerators. Wolt delivery services and similar providers made it easier to order food and drinks to the door, even if room service is available. In Israel, due to security precautions, guests are called to meet a food courier outside the hotel and pick up the delivery.
COVID-19 pandemic
Regardless, a combination of the COVID-19 pandemic, creative thinking, and advanced technology may lead to a renaissance for minibars.
“As the pandemic emerged into our lives it was believed hotel guests may be infected by touching non-sterilized surfaces. Minibar products were among those suspected objects,’’ says Gideon Golan, CEO of Wigidex, an Israeli company that specializes in creative mini-bar solutions.
“Hoteliers that already treated the minibar as a necessary evil found the golden hour to eliminate this non-profitable product. However, nowadays luxury hotel marketing platforms and brands still offer minibars in their hotel guest rooms.
“As our research indicated, it all has to do with visibility. We introduced a creative solution. Once products are displayed on a tray above the small refrigerator, seen by guests, the consumption climbs,’’ he says. Golan and his team invented an external tray based on Radio Frequency Identification technology. Beverages and snacks are marked with a small label traced by sensors installed inside the tray. Once a product is consumed a signal is sent to a remote monitoring system for charging, enabling the hotel to cut the biggest cost of mini bars handling – labor.
A significant number of hotels today equip the minibars with just complimentary cold soft drinks. They promote external trays of snacks etc., as their main product. Guests are aware of the costs displayed on the tray as well as inside the refrigerators.
“Consumption growth is significant. The hotels enjoy complimentary trays supplied to all guest rooms and the profit for all sides is based on a utilization formula,” he says. Golan works with leading Israeli hotels, both local and global brands. He believes that the technology-based trays is the future solution for the global hospitality industry.
Innovative and creative approaches appeal to a new generation of travelers. Unconventional boutique hotels have their own unique thinking. The Norman, a 50 rooms Tel Aviv upscale hotel was Wigidex first client, with their sophisticated invention. It proved to be a success. “We wanted to present unique Israeli products and we chose the Arava Neot Semadar kibbutz as a supplier,” says general manager Yaron Liberman.
“Their organic products that include juices and nectars do not contain any food additives or preservatives; and together with nutritious and healthy energy bars coexist with the philosophy of the hotel – to offer unique boutique-style minibar items, both on the tray and inside the refrigerator.” Original thinking with a surprising technology. A promising future might be expected after all.
From his garden house in Switzerland, Arnold sounds frustrated while his minibar invention marks a golden jubilee. The Hilton Hong Kong, where it all started, does not exist anymore. “Hoteliers just became too greedy over the years. The minibar is a product intended to please the guest during his stay, but today hotels are focused on selling products they want guests to buy, not what they really need,” he says.
“If hotel executives can understand that, then the refrigerated minibar will be revived again. Imagine checking in and the receptionist asks you what would you like us to put in your room minibar? Luxury managers who are entrepreneurs will spot such an opportunity. Those to adopt this strategy and provide their guests with the required products will be winners. There is no replacement for the good old personal service,” he says.
The writer is the Travel Flash Tips publisher.