To understand and reevaluate traveler's desires, IHG Hotels & Resorts’ voco hotels conducted a recent global survey to uncover what consumers returning to travel really want from their hotel experience.
The survey found that nine in 10 respondents rank great service as most important to them when staying at a hotel. But the new study also showed that travelers crave unexpected service offerings – and this is where tea comes in.
According to the study, 29 percent of travelers would like in-room afternoon tea – or something similar – delivered directly to their room.
This interesting factoid makes one wonder about the state of tea at hotels, and where the tea industry can improve in working with hotels – if that’s at all possible.
Room to Improve?
Amy Dubin, owner of Janam Tea, as well as a speaker of the upcoming World Tea Conference + Expo, said, “While I can't speak for every hotel, based on my own on-site research, the state of tea in a hotel setting could be significantly improved through a viable system of creating and then servicing the demand. But there are many challenges and a few that may be categorically insurmountable.”
Dubin shared that the one of the challenges is that tea shows up in a few different arenas at hotels – in-room service, in the dining room (which includes afternoon tea in some cases), in meeting rooms, in the ballroom, and in hotel restaurant service (which also includes to-go cups).
“In my deep-dive of four-star and five-star hotels in Portland, Ore. a few years ago, I learned most ‘upgrades’ were to Keurig machines and only one hotel in the whole city did not offer in-room tea or coffee – both were available from room service only,” explained Dubin. “Though, in that case, the tea option wasn't any different than the standard tea bag options available elsewhere. There were a few serving tea from a local tea company, but still in bag form.”
Dubin said she had not encountered loose-leaf tea anywhere in the hospitality sector at that time. “Perhaps it's changed since then, but in my domestic travel all over the United States, there has been little variation,” she said. “Not to say some aren’t totally fabulous, there are fabulous opportunities to be had, but overarchingly this is not the case.”
Dubin said there are a variety of factors and considerations at play, when it comes to quality tea at hotels:
- Tea bags are easy to build data on (cost/unit, etc.) for operators.
- Tea service equipment is limited.
- Staff typically isn’t trained on how to store, prepare and serve loose-leaf teas.
- There isn't enough perceived demand for better quality tea, even though people won't demand what they're not exposed to.
- There isn't a strong enough value proposition for changing from the teas that hotels are already using, as it requires an investment to do so and possible severing of an established business relationship.
- There aren’t enough people trained in tea at hotels, to perform the kind of vigilant training, supply replenishment that’s needed, and to act as a resource for equipment.
- Tea at hotels – seen as a staple – doesn't inspire more time or resources to be spent on it than actually exists for those busy with other aspects of hospitality.
- Even in an afternoon tea context, the tea itself – in at least 75 percent of the cases – is a complete afterthought. Dubin noted that adoption of loose-leaf teas in this setting is around 40 percent (and educated guesstimate), again due to training on tea in general, brewing different types and equipment.
- Tea competes on every menu with other drinks besides coffee, notably soft drinks and alcohol.
Big Challenges for Tea Businesses to Tackle
According to Dubin, the above items are significant challenges for hotels, so tea doesn't seem to be high on the priority list for very many hotel systems – making it difficult for tea business that want to break-into this portion of the hospitality sector.
“There is massive opportunity for the persuasive supplier, but the endeavor isn't particularly profitable at first,” said Dubin. “There is a way – and only one way to shift this – but it would be only for a boutique hotel and the number of these types of hotels a supplier would need to have in their book of accounts, to make a real business out of it, far exceeds the resources of even the most determined tea entrepreneurs.”
Dubin said the time spent learning if certain hotels are beholden to certain distributors by contract, and what they're already paying for tea, in addition to assessing the viability and presenting carefully concocted options, will easily eat up any profit margins a tea business would have made selling the actual product – if one is lucky enough to do so. “They already have relationships built for tea procurement and most will likely take the ‘it's not broke, don't fix it’ approach,” she said.
Working with Hotels on Tea Programs - Advice
Dubin’s best advice for a tea company that wants to get it teas featured at a hotel? She said hotels may entertain the following options, under limited circumstances:
- Tea service in the hotel’s restaurant for afternoon tea or as a service add-on for large functions
- Tea in the hotel’s wellness/massage room
- A tea pop-up at the hotel, to showcase local products during a particular tradeshow or other “Shop Local” coordinated efforts
- As a co-branded product in partnership with the hotel, to promote the hotel to area realtors, for example, or to meeting planners
- As a sponsor for events taking place at the hotel (Dubin said this is challenging if you're not a preferred tea vendor, but not impossible)
- A lower-cost tea supplier; Dubin explained that if you're a supplier of tea bags and present a product that comes at less than what they're currently paying for/using, and it can be supplied in volume, the hotel might consider it (otherwise, why should the hotel switch from its current tea distributor?)
- Your tea business is the “total package” and can provide routine, credible hospitality training, are an authorized reseller of commercial-grade equipment or can source it, are able to always supply the required volume (possibly across multiple properties), and are able to maintain good relationships with senior stakeholders and are great at marketing and PR… then you might be considered
- B&B locations – perhaps your tea business can get into small bed-and-breakfast type hotel, because it's not a big deal for the B&B to offer your teas to guests
- Your close business or personal contact is a decision-maker in a hotel and just LOVES tea!
“Essentially, approaching hotels as an independent tea rep is extremely tough, and this is why hotel experiences with tea are largely sub-optimal,” revealed Dubin, who once came very close to getting her teas into one high-end hotel in NYC.
“The best tip I would give anyone desperate to break into hospitality service is to have a significant marketing budget and a following to get picked up by a distributor and be able to back up the sales with a combination of PPC, SEO/SEM, Instagram, Facebook engagement, trade show marketing, and to approach hotels already buying products from that distributor, so they don't need to open a new account with you just for tea,” concluded Dubin. “It's a long game, so I would advise not approaching such an endeavor without a five-year game plan per location, because even if you make a successful pitch, the adoption of your tea – especially if it's already supplied by someone else presumably under contract – will take a long time to realize. And then it takes a long time to build up the reputation.”
There’s Still Opportunity and Potential for Tea in Hotels
Babette Donaldson – a tea author and educator, as well as owner and publisher of T Ching and the founder of the International Tea Sippers Society – said she believes there are opportunities for specialty tea companies to grow in every area of food service and hospitality, including hotels.
“On the question of hotels, I first think of conversations with John Harney [founder of Harney & Sons Fine Teas, who passed away in 2014] and his stories of how his focus on hotels helped build his business,” said Donaldson. “Of course, the first tea he sold was to the Ritz-Carlton in Boston in 1978. This is a high bar, of course, and now there is considerable competition by major tea businesses for large hotels.”
Donaldson said that smaller tea retailers can serve smaller hotels and create the same kind of powerful relationship, like Harney started in the '70s. “We have, by no means, exhausted the potential for this niche market,” she said.
According to Donaldson, there are several opportunities for all levels of tea businesses to work with hotels. “Placing tea in guest rooms is a challenge for small businesses,” she said, “but there are other opportunities, and I like to look at it as a partnership. Consider tea as a marketing tool for hotels.”
Donaldson suggested that tea businesses focus on the following opportunities, if they're looking to work with hotels on tea programs:
- Events – powerful opportunities for hotels. “Afternoon tea can be a ticketed event for non-guests and an elegant perk for registered guests,” said Donaldson. “Events are social media content and locally newsworthy.”
- Creating signature blends with customized packaging and a few unique recipes can be huge for hotels.
- Events plus custom blends help integrate a tea program between guest services, food service and bar service.
Donaldson added: “In many countries, it is common to see small tea shops license retail space in hotels. This option is often overlooked by new specialty tea businesses. But, when considered through the lens of establishing a mutually beneficial partnership, I recommend it as a stepping-stone to opening an individually branded brick-and-mortar location.”
The Harneys Put Their Tea Stamp on Hotels
Like Donaldson, well-known tea industry sage James Norwood Pratt acknowledged that John Harney of Harney & Sons Fine Teas really helped the tea industry make an impact at hotels in the ‘70s and ‘80s. Pratt said that by 2000 or so, “Harney & Sons had acquired more U.S. hotel accounts than any other specialty tea company.”
“A former hotelier himself, John Harney had coached his daughter Elise to be his emissary to the food and beverage director of the Waldorf-Astoria in New York, knowing ‘a pretty girl can always get in to see these guys,’” said Pratt. “As her credibility statement, she was to show the favorable entry on Harney tea in my first Tea Lover's Treasury, and then ask him to taste Harney breakfast tea alongside the current Waldorf offering and see which he preferred. Having secured the Waldorf-Astoria account, John moved on to the Plaza and gradually acquired some 200 other five-star establishments."
Pratt said that besides the business from each hotel, the benefits to the Harneys were several, including: “…familiarizing the public and staff with the company name, reaching new customers through hotel guests and, of course, prestige by association. That said, hotel accounts require high maintenance. Food and beverage directors often change and John was constantly visiting hotels to retain their loyalty – a delicious task for such a gregarious tea promoter, but time consuming.”
Today, Michael Harney, master tea buyer and blender of Harney & Sons Fine Teas, pointed out that “Hotels are awakening from a two-year slumber [post COVID-19 pandemic], so they are rediscovering tea. However, it was a deep slumber.”
‘Hotels Expose Your Brand to a National or International Audience’
Bruce Richardson, master blender at Elmwood Inn Fine Teas, said they’ve been approached numerous times by hotels that are either about to open a new location or are upgrading their tea service for in-house dining. “Hotel chefs are keenly interested in sourcing specialty teas from local purveyors,” explained Richardson. “Their guests are well-traveled and accustomed to drinking teas that are a step above the traditional foodservice brands. We always customize a tea menu that includes a house blend that matches the hotel’s mission statement. For instance, we worked with one boutique hotel chain that features modern art throughout their locations. They allowed us to be very creative in using bright colors and aromas in their signature blends.”
Richardson said they typically invite hotel chefs to spend a few hours at the Elmwood Inn Fine Teas tasting bar, where they share their array of available teas available. “It is always an eye-opening experience for them,” he shared, “and it allows our staff to share steeping tips and recommendations for service equipment. We then follow up with a training session for all service staff at their venue.”
For Richardson and Elmwood Inn Fine Teas, ongoing hotel staff changes can be tough to navigate. “Hotels are notorious for frequent staff changes. You can devote hours to developing a relationship with a food and beverage director and then find out that they have moved on to another employer in six months,” said Richardson. “The upside is that hotels expose your brand to a national or international audience.”
Plan to Attend or Participate in the
World Tea Conference + Expo, March 21-23, 2022
To learn about other key developments, trends, issues, hot topics and products within the global tea community, plan to attend the World Tea Conference + Expo, March 21-23, 2022. The event will be celebrating its 20th anniversary, in addition to being co-located with Bar & Restaurant Expo. Visit WorldTeaExpo.com.
To book your sponsorship or exhibit space at the World Tea Conference + Expo, contact:
Veronica Gonnello
(for companies A to G)
e: [email protected]
p: 212-895-8244
Tim Schultz
(for companies H to Q)
e: [email protected]
p: (917) 258-8589
Fadi Alsayegh
(for companies R to Z)
e: [email protected]
p: 917-258-5174
Also, be sure to stay connected with the World Tea Conference + Expo on social media, for details and insights about the event. Follow us on Twitter, Facebook, Instagram and LinkedIn.