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December 6, 2006
Contents
Cornell Quarterly Article Says: Promote Wines, Not Prices
PROMOTING WINE SALES MAY BE AS SIMPLE AS A TABLE TENT
Promotion Must Be Paired with Careful Pricing
Although ordering wine with dinner has increased in popularity in recent years, many restaurant guests often are hesitant to order wine because they’re not sure of which wine to select. One of the best ways to help restaurant guests make their selections and, incidentally, boost sales is to feature a limited number of wines on a table tent. The study is published in the November 2006 issue of Cornell Hotel and Restaurant Administration Quarterly. The Quarterly is available by subscription from Sage Publishing, but this featured article is available at no charge from Cornell’s Center for Hospitality Research at http://www.hotelschool.cornell.edu/research/chr/pubs/quarterly/featured/.
In the article “Wine Promotions in Restaurants,” Cornell professor Brian Wansink, and author of the book, Mindless Eating: Why We Eat More Than We Think, tested three types of promotions to encourage wine and his research team used table tents to study how customers would respond to the three different types of wine promotion. In the first promotion some table tents simply stated that the restaurant was featuring one wine, while others promoted three or five wines. The second test used table tents that suggested one, three, or five pairings of wine with specific menu items. The final promotion offered two-ounce tasting portions at $2 each. In that test, some table tents promoted a tasting of just one wine, while others promoted a flight of three or five wines.
All of the promotions increased sales of the featured wines, except for the table tent that listed five pairings of wine and food (which may have simply been too much information). The promotion that most increased sales of the featured wines was to offer wine tastings.
Wansink cautions that most of the sales for the featured wines came from guests who probably would have ordered one of the non-featured wines. For this reason he cautions against the temptation to use price to promote wine sales. “It is critical to note that although the featured wines were promoted through the use of menu pairing and taste samples, they were not price promoted,” wrote Wansink. “This suggests that care be taken to not promote low-margin wines that could cannibalize the sales of higher-margin wines.”
Center Partners with Marriott International, Inc.
Cornell University and Marriott International, Inc. are pleased to announce that Marriott has become a partner with the Cornell Center for Hospitality Research. As a partner, Marriott will participate in the Center’s Advisory Board, Industry Roundtables, and other activities in support of the Center’s industry-focused research agenda. As part of the partnership, Joel Eisemann, executive vice president, Owner and Franchise Services, Marriott International will be joining the Center’s advisory board. The partnership continues Marriott’s long-standing support of Cornell, which includes providing the naming gift to open the J. Willard Marriott Executive Education Center at the School of Hotel Administration.
“Becoming a partner with the Cornell Center for Hospitality Research is a logical extension of Marriott’s overall commitment to supporting research and education for the hospitality industry,” said Joel Eisemann. “Our company is pleased to be part of this initiative, which combines the best of industry and academe.”
Cathy Enz, associate dean for industry research and affairs, explained the importance of Marriott International’s partnership with the Center. “Marriott has long been a supporter of the School of Hotel Administration, and a major consumer of our center research reports” she said. “We look forward to having them join our growing number of corporate sponsors.”
The Cornell Center for Hospitality Research makes its extensive series of industry-focused research reports available at no charge to industry practitioners, faculty members, and students. Through the support of partners such as Marriott, the distribution of these research findings is intended to reach as many Internet users as possible.
To learn more about the Center's corporate partners program, please visit http://www.hotelschool.cornell.edu/research/chr/relations/affiliate/ or contact Jennifer Macera, at 607-255-3101 or js372@cornell.edu
Center to Host Third Annual Marketing Roundtable
The third annual Marketing Roundtable, sponsored by the Center for Hospitality Research, will be held May 9 - 10, 2007 at the Statler Hotel, Cornell School of Hotel Administration. The Roundtable, chaired by Assistant Professor Lisa Klein Pearo, will be attended by over 20 senior level marketing executives from various sectors of the hospitality industry. Please contact Joe Strodel, Jr., at 607-255-4646, if you are interested in sponsoring this event
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2006 Marketing Roundtable Attendees
Research Fellows and Staff at Industry Events
Cornell's Center for Hospitality Research will also participate in The Americas Lodging Investment Summit (ALIS) on January 22-24, 2007, at the Hyatt Regency Century Plaza in Los Angeles, California. ALIS is “the” annual meeting place for hotel executives, investors, lenders, developers and the professional advisory community in the hotel and tourism industry. It is an event that brings together leading experts and investors to discuss important trends and to identify new opportunities. For more information, please visit: http://www.alisconference.com/.
TheCenter is also a co-sponsor of the Cornell Reception at ALIS to be held on Tuesday, January 23, 2007 from 7:00 - 9:00 p.m. at The Peninsula Beverly Hills Hotel. To join learn more about this reception, or to participate as a corporate sponsor, please contact Joe Strodel, Jr. at 607-255-4646 or js343@cornell.edu

HR in Hospitality Conference & Expo, March 4 – 7, 2007 at the Wynn Resort in Las Vegas. Keynote addresses from industry leaders to include Steven Heyer, CEO, Starwood Hotels and Resorts, and Arte Nathan ’72, SVP, Chief HR Officer, Wynn Resorts, Ltd. Panel discussions, seminars and sessions by distinguished Cornell faculty and top industry executives on topics that include Attracting and Retaining the Industry’s Future Leaders, Weaving Diversity Into Your Corporate Culture, Comparing and Contrasting Wage Surveys, and much more! For full event details, visit www.hrinhospitality.com or call 1-800-727-1227.
Produced by Human Resource Executive® Conferences in collaboration with Cornell’s School of Hotel Administration and ILR School, this will be the premier event for human resource management, employment law and labor relations in the hospitality industry.
Cornell Center for Hospitality Research newsletter subscribers receive a $450 discount using promotional code HHCORNELL.
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