Newsletter 14: Free Has a Big Cost - The Math of the Bottled Water Experience
- Jonathan Roumain
- Oct 18, 2021
- 3 min read
Updated: Oct 19, 2021
We know that 80% of plastic bottles end up in the landfill. It takes up to 1000 years to decompose single-use plastic.
What we may not yet know is how to overcome the hotel guest’s expectation for free bottles of water.
As hoteliers, this added touchpoint at the bedside or when guests arrive or check out at the valet has become part of the norm. How do you replace this vital guest amenity and experience without raising an eyebrow of disappointment?
Guests don’t want to feel “nickel and dimed”, regardless of the price they paid for the room.
The answer begins by creating a connection with the guest through the shared values of making the world a better place. Similar to the success in reducing fresh towel use by 35-75% from connecting environmental impact to hotel towel reuse and washing.
The silver lining of the pandemic is that the world has woken up to the urgency of sustainability. Consumers are 70% more aware of the threat of global warming. Single-use plastic is on the hot seat as the low-lying fruit of doing better as a human race.
Here’s the math. Beyond the humanitarian reasons, there’s a financial benefit too. A reusable container such as stainless steel saves $6,180 US for every five years of use, per bottle.
‘Free’ actually has a big cost.
So, how do you get a consumer to pay $3 to save $6,180 when they are used to getting it for free?
You introduce it as an experience and mission worth investing in.
The story of Proud Source is one of infinite recyclability and humanitarianism. Their mission is to empower others with a product they can feel good about purchasing. Not only is there a lifetime of recyclability, with every bottle purchased, their goal is also to eliminate 200 million bottles from the landfill.
Going one step further, they will match drop for drop, fresh drinking water for communities around the world, and people in need.
Research done by the association Engage for Good found that customers who gave back expressed higher guest satisfaction scores and more wiliness to return. Charging for bottled water instead of giving away something that will harm the environment takes the long-term view of guest satisfaction.
People want to feel part of the solution and align themselves with organizations that help them do just that.
Grab and Go Comes in Every Size and Location Since the pandemic, we've seen a significant shift in the traditional Grab and Go location and format. What was once limited to a dedicated retail space has become transformed to include everything from In-Room snacking to pop-up lobby shops. The introduction of QR Codes has expanded the incremental revenue opportunity, without increasing your labour costs. An expanded Grab and Go you to store products in non-retail locations. Snacks can be ordered from anywhere in the hotel and delivered to the guest, or picked up at the front desk. Think Instacart meets Skip the Dishes. Guests have grown to love the convenience of this kind of highly personalized service.
If you're interested in learning more about the retail strategy behind Grab and Go and our Pop Up Lobby Shops please download our FREE white paper HERE!
If you would like to book a call reply to this email with: Book a Call in the subject line.
I look forward to working with you!
About Cameron Ree
Cameron Ree has been serving the hotel industry for over 20 years. It all began with a passion for helping hoteliers thrive, and a love of chocolate! Now proudly representing ten leading gourmet brands with a shared vision for quality, sustainability, and making a difference including Torn Ranch, Made Good, Pacific Bottle Works, Loop Mission, Urge Chocolates, Cesium Telecom, We Roast Nuts, and Covered Bridge Chips. Great by Choice: Every supplier we work with goes through a rigorous review by our team to ensure the highest quality products, created with a better for you, AND our better for our planet mindset. Work with us on our shared mission of making the world a better place for your grandchildren and ours, Henry and James, 3 and 1.
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