New York Hilton Midtown to eliminate room service

New York Hilton Midtown to eliminate room serviceA leading luxury hotel in New York, the New York Hilton Midtown has said that it is planning to eliminate room service this summer season as it tries to improve earnings in the difficult business conditions.

The hotel management is trying to open an on-site eatery that will offer gourmet take-out for its customers and save costs of room services. The hotel also said that it is not planning to eliminate the service at its other more than 4,000 hotels around the world. The hotel in New York has 2,000 rooms and was managed as a full-service hotel by the company.

Chief Executive Christopher Nassetta said that he now expects other hotels to follow soon and scrap room service to improve margins, Hilton Worldwide said. He said that fewer guests are using the service and it is not profitable for the company to sustain its operations. He was speaking at a hospitality conference hosted by New York University on Monday.

The unique move could define the common standards in the hotel industry, which is aiming to boost earnings and focus more on products that offer value. Hotels are increasing looking at alternatives to room service, which is expensive to sustain for most hotels and that affects earnings.