Are Hotel Vending Machines Profitable

Do Hotels Have Vending Machines? Items & Prices

Vending machines aren’t as ubiquitous in the US as they are in Japan, but their operators still rake in over $7 billion in sales every year. 

Currently, there are around 5 million operational vending machines, most of which are stationed in manufacturing facilities, distribution centers, and industrial parks.

But what about hotels? Do hotels have vending machines? 

Yes, most Hotels have vending machines and they usually appear in both tech-driven and luxury hotels to meet the contactless service needs of their guests. Some have even installed grand-and-go vending machines for food purchases to limit in-person interactions further. 

RELATED READ: Did It Hurt When You Fell From the Vending Machine?

Do Hotels Have Vending Machines? 

Vending machines appear in almost every corner of the country, including hotels. Not every hotel has them, but most do—even more so now, with the emergence of the pandemic and the rising demand for contactless services.

In mid-2021, Marriott International, Inc. announced the addition of grand-and-go vending machines in several of their hotels to meet the changing needs of their guests. 

Marriott’s vending machines are part of the hotel’s “Commitment to Clean” promise, as they limit in-person interaction and allow guests to quite literally grab the items they want and go. Some even offer contact-free Bluetooth payment, so guests won’t have to press the machine’s buttons when selecting and paying for an item. 

Following Marriott’s announcement, other luxury hotels—Hilton, The Plaza, Ritz Carlton, etc.—have also added similar modern vending machines in their establishments. Their vending machines offer snacks, coffee, soda, cigarettes, and even hot food. 

With that said, vending machines aren’t particularly common in hotels—mainly because they’re usually within walking distance of a decent restaurant and convenience store. Also, some hotel owners don’t fancy spending an extra $2,000 for a vending machine and paying for operational costs if they have already had a kiosk nearby or a front desk clerk selling the same item. 

Are Hotel Vending Machines Profitable? 

It depends on the hotel. If you’re a big-name hotel that clocks in dozens of guests a day, like The Ritz, Hilton, or Claridge’s, vending machines can be a profitable business. For every 10 or so customers that check in, at least one of them will use the vending machine during their stay. 

But if you don’t get many guests, vending machines are nothing more than an added feature. They won’t add much profit to your business, especially if you consider the time and effort needed when stocking the machine, paying for repairs/replacements, and acquiring the machine to begin with. 

You’ll also have to keep the machine running 24/7, which can add to the hotel’s total electric bill. 

Thousands of vending machines have been put out of commission by hotel owners due to the aforementioned reasons. After all, most hotels have a person on-call that sells the very same items found in a vending machine. Plus, they have a wider range of options for customers to pick from, instead of the limited selection found in a vending machine. 

This isn’t to say that a hotel won’t make a bit of profit from a vending machine, but it’ll take a long time to cover the costs of the machine, repair, and stock. Even then, the vending machine won’t generate a lot of cash on a monthly basis—especially if it has a lot of slow days. 

How to Make Money With a Hotel Vending Machine?

Even if vending machines aren’t that popular in hotels, you can still make a decent amount of cash with the right technique. 

When you think of vending machines, the first things that come to mind are snacks, soda, and juice packs. However, today’s vending machines are much more than that—just look at Japan’s vending machines!

They sell toys, hot food, soup, books, and even discounted transportation tickets. Some even sell sake or beer. 

There’s no limit as to what you can sell in a vending machine, so let your creative genius loose! Sell some of the more “unconventional” vending machine items that make hotel guests stop and consider. 

Ideas include: 

  • Ice cream
  • Pizza (cooked)
  • T-shirts
  • Instant cup noodles (with hot water) 
  • Mini cakes
  • Toys 
  • Books/magazines/comics/manga
  • Fresh milk/cheese/eggs
  • Hygiene or health products (napkins, tampons, toothbrushes, condoms, etc.)

If your vending machine can’t handle anything other than snacks or soda, you can instead charge brand listing fees from Direct-to-Consumer (D2C) companies or local product brands when selling their items in your vending machine. 

You can also provide some space in your vending machine for brands that want to showcase their banners, flyers, posters, etc. 

Additionally, make sure your vending machine accepts CC/debit cards instead of just cash since people rarely carry cash anymore. This way, your customers can pay however much you charge without worrying about change. 

Just make sure your vending machine is MDB-enabled with six pin-plugs. If your vending machine has nine or more pins and is thus non-MDB enabled, it can easily be replaced with an MDB-compatible control board. 

Safe Use for Vending Machine

Finally, encourage your guests to use your vending machines. Tell your customers it’s safer, faster, and more convenient.

Also, tell them that vending machines significantly reduce the risk of germs (and the transfer of the COVID-19 virus) more than that a regular kiosk with a paid worker. With this, your vending machine will receive a lot more visits and purchases. 

On an unrelated note, if you have several vending machines to spare, consider renting them out to other hotel owners so you don’t have to worry about restocking the machine. You’ll only have to collect the monthly rent. 

Conclusion

Hotels don’t usually have vending machines, but more and more establishments have reverted back to these trusty machines due to the demand for contactless services. 

Today, vending machines can be found in some of the more big-name hotels such as Marriott, Hilton, and Claridge’s to limit in-person interaction during the pandemic. 

It’s likely that vending machines will make a massive comeback in the future, so they’re worth looking into if you’re planning to launch a passive-income business.

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