HoReCa (short for hotel, restaurant, cafe) is a market segment that unites the hospitality industry. In other ways, it is considered as a kind of distribution channel and as specific promotions.
HoReCa as a segment of the services market
The term HoReCa is often used by participants and operators of the hospitality and public catering market - restaurateurs, suppliers, manufacturers, hoteliers. Close in meaning to the term is the abbreviation KaBaRe (cafe-bars-restaurants).
The largest market segments are the hotel and restaurant market. The state of the hotel segment largely depends on the development of tourism services in the country. This market is extremely heterogeneous and can be subdivided, for example, into five-star, three-star and other categories of hotels. The division is based on the class of service.
On the Russian restaurant market, one can distinguish premium restaurants, fast food restaurants, as well as bars, coffee houses and cafes. The offered assortment acts as a criterion for classification. The state of the market largely depends on the well-being of citizens, as well as the mentality of the country's inhabitants and their habit of eating out.
HoReCa as a distribution channel
Another aspect of the use of the term HoReCa is related to sales. In this context, it denotes a special distribution channel. It is often called on-trade. It differs from the retail sales channel (off-trade) in that the purchased product is consumed directly at the point of sale.
Initially, HoReCa was called special sales departments of alcoholic companies, focused on sales directly to hotels and restaurants. As a rule, they were focused on the sale of exclusive and expensive drinks. Today, HoReCa's targeted marketing covers not only alcohol and cigarettes, but also exclusive premium products for restaurants, specialized equipment for catering, as well as various gadgets for the hotel and restaurant business. Recently, trade channels of the HoReCa category have been gaining an increasing share. This is due to the active development of the restaurant and hotel business in Russia.
The special attention of manufacturers to the HoReCa sales channel is due to the fact that it is an unparalleled platform for the formation of consumer loyalty to brands.
HoReCa promotions
The term HoReCa is often used to refer to a specific type of promotion. Their peculiarity lies in the fact that they are held directly in places of recreation of people (for example, cafes, clubs). Usually, promoters select good-looking, sociable people who easily find contact with other people.
The advantages of HoReCa promotions are related to the fact that customers in cafes and restaurants are more relaxed and inclined to communicate, and also provides the company with a low cost to reach the target, better-off audience. It is difficult to achieve a similar effect from promotions for HoReCa through traditional advertising tools (outdoor advertising or the media).
In the industry, the name HoReCa also means a set of POS materials. These are, for example, napkin holders, ashtrays, etc.