Allure Of Private Dining Will Remain After the Pandemic

During the height of Covid-19, private dining was an alternative to sharing a restaurant meal with loved ones. But even as the pandemic dwindles and eateries welcome guests again, intimate, five-star hospitality remains in high demand.

“People are eager to reconnect with family and friends, and there’s no better way to do that around the table than with great food and wine,” says James Henderson, CEO of Exclusive Resorts, an elite vacation club based in Denver, Colo., with locations across the globe.

While private dining has long been associated with celebrations such as birthdays and anniversaries, guests are gravitating toward intimate environments for everyday occasions as well. “Casual private dining experiences are starting to play a larger role in the hospitality industry, and I think these experiences will only continue to grow in popularity moving forward,” Henderson adds.

No matter the circumstances, the allure of private dining lies in the intimacy, exclusivity, and extraordinary experience that accompanies it, according to Brian Mommsen, founder and CEO of Resident, a New York-based company hosting bespoke dinners in unique venues. Launched in 2018, Resident collaborates with Michelin-trained chefs from Gramercy Tavern, Eleven Madison Park, Per Se, and other top-tier New York restaurants to curate upscale events for small groups.

Since March, the startup has collaborated with Exclusive Resorts to offer its members multi-course food and beverage tastings in the vacation club’s Residences at Park Avenue Place in Midtown Manhattan. A member can host a table for up to eight guests for US$2,000. Resident’s chef-driven menus include dishes such as roasted corn, prosciutto, miso, and grits; carrot mousse tartlet; and Long Island crescent duck with lentils and cabbage.

While the chef presents and tells in-depth stories about each dish tableside, an expert sommelier describes the wine and dining guests participate in the conversation.

“We have found that guests thrive on the opportunity to personally interact with our talent, learning about their inspiration for each course firsthand, and getting to know the face behind the food, which is an impossibility at most restaurants,” Mommsen says.

Resident, a New York-based company hosting bespoke dinners in unique venues, collaborates with Michelin-trained chefs...

David Pan and his wife, Tillie, of Orange Beach Concierge, based on the Gulf Coast of Alabama, have hosted intimate dinners for years. But due to the pandemic, the duo has restructured their well-received Chef’s Table to bring the concept to their guests, rather than have their guests coming to them.

Pan believes the attention put into each menu, the locally sourced ingredients and thoughtfully paired wines, along with dining in the comfort of one’s own home, all contribute to the appeal.

With an uptick in business over the past year, his team hosted more than 100 private dinners in 2020 and they’re on track to triple that number this year.

“We predict a heavy increase in 2021 and beyond, and from what our booking calendar looks like today, we are posed to beat 2019 bookings which was our most successful year in the history of our business,” Pan says. His menus include jumbo lump crab cake, goat fromage salad, and sous vide filet mignon with sable rice. Experiences range from US$175 to US$250 per person.

Lawrence Fairchild, proprietor of Stones Wine, Perrarus, and Fairchild Napa Valley, is set to debut House of Perrarus: A Stones Wine and Michelin three-star experience at his picturesque California estate. Deemed the “Hermés of wine” due to the exclusivity of his bottles, Fairchild offers his 95 to 100 point wines to members only, but will make them available to the public at his afternoon soirées, beginning in June.

The winemaker and the acclaimed Single Thread Farm—a farm, inn, and three Michelin-starred restaurant in Sonoma County—will curate five seasonal small plates paired with his wine collection: one Chardonnay, three Cabernet Sauvignons, and a Cabernet Sauvignon and Cab Franc blend.

“This idea stemmed from our clients’ desires for a more private and tasting dining experience,” Fairchild says. During the mid-day fête, guests can sit indoors or outdoors, depending on their preference. Cost is US$500 per person with capacity up to 10 guests.

In October, Chef de Cuisine Michael Vitangeli premiered The Chef’s Table at Scarpetta in The Cosmopolitan of Las Vegas. Rooted in Italian tradition, the six-course interactive dinner is personal for Vitangeli. “My grandmother Emelia Vitangeli played the largest role in shaping my culinary career, so it only made sense that she influence the Chef’s Table experience itself,” he says.

Last summer, Chef Yann Nury outfitted a 1971 Airstream Safari and hit the road, cooking...

Vitangeli’s menu features homemade burrata, hand-pulled pasta, porchetta (pork belly), among other classics, plated alongside wine pairings presented by sommelier Kyle Asato. Staged in a dedicated dining room, the six-seat table overlooks the famous fountain show and Scarpetta’s kitchen, providing guests “a show from kitchen to table.” Vintangeli shares details and history on the dishes and wine to create a familial atmosphere. The cost is US$200 per guest.

The private fine dining trend has become more of a moveable feast, too. Last summer, Chef Yann Nury outfitted a 1971 Airstream Safari and hit the road, cooking up warm weather-inspired fare for small groups. His customized dinner parties start at US$15,000 for 12 people.

Although he and his team had always catered on the road, both domestically and abroad, they had never prepared gourmet dishes in a food truck. However, the chef considers the mobile kitchen to be a condensed version of what he had done before: focus on local delicacies and ingredients.

“It is in our DNA to bring our food and culinary experiences all around the world, but when Covid came, all this stopped suddenly,” Nury says. “I had to find a solution to stay afloat, but also to stay relevant.”

The French chef outfitted the Airstream with 19^th-century oak floors, Charlotte Perriand lighting, Gaggenau appliances, a wine cellar, French copper pots, vintage Michelin guides, and fancy tableware before heading up and down the East Coast. In 2021 and beyond, Nury plans to spend summer in the East, fall out West, and winter in Florida, but he remains open to any destination.

“I believe it is the future of fine dining, a world that no one has paid enough attention to,” he says about the private dining trend. “It is, in reality, the ultimate luxury of culinary experiences.”

AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.

Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.

Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.

Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.

But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.

Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.

Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.

The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.

How the companies have responded to the possible agentic future is telling.

Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.

Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.

Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.

This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.

Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.

The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.

That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.

To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.

Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.

That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.

Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.

Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.

History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.

Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.

Allure Of Private Dining Will Remain After the Pandemic

The 5-star soiree is here to stay.

AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.