Groups and events can generate significant revenue for hotels. Depending on the type of business, this segment represents between 30 and 35% of the global hotel business. Events typically generate higher revenue because they involve additional expenses such as food and beverages, venue rentals, audiovisual equipment, etc. Groups are a high-priority segment for most properties, not only because of the revenue they generate, but also because of their repeat/repurchase potential.
Working with different group and event segments also helps balance apartment inventory and rates during slow periods.
Historically, this segment also makes reservations with longer booking windows, which helps hotels reach expected occupancy well in advance and maintain a healthy business flow throughout the year.
Therefore, it is essential to adapt our communication strategies to the changing landscape and technological advances. When we think about the relationship between event organizers and agencies, communication takes on an even more important role. After all, to successfully unite people through unique events and experiences, hospitality professionals must act in a unified, consistent, and transparent manner.
Here are some ways to maximize relationships with your key event partners:
- Be honest from the beginning.
Be honest about how long offers will be valid and how long the space will be held. Review deadlines for final reservations, with the option to reduce blocks months in advance, to avoid attrition. - Conduct post-contract follow-ups with the client
It's important to understand the client's confidence in holding the event and the likelihood of cancellation. A quick call or WhatsApp message followed by an email is best. Be aware of any changes that may be occurring within the group so the hotel can prepare and generate revenue accordingly. - Ensure constant flexibility on both sides.
Prices vary based on availability and are applied differently than usual for individual bookings. Make this very clear in the quote and emphasize that there is flexibility, but that the date requirement may affect the price, and vice versa. - Getting ahead
Reach out to loyal guests and see if they'd like to send you their event calendar for next year. Some benefits may come from targeting and prioritizing these activities with your hotel. - Clean the sales funnel constantly.
Keep your portfolio as up-to-date as possible to ensure you optimize potential business and secure spaces with the best possible financial performance.
In general, maintain consistency in customer communications. From the moment a potential customer initiates contact, maintaining a consistent level of service, elevating it, and attention to detail throughout the customer journey is key.
Innovative suggestions, such as real-time presentation of meeting spaces and integrating potential speakers into proposals, can further enhance the customer experience.
Don't forget, effective event and group sales and operations management can substantially increase your revenue, expand your customer base, and generate new business.