The sky's the limit these days for conventioneers, and hotels are happy to have large group business returning.
This year, hotel revenue managers will need to work extra hard to be able to adjust pricing accordingly, provide flexible meeting arrangements, and suit the needs of both in-person and virtual attendees in both domestic and international markets.
Andrea Grigg, global head of hotel asset management at CBRE, said managing booking patterns to accommodate multiple smaller groups at a time is critical. She also emphasized intensifying the collaboration with the hotel sales team to find the right business and manage the acquisition costs to protect profitability.
"Proactive selling and best-fit prospecting are the name of the game," Grigg said.
Steve Goodman, managing director at Etherio Group, a nationwide association and event management company, recommended that revenue managers have a dynamic pricing strategy to adjust room rates based on demand and market conditions to capture the most revenue and maximize profitability. Another strategy to use is market segmentation, which entails identifying different market segments to tailor pricing and promotions accordingly.
"This allows hotels to target specific customer groups and optimize revenue by offering personalized packages and rates," Goodman said.
Group revenue management is another great way to develop a comprehensive strategy for managing group bookings, Goodman said. To do this, hoteliers should analyze historical data, market trends and group size to determine the most profitable pricing and inventory allocation for group bookings.
With the rise of virtual and hybrid events, convention guests are increasingly looking for flexible options that allow them to attend conferences both in-person and virtually, Goodman said. Revenue managers at convention hotels can offer flexible pricing packages that cater to both in-person and virtual attendees. This can include options for live streaming, virtual networking and access to digital content.
Personalized experiences also are an important trend, Goodman said. Convention guests are seeking personalized experiences that go beyond traditional event offerings.
"Revenue management can reflect this trend by offering customizable packages and add-ons, such as personalized event-planning services, curated dining experiences or unique local excursions," Goodman said.
Overall, revenue management for convention hotels has become more data-driven, Goodman added. With the availability of advanced analytics tools and technology, hotels can now collect and analyze vast amounts of data to make informed pricing and inventory decisions. This includes analyzing historical data, market trends, competitor pricing and guest preferences to optimize revenue.
"These changes in revenue management for convention hotels reflect the evolving market dynamics and the need to adapt to guest preferences, technology advancements and industry trends. By embracing these changes, hotels can stay competitive and maximize revenue potential," he said.
With the group segment being a large portion of its business, effectively managing arrival and departure patterns — as well as optimizing the use of its meeting spaces — are key at the Hyatt Regency Salt Lake City in Utah, said Jarrod Finley, director of sales and marketing at the property.
"As we evaluate business opportunities, we have established metrics around Revenue Per Available Square Foot, or 'RevPAS,' to ensure we are optimizing our meeting spaces," Finley said.
Hyatt Regency Salt Lake City Director of Revenue Management Ashley Jensen said it's become more complicated than just looking at recent performance data.
“With the disruption from the pandemic, you can no longer rely on just historical analytics and trends to guide group decisions," she said. "For example, previously strong group segments are now not performing as they have historically."
The Hyatt Regency Salt Lake City now has to focus more heavily on forward-looking trends and market performances. Revenue-management systems have been adapting to better anticipate demand and more accurate forecasting, as well as consistently evaluating innovative ways of maximizing all different kinds of revenue streams, Jensen said.
Across the globe in Indonesia, Christian Hoechtl, general manager at the Ayana Midplaza Jakarta, said that he utilizes several strategies to maximize revenue potential. For instance, dedicated event coordinators are assigned to each meeting, incentives, conferences and exhibitions segment, ensure that booking decisions receive personalized attention, seamless event execution and efficient problem-solving. Dynamic pricing models that adjust rates based on demand, seasonality and event size are used along with data analysis and reporting.
"Hotel teams track [meeting, incentives, conferences and exhibitions] revenue metrics, including occupancy rates, average room rates, and revenue per available room. Data is being analyzed to identify trends, optimize pricing strategies, and improve overall [meeting, incentives, conferences and exhibitions] performance," Hoechtl said.
The team at the Sonesta Resorts Sint Maarten has taken a few steps during the last two years to effectively revenue manage for large groups. The two adjacent properties — Sonesta Maho Beach Resort, Casino & Spa and Sonesta Ocean Point Resort — added a whole revenue-management system to help deliver the best yield, focused on developing its retail distribution, and tailored its message to its target audience, said Cesar Rocha, revenue and distribution manager.
"We have also engaged in incoming airlift distribution to the island, understanding how our feeder market and number of seats the airlines provide affect our occupancy," he said. "By understanding this, we then adjusted our distribution strategy by analyzing lead time and length of stay in order to maximize profitability."
In addition, the resorts at Sonesta Resorts Sint Maarten have doubled their efforts in the group segment, leveraging meeting space and all-inclusive amenities to drive additional business year-round.