Mr. Stacy

Reservations / Online Pricing / Booking Engines

Online Group Travel Bookings - Small Groups Offer Big Opportunities

By Mike Stacy, Chief Executive Officer, Groople.com

Anthea Gerberg, a married mother of two toddlers from Castle Rock, Colorado, is planning her second annual, she hopes, "Girlfriends' Getaway" weekend. On the heels of a similar trip to Moab, Utah, she's now researching options in Las Vegas. The six moms who have so far committed to go are looking for accommodations that offer a spa, pool, gourmet dining, access to nightlife, and, if possible, no kids.

Her husband, though, isn't complaining; you could say he's getting even. Bob, who runs an employment agency, recently returned from a "Mancation" in Las Vegas with the guys. They didn't seek out a spa or gourmet dining, but golf and nightlife were high on their list of requirements. Now, the guys are starting to plan their next trip: an action/adventure getaway in Los Cabos, Mexico.

The Gerbergs represent the growing number of small group travelers, parties of three or more looking for getaways to meet a specific need or interest. Girlfriend Getaways, Mancations, Historical Journeys (where groups of intrigued travelers go to a historical destination to connect with history), and all sorts of special interest travel groups such as culinary organizations and car clubs, are hitting destinations worldwide to explore their passions with other like-minds.

Growth in the group travel market and leisure travel spending are helping fuel the trend. According to recent Group Travel Research conducted by PhoCusWright, the total groups and meetings market is projected to be $175 billion in gross bookings by 2008, of which hotels can expect $34.3 billion. Among the baby boomer generation, leisure travel alone has increased by 25 percent since 2003, according to a report in USA Today. Generation X, though smaller in numbers, is making up the dollars spent difference by spending more per trip than wealthier baby boomers. In 2004, Xers, the 60 million Americans aged 25-40, spent an estimated $2,140 per capita on travel involving a hotels stay, versus the boomers' $2,016, according to travel research firm D.K. Shifflet & Associates.

This generation of savvy, well-funded travelers is also more likely to go online to research and book their group getaways. After all, this is a generation used to booking their individual travel on websites such as Travelocity and Orbitz or hotel and airline websites. It's highly unlikely that those weaned on online travel sites will change gears when it comes to researching and booking their group travel.

The numbers, too, point toward growth in the online sector. The trend toward booking online continues to grow and is expected to reach 41.8 percent of travel transactions by 2008. The leisure group will be an important player in this growth, with $14.5 billion in sales going online by 2008, of which 36.5 percent will be hotel gross bookings. Smaller groups, between one to nine persons, are predicted to go online rapidly, according to PhoCusWright.

The Gerbergs can attest to the online trend. Anthea is researching the hotels online, noting such features as price and amenities as she communicates via email about the trip options. Once the property is decided, she will take the reins and hold the rooms, but will leave it up to each person to pay for her room and airfare. Even the shows they hope to see are being researched and booked online. "I don't imagine having to pick up the phone once for this," she says.

Bob, too, is handling the details online. He admits price will be a big factor in deciding which hotel to choose, but still does not plan on calling about "group rates." He figures the best rates, on hotels and airfare, can be found online.

This should be good news to hotel marketers and event planners. While the processing of group travel reservations has long involved sticky notes, flip charts, and white boards to help organize confirmations, rooming lists, and correspondence, advances in technology systems mean that hotels can reach groups large and small, in real time, through online travel agents and handle the transaction using an automated backend system. This means both time-savings for the hotel staff and customer satisfaction for the guests.

Hotels wanting to reach the small group travelers should pay attention to how the Gerbergs, and others like them, are searching online. Prices, in real time, are key. Having current group rates available in an online system that can be displayed in real time will increase the probability of the hotel being in the choice set and eventually selected.

Listing amenities will also make the property more appealing to group bookers. Different groups are looking for different things when they search for a hotel. Those on a historical journey may favor a hotel with history or within walking distance to historical attractions, while a soccer coach planning a team trip may opt for a free all-you-eat-breakfast for his hungry team. Even pointing out the smallest amenity details, such as special bedding, can be a deciding factor for these niche travelers. Anthea and her friends have placed a spa high on their list of required hotel amenities, but an adults-only pool may hold even more appeal to a group of women trying to escape the rigors of parenthood for a weekend.

Making these small groups feel special, too, can make all the difference. The easiest way to do this is by offering special group rates and/or discounts for hotel services. Even though they may only be booking a block of five or more rooms, small groups want to know that your hotel wants them there and is incentivizing the group to stay at their property instead of another similar property.

Finally, a seamless experience at a hotel property also makes the stay memorable for these group travelers. In a group situation, every experience, be it a good one or bad one, is multiplied by the number of people in the party. Keeping on top of such details as the rooming list can ensure that when the group shows up at the hotel, everything will be as expected. This is especially important to the group leader, or planner, who can wind up taking the heat for any trip discrepancies. Instead, your hotel should help make the group leader the hero of the trip.

Mike Stacy is the ceo of Groople.com. He brings 15 years of experience to Groople. He has built and grown some of the top online travel brands. Prior to Groople he was president of Cheaptickets.com, owned by Cendant. Mr. Stacy developed a new organization and improved the technology and customer experience, leading to high conversion rates. He cut costs and launched a new marketing campaign, earning the website "Fastest growing online travel site" in 2004. He holds a bachelor’s degree from St. John’s University and an M.B.A. from Pepperdine. Mr. Stacy can be contacted at 303-483-9006 or mikestacy@groople.com Extended Bio...

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