Drive More RevPAR from Group Meetings
By Kevin Iwamoto Vice President of Industry Strategy, Lanyon | August 30, 2015
Ask any hotel executive what their top goals are and they will unanimously say driving more revenue from group meetings, selling more room nights, and increasing market share. Hotels can't just keep hiring sales headcount in order to increase market share, generate more leads, and respond to eRFPs. Additionally, the coverage they would need to expand market share is cost prohibitive and daunting at best-especially overseas in Asia-Pacific, Latin America, Europe, the Middle East, and Africa.
The most logical solution to increase market share, sell more room nights and maximize RevPAR, whether for group meetings or transient room business, is to leverage technology to manage the eRFPs generated by corporations, or third parties and intermediaries. If you do the simple math, more leads equal more opportunities for revenue. Furthermore, the utilization and deployment of the technology can and should be made available to all properties in the brand-even those that are franchised and owned independently.
The challenge then becomes how quickly to turn those leads around and how to prioritize responses to win business which is something only technology has proven it can accomplish for end users whether they be buyer or supplier.
So, is it worth it? Research indicates that approximately $100B per year in hotel revenue is associated with group business and room blocks. Much of this business is managed via manual tasks that are time consuming for hotels and event planners, alike.
It has been proven many times over that eRFP technology that automates manual processes are not only more efficient and minimize errors but also the net effect is that group business volumes increase. So, if people know this, why are so many hotels still using manual processes? Technology can automate manual tasks, which in turn frees hotels to spend more time delivering an exceptional experience for group meetings-the most profitable market segment. Hotels can generate more group demand and greater revenues per group while capturing savings, improving group profits, and elevating customer service, and loyalty.
The Meeting Planners' Perspective
The Hotel Business Review articles are free to read on a weekly basis, but you must purchase a subscription to access
our library archives. We have more than 5000 best practice articles on hotel management and operations, so our
knowledge bank is an excellent investment! Subscribe today and access the articles in our archives.