Knowland Announces Results of Group Source-Of-Business Survey

Over-Reliance on Costly Third-Party Inbound Leads to Book Group

USA, Arlington, Virginia. October 21, 2019

Knowland, a hospitality industry leader in meetings market data and analytics for hotels, convention and visitor bureaus (CVBs), convention centers and other meeting venues, today announced the results of its Group Source-of-Business Survey for the hospitality industry. The data shows a greater reliance on costly third-party inbound leads as the source of business to book group than proactively selling.

The Knowland survey was conducted in August 2019 and included 900 on-property and above-property respondents representing the full spectrum of roles in the industry (Owners, President/Principal/CEO, Property Managers, Regional Managers, General Managers, Directors of Sales/Marketing, Revenue Managers, Catering Manager and Group Sales Managers). The survey findings clustered around five dimensions:

1. Pace

2. Prospecting

3. Group Contribution to Revenue

4. Source of Business

5. Commissions Paid

The actual source of business mix reported was troubling. Respondents showed an over-reliance on inbound leads as a source of business over proactively selling group.

· 42% Repeat Business

· 36% Inbound Reliance to Sell Group

· 22% Proactive Selling Group

An over-reliance on inbound leads from third parties is a risk factor for underperformance and revenue shortfalls. Properties and property management groups should take a hard look at their sources of business contributing to group and what this business really costs. Changing the group sales strategy from inbound to proactive while investing in the solutions to support that strategy will help properties shore up revenue shortfalls and best position properties to meet the challenges facing the industry today and into the future.

The most interesting finding was around pace and how hotels are performing. As a whole, 56.3% of respondents answered they were either on pace or ahead of pace for the year. This was not in line with what was recorded from responders to the same question asked on a webcast in June where 75% noted they were not on pace.

This prompted us to segment the data by role. In this stratification, the level of confidence shifted. Those actually selling group reported with slightly more confidence (58%) that they are on or ahead of pace. The individuals who have a more micro view of revenue (GMs & Revenue Managers) have a decidedly different vision of how their hotels are pacing. In this category, 69.4% of the individuals responded they are behind pace for the year. This suggests a disconnect between sales and operations. This variance can create dissonance between the two teams that make it harder to align goals.

To manage a property's group performance well requires the right metrics and benchmarking to get all stakeholders on the same page. It also requires the right source of business mix to gain control of group pipeline, bolster repeat business and optimize profitability. To watch a webcast discussing all the key findings in the Group Source of Business Survey, please click here.


Tags: group sales, survey results on group, property profitability strategies

About Knowland

Media Contact:

Lisa Bonanno
VP, Marketing
Knowland
T: 571-429-5772
E: lbonanno@knowland.com
W: http://www.knowland.com

Subscribe to our newsletter
for more Hotel Newswire articles

Related News

Choose a Social Network!

The social network you are looking for is not available.

Close
Coming up in June 2020...

Sales & Marketing: Technology Rules

It is impossible for any hotel to develop an effective sales and marketing plan that doesn't include a wide-ranging digital strategy. Online platforms have impacted virtually every aspect of their business, due to major changes in how Internet users research, plan, and book their hotel visits. As a result, a successful plan includes generating traffic through the use of a hotel website, social media, email and a myriad of other digital marketing technologies. One such strategy uses data collection and automation technology to create personalized content to individual customers. The goal of personalization marketing is to engage potential customers by communicating with them as individuals - to establish a more personal relationship - as a way of encouraging them to visit a property. Video marketing is also extremely important. Showing someone authentic video from a specific location is immersive and engaging, and video is still the preferred way for customers to interact with a hotel brand. Voice and Visual Search are increasingly in demand, as consumers are moving away from typing queries into a search engine. Instead, they can simply speak their request into their phone, and find and book a hotel without ever typing a word. Similarly, other platforms allow consumers to search visually for almost any image, and find out pricing information, shopping comparisons and how-to-buy - all from the app. The adoption of Artificial Intelligence is also becoming popular. The ability of chatbots to answer simple questions or fulfill requests 24/7 is undeniably appealing. In addition, A.I. seems best positioned to qualify leads that can be later nurtured and closed by a human sales expert - all at a fraction of the cost of a traditional support team. The June Hotel Business Review will examine how some sales and marketing professionals are integrating these innovative technologies into their operations.