Hotel Group Sales Blog

Optimizing Groups Sales, Revenue & Cost

Efficiency of your RFP pipeline

Sales Efficiency Series - Efficiency of your RFP pipeline

More than ever before, hotel sales teams are finding themsleves under RFP overload along with increasing demands on speed to market. How can they meet these competing demands? In today’s blog we look at how GroupRevMax eliminates RFP hell in three simple steps


Step 1 – Consolidate Leads

GroupRevMax consolidates leads from any lead sites that a hotel signs up for and displays all leads in one place, nicely tabulated with pertinent information like source, due date, dates of stay, rooms requested, etc. It supports independent lead generation sites, brand websites, and convention bureau sites for consolidation, eliminating the need for sales managers or a coordinator to visit multiple websites looking for leads.

Step 2 – Score Leads

Once the leads are consolidate, GroupRevMax scores them relative to each other for best fit and probability of conversion. Following are some of the factors used to determine which groups are best fit for the hotel and which have the highest probability of converting.


Best Fit

  1. Profitability
  2. Current group pace on requested dates vs. historic pace
  3. Space to room ratio requested vs. available
  4. Lead Time
  5. Group Size

Conversion Probability

  1. Rate requested vs. hotel’s current group rate
  2. Star rating if requested
  3. Is this a repeat customer?

Step 3 – Assign Leads

Once leads are consolidated and scored, they are assigned to different sales managers based on pre-set criteria like geography, market segment, group size, lead time, etc.

End Result 

These 3 steps help hotels in the following ways

  1. Increase sales efficiency and productivity by eliminating all manual tasks that are not associated with actually responding to an RFP
  2. Increases probability of conversion by responding to the best fit leaf with maximum probability of conversion first and gaining the first response advantage


Does your hotel need to streamline RFP management? Click here to request a free trial of GroupRevMax.

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Tiered Group Rates - A win-win for hotels and event planners?

Tiered Group Rates - A win-win for hotels and event planners?

It's the dilemma impacting many organizations in the meetings industry. The planner wants to offer more rooms at an attractive rate for attendees. The hotel wants to wait to see if business and leisure travelers will represent better business.

“Everyone’s trying to drive rate,” Heidi Voorhees, MBA, CAE, Senior Vice President, Housing, Experient, says. “No matter where you turn in the hotel industry, the conversation is all about ADR growth.”

Hotels have plenty of reasons to turn bigger profits, too. A combination of higher transient demand and limited supply growth make the current environment very much a seller’s market. This presents some potential challenges on the planner’s side of the negotiation table.

“A lot of groups are under-blocked,” Voorhees says. “Still, even as group demand increases, it’s been challenging to secure more rooms.”

A Real Solution For Rooms And Rates

The good news? There is a strategy that can satisfy both sides: rate yielding.

“Rate yielding is a tried and true technique,” Voorhees says. “Airlines have been using this model to sell tickets for years.”

In addition to airlines, online travel agents like Priceline and Expedia use the same type of approach to maximize profits and sell more rooms. For group rate yielding, the two parties work together to secure an introductory rate for a pre-determined allotment of rooms. As the registration period continues, the hotel can evaluate their transient demand to determine when to provide more rooms for the group and where to set their rates. The state of the market and historical registration activity help dictate how to set new hotel costs.

“Successful rate yielding relies on understanding the show cycle,” Voorhees says. “You have to take into consideration the typical booking patterns to know how many times and when to adjust the rate.”

However, those rate adjustments should not be an arbitrary amount. As a planner sorts through the details of a hotel contract, yielding must be a big part of the discussion.

“It’s important to start with a low introductory rate, but it’s equally important to negotiate the end game,” Voorhees says. “The client has to know the maximum rate they’re willing to accept. Make sure the language in the contract supports that range.”

Voorhees and Experient have already seen rate yielding’s impact. By using rate yielding at CONEXPO-CON/AGG in Las Vegas, the blocks at 13 MGM properties grew by 15 percent over contracted value at lower-than-market rates.

Appeal To Attendee Buying Behaviors

In addition to keeping planners and hoteliers happy, this strategy can keep smiles on the faces of the most important people: the attendees.

“When you think about the perception of travelers who book through OTAs, they’re used to seeing incremental increases in prices online as they approach their travel dates,” Rick Benoit, Manager, Housing Services, Experient, says. “That’s why a tiered process is especially important in this strategy. Rather than a $200 room immediately becoming a $500 room, you can taper and layer the rooms into the block.”

“Those smaller cost adjustments are an easier pill for attendees to swallow,” Benoit adds.

A Strategy To Fuel Success In The Future

With limited new hotel construction and a forecast for more business travel, rate yielding is a term that will start to pop up in more conversations around the industry.

“It’s on the cutting edge,” Benoit says. “It’s going to be a very effective strategy to use in the next few years when rates are really high.”

Voorhees and Benoit both highlight that rate yielding may not be the right move for every meeting, but it can certainly pay dividends for many groups in desperate need of more rooms. 

GroupRevMax is considering variable pricing as a feature to it's group revenue management functionality and wants your feedback. What do you think? Would you like this feature for your hotel? Let us know your comments below.

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TravelClick predicts 3.5% increase in Group ADR. Will your hotel capitalize on this?

TravelClick predicts 3.5% increase in Group ADR. Will your hotel capitalize on this?

TravelClick’s NAHR predicts that group ADR is poised to go up 3.5% due to strong pace in third quarter of 2105. Further, group occupancy for the next 12 months is predicted to go up by 1.9%. That’s the average, but some hotels will benefit more and some less. Here’s a few questions to ask yourself to see if you are positioning yourself well to benefit the most.

Are you accepting the right business?

As group demand increases in convention markets, hotels will have to weigh every group lead against future group and transient potential. For example, business that negatively impacts the ratio of guest room to meeting space availability for future sales should be scrutinized more since the revenue potential of meeting space reduces when there aren’t enough guest rooms to match and vice versa. Another factor is overall profitability of the group across guest rooms, F&B, room rental and other ancillary revenue. Evaluating each group on these aspects will help identify good and bad business, but it has to be done in an automated way so you don’t impact speed to market.

Is your group pricing dynamic enough to capitalize on new demand?

Many hotels use a strategy known as MAR (Minimum Acceptable Rate) for pricing groups. MAR is generally derived from transient rates with a discount percentage, so the logic is that since we do good revenue management for transient rooms, it will flow into groups as well. However, groups are not the same as transient and a few factors when not considered can result in significant reduction of revenue and profit. 

Revenue leaks

Groups have many requests from hotels like complimentary rooms, upgrades, staff rooms, etc. In addition some groups come from commissionable channels and some are direct. Pricing everyone the same or can result in up to 15% loss of profit. 

Group Size 

Every sales manager loves a large group that fills up rooms, but from a revenue perspective smaller groups give revenue managers the opportunity to incrementally increase rates. In order to maximize revenue, hotels must consider loss of the opportunity to incrementally increase rates for larger groups after every so many rooms. The following chart shows the difference between price increase of $5 every 10 rooms and MAR pricing for a 300 room block.

Are you maximizing total revenue or focusing on guest rooms only?

The focus on ADR in TravelClick’s report is representative of the minimal focus that other revenue areas like meeting space and catering receive in most hotels. Hotels that enforce revenue and profit goals for conference space and catering are much better positioned to take full advantage of the improved pace to add to their bottom lines.
In addition, hotels can also adopt revenue management principles and variable pricing for conference space. As an example, if guest rooms are sold out, meeting space revenue goals could be reduced to enable them to be sold to catering only events. Also, as you get closer to the date, hotels could further reduce F&B minimum and rental to bring in any revenue that’s possible as long as it’s above cost. All this can be done manually, but is cumbersome and an automated pricing tool for conference space will sever hotels well. 

Is your speed to market good enough?

As markets get more compressed, meeting planners want to make sure they don’t lose good deals by waiting for every quote to come in and tend to finalize the first quote that meets their budget and other criteria. Hotels need to look at every aspect of their group sales cycle to see how speed to market can be optimized without sacrificing due diligence. The factors discussed in sections above should also be implemented so as to not impact speed to market.

How to fill the gaps?

So, you found some aspects that could be improved, so how do you do it? One solution in the market that can dramatically improve your speed to market while considering all the above factors is GroupRevMax. It’s cloud based and can be implemented in a few days to better position your hotel to take advantage of the group occupancy and ADR growth.  Visit their website at to learn more and set up a free demo.

Original article with TravelClick forecast can be found at

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