Hotel revenue insights: group bookings vs. transient guests
In this month’s Check-In we look at how to balance group and transient bookings to optimize hotel revenue.
We also catch up with two European hotel groups to learn how they are focusing on group business in 2024. Learn from Capsis Hotels and Mangia's Resorts .
And there’s a FREE download. Get ‘The Ultimate Group Booking Proposal Checklist’.
Navigating hotel success: group bookings or transient stays?
When it comes to maximizing revenue for your hotel, a balanced approach that includes both group and transient bookings is key. Group bookings offer steady revenue streams and operational efficiency, while transient bookings provide flexibility and help fill occupancy gaps. By diversifying your offering and focusing on delivering exceptional guest experiences, you can mitigate risks and capture revenue opportunities from both segments.
To optimize your decision-making between group and transient bookings for your hotel, consider the following:
Define Your Hotel's Goals: Understand what you want to achieve as a business. Determine if occupancy, guaranteed income, revenue maximization, or ancillary spend is your priority.
Conduct Displacement Analysis: Evaluate the value of group bookings versus transient bookings. Consider factors such as room rates, total guest value, ancillary spending, and potential revenue from both segments.
Consider Capacity and Demand: If your hotel has limited room capacity, be cautious with accepting group bookings, as it might affect transient guest availability. Assess demand and occupancy levels to make informed decisions.
Assess Revenue Potential: Compare the projected value of displaced transient bookings with group business bookings. Opt for the segment that offers higher revenue potential after considering all associated costs and benefits.
Evaluate Guest Spending Patterns: Analyze which segment is likely to spend more on ancillary services such as dining and meeting room bookings. Choose the segment that aligns with your hotel's revenue goals.
Ultimately, the best approach depends on your hotel's unique characteristics, market conditions, and strategic objectives. By carefully weighing the benefits and drawbacks of each segment and adopting a data-driven decision-making process, you can optimize your hotel's revenue management strategy for long-term success.
Capsis Hotels confident of corporate growth
Capsis Hotels, a family-owned business with three hotels in Greece, is focusing on corporate accounts and congresses in 2024 after seeing revenue success in these segments in 2023. They are using strategies like rate optimization and educating the market on dynamic pricing.
Anatoli Kapnidou , the Director of Sales & Revenue, emphasizes the importance of tech adoption in the Greek hotel sector and suggests educational seminars to encourage it.
领英推荐
Challenges include the market not yet returning to pre-pandemic levels, particularly with certain international markets like China. Capsis Hotels plans renovations, website improvements, and segmentation of guests to target effectively.
Mangia’s to explore new markets and increase group business
Mangia's, an Italian hotel group operating 13 properties in Sicily and Sardinia, aims to increase automation and explore new markets to enhance profitability. They shifted from traditional tour operator agreements to more profitable channels, emphasizing a dynamic distribution strategy.
Group business is a key focus area for growth. Leveraging cloud-based solutions, Mangia's has revamped its tech stack and is now focusing on automating revenue management processes, particularly with Duetto.
Director of Revenue, Nino Tropea , highlights the importance of total revenue per guest and emphasizes the need for clear and accurate data to understand demand trends. Excitingly, Mangia's plans to launch new hotels and brands this year.
Out and about with Duetto:
27 May - ARMA, Melbourne, Australia - https://revenuemanagementassociation.com/apac-rm-summit/
29 May - MEWS Unfold, Amsterdam, The Netherlands - https://mewsunfold.com/
24 June - HITEC, Booth 1751, Charlotte Convention Center, Charlotte, US - https://www.duettocloud.com/meet-with-duetto-hitec-charlotte-2024?
We hope to see you at some of these events.
Subscribe to our e-newsletter
Get the latest revenue strategy thought leadership direct to your email inbox. Subscribe now and never miss a story.