A guide to an optimal group quotation process

Once we have gathered as much information as we can, from a revenue perspective, I have outlined 3 important steps below that I follow when making group quotations. Naturally, the long-term goal should always be to optimize total revenue.

It is imperative that a hotel is aware of what is going on in the market in order to anticipate the level of demand and set the correct pricing strategy. Without this information, a hotel is very likely going to miss out on a revenue opportunity by offering too low rates and thus not achieving their potential. Or, offering far too high rates and missing out on important conversion, thus leaving “money on the table.”

It is important to forecast expectations and growth rates, particularly when dealing with trade fairs, as planning is the key to successful total revenue optimization. As a rule of thumb, you do not want to sell out a trade fair far in advance as this usually results in lost revenue. Frequently hotels are finding themselves in these situations where a significant portion of their inventory is already booked for groups for a fair coming up in 2 years, while their competitors are still available and are selling rooms at far more than the value of the group.

Finally, total revenue displacement is an important factor to consider when making a group quotation. By considering costs and displacement as well as total revenue contribution, hotels may achieve a better result than originally budgeted or forecasted for the period. When total revenue optimization is considered, the opportunity and potential for revenue growth is higher while minimizing the amount of money left on the table.

At the end of the day, remember, the best satisfaction comes from achieving results and positively impacting bottom line profit.