THE LAST WORD

One year later – the big impact of small groups

Without a doubt, the last year has been the most difficult year that every single person in the industry has ever faced, and a year later the feeling is pretty much the same.

By Derek Martin, founder and chief executive of TrevPAR World Group

March 2020 saw the start of an unreal event with hotel occupancies dropping to an all-time low. Over the course of the last 12 months we have seen a very slight improvement month-onmonth, however with little difference in actual revenues, as more and more hotels are opening up to trade again.

It is fair to say that hotels have become heavily dependent on the Online Travel Agent (OTA) channels and market with a massive emphasis on the leisure segment and weekend business in order to survive. Whilst there is nothing fundamentally wrong with this online leisure strategy, even if you are getting your fair share of the leisure market, occupancies are still not being maximised in the current trading conditions and this is where small groups may make a big difference!

As we are seeing an increase in vaccinations as well as the easing of travel restrictions, we are also seeing an increase in the number of searches for multiple room stays or small groups of three to six rooms at a time. This search demographic was often overlooked in the past, however, by focusing on these smaller groups now, it may become the steady increase in revenues which is needed.

In order to maximise on this new search trend, here are a few key points that need to be focused on to turn group lookers into bookers:

Pricing is key

You only get one shot to convert business in the current market. This means that when a group enquiry comes your way, you need to not only respond with a great turnaround time but also a great price. There are a lot of beds to fill in the market and you need to ensure that you get your price right the first time. Why would a potential booker come back to negotiate if they are able to get get a similar or better product at the same or even lesser price?

Add value

Often smaller groups are not only looking for a great deal but also added value. Be sure to think about this from the very first second that you start dealing with a group. The easiest way to add value is to look at complimentary room upgrades – the higher room categories are often the better rooms. Why not use these as a great value-add to help convert group business? Another benefit of applying this strategy is that you will have more entry level rooms to sell at a higher rate to the shorter lead-time business.

Tell the group story

Apply more focus to the fact that your hotel is happy and brilliant at accommodating small groups, whether for business, leisure or both. Update your social media content, digital media platforms, marketing approach and website to tell a group story. Offer group discounts, group private dining experiences and activities to aid conversion.

Let your technology do the work

We often forget that smaller groups book via Online Travel Agent (OTA) channels as well as via direct websites – or at least the search begins there, for many of them. Ensure that your booking engine allows for a potential guest to search more than one room at a time. It may even be a good idea to offer discounts for multiple room bookings.

Manage the process

Group bookings often take a little more attention to detail to perfect. Now is the time to ensure that this is done. You need to ensure that every aspect, from room type inventory management to turn-around time, is perfect. Group business is a very rare commodity at the moment and everything needs to be perfect in order to maximise the ability to convert.

Our trends show that group business is out there and will be returning rapidly, very soon. This is not the traditional group business as we know it, but an entirely new world, and we need to be prepared. Group business requires work to acquire – however, once locked in, it is easy to maximise, and easier on the operation, and the ability to maximise on incremental spend is enormous. Do not underestimate small group business in the current trading conditions, it is a win-win once you acquire the business!