8 strategies to win more
group sales at your hotel
Group sales in the hotel industry can be tough to master. Understanding key decision-makers, top-performing channels, and attractive pricing and packages all play a role in the sales process.
Hotel sales managers and teams must understand the importance of tailoring their pitch to the unique needs of group businesses. Understanding these needs and helping groups achieve their overall objective is what sets hotels apart from others in the hospitality industry.
Whether your property hosts corporate events, business meetings, or leisure groups, here are a few essential techniques to consider to increase your profitability and win more deals.
3 key decision-makers
Knowing who to connect with and how to position yourself as the best-fit hotel means attracting more group business for your property. Here are three key decision-makers you’ll want to build relationships with.
1. Third-party planners
Third-party planners are experienced in working with diverse groups that span a variety of corporations and companies.
While third-party planners tend to take a commission off the top of your group booking, they can be easier to work with, given they know what they are looking for and are often seasoned professionals.
2. Corporations
Your best bet for marketing and selling to small and medium corporate groups is their in-house planner. These planners have tailored experience understanding their corporate brand and meeting the group’s wants and needs.
Working with in-house planners means more wiggle room for your hotel room rates, and you’re not paying commissions like you would to a third-party planner.
3. Individuals
You might also encounter individuals looking to book a hotel on behalf of their group. Guests may collectively travel for bachelor parties, family reunions, and more. In its U.S. Consumer Travel Report 2023, Phocuswright found that 11% of respondents said they traveled with loved ones — a 57% uptick from the previous year.
Individual groups can be a great source of direct bookings if they find your packages on your website and inquire directly via form or email. Otherwise, they may leverage travel agencies to plan group stays, making it crucial to establish relationships with key contacts.
Effective sales channels for groups
Now that we’ve identified the key decision-makers for group sales, let’s look at the most effective sales outlets. From attending industry events to utilizing venue marketplaces, the sales channels you choose should align with your target travel groups.
Events
Maintaining a roster of regional and industry events can help you to determine which ones are worth attending. Large-scale industry events offer fantastic networking opportunities to build strong relationships with other hospitality professionals, while smaller events can be great if your property has a unique niche, like art-deco.
Patrick Burkhardt, Strategic Sales Executive at Cloudbeds and former Hotel Sales Manager, says,
Associations
Maintaining close ties with your regional hotel and hospitality associations is one of the most effective ways to market your group travel offerings while networking within your industry.
“Where we got the most bang for our buck was SITE. I started on a committee, worked my way on to the board, then became President of my chapter in 2016. That made me stand out as a hotelier for our hotels,” shares Patrick.
Venue marketplaces
Venue marketplaces are often used by event planners and organizers to search for venues and include specs about your hotel.
From workspaces and meeting rooms to group accommodations and event spaces, venue marketplaces raise the visibility of your hotel business and make it easy for event planners to submit request for proposals (RFPs).
Hotel website
If you’re not already updating your hotel website showcasing features uniquely suited to group sales as part of your overall hotel marketing strategy, now’s the time to do so!
Include a user-friendly events page where potential groups can submit a lead form. This information is easily tracked and recorded within an event technology platform, from which you can send groups a tentative proposal tailored to their wants and needs.
Understanding the sales process
You’ve effectively utilized your available sales channels and successfully connected with the corporate planner. Now, it’s time to kick off the sales process.
1. A request for proposal (RFP) is submitted
After the event planner or corporate client narrows down their list of providers, they’ll submit a request for proposal (RFP) to your hotel. An RFP outlines the group’s requirements, including room count and type, food and beverage, as well as any audio-visual or event management needs if the group is looking to host a conference or seminar.
2. Respond with a proposal
With the help of your revenue manager, you can start drafting a proposal. A proposal responds to the requirements identified in the RFP and answers questions like the minimum spend on food and beverage per person, room rates, and activities available.
Since the selection is still in process, making your hotel stand out from the crowd with a personalized proposal is crucial. Include specifics on why your hotel is the right choice with case studies or examples to support.
3. Schedule a site inspection
Once you’ve finished drafting your proposal, the client will review it and if you’ve checked all their boxes, set up a time for a site inspection of your hotel. The site inspection is a chance for you to bring to life all your property has to offer and paint a clear picture of how you’d be hosting the group. Throughout this stage, negotiations take place between you and the group manager or event planner.
4. Sign the final contract
The final step of the sales process is the actual signing of the contract. Once you and the client have agreed upon the terms and conditions, the document is signed, marking the beginning of a prosperous partnership between you and the group.
8 strategies to win more group business
During a recent Cloudbeds Live, Hospitality Entrepreneur Russell Edmond shared some strategies to help hotels attract groups.
Below, we’ve also included several strategies to help you win more group business.
Establish fair commission rates with third-party planners
By ensuring the third-party planners you work with receive a fair and equitable commission for bringing business to your property, you solidify your business partnership with the planner and increase the likelihood of referrals and repeat business.
Get involved in the community
Consider getting involved in your local community groups. Visit local businesses, join hospitality associations and partake in site tours of other hotels to glean as much information as you can, in turn using your newfound information to attract further group business.
Identify your unique selling proposition (& target market)
Determining what makes your property unique, quirky or a cut above all the rest can attract groups looking for that special touch and increase guest satisfaction. Features like a Michelin-star chef at your onsite restaurant, an idyllic beach location for weddings, or unique team-building activities, can all be featured throughout your marketing and social media campaigns as part of your USP lineup.
Understanding your USP can also help you narrow down your target market. You can’t sell to every group (and nor should you); instead, you should focus on specific segments that your property is best suited to host.
Form strategic partnerships with other local business
Consider partnering with your town’s boutique aromatherapy shop to supply guests with local self-care products. Or, deliver a true farm-to-table experience as part of your hotel’s restaurant by collaborating with local farmers. These strategic partnerships help you to stand out from other hoteliers and showcase your ties with local businesses.
Identify your value-add
Identifying ways you bring value to your group bookings while keeping your margins low, is one of many hotel sales strategies that also wins big for group business. Consider tailored add-ons and upsells, such as a bottle of champagne for the blissed-out bride and groom who booked with you for their wedding venue or offering ways for corporate groups to offset their carbon footprint while on their team-building getaway.
Consider total revenue
While your primary goal might be room revenue, think outside the box by considering other ways to maximize your total revenue, like food and beverage, activities, audio-visual and meeting spaces. Patrick says,
Work closely with your revenue manager
Working in tandem with your hotel’s revenue manager allows you to align proper pricing across the board and successfully communicate this to potential guests. It also lets you identify areas for discounts and promotions that can be applied to your group bookings to secure the deal.
Nurture relationships
Sometimes, your potential group is simply not ready to book. Ensure you keep this connection alive and well by nurturing the relationship.
Understanding group booking patterns (e.g., is this a recurrent event?) and sending personalized email follow-ups and promotions at strategically timed intervals can show you care about your potential group guests without bombarding them with constant follow-ups.
This goes for post-stay marketing as well. Always follow up after a group stays with you to see if they’ll be back in the future or if there is a referral opportunity.
Technology to support group sales
A recent SkiftX and Cvent survey found that of the group-focused hotel employees surveyed, only 45% used a technology platform to optimize their pricing, meaning more than half aren’t taking advantage of the technology available to them.
Below, we’ve listed a few types of tech you can implement to support your group sales.
Event technology
Event technology helps sales teams send proposals, generate banquet event orders (BEOs), and follow up with groups all in one platform.
When integrated with other tech, hotels can streamline the sales and event process for groups. As an example, Patrick explains how Event Temple and Cloudbeds work together for sales teams.
RFP form templates
Another way technology can support group sales is to create templates of your RFP forms, making the documentation process fast and painless. Planners can easily submit RFPs, and sales teams can respond all within one platform, making the process quick and seamless. The Event Temple and Cloudbeds integration makes life easier for you and event planners by embedding your RFP form into your website.
Customer relationship management (CRM)
Your CRM is a tool for managing leads and contacts for marketing and sales efforts. For example, if your CRM data reveals your lead was looking at your hotel’s wedding packages, consider targeting these guests with a tailored wedding email, highlighting your event space and vendor options.
Final thoughts
Hotel sales teams must be strategic when it comes to securing group business. They must invest in relationships with key contacts, attend events, work with revenue managers, and utilize technology to streamline the process. While challenging at times, attracting the right groups can significantly contribute to a hotel’s bottom line.
