Hotels love groups. They book large blocks of rooms, spend money on events and group meals, and often book well in advance.
The question is, do groups love your hotel?
Group organizers have specific needs and high expectations. To attract the right groups and ensure they leave satisfied, you need to deliver on what matters most to them. Otherwise, they’ll go elsewhere, and you’ll miss out on valuable revenue.
So, what exactly does it take to win over group business? And why should hotels be selective about the groups they accept?
Whether you’re a revenue manager, sales manager, or GM, here are seven key areas to focus on in your group revenue strategy.
1. Understand Different Group Types
Not all groups are created equal. Their needs, budgets, and expectations can vary widely. Some may be the ideal fit for your independent hotel or small hotel group, while others may be better suited for a large conference hotel or chain property.
While there are many types, here are five of the most common categories:
- Corporate – Booked by companies for meetings, training, or team-building retreats, usually for weekday stays. Often require meeting space and reliable tech support.
- Conferences – Attendees typically meet at a nearby convention center but may need accommodations, small breakout rooms, or social spaces.
- Social – Weddings, reunions, and other celebrations, often for weekend stays. These groups may need event space, catering, and a little extra hand holding.
- Wholesale Tour – Leisure groups booked by tour operators at net rates. Efficiency, affordability, and memorable group meals are key.
- Entertainment – Touring artists, production crews, and media teams. May require unique setups like production offices, suites for talent, and flexible check-in/out times.
Who books these groups? Typically, meeting planners, tour companies, travel agents, corporate reps, or tour managers – each with their own communication style and expectations.
And while some will travel with the group and act as the onsite contact, others may delegate that role. Be ready for both scenarios.
2. Go Find the Right Group Organizers
If you wait for group business to find you, you’ll miss out on valuable opportunities. Here are a few ways to proactively target group planners and decision-makers:
- Run email campaigns, ads, or direct sales initiatives tailored to local businesses, associations, and travel agencies.
- Partner with meeting planners, wedding sites and venues, and your local destination marketing organization (DMO) or convention bureau.
- Showcase your group-friendly features online with professional photography, video tours, packages, and glowing testimonials from past organizers.
3. Respond Fast – Positive First Impressions Are Critical
For many organizers, your response time to an initial query is the first sign of how “group-ready” you are. Here’s how to impress:
- Assign a dedicated group sales manager.
- Post an online form or email address on your website for group inquiries.
- Respond within the same business day – ideally within a few hours.
- Be highly professional and organized.
- Share details that show you’re the perfect partner and get them excited to book.
4. Deliver Flawless Execution
Arranging travel for a group can be complex and stressful. Organizers want the confidence that everything will go smoothly, from check-in through to departure.
Great group service is about clear communication, attention to detail, and seamless coordination. Key steps include:
- Create a detailed contract that clearly outlines expectations, deadlines, and cancellation terms.
- Assign a coordinator to finalize logistics and serve as the primary point of contact.
- Circulate a “group resume” (aka briefing doc) to relevant departments ahead of arrival.
- Review details in pre-arrival meetings with the operations team.
- Prepare room keys and welcome materials in advance and be ready to personally greet the organizer and VIP guests upon arrival.
5. Offer Value, Not Just Discounts
Group organizers may expect a discount off your BAR (Best Available Rate), but context matters. If you’re forecasting high demand, it might be smarter to increase your rates or even decline the group.
Don’t default to always dropping your rate to win a group. Instead, focus on delivering value that aligns with your revenue management goals.
- Discuss group requests with your sales, marketing, and revenue teams to ensure they’re the right fit, and with operations to ensure capacity.
- Create value-rich packages that bundle rooms with services and amenities – like wedding packages, meeting packages, or all-inclusive retreats.
- Use automated revenue management solution to dynamically price group blocks along with transient business based on demand.
- Offer value-adds instead of rate cuts, such as comp rooms, upgraded suites, or free meeting space, or more flexible cancellation and attrition policies if needed.
- Reward the organizer with perks: a welcome gift, spa treatment, complimentary future stay, or exclusive upgrade.
6. Compare Group Value to Transient Business
When evaluating a group request, always ask: Will this booking generate more revenue than transient guests over the same period?
This is where a group revenue displacement analysis becomes essential. It helps you compare the projected revenue of the group against what you’d expect from standard bookings during the same dates.
If the group brings in more revenue, perfect. If not, negotiate better terms or politely decline.
To learn more, check out Group or Transient? Solving the Great Dilemma in Hotel Revenue Management.
7. Price Right with a Group Booking Pricing Calculator
RoomPriceGenie’s upcoming Group Booking Pricing Calculator takes the guesswork out of group pricing. Just enter a few details, and the feature analyzes market trends, historical data, and forecasted demand to generate an optimized group rate.
The result? You can confidently quote a competitive price that aligns with your revenue strategy without spending hours in spreadsheets.
Now You’re Ready to Make Smart Group Decisions
Group business can be a high-value revenue stream, but only when approached strategically.
By targeting the right groups, leveraging smart pricing tools, and delivering standout service, your hotel will be loved by groups just as much as you love them.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
