When a destination is chosen to host a huge event like a sporting competition, headline concert, or citywide conference, it’s a thrilling time.
With smart revenue management, it can make a hotel’s year.
This year alone, visitors will flock to northern Italy for the Winter Olympics, to cities across North America for the FIFA World Cup, and to Iceland, Spain, and Portugal to view the total solar eclipse – not to mention a huge line-up of global concert tours.
How can your hotel make the most of these opportunities? Here are five ways to prepare for mega events and maximize revenue.
1. Forecast Demand Early
Large-scale events are often confirmed years ahead of time, well before your usual demand patterns are clear. That’s where a long-range forecast comes in.
Steps to get started include:
- Forecast regular demand. Look at past booking patterns to estimate the occupancy and average rate you could expect without the event.
- Check with the event organizer. Ask for attendance forecasts, schedules, and key venue locations.
- Estimate demand for your property. Factor in proximity to venues, transit access, historical event patterns, and market room supply (including short-term rentals).
- Map out stay patterns. Include pre-event nights (arrivals and setup), peak nights (event days), and post-event departures.
- Determine displacement. If the organizer requests a room block, this will help you decide how many rooms to commit (if any) and at what rates.
Your forecast won’t be perfect, and that’s okay. You can fine-tune it along the way as booking patterns become more apparent.
For Recurring Events, Look to the Past
Previous booking and stay patterns are often strong indicators for recurring events. In 2024, hotel rooms in prime viewing locations began filling up just weeks before the total solar eclipse, and rates soared. Looking ahead to this summer’s eclipse, traveler interest is already spiking, with search volume up triple digits, according to Hotels.com.
2. Price with Precision
Deciding what rates to charge so far in advance can be daunting. While you don’t want to be too cautious and leave money on the table, you also don’t want to be too aggressive and end up with empty rooms.
Here’s how to find the sweet spot:
- Avoid underpricing. Smaller independent hotels have a tendency to charge lower rates during high-demand periods compared to larger hotels and brands.
- Price dynamically. Rather than set one rate for the entire event, price by day based on demand. Offer higher rates for peak nights and softer pricing on shoulder nights.
- Optimize pricing by room type. If the event attracts VIPs and big spenders (like Formula 1 and the Olympics), charge premium rates for suites and deluxe rooms.
- Manage distribution channels. Close discounted rates and high-cost channels (OTAs, wholesalers) on high-demand dates.
- Bundle to boost total revenue. Offer packages with add-ons like meals, local transport, merchandise, premium services, or in-room extras.
How High Can Rates Go?
Price sensitivity varies by event, but here are a few recent examples of rate growth:
- Paris Olympics 2024: +141% ADR compared to previous year (STR)
- Taylor Swift’s 2024 Eras Tour: +300% ADR in select cities compared to previous year (CoStar)
- World Cup 2026: +78%–961% rate increases three weeks after schedule confirmed (New York Times)
The Pricing Mindset Holding Some Hotels Back
In a recent Revenue Playbook podcast, RoomPriceGenie’s Tim Boersma raised a common issue: many hoteliers fear overpricing their rooms, especially owner-operators worried about negative reviews or upsetting loyal guests.
But pricing should be led by data, not emotion, he said. With the right RMS, decisions become more confident, less reactive, and ultimately more profitable.
Events are a prime time to be bold. Citing the Formula One Dutch Grand Prix, Boersma noted, “Hotels are in control of pricing because demand is exceeding supply.” At the end of the day, however, “it’s always the guest who decides what they’re going to pay.”
3. Protect Your Inventory
When managed strategically with pricing, availability controls can help ensure only the highest-value bookings get in during peak event dates, while also boosting occupancy on pre and post nights.
Here are a few inventory management tactics to consider:
- Set early cutoff dates: If you’ve committed a room block, provide ample time to resell any rooms that are not picked up.
- Implement minimum length-of-stay (LOS) restrictions: Encourage longer bookings and fill shoulder nights.
- Tighten booking policies: Reduce cancellations and no-shows with longer cancellation windows, non-refundable rates, or advance payment.
- Lock down inventory: Prohibit staff from offering upgrades, discounts, or overbookings unless approved by the GM or revenue manager.
- Evaluate group bookings carefully. Before accepting a group, run a displacement analysis to compare its value against transient business.
4. Stay Flexible
Even the biggest events can deliver surprises. To protect your property from unexpected surges or stalls in demand, keep a close eye on the booking pace.
Watch for:
- Slower (or faster) pick-up than expected
- Shifts in competitor pricing or availability
- Schedule changes, bad weather, or slow ticket sales
Don’t overreact too early. Domestic travelers may book late, while international guests plan far in advance. Know your segments and adjust thoughtfully.
Two Cautionary Tales: The Risks of Overcharging
After Paris was chosen as the host city of the 2024 Olympics, local hotels set aggressive rates. But as the games grew closer, a wave of short-term rentals flooded the market. To reach occupancy goals, hotels had to significantly decrease rates.
Similarly, in the lead-up to Eurovision 2025 in Switzerland, hotels in Basel set high rates and tight booking controls. When demand proved to be weaker than expected, hotels that eased restrictions and adjusted rates outperformed those that held firm.
5. Let Smart Tools Simplify Event Pricing
Managing far-out pricing manually takes time and attention that many hotels simply don’t have. A smart revenue management solution can shoulder some of the burden for you.
Look for tools that:
- Forecast demand 12+ months in advance
- Track holidays and events on an integrated calendar
- Monitor daily, weekly, and monthly pick-up
- Adjust rates dynamically based on demand
- Automate minimum stay rules and restrictions
Mega events don’t come around every day. With the right strategies and tech, your hotel can be ready to make the most of the opportunity.
Find out how RoomPriceGenie’s Events Calendar helps hotels stay on top of events by automatically tracking market events.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
