Landing group business can feel elusive, especially for independent hotels and small to medium-size hotel groups that lack the brand recognition of large hotels and chains.
It can also feel personal. Why did that group choose the property across the street instead of yours?
To help you win more of this valuable business, we’ve put together seven proven steps to create standout group proposals.
Want to attract more groups? Check out 7 Ways for Hotels to Capture Profitable Group Business.
1. Listen Carefully to the Group Organizer’s Needs
In the rush to reply quickly, sometimes we might miss the mark on details that matter. Whether the inquiry arrives by RFP (request for proposal), email, or phone, take the time to understand:
- The purpose of travel. Is it a wedding, corporate event, tour group, or sports team? Each group type will have special needs of its own.
- The stay pattern. What are the arrival and departure dates? Are they flexible?
- The group’s needs. How many rooms per night? Will they need meals, parking, meeting space, event space, or other services?
2. Ask the Right Questions
If information is missing, don’t guess or make assumptions. Confirm the details with the organizer to avoid submitting an irrelevant proposal.
Helpful questions include:
- Booking source. How did they find you? Are they considering other properties?
- Stay pattern. Are the dates fixed? Are arrivals and departures staggered?
- Room types. Is it a run-of-house (ROH) request, or are specific rooms/suites required?
- Budget. Do they have a set range or flexibility
- Agreement terms. Are they comfortable with your standard cancellation and cut-off policies?
3. Do Background Research
A little detective work can go a long way. Take the time to understand who you’re dealing with to anticipate needs and tailor your offer.
- Google the organization. Beyond the basics, look for extra details that might help you wow them (like their mission statement or organizer bios), as well as red flags (like payment issues or poor conduct at previous venues).
- Ask for references. If they’ve booked group blocks at other hotels, ask if they’re willing to provide contact details. Most reputable organizers won’t mind.
- Talk to industry partners. If the group is working with your local DMO, CVB, or event planners, reach out. They can often provide insider knowledge or even help you coordinate a fantastic group experience.
4. Work As a Team
It takes a village to build a winning group proposal. Whether you run a cozy independent boutique or a small hotel group, ask for input from key team members.
- Sales manager: Usually the group’s main contact and the person steering the proposal process.
- General manager: The big-picture thinker, making sure the group fits with your business goals.
- Revenue manager: Monitors demand patterns and group behaviors (like lost business and cancellations) to help you set the ideal rate and terms.
- Operations manager: Can confirm you have the staff and resources to deliver the wow factor when the group arrives.
5. Quote the Right Rate
Deciding group pricing is one of the trickiest aspects of hotel revenue management. Go too low and you risk leaving money on the table. Go too high and the group may look elsewhere.
Here’s how to find balance:
- Check the forecast. Are you expecting high occupancy over the group’s dates or will you have lots of unsold rooms? Let demand guide your pricing decisions.
- Perform a displacement analysis. Compare the group’s potential revenue to what you could earn from regular bookings. If transient revenue is higher, consider declining or revising your offer.
- Be prepared for negotiation (but don’t assume you’ll get the chance). If you can’t adjust rates, consider offering complimentary rooms, room upgrades, extended cut-off dates, or complimentary meeting space.
Need help deciding if a group booking is worth it? Learn how to perform a hotel revenue displacement analysis.
6. Use a Group Displacement Calculator
Some hotels have fixed group rates or rely on instinct, but that’s just asking to miss out on revenue. Conditions change fast, and your pricing should reflect current demand.
An automated revenue management solution like RoomPriceGenie uses market data, booking pace, and historical trends to recommend competitive rates.
Soon, we will also launch a Group Displacement Calculator to make the process even easier. Just enter the group details, and it suggests an optimal rate that maximizes revenue while keeping you competitive.
Wondering if you should take a group or hold out for transient bookings? Read Group or Transient? Solving the Great Dilemma.
7. Highlight Why You’re the Best Choice
When creating your proposal, use a template to ensure efficiency and consistency, but be sure to tailor it to the group’s specific needs.
Here are a few areas to focus on:
- Experience. Have you hosted similar groups? Include examples and testimonials.
- Amenities. Mention key onsite features that may appeal to the group like event spaces, spa, pool, or a popular dining spot.
- Location. How close are you to attractions, venues, or transport links the group will use?
- Awards and guest ratings. Include any industry recognition or strong guest ratings on Tripadvisor and Google.
- Your brand promise. Whether it’s service excellence, sustainability, or comfort, show how your hotel stands out.
- The team. Introduce the key contacts who will ensure a smooth stay for the group.
Now You’re Ready to Submit
Before you press send, ask colleagues to proofread the proposal. Request a reply from the organizer by a certain deadline and follow up at the right time.
Not every inquiry will convert, but by following these steps you’ll increase your success rate while protecting your revenue.
Most importantly, you’ll position your hotel as professional and easy to work with, helping ensure they will remember you next time.
Want to simplify your group pricing process? Ask our Genies about the Group Displacement Calculator.
To learn how RoomPriceGenie can help your property increase your property’s profitability, start your free trial of our automated pricing solution today!
