Increase Group Bookings With These Simple Tips (No Rocket Science)

Managing a hotel is like keeping nose to the grindstone. A hotelier needs to make several decisions for a smoother property functioning.  

Group booking is one such aspect of hotel management that needs some extra attention. After all, it plays an important role in a hotel’s overall revenue apart from individual bookings. 

While many hotels successfully master the art of driving group bookings, many tend to get off on the wrong foot.

And that’s completely understandable. It’s no easy feat!

So, I decided to write something on this topic. In this blog, I am going to talk about the nuts and bolts of group bookings.

And yes, like I always say, let’s start from the basics.

What Are the Types of Group Bookings?

The term “group booking” itself says what it is. But do we know the types?

Group bookings can be divided into two categories – personal bookings and corporate bookings. 

Personal bookings are usually the ones booked by families or a group of friends.

For example: Remember that Mussoorie trip story from one of my previous blogs? It is a perfect example of group bookings. My friends and I didn’t make any individual booking. Rather, we reached out to a travel agent for a group reservation. It was basically a package that included stay, meals, and activities. 

Well, that’s not all. Personal group bookings could also range from wedding or anniversary parties to reunions to social events, etc. Here, people are inclined towards relaxing and spending time with their loved ones.

But on the other hand, corporate bookings are made by businesses and involve a variety of conditions.

For example: There’s a 2-day business conference in hotel ABC’s banquet and different companies are going to be a part of this event. So, what these companies will do is they’ll book a number of rooms for their employees who are going to attend the event. 

Further, there are always certain packages available for corporates. Guests can avail the services under that package and the bill gets transferred to the company for settlement. Meaning, guests don’t have to spend a single penny from their pocket.

On top of that, there’s one more type of corporate booking where a company allots a certain amount of money and services for each employee. So, if the employee (the guest, basically) avails additional services or exhausts the allotted amount, then s/he has to pay for the extras from their pocket.

These are just two examples of group booking and conditions which may vary from hotel to hotel.

But have you wondered why hotels double down on these sorts of bookings? Or, why SHOULD they focus on it? Or how to increase group bookings at your hotel?

We will talk about all of these in this blog. 

Why Should Hotels Emphasize on Group Bookings?

Just like individual bookings, group booking also presents hotels with a lot of benefits. And over the years, the demand for group booking has increased significantly.

And why not? 

Group bookings are a win-win for both guests and hotels. They provide hotels with better ROI and guests with all the services under one umbrella. 

Let me be more precise and list down the benefits of group bookings for hotels.

• Group bookings are a single buy decision, so you don’t have to make additional efforts for every single guest. It all comes under one package.
• They provide you with opportunities to upsell and cross-sell. For example, if there’s an event happening, people might want to upgrade their room or grab a drink or spend a day more to relax. 
• You witness a lower cancellation rate. Why? Because, people are less likely to cancel a sponsored stay or event.
• Repeat business is another great advantage that group bookings present. When you partner with a company or an agent, they are more likely to come back to you for future stays.
• Group reservations (especially the corporate ones) are packaged strategically to bring in more ROI. So, even if a room or two is empty at your property, this isn’t a big deal considering the cash you’re getting from group reservation.

7 Ways to Increase Group Bookings at Your Hotel

So far, we’ve learned the types of group bookings and the benefits they present. Now, let’s address the most asked question – How to get more group booking at your hotel?

To be honest, there’s no rocket science behind it. Most probably, you already know about it but still, consider the following points (maybe as a reminder).

And if you’re new to the group reservation segment, then it’s definitely going to help you get started on how to increase group bookings.

So, without further ado, let’s jump into it.

#1 Understand your audience and market trends

I know this might sound really cliched but you just can’t overlook it. I cannot emphasize enough how important it is to understand the customer base you want to cater to if you want to maximize group bookings.

When you go about it, start by understanding your hotel. Meaning, see what all amenities you have at your property and what kind of guests are the best fit for them.

For example: You have a conference hall, high-speed internet, workspace etc. as amenities. So, corporates should be an ideal target segment for you.

Further, try to look into the market (by which, I also mean your competitors) and identify what sort of trends are going on, how other hotels are doing it, and so on.

This will give you an idea of how to prepare your hotel and increase group bookings.

Simply put, you have to do a proper gap analysis.

#2 Optimize your hotel distribution

When I am saying optimize your hotel distribution, I mean much more than just getting listed on OTAs or other portals.

OTAs will definitely give you a good opportunity to market your hotel, but you still need a much more robust strategy.

One of the best ways to do this is by partnering with other businesses and brick and mortar travel agents. When you tie up with these folks, you not only save on high commission but also drive in more reservations. After all, it’s all about creating channels and the more you connect with others.

Moreover, you can also create your own channel where corporates, agents, and even individuals can make group bookings. This is mostly overlooked by a majority of hotels. But if done right, it can do wonders!

#3 Work In collaboration with Convention and Visitors Bureaus (CVBs)

A convention and visitors bureau (CVB) is a destination marketing organization. CVBs are basically non-profit and provide the hospitality and tourism industry (mostly travelling public and journalists) with information, resources, and support.

So, make sure you work in collaboration with them. Educate them about your hotel, tell them how you contribute to the industry and form a healthy relationship. When you do so, they are more likely to recommend your property. And not to mention, you don’t have to pay anything extra for the leads.

#4 Design effective packages

Packages play a crucial role in getting more group bookings to your property. The better packages you have, the likely you are to land reservations.

Also, your packages have to be appealing not only to your guests but also to the travel agents.

Further, you have to keep in mind that unlike regular bookings, the room tariff will be unchanged for a longer period in group bookings. So, make sure your packages are curated in a way that doesn’t lower the RevPAR during any season.

#5 Refine your lead generation & management strategies

It is really important to understand that to attract high volumes of leads, you have to focus on your lead management and generation aspect

First, you need to determine who your potential buyers are and what their personas are. And the next thing is, identify where they are hanging out (meaning, the right places for lead generation).

Simply put, from demographics to behaviour to lead source, you have to consider everything for better lead generation.

Now, when we talk about refining lead management, lead scoring is a key. It is the process to determine the lead’s potential interest in your product or service. Simply put, the higher the score, the more qualified the lead.

However, even though it sounds easy enough, lead scoring can become complicated. Therefore, spend a significant amount of time to create a killer lead scoring model.

• Look at your hotel’s unique attributes — be it the customer base or sales cycle
• Figure out what is the hardest parts of your current lead scoring model
• Identify leads who are sales-ready
• Test your model in real-world scenarios for more reliable results
•  And always be ready for tweaks and improvements

#6 Host days-long corporate events

Events and conferences are a great way to drive more group reservations. Be it a wedding or a corporate event, this definitely gives you a great opportunity to generate more revenue.

For example: Your hotel offers space for weddings. And when you host weddings with multiple ceremonies and programs, people are likely to book their stay with you. Even though it all comes under the entire package you sell, there’s something more to it. However, sometimes the number of guests exceed and you can take this opportunity to sell more rooms.

#7 Incorporate a robust hotel management system

This might not directly help you increase group bookings, but it definitely plays a vital role.

Invest in a robust hotel PMS that also facilitates the option of managing group bookings. When you work with group reservations, you do not want any discrepancies. And a hotel PMS ensures just that.

It works as the nerve centre of hotel operations and makes your end-to-end hotel operations seamless. As a result, you witness better hotel staff coordination and improved guest experience.

What do Group Bookers Expect from Hotels?

This is another point that I want to address. While you have learned about the strategies to drive more group bookings, now let’s understand what group bookers expect from a hotel.

The expectations for personal and corporate bookings are different. I have already mentioned what corporates would look for. So, here I will talk about personal group booking expectations.

Let me put this from my experience.

When my friends and I were travelling to Mussoorie, this what we all expected:

• As we were more than 7 guys, we wanted to have at least one room for free (considering the amount we paid). Simply put, we wanted some sort of discount or something complimentary.
• We were also concerned about the type of group activities. As we all loved adventure, we wanted to go trekking and fortunately, the hotel did offer such activity.
• Apart from that, when we were booking our vacation with the travel agent while booking, we asked him to book with a hotel that could offer airport pick up and drop.
• And there were a few more things involved. Some were fulfilled and some we had let go of (but never mind).

Now, when we talk generally, it all boils to the hotel’s understanding of its target guests. It is really important that the hotel is prepared fully for its target guests and their preferences. The better offerings they have, the more group bookings they are going to get. 

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