Investigating demand for hotel Meeting & Events
If Hamlet was a modern day strategic hotel Meeting & Events manager I’m sure this would have been the question troubling his mind.
“To sell or to hold: that is the question;
Whether ‘tis nobler in the mind to suffer
The slings and arrows of lost potential revenue,
or to take arms against this sea of troubles”- Hamlet (for 85%)
Why it’s sometimes better to hold inventory?
Many of us were brought up with the old saying: “a bird in the hand is worth two in the bush”. This saying perfectly meets our aversion of taking risk.
But would we not rather catch a turkey and have mercy on a pigeon if we only have space for one bird in our backpacks? I know I would.
In hotel Meeting & Events we want meeting rooms and function spaces occupied by the groups that are most profitable for our hotels, turkeys. This is often not the first group that inquires. There are certain aspects to keep in mind when strategically investigating the inquiries in front of you:
Is this an inquiry for a high or low demand period?
Does the size of the inquiry fit my available spaces?
Is this a residential or non-residential group?
What is the length of stay?
In high demand periods you want to fill your hotel with turkeys, so it’s in the hotel’s best interest not to settle for pigeons. It’s actually quite simple: you want to accept the group with the highest total revenue. Often this is a group that inquires for both function rooms and bedrooms, a group that will stay for multiple nights, a group that fits the available function spaces perfectly. It ticks all the required boxes!
To examine demand you have two options:
The option you choose depends on the lead time* of the inquiry. If you have a request for a period that is still far out in the future, historic data will give you the most trustworthy insights. I would recommend taking a look at demand the same period last year. Do keep in mind ad hoc or returning special events as they disrupt demand excessively. You want to know about these events before your potential guests start inquiring.
Looking at a request with a shorter lead time you can trust data that is already in your system for that exact date.
Tracking demand with Get Into More
Keeping track of demand for both historic, current and future periods is quite a challenge. Because we want you to focus on strategical management we take care of the analytics. We added a demand calendar to the Get Into More tool. This demand calendar is a heat map that shows you at a glance the high demand periods in your hotel. We are sure you’ll love it.
* Lead time: This is an interesting subject in predicting future demand. Please let me know if you would like me to write about the strategic strength of this parameter in a future article.