GROUP

RESERVATION
TRAINING
GRANGE HOTELS
January 2014

The Value of Group

Bookings
Groups are a high revenue source
Individual booking
Group booking

Longer LOS than individuals (typically)

Economies of scale

Assess the value of a group booking

Group booking value

Opportunity

costs
Can we sell these rooms

on these dates at higher

rates and lower cost?
RATE
x
NO.NIGHTS
X
NO.ROOMS
_______________

REVENUE

Can we sell shoulder

dates?
Will we upset a loyal

client/booker if we refuse
this booking?

Dates
Source
Number of rooms
Block/ Allocation
Budget/Rate
Cancellation policy / allocation release

schedule
Group booking with MICE

I. Dates
Peak or Trough?

WEEK

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Dates
Peak or Trough?

MONTHS

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Comment on
(based on dates, disregard all else)
Arrival
Arrival
Arrival
Arrival
Arrival
Arrival
Arrival
Arrival

on Tuesday: 1 night
on Tuesday: 2 nights
Monday: 4 nights
Tuesday: 3 nights
Saturday: 2 nights
Thursday: 3 nights
Thursday: 2nights
Friday: 2 nights

II. SOURCE
Who is calling?
Contracted or non-contracted source?
Regular booker/client?
Commissionable or non-commissionable

source?

II. Source
PROS

CONS

CONTRACTED
CORPORATE

Loyal, consistent
production during
year

Fixed, non-negotiable
rate (sometimes
lower than target)
Often commissionable
through agent

NON COTRACTED
CORPORATE

Potential to build
relationship

CONTRACTED FIT

No commission

NON CONTRACTED
FIT

No commission,
potential to build
relationship
Rate can be
negotiated

Fixed, often nonnegotiable rate (often

lower than target)

Comment on...
(considering the nature of the source AND
dates/days of the week, disregard all else)
Tuesday - 1n booking: regular corporate client
Monday 2 nights: regular corporate client
Thursday 1 night: FIT agent
August: OTA group
Thursday 3 nights: FIT agent
Tuesday 1 night: New corporate client

III. Number of Rooms

Always consider in view of LOS
Max number of rooms per single block: 50%

of inventory
Do not jeopardise shoulder days without good
reason
Do not offer exclusive use unless checking
with your Manager

Comment on
Large block short duration

e.g. Tue 1n or Sat 1n

Large block long duration
Small block short duration
Small block long duration

IV. Block or Allocation

Block
a.
b.
c.
d.

Single source of booking details

Rooming list provided by agent/client
Often single payer
All/ most clients will stay on the same dates

Allocation
e. Clients book individually on dates/terms/rates agreed by

booker
f. Clients guarantee and pay for their bookings individually
g. Few clients will stay on all dates. Assume most will stay
on busier dates. Typically bookers negotiate rates for
longer period

Comment on.
Allocation Sunday Wednesday
Allocation Monday Thursday
Allocation Monday Wednesday
Allocation Tuesday - Friday
Allocation Friday & Saturday
Block: Sunday Tuesday

V. Commission
Establish from the onset if the agent requires

commission
Sometimes FIT agents request

commissionable rates
Often Direct Corporate client ask agents to

handle their groups due to the complicated

nature of the bookings

VI. Budget and Rate

Offer
Is there a contracted rate in place?
If not, what is the budget?
How flexible is the budget?
Has the client had any other competitor

offers?
What is our ARR target?
What is our historical ARR & occupancy on the
corresponding dates LY?

Cancellation policy and Allocation

Release
Cancellation policy

Allocation Release

Standard 30 days with

flexibility
Non standard

Standard 30 days
Non standard

Small Blocks shorter release Small Allocations shorter

Large Blocks longer release
Always consider requests
for additional flexibility

Also consider whether you

can resell these rooms if
released

release: 21,14,7 days

Large Blocks longer release

Flexibility: offer to hold a small

number of rooms closer to the
date but consider whether
you can resell if necessary.

Groups with MICE

Consider the revenue we would get from the

event.
Consider the budget for the whole event
Avoid quoting different rates for different room

types
Include breakfast
24 hr rate vs. DDR

Conclusion
Be ATTENTIVE to the bookers requirements.
Be FLEXIBLE.
Be AWARE of your hotels demand patterns, past
performance and targets.
Respond PROMPTLY to every group enquiry