Group bookings for hotels: a comprehensive guide

Key takeaways

• Group bookings bundle multiple room reservations under one organizer which makes planning and billing easier.
• Groups can lift occupancy quickly and often boost ancillary revenue through events, food and beverage and add-on services.
• Corporate groups frequently book midweek, which helps smooth out slower demand periods.
• Clear room blocks, cutoff dates and payment terms reduce risk and last-minute churn.
• The right systems streamline rooming lists, payments and team coordination from booking to check-out.

Group bookings for hotels can represent a goldmine, as this type of reservation maximizes profitability by drastically increasing a hotel’s occupancy rate. Plus, the resources that are invested in acquiring a new reservation are compensated at a greater rate. Groups also often represent a good source of ancillary revenue, which we’ll discuss in detail later on.

In this article, we’ll also discuss how to prepare your hotel for business groups, how this type of travel group can benefit your hotel, and the strategies you should put into action in order to attract this kind of target audience.

What are group bookings for hotels?

A group booking is when a hotel blocks and sells multiple rooms to one organization or coordinator for the same set of dates. Instead of treating each stay as a separate reservation, the property manages them together so rates, rooming lists and billing stay organized.

Group bookings are common for conferences, corporate travel, weddings, sports teams, tour groups and other events. They can be valuable because they help fill rooms faster, improve forecasting and often lead to extra revenue from meeting space, food and beverage and other add-ons.

What are the benefits of group bookings for hotels?

Group bookings can help you fill rooms more efficiently and get more value from the time and budget you already spend to acquire guests. They also tend to bring in additional spend beyond the room rate.

Key benefits include:

• Lower acquisition effort per room since multiple reservations come through one organizer.
• More ancillary revenue from food and beverage, meeting or event space and other add-on services.
• Stronger midweek demand since corporate groups often book when occupancy is typically lower.
• Higher on property spend, especially with families and intergenerational groups who prefer the convenience of dining and services on site.

How to prepare your hotel for travel or business groups

Bigger groups will require more organization and a clear description of services, which is why it’s important to prepare your hotel for this type of booking. Let’s take a look at the different steps you can take to prepare.

1. Choose a reservation software that can handle group bookings

For starters, make sure that you have a reservation management software that’s designed to accommodate and optimize this kind of booking. Mews’ software allows your hotel and staff to effectively manage group bookings with smart automation features like rooming lists, tentative reservations, group billing, and bulk reservation updates. Having all this information in one place is key to preparing your hotel.

Learn about the benefits of rooming lists.

2. Design a list of services

The key to accommodating big groups is being organized. Design a list of services that you offer, whether that be food and beverage, meeting rooms, transportation, laundry, a dedicated concierge or banqueting; all of these services will help differentiate your hotel from the competition. Having these services established allows you to upsell, boosting ancillary revenue and increasing the average spend per booking.

3. Make it easy

When it comes to groups, the booking process needs to be easy, both for your hotel and for those reserving. Have a simple reservation process, allowing the travel planner to book online, and then make sure your staff are prepared to offer additional support when necessary. A direct booking engine on your website is a great way to make it easy.

4. Get ready for feedback

Once you’ve successfully implemented a strategy and prepared your hotel to receive this kind of booking, it’s important to have the tools in place to measure the results. Invite guests to fill out satisfaction surveys, find out where you can improve, and make sure to put into practice the suggestions for improvement. Feedback will help you offer the best service possible. 

You may also like:

• Benefits of managing online real time bookings
• Essential features of a hotel reservation management system

What are the best ways to attract group bookings?

Now that your hotel is prepared, it’s important to start thinking about how exactly you’re going to attract this type of booking. Let’s take a look at the best ways to do so. 

1. Create a communication strategy

When targeting a new group, it’s important to have a communication strategy in place. Start by benchmarking to see what the competition is doing to attract this segment, and determine how you can do it better. There are many elements to consider when designing a strategy, such as:

• How are you going to make the offer attractive on your communication channels? 
• What channels will you target them in? 
• What is your value proposition for this target audience? 
• What kind of messaging will you create, and what are the different touchpoints to connect with guests during the customer journey? 

Keeping all of these questions in mind, you can create a communication strategy that will help you stand out from the competition and encourage groups of guests to book with you.

Read more about marketing strategies to boost your bookings.

2. Have a solid distribution plan in place

It’s one thing to know how you are going to reach these guests through different communication channels, but it’s also important to have a clearly defined distribution plan. You will want to consider which kind of OTAs, travel agents, and companies are worth working with so that you can tailor your offer to the different channels. Make sure to also optimize your direct channel with an online booking engine. 

3. Create discounts

Everyone loves a good discount, so once you have decided where you are going to distribute your offer, think about what kinds of discounts you are going to provide for groups, and different packages and promotions that will make your offer more attractive than the competition’s.

4. Use SEM and SEO together to boost your results

Both paid search engine marketing (SEM) campaigns and organic search engine optimization (SEO) is key to getting your offer out there. SEM campaigns will attract people to book directly from your website, but be sure to make the campaigns more attractive with special discounts for booking directly. Target keywords that are more aimed at the bottom of the funnel, when guests are closer to their purchasing phase.

In terms of SEO, determine the keywords that you want to position for and create a solid organic strategy to make it happen. Create a series of SEO-optimized blog posts to reach the different group segments at each stage of the funnel, and make sure to promote them on social media. You may even consider partnerships and influencer marketing, which will also help with link-building efforts. 

Learn about the best hotel social media strategies.

Streamline group bookings with Mews

Group bookings can be one of the fastest ways to lift occupancy and unlock more on-property revenue, especially when your offer is clear, your process is organized and your team is ready to deliver. With the right strategy, groups can help smooth out low demand periods and drive year-round profitability across rooms, food and beverage and event services.

Mews helps you manage group bookings with less manual work by keeping reservations, room blocks, guest details and payments in one place, so teams stay aligned and guests get a smoother experience from planning to check-out.

Get a demo to simplify group bookings and delight your guests.

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FAQs: Group bookings for hotels

Why are group bookings valuable for hotels?

Groups can fill rooms efficiently and often drive extra revenue through food and beverage, meeting and event space and add-on services. They can also help strengthen demand during slower periods like weekdays.

How can hotels reduce risk with group bookings?

Use clear contracts, deposits or payment schedules, cutoff dates and cancellation terms. Internally, keep one source of truth for updates so sales, front desk and events are all working from the same information.

How can software help with group bookings?

Group booking tools help hotels manage room blocks, track pickup, keep guest details and rooming lists organized, and streamline payments and reporting. This reduces manual work and helps teams stay aligned from the initial booking through check-out.