When a destination is chosen to host a huge event like a sporting competition, headline concert, or citywide conference, it’s a thrilling time. With smart revenue management, it can make a hotel’s year.
NB: This is an article from RoomPriceGenie, one of our Expert Partners
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This year alone, visitors will flock to northern Italy for the Winter Olympics, to cities across North America for the FIFA World Cup, and to Iceland, Spain, and Portugal to view the total solar eclipse – not to mention a huge line-up of global concert tours.
How can your hotel make the most of these opportunities? Here are five ways to prepare for mega events and maximize revenue.
1. Forecast Demand Early
Large-scale events are often confirmed years ahead of time, well before your usual demand patterns are clear. That’s where a long-range forecast comes in.
Steps to get started include:
- Forecast regular demand. Look at past booking patterns to estimate the occupancy and average rate you could expect without the event.
- Check with the event organizer. Ask for attendance forecasts, schedules, and key venue locations.
- Estimate demand for your property. Factor in proximity to venues, transit access, historical event patterns, and market room supply (including short-term rentals).
- Map out stay patterns. Include pre-event nights (arrivals and setup), peak nights (event days), and post-event departures.
- Determine displacement. If the organizer requests a room block, this will help you decide how many rooms to commit (if any) and at what rates.
Your forecast won’t be perfect, and that’s okay. You can fine-tune it along the way as booking patterns become more apparent.
For Recurring Events, Look to the Past
Previous booking and stay patterns are often strong indicators for recurring events. In 2024, hotel rooms in prime viewing locations began filling up just weeks before the total solar eclipse, and rates soared. Looking ahead to this summer’s eclipse, traveler interest is already spiking, with search volume up triple digits, according to Hotels.com.
2. Price with Precision
Deciding what rates to charge so far in advance can be daunting. While you don’t want to be too cautious and leave money on the table, you also don’t want to be too aggressive and end up with empty rooms.
Here’s how to find the sweet spot:
