In the current climate, hotel sales managers are negotiating a fractured landscape of seeking new business and group booking while nursing events still on the books that are susceptible to cancellation.
Sources said that even the events that remain, or a new booking, are likely to be very different. Hybrid events are here to stay, and with them comes a litany of complications about how to charge for components, such as F&B and audio-visual equipment, and how to maintain average daily rate, attendee rates and value-adds.
Ultimately, the challenge for sales managers is how to keep the money but give sufficient value in a new equation of fewer guests and attendees. Sources said revenue managers must not make assumptions as to where business is coming from.
Diego Fernández Pérez de Ponga, corporate director of revenue management for Palladium Hotel Group, said at the top of the to-do list is being flexible and tailor-made for clients. But he added his company’s policy for canceled events is to keep deposits, but those deposits can be used for a rescheduled date within the following 18 months.
“The most important (thing for) commercial leaders right now for being proactive in the market is to be flexible and safe, because safety has becoming one of the key decision points and it will be so over time. Unfortunately, conversion is still low, and all the market is focused more on 2021 than 2020,” he said.
Shona Whitehead, managing partner of business consultancy Cogent Blue, said it could take some time for group business to recover.
“The general hotel landscape is not yet reflecting a marked return of group, meetings and events business in the U.K. and Ireland,” she said. “In fact, some businesses are experiencing inquiry levels as low as around 10% versus the same time last year.”
Whitehead said that most interest is for 2021 and that at the top of her agenda is managing flexible terms and conditions, accommodating social distancing and being able to host hybrid events. She added hotels and brands are creating specific offers around these points.
“Even when all of these factors can be met, inquiries are not immediately converting into a booking with the stated and most likely reasons being the uncertainty of future government guidelines, fear of travel and budget constraints,” she said.
Sarah Williams, director of revenue-management consultancy TheRevManSpecialist and formerly a revenue manager at Interstate Hotels & Resorts, said her best advice is to chase the travel demand that is still out there.
“React to demand. There are opportunities, but what already has been missed?” she said.
One huge problem is that many revenue managers have not been able to see their hotels, some for months, Williams said. In such cases, the one person likely to be on-property is the GM, who will not understand the software, processes and relationships as well as the revenue-management team.
“GMs are exhausted,” she said. “They are trying to navigate systems but often do not know how to use it.”
But Williams admitted event organizers and associated third-party agents are not available at the moment due to company problems.
Long-term goals
Whitehead said sales teams must be proactive and explain to nervous clients how their events can work and still be successful.
