With operating costs getting more onerous, hoteliers are considering every possible revenue stream to greater extents.
High on the list is how to better measure potential upside from groups and meetings, incentives, conventions and expositions — or MICE — business. The demand segment has been steadily recovering in the past few years since its drop-off during the pandemic.
During a panel at the Hotel Industry Development Event, hoteliers said at the heart of the issue is gaining more consistency in data.
“Groups get put into the same category as MICE, but they might not have any events,” said Peter Heath, founder of business advisory Venue Performance. “Do calculations include delegate or day-by-day rates, beds, [food and beverage]? It is not only about how many people you can stuff in a guestroom.”
United Kingdom hotels have seen a 6% year-over-year increase in meetings and events business, Heath said.
“The industry talks about revenue per square meter. How about revenue per delegate?” he added.
Henri Wilmes, chief investment officer at hotel owner LRO Hospitality, agreed.
“That depends on asset and location. Is it a room factory, or not?” Wilmes said, adding that a lack of consistency adds to the difficulty of underwriting new hotel development or refinancing loans on existing hotels.
Michelle Walder, vice president of operations for Europe at Standard International, said with meetings and events becoming more important, there is a need to reevaluate hotel spaces again to increase revenue.
“We do [food and beverage] just as seriously as rooms. It is about 50% of our revenue, so you really need to invest in to get it right. The customer now wants more flexible spaces … [and] you need the operations logistics to make that happen. [Food and beverage] is difficult to keep in the eye of the guest and the attention of the press,” she said.
One of Standard International’s hotel brands is The Standard, which is known for its food and beverage and public-space events and offerings. Walder added The Standard has marketing, programming and music managers solely for its food-and-beverage offerings.
