March 10, 2012

Banquet, Conference and Group - Revenue Management

After last week release on ancillary Spa revenue management, the topic of the week is Banquet, Conference and Group Revenue Maximization. Are you already optimizing your revenues and profits of your function space? This topic concerns quoting the right price to the right customer at the right time for the right function space (Meetings, cocktail, receptions, weddings, MICE, product launch, gala diner...).

All Independent Hotels should look into their massive ballrooms, foyers and breakout rooms square foot to think out of the box, and drive additional profits. Don't leave money on the table.

What does Function Space yielding consist of?
Function space occupancy is not easy to calculate because a single room can be divided and the appropriate time unit must be determined. As opposed to spa who based in occupancy unit based on per hour basis, we will recommend function space to calculate by day part. The number of day part per day vary from hotel to hotel, but it is related to the number of times each day that a function space can be sold (Rotation).

- Define a revenue management strategy,
- Take ownership of the function space data behaviors,
- Which statistics is the most useful to analyze data?

How can I build interesting reports and statistics?
It is important to attribute market segments for each type of function activities, so you can ensure a minimal tracking for revenues. The revenues could be cross data with your day parts in a more sophisticated progress.

- Develop a banquet demand calendar (Weddings, Social Gatherings, Corporate Meeting, MICE Meeting....)
- Build meeting rooms turn-aways statistics,
- Align your room forecast with your a function space forecast

How can I possibly implement dynamic pricing on function space?
Your function space cannot be priced without considering the effects on room sales and food and beverage. A price that may be too low for the function space when considered alone may be more than compensated for when room and food and beverage are considered.

- Calculate a pricing per square meter,
- Introduce dynamic tiers/bar pricing to banquet and meeting space,
- Apply inventory restrictions and pricing conditions,

Shall profitability ratios evaluate during my decision process?
- Implement a RevPAS calculation (Revenue per available square meter)

This is the just the first release of our Banquet, Conference and Groups. More posts will follow on that subjects.

Romain @ RSVP - Hospitality

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