Best practices for hotel room block management
Effective hotel room block management will ensure that your event attendees can easily book a place to stay. It can also help your event organization team manage costs and avoid penalties from your partner hotels. Whether you’re planning a conference, corporate retreat, or member event, securing the right number of hotel rooms and managing them strategically can have a positive impact on your event registrations and ROI.
Here are the best practices you can use for managing hotel room blocks throughout the entire event lifecycle, from initial booking to post-event review.
- Understand what room blocks are
- Start with a clear room block strategy
- Use technology for room block management
- Negotiate flexible contracts with your hotels
- Manage room block pick-up rates and monitor progress
- Communicate clearly with attendees
- Optimize room release
- Conduct post-event review and future planning
Understand what room blocks are
What are hotel room blocks? They are a reserved number of rooms that have been set aside for a particular group or event. Event planners can often secure them at a discounted rate because they will bring a large number of visitors to the hotel.
Staying aware of deadlines is essential for effective hotel room block management. Once rooms are booked, you need to monitor occupancy and adjust the block size as necessary. You can release any unbooked rooms so that they are available to others before any penalties apply.
When it comes to negotiating event accommodation, it’s also important to understand the different hotel room block structures you can ask for to suit your needs.
Guaranteed room block
In a guaranteed room block, the event organizer commits to filling a certain number of rooms and takes financial responsibility for any that aren’t sold or booked. This type of block works well when you’re planning an event and have high confidence in its attendance. You’re sure that most of the rooms will be occupied and are willing to take on financial risk to secure them.
Courtesy room block
A courtesy room block allows you to reserve a set number of rooms without having a financial commitment to fill them. If you don’t book all the rooms, you’re not financially reliable. This makes them ideal for events where attendance is unpredictable. Since they are offered as a ‘courtesy’, the number of rooms offered may be smaller than in other types.
Attrition-based room block
Attrition-based blocks provide some flexibility by allowing a portion of unbooked rooms to be released without penalty. Attrition clauses specify the percentage of rooms that must be filled, with the planner responsible for a percentage of any unbooked rooms. This option works well for medium-to-large events, where some uncertainty in attendance is expected.
Start with a clear room block strategy
A well-planned room block strategy starts with an informed estimate of how many rooms your event will need. You can analyze data from previous events to determine the expected attendance and accommodation requirements of your guests.
Use historical data
Review attendance data from past events to gain insights for your strategy. You can collect information such as the number of rooms typically booked by attendees, the minimum and maximum amount of nights stayed, and the percentage of local versus out-of-town attendees.
Consider event size and target audience
The number of rooms you will require will vary depending on the type of event you are hosting and where guests are traveling from. For example, a national conference with many out-of-town attendees will need more rooms than a local seminar. Knowing your audience helps you to predict room demand, avoid overcommitting, reduce the risk of financial penalties, and cater to attendees.
Use technology for room block management
Event management platforms, like EventsAir, make room block management much more efficient. EventsAir includes an Accommodation Module with tools designed to streamline room block setup, handle bookings, monitor progress, release rooms, and communicate with attendees.
Set up your room blocks
Using the Accommodation Module, you can set up and manage room blocks with ease. Set your parameters for each block type, control room releases, and customize rates. This reduces the back-and-forth communication with the hotel and simplifies the booking process for attendees.
You can also create a library of hotels that you like to work with so you don’t have to reinvent the wheel for every event. Credit card vaults and financial gateways also make it easy for your guests to finalize their booking in an instant.
Placing inventory limits on the number of available rooms, minimum and maximum nights of stay, room rates, and discount codes will also keep your hotel manager and attendees satisfied.
Integrate with your event registration platform
Integrating room block management with your event registration platform ensures a streamlined experience for attendees and reduces the chance of errors occurring. Using EventsAir, you can empower attendees to book rooms while registering for the event and self-manage changes. The platform can also collect and store all of their inbound and outbound transfer information so you can assist them in their travels.
You can even use page logic so that you only show certain hotels or blocks to different types of guests. Automated communication updates will also reduce the amount of manual work you need to do to ensure that your attendees arrive at the hotel with ease.
Set up a group accommodation portal
If you want to sell more rooms, then create a Group Accommodation Portal that allows group leaders to manage and register group accommodation bookings. This will allow you to sell multiple rooms at a time.
Negotiate flexible contracts with your hotels
Securing flexible terms with your hotel partners will reduce your risk when securing room blocks. Negotiate clear terms relating to cancellation, attrition, and release policies. This ensures everyone understands their obligations and can prevent unexpected costs.
Cancellation and attrition policies
The cancellation terms should outline any penalties for reducing the block size or canceling rooms. On the other hand, attrition policies specify the minimum occupancy level the organizer is responsible for. Try to allow some flexibility in case attendance is lower than anticipated and negotiate these policies upfront.
Room release dates (cut-off dates)
Setting a clear cut-off date for room releases is essential. The cut-off date is often two to four weeks before the event and is when any unbooked rooms will be released back into the hotel’s inventory. Setting this date helps to reduce your liability for unused rooms and gives the hotel time to rebook them if required.
During a period of high booking demand, you might try to negotiate clauses that help protect room availability. By setting realistic expectations with hotels, you can avoid financial penalties and ensure a smooth block room management experience.
Manage room block pick-up rates and monitor progress
A room block pick-up rate is the rate at which rooms are being booked. You should regularly track this rate and occupancy levels to make timely adjustments to the size of your block and avoid unexpected costs.
Track occupancy rates
Monitoring occupancy rates tells you how well the room block is performing. Check on this number weekly or bi-weekly so that you can decide whether or not to secure additional rooms or release them. These rates will also help you understand attendee booking patterns, which can inform your room block strategies and negotiations for future events.
Adjust block size before cut-off dates
Keep a close eye on your cut-off dates to make sure that you are adjusting the block size in a timely way. This will help you save money on unfilled rooms and avoid unnecessary costs.
Communicate clearly with attendees
Strong communication will ensure that your attendees understand the benefits of booking within the room block and are aware of any important deadlines.
Highlight room block benefits
Make sure attendees can read the advantages of booking within the hotel room block on your registration page. You could promote discounted rates, convenience, and networking opportunities with other attendees to encourage attendees to secure rooms early.
Remind attendees about deadlines
Include reminders about room block booking deadlines in your event emails, website updates, and registration confirmations. This ensures that attendees don’t miss the cut-off date and helps to maximize block occupancy.
Optimize room release
Releasing unused rooms at the right time is essential to avoiding penalties while accommodating booking demand.
Timely room releases
When the cut-off date approaches, you should evaluate the remaining room inventory and release any unsold rooms back to the hotel. Using EventsAir, you can release a set number of rooms or a percentage of unbooked rooms.
Adjust releases based on pick-up rates and event trends
It’s a good idea to review any historical data you have on attendee booking patterns. Combining these insights with current pick-up rates, you can choose whether to extend the block, secure additional rooms, or start making releases.
Conduct post-event review and future planning
After your event, you can conduct a post-event review to figure out how you will manage and negotiate future blocks. These learnings will help you better understand attendee preferences, contract terms, and room demand patterns going forward. You could also run post-event surveys to find out how attendees found their booking and accommodation experience. This will help you identify what worked well and what could be improved to avoid penalties in the future. Most importantly, it will help you select the right hotel and block size to enhance the future attendee experience.
Effective hotel room block management
A great hotel room block management strategy requires a combination of data analysis, planning, and communication. By understanding the types of room blocks, how they work, previous booking patterns, and contract terms, you can create a seamless accommodation experience for your attendees.
In addition, with the right event management technology in place, you can manage hotel room blocks with confidence and ease, all the while maximizing your event profitability.
EventsAir is an event management platform that can help you manage hotel room blocks and provide a great experience for your attendees. If you’re ready to take your event planning to the next level, request a demo or find a plan that suits your needs.