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How Can You Increase Group Business Profitability?

Posted by Anna Ransom on Nov 9, 2015 9:30:39 AM
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You’re a busy sales manager in an organization with a high volume of leads. How do I know that? With an ear to the ground on industry happenings, we often hear that one of the biggest challenges faced by hospitality sales professionals is management of the high volume of incoming RFPs. How do you effectively review these RFPs, identify your highest value opportunities, and promptly respond to win the business?

What’s right for you?

Let’s take a step back. How many of those RFPs are ideal candidates for your venue? How many of them are smaller groups that should be fairly easy to respond to, win, and service but often times end up creating the same level of complexity and touch points as a higher valued RFP? When your small business opportunities require the same level of interaction as large business opportunities, you run the risk of experiencing profit erosion which impacts organizational performance.

What are the expectations of your potential customers?

Think about the brides that are calling for a group block during their wedding. Or travelling soccer teams that need a few night’s accommodations. Or the business assistant looking to reserve a boardroom. Or the professional planner with a last minute customer request for an executive meeting. These planners don’t have the time to follow through the traditional sales cycle model and wait (or hope) for a response. They want to know if you have availability, book the rooms or space, and move on to the next task on their list.

Changing the Paradigm

What if you shifted the model?  By providing these small event planners with access to select inventory, based on your business rules, how much of your sales team’s time could be freed up to focus on the higher revenue potential opportunities? Based on the volume of transactions that we see, an average of 35% of RFPs received by MeetingBroker-enabled properties in 2014 were for small groups. If you could free up your sales manager’s time by moving even half of this volume online, what impact would that mean for your business. Or, what about those planners who reached out by phone but you weren’t able to respond. Just offering them the online option will easily help you win more business.  Now, I’m not saying you should change your model to directly book all your business online, but offering another channel for planners to engage with you will surely offer new opportunities for growth.

Want to see how it works?

Newmarket will be offering a complimentary webinar on Wednesday, December 2, 2015 at 2pm ET to discuss the latest industry trends and what we are hearing from hospitality organizations. You are cordially invited to join us to learn more about the innovative new solutions available to help you address these trends and win more business.

Register Now

 

Topics: Sales & Catering