Dear WuBookers, hotels and properties are increasingly less just places to stay overnight, and more and more genuine centres of wellbeing and entertainment, capable of actively contributing to the holiday experience, and beyond. One of the most effective ways to capitalize on this trend, and boost revenue, is through events. Depending on their type, in fact, hotel events attract tourists and engage guests, even drawing in local residents. Let’s explore all their benefits together and how to get the most out of events held on your property.

Not all hotel events are the same: types and characteristics

Hotel events can take many forms. There are conferences, tastings, themed evenings, wedding receptions and so on. There are many options, but generally speaking, it is possible to distinguish two main types: events organised by the hotel itself and those requested by guests or other external clients.

Events organised by the hotel: pros and cons

These events are proposed and promoted directly by the hotelier and include food and wine experiences, yoga classes and sports courses, concerts, meetings and book clubs, and similar activities. The audience is usually a mix of hotel guests, travellers not staying at the property, and local residents.

The main advantage of this activity is that it can help to increase room occupancy even during the low season, especially if the event is organised in collaboration with prominent figures who have a loyal following. But that is not the only benefit. Among the other positive effects is the opportunity to raise the property’s profile through word of mouth and social media visibility generated by participants. If the event is a regular fixture, it can build guest loyalty; whilst a varied and rich programme can attract casual walk-ins and local residents, thereby transforming the property into a community hub throughout the year.

Of course, events of this kind require, in addition to practical commitment, a certain level of logistical capability (the venues must be equipped and suitable for concerts, classes, exhibitions, etc.); a good network of contacts and local partnerships; and a diversified, multi-platform communication strategy (not all potential customers look for information via the same channel!). On the other hand, they offer alternative sources of income to room sales and can be used as an included perk or extra to differentiate rates.

Events organised by external clients: advantages and considerations

This second category includes all those events that the hotel decides to host but without being the main organiser. These may include, for example, meetings and conferences, usually linked to MICE tourism; or ceremonies, association meetings, gatherings and other celebrations organised by so-called SMERF groups; or, finally, private parties, courses and workshops. In this case, therefore, the audience will be more select and homogeneous, but also more motivated and reliable. Indeed, these events often involve overnight stays at the property, thus providing a double source of revenue for the host. Furthermore, when managed by external planners, they can provide an opportunity to raise the property’s profile and establish contacts with agencies and specialist organisations that generate regular business.

To remain competitive and attractive, however, it is essential to ensure that venues and facilities are always impeccable and can be customized as required. The price must also be adaptable to this client segment, which typically seeks functional solutions at affordable prices, given the significant number of attendees.

Why choose to host an event at a hotel?

Whatever the type of event, hosting it within a hotel can prove to be strategic and profitable. Here, in summary, are the main reasons why it is worth considering this opportunity:

• make the most of every inch of the property, such as conference rooms, outdoor spaces, the breakfast room and the restaurant area: when they are not in use, they remain idle: so why not take the opportunity to make them even more productive?
• you raise your profile beyond your usual catchment area and can reach different audiences, not only amongst guests but also within the local community;
• you diversify your revenue streams, thereby offsetting any periods of falling demand;
• you create fruitful partnerships, both with specialist agencies and event planners, and with other professionals who can help you organise bespoke events;
• you stand out from the competition and increase the perceived value of your hotel compared to others.

How to maximise event revenue

It all seems simple and straightforward, but how can you ensure that events really do generate more revenue than day-to-day operations, and how can you maximize that revenue?

There are certain strategic levers which, if applied methodically, can transform every event into a genuine opportunity for profit.

Setting prices ‘smartly’

Pricing strategy is crucial to ensure you don’t miss out on good revenue opportunities, even when it comes to events. For those organised by third parties (corporate meetings, weddings, conferences) it is essential to assess whether the revenue generated by a group is actually higher than what you would earn by selling the same rooms to individual guests on the same dates. A group rate that is attractive to the customer may, in fact, prove disadvantageous for the property if, during the same period, demand from individual travellers is particularly high. Obviously, this assessment must be made by taking into account all the cash flows generated: not only the rooms, but also food and drink, the use of spaces and ancillary services.

For events organised by the hotelier, however, the event itself should generate additional demand, so it is possible to apply so-called dynamic pricing. For example, higher rates could be offered on the days of the event and adjusted in real time depending on how sales are going and how the market is behaving.

Creating packages to maximise revenue streams

An event does not merely generate revenue from venue hire or ticket sales; it offers the opportunity to tap into multiple revenue streams simultaneously.

One way to achieve this is through themed packages – for example, “event + overnight stay + extra service/experience” – which increase the average spend per guest and simplify the reservation process, whilst also enhancing the perception of value.

In addition to this, it is advisable to implement a structured upselling and cross-selling system, both before and during the event: through pre-arrival emails with personalised offers, trained staff to suggest upgrades or additional experiences, and digital tools that promote the property’s services effectively yet unobtrusively.

Building continuity through event planners, local partnerships and corporate clients

Hosting a single reception is not enough; to build continuity, it is necessary to work on partnerships and on building loyalty amongst event organisers in a professional manner. Promoting your hotel to a specialist audience, attending trade fairs, and effectively showcasing this activity on your own channels are all essential steps for building relationships of trust with event agencies, professional planners and local businesses. Doing so will generate a steady flow of occupancy, ideally concentrated on weekdays or during the low season, when individual demand is typically low.

Monitoring results using performance KPIs

Finally, it is essential to monitor results to confirm what is working and to resolve any critical issues or shortcomings. A thorough analysis of results involves both quantitative measurement and qualitative assessment.

Among the most useful numerical indicators is undoubtedly the RevPAR for the days of the event, compared with the average for the preceding period or the same period last year, to measure its impact on occupancy. TRevPAR (Total Revenue Per Available Room) is also useful as it includes ancillary revenue and provides a more comprehensive picture of profitability during the event. Participant satisfaction is another key element in gaining a complete picture and can be gauged using ad hoc satisfaction surveys.

Apart from all this, the venues, equipment and staff on hand must be appropriate for the event and the number of participants, and the entire organisation must run as smoothly and efficiently as possible to avoid any unpleasant surprises. To achieve this, it is necessary to have the right technological support.

Zak (also) at the service of group reservations

For an independent hotel, it is difficult to sustain multiple software solutions financially and operationally. However powerful and comprehensive they may be, in fact, one does not always have the time, energy or resources to adopt and use them all. It is easier, however, to find a tool that incorporates all the essential functions in a simplified version, suitable even for those who are not tech-savvy or unsure whether to invest in more specialised solutions. In this scenario, a PMS for hotels and properties can be of great help, especially if it’s Zak by WuBook: the all-in-one hotel management software that meets all the key needs of operators on a single platform.

When it comes to events and groups, Zak allows you to manage every aspect promptly and accurately. For example, it allows you to create group reservations and set different occupancy rates for each room. And there’s no need to be physically present at the property to do so: to further streamline the process remotely, the hotelier can provide a link to the booking system (Booking Engine) integrated into the group leader’s account and let the group members book the rooms themselves, according to their preferences.

Furthermore, thanks to the Guest Page, you can collect participants’ details in advance, thereby speeding up check-in procedures at reception.

And what about managing ad hoc offers and promotions? No problem: simply provide the group with personalized discount codes which they can enter directly during the reservation process to view the reduced rate reserved for them.

Staying on the subject of administration, with Zak you can record payments, deposits, outstanding balances, accounting transactions and charges at the time of reservation: this makes it easy to keep a close eye on the financial situation and lighten the workload of the administrative staff.

All this applies to groups, but also to individual guests: so the hotelier isn’t forced to switch platforms, but can use a single system. In fact, just one system!