Let’s create an imaginary event to see all the ways that you could generate an extra $5.00 per room night on your hotel room blocks.
Let’s say that you have 1,000 attendees attending a 3-day event. On average, attendees stay for 2 nights resulting in 2,000 booked room nights. And let’s say that the average daily hotel rate is $200.00 per night. We can assume that 5% of guests will cancel their stay, resulting in 50 cancellations. Lastly, let’s say you’ve negotiated a standard 7% commission on all room nights; this puts your base revenue at $28,000.00. [(2000 room nights * $200.00/night) * 7% = $28,000.00).
An extra $5.00 per room night on 2,000 room nights equals $10,000.00. That’s a 35% increase in your event housing revenue – not bad! Ok, ready to learn how?
There you have it,
five six ways to make more money on your hotel room blocks.
We have seen many clients move away from the traditional revenue stream of event housing whereby they rely on rebates and commissions post-event. We all know the headaches that come with this; having to carry the cost of your services without revenue, waiting for hotels to slowly report and pay final earnings, and the dreaded post-event reconciliation process. These days, our most successful clients are capturing revenue from their attendees during the hotel booking process.
At Meetingmax, we offer free integration with Stripe, a payment processor that securely collects money from attendees and sends it to your organization’s merchant account. It’s a small step to enable financial security for our clients as they no longer need to rely solely on post-event payment from their hotel partners.