In a perfect world, each group business RFP would just require a straightforward and efficient method to determine whether or not the bid is going to be profitable. Obviously, that’s far from the case. Group inquiries require coordination and sometimes compromise between several functions within a given property. After all, something that’s appealing to catering may not make sense for revenue managers. Gathering all of the requisite data from disparate groups to balance the bid against potential transient business makes an already challenging process even more troublesome. Also, all of the additional time created trying to get all the moving parts in sync means that the property could be losing conversions by taking too long.
In previous posts, we’ve talked briefly about a scientific method for prioritizing and approving group business RFPs. That process, called lead scoring, is a recently developed method for determining whether a group bid will be profitable for each revenue generating segment within a hotel at an exact moment in time. Rather than using data derived from transient business, this process uses data based on characteristics that are unique to the group segment itself.
By using sophisticated automated systems, revenue managers can respond to group bids in record time. A top quality revenue management system will automatically score a group bid based on the historical behavior of similar group business bookings. It will collate availability and profitability for bedrooms and meeting rooms. Since the first response that a group bid receives typically wins the business, lead scoring will result in more conversions.
Lead scoring software makes the process of responding to RFPs more efficient, and it also pinpoints areas for more profits. Since lead scoring provides more data points than traditional RFP responses, the quality of the replies to potential group bookings is significantly improved. The more options that a group has, the more likely they are to spend more. So, if an RFP response includes options for spa packages and dining, the chances are good that the group will take notice. Since lead scoring takes a fraction of the time that manually generated responses do, it also helps revenue managers give potential group business more options for dates than the original bid, further increasing the chances for conversion.
Using software enabled with lead scoring technology is the key to ensuring that a property has the best chance to win the bids with the most potential for generating profits. If you’re ready to discover how to win more lucrative group business more frequently, click here for exclusive access to our eBook on group revenue management.