Posted on December 11, 2023
Having a good plan for room block management can make the difference between a fully booked event and one that doesn’t meet expectations. Studies show that event planners who use good strategies for room block management often see happier attendees and more successful events. By learning how to manage hotel rooms well, event organizers can ensure everything goes smoothly for attendees and build better relationships with hotels.
This article will explain how to manage hotel room blocks for events. We’ll start with the basics and move on to negotiating contracts, cover best practices, including using management software and other tools. We’ll also discuss why reviewing your event afterward is important for improving. Whether you’re new to event planning or want to improve, these tips will help you confidently handle hotel room blocks
What are the Basics of Room Block Management?
What is a Room Block?
A “room block” or “group block” is a group of hotel rooms reserved for people attending an event, like a conference or wedding. This practice is important because it guarantees attendees a place to stay, often at a lower rate, making the event more accessible and enjoyable. Hotels offer these discounts because a room block means a big, guaranteed booking, which is good for the event organizers and the hotel.
Who are Your Stakeholders?
The main stakeholders involved in room block management are the event organizers, the hotel’s sales department, and the attendees. Event organizers typically work with hotels to secure room blocks and handle the booking process for attendees. Hotels, on the other hand, reserve these blocks of rooms and may offer special rates and conditions, like flexible cancellations or upgrades. Attendees usually pay for their rooms but benefit from easy booking and often lower rates.
Common Terms and Their Meanings
Understanding the terms used in room block management is important for handling this part of event planning. Here are some key terms:
- Allocation: Refers to the number of rooms currently available for sale within a block.
- Attrition: The difference between the number of rooms booked and the number actually used. Hotels may charge fees if fewer rooms are used than agreed, but this can sometimes be negotiated.
- Allotment: A block of rooms held or booked by a third party, like a travel organizer or event planner.
- Amendment: Changes made to an existing reservation or contract about the room block.
- Cut-off Date: The last date attendees can book rooms within the block at the negotiated rate.
- Sub-blocks: Parts of the main room block, often divided by attendee type (e.g., VIPs, staff, general attendees).
By learning these terms and understanding the roles of key people involved, you can better manage room block management, ensuring both attendee satisfaction and smooth logistics.
Negotiating Contracts for Your Event’s Room Blocks
- Key Components of a Room Block Contract
Understanding the key parts is essential when negotiating contracts for your event’s room blocks with a hotel partner to avoid unnecessary disputes. A contracted room block ensures your group rate and room availability while also protecting the hotel’s interests.
Key terms include the ‘’Attrition clause,’’ which is the percentage of the room block that must be filled by the cut-off date, usually 30 days before the event. After this date, you might be charged for unsold rooms at the agreed rate times the number of contracted room nights.
Make sure to clarify if rooms booked outside the room block count towards the total sold, as this affects the attrition calculations.
- Negotiating Lower Rates and Better Terms
To get the best terms for your room block:
- Know the room rates around your event dates and use this information to get better deals.
- If you frequently use a hotel brand, contact your global hotel representative. They can help you secure favorable terms.
- Get help from local convention and visitors bureaus, especially if you’re considering multiple cities. They can advocate for you and usually know about some of the best deals on room bookings.
- Negotiate with future business in mind and ensure all your needs are clearly stated in the contract.
- Dealing with Attrition and Cancellation Clauses
Attrition penalties are charged if your event uses fewer guest room nights than are reserved in the contract. Contracts usually have an attrition allowance, letting you release rooms without penalty, usually between 10% – 20% at certain times.
To manage attrition well, consider negotiating tiered attrition, allowing you to release rooms gradually at set dates. This helps the hotel resell the rooms and reduces risk for both parties.
- Include a clause requiring the hotel to compare your registration list with their bookings. This will ensure that all your guests, even those who booked outside the block, are counted towards your room block.
Understanding these points and negotiating strategies will help you manage hotel room blocks better, ensuring cost efficiency and satisfaction for your event attendees.
Best Practices for Managing Room Blocks Efficiently
- Setting up a Room Block Timeline: It’s important to start your room block management early. As soon as you get a request for a room block, start setting it up by specifying the rooms and rates. Set up early to talk with the event planner, ensuring all needs are met and guaranteeing the best rates and availability. Be sure to communicate any changes or updates quickly to everyone involved.
- Monitoring Pickup Rates and Adjusting Accordingly: Keep a close watch on your room block bookings. Monitoring how quickly rooms are booked lets you adjust your inventory effectively. If rooms are booked faster than expected, you might need to negotiate for more rooms. If bookings are slow, adjust your marketing or renegotiate terms to avoid penalties for unbooked rooms. Regularly checking these rates helps you manage the block efficiently and avoid costs for empty rooms.
- Communicating Effectively with Attendees and Hotels: Effective communication with hotels and attendees is vital for successful room block management. Clearly inform your attendees about the terms of the room block, including booking deadlines, cancellation policies, and room rates. Use multiple channels, such as emails, event websites, and social media, to share this information. Also, keep open lines of communication with the hotel to address any concerns or changes quickly, ensuring a smooth experience for everyone involved.
Leveraging Technology for Streamlined Room Block Management
- Event Housing Management Software Options
Event housing management software like InEvent makes hotel bookings for events much easier. InEvent offers a complete solution that simplifies the booking process, giving you full control over your room blocks and creating new ways to increase event ROI. With custom branding, your event will have a consistent reservation experience for attendees, making it easier for them to book within the designated blocks. You also save time by managing all your hotel pickups, luggage, and attendee tracking all in one place. It also offers ways to generate revenue through sponsorships and revenue sharing.
- Integration with Event Registration Platforms
Integrating your room block management with event registration platforms can make the attendee experience much smoother. For example, InEvent’s all-in-one Event Management platform lets participants quickly move from event registration to hotel reservation, making it easier to book accommodations. This integration centralizes all essential data, improving accuracy and making room allocation and attendee preferences easier to manage.
- Automating Processes to Save Time and Reduce Errors
Automation in room block management saves time and reduces errors, from room allocation to attendee communication, using custom, branded email marketing. This includes real-time reservations and updates, allowing immediate adjustments based on room pickup rates and attendee preferences. Automating these processes makes room block management more efficient, reduces manual work, and can focus on other essential parts of event planning.
Post-Event Evaluation and Strategies for Future Improvement
- Analyze Your Room Block Utilization and Attendee Feedback: After your event ends, reviewing the room block management process is important. This helps you find areas to improve for future events. Other things you could do include:
- Monitor group pick-up rates regularly from the start to the cut-off date to see if the reserved rooms are fully booked or if changes are needed.
- Conducting post-event surveys can give you valuable insights into attendees’ satisfaction and identify areas for improvement.
- Ask questions about the booking process, their stay, and their likelihood of returning to get valuable data for refining room block strategies.
- Identifying Areas for Improvement: Though not always exciting, Room block management offers big opportunities for improvement with proactive and strategic actions. Conducting room audits helps avoid attrition fees and builds a historical view of your room blocks. Tracking details for rooms outside your block or contracted hotels is important, as this data strengthens your bargaining position in future negotiations. Using technology can also streamline the management process, automating tracking and reporting of registration and room blocks, saving time and reducing errors.
- Building Stronger Hotel Partnerships for Future Events: Developing strong partnerships with hotels can save costs, reduce risks, and lead to better solutions, improving the attendee experience. Engaging in a post-event evaluation with your hotel partners is crucial for gathering feedback, assessing success, and identifying areas for improvement. This collaborative evaluation builds trust and strengthens partnerships, paving the way for successful future events. Sharing feedback and results with partners highlights their contributions and identifies potential areas for mutual benefits, contributing to long-term successful collaborations.
Conclusion
Reflecting on the strategies and insights shared in this article, it’s clear how crucial, efficient room block management is for successful events. From understanding the basics and negotiating contracts to using technology and conducting post-event evaluations, a comprehensive approach has been outlined.
Moving forward, it’s crucial to remember the lessons from the best practices and technological innovations discussed. There is great potential for applying these strategies in different contexts, offering exciting opportunities for event organizers. Focusing on efficient room block management, developing technologies and building strong partnerships with hotels, sets a foundation for exceeding attendee expectations in future events.
See how our room block management feature can improve attendee experiences, and build stronger hotel partnerships. Embrace these practices and step into a future of more successful and fulfilling events for everyone involved. Try our event housing management software today and see the difference it can make for your next event.
About the Author / Adedoyin
