Hotel Best Practices for Managing Room Blocks

There are many ways to manage a room block effectively. Listed below are best practices on the timing and what to do when, while managing a group room block for a large meeting.

Meeting sizes may vary, but most large meetings are booked several years in advance. The hotel executive and the meeting professional should remain engaged in regular communication from the moment the contract is signed.

Annual Review
Reviews should take place annually from the time the contract is signed until 11 months prior to arrival of the group. The following activities should occur:

• Review room block following the annual meeting and make a comparison with the contracted room block
• Should the variance between the rooms used at the annual meeting and the contracted room block be greater than 10%, a discussion between the parties should occur to identify possible causes of the decline in guest room usage. Discuss the industry and/or membership trends
• Based on input from the meeting professional and other appropriate research, a mutual decision may be made to reduce the block, and if appropriate comparable reduction in meeting space
• Based on the number of times or based on the amount the block is adjusted/reduced, the hotel executive may determine what effect this may have on room rates, concessions and/or other contractual terms

Confirming Group Rates
Review rates and guidelines outlined in the original contract

• Determine the group rate based on the contractual terms, and compare it with other rates at the hotel and other hotels in the market
• Identify trends in the local market as well as trends in the industry that might effect the organization and the organization's members' perception of the rate
• Finalize the rate with the appropriate revenue manager in the company
• Discuss the rational and obtain an agreement from the meeting professional
• Confirm rates and other terms including: cut off dates, commission, agenda, pick up percentage required to satisfy contract, direct billing and any other terms that might be unique to the contract

Monitoring Group Room Pick Up

As soon as housing opens

• It is critical to track group room pick up from the point when the group room block is open and continue to track it until the departure of the last guest. This will provide an opportunity to identify trends. The post convention report is a valuable tool for both the meeting professional and the next host facility for the group
• Make monthly comparisons of the room block pick up to the most recently revised contracted block. The hotel executive must communicate regularly with the meeting professional and compare group room pick up with registration activity

Three months prior to arrival

• Group room pick up and registration numbers should be discussed weekly between the meeting professional and the hotel executive; any necessary room block changes should be addressed as soon as possible. A reminder for of the cutoff date is essential

Two weeks prior to cutoff

• If pick up is poor and attrition is eminent, both the meeting professional and the hotel executive should discuss any last minute efforts to fill the block including any previously determined marketing efforts. Attrition damages should be outlined in writing for all parties at this time

Cutoff Date

• Hotel executive generally advises meeting professional of the group room pick up and discusses registration pace and activity; hotel executive and meeting professional will discuss if an extension to the cutoff is warranted, advisable and/or possible
  
• If an extension to the cutoff date is not possible, the group room block is cutoff and the group room pickup is below the contracted block, the hotel executive should have a discussion with the meeting professional regarding the release of a proportionate amount meeting space back to the hotel. If the released meeting space is resold in conjunction with guest rooms, it may help mitigate some potential damages

Pre-Convention Meeting

• Review final group room pick up and compare with the most recently adjusted block
• Conversations regarding attrition damages should be discussed in private and prior to the pre-convention meeting. This will enable the pre-convention meeting to stay focused on the successful implementation of the meeting instead of on the attrition situation.

Post Convention/Final Bill Review

• In addition to the bill review, parties should discuss attrition damages and review creative solutions to reduce the total dollar amount involved. This may include options regarding future bookings at the host property and /or other properties within the same hotel company