A concert, a trade fair, a sporting competition or a conference can completely change demand behaviour in a destination.
For a hotel, detecting these events in advance can represent an important revenue opportunity.
Events create demand peaks
When thousands of people travel to a city for the same reason, demand for accommodation can rise quickly.
This causes:
- rooms to sell earlier;
- competitors to raise rates;
- certain areas to have especially strong demand;
- guests to accept paying higher prices.
That is why an events calendar is a fundamental tool in Revenue Management.
Not all events have the same impact
An event does not automatically generate demand for every hotel.
We must analyse:
- location;
- size of the event;
- attendee profile;
- duration;
- schedule;
- accessibility;
- nearby hotel supply.
For example, a business conference can especially benefit hotels near the venue and aimed at corporate customers.
A music festival can attract a completely different profile.
Anticipation is key
Suppose a major event will take place near our hotel in three months.
If we wait until the week before to change rates, many guests will probably have already booked at lower prices.
Detecting it early makes it possible to create a progressive strategy.
We can raise rates as demand evolves, control availability and review restrictions.
Beware of rates that are too low
One of the most common mistakes is not updating prices when an event is announced.
The first bookings can start coming in quickly.
If the hotel keeps its usual rate, it may end up selling a large part of its inventory before detecting what is happening.
There are also opportunities on nearby dates
The impact of an event is not always limited to the exact day.
Attendees may arrive the night before or stay one more day.
That is why we must also review the dates before and after.
Build a calendar
A good practice is to create an annual calendar with:
- trade fairs;
- conferences;
- concerts;
- public holidays;
- sporting events;
- local festivals;
- school holidays;
- business events.
We can then compare these dates with our historical data and observe how bookings evolve.
Early information allows us to anticipate.
And in Revenue Management, anticipating is usually far more profitable than reacting.