From request to booking: 4 crucial data points why hotels need to automate meetings and group sales

Before the pandemic, Germany was a leading destination for meetings and conferences globally, with 2.89 million events in 2019 and 423 million participants. Despite this importance, 70% of incoming event requests face rejection due to capacity limitations, operational, or strategic reasons. Additionally, while MICE contributes significantly to hotel revenue, it often receives less attention, with many processes still handled manually.

The traditional event market has shifted, particularly due to the pandemic, and hotels now face the following trends and challenges:

Trends & Challenges

1. Increasing Number of Small Meetings: Events with fewer than 30 participants are becoming more common as companies break up large events into smaller, decentralized meetings. Depending on the market and segment, up to 75% of meetings are small and simple, with fewer than 30 participants, leading to lower booking values. The rise of remote work means companies are booking external venues for team meetings. However, smaller events are less profitable and require almost the same effort as larger ones, reducing their financial return.

2. Shorter Lead Times: The time between booking and the event (lead time) is shrinking, with average lead times in Europe now below 40 days. Venues are expected to offer faster quotes and flexible cancellation policies. Short lead times necessitate quick responses to inquiries and efficient operational planning.

3. Managing the Flood of Inquiries: The demand for events has rebounded post-pandemic, but with 30% of the hotel workforce lost since 2019, hotels are struggling to manage the increase in event inquiries. Automation offers a potential solution to alleviate the workload on remaining staff.

4. Rising Costs: Inflation and energy prices are increasing, pushing hotels to find ways to

   operate more efficiently and manage costs better.

The Importance of Automation

Given these changes, automation has become more necessary in the event market. The trends of shorter lead times, smaller teams, and a higher volume of inquiries mean manual processes are no longer sustainable. Automation offers several opportunities:

• Reduced effort on repetitive tasks, allowing staff to focus on more critical, strategic activities.

• Time savings for quoting and pricing processes.

• Enhanced accuracy and data capture for better decision-making.

Goals and Benefits of Automation

The main advantage of automation is the reduction of manual tasks, freeing up time for more creative and strategic work. For the MICE sector, automation offers the following specific benefits:

• Handling Inquiries: Automation helps manage the volume of requests more efficiently, reducing response times. Radisson Hotel Group nearly doubled its response rate to customers, with now no timeouts.

• Time Savings: Automated processes like quote generation save time, allowing staff to focus on other important tasks like customer service and strategic planning. Radisson Hotel Group has been halving its time to respond to customers, while NH Hotel Group reduced response time by over 30%.

• Prioritization of Profitable Events: Automation allows for the separation and prioritization of high-revenue events over less profitable ones.

• Meeting Customer Expectations: Clients expect rapid responses and seamless booking experiences. Automation can meet these expectations by providing instant information on availability and prices.

• Improved Employee Satisfaction: By reducing manual work, employees can engage in more meaningful and interesting tasks, enhancing job satisfaction.

• Reduction of Errors: Automation reduces the risk of errors compared to manual processes, such as in data entry and management.

In summary, automation in the meetings and group sector can lead to significant time savings, improved efficiency, better customer service, and higher employee satisfaction. By embracing automation, hotels can navigate the post-pandemic market more effectively, handle increasing demands, and optimize their resources for both small and large events.