Analysis of Group Proposals Indicate Market Improving
Review of 1,200 group proposals show future rates and occupancy up, discounting down
GroupMetrix provides verified competitive set group and meeting rates for future arrival dates for small and medium-size group bookings.
In August of 2009, more than 1,200 RFP’s were sent to properties requesting a proposal for a medium-size group booking (30-35 people for 3 nights, plus meeting space) for multiple arrival dates, 50 to 65 days out. Similar requests were sent out in May 2010 and the responses compared. The changes were significant:
- In August 2009, 2.2% of the properties contacted responded that they did not have sufficient availability to accommodate the group as requested. In May 2010, the hotels without sufficient availability increased to 7.6%. That is a 245% increase in the number of hotels responding with sold out conditions.
- The rates being offered also showed significant changes: The room rates offered were 32% higher and the aggregated overall cost of the meeting portion (excluding room rate) increased 21%.
One of the unique features of the GroupMetrix Program is the ability to replicate the behaviour of real customers.
Real customers do not accept the first rate offered. Real customers “push back” on pricing, and so do GroupMetrix shoppers. Comparing the initial rates with the rates offered in response to price-resistance provides valuable insight into competitors’ strategies. In addition, this process also identifies the strategy used to respond to customer price resistance.
The primary differences in property responses to price-resistance were:
- In August 2009, sales managers responded when pressured, by reducing room rates an average of 5%. The meeting price was reduced by 5.1%.
- In May 2010, when pressured, the room rates were only reduced by 3.5% and the meeting prices were reduced 5.6%.
These results point to an improved group market going forward.
About GroupMetrix: Competitors’ group rates and pricing strategy are the most difficult pieces of competitive intelligence for a hotel to obtain. Group rates are not published in any electronic system and can only be accurately obtained by systematically ‘shopping the competition.’ GroupMetrix makes it simple to obtain a clear view of your competitor’s future group rates and pricing strategy.
The GroupMetrix group rate shopping service uses elaborate corporate identities to facilitate realistic shop calls that uncover a competitor’s true rates.
GroupMetrix CompSet Group-Rate Reports provide unparalleled insight into competitors’ rates and pricing strategy and include all the rate components that factor into a group or meeting quotation:
- room rates and inclusions,
- in-room internet and meeting room internet,
- catering (breakfast, breaks, lunch, dinner) and minimum F&B guarantees
- meeting room and AV rates,
- comp rooms, upgrades and master bill discounts.
The rate reports include the initial set of rates offered plus any rate reductions resulting from the response to rate resistance.
To receive your free trial of the GroupMetrix service: Click here to register.
GroupMetrix has the ability to obtain a full set of group rates from any hotel in the world. The GroupMetrix service includes 2 rate shops per month on each of 4 competitors, for a total of 8 rate shops. The total cost is just $129 per month. All shop reports include the initial rates offered and the response to price resistance.
Click here to view a sample GroupMetrix rate report - Sample Report
For additional information click here – GroupMetrix FAQ
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June 21, 2010 at the Orange County Convention Center in Orlando, Florida.
Quality Track International’s booth number is 119.
About Quality Track International, Inc.: Quality Track International, established in 1998, is a leading worldwide provider of a full range of mystery shopping services and PCI compliant call center monitoring to the hospitality industry.
GroupMetrix is a service provided by Quality Track International.
For more information contact: Mr. Donald Bundock, CEO, Quality Track International, Inc.,
Telephone: (416) 693-5426 or by email at [email protected]
