Article: Right tools help small hotels gain group travel business
Many must compensate for a lack of time, money and personnel
By Jeff Bzdawka, CEO, KnowlandJul 26, 2024
Group travel business can bring hotels much needed revenue. Jeff Bzdawka, CEO of research firm Knowland, offers tips on how smaller hotels with limited meeting space can capitalize on this revenue stream.
Boosting group travel revenue in small hotels
There is a science to sales. Those of us who work in the hospitality industry know many essential qualities are needed for successful sales outcomes. Qualities include verbal and non-verbal communication skills, listening skills, and the ability to convey information persuasively.
Empathy, product knowledge, problem-solving skills, and a goal-oriented mindset are crucial when understanding and relating to the customer’s needs, concerns, and emotions. When these skills come together, the salesperson can build trust and rapport. These are the essential elements for closing the deal.
But what if you manage a smaller property or have limited services? You’ve got the meeting space to host meetings under 100 attendees, but you don’t have the time or expertise to research your market to identify and win those customers. The reality for many small hoteliers is the lack of time, money and personnel. The “salesperson” is likely also doing double duty by checking in guests, counting inventory or managing other duties every minute of the day. And the phone continues to ring.
When time, and often personnel, is scarce, gaining insight into the groups meeting in their market or even their sub-market can seem impossible. So, how can smaller hoteliers compete with the more prominent brands or properties in their market?
Leveraging Data to Activate Group Sales
Identifying active accounts in a specific market can be stressful and time-consuming. It can be challenging to determine which accounts are the best fit for a property, and taking the time to do so can feel overwhelming for hoteliers in environments where they are responsible for both sales and operations.
It isn’t easy to decipher which accounts are the best fit or produce more business. It is also easy to feel overwhelmed by data and not know where to start. Over time, this can become draining for even the most diligent and goal-oriented salesperson.
Add to that frustration, the influx of RFPs sent by meeting planners who may be less experienced or unfamiliar with your property. This results in more lead volume but often lower conversion rates. With too many RFP responses to navigate, novice meeting planners get lost in the crunch to reply to each one and hotel sellers end up being ghosted.
Empowering limited-service hotels, which were hardest hit by the recent travel slowdown, with automated prospecting will help streamline the sales process. If qualified accounts are delivered directly to the seller’s inbox, productivity and group business growth can be boosted. Thanks to the advances in AI and machine learning, valuable group sales intelligence solutions for all hotel sizes and chain scales are available today.
This automation is having a trickle-down effect by lowering the barrier to entry for automated prospecting at scale, which in turn helps hotels unlock a clear return on investment when purchasing prospecting solutions.
Best Practices to Improve Prospecting Efforts
Using data to facilitate and improve prospecting efforts is crucial. However, software solutions are often too expensive to purchase or difficult to learn and maintain for smaller hotels with limited budgets and high staff turnover. It’s time for that to change.
We know small meetings are the key to profitability. Industry data shows that 50 percent of meetings have under 100 attendees. Access to data ensures busy hoteliers can take advantage of group business without stress or abandoning their other priorities. This is a beacon of hope for small hoteliers, showing that there is a way to manage their time and resources more effectively and, more importantly, fill need periods when leisure bookings wane.
There are various sales automation tools designed to streamline and automate different aspects of the prospecting process. These tools leverage technology to help sales teams identify and engage with potential leads more efficiently, ultimately driving higher conversion rates and sales productivity.
From lead generation to email automation to CRM integration, it can be daunting for limited-service hotels to know which tool will provide the best ROI regarding group sales. More importantly, many of these tools are designed to help hoteliers track, manage, and sell to consumers, not meeting event planners looking to book smaller events.
It is more cost-effective for smaller properties to focus on group business as opposed to the leisure traveler. Filling needs periods when leisure is waning with group business is becoming essential to a hotel’s success.
Here’s a short list to consider when looking for prospecting sales solutions:
Look for data that qualifies the opportunity. Make sure to go beyond just company and contact data. Knowing booking patterns and intent preferences can make the difference between a cold call and a warm call. Specifically, look for the data you need to qualify the opportunity and determine if the meetings in your market are ones that your property can support.
Know accounts new to your local market. By gaining knowledge down to your local sub-market, you can keep tabs on what accounts have moved into your area and be among the first to reach out to win their business.
Identify top opportunities for your property. Historical events are a strong predictor of future booking and can be useful to identify which accounts will likely book in your sub-market this year. Having that data in hand will allow you to proactively conduct outreach.
When looking to enhance group business – especially in an uncertain market, prospecting automation tools that empower sales teams to work more efficiently, optimize their outreach efforts and focus their time and resources on qualified high-potential leads will ultimately drive greater sales success. To position your sales teams for growth, make sure they are equipped with these tools that will improve both their productivity and performance.
Howard Johnson is marking its 100th anniversary with fried clam–shaped soaps.
The soaps pay homage to an iconic HoJo menu item.
Available at select hotels and for online purchase starting Oct. 3.
HOWARD JOHNSON BY Wyndham marks a century with one of its most famous menu items, the fried clam strip. The brand is introducing limited-edition HoJo’s Original Fried Clam Soap, available at select Howard Johnson hotels across the U.S. and for online purchase beginning Oct. 3.
Designed to resemble the original food item, the soaps are infused with lemon, sea salt and butter in a nod to the butter-soaked rolls that once accompanied the fried clams, according to a statement by Wyndham.
“Howard Johnson is a brand woven into America’s cultural fabric and beloved by millions for generations,” said Marissa Yoss, HoJo’s head of marketing. “As we celebrate 100 years, our limited-edition fried clam soap is a fun, nostalgic tribute to the brand’s storied past and a playful nod to the retro-modern, family-friendly spirit that continues defining our hotels today.”
For World Waffle Day celebrations, Comfort Hotels hosted a one-day Waffle Lounge in New York City on Aug. 21.
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House introduces AFA to boost franchise model and hotel operations.
The act establishes a joint employer standard.
AHLA backs the bill, urging swift adoption.
THE HOUSE Of Representatives introduced the American Franchise Act, aimed at supporting the U.S. franchising sector, including 36,000 franchised hotels and 3 million workers nationwide. The American Hotel & Lodging Association, backed the bill, urging swift adoption to boost the franchise model and clarify joint employer standards.
The AFA amends the Fair Labor Standards Act and the National Labor Relations Act, which since 2015 have created uncertainty for franchisors and franchisees, AHLA said in a statement.
Rep. Kevin Hern (R-Oklahoma) and Don Davis (D-North Carolina) introduced the AFA.
“Hotel franchising is a pathway to the American Dream for many entrepreneurs,” said Rosanna Maietta, AHLA president and CEO. “It is a proven win-win business model that enables partnerships between franchisees and franchisors. The American Franchise Act codifies a clear joint employer definition and is essential to protecting this framework.”
AFA aims to protect the franchise model, which has long enabled women and minority entrepreneurs to run their own businesses with support from larger brands, the statement said. It will clarify the employment relationship by establishing a joint employer standard that protects workers and preserves franchisee autonomy.
Mitch Patel, AHLA board chair and Vision Hospitality Group CEO, said that as a hotel franchisee, he has seen how the model enabled him and others to achieve the American Dream.
“Throughout my career, my hotel business has employed thousands of people who have built lifelong careers in our industry,” he said. “The American Franchise Act is essential to preserving this foundation. For the benefit of both employers and employees, we strongly encourage the swift passage of this critical legislation.”
"As one of the few franchisees in Congress, I understand how damaging an ever-changing joint-employer rule is to the franchise business model,” said Hern. “I'm pleased that we were able to come together in a bipartisan effort to create legislation that safeguards small businesses and individuals working to achieve the American Dream across the country."
Davis said changes to joint-employer rules have created prolonged uncertainty in the industry.
“The American Franchise Act aims to restore stability by clarifying that franchisors and franchisees operate as independent employers while safeguarding workers through established labor standards,” he said.
Separately, a petition for a referendum on Los Angeles’s “Olympic Wage” ordinance, which sets a $30 minimum wage for hospitality workers by the 2028 Games, fell short of signatures. The ordinance will take effect, raising hotel wages from $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
The 10th StudioRes expands Noble’s long-term accommodations platform.
Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.
NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.
“Noble is institutionalizing one of the most resilient and undersupplied segments at the intersection of hospitality, mobility and how people stay,” said Shah. “We are scaling a branded platform to capture secular demand that creates stable cash flow and long-term value.”
In May, Noble acquired 16 WoodSpring Suites properties through two portfolio transactions, expanding its platform in branded long-term accommodations.
Noah Silverman, Marriott International’s global development officer, U.S. & Canada, said breaking ground on the 10th StudioRes with Noble reflects the brand’s growth and the companies’ three-decade partnership.
“With both companies’ expertise in long-term accommodations, Marriott’s distribution channels, and the power of our nearly 248 million Marriott Bonvoy members, we are confident StudioRes is uniquely positioned to generate customer demand at scale, drive performance and sustain long-term growth,” he said.
Meanwhile, Marriott has more than 50 signed StudioRes projects, about half under construction, the statement said. The first StudioRes opened in Fort Myers, Florida.
Hersha Hotels & Resorts sold The Boxer Boston to Eurostars Hotels.
The company acquired the property in 2012 for $12.6 million.
The property now sold for $23.6 million.
HERSHA HOTELS & RESORTS sold The Boxer Boston, an 80-room hotel in Boston’s West End, to Eurostars Hotels, part of Spain’s Grupo Hotusa. The company, which reportedly acquired the property in 2012 for $12.6 million, received $23.6 million for it.
The seven-story hotel, built in 1904, is near TD Garden, the Charles River Esplanade, One Congress, North Station and Massachusetts General Hospital, said JLL Hotels & Hospitality, which brokered the sale. It also has a fitness center.
Hersha Hotels & Resorts is part of the Hersha Group, founded in 1984 by Hasu Shah. Jay Shah serves as senior advisor and his brother Neil Shah is president and CEO.
JLL Managing Director Alan Suzuki, Senior Director Matthew Enright and Associate Emily Zhang represented the seller.
"The Boxer’s prime location at the crossroads of Boston's West End, North End and Downtown districts, combined with its strong cash flow and its unencumbered status regarding brand and management, made this an exceptionally attractive investment," said Suzuki. "Boston continues to demonstrate resilient lodging fundamentals driven by its diverse demand generators, including world-class educational institutions, medical facilities, corporate presence and convention and leisure attractions."
The property will become the Spanish hotel chain Eurostars’ fifth U.S. hotel, supporting the group’s North American expansion, the statement said.
Amancio López Seijas, president of Grupo Hotusa and Eurostars Hotels Co., said the addition of Eurostars’ The Boxer strengthens the company’s presence in key locations and promotes urban tourism.
Peachtree recognized by Inc. and the Atlanta Business Chronicle.
Named to the 2025 Inc. 5000 list for the third year.
Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing companies.
PEACHTREE GROUP ENTERED the 2025 Inc. 5000 list for the third consecutive year. The company also won the Atlanta Business Chronicle Pacesetter Awards as one of the city’s fastest-growing private companies.
The Inc. 5000 list provides a data-driven look at independent businesses with sustained success nationwide, while the Business Chronicle’s Pacesetter Awards recognize metro Atlanta’s fastest-growing privately held companies, Peachtree said in a statement.
“We are in the business of identifying and capitalizing on mispriced risk, and in today’s environment of disruption and dislocation, that has created strong tailwinds for our growth,” said Greg Friedman, managing principal and CEO. “These recognitions validate our ability to execute in complex markets, and we see significant opportunity ahead as we continue to scale our platform.”
The Atlanta-based investment firm, led by Friedman; Jatin Desai, managing principal and CFO and Mitul Patel, principal, oversees a diversified portfolio of more than $8 billion.