Hoteliers face a challenge in accurately forecasting group business, which is a major revenue source. Group bookings are different from transient bookings. They involve larger blocks of rooms and longer booking windows. This makes it difficult to optimize pricing and predict group occupancy.
The challenge of forecasting group business
In forecasting business, the lack of data on group demand and transient demands is a major challenge. The traditional forecasting models focus primarily on transient business and ignore the nuances of groups demand. Group data usually impacts forecasts only after blocks have been confirmed, resulting in a delayed insight into the true demand landscape.
Bookings for groups are also subject to fluctuations. It is possible that the number of bedrooms picked up in a block due to cancellations, changes in group size, or no-shows can change. This “wash” can have a significant impact on occupancy and revenue. It is important to account for this in your forecast.
Developing group forecasts
We are developing a set of machine-learning forecasting models to address these challenges. BlockBuster Improve the accuracy of total house forecasts and address the complexity associated with group business.
- Group Wash You can adjust your demand and availability forecasts based on the predicted number of rooms that will not be booked from a block. This “wash” factor can help you avoid overestimating demand, and improve pricing strategies.
- Pipeline conversion You can predict the likelihood that each RFP will be converted. This will help you factor in group demand sooner, improving accuracy and operational planning.
- Unforeseen demand/future business Predict future group RFPs using historical trends, current market conditions, etc. Anticipating untapped demand allows you to adjust your strategy and maximize revenue potential.
Your group forecasting will be taken to the next stage
Integrating group demand into your forecasting will empower you to make informed decisions. This will align your transient price strategies and maximize your profitability.
Our investment in BlockBuster Hoteliers can unlock the revenue and profits potential.
Take the next step to discover the exciting possibilities that these new developments could bring for you and your management team.
Duetto
The following are some of the ways to get in touch with each other DuettoWe create cloud-based technology to unlock the revenue and profit potential of hoteliers. Our years of experience in hospitality and technology are a great asset.
Build with an Open Pricing methodologyWe bring together all of your data so that you can accurately capture the dynamic demand and make optimal inventory decisions. This will increase your efficiency in real time.
Our products are trusted by more than 6,300 hotels in 60 countries. products. These include GameChanger to manage yield and distribution, ScoreBoard to report and forecast, BlockBuster to run group businesses, Advance for 24/7, real-time management of revenue, and OpenSpace (for optimizing the use of function spaces).
The world’s top revenue management system for 2025, 2024 2023 and 2022. HotelTechAwardsWe’re committed to becoming the revenue-and-profit operating system for hotel industry.
Duetto — greater in every way.
Please visit our website to learn more. duettocloud.com.
Julia Pedrol
Content & PR Manager
Duetto
