Economies of Scale:

Avoid common mistakes:

– You would think that the more business you are giving hotels, the lower the rate should be – quantity of scale, BUT in hotels there is a very fine line and this is often not the case.

Hotels work to achieve the best ‘average rates’ - so they can afford to sell a few rooms as ‘loss-leaders’ but only a few, otherwise it drags down their average rate. A good hotel will have demand, so they are likely to sell the rooms, therefore they will hold out for the ‘going rate’ for a larger group. The key is to know the quiet periods specific to each venue (this changes depending on venue location and style) and if securing a good price is critical for you, it’s a case of knowing which venues have the flexibility to negotiate.

We all know that hotels are businesses. They function just like most other businesses; to make a profit. Most hotels, particularly international chains, have complex revenue management systems in place which dictate rates per night based on historic occupancy.

---

Wendy has been organising corporate events for 18 years, and is the founder of meetings matter, a corporate venue finding service. She loves entertaining at home, and at work gets a kick when she is able to secure a venue she knows is going to be perfect for that event brief.