How to Grow Venue Revenue

How to Grow Venue Revenue

Ensuring everyone has a great experience

When a catering sales manager sells an event to book a date at a property at a lower price point than what's typical, everyone feels the downstream implications of that decision. A general manager isn’t annoyed at sales necessarily because of the lower price point, but because the other revenue opportunities associated with the event are then unrealized.

For example, at a luxury property, most event guests may not end up staying at the hotel, meaning there isn’t additional room revenue or food and beverage spend. The potential for overall property revenue is negatively impacted by the choice to host the event altogether.

Additionally, the other implication of the rooms at the property not being used by event attendees means that guests that are in the hotel may have a negative experience when it's taken over by a single event. No one wins when the events being brought into a given property don’t align with the overall objectives of the organization. ​​​​

High-value customers lead to more high-value customers

When event attendees stay at your property, they get your whole experience, from brunch on a patio with the perfect view to cozy turn-down service with bedside slippers. That all-in experience, received from event guests who stay on property, allows those customers to know your brand better, which in turn breeds loyalty.

The next time that customer is searching for venues for a corporate off-site or a family reunion, they will recall the amazing experience they had with your property or brand. The comprehensive experience, outside of just the few hours of a specific event, is what makes all the difference for future sales conversions.

Everything goes back to overall property revenue

Events are a vital line of business for properties, in many cases accounting for millions in annual revenue. Not only do events contribute meaningful revenue to organizations, they also provide a huge opportunity for third party validation of a property’s quality and team. What's more, they contribute to overall property revenue thanks to the additional on-site spend by event attendees.

And that’s the ultimate objective for anyone working in hospitality: improve the margin of your organization. That can only be done by either increasing spend and/or looking for cost savings from an operational perspective. At ROH, we’ve built our revenue optimization platform to tackle that opportunity from both sides. On average, our partner properties see an overall increase in event revenue of around 15 to 20%, and that's not taking into account other on-site spending from event attendees. But, we do know that our platform—which includes digital contracting, invoicing, and payments solutions—certainly contributes to bringing in the “right” events for any property’s goals.

To learn more about how ROH can help your property group or hospitality brand drive increased revenue, conversions, and collaboration, schedule a free demo.