As a revenue manager, you may not always be on the frontline of MICE (meetings, incentives, conferences, and exhibitions) and group segments, but their influence is undeniable. Over the years, there’s been a shift away from just looking at room revenue, to focusing on focusing on total revenue optimization across all hotel profit centers.
While revenue management strategies have long been applied to transient business — think direct bookings, corporate clients, OTAs, and tour operators — MICE and groups have been slower to catch up. But times are changing, and the opportunity is too big to ignore.
So, what can you do to take advantage of this? Let’s dive into key strategies to optimize revenue in these high-value segments.
Group and MICE business is continuing to grow
The past few years have been unpredictable, forcing hotels and resorts to prioritize transient bookings over group sales. But as group business demand resurged in 2023, many properties and brands found themselves unprepared. Without a structured approach to balancing group and transient demand, revenue potential is left on the table. The key? A dynamic, data-driven strategy that adapts to changing market conditions.
Data over gut feeling
Too often, decisions in MICE and groups are based on instinct rather than data. However, you have access to powerful KPIs (key performance indicators) that can support with making more informed choices:
- Displacement analysis: Ensure group bookings don’t undercut higher-value transient revenue.
- Demand patterns and lead times: Anticipate booking windows and peak demand periods.
- Conversion rates and pick-up trends: Understand what drives group sales.
- Group wash factors: Accurately forecast the real attendance vs the number of group bookings initially made.
Technology plays a crucial role here, consolidating data into a single platform to reduce manual errors and improve efficiency. The more accurate your data, the stronger your revenue strategy will be.
Pricing and yielding: time to think bigger
Hotels and resorts have long applied dynamic pricing to room rates, but many still hesitate when it comes to MICE and groups revenue streams. Why not take the same approach to event spaces, catering, and equipment rentals? Consider the following:
- Adjusting pricing for lunches, coffee breaks, and even audiovisual equipment.
- Charging premium rates for meeting rooms with natural light or prime locations based on the time of year.
- Implementing minimum spend requirements, cancellation policies and room-to-meeting-space ratios (balance between the number of hotel guest rooms and the amount of available meeting or event space), that align with your revenue goals.
By thinking beyond just room rates, you can unlock significant, untapped revenue.
Be a revenue management influencer
As a revenue manager, you need to adopt a data-driven mindset across all departments, but that’s easier said than done! Is your group sales team aligned with the overall revenue goals? Do they understand the value of applying revenue management to MICE? It’s your job to lead the charge.
By fostering collaboration and sharing insights, you can build a culture where every team member, from sales to operations, makes decisions based on data, not just intuition, and contribute to the success of the revenue strategy.
The result? A smarter, more profitable approach to MICE and group segments.
Entering the era of smarter MICE and group revenue
As we head into 2025, the opportunity to maximize MICE and group revenue has never been greater. By integrating revenue management principles such as leveraging technology, refining pricing strategies, and encouraging cross-department collaboration, you can unlock new revenue streams and drive stronger profitability.
The question is, are you ready to take the lead and transform your MICE and group strategy?
