Group bookings are major revenue drivers for hotels, but they also come with uncertainty. Large events, corporate meetings, and tour groups often reserve blocks of rooms, but not all of them end up being used.
As Gerhard Wasem, Director of Product Management, Group Business, recently said, “Group business involves larger blocks of rooms, longer booking windows, and unique demand patterns. These complexities make it difficult to predict group occupancy and optimize pricing strategies.”
And the challenge is only growing. A recent CoStar article states that US hoteliers are forecasting higher group sales for 2025.
But with more group bookings comes a familiar challenge — group wash — one of the most dreaded revenue management terms.
What’s group wash?
Group wash predicts the percentage of unbooked rooms within a group block. Not accounting for group wash results in inaccurate demand forecasting, leading to missed revenue and inefficient inventory management.
Introducing group wash
In June, we announced a significant investment in BlockBuster, our all-in-one group solution designed to optimize revenue across all segments: transient, group, and function space.
As part of this evolution, we’re introducing group wash, the first feature in a new series of group forecasting tools. This feature specifically addresses the uncertainty tied to group block pickup — across contracted groups, wholesale, and negotiated rate business.
How group wash helps
Group wash solves this problem by predicting the number of rooms from group blocks that will not be converted. For example, if a group block of 100 rooms historically sees only 90% pick up, this wash factor can now be incorporated from the outset.
This allows you to:
- Avoid overestimating demand.
- Avoid overcommitting resources.
- Optimize rate strategies based on more realistic demand.
For properties that rely heavily on group bookings, group wash empowers you to:
- Improve availability management.
- Improve operational efficiency.
- Enhance rate recommendations by providing a more accurate picture of total property demand.
How group wash works
Group wash analyzes historical group booking data and patterns to predict how many rooms in a group block are likely to remain unbooked. The new wash projection allows you to wash room blocks, positively impacting the yielding capacity and rate recommendations.
Once the group wash analysis returns a recommendation, you can update your forecasted group rooms for each block to automatically adjust the demand forecast, occupancy forecast, and yielding capacity, and review your blocks to create wash strategies.
Four use cases for forecasting group bookings to reduce group wash
1. A major trade show is coming to town
There’s a large-scale trade show taking place in your destination, and the exhibitors blocked hundreds of rooms at your property. As the event approaches, not all of these rooms may be picked-up – especially with flexible cancellation policy – potentially leaving you with unsold inventory.
Our group wash algorithm predicts how many rooms will go unused.
The outcome? You can adjust pricing and yield management before the cut-off date, releasing inventory and ensuring optimal revenue capture during this high-demand period.
2. A corporate event is happening at your convention hotel
A company is hosting an offsite training at your property. They’ve created a group block, but as attendees confirm, the number of rooms needed fluctuates. By the time the cut-off date arrives, you may have excess rooms that need to be resold.
Our algorithm anticipates the final room demand so you can resell excess inventory in advance.
The outcome? You can adjust capacity and pricing in advance, maximizing your occupancy and revenue.
3. A wedding is being held at your property
A couple has reserved a block of rooms for their wedding guests, who have until the cut-off date to confirm their stay. Because guest RSVPs are unpredictable, the final room count remains uncertain until the last minute.
Our predictive analytics estimate the likely number of unused rooms, helping you optimize availability.
The outcome? You can proactively adjust your pricing and inventory, ensuring space for additional wedding guests or last-minute transient bookings, while maximizing revenue.
4. A tour operator blocked rooms in your resort
A tour operator reserves a block of rooms in your mountain resort during peak season, planning to sell them individually to ski enthusiasts. Since demand can vary, the agent provides a final count by the cut-off date.
Our group wash algorithm predicts the number of unused rooms, giving you context to make inventory decisions.
The result? You adjust your pricing and reallocate rooms before the cut-off date, maximizing profitability during peak season.
Best practices for smarter group forecasting
Whether you’re managing wedding blocks or major events, these best practices help you get the most out of your group forecasts:
- Ensure data accuracy by updating your system. Include newly signed contracts with an accurate measure of committed rooms, maintain updated tentative statuses, and create new block codes instead of reusing old ones.
- Maintain data consistency by following best practices for PMS tracking, avoiding modifications that could impact forecasting accuracy.
- Use BlockBuster, not your PMS, to dynamically adjust yielding capacity in real-time.
The power of smarter group forecasting with group wash
Managing group business successfully requires more than just blocking rooms and hoping for the best. It demands proactive, data-driven decision making.
With group wash, you gain a clear view of realistic demand. This allows you to navigate fluctuating demand more effectively and make smarter decisions about inventory, helping you maximize revenue and occupancy.
