The hospitality industry has seen a sharp increase in demand as in-person events have rebounded. This resurgence, coupled with inflationary pressures, has driven rates to unprecedented levels. In fact, according to Costar, groups rates are 5% higher than last year and an incredible 30% higher than 2019. By comparison, transient rates are up 1% year over year and 18% over 2019. 

As meeting planners, you are no stranger to the ever-changing dynamics of the hospitality industry. The strength of group demand combined with the resurgence of business transient is placing increased pressure on planners to secure the best deals for their clients while still delivering memorable experiences. In this environment, the traditional Request for Proposal (RFP) process may no longer be the most effective approach. Instead, it's time to consider the advantages of instant bookings. 

The Impact of Rising Group Rates 

While 5% in a single year is robust growth, many organizations are still baselining their thinking to 2019 rates. That means those individuals are seeing a 30% increase: not just a minor adjustment. For those organizations, it is a significant spike which places a strain on estimated budgets and complicates decision-making. 

This combined with booking windows that are still shorter than historical norms make it even harder for planners to get the best deal for their customers, especially with smaller meetings. Waiting for the lengthy RFP process, with its back-and-forth negotiations, could result in losing out on the best available rates as prices continue to climb or as you get closer to the arrival date.  

Fortunately, technology can be your friend and with the same clicks you would generate an RFP, you can shop, book, and secure the best available rate in that moment. 

The Case for Instant Bookings 

Instant bookings offer a streamlined, efficient alternative to the RFP process. Here’s why this option is becoming increasingly appealing: 

1. Time Efficiency: The RFP process can be time-consuming, often taking weeks or even months to finalize. With instant booking you know immediately if the hotel has availability, and you can lock it in with a few clicks of your mouse. This is especially critical on a booking with a short booking window. 
2. Cost Certainty: With instant bookings, you get a quote immediately, allowing you to make swift decisions within your budget. This can be crucial in a market where rates change frequently. By securing rates now, you protect your budget from future increases. 
3. Availability Assurance: Popular hotels book fast and increasingly, farther out. What’s available today might not be available tomorrow. Instant bookings let you secure your preferred location without the uncertainty that comes with waiting for an RFP response. This is especially important in a market with high demand and limited availability. 
4. Streamlined Planning: Instant bookings reduce the administrative burden associated with managing multiple RFPs. With a faster, more straightforward process, you can focus more on planning the details of the event rather than getting bogged down in negotiations. 

Why Now is the Best Time to Act 

Given the current trajectory of group rates, now is the best time to act. The increases we’ve seen this year could be just the beginning if demand continues to outpace supply in the group space. By opting for instant bookings, you can lock in the best possible rates and ensure you have the venues you want, when you want them. 

In a rapidly changing market, flexibility and speed are your greatest allies. Instant bookings offer both, providing you with a competitive edge in securing venues and managing costs effectively. 

What Types of Groups are the Best Fit for Instant Bookings 

It’s a wonderfully democratic process. Every type of group is a fit. However, size is a factor. Most hotels won’t allow groups of more than 25 guest rooms on peak. Additionally, they might have size limitations on meeting rooms. But, if your group has fewer than 25 rooms per night, and needs meeting space for less than 50 people, instant booking provides you with the best way to secure the best rate for your group as quickly as possible. That way you can get down to planning what’s happening in the meeting and not searching for where it’s going to happen. 

Conclusion 

The landscape of event planning is evolving, and meeting planners must adapt to stay ahead. With group rates rising at an unprecedented pace, instant bookings provide a critical tool for securing the best possible deals while minimizing risks. By embracing this approach, you can ensure your events are both successful and cost-effective, despite the challenges of the current market. 

Now more than ever, it’s essential to act swiftly and decisively. Consider making instant bookings a key part of your strategy to navigate these turbulent times with confidence. 

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