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It’s all about the mix when quoting groups and meetings



FT LAUDERDALE – November 2, 2010: Group and meeting quotes include many components beyond mere room rates. Prices for group space, catering, AV equipment, internet and comps and discounts all roll up into the overall price quoted.
 
How important is it to know your competitors’ rates for those non-room items?

Don Bundock, CEO of Quality Track International says; “In order to competitively price groups and meetings it is critical to understand all the items that go into a quotation. We have seen cases where a property had an excellent, well positioned quote, but blew it by adding in $800 a day for an LCD projector. For a small meeting of 20-25 people that increased the per person rate by $40.”

Quality Track International, through its group rate shopping service GroupMetrix, analyzed more than 3,000 group proposals received over the past few months to identify how often the property with the lowest room rate also had the lowest priced bid overall.

In each competitive set, the ranking of the property with the lowest room rate was compared to that property’s ranking based on the overall price quoted. 

The cost of rooms is usually the biggest single line item cost for a meeting, so it would be expected that the lowest room price would almost always result in the best overall price.

The lowest room rate resulted in the most competitive bid 67% of the time. However that leaves one-third of the lowest-priced room bids being beaten by a competitor quoting a higher room rate.

Knowing a competitors’ complete rate information is critical when designing a successful competitive pricing strategy.

GroupMetrix CompSet Group Rate Reports include all the rate components that factor into a group or meeting quotation:

  • Room rates and inclusions, in-room internet, catering (breakfast, breaks, luncheon and dinners), meeting room , per person daily rates, audio visual, meeting room internet rates, minimum F&B guarantees, complimentary rooms, upgrades and master bill discounts.
GroupMetrix is the most comprehensive and cost-effective competitive set group rate shopping service. GroupMetrix can provide authenticated and verified group and meeting rates for future arrival dates for any hotel in the world.

Customer Price Resistance:  Real customers do not accept the first rate offered. Real customers “push back” on pricing and so do GroupMetrix shoppers.  Armed with highly believable shopping identities, GroupMetrix shoppers are able to effectively offer price-resistance and discover the true rates that competitors are offering.

The rates offered in response to the price-resistance, and the amount by which the rates are dropped, provide valuable insight into competitor’s rates and pricing strategy.
 
The rate reports include the initial set of rates offered plus any rate reductions resulting from the rate-resistance. Click here to view a sample GroupMetrix rate report -  Sample Report

The GroupMetrix service includes 2 rate shops per month on each of 4 competitors, for a total of 8 rate shops. Each rate shop is price challenged, creating an additional set of 8 rates.

The total cost is $129 per month, which is only $8 for each set of rates.

Click here to view a short online presentation - Online Presentation

For additional information click here – GroupMetrix FAQ

About Quality Track International, Inc.:  Quality Track International, established in 1998, is a leading worldwide provider of a full range of mystery shopping services and PCI compliant call center monitoring to the hospitality industry.
GroupMetrix is a service provided by Quality Track International.

For more information contact:  Mr. Donald Bundock, CEO, Quality Track International, Inc., at (416) 693-5426 or by email at Don.Bundock@QualityTrack.com

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Contact:

 Quality Track International

Head Office:
36 Toronto Street, Suite 850
Toronto, Ontario, Canada
M5C 2C5
Telephone: (416) 693-5426
Email: Sales@QualityTrack.com

US Office
3389 Sheridan Street #10
Hollywood, Florida 33021
Telephone: (954) 432-2998

http://www.QualityTrack.com

 
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Also See: Free Forward-Looking Compset Group Rate Reports; Complimentary one-month trial GroupMetrix subscription for the first 50 responders / June 2010

Analysis of Group Proposals Indicate Market Improving; Review of 1,200 group proposals show future rates and occupancy up, discounting down / June 2010

Free Forward-Looking Compset Group Rate Reports; Register by May 21st for a complimentary one-month trial GroupMetrix subscription / May 2010

Free Group-Pricing Webinar; In less than 15 minutes see how GroupMetrix can transform your group pricing strategy, help you close more group sales and increase profits / February 2010

New Service Provides Forward Looking Competitive Group Rate Reporting and Analysis / December 2009

Going Rogue on Group Pricing; How to Compete with Irrational Discounting / November 2009

Electronic Proposals - Easy for Sales Managers, Frustrating for Customers; Pretty pictures are no substitute for substance / November 2009

What is really going on with group rates? How to obtain critical competitive intelligence / November 2009

28% of Group Sales Inquiries are Lost, Ignored or Abandoned / May 2009

Quality Track’s 2,000,000th Mystery Call Received by Mandarin Oriental, New York / April 2009

Quality Track to Celebrate 2 Million Mystery Shop Calls / April 2009

Green Up Your Training. Improving Performance and Saving the World / December 2008

The Upside of a Downturn; The need to cut costs creates push to consider alternatives / November 2008

Downturn Dilemma; How to save money on training without sacrificing performance / November 2008
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