When Does It Make Sense to Book a Hotel Room Block?

If you have a group traveling to the same destination, you may be wondering whether it makes sense to set up a hotel room block or simply let everyone book on their own.

If your group needs 10 or more guestrooms on its busiest (peak) night, it’s worth exploring a hotel room block.

A room block allows a hotel to set aside a specific number of guestrooms for your group, typically at a negotiated group rate. While there can be contractual commitments involved, a room block can offer some significant advantages.

What Are the Benefits of a Hotel Room Block?

Negotiated group rates: Instead of attendees booking whatever rate is available online (that can change at any time), you can negotiate a group rate with the hotel. Depending on your dates, destination and group size, this may provide savings and gives attendees a consistent rate.

Additional concessions: The room rate isn't the only thing that can be negotiated. Depending on the value of your program, hotels may offer complimentary rooms, complimentary meeting space, upgrades, reduced or waived fees, accelerated award program points for the planner, discounted parking, Wi-Fi or other concessions.

Keeping your group together: Having attendees at one hotel can make transportation, communication and overall event logistics much easier. It also creates more opportunities for attendees to interact outside of scheduled programming.

Protecting room availability: A room block reserves inventory specifically for your group. This can be especially valuable during busy travel periods, conventions, festivals, sporting events or other dates when hotels may sell out.

More negotiating power: If you're also holding meetings or events at the hotel, your guestroom block contributes to the overall value of your business. A strong room block may provide additional leverage when negotiating meeting space, food and beverage minimums and other contract terms.

Are There Any Downsides?

The biggest consideration is the potential financial commitment.

Many contracted room blocks include an attrition clause, requiring your group to utilize a certain percentage of the guestrooms contracted. If the block doesn't perform, attrition damages may be due.

You'll also need to monitor reservations throughout the booking period. Are attendees actually booking? Is one night filling faster than another? Do you need more rooms or should the block be adjusted?

This is why it's important to contract a realistic room block and understand the terms before signing. If you have history on your group and number of rooms utilized in the past, it will help you know how many rooms per night you may actually use.

So, Do You Need a Room Block?

If you're expecting 10 or more guestrooms on your peak night, it's worth exploring group rates before having everyone book individually.

A properly negotiated room block can help secure availability, simplify logistics, provide a more consistent attendee experience and potentially offer better overall value.

Need 10+ Rooms on Peak?

If you're booking 10 or more guestrooms on your peak night, contact me before booking individually.

I can help source hotel options, compare group rates and concessions, and negotiate contract terms on your behalf. In most cases, there is no direct cost to your organization for hotel sourcing and contract negotiation, as hotels compensate me through commission.

Contact me directly to discuss your group and explore your hotel options.