Europe’s hotel industry has been quietly rewriting the playbook for maximixing revenue from group bookings, meetings and events. While US hoteliers focus heavily on room rates, their European counterparts are leveraging every inch of their properties to turn spaces into profit centres.
Here’s the kicker: by the end of 2024, the European hotel market is projected to hit $114.40 billion, surpassing the US market’s $110.60 billion. That’s not just a number, it’s a signal that Europe’s strategic edge is delivering real results. The difference highlights an untapped potential in the US: smarter, more comprehensive revenue strategies.
So, what’s Europe doing differently? How are they transforming meeting rooms, event spaces and even F&B services into consistent revenue streams? And most importantly, how can US hotels adopt these practices to close the gap?
In this blog post, we’ll uncover Europe’s winning strategies and show you how to apply them to your property. From unlocking the hidden value in your spaces to automating group bookings and leveraging data, you’ll discover actionable insights to boost revenue and stay ahead in a competitive market.
Make every space work for you
While the US hotel market has long focused on maximising room rates, Europe has been perfecting the art of extracting value from every inch of hotel space. They’re exploring new revenue streams and adopting smarter strategies to maximise the full potential of their properties. This broader approach creates experiences that add value across the board.
As Joonas Ahola, CEO and Founder of Meeting Package, explained on the Modern Hotelier Podcast, “The key to driving revenue is not just about filling rooms but about seeing the entire hotel as an ecosystem where each part contributes to the overall success, especially in group bookings.” This mindset is becoming the cornerstone of Europe’s success and something US hoteliers can adopt to unlock new revenue streams.
Ways to maximize revenue from your hotel spaces
In Europe, hoteliers don’t just see a hotel as a collection of rooms—they see it as a living ecosystem. Every part of the property, from meeting rooms to F&B services, plays a role in driving revenue. This holistic approach allows them to maximize the full potential of their spaces and craft experiences that guests value.
For US hoteliers, adopting this mindset requires rethinking the way spaces are marketed and utilized. It’s not just about filling rooms; it’s about creating opportunities that add value at every touchpoint. By focusing on experiences rather than just spaces, you can unlock new revenue streams and enhance your property's appeal.
So, how do you start making every space work for you? Here are some actionable strategies inspired by Europe’s success:
- Offer All-Inclusive Packages: Design comprehensive packages that combine meeting spaces with services like F&B, AV equipment, or team-building activities. Bundling these offerings simplifies the decision-making process for clients and showcases the full value of what you provide, setting you apart from competitors offering standalone room rentals.
- Empower Upselling: Train your sales teams to highlight additional services that can enhance the client’s experience, such as upgraded catering options or premium accommodations for event attendees. These upselling opportunities not only boost revenue but also leave clients with a memorable, seamless experience that meets all their needs.
- Sell Experiences, not just Spaces: Shift the focus from simply renting out rooms to creating unique, tailored experiences. A client booking a meeting room shouldn’t feel like they’re getting just a venue. They should feel like they’re investing in an event that’s elevated by your thoughtful, curated offerings.
The difference lies in the details. With the right mindset and strategies, every inch of your property can become a revenue generator.
Group bookings get easier with automation
The next frontier in group bookings is automation, and Europe is already leading the way. According to Joonas Ahola: “Europe is about three to four years ahead of the US when it comes to automating group bookings and understanding total revenue management.”
Automation redefines how spaces are marketed and sold, creating a frictionless experience for clients and freeing up teams to focus on guest relationships. One approach is to implement an integrated booking system that combines room reservations and event space bookings into a single seamless process. By moving away from separate systems or spreadsheets, an all-in-one platform streamlines the entire booking cycle, allowing sales teams to save valuable time and concentrate on high-priority tasks.
Automating communication is another critical step. Set up automated email responses and reminders for booking confirmations, deposits, and cancellations to minimize administrative workload and maintain client engagement. Post-event follow-up emails can also be automated to encourage repeat bookings and gather reviews, ensuring that no client interaction goes unnoticed.
Hotels that embrace automation are already reaping significant rewards. Let’s explore how two European properties turned automation into a competitive advantage:
- Dolce by Wyndham La Hulpe Brussels
Dolce by Wyndham La Hulpe Brussels faced a challenge many hoteliers encounter – slow response times and manual processes that drained their team’s energy. So, they decided to automate. The results speak for themselves. After integrating real-time availability and online booking confirmation systems, they reduced booking request response times to just 21 hours (well below the European average of 32 hours). With automation handling much of the work, their instant booking confirmation rate climbed to nearly 80%, allowing the team to focus on guest relations and strategic tasks.
2. Plaza Premium Lounge Helsinki
Plaza Premium Lounge Helsinki saw similar success after implementing automation. The hotel was struggling to manage the high demand for meeting and event spaces while operating outside traditional office hours, so adopted an automated booking system through MeetingPackage. The impact? They were able to sell 70% of their event space revenue through online sales. One-third of their bookings came outside regular office hours.
Automation isn’t just a trend; it’s a necessity for staying competitive in today’s market. By implementing integrated systems, streamlining communication, and leveraging data, hotels can transform their group booking processes into efficient, revenue-driving engines.
Turn data into dollars
When you know your data, the opportunities practically leap off the page.
In Europe, it's not uncommon for hotels to track a guest's journey from the first inquiry to the post-event follow-up, all by using detailed data analytics. This helps hoteliers make informed decisions on everything – like tailoring room layouts for better guest flow or optimising staffing levels based on event sizes. These decisions aren’t based on gut feeling. They’re rooted in hard data to make sure that every dollar earned is a deliberate, strategic move.
On the other hand, many US hotels still rely on hunches and outdated methods so subtle gaps get overlooked, often without even realising it.
As Joonas puts it, “The challenge is that many hotels don’t track their group business well enough to spot the opportunities. They can’t say, with certainty, how many meetings they hosted last quarter, which means they’re probably missing trends that could inform their future decisions.” This lack of visibility means opportunities slip through the cracks.
How to utilise your data
Data is the most powerful tool you can have but only if you use it to anticipate, not react.
Start by tracking the habits of your group bookers. Are certain companies or organisations booking more often? Which event types tend to generate the most revenue? Analyse these patterns to offer hyper-targeted packages.
For instance, if tech companies frequently book meetings with specific room setups – like open-plan spaces for brainstorming sessions – develop a tailored package that includes these preferred layouts along with additional tech equipment, such as whiteboards, video conferencing tools or breakout zones. Customise the room experience to what you know your repeat clients are already requesting so you can improve their meetings before they even arrive.
Why sales and operations are a power duo
The secret to a smooth-running hotel is a collaboration between sales and operations. Joonas Ahola mentions, “In Europe, sales and operations teams collaborate closely, looking at group business from every angle – rooms, meeting spaces, F&B and beyond. They aren’t just aligned on goals, they’re acting as one, making data-driven decisions together to optimise revenue.”
This fluid partnership allows for creativity. For example, a sales team may learn that a particular group loves networking events after hours, so the operations team sets up an informal, after-event lounge in a space that would otherwise sit unused. They can introduce elements like interactive games or post-event discussions to add unexpected value and drive incremental revenue from underused spaces.
Another opportunity might arise when a sales team realises a recurring group prefers early-morning meetings that require breakfast setups in their meeting rooms. The operations team could anticipate this by pre-arranging breakfast catering and a quiet atmosphere with premium options like artisanal coffee or fresh juice add-ons. These enhancements elevate the group’s experience while creating upselling opportunities, too.
What can you do to improve cross-collaboration
To break down silos and get your departments working together, start by holding joint strategy sessions with your sales and operations teams to discuss upcoming group bookings and identify opportunities for collaboration. Implement a shared platform where both teams can access real-time data on bookings, room configurations and guest preferences. Encourage regular feedback loops between sales and operations after each event to continuously refine processes. Don’t shy away from using technology to automate communication between teams – this will keep everyone on the same page and boost efficiency across the board.
Success doesn’t come from standing still. The most innovative hoteliers embrace experimentation, adapt quickly and take calculated risks to discover what works best for their properties. By leveraging collaboration and technology, your hotel chain can also create a strategy that not only meets but exceeds client expectations.
Are you ready to take your venue sales to the next level?
