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1/7/2018
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CRACKING THE CODE ON ROOM BLOCK PRACTICES
with Christine “Shimo” Shimasaki, CDME, CMP
Who am I?
•a tipster•an advocate•an enhancer
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Who are you?
•a planner•a hotelier•a CVB•a housing company
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Inspire you to be a
strategistR.B.O.
Ideas for taking action
Today’s Roadmap
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”Finding the most effective way to direct and leverage
your resources”Richard Rumelt, ProfessorUCLA Anderson School of Management
What does it mean to be a strategist?
6 www.2Synergize.com
“It means deliberately choosing a different set of activities to deliver
a unique mix of value.”Michael Porter, ProfessorHarvard Business School
What does it mean to be a strategist?
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1. Understand the problem and articulate the factors affecting the problem.
2. Use your judgement on prioritization and opportunities to kill several birds with one stone.
3. Develop a plan of action and take action
4. Measure success or failure
Good StrategyOmissions = Bad Strategy
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Adapted from:Henry Ennis
Y&R ANZ
www.2Synergize.com
Adapted from Henry Innis, Y&R ANZ
Generic factors effecting room block erosionRoom block management is a strategy
Lower rates on OTAs
Attendee preferences (brands, AirBnB)
Last minute activity (post cut-off)
Planners are risk adverse; will block as less as possible
Hotels reluctance to fully participate
in room blocks
Attendees lack of understanding about the purpose of the room block
Corporate hotel agreements
Room block sold out
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Take Stock– Find the Opportunities
and Collect Data
Source: www.empowerMINT.com
Review the Destination’s Hotel Inventory
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0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Philadelphia Convention & Visitors Bureau
Visit Austin
Visit Baltimore
Visit Houston
Visit Salt Lake
Explore St. Louis
Visit Indy
Travel Portland (OR)
Greater Boston CVB
Los Angeles Tourism & Convention Board
Meet Minneapolis
VisitDallas
Visit PITTSBURGH
Grapevine Texas Convention & Visitors Bureau
Detroit Metro CVB
Louisville CVB (KY)
Destination Cleveland
Visit Charlotte
Visit Savannah
Memphis Convention & Visitors Bureau
Experience Columbus
VISIT Milwaukee
Experience Kissimmee
Visit Spokane
Hotel Rooms Within One Mile of the Convention Center
Big Fish in Small Pond 01
Maybe Even Measure the Ratio of Overnight Attendees to Rooms Available and Track YOY
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Source: STR’s hotelnewsnow.com
Monitor New Hotel Development
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03 New Inventory
Source: STR hotelnewsnow.com13
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14 Source: STR hotelnewsnow.com
Small Fish in Big Pond
CC Sales Strategy Booking Guideline Example
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Booking Window Min # of Peak Rooms Required
Less than 3 years No minimum required
3-5 years prior 2,500
5-7 years prior 3,000
7-10 years prior 3,500
>10 years prior 4,000
02CC Booking Guidelines 05
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Popular Leisure Destinations
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06 Popular LeisureDestinations
Requires a multi-faceted game planRoom Block = Event $$$ 04
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Partner with your CVB to understand the deltaHow many rooms does YOUR event really use?
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ROOM BLOCK
ROOM DEMAND
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But events are all so differentPercentage of events and degree of rooms booked outside the room block
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60-80%
40-60%
20-40%
Less than 20%
17%
25%
31%
27%
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Source: Tourism Economics “Event Room Demand Study”, 2015
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Partner With Your CVBsFor an overnight room demand analysis
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Just released to CVBs today!
Example assessmentThe Risk Management Society - 2017
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10,483
6,728
ROOM DEMAND
?ROOM BLOCK
PICK‐UP
ALL ATTENDEES
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Example assessmentThe Risk Management Society - 2017
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10,483
6,728
ROOM DEMAND
ROOM BLOCK PICK‐UP
ALL ATTENDEES All Attendeesminus
Attendees within 75 milesequals
Overnight Attendeesdivided by persons per room
Peak Room Demand
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Room demand analysisThe Risk Management Society – 2017 Philadelphia
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Rethink everything about marketing & communications
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Link the processes of housing & registration
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Break Paradigms‐‐Continue to sell rooms past cut‐off
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Cut-Off Date
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Key benefits of Hybrid Housing Solutions (my term!)Let’s make it easy to attend
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1 Reduce any friction
2 Continue to be a housing solution
3 Capture additional data from last minute attendees
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Example of post cut‐off reservations report
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Courtesy of aRes Travel (contact [email protected])*
* Disclosure: 2synergize, Inc. is an affiliate of aRes Travel
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Keep informed of local factors impacting occupancy
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Depend on local expertiseCVBs are your answer to staying on top of local impacts
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Another Event Leisure or Business Demand Local Event
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Don’t ignore pirates and poachers
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Events Industry Council (EIC) resourcesAPEX – Room Block Poaching Workgroup http://www.eventscouncil.org/APEX/roomblocks.aspx
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Protect the shoulder nights
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Room block bell curve managementManage year-to-year changes
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Considerations from Year-to-Year:• Timing of program & program content
• Regional market access
• Air access, especially departures
• Geographic location
• Destination appeal
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Maintain and share pace reports
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Sample pace reportCourtesy of RIMS and Connections Housing
36 www.2Synergize.com
Inspire you to be a
strategistR.B.O.
Ideas for taking action
The Future Roadmap
1/7/2018
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Q&A? Keep in Touch! I love this stuff!
[email protected]@shimosan
Today’s Handout: www.2synergize.com/about
