Economies of Scale:


Avoid common mistakes:

You would think that the more business you are giving hotels, the lower the rate should be – quantity of scale, BUT in hotels there is a very fine line and this is often not the case.

Hotels work to achieve the best ‘average rates’ - so they can afford to sell a few rooms as ‘loss-leaders’ but only a few, otherwise it drags down their average rate. A good hotel will have demand, so they are likely to sell the rooms, therefore they will hold out for the ‘going rate’ for a larger group. The key is to know the quiet periods specific to each venue (this changes depending on venue location and style) and if securing a good price is critical for you, it’s a case of knowing which venues have the flexibility to negotiate.

We all know that hotels are businesses. They function just like most other businesses; to make a profit. Most hotels, particularly international chains, have complex revenue management systems in place which dictate rates per night based on historic occupancy.


Wendy has been organising corporate events for 18 years, and is the founder of meetings matter, a corporate venue finding service. She loves entertaining at home, and at work gets a kick when she is able to secure a venue she knows is going to be perfect for that event brief.

Follow Us
  • LinkedIn Social Icon
  • Facebook Basic Square
  • Twitter Basic Square
Recent posts