Hotel Banquet Halls: 7 Ways to Drive Profits for Hotel Banquet Halls
Hotel banquet halls are some of the largest revenue sources across the entire hotel industry. This idea is due to the fact that in order to use these spaces, clients must use other hotel amenities.
For instance, hosting events at banquet halls is easier when getting the events catered by hotel restaurants. Or, the best way to accommodate event attendees is to give discounts on hotel rooms.
From traditional marketing efforts to implementing hospitality software, there are many ways to boost profits for hotel banquet halls. Check out the remainder of this blog for all you need to know.
Hotel Banquet Halls: Definition and Examples
Hotel banquet halls refer to the event spaces inside hotels. They're usually rented out for a specific event, such as weddings, reunions, or conferences. Hotel staff can also decorate and arrange the event space to meet the client's needs. This makes it very versatile for hosting different types of special events.
Learning how to manage a hotel also requires you to know how to make the best use out of your space. This means that it's important to use your banquet hall(s) for public and private events. Some of the most popular uses for hotel banquet halls include:
- Bridal showers
- Baby showers
- Birthday parties
- School reunions
- Auction galas
- Corporate events
7 Ways to Drive Profits for Hotel Banquet Halls
Hotel banquet halls are a great choice for hosting events. But how can hotels drive profits to their maximum capacity? Check out the following seven steps to increase cash flow for hotel banquet halls.
1. Use an Online Booking System
An online booking system can take hotel banquet halls to the next level. Here's why:
Online booking platforms make it easy for guests to reserve time slots at an enterprise hotel. They'll no longer have to visit the business to make a reservation. In fact, they won't even have to make a phone call. The best part about this? It reduces work overload for the hotel staff.
Online booking channels also make the whole process more flexible for clients. They can leisurely view amenities, banquet spaces, and price tiers. Without a rush to make a decision, guests can choose the best option that fits their needs, vision, and budget.
2. Focus on Corporate Events
Hotel banquet halls can drive profits by focusing on corporate events. Whether guests book a corporate breakfast or a corporate dinner, they're very lucrative events. Plus, they cater to large crowds.
Corporate event hosting focuses on clients with high budgets. Plus, they often include a large guest list. This is the perfect recipe for a profitable event, regardless of the company. Research corporate event ideas for inspiration before offering a corporate meal to guests.
3. Use Additional Tech Solutions
Hospitality software companies are always releasing products that streamline hotel operations. When you can put standard processes on autopilot, it becomes much easier to be efficient. Over time, this improvement can lead to great financial savings.
For instance, kitchen technology can let every hotel chef be more timely. Or, hotel management staff can be productive when guests arrive.
- Hotel POS systems
- Hotel management software
- In room dining tablets
- Online reservation system
- Contactless room keys
4. Market the Banquet Hall
One of the best ways to showcase hotel banquet halls to the public is by using social media. Though you may be wondering how social media can work when different types of events are catered to different groups of people, it’s actually quite valuable.
Fortunately, targeted ads can help you speak to one niche market after the next. For instance, you can narrow down a Facebook campaign audience to just people who added an engagement status within the last six to twelve months. This feature is ideal for promoting hotel banquet halls for weddings
Or, if you target business leaders on LinkedIn with C-suite titles, you might be able to book more corporate events. In this case, you'd need to prioritize a completely different platform.
Try promoting features that you know are valuable to your customer profile. From menus full of local cuisine to luxurious amenities, this will all depend on each hotel. Luckily, this also means that you have ways to stand out amongst the crowd.
Once you know how to maximize a social media marketing strategy, it can be very powerful. Just ensure that you know how to calculate the social media ROI to track performance.
5. Offer Custom Packages
Offering custom packages is a sure way to sustain customer satisfaction. When hotels allow guests to pay for exactly what they want, they’re giving them more control over their purchasing decisions. In turn, they’ll prefer your hotel over others.
Packages can include a wide variety of options. From catering menus to different time slots, there’s a lot that goes into banquet events. By displaying the options within the POS system, clients will be able to easily plan their dream event.
6. Implement Upselling and Cross Selling Efforts
One of the best parts about hotel banquet halls is that there are numerous selling points. From in-house catering services to guest room blocks after events, there are many products to sell.
Independent and hotel franchises can boost profits by adding products to the booking process. And whether the hotel does this manually or online, upselling and cross-selling can take place.
For example, if a couple books banquet hall space for a wedding, offer catering, decorating, and prenuptial services. Or if a company is using the space for a work retreat, offer conference rooms and an exclusive happy hour.
Consider your entire product and service line. Then, create a way to add each one to any event guests can book. You'll soon notice that cart values are much higher for hotel banquet halls.
7. Implement a Premium Pricing Strategy
A premium pricing strategy is a popular marketing tactic across the entire hospitality industry. By making prices slightly higher than competitors, it creates the illusion that a business is superior. Over time, this technique can increase profits.
Carefully research before implementing a premium strategy. Not only do you want to consider similar business models, but those within your geographic region. Location can play a big role in pricing. So, review this data thoroughly.
Though consumer data reports show that premium pricing strategies can be effective, taking them too far can have adverse effects. For example, if hotel banquet halls price events too high, they can decrease sales.
Frequently Asked Questions About Hotel Banquet Halls
The operations and policies of hotel banquet halls can vary from one hotel to the next. For independent hotels, packages can be very flexible, while the hotel franchise cost might make things more strict at chains. With this in mind, it's vital to learn all about this business sector. Read on to do just that!
Can Guests Bring Their Own Catering to a Hotel Banquet Hall?
Some hotel businesses may allow outside catering, but many require that guests use the hotel's services. If you're planning an event, it's important to check with the hotel before making any arrangements. This will save you from encountering any time and financial losses.
What Is the Capacity of Hotel Banquet Halls?
The capacity of a hotel banquet hall varies depending on the size of the space. The seating arrangements can also change a banquet hall's capacity. Generally speaking, hotel banquet halls can accommodate anywhere from 100 to 1,000 guests. Also, many hotels have multiple banquet halls to accommodate different party sizes.
How Much Does It Cost to Rent a Hotel Banquet Hall?
The cost of renting a hotel banquet hall can vary depending on numerous factors. The hotel's locations, the banquet hall's size, seasons, and add-ons, can impact the cost. Prices of banquet hall rentals can range from a few hundred dollars to thousands of dollars or more.
What Are the Advantages of Hosting An Event In Hotel Banquet Halls?
The key advantages of hosting events in hotel banquet halls include:
- All-inclusive space
- In-house catering services
- Room blocks for guests
- Ample parking spaces
What Is Typically Included In a Hotel Banquet Hall Rental?
When guests rent a hotel banquet hall, the following items are typically part of the package:
- In-house catering services
- A decorating and set-up team
- The use of the space for a limited time
- The use of furniture and linens
- Music and lighting equipment
Hotel banquet halls serve a great purpose for individuals and corporations. Luckily, there are many ways to turn them into revenue drivers. Once you implement these steps, you'll be on your way to a much more lucrative hotel business.