From Reactive RFPs to Proactive Revenue Capture
With more than three decades in hotel operations, sales, and revenue management, Kristi White, VP of Reporting, Data, and Analytics at Groups360, has spent her career helping hotels optimize group business. In a recent conversation with dojo.live, she shared why the industry is at a turning point—one where automation and instant booking can unlock new revenue potential while freeing sales teams to focus on what matters most. Here’s how:
1. The Evolution of Group Business: Why Instant Booking is the Future
Kristi draws a strong parallel between today’s group booking shift and the rise of online leisure bookings in the early 2000s. Just as hoteliers once doubted travelers would book rooms online, many now hesitate to adopt instant booking for groups. However, adoption is accelerating at an unprecedented pace.
“We’re seeing the adoption of it double and triple every single year, much faster than we actually saw that contribution grow when the initial Expedias and those guys came into the place.”
Hotels that embrace instant booking early will gain a competitive edge—just as those who embraced online booking two decades ago.
2. The Group Booking Funnel: A Numbers Problem Hotels Must Solve
So why is instant booking a game-changer for group business? Traditional RFP management is riddled with inefficiencies, and Kristi’s numbers speak for themselves:
- Hotels only respond to 45% of RFPs, compared to 67% in other industries.
- Of those, just 5-7% convert—far below the 40-50% close rates seen elsewhere.
- “We have to figure out a better way to balance speed and thoughtfulness in how we respond.”
By shifting one-time business to instant booking, hotels can eliminate outright declines, reallocate resources, and focus on closing high-value RFPs.
3. Prioritizing High-Value RFPs by Automating One-Time Business
To optimize efficiency and avoid leaving money on the table, Kristi advises hotels to push one-time business (think SMERFs—Social, Military, Educational, Religious, and Fraternal groups) into instant booking whenever possible. By doing so, sales teams can focus on high-value RFPs that contribute to year-round occupancy and revenue.
A case in point: Hotels in Wilmington, NC, transformed their wedding room block strategy by eliminating manual booking. With a seamless self-service platform, they:
- Became the #1 hotel globally for instant bookings
- Generated hundreds of thousands of dollars in revenue—without sales intervention
- Upsold spa treatments, meeting rooms, and bar services to maximize total revenue
“I am of the mind that you never, ever, decline an RFP. Always respond with some type of rate and at least a couple of dates.”
4. How Instant Booking Can Drive Higher Rates Than Traditional RFPs
A common misconception is that instant booking leads to lower rates, but Kristi’s data shows otherwise:
“Rates coming via instant booking are often higher than what we see from RFPs because revenue management systems are agnostic to who or what the group is.”
Unlike human sellers, revenue management systems rely purely on demand forecasts, free from biases that lead to unnecessary discounts. The result? Higher revenue per group booking.
5. Preparing for the Future: Moving Toward Rate Parity
But even though rates coming through instant booking are often higher than those secured via RFPs, a key barrier to its adoption remains the rate disparity between online and sales-negotiated bookings. Hotels must eliminate these discrepancies to create a seamless pricing strategy.
“We’re going to get rid of the, ‘if they go online, they get a higher rate than if they talk to our sellers.’ That’s our last bastion of rate parity.”
Achieving parity will encourage planners to trust and utilize instant booking.
6. Rethinking Sales Incentives to Align with Instant Booking
The final challenge? Getting sales teams on board. Kristi suggests aligning incentives with instant booking to drive adoption:
- Compensate sellers for instant bookings that would have gone through RFPs.
- Measure success by total revenue impact, not just closed RFPs.
- Redefine sales roles to focus on strategic group contracts.
By making instant booking a revenue-generating tool rather than a threat, hotels can ensure sales teams embrace the shift.
How to Get Started with Instant Booking
The shift to instant booking is already happening. Planners are embracing the technology, and hotels must evolve to stay competitive.
✅ Identify segments ripe for instant booking (e.g., weddings without event space, small sports groups)
✅ Evaluate if your sales teams are incentivized to prioritize high-value business
✅ Review response times—hotels winning 90% of their RFPs respond in just over two days
Now ask yourself: When was the last time you reviewed your RFP strategy? Are you incentivizing the right business? And how can you streamline your booking process to convert more leads—faster?
Hotels that lean into automation, efficiency, and strategic incentives will not only win more business but also free up resources to focus on the most valuable opportunities. The question isn’t whether to adapt—it’s how soon you can start.
Let’s Keep the Conversation Going:
- Watch the full episode with Kristi White.
- Talk to Encora about technology partnerships that drive success.
- Follow dojo.live for more conversations shaping the future of hospitality.
