Unlocking the Hidden Value of

Hotel Function Space with Next-

Generation Sales and Catering
Here’s what you need to know
Contents
Introduction 2

Function Space: Maximizing Value 5

Top Challenges 6
Next-Generation Solutions 7
Overview if Key Features 8
Improving Sales Management 9
Improving Inventory Management 10
Improving Planning Management 11

Function Space: Key Success Factors 12

Automating the Proposal Process 13
Implementing Performance Metrics 14
Utilizing Revenue Management 15

Next-Generation Sales and Catering: A Success Story 16

A few key takeaways 17

Recommendations 19
A few key takeaways 20

2
Introduction
Industry pundits have long predicted the imminent decline of group sales for business
events at hotels, resorts and conference centers. They believed that technology
innovation would have a transformative effect on regional and global meetings. They
reasoned that next-generation video conferencing, in particular, would dramatically
reduce the need, and the desire, for companies to host and facilitate in-person
industry conferences, corporate gatherings and other events.

As it turns out, these pundits could not have been more wrong. In this era of digital
connectedness, business people still want to shake hands. They still want to “meet
and greet” face-to-face. They still want to gather in physical locations to learn, share,
network and conduct business. Technology falls short of fully replicating the
experience — and benefits — of human interaction in a physical environment.

To be sure, companies slashed travel budgets and scaled back the number and size of
the events they hosted as well as the number of events to which they sent their
employees during the economic recession. But skies have long since turned blue
again for hotels, resorts and conference centers offering function space for business
events. In recent years, meeting attendance has soared higher than ever.

In fact, the Center for Exhibition Industry Research reported a 3.8 percent increase in
the exhibition industry's performance in 2016. According to the "2016 Meetings and
Events Forecast" from Carlson Wagonlit Travel and the "2016 Global Meetings and
Events Forecast" from American Express, room rates are growing by 4.3 percent
annually. Hotels and resorts added almost 100,000 new rooms in 2016 alone. Today,
demand for function space for business events is growing at up to quadruple the rate
of supply, with the daily cost per attendee increasing by a whopping 4.5 percent.

3
With the addressable market for event hosting estimated to be $5 billion worldwide
across the hospitality sector, the opportunity to drive revenue growth and
profitability through group sales and catering has never been greater. For mid-size
and large hotels with function space assets, between 25 and 50 percent of revenues
can come from the group and events business. According to research conducted by
Starfleet Research for this study, no hotel operators at mid-size and large hotels
have seen their events revenue decline over the past five years while almost half (45
percent) have seen “significant” or “dramatic” growth. More than one-third (40
percent) report that their events revenue has increased by more than 25 percent.

With this upsurge in demand, the lead times for attendee registration and venue
contracts have shrunk considerably. In fact, some hotels in high-demand markets are
no longer willing to hold event space without a nonrefundable deposit when
responding to availability requests. According to sources, the average lead time is
currently 18 weeks in North America and only slightly less in parts of Europe.
Increasingly, event planners are having to work far in advance of the event date to
secure desirable properties. Many hotel and resort properties now have the clear
upper hand in group sales negotiations.

Hotels and resorts with function space may well have an opportunity to boost their
overall property revenue, given the escalating demand for function space and the
fact that many of them have already maximized the value of their guest rooms
through sophisticated revenue management capabilities. Success generally starts
with a next-generation technology solution that can empower sales and catering
personnel. Success also requires having in place the right organizational resources,
business processes and performance metrics.

4
Function Space: Maximizing Value

Sections
• Top Challenges
• Best-in-Class Solutions
• Overview of Key Features
• Improving Sales Management
• Improving Revenue Management
• Improving Event Planning Management
Top Challenges
Hotels, resorts and conference centers with in-demand function space for
business and non-business events are inundated with requests for information
from event planners. These event planners are required to simultaneously
compare multiple hotel venues for cost and suitability. To do their jobs
effectively, and make decisions quickly and in an informed manner, they need
fast, accurate and detailed information related to not only function space
availability but also guest rooms availability, menu and package options, pricing
options, and any number of other considerations.

General-use software, manual processes and even basic specialized tools of the
past make it nearly impossible for hotels, resorts and conference centers to
respond to requests — sometimes, several at a time — in a comprehensive and
timely manner, let alone in a competitive manner. Further, their efforts are often
hamstrung by duplicate data entry and disjointed technology components. A
lead capture system, a property management system (PMS) and a revenue
management system, as well as contract generation, billing and reporting
applications, may operate as standalone data siloes and fail to “talk” with one
another. Poor technology integration impedes a hotel or resort’s ability to
participate effectively in the critical request-for-information process.

Lack of information access leads to other common challenges. For example,

national or regional sales offices need real-time access to function space
inventory and pricing information, without which they are hard pressed to sell
effectively. With antiquated processes and legacy systems, this information is
oftentimes unavailable to some of the people who need it most. Also, because
each property in a brand may operate through independent systems and
channels, hotels, resorts and conference centers may have access to only a
fragmented view of guest accounts, leading to information inefficiencies, lack of
sales coordination, and the inability to maximize the value of corporate accounts.

72%

Percent of hotels and

resorts that cite lack
of technology
systems integration
as one of the top
challenges with
optimizing
performance of the
sales and catering

6
* Research findings are derived
from the Q1 2017 Starfleet Research
survey on Sales and Catering.
Next-Generation Solutions
There is no shortage of challenges related to group sales and function space
management. To address these challenges, and to maximize the value of overall
property assets, more hotels, resorts and conference centers are harnessing the
power of next-generation sales and catering solutions. The best of these solutions
offer sophisticated event and guest relationship management capabilities that make
all the difference in the world in terms of execution of complex event and banquet
space bookings management as well as the actual business outcomes

These solutions come with customizable configuration options to fit the needs of
any hotel or resort. Features generally include flexible booking options for managing
any number of events simultaneously as well as tools that enable, for example,
customizable catering packages and instant menu creation. The solutions provide an
unprecedented level of resource inventory control. From the all-important financial
perspective, users can use advanced reporting tools to track expected event
revenue, margins and final consumption based on customizable revenue types.

Suddenly, the record of information about all client accounts and sales activities,
including the assignment of responsibility for proposal follow-up, contract
paperwork and email communications, becomes cohesive and easily accessible. By
seamlessly sharing data between the sales and catering function and the property
management system, managers and staff can also access information about all
group — and individual— guest spend on reservations and activities in one solution.

7
Overview of Key Features
A next-generation sales and catering solution can be a real game-changer for hotels,
resorts and conference centers with function space inventory that is consistently
underutilized or not otherwise living up to its full potential in terms of revenue
contribution. The best of these solutions focus on driving operational efficiency and
effectiveness across all aspects of the group sales and event management process.

The chart below outlines some of the basic features of a next-generation sales and
catering solution, along with a brief description of the benefits, that decision makers
can generally expect to be included in a next-generation solution. It is by no means
a comprehensive list, and some decision makers may have any number of additional
features they require in order to run their function space businesses effectively.

Feature Description

Account, • Supports sales force activities by collecting profile

contact, and information to speed bookings and data analysis
activity • Provides a comprehensive sales manager dashboard for all
management customer production
• Time management features include traces and graphical
views of appointments and tasks for the sales team
Account and • Provides single-point access to key information in a
sales manager graphical overview
dashboards
Potentials • Define the potential value of corporate clients compared to
their actual production
Business blocks • Easily manage any event, from small leisure and social
groups to large, complex industry conference and
convention groups
Catering and • A complete set of features for providing catering services
events and scheduling events
capabilities • Flexible configuration options include menu planning, item
engineering, and packages
• Manage event requirements ranging from coffee breaks to
gala dinners
Function diary • Graphical display of events by function space provides drill-
down features for in-depth details
Event posting • Post group charges directly to the posting master with a
click of a button; No double entry due to the integration
with property cashiering module
• All taxes and service charges are automatically calculated
and posted
Reports and • Use dozens of out-of-the-box templates and/or generate
data queries custom reports for a comprehensive activity and
performance overview
Interfaces to • Includes interfaces to digital signage applications 8
third-party • Connects to group and event booking engines via web
systems services
Improving Sales Management
Like airplane seats and concert tickets, hotel guest rooms are a perishable
commodity. Hotels and resorts do not have the option at the end of the year to hold
a fireside sale for all of the guest rooms that went unsold during the previous
months. The same can be said for meeting and banquet function space inventory.

That being the case, hotels and resorts need to be in a position to drive centralized
and optimized group sales operations all year long. They need to ensure that sales
teams know how much function space inventory they need to sell and where they
need to sell it in order to reach maximum capacity and achieve full revenue
potential. The sales team needs tools that allow them to know, at a glance, how
meeting and banquet function space inventory ties into the broader guest rooms
inventory and current availability for any given date.

Because function space inventory, like guest room inventory, is subject to constant
change, the solution needs to interface with the property management system and
other technologies in a seamless and, preferably, real-time fashion. Effective sales
management depends on immediate and accurate access to up-to-date inventory
information as well as pricing information. A next-generation sales and catering
solution is designed to automate the process across all channels and locations.

In a nutshell, the solution should enable sales managers to:

• Quickly and accurately capture customer requirements for sleeping rooms,

function space, catering, and other services
• Identify candidate properties, as well as generate property-specific quotes and
contracts
• Track revenue throughout the sales cycle, from opportunity identification to
contract generation
• Automatically adjust room rates, rental fees, and food and beverage prices using
a high-performance pricing engine based on seasonal, day-of-week, and other
property-specific pricing rules
• Make informed decisions about group opportunities based on an understanding
of the historical revenue contributions of similar functions
• Recognize the revenue implications of a customer-chosen product mix, using
advanced revenue management capabilities
• Maximize asset utilization by conducting real-time evaluations of every group
opportunity against a preset profit threshold

Importantly, event sales functionality in a next-generation solution also generally

supports the transition of an event from the sales team to the event team
responsible for planning and execution. After the sales team has completed its task
of capturing all relevant event information during the sales process, the information
can be accurately and seamlessly transferred to operations personnel responsible for
overseeing all details of the actual event, reducing redundant information entry and
streamlining the end-to-end process.

9
Improving Inventory Management
The group and function space sales process tends to be far more complex than the
individual guest room sales process. Next-generation inventory management
capabilities help address this complexity. By employing rules-based algorithms to
calculate maximum capacity timeframes for function space inventory, for example, the
technology can optimize for profitability in situations where multiple event organizers
are vying for the same space at the same time. From an economic perspective, it
might not make sense to book 25 people in a salon room for a Saturday night dinner
when the event is more than 90 days out. A larger, more profitable booking
opportunity may be likely to emerge in the interim. The solution, therefore, might
recommend declining that initial booking opportunity. Sales managers need to be
able to quickly and easily make these types of decisions based on an analysis of
available inventory and timeframe.

They need to be able to quickly price inventory and, if appropriate, block it. For multi-
property operations, that means centrally managing inventory across a variety of
locations. An inventory engine can maintain a tabulation of all function spaces within
properties, manage combinations of function spaces, allow for overbooking, interact
seamlessly with event sales, and record and manage the booking of group guest
rooms. The function space inventory engine enables property sales managers to:

• Establish reservations based upon category space—as opposed to specific space—

helping hotels and resorts to optimize space utilization by postponing as long as
possible the allocation of specific space to fulfill reserved functions
• Assess suite usage as both function space and sleeping rooms
• Assign various levels of authorization to different categories of meeting rooms at
the property level, to fit local demand and reservation patterns
• Intelligently manage inventory for configurable rooms to maximize utilization of
function space
• Enhance productivity and enable real-time decision-making through ready access
to rich, searchable event information delivered via a robust, dynamic interface

86%

Percent of medium-size
and large hotels and
resorts that regard
function space inventory
engine as “a key success
factor” for increasing
overall revenues and
profitability

10
* Research findings are derived
from the Q1 2017 Starfleet Research
survey on Sales and Catering.
Improving Planning Management
Before the advent of sales and catering solutions with robust event planning and
execution features, event planners used what was essentially a giant coloring book as
their event planning blueprint. The so-called “function diary” section was a graphical
representation of a conference room, ballroom or other banquet or event space
along with all of the adjoining areas that would be utilized. Event planners would
outline all the different spaces, resources and timeslots needed for a given client.
They would cross-check information and speculate on how much revenue would
likely be generated from each entry in the paper booklet.

Event planning and execution engines replace the coloring book with a modern
graphical interface while eliminating the manual work as well as the guesswork
related to layout, resource needs and costs. To that point, event planners can
immediately calculate costs — say, the cost of serving guests a continental breakfast
— and determine financial commitments. The engines can calculate resource needs
so that the banquet director can know what to plan for in terms of staffing as well as
in the kitchen. Obviously, different meal services (e.g., buffet versus plated meal)
require difference resources. Event detailing, vendor interaction, and billing can
happen from a single application interface, streamlining the event management
process and improving the ability to deliver flawlessly executed events.

An advanced event planning and execution engine makes it possible to:

• Improve planning and execution efficiency by providing a single application

interface for event detailing, product and service management, inventory
management, and billing management
• Track, coordinate, and exchange critical information for executing an event, both
internally among groups within an organization and externally with event
customers
• Expedite operational procedures by centralizing product and pricing definitions,
automatically generating operational details, and linking property inventory to
event operations

83%

Percent of medium-size
and large hotels and
resorts that regard an
event planning and
execution engine as “a key
success factor” for
increasing overall
revenues and profitability

11
* Research findings are derived
from the Q1 2017 Starfleet Research
survey on Sales and Catering.
Function Space: Key Success Factors
Spotlight on a few ways to maximize success with sales and catering
• Automating the proposal process
• Implementing performance metrics
• Utilizing revenue management
Automating the Proposal Process
Next-generation sales and catering solutions include an impressive array of proposal
automation features that have had a transformative impact on the function space
proposal process. In the past, meeting planners would have to spend countless
hours visiting properties, making phone calls, meeting with salespeople, and
manually completing paperwork before receiving a formal proposal. Today, meeting
planners expect that hotels and resorts will email professionally-designed and
customized sales and catering proposals almost immediately following their request.

Hotels and resorts are able to meet those expectations thanks to next-generation
sales and catering solutions that make it easy to create, distribute, and manage
proposals for room-only groups, business conferences, weddings, and catering
groups without re-entering data. Sales managers simply choose a template. The
“proposal cloud service” automatically assembles a new proposal with client and
contact information, room requirements, meeting facility requirements, catering
specifications, and any number of other details.

For hotels, resorts and conference centers, integration with the database that
supports a property cloud service helps to maximize efficiency. Sales managers can
prepare multiple distinct, branded proposal templates that can be configured for
various size events and designed based on the kinds of business they handle. Design
tools simplify the creation of customized templates and make it easy to incorporate
logos, hotel photo gallery, video tours, flash animations, external links, and
attachments. Using a proposal-building interface, a hotel can select the language
and proposal template and choose the email message that will be sent along with
the proposal link. Merge codes make it easy to create content that is automatically
customized for each client and booking. This information is pulled directly from the
database and the data is dynamically refreshed each time the proposal is accessed.

With the best solutions, proposals are easy to create and distribute using an intuitive
proposal-building interface. The interface should allow the proposal’s room grid and
catering events sections to be laid out in matrix format. For catering events,
personnel should be able to pick either a summary or detailed view—the latter of
which should show booked resources, such as menus and AV equipment. It should
be easy to attach customized notes as well as links to web resources, such as the
hotel website, local attraction websites, and virtual tours of facilities, as well as links
for printable attachments, such as sample contracts, menus, and hotel brochures.

The system should also make it easy to deliver a personalized email with a link to a
PDF of the proposal to the prospect or client. An “active proposals” page should
track proposal progress. Active proposal information should, at the very least,
include the account name and booking ID; the date the proposal was sent; the
proposal expiration date; the date the proposal was last opened by the client; and
the name, phone number, and e-mail address of the client contact. An archive of
completed proposals (that is, those that have reached their booking decision date)
should be kept for reference in the archive screen.

13
Implementing Performance Metrics
Most hotels and resorts have well-established performance metrics for tracking and
measuring guest room inventory. The most common of these is revenue per
available room (RevPAR), which is calculated by either multiplying the average daily
rate (ADR) by occupancy or by dividing the total guest room revenue by the total
number of available rooms and then dividing that number by the number of days
in a given time period. Additional metrics, such as costs per occupied room (CPOR)
and gross operating profit per available room (GopPAR), take into account not only
the amount of revenue generated but also the actual operational costs. These
metrics, which, arguably, paint a more accurate picture of guest room inventory
performance, are quickly gathering steam.

Metrics, or key performance indicators (KPIs) for tracking and measuring function
space inventory tend to be used far less frequently. Some hotels and resorts may
not to use them at all. Yet, without the right metrics in place, it can be hard for an
organization to instill a culture focused on revenue improvement, let alone analyze
trends, such as ones related variations in demand, that can reveal insights into new
revenue growth opportunities. Accurately benchmarking performance
improvement over time of what may be the property’s most valuable asset after
guest room inventory is an exercise in futility without specialized metrics in place.

The most common metric in this area is function space utilization (FSU), which is
calculated by dividing the area of available function space by the area of function
space actually utilized. FSU provides a historical view of the utilization of function
space on a per-day basis. Layering on event-related details such as whether a space
was sold at full or partial capacity, and looking closely at event type indicators (e.g.,
meal, meeting or other), can reveal additional insights into utilization.

One metric that may provide a better read on how effectively a property is selling
function space inventory in both low- and high-demand times, and show the actual
financial outcomes, is profit per available space / time. It is calculated by dividing
the area of available space by the profit from the actual event. Some hotels, resorts 94%
and conference centers are also looking at profit per occupied space / time, which
also seeks to determine how efficiently the space is used from a profit perspective.

Percent of hotels that

“strongly” or “very
strongly” agree that
relevant metrics like
function space
utilization are necessary
in order to track and
measure results and
drive continuous
performance
improvement

14
* Research findings are derived
from the Q1 2017 Starfleet Research
survey on Sales and Catering.
Utilizing Revenue Management
Hospitality revenue management has evolved by leaps and bounds in recent years.
While the related strategies and technologies have been primarily applied to guest
rooms, more and more hotels and resorts are now thinking in terms of “total revenue
management” and moving beyond the “rooms-only” approach. Given the extent to
which meetings and events business can contribute to overall revenue, it only stands
to reason that a next-generation sales and catering solution should integrate third-
party capabilities for optimizing function space revenue.

As with guest rooms, revenue management for function space means leveraging
demand-based pricing and predictive models to maximize RevPAR. Still, there are key
differences, including the fact that the capacity of function space can change based
on layout, resulting in differences in profit potential. Also, ancillary revenue from, for
example, food and beverage sales can impact that profit potential. The sale of guest
rooms bundled with function space can also impact transient and previously-
contracted business, requiring recommendations on whether or not to displace
business and how to yield the most profit for the hotel or resort as a whole.

Further complicating matters is the fact that function space can be used multiple
times by different groups during a given period. Also, unlike guest rooms, function
spaces can be sold in different configurations for different types of events. Each event
presents a different mix of revenue types and a different profit profile such that two
events can have the same total revenue not be equally profitable. Variations in the
actual space and services along with the uneven nature of group demand makes it
challenging to apply standard revenue management principles and practices.

Only now are tools for applying advanced revenue management tactics to function
space inventory beginning to make an impact. Enabled by advanced forecasting
models and sophisticated analytical modeling that delve deep into demand patterns
and pricing strategies, these tools hold enormous potential when it comes to turning
the dial on group events revenue growth. 21%

Percentage of hotels
and resorts that
currently utilize
hospitality revenue
management systems in
their efforts to optimize
function space revenue
and profitability

15
* Research findings are derived
from the Q1 2017 Starfleet Research
survey on Sales and Catering.
Next-Generation Sales and
Catering: A Success Story
Case Study: Edwardian Hotels London
Edwardian Hotels London is a collection of
11 Radisson Blu Edwardian, London hotels
in prime locations across London, Heathrow
and central Manchester; The May Fair Hotel
and a collection of restaurant and bar
brands. The group has a versatile range of
meeting and event spaces that
accommodate 2 to 700 people.

The event spaces are designed with all the right ingredients for successful meetings,
perfectly located for transport links and attractions – and all come with
complimentary, secure, multi-device Wi-Fi, excellent AV technology and food from
our restaurants. Whether you hold a meeting at The May Fair Hotel or any Radisson
Blu Edwardian, London hotel, we aim to orchestrate your event flawlessly.
Edwardian Hotels London are also engaged in a major development in Leicester
Square, incorporating a luxury lifestyle hotel, restaurants, bars, spa and cinema.

Most Edwardian Hotels London properties are popular for business and social
events, including weddings, drink receptions, press and product launches, AGMs and
intimate private dining events to name a few. All meeting and event spaces are
equipped with state-of-the-art presentation and communications technology,
offering multi-device Wi-Fi as well as dedicated and fully trained hotel staff ensuring
efficient operations. The destination restaurants offer bespoke, flexible menus and
are available on-site for any event. Edwardian Hotels London has earned a
reputation for delivering exceptional and consistent service for both business and
social events. “Our meetings promise is simple,” the company states. “We offer
flexibility, efficiency and reliability.”

Edwardian Hotels London owes at least part of its success in delivering on this
“meetings promise” to its hospitality technology infrastructure – in particular, its
advanced sales and catering management solution. In 2011, the company
implemented OPERA Sales & Catering for event management operations. The next-
generation solution is seamlessly integrated with the company’s Property
Management System and other hospitality technologies across the enterprise.

According to Avi Schlagman, General Manager of Meetings and Events at Edwardian

Hotels London, the events business accounts for more than 10 percent of the
company’s overall revenue on a group level – not a small contribution, given the size
and scope of its overall operations. He notes that upwards of 50 to 60 hotel staff use
the sales and catering management solution at any given time.

“Everyone now has access to all the information they need in order to perform at a
high level,” he says.

Equipped with powerful analytics, reporting tools and real-time booking engines,
OPERA Sales & Catering provides a unified view and comprehensive account of all
function space business operations across all 12 properties in the hotel collection. In
addition, flexible options enable customization of the solution to fit the unique
needs of each individual property. Aided by the solution’s intuitive features and
graphical screens, hotel staff across different departments and functions quickly
achieved proficiency in its operation.

17
Advanced features include fully customizable catering packages, instant menu
creation and resource inventory control. The function diary includes multiple viewing
options and drill down features that, according to Schlagman, provide a dramatic
improvement over previous systems in terms of driving efficiency in event planning
and coordination.

Also impressive are the solution’s sales management features, which include flexible
booking options for multiple conference and meeting rooms and multiple events.
Because the solution provides access to all relevant data on a real-time basis,
account managers and sales reps can develop effective sales strategies with easy
data sharing among the hotel sales offices and PMS or regional offices and hotels.

Regardless of location, account managers and sales reps gain single-point access to
vital information they need. Identical customer account information, availability and
controls are shared throughout the enterprise and are archived for future reference.

The benefits are obvious: If, for example, a group that hosted a meeting at one
Edwardian Hotels London property now wants to rebook at a different property with
the same parameters, there is no need to start from scratch.

“If a customer wants the exact same meeting setup that they had at a previous
meeting at a different property, then we can simply copy and paste that booking,”
Schlagman says. “All the details are readily available. We were not able to do that
with our previous system.”

For his part, Schlagman relies on OPERA Sales & Catering for tracking an array of
financial performance metrics, including expected event revenue, margins and final
consumption based on customizable revenue types.

“I can easily analyze the performance of individual hotels, including booking

conversions and function space utilization,” he says. “I can also take a holistic view of
what’s going on in meeting and events for the entire group.”

Built-in business intelligence dashboards and ad-hoc analysis capabilities allow

senior management to generate valuable insights about their function space
operations as well as the sales and catering market as a whole. They can identify
emerging trends, make comparisons and focus on business areas that may require
attention.

Edwardian Hotels London prides itself on the enormous success that its meetings
and events business has enjoyed over the past 40 years. But the company’s quest for
continuous performance improvement across its sales and catering operation is
never-ending. And it knows that sustaining such success and revenue growth lie in
embracing hospitality technology innovation.

“We’re not resting on our laurels,” Schlagman says. “We’re constantly investing in
technology upgrades. With every upgrade comes more functionality and better
reporting capabilities that can help improve our event management operations.”

18
Recommendations
A few key takeaways to keep in mind
A Few Recommendations
The following are a few recommendations to keep in mind when researching and
assessing options for a next-generation group sales and catering solution – and,
also, for maximizing the value of the solution once it has been implemented.

Make the business case based on expected financial outcomes. Any

investment in hospitality technology needs to be justified on the basis of cost
reduction and/or revenue growth. The business case for upgrading group sales
and catering capabilities is easy to make given the ability to increase group sales
productivity and function space utilization through faster proposal processing,
better visibility into available inventory, reduced manual data entry, etc. Decision
makers should understand that, when properly implemented, a next-generation
solution can have an immediate impact on overall financial performance.

Focus on technology integration. Greater architecture and interface flexibility,

the widespread adoption of industry standards for software development, and
the proliferation of middleware solutions have made it easier than ever to
integrate hospitality technologies. It’s important to ensure that the data
architecture of the sales and catering solution can be tightly integrated with the
property management system, POS system, revenue management systems and
other relevant technologies, with minimal hassle and expense. Seamless platform
interoperability and compatibility will allow managers and staff across all parts of
the organization to gain a unified view of group events and manage all aspects of
the guest experience to better meet expectations and execute on requirements.

Ensure that the solution includes all desired features and ample flexibility.
With most next-generation sales and catering solutions, event teams can manage
everything from food and beverage to audiovisual equipment and linens to
recreational activities using the same application. Most solutions have menus and
packages capabilities with functions that include multiple pricing options,
revenue breakouts, asset tracking and inclusive options for service charges and
tracking. But not all solutions offer the same level of flexibility, and that can make
a big difference in terms of day-to-day productivity. Consider the flexibility that Research Note: In Q1 2017,
Starfleet Research conducted
may be desired of an event function diary. Such flexibility may include the ability an online survey consisting of
to view room and space availability on one screen with multi-day viewing options. multiple choice questions to
It may include the ability to filter spaces by type, location, area, or attendees. It capture the perspectives of
industry practitioners with
may include the ability to view events by number of attendees and setup style, firsthand experience with
and view available spaces for multiple properties at once. group sales and catering
management. Some of the
research findings are
Focus on revenue management. By integrating sales and catering programs
highlighted in this publication.
into revenue management systems, it becomes possible to make inventory and In total, 107 qualified survey
pricing decisions based on a demand picture that includes guest rooms, function respondents participated (42%
space and ancillary spend. Sales managers can know the optimal time to release staff, 38% managers and 17%
senior executives; 17% small
function space based on dynamic pricing that analyzes segment profitability hotels, 46% mid-size and
during periods of high and low demand. They can make data-driven decisions on limited service hotels and 37%
whether to accept or decline business. Function space revenue management can large and full-service hotels;
61% North America, 26%
be extremely complex due to long lead times and large wash factors. There are Europe and 13% other).
multiple calculation challenges related to future pricing projections and total
revenue contribution. But with recent technology innovation, more hotels and
20
resorts are now cracking the code on function space revenue optimization.
About Starfleet Research
Starfleet Research benchmarks best
practices in technology-enabled
business initiatives in the hospitality
industry. Our independent and
unbiased research helps decision
makers make smarter decisions.
Hospitality IT executives read our
premium content assets, which include
Smart Decision Guides™, benchmark
reports and co-branded eBooks.
Starfleet Research is the IT market
research arm of Starfleet Media,
publisher of Hotel Technology News.
Contact Starfleet Research
6650 Northwest Highway, Suite 213
Chicago, IL 60631
www.starfleetresearch.com
research@starfleetmedia.com
About Oracle Hospitality
Oracle Hospitality offers a range of
software, hardware and related services
– including a leading portfolio of cloud
solutions – designed for the hospitality
industry. With more than 35 years of
experience in developing property
management and point-of-sale systems,
Oracle Hospitality offers best-in-class
technology to help our customers
elevate the guest experience, streamline
operations and enhance profitability –
all while reducing the cost and
complexity of IT.
Contact Oracle Hospitality
7031 Columbia Gateway Drive,
Columbia, MD 21046
www.oracle.com/hospitality
oraclehosp_ww@oracle.com