Fairs and events, a “Cost & Logi” interview with Pontus Berner
An interview with Pontus Berner, Co-Founder & Managing Partner from berner+becker revenue management
Mr. Berner, ahead of the ITB and Internorga trade fairs, many hoteliers are asking themselves how high they can raise their prices without alienating their clientele. What advice do you have?
Hoteliers should not be afraid to raise prices well above normal levels. Guests understand that during major fairs, concerts, and sporting events like the Olympics (“mega-events” as I like to call them), rates increase significantly, and usual “value for money” expectations no longer apply. Hoteliers should also not hesitate to lead the price increase, even if competitors have not yet reacted.
How high rates can go depends on the event and overall demand. Analysing the event (or comparable past events) using historical and market share data is essential to define realistic ADR and RevPAR targets.
The key is setting the right starting price. Selling the first part of the inventory too cheaply can result in significant revenue losses.
Trade fairs and other events are among the key revenue drivers in the hospitality industry. How significant is the business generated by major events for the sector?
In general, I would go as far as to say that fairs and mega-events are the most important revenue opportunities for hoteliers, and can often make the difference between a loss and a profit at year-end. In some cases, these events attract more visitors than the city can accommodate, creating massive incremental demand that spills over into surrounding areas.
In your estimation, to what extent do establishments utilize the calendar for trade fairs, congresses, concerts, and sporting events to generate additional business?
Of course many hoteliers, both independent as well as the big chains, are aware of the positive impacts of these events. But many still fail to truly set the right targets and optimise the RevPAR to the best extent possible. For that you need a professional strategic revenue manager.
Also, many of these events can indeed be tricky to foresee. For that hoteliers should be on their toes and many have their tricks of how to stay informed.
To what extent has the event business evolved in recent years?
After Covid, we saw a surge in demand for leisure-driven mega-events. People’s renewed appetite for travel and experiences has made them more willing to spend significant amounts on leisure activities and related trips. While mega-events continue to attract record numbers—sometimes even surpassing major trade fairs—trade fairs have now recovered as well.
As a result, destinations such as Frankfurt and Hannover are performing strongly again thanks to fairs and congresses, closing the gap to pre-Covid levels. Leisure destinations like Berlin and Munich, of course, recovered even earlier.
In your estimation, to what extent do establishments utilize the calendar for trade fairs, congresses, concerts, and sporting events to generate additional business?
Of course many hoteliers, both independent as well as the big chains, are aware of the positive impacts of these events. But many still fail to truly set the right targets and optimise the RevPAR to the best extent possible. For that you need a professional strategic revenue manager.
Also, many of these events can indeed be tricky to foresee. For that hoteliers should be on their toes and many have their tricks of how to stay informed.
To what extent has the event business evolved in recent years?
AI can support hotels in many ways, both across the guest journey—from the research phase to post-stay communication—as well as in marketing and revenue optimisation. For example, using AI to detect and flag newly announced concerts and events can be highly valuable.
When it comes to pricing and revenue optimisation, hotels should optimise their performance with Revenue Management Pricing Systems. However, like any technology, such systems require strategic human guidance alongside to be truly effective, especially for events. For events with limited or no historical data, analysing demand, setting the right starting price, and closely monitoring performance throughout the booking window is essential to maximise revenue.
An interview with Pontus Berner, Co-Founder & Managing Partner from berner+becker revenue management
Mr. Berner, ahead of the ITB and Internorga trade fairs, many hoteliers are asking themselves how high they can raise their prices without alienating their clientele. What advice do you have?
Hoteliers should not be afraid to raise prices well above normal levels. Guests understand that during major fairs, concerts, and sporting events like the Olympics (“mega-events” as I like to call them), rates increase significantly, and usual “value for money” expectations no longer apply. Hoteliers should also not hesitate to lead the price increase, even if competitors have not yet reacted.
How high rates can go depends on the event and overall demand. Analysing the event (or comparable past events) using historical and market share data is essential to define realistic ADR and RevPAR targets.
The key is setting the right starting price. Selling the first part of the inventory too cheaply can result in significant revenue losses.
Trade fairs and other events are among the key revenue drivers in the hospitality industry. How significant is the business generated by major events for the sector?
In general, I would go as far as to say that fairs and mega-events are the most important revenue opportunities for hoteliers, and can often make the difference between a loss and a profit at year-end. In some cases, these events attract more visitors than the city can accommodate, creating massive incremental demand that spills over into surrounding areas.
In your estimation, to what extent do establishments utilize the calendar for trade fairs, congresses, concerts, and sporting events to generate additional business?
Of course many hoteliers, both independent as well as the big chains, are aware of the positive impacts of these events. But many still fail to truly set the right targets and optimise the RevPAR to the best extent possible. For that you need a professional strategic revenue manager.
Also, many of these events can indeed be tricky to foresee. For that hoteliers should be on their toes and many have their tricks of how to stay informed.
To what extent has the event business evolved in recent years?
After Covid, we saw a surge in demand for leisure-driven mega-events. People’s renewed appetite for travel and experiences has made them more willing to spend significant amounts on leisure activities and related trips. While mega-events continue to attract record numbers—sometimes even surpassing major trade fairs—trade fairs have now recovered as well.
As a result, destinations such as Frankfurt and Hannover are performing strongly again thanks to fairs and congresses, closing the gap to pre-Covid levels. Leisure destinations like Berlin and Munich, of course, recovered even earlier.
In your estimation, to what extent do establishments utilize the calendar for trade fairs, congresses, concerts, and sporting events to generate additional business?
Of course many hoteliers, both independent as well as the big chains, are aware of the positive impacts of these events. But many still fail to truly set the right targets and optimise the RevPAR to the best extent possible. For that you need a professional strategic revenue manager.
Also, many of these events can indeed be tricky to foresee. For that hoteliers should be on their toes and many have their tricks of how to stay informed.
To what extent has the event business evolved in recent years?
AI can support hotels in many ways, both across the guest journey—from the research phase to post-stay communication—as well as in marketing and revenue optimisation. For example, using AI to detect and flag newly announced concerts and events can be highly valuable.
When it comes to pricing and revenue optimisation, hotels should optimise their performance with Revenue Management Pricing Systems. However, like any technology, such systems require strategic human guidance alongside to be truly effective, especially for events. For events with limited or no historical data, analysing demand, setting the right starting price, and closely monitoring performance throughout the booking window is essential to maximise revenue.
