Ever lost a group booking because you couldn’t reply fast enough? You’re not alone. Hotels lose 30–70% of group RFPs because sales teams lack the time or resources to respond. That’s a significant revenue loss, often scooped up by faster, more responsive competitors. Slow replies, missed follow-ups, and generic proposals cost hotels valuable room block deals daily.
Big hotel projects can run into serious money problems without steady group business. For example, the Marriott Marquis in Washington DC is a large hotel with 1175 rooms. The project faced construction delays and rising costs, which pushed the budget from $500 million to $750 million. Because of these setbacks, Marriott and its partners said the hotel wouldn’t be profitable without public funding. This shows how important it is for hotels to secure group bookings early to stay financially stable, especially during unpredictable project timelines.
To win more of this high-value business, hotel sales managers need to move quickly, price competitively, and stand out. That means using smart technology like video tools and automation to speed up responses and deliver more engaging proposals.
In this blog, you’ll learn how to set competitive group rates, craft stronger deals, and use video proposals to increase your chances of closing the sale.
What Hotel Room Blocks Are and Why They Matter
Room blocks are one of the most effective ways for hotels to secure group business and forecast occupancy. Yet many hotels don’t fully leverage them to drive revenue. Here’s what they are and why they matter.
What Is a Room Block?
A room block is a set number of rooms held for a group at a fixed rate. These are often used for events like conferences or company meetings. They make it easier for guests to book and help hotels plan.
Why Room Blocks Help Your Bottom Line
Room blocks help fill rooms during slow times and attract spending on food, drinks, and meeting rooms. They also give hotels a better idea of what to expect regarding bookings.
The Sales Manager’s Daily Problem
Balancing walk-in or single-night guests with group bookings is tough. Sales teams also get swamped with RFPs. Many RFPs need fast, clear replies, or the deal goes elsewhere.
Getting Ready for the Deal
A strong offer starts with smart preparation. Before responding to a group inquiry, ensure your proposal is backed by numbers and aligned with the client’s needs.
Use Data to Back Up Your Offer
Before you make any promises, take a close look at your numbers. Review how similar groups have booked in the past, what your competitors are charging, and how your calendar looks for the requested dates. If the same group type typically picks up 80% of their block, you can use that to guide your offer.Â
If a competitor nearby is offering lower rates during a shoulder season, decide whether you need to match or focus on adding more value. Smart data use lets you build offers that are both realistic and profitable.
Know What You Won’t Change
Set your boundaries before the client asks. This could include minimum revenue guarantees, how you’ll handle no-shows or unused rooms (attrition), and how much notice you need for cancellations. If you figure this out early, you won’t waste time going back and forth during negotiations. It also helps you protect your margins while staying consistent across clients.Â
Understand What the Client Needs
Not every group is focused on the same thing. Some care most about price, others about the experience, and many are under pressure to make fast decisions. Ask upfront what matters most.Â
Are they planning a high-stakes event that requires VIP-level service? Are they working with a strict budget? Do they need a final proposal in 24 hours? The more you know about what they’re trying to solve, the easier it is to pitch a package that feels right.Â
Avoiding Common Pitfalls
Even strong proposals can fall short if you’re not careful. These are the most common mistakes hotels make and how to avoid them.
Starting with Too Big a Block
Asking for a large room block upfront can scare off clients, especially if they’re unsure about final attendance. Instead, begin with a smaller number and grow it as interest builds. Video proposal tools can show you who’s watching, what they’re engaging with, and when to offer more rooms confidently.
Slow Response Times
Speed is crucial in responding to RFPs. According to a study by the Incentive Research Foundation, most planners expect hotels to respond to RFPs within a few days, and 50% of hotels report they respond on average within a day or two. Implementing automated response systems can ensure timely replies, enhancing the chances of securing bookings.
Flat, Untracked Proposals
PDFs don’t show if they’ve been opened or what caught the client’s eye. With video and deal room tools, you can track what planners view and for how long. This data helps you follow up with the right message at the right time, making every interaction more relevant and effective.
Better RFP Responses with Hippo Video
Traditional RFP processes can feel outdated and slow. Hippo Video gives hotel sales teams a faster, more engaging way to win group business. Here’s how.
The RFP Response Crisis
Static PDF proposals are often overlooked; slow responses mean lost group bookings. The market requires standing out with quick, engaging replies, which is helpful and necessary to win business.
The Solution: Automated Video Proposals
Hippo Video empowers sales teams to transform RFPs into dynamic, personalized video proposals that grab attention and help event planners choose your property more easily.
How Hippo Video Works
- Fast Proposals: Convert RFPs from email or platforms like Cvent into personalized video proposals within minutes, without delays or generic documents.
- Hippo Video’s Deal Room lets you share everything in one place, including your personalized video proposal, supporting PDFs, virtual property tours, and other key resources through a single, easy-to-access link. It provides clients with a clean, interactive space to review all the necessary information to make an informed decision, without having to dig through emails or attachments.
- Track Views: Gain detailed insights into how prospects engage with your proposal. See who watches your videos, which sections they focus on, and how long they spend on each part. This precise engagement data is crucial during negotiations—it shows you what the client values most, so you can customize your follow-ups, address concerns directly, and time your outreach perfectly to close deals faster.
Save Time with Automation
An RFP lands in your hotel’s inbox. In seconds, Hippo Video’s AI reads it, understands the requirements, and creates a personalized video proposal, ready to send. This process can be fully automated for small or low-value RFPs, eliminating the need for human effort. That means your team stays focused on the bigger, high-value deals that truly need their attention, while Hippo Video handles the rest.
Why Video Closes More Deals
A quick video feels personal. It shows your property in a way a PDF never can. It also helps you stand out from the many generic offers planners get every day.
The Problem
A large hotel management company with over 80+ properties across 26 states struggled to keep up with growing RFP volume and rising guest expectations. Their teams were stretched thin, and response times were slipping. They needed a faster way to follow up on RFPs and personalize the guest journey, without overwhelming their staff.
The Solution
They started using Hippo Video to bring automation and personalization to scale. Here’s how it worked:
- Video Follow-Ups After Every RFP: Instead of long follow-up emails, they used short, AI-generated videos tailored to each prospect’s needs, timeline, or event type.
- Avatar Videos Throughout the Guest Journey: Personalized welcome videos from a virtual GM at booking, friendly mid-stay messages offering upgrades or deals, and thank-you videos after checkout helped improve the overall experience.
- Full Engagement Tracking: They could see who opened each video, how long they watched, and whether they clicked on offers, making it easier to prioritize follow-ups and fine-tune their approach.
- No Manual Recording Needed: Staff didn’t have to film anything. AI avatars handled everything, saving hours of work and boosting team efficiency.
The Results
- 3x more RFP engagement
- 80% fewer follow-up questions
- Sales cycles cut by 60%
- NPS increased by 66%
And perhaps just as important, sales teams enjoyed sending video messages because they didn’t have to record them manually.
Wrapping up
Winning group bookings isn’t just about competitive pricing anymore. It’s about responding quickly, personalizing your pitch, and making your proposal stand out. Hippo Video helps sales teams do exactly that.
Hippo Video speeds up the sales process and increases your chances of winning by turning RFPs into engaging video proposals, automating follow-ups, and tracking how prospects interact with your offer. It cuts through the noise of static PDFs and slow responses, giving your team the tools to respond faster and sell smarter.
Hippo Video gives you the edge if you’re looking to book more room blocks, shorten sales cycles, and boost team efficiency.
Try it for free and see how it can transform your hotel sales process.
FAQs
Q1. Why do hotels lose so many group RFPs?
Hotels often lose group RFPs due to slow response times, generic proposals, missed follow-ups, and lack of competitive pricing or value-added offers. Quick, tailored replies increase chances of winning business.
Q2. What is attrition in hotel room block contracts?
Attrition refers to the allowed percentage of unbooked rooms in a block without penalty. If the group books fewer rooms than the agreed minimum, they may have to pay fees for unused rooms.
Q3. How far in advance should a hotel sales manager negotiate room blocks?
Room blocks and RFP responses should ideally be handled months in advance to secure availability, especially for peak seasons or large events. Early engagement also allows better pricing and planning.
Q4. How can data help negotiate hotel block rates?
Analyzing past booking patterns, competitor rates, seasonal demand, and group booking history allows sales managers to set realistic, profitable rates and tailor offers that meet client needs.
Q5. What are common pitfalls when negotiating group rates and how can they be avoided?
Common mistakes include overcommitting on room blocks, slow responses, untracked proposals, and unclear terms. Setting clear boundaries, responding quickly, and tracking client engagement can prevent these issues.
Q6. What role do video proposals play in RFP negotiations?
Video proposals make responses more engaging and personal. They show the property visually and explain benefits clearly, helping hotels stand out from competitors relying on static PDFs.
Q7. How can hotel sales teams automate RFP responses?
Using platforms like Hippo Video, sales teams can automate replies for simple RFPs, personalize messages at scale, and focus on high-value deals, increasing efficiency and closing rates.