For hoteliers, balancing group and transient bookings is a constant challenge. Both segments offer unique advantages and play crucial roles in a hotel’s revenue strategy.
But which one is better? The answer depends on factors like occupancy goals, revenue management strategies, and market conditions. Let’s explore the benefits and challenges of each to determine the right mix for your property.
Understanding group and transient bookings
Group bookings: These involve multiple rooms booked together, often for conferences, weddings, or corporate events. They provide steady revenue and predictable occupancy.
Transient bookings: These are individual reservations made by business or leisure travelers, typically through direct bookings or online travel agencies (OTAs). They allow for dynamic pricing adjustments and last-minute revenue opportunities.
Pros and cons of group bookings
✅ Pros:
Predictable occupancy and revenue stability.
Lower acquisition costs compared to transient bookings.
Additional revenue streams from event spaces, catering, and other services.
Potential for long-term relationships with corporate clients and event planners.
❌ Cons:
Lower flexibility in pricing, as group rates are often negotiated in advance.
Possible displacement of higher-paying transient guests during peak periods.
Risk of cancellations or contract negotiations that can impact revenue.
Pros and cons of transient bookings
✅ Pros:
Higher average daily rate (ADR) potential, especially during peak seasons.
Greater pricing flexibility with dynamic revenue management.
Opportunity to optimize last-minute occupancy
Increased customer engagement through loyalty programs and direct bookings.
❌ Cons:
Less predictable revenue compared to group bookings
Higher acquisition costs due to OTA commissions and marketing expenses
Vulnerability to market fluctuations and seasonality
Finding the right balance
Rather than choosing one over the other, successful hotels implement a balanced strategy:
Revenue management: Use data-driven forecasting to allocate inventory efficiently between groups and transients.
Seasonality considerations: Prioritize transient bookings during high-demand periods and group bookings during off-peak seasons.
Segmentation strategy: Develop targeted pricing and promotions to maximize revenue from both segments.
Technology and automation: Leverage hotel revenue management systems to adjust pricing dynamically based on demand and availability.
Conclusion
There is no one-size-fits-all approach to group versus transient bookings. A hotel’s ideal mix depends on its unique market position, target audience, and revenue goals.
By understanding the strengths and challenges of each segment and implementing a flexible strategy, hoteliers can optimize occupancy, increase revenue, and drive long-term profitability.
About Duetto
At Duetto, we create cloud-based software to unlock revenue and profit potential for hoteliers, leveraging our years of hospitality and technology experience.
Built with an Open Pricing methodology, we bring all your data together so you can capture dynamic demand, make optimal inventory decisions, and increase efficiency in real-time.
Globally trusted, more than 6,300 properties in 60+ countries are using our products. These include GameChanger for yielding and distribution, ScoreBoard for reporting and forecasting, BlockBuster for group business, Advance for real-time, 24/7 revenue management, and OpenSpace for function space optimization.
Named the world’s #1 revenue management system in 2025, 2024, 2023, and 2022 in the HotelTechAwards, we’re dedicated to becoming the revenue and profit operating system for the hotel industry.
Duetto — greater in every way.
For more information, please visit duettocloud.com.
Julia PedrolContent & PR ManagerDuetto
