An Empirical Investigation into Convention Hotel Demand and ADR Trending

Abstract

Through this empirically based convention hotel–convention bureau study the authors analyze revenue demand, room rate, and convention bookings among convention hotels in a mid-west urban market. Multivariate linear regression models are used to understand the relationships between revenue, room rate, and market segmentation performance of transient and group rooms. Findings suggest convention hotel revenue management processes in particular must evaluate the value and contribution factors associated with convention bureau production and its impact on group and transient segmentation strategies. Of particular importance is the relationship between group/transient inventory allocation and pricing relationships.

KEYWORDS:

• hotel revenue management
• convention hotels
• convention bureaus
• group segmentation–ADR performance