Michael McCartan is VP of EMEA at revenue management software specialist IDeaS Revenue Solutions

Group travel has entered a new era, one that¡¯s defined by caution, compression and recalibrated value. As hotels grapple with persistent post-pandemic operational costs, unpredictable global events, and evolving client demands, event planners must have their finger on the pulse of what¡¯s going on behind the scenes. These changes aren¡¯t temporary ¨C they¡¯re the foundation of a more selective, data-driven approach to group demand that requires corporate event planners to adapt.

A fragile and shifting environment

The economic outlook remains volatile. Labour shortages, inflation, rising energy costs and uncertainty in demand are pushing hoteliers to reassess every aspect of their group strategy. Where once high-value bookings were considered stable, even these are now vulnerable to last-minute cancellations due to external factors such as tariffs or geopolitical disruptions.

For instance, one hotelier recently discussed how they faced the abrupt postponement of a ?150,000 international corporate event after the organising company imposed a sudden pause on global business travel ¨C a painful example of how quickly external developments can derail even the most meticulously curated plans.

Hotels today are being more cautious in their approach. There¡¯s a renewed focus on sticking to agreed cancellation terms and avoiding the leniency that became common during earlier periods of uncertainty. The margin for error has shrunk, and every booking is expected to pull its weight both financially and operationally.

Redefining value in group business

Hotels are also taking a more sophisticated approach to how they evaluate group demand. Revenue management systems are now being used not just to set prices, but to evaluate whether accepting a group might displace other bookings that could generate more revenue ¨C helping hoteliers make smarter, more profitable decisions. These systems simulate different booking scenarios and recommend pricing strategies based on factors like lead time, pickup pace and forecasted demand.

As a result, planners may find that securing preferred rates or flexible terms now requires more than simply confirming room blocks. Proposals that highlight ancillary spend, repeat business potential, or operational efficiencies are increasingly favoured.

Lead times are shrinking ¨C and so is margin for error

The typical 12-to-18 month booking horizon for large events is now trending closer to 6-to-12 months, even for major conferences. For smaller hotels these lead times are even narrower at two to three weeks. This tightening of timelines compresses hotel availability and pricing flexibility while having a significant impact on forecast accuracy and operational planning.

Internally, hotels are re-evaluating RFP (Request for proposal) processes by tracking response times and conversion rates more closely, and often turning to direct client conversations to clarify expectations when quick turnarounds aren¡¯t feasible.

At the same time, technology-driven pricing adjustments mean rates can shift quickly based on real-time data inputs. For planners, agility in decision-making is becoming a competitive advantage.

Regional meetings and long-term planning

There is a noticeable trend toward regional meetings as businesses look to cut costs, reduce risk and align with sustainability goals. This is creating more demand for venues that serve local markets. Many hotels are responding by balancing short-term tactical activity, such as localised promotions, with efforts to lock in longer-term group bookings that offer revenue stability into 2026 and beyond.

But despite advances in instant booking platforms, adoption remains limited for events of more than 30 attendees. Booking larger events still hinges on human dialogue, relationship management and customised negotiation.

Practical guidance for planners

For event planners navigating the 'new normal', staying ahead means aligning with the new hotel mindset ¨C and that means a number of things.?Demonstrate total group value by moving beyond room nights and highlighting total expected spend, service use, and relationship potential.

Next, remain flexible. Venues value adaptable groups, so offering alternate dates or variable patterns can tip decisions in your favour. Also aim to plan early and decide confidently. Expressing interest early is helpful but following through decisively is essential in a compressed booking environment.

You'll also benefit from understanding the role of Revenue Management System (RMS) tools. These platforms can also provide valuable insights into total demand by market segment, group size and lead times. Accept that pricing may evolve rapidly, especially close to arrival.

Lastly, as in any business arrangement, maintain strong relationships.?Hotels increasingly prioritise groups that are easy to do business with. Transparent, trust-based partnerships matter more than ever.

The landscape for group business has fundamentally changed. Hotels are under pressure to drive higher profitability while managing greater uncertainty. For event planners, this is both a challenge and an opportunity. By understanding how hotels are reshaping group demand strategy, planners can create more aligned, efficient and successful partnerships ¨C ones that endure even as the market continues to shift.