Let’s stop the busy work and start booking with purpose.
Cory Falter, president of Lure Agency and a die-hard ‘80s music fan, has been on the frontlines of hotel sales strategies long enough to spot a crisis when he sees one.
And right now, the group sales game? It’s broken.
In a recent conversation with Christine Malfair, a hospitality marketing veteran and founder of Malfair Marketing, the two tackled a growing problem plaguing hotel sales teams: dependence on third-party channels is draining profit, killing conversions, and leaving staff demoralized. Additionally, the current system fails to address the specific needs of corporate clients, who require tailored services and packages, such as flexible booking options and comprehensive meeting facilities.
“We’re obsessed with TripAdvisor reviews,” Falter says, “but we’re outsourcing the guest experience to people who don’t even know our brand.”
Relying heavily on third-party channels undermines the strategy of promoting direct bookings, which are crucial for increasing revenue and reducing costs.
Let’s unpack why the current system is failing and how a few smart moves can flip the script—from ghosted RFPs to booked-out calendars.
Let's Dive Into Effective Sales Strategies for Hotels
Ghosted, Commoditized, and Bleeding Margins in Group Bookings
If you’ve ever responded to 50+ RFPs and heard crickets, you’re not alone.
Hotels are relying too heavily on third-party group lead platforms—burning through sales resources, chasing low-converting leads, and being reduced to just another square-footage stat sheet.
“I didn’t realize how bad it was,” Falter says. “Some hotels have responded to thousands of RFPs and closed maybe a dozen.”
Sound familiar?
- You’re getting ghosted by planners.
- You’re spending hours replying to RFPs with <5% conversion rates.
- Your team is reactive, not proactive.
- You’re measured on KPIs that are barely tied to profit.
Now pile on platform fees, commissions, and lost data, and it’s clear: the RFP-first model is a leaky boat—and hotels are bailing with a coffee mug. The current sales process is inefficient and needs significant improvement to meet contemporary consumer demands.
Missed Connections and Michelle the Non-Planner
Here’s a fun fact (read: terrifying stat): 50% to 80% of people planning meetings today aren’t professional planners.
“They’ve never heard of attrition. They’re not using CVENT. They’re Googling ‘meeting space near me’ and hoping something makes sense,” Falter explains.
Meet Michelle—an executive assistant suddenly tasked with organizing a retreat. She’s stressed, overwhelmed, and armed with Google and maybe ChatGPT.
When she lands on your hotel’s website, what does she find?
An RFP form.
No contact info.
No FAQs.
No humans.
She bounces. And books somewhere else.
“Imagine being told to plan a multi-day event with zero experience and no guidance. That’s Michelle’s world,” says Cory. “And our websites are not helping potential guests who need more guidance.”
Build for Humans, Not Just Planners
Here’s the twist: most hotels already have the traffic. They just don’t have the right funnel.
Falter shares that some hotels are getting up to 70,000 monthly unique visitors, with 5-30% heading straight to the Meetings & Events page. That’s thousands of potential group inquiries. But they’re falling through the cracks because the site assumes everyone is a seasoned planner.
“People are on your site. They’re interested. They’re ready. And we’re blowing it by asking for 20 fields of information before we even say hello.”
Here’s what works:
Make it easy to raise a hand. Use a low-friction contact form: name, email, question. That’s it.
- Show your team. A smiling face builds trust faster than a bullet-pointed spec sheet.
- Create resources for non-planners. FAQs, simple video walkthroughs, clear CTAs.
- Respond like a human. Use personalized video replies, not generic attachments.
- Highlight your unfair advantage. Unlike brands, independent hotels can tailor their website and sales journey. Use that agility.
And don’t forget: direct group inquiries are commission-free. That’s margin you can reinvest into marketing, staff, or just keeping your salespeople sane.
The Bigger Opportunity: Reframing Revenue and Reclaiming Control with Direct Bookings
This isn’t just about group business. It’s a broader mindset shift from dependency to control.
As Malfair points out:
“OTAs are a distribution lever—not a lifeline. And your website is your most underutilized salesperson.”
Across both leisure and group segments, hotels are leaving money on the table—not because of lack of traffic, but lack of trust-building experiences.
From masked OTA emails to ghosted group leads, the cost of outsourcing guest acquisition is enormous:
- OTA commission = $250 per $1,000 booking
- Direct booking cost = $140 (including incentives)
- Repeat guests from OTAs = only 20%
- Database data loss from OTAs = 60-70% dead emails
That’s not a distribution strategy. That’s death by a thousand micro-fees.
The Revolution Is Already Happening
The good news? Change is underway.
Hotels that prioritize direct group leads are seeing:
- 30–50% conversion rates
- Shorter sales cycles
- Higher quality inquiries
- Reduced need for extra sales staff
- More control over guest relationships
“It’s not about blowing up the OTAs or RFP platforms,” Falter adds. “It’s about building a second engine—so you’re not flying on one.”
Want In?
Falter and the team at Lure Agency are rolling out Hotel Group Breakouts, a 4-session strategy series teaching sales and marketing teams how to implement this direct group strategy themselves. No smoke.
No mirrors. Just tools that work.
For hotels looking to reclaim cash from OTAs, download Christine’s Reclaim Your Revenue Blueprint.
“When you capture the guest’s heart,” Malfair says, “you capture their wallet.”
It’s time to stop chasing and start choosing. The traffic is there. The buyers are ready. You just need to show up like a hotel that gets it.
