As we move through 2025, group travel has emerged as one of hospitality’s most promising segments.

According to data from WP Travel, tourism growth in 2024 increased by over 17% compared to the previous year, with group tours showing particularly robust expansion. For hoteliers looking to maximize revenue and occupancy, understanding and catering to group travelers has become a strategic imperative, especially as people increasingly seek meaningful shared experiences.

Understanding group tours: Types, benefits, and market potential

Group tours bring multiple travelers together for a shared journey, typically covering transportation, accommodations, activities, and sometimes meals under one booking.

Today’s group travel landscape is remarkably diverse. Adventure enthusiasts join hiking, biking, and water sports tours for shared thrills. Cultural travelers immerse themselves in local traditions and cuisines.

Niche groups book special interest tours through companies like Atlas Obscura to explore unconventional experiences. Educational tours, corporate retreats, family reunions, and SMERF groups each bring their unique dynamics to the hospitality space.

• Adventure Groups: Enthusiasts joining hiking, biking, and water sports tours seeking shared thrills and outdoor experiences

• Cultural Travelers: Groups immersing themselves in local traditions, heritage sites, and authentic cuisine experiences

• Special Interest Tours: Niche groups booking through companies like Atlas Obscura to explore unconventional experiences and hidden gems

• Educational Tours: Student groups, alumni associations, and lifelong learners traveling for knowledge acquisition

• Corporate Retreats: Business teams seeking team-building, strategy sessions, and professional development

• Family Reunions: Multi-generational gatherings requiring diverse accommodation options

• SMERF Groups: Social, Military, Educational, Religious, and Fraternal organizations with specific accommodation needs

Hoteliers have compelling reasons to court these groups. Group bookings fill multiple rooms at once, creating predictable revenue streams with longer lead times than individual bookings. This helps hotels forecast demand and fine-tune pricing strategies accordingly.

“Tour and Travel groups are essential to a successful mix of business for a property. Often travel companies and wholesale accounts contract multi year agreements which can stretch throughout a whole year. This will include peak and non-peak dates.”Rachael Vaden, Director of Revenue Management at Lighthouse

Tour groups often travel during shoulder seasons, helping maintain steady occupancy when business might otherwise slow down. From a revenue management perspective, these bookings significantly lift RevPAR by filling rooms that might otherwise sit empty.

How group travel gets booked: Key channels hoteliers must monitor

Understanding how group travel gets booked is essential for capturing this valuable market. Different types of groups use different booking channels, and hotels need visibility across these platforms to maximize their chances of securing this business.

Travel agents: Still influential in group bookings

Despite ongoing digital disruption, specialized travel agents remain influential in group tour bookings. These professionals use their expertise and connections to craft tailored itineraries for groups with specific needs or interests.

Travel agents typically maintain relationships with hotels they trust and favor properties offering competitive commission rates, easy booking processes, and reliable service.

To win business through this channel, develop group-specific rates and packages that agents can easily sell. Create dedicated website sections with key information agents need – this streamlines the booking process and signals your commitment to working with them.

Clear communication channels for managing group reservations make a tremendous difference. When agents know they can quickly get answers about room configurations, accessibility features, or special requests, they’re more likely to send business your way. Some hotels find that slightly higher commission rates for group trip bookings create effective incentives that deliver strong returns on investment.

“Travel agents booking tour groups can be rare. Usually those bookings are through Tour operators. Travel agents are usually booking wholesale rates for smaller leisure groups with under 10 room nights on peak. Think small family or friend groups. Wholesale rates are usually a flat rate by season.”Rachael Vaden, Director of Revenue Management at LighthouseTour operators: Building valuable long-term partnerships

Tour operators build comprehensive travel packages combining transportation, accommodation, activities, and often meals. They typically maintain relationships with several hotels in each destination to accommodate different budgets and preferences.

“Travel agents and Tour companies dominate the space and will work directly with hotels to craft agreements. These clients will not book any dynamic rates. Flat ‘net’ rates are almost always required so that they mark up any operational or add-ons offered by the company.”Rachael Vaden, Director of Revenue Management at Lighthouse

Establishing successful partnerships with tour operators requires:

• Creating agreements with competitive rates for guaranteed room blocks

• Highlighting your property’s unique features that align with the operator’s audience

• Understanding the specific demographics of groups before confirming bookings

• Providing practical amenities like motorcoach parking and efficient check-in procedures

• Hosting “fam trips” for operators to experience your property firsthand

“These tour operators talk amongst one another. How hotels treat their travelers is really the test of how successful the account is going to be,” notes Vaden. “As a former sales manager working with major tour operators, I experienced situations with international companies needing flexibility of check-in and checkout times due to changes or delays with international flights.”

Understanding group demographics is equally essential before confirming bookings. Friend groups or individuals typically want a larger number of two-bed room types, while couples prefer single-bed options. 

Your property’s room type mix becomes an important consideration for meeting client expectations and can serve as a rate bargaining chip. Age demographics matter too – if hosting senior travelers at a property without elevators, ensuring ground floor accommodations becomes a necessity.

Many successful hotels host “fam trips” (familiarization trips) for tour operators to experience their property firsthand. These visits let operators evaluate your facilities, service quality, and overall fit for their customers, often resulting in long-term booking relationships that deliver consistent business.

Personal planners: The group leaders driving decisions

Many group trips – particularly family reunions, celebrations, and friend getaways – get organized by one dedicated person within the group. This “group leader” researches options, coordinates with members, and finalizes arrangements for the entire group.

These planners typically rely on OTAs, direct hotel websites, and phone calls to secure accommodations. Make sure your property appears prominently on major OTA platforms with clear group-friendly filters and tags. Create a user-friendly group booking process on your website with straightforward information about room blocks and amenities to encourage direct bookings.

Train your reservation staff to handle group inquiries with personalized attention. This creates positive first impressions that drive bookings. Offer planning tools and resources, such as sample itineraries and information about day trips from your location, to support these often-overwhelmed planners and position your property as a helpful partner.

Some hotels have found success with referral programs that reward past group leaders for bringing in new business. These programs acknowledge these individuals’ influence in their communities and create loyal advocates who generate additional bookings.

3 tips to meet the needs of tour groups

Meeting tour group needs requires thoughtful planning and the right amenities. Here’s how to enhance your property’s appeal and increase your chances of securing this valuable business.

1. Offer discounted rates

Group travelers expect better pricing when booking multiple rooms. A recent study found that 78% of group tour organizers rank competitive rates as their top consideration when choosing accommodations. Create tiered discount structures based on the number of rooms booked, offering clear incentives for larger groups.

Value-added packages including meal vouchers, activity discounts, or transportation services can enhance your rates’ appeal without necessarily lowering prices. These additions create greater perceived value while potentially generating revenue in other departments. For last minute group bookings, consider offering mobile-only rate discounts to fill your remaining inventory.

Balance competitive pricing with profitability. While discounts are expected, carefully analyze your costs and local market conditions to determine rates that attract business without unnecessarily cutting into your margins. Effective hotel revenue management involves finding that sweet spot where competitive group rates still contribute meaningfully to your bottom line.

2. Provide flexibility with early check-ins and late checkouts

Group travel often involves complex logistics with arrivals and departures that don’t align with standard hotel schedules. Accommodating these timing needs significantly enhances the guest experience and positions your property as truly group-friendly.

Flexible check-in and check-out times reduce stress for tour guides and participants while enabling smoother transitions between activities. This flexibility becomes particularly valuable for groups with transportation schedules outside standard hotel hours, like early morning flight arrivals or late evening departures after day tours.

Train your front desk staff to manage staggered arrivals efficiently, ensuring the arrival experience remains positive regardless of when group members reach your property. This operational efficiency requires planning but creates guest satisfaction and competitive advantages that justify the investment. Alternatively, you can introduce a keyless entry system or self-service solution to provide 24-hour check-in and checkout.

3. Create communal spaces

Group travelers value opportunities to gather, socialize, and share experiences together. Thoughtful communal spaces enhance the travel experience while creating memorable moments that distinguish your property from competitors.

Flexible meeting rooms that adapt to different activities provide value for both formal gatherings and casual socializing. Outdoor areas with comfortable seating, shade, and features like fire pits or BBQ facilities create natural gathering spots where group members can relax and connect during their downtime.

Private dining spaces for group meals create celebration opportunities while respecting other guests’ privacy needs. These spaces need not be elaborate – even a small, well-designed room with flexible seating can serve multiple group functions throughout the day.

Ready to transform your group travel strategy?

While understanding group travel needs is essential, making truly informed decisions requires comprehensive market intelligence. In today’s competitive landscape, data-driven strategies aren’t optional – they’re necessary for staying ahead.

Anticipating demand fluctuations allows for more strategic resource allocation, ensuring your property is properly staffed and prepared for incoming groups. Measuring the effectiveness of your group-focused initiatives provides feedback to continuously refine your approach.

With Market Insight, you can anticipate demand patterns specifically relevant to group travel segments, allowing for more targeted marketing and optimized resource allocation. This deeper understanding of market dynamics positions your property more effectively in the competitive group travel space.

Discover how Lighthouse’s Market Insight can help you develop data-driven strategies that meet the needs of tour groups while maximizing your revenue potential. Explore Market Insight today.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

This article originally appeared on Lighthouse.