Rethinking Hotel Blocks
Hotel room blocks have been a cornerstone of B2B event planning.
Organisers estimate attendance, contract a number of rooms with nearby hotels, and encourage attendees to book within those blocks.
But as the events industry evolves, a question is increasingly worth asking:
Is the room block model still the best approach — or simply the one we’re used to?
Room blocks solve real problems, but the environment around events, particularly traveller behaviour has changed significantly over the years, creating risk for event organisers.
⚠️The Risk - Attrition
When room blocks aren't filled, organisers face the risk of attrition penalties. The financial gap between what you contracted and what you sold - and it can be hugely expensive if you get it wrong.
Historically this risk has been manageable, but changing booking demand and behaviour is making forecasting harder, and therefore the attrition risk grows.
🤷🏼♀️ The Challenge - Unpredictable Demand
One of the biggest challenges today is that forecasting demand is difficult. Many attendees simply don’t book within the official room block, so estimating the size of block required is difficult. Several factors are influencing booker behaviour:
- Mandate to book through a Travel Management Company (TMC)
- Booking experience (and choice) versus Online Travel Agencies (OTA)
- Late booking - after official room blocks close/fill
With financial risk applicable, it drives event owners to question their future housing strategies, asking some interesting questions which follow below.
💭 Do participants really need to be next to the venue?
An assumption can be that attendees will insist on being near the venue, and in some cases, that's true, but not always.
When hotels closest to the venue sell out or are too expensive, attendees simply expand their search radius. Transport networks have improved, so staying further out often isn't a problem. You can still get to the venue quickly.
This behaviour mirrors how most people travel outside of events: if there isn't availability or the rates are high, you just book a bit further out and use the public transport network (or uber).
That doesn’t mean proximity isn’t valuable. It clearly is. But it raises the question of how much inventory truly needs to be secured in advance.
💭 Do participants really need to stay together?
One argument for room blocks is that keeping participants in the same hotels strengthens networking and community. Again, it is true, but in practice, most meaningful networking at B2B events happens:
- on the exhibition floor
- during scheduled meetings
- at organised receptions and social events
Hotels typically play a more practical role, providing convenience rather than serving as primary networking venues.
For many events, the core community is built inside the event itself not at the hotel.
⚠️ But sometimes it's not a choice
It would be misleading to ignore an important reality.
In many cases, hotel room commitments are part of how events secure venues or destination support. Cities and convention centres often evaluate events based on the economic impact they bring to local hotels.
In that context, room blocks are not simply an accommodation strategy, they are part of the broader economics of hosting an event.
However, if a large share of attendees are already booking outside official blocks, the traditional method of measuring hotel impact may no longer fully reflect reality.
🏩 The Future - Hybrid Housing
Many organisers are now exploring hybrid housing models - a smart balance between control and flexibility.
Instead of contracting the majority of expected demand, hybrid housing focuses on two complementary strategies:
- Secure a core cluster of strategic hotels near the venue
- These blocks serve VIPs, speakers, sponsors, exhibitors and delegates who prioritize proximity. They maintain the logistical and practical benefits of traditional blocks without over-committing inventory.
- Provide additional accommodation options through live inventory
- Live inventory can be offered alongside blocks or after they fill/close, giving attendees a wide choice of hotels at varying price points, available right up to and even during the event.
- It also expands access to hotels in different areas, allowing attendees to select locations that suit their preferences for price, transport, or neighbourhood.
This approach protects the hotels that matter most while reducing attrition risk. It also grows revenue by capturing demand from attendees who would otherwise book elsewhere.
❓The Question Worth Asking
Room blocks will undoubtedly remain part of the event ecosystem. But their role may be evolving.
Instead of asking:
“How many rooms should we block?”
event organisers may increasingly ask:
“Which rooms actually need to be blocked?”
Because in many modern cities, the challenge may no longer be securing every room. It’s securing the right ones.
Member discussion