If you want the VIP treatment at hotels these days, show up with an entourage.
Hotel companies have long extended room-rate discounts and
perks—such as free breakfast and Internet access—to big corporate and
leisure groups who book dozens of rooms. But now, facing a decline in
business travel, some hotels are extending similar deals and freebies
to much smaller gatherings of family and friends traveling together.
When Lori McVicker travels with her 13-year-old son's soccer team,
the budget usually dictates stays at basic hotels with small,
uncomfortable rooms. But during a soccer tournament in September, just
$89 a night got the team rooms at the four-diamond-rated Renaissance
Fort Lauderdale-Plantation Hotel in Florida, which offers flat-screen
TVs, evening turn-down service and free shoe-shines and newspapers.
(The hotel's typical weekend rate during that period was $139.)
"It was a wonderful experience," says the 44-year-old.
Indeed, as revenue from business travelers and large corporate
meetings has fallen this year—a victim of the economy and corporate
skittishness about executives being seen holding meetings at luxury
resorts—small leisure groups have become increasingly important to
hotels.
"We are actually going after" these groups for the first time, says
Nabil Salloum, general manger at the Renaissance in Plantation, the Marriott International
Inc. hotel where Ms. McVicker stayed. "We understand these groups are
price sensitive, so first of all we are working within their budget" by
giving them better rates than in the past, he says. Next, "we are
adding breakfast maybe with the stay. We might be giving them free
Internet."
In October, Harrah's Entertainment Inc., which owns resorts, casinos
and restaurants, launched a program that allows any group booking at
least five rooms access to a designated trip director who can organize
hotel reservations along with shows and meals. And if the group books a
restaurant or show, too, it gets to jump to the head of the line of
folks waiting for a taxi outside the hotel.
The Alex Hotel in midtown Manhattan—which touts "limestone baths,
rain showers and plush bedding"—started giving discounts to tour
groups, including youth groups, in late 2008. The hotel "gave them
[youth groups] a rate that we wouldn't give them in past years," says
Mary Lou Pollack, general manager of the hotel. "We decided we wanted
to replace that non-existent corporate business."
But some business hotels find that it can be tough to accommodate
groups of vacationing families—including noisy kids—alongside their
typical business clientele. Jamie Eighteen, a 33-year-old banker from
Edinburgh, Scotland, who stays in hotels about 60 nights a year, found
teenagers monopolizing the business center during his stay at the
Crowne Plaza Philadelphia-Downtown earlier this year. On FlyerTalk.com,
an online form for travelers, he summarized his findings: "Kids
permanently using the business centre to access Facebook, Bebo and god
knows what else whilst playing music on mobile phones! Swiftly followed
by charging up and down the stairs and along the corridors." When the
noise continued into the night, he spoke to a security guard in the
lobby. "He was responsive," says Mr. Eighteen, and the teens quieted
down.
While the hotel didn't comment on Mr. Eighteen's specific complaint,
Bob Cosgrove, general manager of the Crowne Plaza said, "No matter who
you are and why you are here we want to make sure everybody has a great
experience."
Indeed, lower room rates mean small, price sensitive groups like
high school sports teams and church groups are ending up at higher-end
properties. Business is "bad enough that they don't care who is coming.
They just want someone in their beds," says Patrick Connor, vice
president of the Student Youth Travel Association and president of
Director's Choice Tour & Travel, a Texas-based company that
operates tours for school band and choral groups.

Hotels are handing out these perks because of a fundamental shift
happening across the travel industry: Business travel has plummeted
this year, while leisure travel, though still weak, has remained
stronger. Hotels and industry researchers say the contrast is
especially stark when it comes to people traveling for special
occasions like anniversaries, family reunions and children's choir
competitions. People are still willing to spend money on those events
because they think "it's only our 50th anniversary one time," says Mark
Woodworth president of PkF Hospitality Research, a hospitality research
and consulting business.
On HotelPlanner.com, a Web site owned by Lexyl Travel Technologies
Inc. where groups can solicit bids for their trips from hotels, fewer
corporate groups are posting trips on the site, while leisure groups
continue to solicit bids, says Tim Hentschel, chief executive of the
company. He says rates being offered to groups on his site are down 30%
this year compared to last.
Traditionally a hotel starts handing out lower rates and perks for
bookings of 10 rooms or more—what they define as a "group booking."
That still stands, but some hotels are being more flexible. Connie
Tompkins, owner of Group Travel Specialists based in Coeur d'Alene,
Idaho, says more hotels are willing to give perks to groups as small as
five rooms. Earlier this year she booked five rooms for the Cherokee
Cheerleaders from Denver at the Embassy Suites New York in the
financial district. The standard rate at the hotel at the time was
$259, she says. Because it booked five rooms, the group paid $189, an
unusually low rate for a group that size, she says. The hotel's general
manager said he could not confirm the group's rate.
In Hammond, Ind., near Chicago, the Fairfield Inn & Suites by
Marriott Hotel, is giving out one free room with every booking of 20
rooms. Before, groups had to book at least 30 rooms to get the free
room, says Shruti Buckley, vice president of global brand management
for Fairfield, a Marriott brand. The Fairfield Inn in The Colony,
Texas, near Dallas has started giving small leisure groups that reserve
at least 10 rooms—and return their contract within seven days—2,000 to
5,000 Marriott Rewards points.
Making sure groups mingle smoothly with independent travelers is
possible with some management tweaks, say some hotel general managers
and group-travel organizers. The Renaissance in Plantation, Fla., puts
groups on the same floor, saves several floors just for business
travelers, and if a group checks in, there is "probably a little more
security roaming the floors in the evening making sure it's calm," says
General Manager Mr. Salloum.
And some business travelers say hotels are working harder to smooth
over infuriating moments caused by unruly groups. Dan Nainan, a
28-year-old stand-up comedian and actor from New York who sleeps in
hotels about 100 nights a year, says lately hotels are more willing to
refund a night's stay if he complains (nicely) about noise from a loud,
unruly group staying near him, likely "because their business is down
and they want to keep their customers happy," he says.
But Mr. Nainan also recommends taking matters into your own hands at
times. A few years ago he got stuck next to a rowdy rock band at a
hotel in Taiwan. After repeated rude awakenings throughout the night,
he got up around 6 a.m. to catch his flight, taking time to get
"vengeance."
He called the next room pretending to be a front desk employee.
There is a "very pretty lady that wants to see you," in the lobby, he
explained. "But you must come down to get her."