Thank you all. You have been most helpful. What I am gathering is that visiting the local festivals during the same time outside of the crowded main Munich Oktoberfest is the way to go. I'll have to let my group know and see what they think.

Do you have any recommendations on when to book hotels? One of my coworker said I should book in advance now for hotels in the city. I am thinking outside of the city and just take the train in to save some money, while avoiding the main crowds.