Thursday, April 4, 2013

Hotel Negotiating - Flexibility in Sales Contracts is Always to Your Advantage


Would you be willing to be flexible to get better rates or a better room block pattern when you start negotiating with your hotel sales contact? The answer hopefully will be "Yes."

In meeting and event planning, flexibility can give you more options when dealing with a sales manager.

An example of this would be a meeting planner asking asking for 50 rooms in a specific month and date. He tells the sales manager that his Board of Directors wants rooms in Atlanta September 19 - 21. The sales manager is thinking to himself "I have 50 rooms left which is easy to sell. If this meeting planner can only book September 19 - 21, I won't have to offer a special rate." So, the sales manager offers 50 rooms and quotes a rate of $250.00. He knew the Board of Directors could not move their group to alternative dates where he might be able to offer special rates.

The meeting planner has just given up most of his negotiating power because he does not have the flexibility to change dates. He had strict orders from his Board of Directors to only negotiate for a set of dates that would fit the Board schedule.

Now, consider that just maybe the sales manager has the same block or pattern of rooms available a week or two later and would love to offer lower rates in order to get the business. What would it be worth for both parties to make this work?

However, the sales manager is happy because he fills up his hotel at the rate he wanted and the meeting planner has given his Board of Directors the dates they wanted. It's a partial win for both, but the attendees coming to the meeting will pay for it with higher room rates.

Flexibility can be everything when negotiating. If you have it, then you have the advantage and that advantage can mean better rates, more available rooms, a better room block pattern, more complimentary rooms, a comp suite or possibly better food prices.

To really become an event planner, always keep flexibility in mind. So, your answer to the question that was first mentioned should be "Yes". Be flexible, keep your options open and you will get a contract that is more in your favor.

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