Friday, May 3, 2013

Negotiating Hotel Contracts to Your Benefit - For Easier Meeting and Event Planning


Is it really hard to negotiate a sales contract with a hotel sales manager for sleeping rooms, meeting space and food events? Well, it depends. It depends on a couple of factors.

First, do you know how a sales manager thinks and what the hotel is looking for?

The answer to this question may save you money or may allow you to get more of what you want and a better deal. Factors that influence room blocks and room rates are based on supply and demand. So, if the hotel is in their busy season, they have more clients requesting the same space and can either pick and choose who gets the space or they can set their price and you either take it of leave it. Thus, not much room for negotiation.

However, what if the dates you are requesting are in their off season or shoulder time period. Then options start popping up, the hotel then needs the business and your sales manager is ready to offer lower rates or special deals. But, you do not always have to take the first offer. Shop hotels to compare offers and tell the sales manager you are shopping. This way they might offer better rates in the initial offer to induce you to sign the contract.

Also, how does your room block pattern fit into their current block of rooms? Most hotels have a preferred pattern for arrivals and departures. If your pattern fits theirs, they may be willing to negotiate. However, if the pattern differs, you may have to pay higher rates.

To be better prepared, talk to the Convention Bureau in that city and ask what the normal occupancies are for various months of the year. That way you will have an idea of how much the hotel needs your business.

When negotiating, do not hesitate to ask for special items in the contract. The more the hotel needs your business, the more they are willing to give up or add to the contract in order to get your signature.

It may be easy to get that suite you wanted on a complimentary basis or at a special rate. If the hotel is going to have a low occupancy and would not be selling that suite in the first place, then they have nothing to loose by giving it to you in your contract.

So, the answer to my original question "Is it really hard to negotiate a sales contract with a hotel for sleeping rooms, meeting space and food events?" is based on availability of rooms, room patterns, your ability to be flexible and especially you being aware of what the hotel is looking for.

Therefore, do your homework before meeting with your hotel of choice and you will be better prepared to negotiate successfully.

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