Sunday, July 7, 2013

Negotiating With Hotels - What Pattern Can I Offer to Get a Lower Rate? - Event Planning


What can I offer the hotel to get a lower room rate? Can I make any changes or bring something to the table that will make a sales manager give me a better rate or another perk in the contract?

First, you might be able to make slight room pattern changes to make this a "Win-Win" for all, but you need to know all of your options first.

So, before even talking with the hotel, think about everything you want in a contract. Eventually we will discuss meetings, food, beverage, exhibits, suites and comps, but today's focus will be only the room block.

Sleeping Room Block / Pattern - how many sleeping rooms do you need and what days of the week do you prefer? You might prefer a Sunday - Tuesday conference or maybe a Wednesday - Saturday pattern. However, are you dead set on what you need?

If you approach your hotel sales manager and request a specific set of dates with a pattern of arrival and departure that can not change, your contact has no choice but to quote you a rate they have budgeted for that time period.

However, if you can be flexible and move your arrival-departure pattern up or back a day or two, or even a week or two, then your sales manager might be willing to work with you and offer a better rate.

Nothing is wasted anymore than a hotel room that is not used. So, it is extremely important for your hotel contact to book groups into the hotel so they fill up all the rooms and the groups do not overlap.

For example, if a hotel has 500 rooms, ideally their best pattern would be to have one group of 400 rooms arrive on Sunday and depart on Wednesday. Then the ideal situation continues with another 400 room group coming in on Wednesday and leaving on Saturday or Sunday. This would fill up the group block and maximize revenue.

Note, no hotel will commit all their sleeping rooms to convention room blocks. In the previous example, 100 rooms are set aside for individual arrivals, corporate clients or special guests.

So, if your request for rooms can match the pattern the hotel desires, they can sell more rooms per night, maximize revenue and still offer you a better rate, since it will allow them to increase occupancy.

On the other hand, if your pattern does not fit theirs and does not allow them to maximize occupancy and revenue, your sales manager will have to quote a higher room rate to meet budget revenue projections.

So, the question asked was "What can I offer to get a lower room rate?" The answer lies in your preparation for your meeting with the hotel sales manager. You have to know what room pattern works for your group. If you are restricted to a set pattern, you may not be able to offer the hotel anything to get a better deal. But, if you offer to change arrival dates and patterns, you might get a lower rate offer from your sales contact. Be prepared, know your group and do not be afraid to ask what it will take to make it a "Win-Win" for both you and the hotel.

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