7 steps to better negotiations
1. Know your meeting
Behind every event, there’s a purpose. Customize your meeting to enhance and complement the specific meeting’s purpose. Who do you want to move and how? Choose the environment and create the atmosphere that will convey what it is you want attendees to take away with them when they leave. How do you want people to relate to one another? Being able to deliver the message of the organization reinforces your role in and your ability to prove return on investment.
2. Communicate
The more information you have, the more options you’ll discover. Do you use volunteers? What do you use them for? What are the demographics of your group? Are they largely men who are looking for sports activities? Or women who want shopping?
What are their values and makeup? Are they financially conservative? If so, they’ll be more likely to go out for ice cream than steak dinners. If you have lots of high school students, a catering package might be more filling.
3. Do your homework
If a destination or property is new to you, go beyond the site visit tour and really experience a property, putting yourself in your attendees’ shoes. If possible, visit on your own and spend some time in the lobby. How do staff members interact with each other and guests? Is there a line at the front desk? Check out the restrooms, especially after typical lunch or break times. Are they being serviced properly?
Find a meeting and observe the breaks. Are items being refreshed? Is staff visible? Try and talk with an attendee about the service or property.
Consider staying overnight prior to your site visit and take a checklist on everything from valet service to check-in, wake-up calls to late night room service, and breakfast to dinner. Ask different staff members about services to learn how well trained the hotel staff is.
Familiarize yourself with the destination; get to know the local culture; tap into the CVB and any other resources. Most CVBs are more than happy to show off their city, so take advantage of their hospitality.
4. Know your meeting’s value
What’s your meeting’s total dollar value? This measurement is more important to a city than room nights. The cost per delegate (activities, dining, etc.) reflects the total economic impact of your conference.
A comprehensive RFP provides an overall evaluation of your meeting, says Donald Oswald, associate director of sales for the Phoenix Convention and Visitors Bureau. “Think of a resume, which offers job experience, references, history, etc.”
Understand how a property values your business and tell them how you’re helping them.
Know your room block percentage. Having a low-risk group (97 percent pick-up rate over the last three to five events) could be a huge negotiating tool.
Your credit history is important. CVBs share detailed reports on reportable meetings held in their cities, called MINT (Meeting Information Network) reports. A meeting is reportable if the following criteria are met: uses 50 or more rooms on peak; rotates between at least two cities or states; is held on a regularly scheduled basis. “When you leave an event, make sure to ask for a copy or your credit history and check it for accuracy,” Oswald advises.
5. Negotiate
Room rates are always the easiest item to negotiate. Knowing your group’s habits—what services they will use and how they will spend—gives you more leverage on room rates. Flexibility and pattern are key words. Be aware of an area’s seasons: What are the peaks and shoulders? What are the high and low seasons?
If a property can squeeze you between two events, there’s more room to negotiate on price. What is your arrival need? Can you come in on Tuesday rather than Sunday? Can you fit your meeting into two days rather than three when it has to fit into a peak period?
How many double-doubles, kings, etc. do you need? How many room keys? Again, be very specific. What are you using the space for? Be specific and thorough. Be sure to base your meeting space needs on move in and move out days rather than show days. What is your set-up time? Will you need to take up a ballroom on a day when you have booked no room nights? That will make a difference to the facility.
Transportation, parking, phone usage, in-room Internet access, and VIP upgrades and special services are other items that may be negotiable, especially in today’s buyer’s market.
6. What is your F & B contribution?
When negotiating with hotel, catering per room night can make the difference between good versus average business for them. Make sure the caterer or chef is flexible and will work with you to create a memorable meal that can meet your budget requirements. High-quality food and creative presentation are the most important factors in the eyes of attendees. It doesn’t mean you have to serve five-course dinners, but your attendees expect to be well taken care of, and the memory of poor service or mediocre food will linger longer than the meeting’s content.
7. Build your relationships
If you are bringing a new meeting to a city or property, it is important to understand the risks involved for the property or host city. There is always room for new meetings, but you’ll need to work with venues to find the best space and fit. Be as flexible as possible in order to find the best deal. What are the terms and conditions you can operate under?
The more relationships you have with suppliers, the better position you’ll be in to meet your event needs. In a tight market, relationships and choice are king. Be courteous to everyone, and make sure your staff is trained to be, as well. You’ll be in a better position to negotiate future events if suppliers view you as fair in all your dealings. —Cynthia Rich
