How to Negotiate With Hotels

NEGOTIATING WITH HOTELS

The most important trip you may take is meeting people halfway.

-Henry Boyle

Speaker: Lisa Morris

NEGOTIATION

Definition: Bargaining (give and take) process between two or more parties (each with its own aims, needs, and viewpoints) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern

CREATIVITY / THINK OUTSIDE THE BOX

Problems cannot be solved by the same level of thinking that created them.

-Albert Einstein

GROUP CONTRACT NEGOTIATIONS

• Concessions

• Attrition / Cancellation

• Hidden Fees

CORPORATE RATE NEGOTIATIONS

• Estimated Volume

• Security Needs / Concerns

• Meeting Space Capabilities

• Value Adds

• Net Rates vs. Commissionable Rates

• RFP Process

PROS / CONS OF WORKING WITH NATIONAL SALES

PROS

• One point of contact- strong personal relationship

• Internal translation of your agencies preferred booking methods to the properties

• Quicker access to up-to-date property sales contact info for onsite property reps

• Help with collecting commissions or getting resolutions on disputes with specific properties

CONS

• Longer response time on RFP’s

• Lack of knowledge of each property- still a need to speak with someone local. There’s a risk of more errors with the increased number of people involved

• Internal power struggles or internal commissions can actually lead to higher rates than working directly with the property

• RFP can be changed by internal "meeting broker" programs so by the time the RFP reaches hotel they don't always understand all of the requests.  Example: telephone game

TRAVEL JEOPARDY

Travel Acronyms

True or False

Group Contracts

Hotel Brands

Hotel Rewards

100

200

300

400

500

100 100100 100

200 200 200 200

300 300 300 300

400 400 400 400

500 500 500 500

Travel Acronyms for 100

RFP

Travel Acronyms for 100 Answer

What is Request for Proposal?

Travel Acronyms for 200

GDS

Travel Acronyms for 200 Answer

What is Global Distribution System?

Travel Acronyms for 300

HSIA

Travel Acronyms for 300 Answer

What is High Speed Internet Access?

Travel Acronyms for 400

BAR

Travel Acronyms for 400 Answer

What is Best Available Rate?

Travel Acronyms for 500

LRA

Travel Acronyms for 500 Answer

What is Last Room Availability?

True or False for 100

A full service hotel always has an on-site restaurant

True or False for 100 Answer

What is True?

True or False for 200

A “Sales Coordinator” is able to quote you a reduced group rate for sleeping rooms

True or False for 200 Answer

What is False?

True or False for 300

A hotel can 100% guarantee early arrival without buying the room from the night before or increasing the rate

True or False for 300 Answer

What is False?

True or False for 400

When a hotel is under a brand ‘flag’ such as Hilton Hotels, the hotel is corporately managed

True or False for 400 Answer

What is False?

True or False for 500

Typically, the best time to negotiate a group rate with hotel sales is right before the end of the month

True or False for 500 Answer

What is True?

Group Contracts for 100

The document needed to insure that all rooms are pre-keyed and pre-registered prior to the group arrival

Group Contracts for 100 Answer

What is a Credit Card Authorization Form?

Group Contracts for 200

The baggage handling fee charged by union hotels when groups arrive together

Group Contracts for 200 Answer

What is Mandatory Porterage?

Group Contracts for 300

The two commonly accepted forms of payment for a group contract

Group Contracts for 300 Answer

What are Credit Cards and Direct Bill Application?

Group Contracts for 400

The only way to protect clients from the inconvenience of renovation.

Group Contracts for 400 Answer

What is a renovation contract clause?

Group Contracts for 500

The literal meaning of “Force Majeure”

Group Contracts for 500 Answer

What is “Greater Force” which is also known as “Acts of God”

Hotel Brands for 100

The Extended Stay hotel known for its ‘Cupboard’ with an honor system for purchasing food, drinks and supplies as well as complimentary coin laundry

Hotel Brands for 100 Answer

What is Candlewood?

Hotel Brands for 200

Aloft, W, Sheraton, Four Points Sheraton and Westin are all part of this Hotel Collection

Hotel Brands for 200 Answer

What is Starwood?

Hotel Brands for 300

The hotel chain that asks what your ‘guilty pleasure’ is when they answer the phone

Hotel Brands for 300 Answer

What is Kimpton?

Hotel Brands for 400

The full service hotel brands that offers comp internet as long as the guests sign up for their Preferred Guest program

Hotel Brands for 400 Answer

What are Omni and Fairmont?

Hotel Brands for 500

The hotel chain known for their brilliant marketing campaign to have a branded “cookie’ on arrival

Hotel Brands for 500 Answer

What is Doubletree?

Hotel Rewards for 100

The Hilton Hotel reward program

Hotel Rewards for 100 Answer

What is Hilton Honors?

Hotel Rewards for 200

The Starwood Hotels reward program

Hotel Rewards for 200 Answer

What is SPG or Starwood Preferred Guest or Star Points?

Hotel Rewards for 300

The Hyatt Hotels reward program

Hotel Rewards for 300 Answer

What is Hyatt Gold Passport?

Hotel Rewards for 400

The IHG Hotels reward program

Hotel Rewards for 400 Answer

What is the Priority Club?

Hotel Rewards for 500

The Carlson Hotels reward program

Hotel Rewards for 500 Answer

What are Gold Points?

Final Jeopardy

Name the top concessions/value adds that should be negotiated in group contracts. You must get 5 of the possible answers correct.

Final Jeopardy AnswerWhat are….?

• Comp Internet • Comp breakfast• No porterage fees • 1 per 15 Comp rooms• Comp local calls • Comp guest laundry • Club level access • Comp social hour • Comp upgrades group rate• Comp Microwave/refrigerators in all rooms • Comp parking for cars or buses

Q & A / FINAL THOUGHTS

Everything you want to know about hotels but were afraid to ask.

Ask away…