Negotiating with Hotels, Venues, Service Providers

Before you begin negotiations with hotels, venues and facilities or suppliers who will be involved in producing your meeting or event, have a clear understanding of what your business is worth based on past history and consideration of the current economy. If you are planning a first-time event, do your homework and present conservative rather than inflated estimates!

Determine in advance where you have the flexibility to give something up in exchange for getting what is more important to your group then begin negotiations from that position.

As an example -

• If your program will require several meeting rooms and meeting room rental has been quoted for all of them, you may be able to get rental rates reduced or waived if you can agree to reduce the total number of rooms needed by scheduling more than one activity in the same room – such as scheduling breakout sessions in the same room as a large general session on the same day.  This can be done if the general session room has dividing walls that can be pulled to separate a large room into smaller ones.  The change in set-up can be accomplished quickly during a coffee break after the general session.
• Or if you are using only small rooms, schedule one of your planned meal functions in the same room as one of your meetings rather than in a separate area, allowing enough time for the room to be re-set.  A re-set can occur in a matter of minutes when you are working with a banquet staff that is experienced in fast turnarounds.    
• Or provide justification for complimentary meeting room space based on the number of sleeping rooms your group will be using in the same hotel as your meetings.  Hotels use their meeting space to generate sales of group sleeping rooms, and complimentary space may be offered in proportion to the number of sleeping rooms you use.  Be careful here.  If you negotiate based on sleeping rooms, meeting room rental will still apply if the number of sleeping rooms actually used by your group is less than the number booked.  Many venues now require a minimum of total revenue to be generated by a group to reduce their risk if group numbers don't materialize.  Review attrition penalties in Contracts, and learn more about sleeping room negotiations in Lodging.

Work diligently with your contacts to determine what concessions they can make to accommodate your needs without compromising their ability to provide the best service. The end result of contract negotiations must be a win-win for both parties, so be reasonable in your requirements for the price you are willing to pay.  In times of economic duress as we are experiencing today, building trusting and respectful relationships with venues and vendors is more important than ever and will not be forgotten. Your credibility as an honorable, straightforward and reasonable meeting planner will follow you wherever you go in the meeting planning industry.

Negotiating Do’s and Don’ts - 

• Do your homework in advance so you know what the economic situation in the area you are researching. 
• Do prepare carefully so you can verify the value of your business based on history.
• Do expect your group history to be questioned in view of instability in the economy that has affected many industries.
• Don’t inflate the attendance you expect at functions or the number of guest rooms that you expect your group will use. 
• Do ask about low peak season and preferred arrival / departure patterns when cost for venues and support services will be less. For example –
• • Winter is peak season for ski resorts; summer is peak season at the beach; 
  • Monday - Thursday are peak arrival /departure days at properties catering to business travelers; 
  • Thursday - Saturday are peak arrival / departure days at resorts and family oriented properties.
• Do inquire about substitutions or alternatives that can save expenses for everything that is over your budget such as menu items, audio visual equipment, guest room types, parking arrangements, meeting room rental.
• Do be realistic in all communications about the needs of your group.
• Do understand the various booking policies and potential attrition penalties if attendance or revenues generated is lower than expected.
• Do ask about flexibility in policies that seem unusually restrictive. 
• Do document and consider all amenities and services that are included in the prices quoted
• Do ask that meeting room rental be waived or reduced based on the number of guest rooms your group is willing to guarantee at the meeting venue. 
• Do expect that contracts will include a minimum amount of total revenue that your group must guarantee for the venue or service provider, and find out how that amount is determined.
• Do expect add-on fees for services that have traditionally been included and incorporate a clause in your contract to prevent add-ons unless mutually agreed upon.
• Do treat your negotiating contacts as your partners.  Contracts must be mutually beneficial. 
• Don’t agree to any contract clause that protects only the venue. Cancelation penalties, for example, should apply to both parties and should be based on a sliding scale. 
• Don’t be intimidated by the negotiating process. Be prepared, relax and enjoy the exchange.

	How to calculate group value before negotiations begin
	Go to Contracts topic for important info related to attrition penalties and contract signing
	Go to Lodging Negotiations topic for more information about sleeping room negotiations
	Back to Step-by-Step Booking Guidelines
	View all Planning Helper Topics about meetings, events, social functions