Negotiating Group Sleeping Room Rates

Overnight sleeping room rates will be negotiated based upon the number of overnight sleeping rooms you will need, your arrival date and departure pattern, the type and size of the facility you are trying to book, the amount of function space you will require if any, and the amount and dollar value of food and beverage functions you will hold at the same facility.    

Before you begin negotiations, prepare or review the lodging history and group value discussed in an earlier step so you have a clear understanding of what your business is worth.  Then study the booking policies from the venues still under consideration.  You hard work in advance preparation for this moment is about to pay off.

Determine where you have flexibility if needed to get what is most important to your group. Find the opportunities for “give and take,” and negotiate from that position.   For example –  

• If guest room rates must be adjusted downwards by $10 from the quote to meet budget and promote attendance, look into the possibility of moving the arrival day of your group from a high peak to a low peak day of the week.
• Or perhaps you can move your dates from peak season when the property commands the highest rate to a “shoulder” season that might be only a few weeks earlier or later.  
• Consider giving up discounted parking rates or add a food and beverage function to generate more revenue for the property if these expenses can be approved to fall in a different budget category.  

Work diligently with your lodging contacts to determine what concessions they can make to accommodate your requests without compromising their ability to still make a profit.  Be reasonable.  In times of economic duress as we are experiencing now, building trusting relationships with all of your venues and vendors will instill in them the desire to exceed your group’s expectations.   And the word will spread.  Your reputation as a courteous, straightforward and credible meeting planner will follow you wherever you go in the meeting planning industry.   

Negotiating Do’s and Don’ts -

• Do know in advance the current guest room rates offered online and through the 800#. 
• Do ask in advance about low peak season and preferred arrival / departure patterns. For example -
  • Winter is peak season at a ski resort; 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 request a number of complimentary rooms that can be assigned to VIPs or staff.  Hotel booking policies usually provide one comp room for 50 rooms used per night by your group.
• Do inquire about reduced parking fees if the property owns and manages their own parking.
• Do inquire about small welcome amenities for your VIPs or special services such as newspaper deliveries each morning.
• Do inquire if there may be some flexibility in local phone call or Internet access charges.
• Do verify if shuttle service to local attractions and the airport will be provided at no charge or if a discounted rate can be arranged for your guests.  
• Do ask that meeting room rental be waived or reduced based on the number of guest rooms your group uses if you will be using function space at the same venue,.
• Do treat your contact at the venue as your partner so that agreements are mutually beneficial.
• Don’t inflate the number of guest rooms that you expect your group will use.  
• Do understand booking policies and risk of attrition penalties
• Don’t offer to contract for a higher rate in order to receive a greater discount for other services such as food and beverage or audiovisual unless your organization is paying for all guest rooms.  It would be considered a rebate to your organization and would have to be disclosed to guests who pay for their own accommodations.
• Do expect and watch for add-on fees to sleeping room rates for services formerly included.
• Do require a clause in your contract that requires mutual agreement before any future add-ons.
• 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. 

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