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Join us to learn the best tips on how to work with hotel sales departments to get the lowest rates and maximum concessions for your clients. Talking points to include: group contract negotiation, corporate rate negotiation, the pros/cons of working with National Sales departments, when it is best to work with net rates and when commissionable rates are best, and easy RFP technology solutions.
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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…