Hotel contract risk reduction and cost containment are important metrics in today’s meetings management landscape. Demand is far outpacing hotel room supply, so hoteliers can be choosy about what meetings they accept. To be successful in negotiations, association and specialty planners must create a plan based on specific hotel revenue management criteria. For each RFP and set of meeting dates, evaluate the following:
> Total Hotel Room Block
At 77 percent average gross profit, this is the hotel’s biggest profit center according to an independent survey of hotel chain executives by Meeting Sites Resource. Calculate the RFP response on sleeping room and suite rates by your projected room block to understand total room spend contribution. Additionally, track spend by individual hotel and chain, and use consolidated revenues to maximize negotiations success.
> Peak Night Pattern
All hotels use pattern selling by market segment to maximize occupancy and revenues. Determine if your peak night pattern is in sync with the hotel’s expectations. Sometimes shifting your pattern by a night or two can enhance your RFP value and save 10 to 15 percent on group rates.