How can you negotiate effectively for conference room blocks with hotel chains?

If you are planning a conference, you know how important it is to secure enough rooms for your attendees at a reasonable price. But negotiating with hotel chains can be tricky, especially if you are not familiar with their terms and policies. In this article, you will learn how to negotiate effectively for conference room blocks with hotel chains, and avoid common pitfalls and hidden fees.

1 Know your needs and budget

Before you contact any hotel, you should have a clear idea of how many rooms you need, what dates and times you want them, and how much you can afford to pay. You should also consider other factors, such as location, amenities, cancellation policies, and loyalty programs. Having a realistic and flexible plan will help you compare different offers and negotiate the best deal.

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Catherine Palmer

Dual Director of Sales | Corporate & Group Sales
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The more you know about how a hotel makes revenue, the more effective your negotiations will be in getting what matters the most to you. Hotels like consistent revenue they can forecast and be guaranteed to receive. So, if you know you’ll have multiple events try negotiating what you want in exchange for having multiple events in the same calendar year or consecutive years if it’s an annual event. If comps are preferable, tell the hotel you’ll agree to 80% or 90% attrition if they’ll do a 1:15 or 1:20 ratio. Hotels lose money with comps, so make sure you offer a back up to the lost revenue (keep room rental fee, AV or service charge fees, F&B Minimum etc.) or be okay with a higher rate so the hotel makes up for loss revenue with the comps.

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Hugues DESTRUEL

Attaché commercial Nantes & Angers
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Les réservataires, du moins ceux qui réservent en direct avec les réceptifs, sont souvent issu d'un domaine qui n'a aucun lien avec les métiers de réceptions d'hébergement ou d'événement. Il y a un réel travail d'accompagnement à faire à l'instar d'un(e) réceptionniste, d'un(e) maître d'hôtel.

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2 Research the market and the hotels

Once you have your needs and budget, you should research the market and the hotels you are interested in. You can use online tools, such as Cvent or HotelPlanner, to find hotels that match your criteria and request proposals. You can also contact local convention and visitor bureaus, or CVBs, to get insider information and recommendations. You should also check the hotel's website, reviews, and ratings to get a sense of their quality and reputation.

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Hugues DESTRUEL

Attaché commercial Nantes & Angers
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La dimension, le plus souvent, indiquera s'il est nécessaire de passer par un tiers pour l'organisation de son événement. Les réceptifs préfèrent travailler en direct pour plus de praticité et facilité de traitement, les organisateurs aussi pour une question de budget. Pour l'organisation d'événements plus conséquents : agence, PCO, CVB, ... peut non seulement faciliter l'organisation de la prestation, également faire le lien entre tous les partis et leurs expertises respectives.

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3 Compare and negotiate the offers

After you receive the proposals from the hotels, you should compare them carefully and look for the best value. You should not only look at the room rate, but also the attrition rate, the cut-off date, the concessions, and the fees. The attrition rate is the percentage of rooms you have to fill or pay for, the cut-off date is the deadline to book the rooms, the concessions are the perks or discounts the hotel offers, and the fees are the extra charges that may apply. You should negotiate these terms to lower your costs and risks, and increase your benefits. You can also leverage your bargaining power by showing interest in multiple hotels, or by being flexible with your dates or room types.

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Hugues DESTRUEL

Attaché commercial Nantes & Angers
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Chaque réceptif travail avec un stock limité, l'économie d'échelle n'est pas un argument de négociation pour le réservataire. Au contraire, travailler dans des budgets plus élevés permettent d'acheter de la disponibilité et de la flexibilité. Ces deux derniers éléments offrent du confort de travail et d'organisation que ne permet pas la baisse absolu des prix.

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4 Review and sign the contract

Once you reach a satisfactory agreement with the hotel, you should review the contract carefully and make sure it reflects everything you discussed. You should pay attention to the clauses that deal with cancellation, force majeure, indemnification, and dispute resolution. You should also check for any errors or omissions, and ask for clarifications or amendments if needed. You should sign the contract only when you are confident that it protects your interests and meets your expectations.

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5 Communicate and monitor the booking process

After you sign the contract, you should communicate and monitor the booking process with the hotel. You should confirm the details of the reservation, such as the room block code, the reservation link, and the confirmation number. You should also inform your attendees about how to book their rooms, and remind them of the cut-off date. You should track the booking progress and the pick-up rate, which is the percentage of rooms booked from your block. You should also stay in touch with the hotel sales manager and report any changes or issues that may arise.

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6 Evaluate and follow up after the event

After the event, you should evaluate and follow up with the hotel. You should review the final bill and make sure it matches the contract and the actual services provided. You should also collect feedback from your attendees and staff about their experience with the hotel. You should thank the hotel staff for their cooperation and professionalism, and express your appreciation or dissatisfaction as appropriate. You should also keep a record of the contract and the performance for future reference or negotiation.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you negotiate effectively for conference room blocks with hotel chains?

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2

3

4

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1 Know your needs and budget

2 Research the market and the hotels

3 Compare and negotiate the offers

4 Review and sign the contract

5 Communicate and monitor the booking process

6 Evaluate and follow up after the event

7 Here’s what else to consider

Conferences

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How can you negotiate effectively for conference room blocks with hotel chains?

1

2

3

4

5

6

7

1 Know your needs and budget

2 Research the market and the hotels

3 Compare and negotiate the offers

4 Review and sign the contract

5 Communicate and monitor the booking process

6 Evaluate and follow up after the event

7 Here’s what else to consider

Conferences

Rate this article

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