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How to Negotiate when Planning Meetings
For a meeting planner, good negotiating skills are important. A good meeting planner knows how to judge the value of their business to the venue. A venue will only find your business valuable if it is profitable, and so there is a limit to how far they are willing to negotiate. And if another company wants the same venue at the same time then you may not be able to negotiate a particularly large discount, if at all.
But if you do your research then you’ll know how to judge the negotiation process and get as good a deal as possible. Here are ten factors to bear in mind:
1. Corporate Versus Association Meetings
Corporate meetings are normally more lucrative than association meetings – their daily rate is generally higher and they also often spend more on food and drink. However, they are also more likely than associations to cancel at the last minute. Associations often have annual meetings, which help venues with scheduling. Also, for these events, associations are likely to book at large number of rooms for accommodation – and accommodation is often where venues pick up most profit.
2. Space and Accommodation Needs
Venues prefer it if your accommodation needs are proportional to your meeting space needs. If you need all of their meeting space, but only a quarter of their rooms, then try to reduce the amount of meeting space you need, if possible. Perhaps you can free up some space by re-jigging the schedule slightly.
3. The Season
Venues normally run by season. During high season a venue might expect 90 percent plus occupancy, but, during low season, only 70 percent or least. Understanding what the season for your venue helps negotiation. But remember that the season varies depending on the location. A ski resort venue has its high season during winter, whilst a seaside venue will be most busy in the summer. And an airport venue’s high season may be Friday, Saturday and Sunday, all the year round.
4. Food and Drink
Food and drink is now a very important profit line for venues. If you know how much food and drink business you have to offer them then you might be surprised at your negotiating clout.
5. You and Your Venue’s Schedule
If you can make sure that your meeting timetable fits with your venue’s normal scheduling time frame then you’ll be profitable to them and therefore they’ll be more willing to cater for you and negotiate. If, for example, you only want to book your meeting and accommodation for Thursday and Friday then it may mean that the hotel can’t book other groups in for the weekend, thus proving difficult for the hotel.
6. Other Revenue to Offer
If you think that your meeting attendees may want to make use of the hotel facilities then you can overtly schedule in time for this, pleasing the hotel and your guests! The hotel will have the opportunity to make money from these ancillary activities, which could be a bargaining token for you.
7. Needs and Wants
Always be sure to communicate your needs first, and only your wants after this.
8. Time
Take your time when negotiating. The venue sales manager may be impatient for the sale and this may help you gain the upper hand. When time is running out for a venue to secure your business they are quite likely to offer you certain concessions. Of course this works the other around, so make sure you’re not caught in a predicament where you’re desperate for a venue but only have limited options.
9. Maximising the Business Your Give Them
If you book more than one meeting in a venue you should be a able to negotiate a discount.
10. Competition
If a hotel knows that they’re in competition with another venue then they are more likely to try to give you as competitive a rate as possible.
If you negotiate carefully and fairly you are more likely to be happy with the meeting package you secure. However, you must always be prepared to walk away if a venue will not agree to your proposals.
But if you do your research then you’ll know how to judge the negotiation process and get as good a deal as possible. Here are ten factors to bear in mind:
1. Corporate Versus Association Meetings
Corporate meetings are normally more lucrative than association meetings – their daily rate is generally higher and they also often spend more on food and drink. However, they are also more likely than associations to cancel at the last minute. Associations often have annual meetings, which help venues with scheduling. Also, for these events, associations are likely to book at large number of rooms for accommodation – and accommodation is often where venues pick up most profit.
2. Space and Accommodation Needs
Venues prefer it if your accommodation needs are proportional to your meeting space needs. If you need all of their meeting space, but only a quarter of their rooms, then try to reduce the amount of meeting space you need, if possible. Perhaps you can free up some space by re-jigging the schedule slightly.
3. The Season
Venues normally run by season. During high season a venue might expect 90 percent plus occupancy, but, during low season, only 70 percent or least. Understanding what the season for your venue helps negotiation. But remember that the season varies depending on the location. A ski resort venue has its high season during winter, whilst a seaside venue will be most busy in the summer. And an airport venue’s high season may be Friday, Saturday and Sunday, all the year round.
4. Food and Drink
Food and drink is now a very important profit line for venues. If you know how much food and drink business you have to offer them then you might be surprised at your negotiating clout.
5. You and Your Venue’s Schedule
If you can make sure that your meeting timetable fits with your venue’s normal scheduling time frame then you’ll be profitable to them and therefore they’ll be more willing to cater for you and negotiate. If, for example, you only want to book your meeting and accommodation for Thursday and Friday then it may mean that the hotel can’t book other groups in for the weekend, thus proving difficult for the hotel.
6. Other Revenue to Offer
If you think that your meeting attendees may want to make use of the hotel facilities then you can overtly schedule in time for this, pleasing the hotel and your guests! The hotel will have the opportunity to make money from these ancillary activities, which could be a bargaining token for you.
7. Needs and Wants
Always be sure to communicate your needs first, and only your wants after this.
8. Time
Take your time when negotiating. The venue sales manager may be impatient for the sale and this may help you gain the upper hand. When time is running out for a venue to secure your business they are quite likely to offer you certain concessions. Of course this works the other around, so make sure you’re not caught in a predicament where you’re desperate for a venue but only have limited options.
9. Maximising the Business Your Give Them
If you book more than one meeting in a venue you should be a able to negotiate a discount.
10. Competition
If a hotel knows that they’re in competition with another venue then they are more likely to try to give you as competitive a rate as possible.
If you negotiate carefully and fairly you are more likely to be happy with the meeting package you secure. However, you must always be prepared to walk away if a venue will not agree to your proposals.
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