Travel / Meetings / Conferencing / Events
The art of negotiating with venues
11 Oct 2017 - by Staff reporter
Contract negotiation is an important part of any meeting planner’s role – particularly as potential savings are so important in the current economy.
But there is an art to negotiating a good contract and meeting planners need to ensure they can produce the necessary data that will prove the worth of their event to a prospective venue.
According to an article recently published by Connect Corporate, meeting professionals must arrive “armed and dangerous” at the negotiating table.
The article titled, 4 Steps to Negotiating Contracts like a Boss, provides some useful guidelines as to how exactly this can be achieved.
As the article points out, hotels tend to make about 77% of their profits from booking out rooms per night. In light of this, meeting planners should provide a specific breakdown of their company’s history when it comes to sending groups to particular hotels. Emphasis should be placed on tracking the number of sleeping rooms filled during each event. If you can prove your potential to fill out a hotel, then the hiring of meeting venues becomes about pure profit for the hotel. This leaves you with room to negotiate lower prices on costs such as AV.
It’s also a good idea to arrive prepared with detailed knowledge of the hotel’s costs and potential savings. The more knowledge you have about where you can and can’t expect to save, the more easily you will be able to negotiate discounts.
Given the importance of accuracy when negotiating a contract, investing in technology that can assist with the number crunching is often a good idea, the article concludes.