How Hotels Approach the Meetings Business

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• How Hotels Approach the Meetings Business

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HOTELS APPROACH TO MEETINGS
Hotels must make an extraordinary impression
on Clients to distinguish themselves in a
highly competitive marketplace
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HOTELS APPROACH TO MEETINGS
Hotel Attributes - Givens

• Quality and style
• More than friendly service
• Postive cost-benefit ratio
• Meaningful credentials (stars /points)

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HOTELS APPROACH TO MEETINGS
Hotel Attributes - Givens

• Innovation creating unique and exciting
• programmes
• Ecological and ethical values
• Developing customer loyalty customer
• surveys

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HOTELS APPROACH TO MEETINGS
Hotel Attributes - Givens

• Review pricing structures remain
• competitive
• Modernization
• Technology / high speed Internet access

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HOTELS APPROACH TO MEETINGS
Hotel Types and Yield Mix

• Yield Management
• Hotels are judged by stakeholders on the
  Return on Capital
• Yield Management optimises revenue and
  occupancy over different market segments,
  through seasonal fluctuations
• Most hotels have Yield Management Criteria
• YM helps hotels fix prices and the ideal
  business mix

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HOTELS APPROACH TO MEETINGS
Hotel Types and Yield Mix

• Yield Management
• Corporate business
• Inbound groups
• Airline Crew
• FIT
• CI
• Internet inventory

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HOTELS APPROACH TO MEETINGS
Hotel Types and Yield Mix

• Rates linked to Yield
• Crew rate repeat business
• Inbound rate repeat business
• Corporate rate repeat individual
• CI rate size, season, value
• Rack rate
• Internet rate excess room stock

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HOTELS APPROACH TO MEETINGS
Hotel Types and Yield Mix

• Rates linked to Yield
• CI mainly 4 5 star
• Some 3 star accommodation used
• Limit on conference room blocks
• Link to meeting space
• Seasonality
• Mid week versus weekends
• Resorts approach vs. city hotels

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HOTELS APPROACH TO MEETINGS
Hotel CI Structure
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HOTELS APPROACH TO MEETINGS
Hotel CI Process
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HOTELS APPROACH TO MEETINGS
Negotiations and Yield Management

• Experienced hotel staff know how to maximize
  return from a piece of MICE business
• Experienced organisers know how to maximize
  value when negotiating with venues

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HOTELS APPROACH TO MEETINGS
Negotiations

• On-site vs. Off-site functions
• FOC accommodation
• Upgrades rooms
• VIP welcomes
• In room gifts, pillow drops and amenities
• Early/late check in/out
• Upgrade/Up sell menus
• Storage space

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HOTELS APPROACH TO MEETINGS
Negotiations

• Office equipment
• Turn-down / pillow gift
• Porterage
• FB trade offs
• Bump in and out
• Room drops
• Happy hour

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HOTELS APPROACH TO MEETINGS
Negotiations

• In-house theming
• Airport transfers
• Parking rates
• Security
• FOC policy includes all rooms booked by
  delegates (including direct)
• Attrition charges on net profit, not on stated
  room rate

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HOTELS APPROACH TO MEETINGS
Negotiations

• What Hotels love to hear
• Client is flexible on days / dates
• Client requires minimal set up / pull
• down time
• Client can guarantee minimal room take
• up, minimal day delegate numbers
• Client can guarantee specific on site
• functions

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HOTELS APPROACH TO MEETINGS
Booking Space

• 1st Option
• provisional booking with release day
• 2nd Option
• second in line provisional booking
• Contract
• firm contract with financial guarantees

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HOTELS APPROACH TO MEETINGS
The Contract

• Whats fair for all?
• See a standard contract and terms/conditions
  before final selection
• Adjustments for special needs
• Read carefully, everyone aware
• Clear understanding, both parties
• Important at the outset to raise issues,
  before signing

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HOTELS APPROACH TO MEETINGS
The Contract

• Deposit and payment schedules
• Link to registration deadlines
• Credit card? Extra fee?
• Deadlines for FB numbers, AV, special
  requirements

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HOTELS APPROACH TO MEETINGS
The Contract

• Cancellations/abandonment, postponements or
  variations
• Non refundable deposit
• Resold space policy
• Charges for late changes to numbers, room
  setups
• Ensure client signs off

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HOTELS APPROACH TO MEETINGS
The Contract

• Surcharges and penalties
• Labour - public holidays
• A/V charges and restrictions
• Insurance
• Minimum security

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HOTELS APPROACH TO MEETINGS
The Contract

• Separate contract for accommodation unless
  linked
• Room deposit schedule
• Penalties for washes
• Cancellations, early check outs
• Porterage

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HOTELS APPROACH TO MEETINGS
The Contract

• Shoulder / peak nights included?
• Turn down included? (Pillow gift charges?)
• FOC ratios and upgrades stated

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HOTELS APPROACH TO MEETINGS
Accommodation Blocks

• Issues
• Size of block
• Key deadlines for washes / deposits
• Cancellation / penalty clauses
• Conference room rates vs. online / off the
• street
• More delegates going direct effect on room
• blocks
• Sub-blocks, 3rd parties

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HOTELS APPROACH TO MEETINGS
Hotel Liaison with Client

• Pre event . build rapport
• Accommodation blocks
• Meeting room changes
• A/V requirements
• Special needs e.g. security
• Copy conference brochure, relevant info
• Promo assistance
• Meet deadlines
• Discuss problems openly - its a team effort!

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HOTELS APPROACH TO MEETINGS
On-Site Management

• Pre opening meeting of all key staff with client
• Client working program
• Hotels daily event sheets
• Risk management plan/s client/hotel
• Identify all challenging areas e.g. timings,
• VIPs, rush periods for breakfasts, check-
• in/check-out, porters, etc
• Late hours for bars?

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HOTELS APPROACH TO MEETINGS
On-Site Management

• Daily morning meetings between key Hotel
• Operations Staff and Client/Organizer
• Daily accounts for checking
• Easy paging system for hotel assistance
• Immediate feedback on problems from both
• sides
• Client advice re late changes to program
• on-site
• Alert hotel security to arriving VIPs

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HOTELS APPROACH TO MEETINGS
De-Briefing

• If possible, face-to-face with client before
• leaving venue
• Or telephone follow up
• Encourage constructive criticism /
• recommendations
• Client should give credit where due
• Hotels can learn from every event and should
  debrief own staff

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HOTELS APPROACH TO MEETINGS
Professional Hotel Staff

• Key attributes of valuable CI staff
• Flexible
• Responsive
• Professional
• Experienced
• Eye for detail
• Understands clients objectives and expectations
• Over delivers!
• Good staff are key to attracting CI business
• and securing repeat business

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HOTELS APPROACH TO MEETINGS
Hotel Collaboration Case Study
The Five Star Conference Mile Four Barcelona
hotels (Hilton, Princesa Sofia, Rey Juan Carlos
and Melia all situated in Avenida Diagonal,
Barcelona) have partnered with the Palau de
Congressos de Catalunya Convention Centre to sell
their combined resources to the meetings
market. The alliance, presenting one price to
Clients, with one person coordinating requests,
has secured business that was too big for each
individual hotel.
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Thank You