Key Ways to Capitalize on a Down Market: A Hotel Manager's PerspectiveAs the National Sales Manager at the Sheraton Atlanta Hotel, I'm all too aware that the sky is falling, the world is ending, everyone's bankrupt, and the dog ran away. However, this, too, shall pass. If you're in the meeting-planning business, now is a great time to find some excellent deals.
The only trick is making sure your attendees can afford to show up. Hotels are hungry (some starving); the offers are big and promotions are loud. But, remember: They're here for a limited time only...while supplies last, based upon availability; blackout dates apply. So, get while the getting's good!
I've put together some suggestions that may help you get your money's worth in this down market. I've also noted some things that I don't suggest; negotiating a good value is one thing, practicing unsound business ethics is another.
Hotels right now are falling over themselves with new offers and promotions. If you're researching a destination for your event or are currently in the negotiation process, you might want to ask this little, harmless question, "What promotions are you running?" You may be surprised with what you find out.
We salespeople are not instructed to offer every promotion to every group, every time. It's a closing tool. We use it when it makes sense and, quite frankly, when we just feel like it. But, when asked that question directly - well, that's enough incentive for me to use it. The first-quarter promotion at my hotel included 3-percent off the master account, a 10-percent discount on food and beverage, and a 20-percent discount on audio-visual. Those who asked, received. Those who didn't ask will never know.
As you can probably imagine, today's competition is fierce. All hotels need business, but there's only so much business out there to be had. You can use this to your advantage. Take what I mentioned about the promotions and brag about it. These days, it's not uncommon for hotels to "match" each others promotions to gain business.
You can get away with plotting hotels against one other. In today's market, they're more likely to take the bait. Just be sure to compare apples to apples and play fair. A downtown convention hotel is not likely to match a limited-service roadside motel (although right now, anything's possible).
You can certainly get away with getting lots of free stuff these days, but the real question is: What's important to you? Instead of negotiating a long list of concessions, consider consolidating your priorities. For instance, if the room rate is your main concern, then decline the complimentary suite, the audio-visual discount, the hotel award points, the fruit basket, the free shoe-shine, and the...(you get the point).
Stay focused on your main concerns; forgo things that you don't really care about. And it's not just you. Hotels will propose to you a laundry list of things they're "throwing in." It may look great on paper, but is it essential for a successful event?
You'll get a lot further by focusing on one or two items (and making them count), rather than having a wish list of piddly stuff that only moderately helps your budget. Of course, you can try to have your cake and eat it, too. Just be careful of the egg on your face when it comes to getting actual value.
Are you getting a great deal somewhere? Have you done your due diligence and are now patting yourself on the back? Have you found a home? Well, this is a great time to negotiate multiple-year contracts. Hotels want business on the books - we're trying to avoid another year like this one. Now that business is scarce, you can also get great deals on the future years.
Not to mention that hotels room rates are starting about 20-percent lower than those from this time last year. You can get away with confirming the same (or very close to the same) deals for future years right now, but only right now. You will not get away with this once the economy bounces back. You'll see a distinct increase year over year once that happens. If you have something to plan, plan it now; don't procrastinate. Like I said, get while the getting's good!
Josh Baker is National Sales Manager for the Sheraton Atlanta Hotel. He has a degree in Hospitality Management from the University of South Carolina. Contact him directly at jbaker@sheratonatl.com.