Aenc annual meeting_w_scott_hotelcontractssession

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Wendy Scott, CAE Wendy Scott & Associates, Inc

National Account Manager

www.wendyscottassociates.com

Association Meetings, Conferences & Events:

A Strategic Approach to

Understanding, Negotiating and

Executing Win-Win

Hotel Contracts

What we’ll cover…

• Trends in industry and ways of doing business

• The Art of Negotiation (and what not to do)

• Building blocks for successful contracting

• Goals of the Meeting Planner and the Hotel

(Special Guests!)

• Contract Hot Buttons – technical exercise

• Tips for Successful Negotiating and Contracting

Wendy Scott & Associates, Inc.

Trends: What is the Future of Room Blocks?

M&C Research Poll

Main Reason - Cheaper Price? Exceed Spend

Threshold?

Right-Sizing

Holding out for Better Opportunity

Is the risk still there?

Basic Types of Negotiation

A. Distributive negotiations

Involve win-lose; one party’s gain is

another’s loss

B. Positional negotiating

When negotiators bargain over positions they

tend to lock themselves into position

C. ***Integrative negotiations***

Involve joint problem solving to achieve results

benefiting both parties – CREATE VALUE

Principled Negotiation Method:

• Separate the people from the issues

• Focus on interests - not positions

• Create options for mutual gain

• Use objective criteria

• EVERYTHING IS NEGOTIABLE!

• Assess style of each

• Plan short, clear questions in advance

and ask with a purpose

• Shared Interests - Let the Talker Talk

• Get The Other Person’s Point of View

• Positive Probing

• Listen for what is said and what is

NOT said

Interpersonal Aspects of Negotiating

Common Mistakes in Negotiating

Lack of respect

Tone of voice

Not being prepared

Lack of contractual terminology

Time pressures

Empowerment

Having something to give

No flexibility

Impulsiveness

What if you Can’t Agree?

• Ask “Help me understand…”

• Ask for company to provide written

alternatives

• Escalate the Chain of Command

• Walk away

Close the deal!

• Signal the end before you get there

• Allow for flexibility if takes longer

• Discourage seeking more concessions

• Document the terms

Is it Ok to Re-Negotiate?

- Just ask!

- Re-confirming prior discussions

- New concessions that become

valuable

What else???

Building Blocks for Successful Contracting

1. Compiling Group History

2. Determining Block Size

3. Site Selection

4. Contracting at the Right Time

Commitment for a real Win-Win…

What are the hotel’s objectives?

If you don’t know, find out!

RevPAR – Revenue Per

Available Room

RevPAR = Occupancy rate

X Average Daily rate (ADR)

***Free App – Apple Store:

RevPAR Calculator

The Nitty Gritty of the Contracting Process…

Technical knowledge of contracts –

Best Practices

SAMPLE CONTRACT REVIEW

To Outsource or NOT…

Confessions of an Association Executive

(that would be me!)

Not a job threat – augments existing staff (or volunteers)

Time Savings - efficiency

Experience – additional collaboration

Contract review

Buying Power

Hotel Partnerships – Contract Templates

NSO Advocates; special rates & offers

Contracting and Negotiation Tips

See the big picture identify your strengths (and weaknesses)

Prepare and prioritize Engage and inform stakeholders Be ready to compromise – win-win mindset

Know each other’s objectives

Business IS personal - Maintain relationships Learn, apply and improve your skills and process

Email: wendy@wendyscottassociates.com

Tel. 919.412.2121

Thank you!

www.wendyscottassociates.com

Request:

Experient Guide to Room Block Management