Negotiating with a Meeting Facility – Part I

Thanks for the feedback from several readers. It is exciting to see one dominant preference emerging. Readers want to be able to get a custom post, albeit it is okay to share with all. I am glad to do it.

President of an outfit that finds best-suited meeting facilities for its clients requested my thoughts on principles for negotiating with a hotel for meeting space. The ideas expressed here are strictly mine. I don’t claim that they are original or even all-encompassing. They may also be well known and practiced within the hospitality industry.

Let’s start with the basics to keep in mind.

1. It is better to have all your requirements included before signing the contract.
That is when you are negotiating. If you go back and try to cover a need after signing the agreement, you may end up begging. Most people like to be skilled negotiators rather than expert beggars.

This does not mean you cannot or should not renegotiate an agreement. In fact, a good number of my clients hire me to renegotiate an existing contract. There could be numerous reasons for that. When renegotiating a deal, it is critically important to make an accurate assessment of the “power balance.”

2. Don’t skim the terms of the contract.
The conditions are just as relevant as the total cost. Many buyers focus on rates, dates, and space. The items in fine print, such as liability, insurance, attrition, default, can be just as significant. They translate into dollars. Currency fluctuation can make a difference when dealing overseas. Who pays for the currency hedge?

3. Negotiate with an empowered person, someone who is at the proper authority level.
The person must have the authority to make the final decision, whether it is ‘yes’ or ‘no.’ The person must be empowered to go “off the script.” Negotiators without authority make you vulnerable if the one with power requires further commitments or concessions to come to an agreement. You can avoid this by:
· Asking what the decision-making process is and who participates in the decision?
· Explaining to the other side that until the individual with authority to commit the hotel is present, you will not make commitments.
· Requiring the person with the power to be present to move the discussion forward and come to an agreement.

4. If you want something, speak up and ask for it.
Wish List and the Trade Sheet, described in my book, would be invaluable tools here.

5. A skilled negotiator will aspire to strengthen relationships.
She would prefer to get to the end of an agreement and look forward to working with the other party again rather than never want to deal with each other again.

These are the fundamentals in dealing with the meeting facility (hotel). There are several unwritten rules and tactics used in negotiating with hotels. Those I will cover in my next issue of the Trends, Topics, and Tactics knowledge letter.

Until then,
Ciao!