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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.
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?
Wendy Scott & Associates, Inc.
Wendy Scott & Associates, Inc.
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
Wendy Scott & Associates, Inc.
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!
Wendy Scott & Associates, Inc.
• 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
Wendy Scott & Associates, Inc.
What if you Can’t Agree?
Wendy Scott & Associates, Inc.
• Ask “Help me understand…”
• Ask for company to provide written
alternatives
• Escalate the Chain of Command
• Walk away
Wendy Scott & Associates, Inc.
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?
Wendy Scott & Associates, Inc.
- Just ask!
- Re-confirming prior discussions
- New concessions that become
valuable
What else???
Wendy Scott & Associates, Inc.
Building Blocks for Successful Contracting
1. Compiling Group History
2. Determining Block Size
3. Site Selection
4. Contracting at the Right Time
Wendy Scott & Associates, Inc.
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
Wendy Scott & Associates, Inc.
The Nitty Gritty of the Contracting Process…
Technical knowledge of contracts –
Best Practices
SAMPLE CONTRACT REVIEW
Wendy Scott & Associates, Inc.
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
Wendy Scott & Associates, Inc.
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: [email protected]
Tel. 919.412.2121
Wendy Scott & Associates, Inc.
Thank you!
Wendy Scott & Associates, Inc.
www.wendyscottassociates.com
Request:
Experient Guide to Room Block Management