Hotel managers are not the only party at the negotiating table struggling to control costs and operate within the limits of austere budgets. Meeting planners have also been given the challenge of setting up effective events at the least possible cost.
In an effort to work within the framework of slashed government, corporate, and association meeting budgets, planners have continued to cut banquet menus and off-site events as they have in the past. However, now they have begun to flex their negotiating leverage and ask for aggressive room rate concessions from hoteliers. In response, it appears that hotel managers have been increasingly willing to negotiate and offer room rate discounts.
“Price of hotel rooms” was cited as the number one criteria for selecting a meeting facility. “Willingness to negotiate” was number three. Interestingly, room rates were identified by the meeting planners as the number one item hoteliers are most willing to negotiate.
The vast majority of planners (78%) have not “traded-up’ hotels due to price reductions.
“Overall Affordability” was ranked as the number one criteria for destination selection, followed by drive access, then air access. In last year’s survey, air access surpassed drive access. This indicates a preference for “drive to” destinations as a cost reduction. We did not ask about “overall affordability” last year.
See the complete PKF Survey results
