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About 'compare hotel'|Why service apartments is best compare to hotels - Ask ...








The               U.S.

lodging               industry               is               expected               to               decline               by               approximately               13.7               percent               in               sales               within               2009               as               a               result               of               the               worsening               economic               situation               in               the               U.S.,               but               also               in               other               major               financial               markets.

Organizations               that               organize               corporate               events               automatically               acquire               an               advantage               in               terms               of               negotiating               the               hosting               of               an               event               at               a               particular               facility.

Hotel               managers               need               to               meet               specific               sales               targets.

Yet,               to               effectively               negotiate               with               hotel               managers,               event               planners               need               primarily               to               convince               them               about               the               value               of               their               business               so               that               they               make               them               willing               to               negotiate               in               their               favor.

One               of               the               most               commonly               applied               policies               to               reduce               the               cost               of               hotel               accommodation               is               to               hold               multiple               corporate               events               every               year               at               the               same               facility.

As               lodging               demand               is               severely               declining,               hotel               managers               offer               competitive               prices               for               repeated               corporate               clients.

The               frequent               guest               programs               enable               hotels               to               continually               understand               their               customers'               needs               and               stay               competitive.

In               that               way,               not               only               they               increase               their               sales               figures               to               meet               their               sales               targets,               but               they               also               offer               event               planners               a               better               negotiating               power               in               leveraging               better               corporate               rates.

Besides,               they               often               offer               hotel               restaurant               discounts               and               free               hotel               stays.
               Organizations               that               hold               corporate               events               are,               typically,               offered               discounted               corporate               rates               up               to               10               percent               from               the               published               room               rate               from               the               majority               of               hotel               chains.

Discounted               corporate               rates               function               as               an               incentive               so               that               corporate               clients               become               repeated               customers.

From               the               organization's               perspective,               discounted               corporate               rates               are,               in               effect,               a               cost-effective               method               to               hold               a               corporate               event               at               a               familiar               place,               but               also               to               get               additional               deals               such               as               reward               credit               cards.
               Besides,               event               planners               can               negotiate               additional               discounts               on               guest               rooms.

Guest               rooms               offer               a               higher               profit               margin               to               hotels               and               consequently               a               better               negotiating               power               to               the               organization.

Typically,               organizations               compare               the               prices               of               the               guest               rooms               against               the               prices               of               the               corporate               contract               and               secure               the               lowest               possible               rates.
               In               order               to               manage               corporate               expense               policies,               organizations               set               hotel               rate               benchmarks.

Employees               who               are               responsible               for               corporate               travel               bookings               should               have               a               price               range               of               acceptable               hotel               rates               so               that               corporate               travel               expenses               are               kept               within               limits.

However,               employees               should               be               given               a               relative               flexibility               on               deciding               hotel               corporate               rates               because               of               the               price               fluctuations               in               different               geographical               areas.
               Another               way               to               reduce               hotel               accommodation               costs               is               to               negotiate               food               and               beverage               rates.

Typically,               hotel               restaurant               menus               are               designed               to               meet               any               taste               and               budget.

However,               in               order               to               have               a               negotiating               power,               it               is               better               for               the               event               planners               to               identify               preferred               food               and               beverage               in               advance               and               get               discounts               on               the               additional               price.
               Event               planners               can               also               negotiate               the               total               expenses               of               the               event               held.

The               event               held               at               the               hotel               is,               in               effect,               an               investment               on               behalf               of               the               event               planners               at               the               hotel               property.

The               hotel               will               benefit               from               the               investment               from               the               income               generated               from               accommodation,               food               and               beverage               consumption               and               any               other               type               of               service               provided.

Therefore,               event               planners               can               ask               for               further               discounts               on               the               total               cost               of               the               event.
               Finally,               it               is               to               the               best               interest               of               the               event               planners               to               hold               the               event               during               non-peak               times.

In               that               way,               they               offer               the               flexibility               to               the               hotel               sales               to               book               better               rooms               at               a               lower               rate               and               to               arrange               for               the               best               services               available.

In               this               case,               the               event               planners               are               aiming               to               cover               the               small               space               in               time               that               the               hotel               has               available               and               doesn't               anticipate               covering,               and               they               acquire               better               negotiating               power               in               getting               lower               rates.
               http://www.hotel-online.com/News/PR2009_1st/Mar09_PKFEconomy.html






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