Understanding the Value of your Meeting- 5 Factors that Boost your Negotiations Power
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CIC’s Economics Significance of Meetings to the US Economy revealed in 2011, that over $1.8 million meetings were held and collectively supported 1.7 million jobs, $263 billion in spending, and $11.3 billion in state and local tax revenue. The next question you might have is…how valuable is my meeting and what kind of a negotiation’s position am I in? While it’s true the best negotiations are collaborative, they also require a certain amount of preplanning to understand your own desired outcomes, as well as, thoroughly understanding the concerns and the unique perspective of the person with whom you are negotiating. In this session you will learn: • How to size up your meeting’s 5 desirability factors, • How your meeting’s post event report specifically factors into the negotiation of your meeting, • How to enlist CVB partners to gain your post event report information and make meeting negotiations both hassle and stress free.
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Understanding the Value of your Meeting- 5 Factors that Boost your Negotiations Power
- 1. Understanding the Value of Your Meeting: 5 Factors That Boost Your Negotiation Power Terri Roberts DMAI’s empowerMINT.com Graeme Hughes Director of Convention Sales Metro Tucson CVB Christine “Shimo” Shimasaki, CDME, CMP Managing Director empowerMINT.com & Event Impact Calculator DMAI
- 3. The Desirability Continuum All meetings are NOT created equal. Higher Negotiation Leverage Lower Negotiation Leverage
- 4. Convene July 2012 ePanel Survey
- 5. Factor 1: Meetings Rooms to Guest Room Ratio “Space Hog” Lots of meeting space v. guest rooms Lots of guest rooms v. meeting space “Opportunity Creator” Higher Negotiation Leverage Lower Negotiation Leverage
- 6. Factor 2: History of Guest Room Pick-up “Attrition Attractor” History of low pick-up compared to block History of high pick- up compared to block “Just Plain Attractive” Higher Negotiation Leverage Lower Negotiation Leverage
- 7. Factor 3: Time of the Year “Amongst the Many” Meeting dates over times of historical high occupancy Meeting dates over times of historical low occupancy “Need Period” Higher Negotiation Leverage Lower Negotiation Leverage
- 8. Factor 4: Arrival patterns “The Blocker” Arriving on Monday or Tuesday Arriving on Sunday or Wednesday “Conventional” Higher Negotiation Leverage Lower Negotiation Leverage
- 9. Factor 5: Total revenue potential “That’s all she wrote” Limited or low ancillary revenue Lot’s of ancillary revenue “Kitchen Sink?” Higher Negotiation Leverage Lower Negotiation Leverage
- 10. Accessing Your P.E.R. 1. Register at www.empowerMINT.com 2. Access Your Profile 3. View and/or Discuss Your PER
- 15. • The EIC measures the economic value of an event in terms of spending, jobs, wages, taxes, and ROI Flexible Localized Comprehensive Funded by the Destination and Travel Foundation
- 16. Screen shot of economic impact results
- 17. Screen shot of economic impact results
- 18. Why do CVBs make perfect meeting planning partners? • They are the best first call to help you FIND the right fit for any size meeting – Comprehensive view of the destination – Local expertise – Extensive in-market relationships – And they’re FREE…to YOU!!!
- 19. CMP CREDIT • This session has been verified by CIC to qualify for continuing education credit. towards the CMP certification. • Participation has earned you .50 Clock Hours (30 minutes) for CMP-IS Domain: B Project Management • We will send you an email following the webinar that will give you a link to print proof of your participation • Simply list the course on your year-end detail. • Thank you for participating!
Editor's Notes
- Terri to do introductions and general housekeeping announcementsCVB Co-hostGraeme HughesDirector of Convention SalesMetro Tucson County Convention and Visitors Bureau BIO: Graeme has worked twenty three years in the hospitality & tourism industry focusing on sales & marketing. His career includes four years in Destination Management, thirteen years with Westin Hotels & Resorts / Starwood and five years with Loews Hotels before joining the MTCVB in November 2007. He is responsible for the management and execution of the Bureau’s convention sales effort, positioning Tucson & Southern Arizona as a premier destination for group meetings, conventions and events. Professional memberships include Meeting Professionals International, Destination Marketing Association International & Western Association of Convention & Visitors Bureaus.Special Guest Panelist: Christine “Shimo” Shimasaki, CDME, CMPManaging Director of empowerMINT.com & Event Impact CalculatorDestination Marketing Association International DMAI BIO: Christine Shimasaki, CDME, CMP joined Destination Marketing Association International (DMAI) as managing director of empowerMINT.com and the Event Impact Calculator. Ms. Shimasaki (or Shimo as she is known) brings over 16 years of destination marketing experience to her role. Prior to joining DMAI, Shimo served as Executive Vice President and Chief Strategy Officer for the San Diego Convention and Visitors Bureau. Currently, her job responsibilities include oversight for two partnerships, including empowerMINT.com with Tarsus, one of the top ten global trade show producers and the event impact calculator with Tourism Economics, a subsidiary of Oxford Economics. Shimo has been named as one of the “25 Most Influential People in the Meetings Industry” by Successful Meetings in 2012. She earned her Masters Degree in Business Administration at San Diego State University and was honored by SDSU’s College of Business Administration’s Charles Lamden Rising Star of Business Award. She has served the tourism industry as a board member to Professional Convention Management Association (PCMA), co-chair of the Performance Measures Initiative for Destination Marketing Association International (DMAI), and chair to DMAI’s Accreditation Board. Currently Shimo serves on the Convention Industry Council’s (CIC) APEX Standards Review Committee and PCMA’s Annual Meeting Program Committee.
- Terri Your meeting’s desirability…what a great topic don’t you think!??? We might think of how a certain man or woman is desirable…or more or less desirable than others, we might even extend this thinking to things like sport cars…but do we pause to think prior to beginning our negotiations just how desirable our meeting is to the hotels we plan to open up negotiations with! After all, when it comes to desirability, we all have to work with what we’ve been given…right? Or can we in the meeting’s industry-follow the lead of the beauty industry and do a few things to enhance the desirability of our meetings and increase our negotiation leverage.
- Shimo:First of all, planners must understand the value of their meeting to a hotel, facility or destination. And there are a number of factors which will effect your negotiation leverage. This leverage is important to understand and get a reality check…because let’s just face it….not all meetings are created equal. Some meetings are just more desirable than others and hotels and facilities are in the business to maximize their revenue potential. So let’s take a look at the 5 most important factors which effect your negotiation leverage keeping in mind that while we’ll look at these factors individually, the combination of these factors will be what's important because you can counterbalance factors of lower leverage with more factors that have higher leverage.And in a recovering economy, this shift is slowly occurring from buyer’s market to seller’s market and planner understanding of these these considerations even more important.
- Before we get into the 5 factors, let’s take a look at actual planner perceptions of what is most important to a hotel when determining the value of a meeting, take from the the Convene July 2012 ePanel Survey
- SHIMO-Tee up and then ask Graeme to add: Factor One: How much meeting space will you require compared to the number of guest rooms you’ll occupy?The most important revenue source for a hotel is the guest room and many hotels need their meeting space to sell a certain percentage, let’s just use 60%, of their guest rooms. If you require all a hotel’s meeting space and yet will only use 30% of their guest rooms, your negotiation leverage will be much lower. On the other hand, of you use only a small amount of meeting space and will occupy 60% of their guest rooms, then you have opened up the opportunity for the hotel to sell it’s meeting space to another group for more revenue potential—and the higher your negotiation leverage.
- Shimo to T-up and then ask GRAEME ? And to add: Factor 2: History of Guest Room Pick-upWhether you are dealing with one hotel or a number of hotels for a large meeting, your history of guest room pick-up or guest rooms actually utilized is one of the most important factors. If you have a history of contracting or blocking say 800 guest rooms and only pick up 600, this type of history will lower your leverage and most likely will attract attrition clauses in your contract because your meeting will be considered high risk compared to the other end of the spectrum where you’re just plain attractive if you have a great track record.Understanding and keeping track of your history is extremely important and is often not a practice amongst both novice and experienced planners. Once a meeting has concluded it’s always tempting to just “move on” and not obtain this documentation for your records. Hotels will require atleast 2 years, but in recent economic times…2 years may not tell the whole story, and you might need to include 3-4 years to be compreshensive. Later I’ll show you the tool at empowerMINT.com that allows you to track your PER or request it from a destination that you have meet in (if you have worked with a CVB) Mention Terri will show later how this works.
- Shimo to T-up and then ask GRAEME ? And to add: Factor 3: Time of the YearDifficult to understand destination to destinations…every hotel and destination have times when hotels are historically less occupied. An obvious time may be the days immediately before or after a national holiday. But this factor is highly dependent on the type of hotel (business oriented or resort) and destination when seasonality come into play.For example, you are amongst the many when your meeting dates are:Over a weekend in San Diego during summer vacation.Over a weekend in a resort destination like Palm Springs in the winterDuring the most popular citywide convention months of October & November and March, April, May in San Francisco During the week in a high volume business transient hotel like Washington DCConversely , you have greater leverage when you occupy need periods such asOver holidays or weekends in a high volume business transient hotel like at the airport in ChicagoDuring the weekday in “low season” like January in Denver.
- Shimo to T-up and then ask GRAEME ? And to add: Factor 4: Arrival patternsAgain, negotiation leverage is lowered anytime the hotel or facility can’t maximize occupancy. Most 2-3 days meetings arrive on either a Sunday or Wednesday/Thursday and fit back to back quite nicely. What upsets the apple cart is an arrival on a Monday or Tuesday which blocks the hotel’s ability to accommodate another group. However as mentioned before, this leverage could be offset if the meeting occurs over a time of the year of lower occupancy like holidays or right after a holiday when a Monday arrival would be acceptable.
- Shimo to T-up and then ask GRAEME ? And to add: Factor 5: Total Revenue PotentialIn addition the guest rooms, other hotel or facility revenue potential is highly valued, especially catered food & beverage, audio-visual, spa usage, and lounge activity. If your meeting and attendees have a history of spending a lot of money in these areas, you will have a higher negotiation leverage if you can provide documentation in a post-event report. And if the revenue occurs outside what goes on the master account…(bar spend, spa spend, etc. You need to ask the hotel to track this for you!)In a single hotel, easier to understand total revenue. Versus much less revenue if all you need is meeting space and guest rooms.
- What if you haven’t kept the best records of past meetings…, how do I get my PER easily?
- Demo eMINT functionality (slides not live)
- Discuss your PER or request one if you do not see your history reported.
- How do I understand how a DMO/CVB calculates the total worth of my meeting?Over 100 destinations who subscribe
- Terri:After having a full understanding of your meeting’s desired outcomes and requirements…the CVB’s destination experts will:Educate you on the type of hotels in their destinationHelp you understand the desirability of your meeting for the different types of hotels—whether that may beIf you have a lot of meeting space requirements; they can advise on which hotels have ample space or suggest dates during a citywide convention’s move-in dates. CVBs have a good pulse of the existing business in the destination.Educate you on the seasonality of their destination if lower rates are an important factor.Once the hotels are mutually identified…the CVB will reach out to the identified hotels and request their proposal based upon your requirements.All this legwork, saving you time and money…all for FREE
- Terri to review. Follow up email will provide a link to go to in order to print proof of credit.A word about CREDIT!!!
- Facilitate ?’s….TerriADD ANY SPONSORSHIP INFORMATION ON THIS SLIDE…Take any questions…Graeme and Shimo