exam 3 Flashcards
(45 cards)
proposal letter
- before offering a letter of agreement/contract send proposal letter
- after site visit or receiving RFP
- proposal should reflect professional image and no hotel jargon
negotiation
- two or more parties try to reach an agreement for mutual benefit
why is it necessary for the meeting planner to guarantee the guest rooms
- helps hotels meet their room to meeting space ratio
- helps planners lower costs like room rentals & F&B minimums
termination clause
- both parties excused from liability: Force Majeure
- forces beyond control
cancellation clause liquidated
- set $$ by meeting planner and hotel for set damage # in event of cancellation
- high risk for HOTEL
cancellation mitigated damages
- hotels wait until after event dates to collect damages (actual damages incurred by property to cancellation)
- difficult to calculate
- high risk for MEETING group
multiple meetings contracts
- benefits: efficiency in negotiations & planning, guaranteed business
- cons: lack of flexibility to seek most profitable market
hotels that consider multiple meetings contracts must be careful and keep what in mind when considering?
- a hotel’s negotiator should be reasonably sure that the hotel can make more money hosting several meetings for this group than it would make hosting meetings at the proposed times for several diff groups
hotel-managed reservations
easiest & most efficient way for hotels to manage & control (receive directly)
convention center housing bureaus
beneficial if the meeting is spread out over several hotels (online housing system)
third party companies
- ex. expedia
- beneficial if group is complex
- fees paid to 3rd party, reservations in several hotels
rooming lists
- prepared by meeting planner
- generally used for small corp. meetings
room block
the # of rooms needed for each meeting day specified by meeting planner
- cutoff date = 30 days before meeting
guestroom attrition
- if actual guestrooms used are sig. less than the rooms blocked, hotels may charge attrition fees (clauses in contract)
booking outside the block
- booking rooms at hotels other than those specified
- booking rooms within the specified hotels but not as part of the convention
pickup
guest rooms that are used
slippage
guest rooms that are unused
rack rate
- official hotel room price
- rarely used for conventions bc they negotiate group rate lower than rack rate
split rates
- rates based on room types, better for larger groups
run-of-the-house rates
- flat rates
- common for small groups
- all guest pay same
discount rate
- spreadrates
- common for large groups
guestroom problems
- No shows: review group history (overselling could be an option)
- more sig. at high demand resorts
overbooking
- be prepared to “walk” guests to other hotels
- plan ahead for overbooking
typical function space
- ballroom
- exhibit halls
- breakout rooms
conference rooms