How to Win More Hotel Business with Negotiations

How can your hotel generate more revenue? Is low room occupancy dulling your hotel’s atmosphere and hurting your profits? Negotiations with your customers, clients, and local businesses can support your sales efforts and fill up your rooms during both high and low seasons.

With the expertise of a negotiation training and consulting firm, your hotel sales and marketing strategies can avoid leaving money on the table. Negotiations work to boost business opportunities and maximize customer spend. There are many ways negotiations can bring in more guests and secure more revenue per guest.

Qualify Group Business for Extra Discounts

Like most other businesses, hotels enjoy higher profits when they attract groups. So, it makes sense to negotiate better terms for groups than individuals. The bigger the group, the higher the discount.

Yet, not all groups bring the same kind of value per guest. For instance, one group of 50 may book banquet facilities for dinner. The group might spend $2,000 collectively. Another group of 20 may book rooms on full board all-inclusive. This second, smaller group pays $3,600 and therefore brings in more value than the first. If your hotel doesn’t offer the second group a higher discount, one of your competitors may.

A negotiating class can prepare your managers to assess the overall profitability of various groups. Different sales strategies determine how to look at guest values. Some revenue points to note are:

  • Catering spend: How much is the group likely to spend on food and drinks?
  • Type of booking: Direct bookings are more lucrative than tour operator bookings.
  • Room types: Will the group book standard or luxury suites?
  • Length of stay: How long will the group stay?
  • Room block size and attrition rates: How many guests book the rooms on hold?
  • Space-to-rooms ratio for events like classes or exhibitions.
  • All-inclusive bookings: Will the group book for meals, soft drinks, and alcohol?
  • Sports, business and other facilities: Which hotel facilities will the group use?
  • Group history: If they have used the hotel before, they are likely to come back again.
  • Hotel transfers: Will the group need regular transport services to and from the hotel?

Negotiate Pricing Referrals with Local Suppliers

Many modern business and leisure travelers want to connect with the local culture. Hotel rooms often don’t reflect the local customs and features. So, travelers may lean toward local hotspots such as Airbnbs and inns.

To avoid losing business, hotels can reach out to local vendors to negotiate co-promotions. Partner with local suppliers by offering a referral commission. Negotiation classes equip managers to identify the best potential partners. Some local suppliers who might boost your hotel business include:

  • Event planners
  • Concert organizers
  • Tour operators and other tourism business professionals
  • Catering companies
  • Sports organizers
  • Taxi and car hire services
  • Local restaurants
  • Conference halls and audio-visual experts for events
  • Airlines

A pricing referral can work both ways as a cross-promotional sales strategy. If planners or travelers tell you they want a more authentic experience, you can introduce them to your partnerships with local businesses.

Negotiate with Hospitality Marketers

There’s a growing list of marketing pros wanting to work with hotel brands. Negotiating great deals with external marketers can boost your brand’s exposure. In this way, you can promote your hotel through word of mouth.

What you offer as part of your guest package will depend on the marketer’s interests and their audience.

A few examples of possible hospitality marketers are:

  • Travel writers for magazines
  • Travel editors
  • Travel bloggers
  • Food enthusiasts
  • Social media influencers
  • Talented photographers

Working with more than one marketer can result in different guest experiences to attract varied demographics.

For example, a photographer can wow their audience with visuals of the amazing views your hotel boasts, while a food reviewer can attract audiences looking for a great dining experience.

Related Articles

Latest Articles

All Categories