In the world of corporate meetings and events, the battle for the best rates and contract terms is heating up as organizations navigate competing bids and interests in the hotel procurement process. According to a recent survey, 53 percent of organizations with meetings policies require securing competing bids from hotels to ensure the best deals.
However, in today’s seller’s market, there is a risk that waiting for competing bids could jeopardize securing space at a preferred property. Procurement processes, contracting delays, and high demand are all factors contributing to the challenges faced by organizations in securing the ideal venue for their events.
Some companies have attempted to leverage their business transient and meetings volume together to strengthen their negotiation position with hotels. However, hotels are generally not enthusiastic about this approach due to differences in rate structures and commercial arrangements between transient and group bookings.
McDonald’s global meetings manager, Josh Rice, emphasized the importance of hotels recognizing the value of their business, whether it be from business travel or group events. Rice highlighted the company’s commitment to reliability and delivery on promises, regardless of the booking type.
Other companies, like Aon, are exploring the combined volume approach to strengthen partnerships with hotels in key markets. However, challenges remain as some hotels are moving away from traditional RFP processes and requiring bookings through specialized portals to increase their margins.
As organizations continue to navigate the complex landscape of hotel procurement, the competition for the best rates and terms remains fierce, requiring strategic approaches and strong partnerships to secure successful event venues.