Making A Hotel Group Booking?

In the last three decades, I have observed countless organizations that cost themselves, financially as well as in time and energy, by arranging groups with hotels in an amateurish, rather than professional manner. Organizations that have set up a professionally designed approach have better fulfilled the needs of the group, the organization, and the attendees to the meeting, event or conference. Organizations should set up a procedure for contacting hotels with their group that they use whenever they shall be using twenty or more rooms per night. This is even more true when the meeting will also include Food and Beverage requirements. The following are some of the steps that should always be included:

(1) It is essential for the group organizer or coordinator to fully understand the group's needs. There must be a realistic estimate of guest rooms required, as well as any meeting rooms, food and beverage, etc.

(2) The group organizer must prepare a detailed budget, and must fully understand all costs involved. These costs include any needed complimentary rooms, guest room rates including all taxes, service charges and fees, meeting room rental (if applicable). and food and beverage expense (including taxes and mandatory service charges).

(3) A professionally prepared, detailed RFP (Request for Proposal) must be utilized, and must be sent simultaneously to multiple properties that might meet your needs. In the RFP, all needed hotel concessions, group rates offered, food and beverage concerns, and special needs and requests must be requested. The RFP should be accompanied by a cover letter with a brief overview of the organization and the history of this event, if any. In this cover letter, each hotel should be informed that the RFP is being submitted to multiple hotel properties, for competitive bid? The letter should also clearly list a cutoff date for return of the RFP for review. Today, much of the Request for Proposal procedure has been dramatically simplified, as many properties offer online requests.

(4) Much has to do with who is footing the bill for this meeting. Is the full cost being underwritten by the organization? Is the full cost being underwritten by attendees? Are the costs being shared in some manner?

(5) From a budgetary standpoint, is the intent to make money on the event?

(6) If the guest rooms are being paid for by attendees, what is the point where price becomes a major factor, in terms of attracting attendance?

(7) How does the organization pay for the master billing? Is there a need to establish credit? If there is, the organization should be prepared to submit a minimum of three references to establish the needed credit, and these references must be hotel properties that the organization has previously established credit with.

(8) What are the full costs that the organization will incur, per attendee, as well as in total? Is this cost justified in terms of the value of the event?

(9) A procedure must be in place prior to receiving the proposals back. This procedure must be how the proposals will be reviewed, by whom, what checklists to use.

(10) The organization must create a set of internal priorities, so that the competitive proposals can be compared, reviewed and evaluated. Are there any particular issues that might be "deal breakers?"

These ten items are not nearly all the factors that come into consideration in securing a group booking that will be optimum. However, they are a good beginning, and organizations that do not follow a procedure similar to the above, generally either overpay, don't get what's needed, sign a bad contract, etc. In today's competitive market, organizations should carefully review clauses regarding attrition, guarantees, givebacks, etc. Organizations need to have a thorough understanding of factors that impact their group bookings process, including optimizing hotel negotiations, food and beverage negotiations, needed hotel concessions, and letting several hotels compete for your business. If an organization utilizes the steps listed above, in addition to having an understanding of these other relevant issues just mentioned, the organization will get far more "bang for their buck."