Meeting, Conference and Convention Planners Should "Lock In" Now!

The meeting, conference and convention business is an historically cyclical one. In certain economic conditions, the hotels have the upper hand, while at other times, customers are in a more advantageous position.

As we all know, the American economy has been weak for the last couple of years. Whether we call it a recession, or a near recession, many Americans have suffered financially, as have many businesses. This period has been a troubling one for many hotels, with occupancy rates for their rooms, and attendance rates for meetings, conferences and conventions, at lower levels, and the Food and Beverage departments revenues having dropped. Since Food and Beverage represents the second largest profit center for a hotel (only Bar is higher), most well run hotels have adapted, and granted more concessions and been more willing to be flexible than at most other times.

Having worked in this area for three decades, I understand the delicate balance between pushing too much and pushing too little. If a customer is in a position to be in a better negotiating position, he should do so when he can.

Most projections are indicating that the hotel industry is projecting improvement in the foreseeable future. Recent articles and industry conferences are suggesting that group rates for rooms will be edging up, and that undoubtedly will be followed by Food and Beverage increases as well.

Therefore, those planning meetings, conferences and conventions anytime in the next four years should lock in as much as possible now. Customers should fully negotiate as much detail for their Food and Beverage packages as they can, and ask nicely for concessions. Those organizations that do not act soon will lose out on a terrific opportunity, and will be costing their organizations and their attendees money.