Archive for September, 2009

Negotiating for Meetings – Part I

Thursday, September 10th, 2009

The economic downturn has created some positives for planning meetings. This is the first time since late 2001/early 2002, that planners have some leverage. The reason? We are now in a buyer’s market. Industry research projects an overall 7.5% drop in revPAR in 2009, one of the largest annual declines since the 1930’s. There will be a 2.9% increase in hotel supply due to construction that is near completion. And the 2009 year-end occupancy rate is expected to hover around 59%, a far cry from the earlier average 80% rates. This means better times for planners. Some economic indicators show, and industry experts agree, this won’t last – it looks like they could turn around in 2010. Hotels are very interested in getting deals signed before this year’s end. Contracts signed in 2009, can be for events held this year, in 2010, or beyond. Therefore, if the contract is negotiated properly, you can reap the rewards now without having to spend any money in 2009. The key is to act now, and benefit from this unique buyers market. (more…)