It’s happened to most hoteliers: An event planner is really excited to host their gathering at your hotel, negotiations are in the works, and everyone is all smiles. Then, seemingly out of the blue, they say that it’s not the right fit. Or they stop responding to your emails altogether. Either way, you have no idea what happened!
So why do planners put an end to negotiations? Usually, it falls into one of three buckets: bad communication, a lack of transparency, or unprofessional behaviour. More specifically, here are six reasons that planners pull out of negotiations, as well as tips for you to keep them talking and book the business.
1. Lack of Flexibility
When you go to a dealership to buy a car, you never take the first price they give you. Planners often think the same way about hotels’ event proposals. Even if you’ve given them all the discounts you can from the beginning, they may think you’re just not being flexible.
That’s where communication comes in. Be transparent upfront about where you can give a little and where you can’t. When further discounts aren’t an option, offer a complimentary amenity, suggest a less expensive date, or see if it’s possible to move budget from one place to another (say, from audiovisual to food and beverage).
In the end, planners just want to make sure that their money is getting maximum return. “Many hotels do a one-size fits all approach. It would be great if they could have more attention to detail in the beginning and personalise it to my organisation’s needs”, says a corporate planner in the 2019 Cvent Planner Sourcing Report.
2. Answering Questions Inaccurately
Sharing incorrect information with clients will completely damage the trust in your relationship. While a slip-up early in the negotiation process might be an innocent mistake, a client will undoubtedly start imagining what type of errors could happen if the deal goes through. Will someone forget the catering? Will there not be enough rooms?
Mistakes are especially difficult now that planners are so busy organising so many events. In the 2019 Cvent Planner Sourcing Report, 10% of respondents say they organise 50 or more events per year, and over 70% manage 11 or more events per year. Since these multitasking professionals have so much on their plate, there’s no room for error.
3. Failing to Pay Attention to the Details
Every planner knows that a great event experience is in the details, so they want to make sure their hotel or venue partners will come through even on the little things. And it has to start from the very first interaction: the RFP response. In the 2019 Cvent Planner Sourcing Report, a planner says that, “It’s the little things that matter. Most event planners are very focused on the big picture – so it really helps when the hotels/conference centres pay very close attention to ALL the details that the planner gives them. If the planner misses something, the hotel is there to pick it up”.
That attention to detail must continue into and beyond negotiations. Make sure you’re thorough during negotiations and in the contract. Be proactive about presenting everything you have to offer. Planners may not be aware that you can customise a menu or have extra picnic tables you can set up for an outdoor event.
4. Discovering Hidden Costs
Cost is, of course, one of those details that must be addressed from the beginning, and it’s extremely important to make sure you’re providing planners with final, all-inclusive estimates. The price will always be a major consideration, but keep in mind that more than half of planners said their budgets are increasing for most types of events, and over 70% of planners expect savings of at least 6% before they’d consider switching to a second-choice venue, according to the Cvent Planner Sourcing Report.
That means that cost isn’t the only thing that will earn you a planner’s business — so there’s no reason to conceal charges. Instead, work with your potential clients throughout the negotiations process to help them allocate their funds carefully and efficiently. Highlight the unique spaces and experiences your property offers and show planners how you can work within their budget.
5. Lack of Understanding of Requirements
In order to effectively showcase all you can offer an event, you must start by being very clear about its objectives and requirements. Understanding these aspects will help you be a better partner to the planner throughout the event life cycle, including negotiations. By trying to squeeze them into a space that’s too small or persuade them to change a core aspect of their meeting, you’re more likely to burn bridges for both this event and any future business from that planner.
“Even if a venue does not provide something we want, this should be clearly stated in their RFP response. We do appreciate, however, when a venue applies lateral thinking to our needs and makes unexpected recommendations”, says a corporate planner in our 2019 Planner Sourcing Report.
Again, make sure that you’re transparent about your hotel’s capabilities and spaces — and that you’re confident you can deliver a successful event — before the contract is signed.
6. Poor Customer Service
A great attitude goes only so far, though. The customer service itself is even more important, because when it isn’t up to snuff, it reflects badly not only on the hotel but also on the planner. In addition, excellent service must start during negotiations, not on the first day of the event. A bad experience with the booking process will prevent repeat business for 20% of planners in the Cvent Planner Sourcing Report.
If you can prevent that bad booking experience by offering flexibility, transparency, accuracy, good communication, and a collaborative attitude during negotiations, you’ll improve your chances of booking more MICE business and, even more, earning more planner loyalty.