FlyerTalk Forums - View Single Post - Experiences with block bookings at US hotels
Old Aug 28, 2016 | 11:35 pm
  #5  
writerguyfl
 
Join Date: Mar 2008
Location: Fort Lauderdale, FL
Posts: 3,359
When you secure a block of rooms, virtually everything is negotiable. If you want your guests to earn HHonors points and to be eligible for possible space-available upgrades, make sure you tell your Sales Manager.

As for discounted pricing, it will depend on many factors. The most important of those factors is the hotel's expected occupancy on the days for your group. If they anticipate being sold out, it would be unlikely that they will offer a discount. (In some cases, a hotel might even decline to offer any group rate.) Conversely, if the hotel will be half empty, you may get a great deal.

I used to be a hotel Revenue Manager. Part of that job was coming up with rates for the Sales Managers. Usually, people who weren't professional meeting planners were disappointed with the rates we offered. They always wanted massive discounts because they were giving us "so many rooms". But, 50-100 room nights really isn't much.

Example: A 150 room hotel has 54,750 room night to fill each year (150x365). A group of 40 rooms for three nights is 120 room nights. That's only 0.22% of the total room nights. Very few businesses will offer massive discounts to someone who only provides 0.22% of total yearly revenue.

The hotels in which I worked were very aggressive with group rates. Not all hotels are like that. So, you may get a great rate. There's no harm in asking for a better rate during the negotiation process. If the hotel won't drop the rate, ask if they will do something like offer some food & beverage discounts. We sometimes provided 2-for-1 drink coupons (alcoholic or non) for groups. That's a win for both sides; the group gets something and the hotel got some revenue.
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