Sourcing Tip of the Month: June

Here is our HPN Global June 2019 sourcing tip of the month – provided by our amazing Sourcing Coordinator, Grecia Montaño.

RFP System Refresher:

A friendly reminder to our meeting suppliers to provide as much information as possible when filling out your RFPs. If you have alternate dates, please propose that option instead of turning it down. Another helpful thing to know is that under hotel comments, this area is a great section for you to communicate directly with the HPN Associate with additional information beyond dates, space and rates and really sell your property. If that particular program you are responding too, really works well at your property, show it in the comments! No detail is too small when we’re reviewing responses to RFP’s as we work hard to find that perfect fit for our clients.

Sourcing Trend:

We had a new “Top 5” Soured cities for the month of May including Austin/Dallas & Atlanta which are typically not seen in the top 5 destinations! We love seeing new cities pop up as trend. See below for the Top 5:

1. Austin
2. Atlanta
3. Phoenix/Scottsdale
4. Dallas
5. DC

Grecia Montaño
Sourcing Coordinator
gmontano@hpnglobal.com

 

 

 

 

 

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2019 Hotel Contract & Negotiation Trends

Google “hotel trends 2019” or something similar and what will come up is pages and pages of information on event experience, engaging an audience, marketing to millennials, or driving attendance. What does NOT come up is all the ways hotels are looking to maximize their profitability through contract negotiations and how that impacts the meeting host or end user.

Supply of rooms is increasing in sync with room demand; leaving occupancy flat in 2019 and average rates are up just below expectations at 1%. Hotels are looking for other opportunities to grow revenue and maximize profits.

Driving F&B Spend: If you have sent out an RFP to multiple destinations or even several hotels in one destination, you have seen how widely the F&B minimum can vary. That is because some hotels calculate F&B spend as a per-person, per-day spend. Other hotels will have an F&B minimum assigned to specific meeting rooms, based on how many people that room can accommodate. Many times, the salesperson is just entering a number they were given by a revenue manager or supervisor.

AV Spend: Audiovisual costs are skyrocketing. Partially due to individual users having multiple devices, requiring more bandwidth. But AV companies are also bundling services into packages to upsell and create more revenue. My recommendation is to always get a detailed AV quote on the front end, once you have narrowed down a short list of venues. I have seen the same in-house AV provider at different hotels be $10K apart on pricing. In other words, company ABC that is in-house both at Chicago Hotel A and Chicago Hotel B, delivered two different quotes that are $10,000 apart. When possible, you can also save some money with a few pieces of your own equipment, and writing in a clause that AV discount will still be applied if you bring in certain pieces of equipment.

Resort Fees: Marriott is taking advantage of its position in the market by standing firm on resort fees. I attended a Marriott luncheon recently and asked about this topic. The response I got is that there is a strong push from leadership to not waive the resort fee. Not only are they enforcing that added cost, but they are also writing that into the contract as part of the total revenue commitment. Marriott and other hotel companies are trying to sell the value of the resort fee by having it include WiFi and sometimes parking. Although city center hotels will still charge a steep price for overnight parking. City hotels are making their attempt by instituting a daily amenity fee which may include WiFi, a welcome drink, and all the typical inclusions such as a fitness center or daily newspaper. Although we may not be able to waive these added fees, the best strategy is to negotiate what is and is not included, to make sure there is true value being delivered.

Lead Time / Booking Further Out: Hotels are at once preaching to clients to book further out, while often turning away business of a certain size if it’s “too far” out. If a hotel has 500 rooms and your 200 room group comes along looking 2+ years out, a hotel may decide they do not want to commit almost half their inventory to your group. They are hoping a larger group comes along with a higher total revenue contribution, and then they can layer in a smaller group over the large one. It’s all ways to make the puzzle fit perfectly. Maximizing day of week pattern, meeting space allocation, sleeping room inventory, and incremental revenue. While your contract only holds you to sleeping room and food & beverage revenue, the hotel is anticipating that your attendees will also spend money in other outlets.

To learn more about how I can help you with any of the above and more, please contact me at JShkolnik@HPNGlobal.com

 

Julie Shkolnik

Vice President, Global Accounts at HPN Global

 

Are you interested in working for HPN Global? Click Here to get started.

Sourcing Tip of the Month: May

Here is a recap of our sourcing tip of the month – provided on our monthly conference call to all of our associates.

Sourcing Trend:

Puerto Rico is rebounding and ready for business! Receiving a record number of visitors as they continue to rebuild. New hotels are opening, hotels damaged are renovating and scheduled to reopen in the coming months, and travel to the island is at an all-time high.

Promotion Alert! 

HPN Global clients receive a Strategic Partner offer for Aruba!

Considering booking your event for any time between May and December 2020, and receive exclusive HPN Global concessions.  Contact us for participating hotels (each offering their own additional concessions).

Enter to win a CLEAR Membership

HPN Global and CLEAR want to put you at the front of the line. 

Whether you plan to join us in Seattle for #HPN19 or not, here is your opportunity to win a year of free Clear! HPN Global and CLEAR want to put you at the front of the line. Being an industry leading organization, we know what it’s like to be at the front of the line – and we want to take you with us. 

Enter here http://bit.ly/FREECLEAR to win a CLEAR membership on us. Winners will be announced on Tuesday, August 13th.  

Laura Hess

Senior Sourcing Specialist 

Lhess@hpnglobal.com

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Sourcing Tip of the Month: April

Sourcing Trend: Top Sourced Cities for Q1 were:

  1. San Diego
  2. Orlando
  3. Chicago
  4. Phoenix / Scottsdale
  5. Dallas

Total RFPs sourced are up 12% from last year’s Q1!

Date flexibility continues to be key. If you can look at a flexible pattern within the week and/or the weeks prior or after, this may help open availability and provide more options. Even if you want to select one set of dates, we suggest allowing for hotels to offer alternate dates, just to see what comes back. This is a huge timesaver on short term leads, which we have seen a big increase this year!

Talk to your HPN Global Associate about this and we will be happy to help guide you!


Courtney Tate:
Senior Sourcing Specialist
ctate@hpnglobal.com


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Desi Whitney Recognized as a 40 Under 40 by Connect

Desi Whitney, senior vice president of sourcing operations and industry relations at HPN Global, was recognized as a member of Connect Corporate magazine’s “40 Under 40.” The honor highlights the top young professionals in the events industry. Connect Corporate is a national, B2B magazine that provides resources and ideas to professionals and planners in the meetings and events industry. 

Peers in the events world nominated Whitney. Nominations were received from across the country, then reviewed and evaluated by the Connect staff based on references, industry involvement and other resources. 

Congrats Desi!

For the full description of Whitney’s accomplishments, click here.

The entire list of recognized honorees and individual profiles can be found here.

ABOUT CONNECT

Connect is a leader in the meetings, events, travel and tourism industry. Specializing in destination marketing, the company produces digital programs, online and mobile solutions, meetings business and travel magazines, trade shows and consumer events, travel guides for newspapers and leisure magazines, and destination information which is distributed through broadcast and custom programs. Connect, formerly known as Collinson Media & Events, introduced the popular Marketplace format to the meetings industry and now produces national shows for meeting planners in the Corporate, Expo, Sports, Diversity, Association and Faith sectors as well as other state- and region- specific meetings- and hospitality-focused events. More information about the company’s brands and services is available at connectmeetings.com.  

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