Tony Pastor is a manager in the learning department of McKinsey & Company, a management consulting firm with over 100 offices worldwide. He is responsible for the site selection, negotiation and contracting for over 100 domestic and international learning programs annually, with operational responsibility for the firm’s leaning centers in Austria and Singapore.
What’s a key early step in negotiations?
When requesting space by email, phone or via an online service, clearly identify your “must-haves” and other key requirements. For example, you may need to avoid certain competitors, or you may need 24-hour hold on all space, or you may have deposit constraints. No need to waste your time or the hotel’s time if these requirements are not available.
What exactly should I negotiate?
We all know our basic requirements, e.g., room block, meeting space, F&B. But how can you avoid those extra charges that often creep into the final bill?
Review the final bill from the last meeting or two. This is where you will see those unexpected charges like parking, audio-visual, labor, setup or teardown charges.
How hard should I push?
Push harder than you ever have before. If you get the rates and concessions most or more than half the time, you are not pushing hard enough. So after getting competitive bids, after reviewing prior invoices develop an aggressive price point and list of concessions. You can always increase your offer if refused, but you can never lower your offer once accepted.
Aspire to get rejected regularly. You then know you are pushing appropriately.
What special terms might a planner seek?
In days of tough cancellation/attrition policies and strict yield management, try to negotiate that additional rooms when added are done so at the original contract rate and terms.
Renovations and facility availability. This clause guarantees that during your event all restaurants, and recreational facilities will be fully operational during normal operation hours and no major renovations will be ongoing.
What terms need extra special attention?
Cancellation clause must be reasonable, i.e., not be excessive in assessment of damages and must also make sense from a timing point of view for both the hotel and the client. This means you should review key dates for you, e.g., promotion timing or decision-making events
Indemnification clauses can be very dangerous. Be sure your legal counsel create the indemnification clause or at least reviews any included in contracts you sign.
