RECR 470 Lecture 18: Webinar Notes

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Recreation and Parks Management
RECR 470
Matthew Stone

4/18/17 In-class Notes: Webinar - Industry Trends o Overall spend on mtngs, events & incentive travel expected to remain flat, but activity may drop signif. for lrgr mtngs o Supply o hotel inventory to pull ahead of demand in 2017/place further pressure on hotellers pricing power o Hotel occ. remains @ historic highs/healthy growth in av. daily rate (ADR) o Hotels refocus on rev. mgmnt to max. profitability o Planners focus on adoption of mtngs mgmnt programs w/increase of tech. use to improve data collected to make strategic decisions o More mergers/acquisitions are expected in hotel industry o Given expected stagnation in domestic bus. travel, cont. growth in domestic leisure travel will remain key to fueling US travel industry o F&B prices expected to rise globally due to increased prod. prices, changes in imports/exports, & growth of special dietary requests from attendees o 40%+ bus. trips are extended for leisure purp. known as “bleisure travelers” o Top budget request for 2017 safety/security - Mtng Planner Survey Challenges o Increased hotel mtng supp. costs o Hotel contract terms/added hotel fees & surcharges o Increased expectations by senior mgmnt for cost savings & ROI o Additionally  49% planners feel pressure to enhance mtng results - How Hotels Value Your Mtngs o Variables that influ. pricing/avail.:  Transient demand  Arrival/departure pattern  Rooms to space ratio  Group F&B rev.  Lead time  Season  History  Potential incremental rev.  Value of total acct.  Risk  # of rooms held vs. ability to pick-up block  Cancellation/attrition clauses in contract  Oth. groups contracted over same dates/rev. contrib. - Industry Profit Margins o Rooms  77% o Group F&B  38% o F&B outlets 19% o Rec/spa 15% o Retail/misc. dptmnts 15% - Mtngs = BIG investments o Have a nego. plan for ea. mtng - Create Custom Master Hotel Contract Template/Amend for Ea. Mtng o Inc.:  All hotel contract components/clauses  Value added concessions  Hotel fees/surcharges  Perf. clauses  Legal dptmnt liability lang.  Gen. cost savings/risk reduction report for ea. mtng - Sleeping Room Attrition o Guar. a % of total room block w/no sliding scale o Nego. cut-off date that works w/group history o Add resell clause vs. liquidated damages o In event of damages, calc. on prof not rev. - Mtng Cancellation o Present perf. clauses that are fair to org./hotel o Sliding scale damages do the math o Base damages calc. on prof., not rev. o Inc. mitigated damages/resell clause o In event of damages, apply % to future mtng o Advanced depos./refundable or applied damages - F&B Guarantee o Verify F&B spend from last yr. mtng o Benchmark est. F&B proj. based on mtng agenda, # of attendees & av. menu prices o Hotel F&B guar. doesn’t inc. service charge/sales tax o Contracted guar. to inc. 20% allowable attrition o 45 days out, assess your attendance & actual F&B spend - Published Rate Clause o No lower rates offered after contract is signed  Protects company if mtng attendees make resos around group room block  No lower rates offered once contract is signed  If indiv. is attendee of group’s mtng & has doc. reso in-house @ hotel, regardless of room rate, group will receive credit for attrition purp. - Fees/Surcharges o N
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