Hotels React to Bad Economy with Great Deals

Now is the time to book your next Firm Retreat and take advantage of the great deals while they last.

By Christopher Bragoni

No matter what you may have heard, read or think, there is a silver lining to the current economy. Record low occupancy has forced hotels to negotiate more than ever before to fill guest rooms. In my 25 years in the meetings industry, I’ve never seen the wheeling and dealing that’s going on today. To confirm group business, hotels are offering not only very low rates but also are reducing attrition and cancellation fees among many other incentives. Bad economy or not, now is the time to book your next Firm Retreat.

It’s no secret the economy has caused budget cuts and reduced spending. Often times Firm Retreats are among the first to go. With an uncertain economic future, many firms are holding off on booking retreats until the economy becomes stronger.

Although that may seem like a very logical business plan, if one takes a closer look, its not. The decline in the number of meetings being booked has forced hotels to become very creative to confirm group business. Never before have Hotels offered such low risk contracts or as many promotions, concessions and discounts as are available today.

“Now is the time to be strategic and take advantage of short term booking opportunities” says Kim Napolitano, Senior Director, Hilton Hotels Sales.

Attrition and cancellation fees are a huge concern when planning a meeting in an uncertain economy. In order to reduce risk and future liability to planners, many hotels are now offering “attrition free” and minimized cancellation clauses to groups. Here are just a few of them:

Hilton Hotels is offering 25% and 30% attrition (depending upon the group size) as well as discounted A/V and rebates to the master account on multi year group contracts.
Hyatt Hotels & Resorts launched a corporate initiative offering a 6% rebate off the master bill.
Summit Executive Centre’s offered “Pay What You Think” program in March of this year.
Starwood Hotels of California, Texas and Arizona are offering a 4% rebate to the group master account.
Rosen Hotels, at 3 of their 7 Orlando, Florida hotels are waiving attrition for groups of 400 room nights or more.
Marriott’s new “Meetings Matter” promotion offers a 25% attrition, 1/35 complimentary room ratio and a 2% rebate to the group master account.
The Rancho Bernardo Inn in San Diego is waiving attrition for new bookings.

Outsourcing to a third party can also help protect you in cases of attrition and cancellation. Hotels will allow third party planners to replace business lost to cancellation or attrition with business from other clients; therefore reducing or eliminating these fees.

These deals won’t be around forever. Now is the time to act.

About the Author:
Christopher Bragoni is Director, Global Accounts with HelmsBriscoe, the largest and most respected meeting site search and selection firm. Christopher has over 25 years of global hospitality and meetings experience and specializes in Law Firm Retreats. He can be reached at 323.654.0432 or Christopher Bragoni