Market Analysis

Planner Challenges in Hotel Negotiations

Learn key challenges from our Sep'24 Planner Survey & discover ways to improve transparency & flexibility in hotel negotiations for stronger partnerships.

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Understanding the Planner’s Perspective: Key Challenges in Hotel Negotiations

Meeting and event planners face various challenges when negotiating hotel contracts, impacting their ability to secure deals and stay within budget.

To better understand these pain points, we conducted our September 2024 Planner Survey, which revealed key areas where the negotiation process could improve for planners and hotels.

From resort fees to contract flexibility, the results shed light on opportunities to enhance communication and transparency, ultimately fostering stronger partnerships between planners and hotels. Here’s a closer look at the most significant challenges planners are facing:

Most planners diligently review hotel contracts – but hidden fees still cause friction.

Resort Fees Lead as the Most Difficult Charge to Justify to Clients (2)

Key takeaways:

In our September 2024 Planner Survey, we found that resort or destination fees rank as the most difficult charge for planners to justify to their clients, with over 30% of respondents citing these as the most problematic.

This highlights a significant pain point in hotel negotiations. Planners are often met with skepticism from their clients about the value of these fees, making it harder to close deals or stay within budget. This reinforces the need for greater transparency to maintain trust and satisfaction among planners and their clients.

 

Lack of flexibility in hotel negotiations remains the biggest challenge

planners say lack of flexibility in hotel negotiations is their biggest challenge (2)

Key takeaways:

Nearly half (47%) of planners in our survey indicated that the lack of flexibility in hotel negotiations is their biggest challenge. While resort fees and hidden charges also present hurdles, the rigidity of negotiation terms is a standout concern.

Planners seek more adaptable solutions to meet their event needs, particularly in customizing agreements and avoiding excessive service charges. This data underscores the importance of hotels being open to more collaborative discussions, ensuring they can accommodate planners' unique requirements and foster long-term partnerships.

Resort Fees: A Key Hurdle in Client Justification

Resort Fees Lead as the Most Difficult Charge to Justify to Clients (7)

Key takeaways:

Even though 81% of planners diligently review hotel contracts, hidden fees still present challenges. This highlights a gap in the process where some costs might not be communicated clearly as needed during negotiations.

By improving clarity and transparency early on, hotels and planners can avoid confusion, reduce friction, and streamline the contracting experience for all parties involved.

Conclusion: Bridging the Gap in Hotel Negotiations

The insights from our September 2024 Planner Survey highlight areas where planners and hotels can collaborate to improve the negotiation process.

Addressing challenges like resort fees, contract flexibility, and hidden costs will streamline negotiations and build trust and long-term partnerships.

By enhancing transparency and fostering more open dialogue, hotels can better meet planners' needs, resulting in smoother contracts, satisfied clients, and more successful events.

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