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Keeping it SiMMPle logo

                                                                                                           

                                                                                                       Volume 8, May 4, 2011
In this issue:
H is for Helpful Hoteliers

Greetings!

Welcome to Keeping it SiMMPle, a bi-monthly newsletter aimed at making and keeping your Strategic Meetings Management Program Practical, Light, and Effective. For Meeting Managers and Procurement Specialists, this newsletter will assist you in finding practical solutions and provide advice on actionable steps to gain visibility and control of your organization's meeting spend.  For Suppliers, you will gain insights into the issues that your clients face, and how you can support their SMM programs. In addition, Keeping it SiMMPle will highlight key industry trends and identify tips that will make your job easier.

Each issue of Keeping it SiMMPle addresses a component of the A to Z of SMM from a Practical, Light & Effective perspective. In this issue H is for Helpful Hoteliers.  

Your hotel partner, whether on property at an independent or chain hotel or at an above property level such as a National or Global Sales Office (NSO/GSO) should be acting as a helpful extension of your Strategic Meetings Management team. Hoteliers, listen up! You have a tremendous amount of information and support that you can offer to your client that will benefit them, and increase your value from generic supplier to trusted advisor. Although I am speaking mainly to hoteliers, these principles apply to other suppliers as well.

 

You have the ability to bring a lot to the partnership:

·         Be proactive in all things; do not wait to be asked.  This will position you as more thoughtful and more strategic, and as looking at the big picture, not just waiting to respond to a stand alone RFP

·         Share best practices from other clients and from your peers with your clients. You are in a unique position to see a variety of processes, business models and innovations, proactively share this when not a conflict of interest

·         Share with your clients the spend data you have for them. If it is early on in the development of an SMMP, they may not have this information.  If they are already collecting their own data, it is great validation to compare the data. Some of the data that would be interesting to your clients would be:

o    Overall number of meetings

o    Total spend, ideally combined with transient spend, if applicable

o    Who is signing the contracts (it could be 3rd parties, administrative assistants, or?)

o    Outstanding cancellation fees

o    Aggregate savings based on concessions, rate reductions and other negotiations

·         If you are dealing with procurement in addition to the meeting planning team, be sure to understand what is most important to each of them, as frequently they have different concerns

·         You can help to educate staff on new company meeting policy. If a meeting request comes from a department that should not be calling the hotel directly, let them know the proper channels to use

·         Don't assume your client knows what the positive outcomes could be if they shifted more market share to you. Be sure to have that conversation so that they might see increased savings and you might see increased sales

 

We referenced standard hotel contracts in the previous "Going Global" issue of Keeping it SiMMPle. Let's dig a little deeper into this idea.  Standard hotel contracts are so appealing because it eliminates the need to re-negotiate contract Terms and Conditions (Ts and Cs) for each and every contract.  Once there is a standard agreement in place you are able to focus on the business terms of the contract, such as dates, rates, meetings space and concessions.

I agree that it can be a time consuming process to come to agreement with the legal counsel from your organization and that of the hotel company, but the upfront work really pays off when you are doing numerous contracts with the same hotel entity.

 

Standard contracts can be done with:

·         Hotel chains or independent hotels that are frequently used

·         A specific property that might be used frequently for day use or catering only meetings such as properties close to headquarters or regional offices,

·         Day meeting package terms that include set meal, room rental, and audio/visual costs in addition to set Ts and Cs.  The benefit is that anyone planning a meeting for the company can feel confident that they are getting pre-negotiated pricing; and the added bonus is reduced negotiating and planning time.


SiMMPle Tips:

Tip #1: Respond to online RFPs within 24 hours or less.  In this fast paced world, you will miss out on business opportunities if you do not respond within a very short period of time. Clients will not wait for your response, they will pick from the responses they received and move on to the next meeting.

 

Tip #2: Hoteliers, do the math for clients, especially regarding savings and concession! For example, if you have offered 1 two bedroom suite for 4 nights at the group rate as a concession, spell out the savings. Instead of $700/night, it is now just $200/night, a savings of $500/night, or a total of $2000.  If you have provided 1 comp per 50 rooms on a cumulative basis and the room block is 500 room nights, there is another $2,000 in savings.  Again, do the math...you get the idea.

 

Tip #3: If you do not meeting to share data and future trends with your client on a quarterly or annual basis, ask to have such a meeting wither by phone or in person

 

Tip #4:  Be practical! If you only have the potential to do a few small local meetings with a particular client, all of these activities would not make sense. On the other hand, if you have seen a number of meetings in a short period of time, or a number of meetings in various geographic regions, you should begin a dialog with your customer.

 

 

Did you know... 

        

·  Bondurant Consulting conducts Strategic Meetings Management training for hotel Global/ National Account Directors, Directors of Sales and Directors of Marketing.  In addition to defining the components of SMM, the training provides guidance on the nuances and implication of Strategic Meetings Management on the sales process, such as the ability to work effectively with the Procurement department.

·        

  At the recent ISM/GBTA meeting in New Orleans last week, industry professionals continued the dialogue about the importance of aggregating  business travel and group meeting & event spend in the hotel category

·          

San Diego State University will graduate 100 students from the L. Robert Payne School of Hospitality and Tourism Management, of which 100% will be going directly into an industry position; 35% of those into meeting and event roles!


Warm regards,
 

 

 

Sincerely,
Betsy Bondurant, CMM, CTE
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Contact Information:
betsy@bondurantconsulting.com
phone: 619.701.7709

 

About Bondurant Consulting
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Bondurant Consulting provides the following services:  

  • Assessment of SMMP potential for your organization   
  • Development and implementation of SMMP for meeting & travel managers.
  • Training programs for hotel companies and 3rd party meeting planning agencies which increase their understanding of Strategic Meetings Management, resulting in more successful engagements with clients who are involved with SMMP.
  • Support for the RFP response process
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