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Article Excerpt
As corporate transient demand spikes, corporate meeting buyers next year can expect less power when negotiating room rates, ancillary fees and contractual terms with hotels. However, hotels remain hesitant to reject potential corporate meeting business and are signing contracts with minimal increases.
"Hotels are confident in 2005 occupancies and rates and will look to increase their share of transient business at higher rates," said Bjorn Hanson, head of PricewaterhouseCoopers' hospitality and leisure practice. "They are not going to minimize meetings, but they will primarily shift to the individual traveler."
Corporate meeting buyers can expect negotiations to be more difficult than they were in 2003 and early 2004, Hanson said, as hotels will continue to yield-manage individual meeting aspects, including meeting room rental and food and beverage costs, charging widely variable prices based on demand (Meetings Today, April 26). "Unless you're picking up lots of room nights, hotels will not be willing to negotiate across the board," Hanson said. "Planners who are flexible still can find the kinds of rates they paid in 2003 and early 2004, but if...
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