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Hotels Should Offer Daily Delegate Rates With 10-15% Savings for Business Travel Events

Here’s an idea that some may like and others outright reject: instead of developing marketing programs to attract and lure meetings to hotels and convention centers, perhaps this is a good time for conference services managers to work closely with finance to streamline pricing into daily delegate rates for business travel events?

It’s amazing the number of different offers that appear in emails and envelopes every day:

  • 4-10% discount to Master Account
  • Complimentary LCD support package
  • Complimentary food and beverage for breaks
  • Fourth night stay free
  • Extra loyalty award points
  • Point programs toward future meeting credit

And perhaps one of the more creative approaches seen recently was the establishment of an online auction for large group meetings on selected dates. Whether its intent was to encourage business on particular dates or to resell a cancelled program, it basically presented the meeting planner with a 12.25% discount on the total value of the program. I have to show you a variation of it:

Package Program, Location, Date
Attendees 600
Guestrooms 400
Dates of Meeting Limited to Specific Dates, 4 days/3 nights
Meeting Value 650,000
Current Bid 200,000
Buy Now Amount 570,000

The range of offers is exhaustive, and I know that meeting and event planners have noticed the pattern.

Behind each promotion is a target discount price somewhere in the range of roughly 5-12%. And behind every offer is the hope and anticipation that hoteliers and conference centers will eventually return to a pricing structure that isn’t sustainable today.

One reason these promotions can be successful is because hotels understand that procurement departments love to capture negotiated savings, and this helps to support that. However, many probably realize that this is an artificial savings.

By the way, most meeting planners are finding themselves busier than ever, having to organize more events with fewer attendees throughout the year. So to dig through promotional discounts to find the best price only adds to the work load.

While I can certainly appreciate the marketing ideas and opportunities from the sales and discounts on meeting space (not to mention the potential advertising prospects for meetings media), maybe it’s time for hotels to commit to the current price reductions while establishing flat meeting package rates that will allow planners predictability for their budget?

Daily delegate rates: half day morning, half day afternoon, all day, and daily overnight guest room rates. And these daily delegate rates should remain consistent throughout the year or simply adjust for seasonal differences.

Learn more about where daily delegate rates work for business travel events and its potential trend into the U.S. and elsewhere.

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