Navigating the Hotel/Site Selection/RFP Process

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Lots of tips, tools and resources are available to help meeting, convention and program planners launch successful events.

By Jim Schultenover

With the growth in the demand for face-to-face meetings, conventions, incentive/recognition programs, leisure travel and individual business travel, the hotel and resort industry is achieving new heights in occupancies. In fact, more than 40 of the top 55 markets in the United States are experiencing room occupancies above their long-term average, with 19 of those markets at record highs. These strong occupancy levels are projected to continue for at least the next two years.

Combine this with the fact that there has been little growth in new construction (inventory) of hotels in North America and the renewed recognition of the effectiveness and ROI of face-to-face meetings and programs, and it is quite apparent that supply has not kept up with demand. This is also true for the Caribbean and overseas as well.

So it can be a challenge to navigate the hotel/site selection/RFP process when planning meetings and programs for your franchise.

But no need to stress, as there are many effective tips, tools and resources to assist you in navigating the market.

Hotel/Resort Site Selection

Whether you are planning a large convention or a smaller meeting for your franchisees or corporate officers, one of the most important decisions to make is where to host your program.

Among the “program necessities” to determine or identify at the onset are:

  • The objectives and focus of the program, and the best venue(s) that will support your branding, message, and attendee expectations. The hotel or resort should “paint the picture” to properly reflect the character, quality and market position of your organization.
  • The desired city or region, and where your core attendees will be coming from. While the city does not necessarily need to be close (depending upon the program), identifying “access points” to airports or mass transportation may be a key consideration.
  • The size of the program, in terms of the number of attendees, guest rooms needed, and the meeting space required. In calculating this, be sure to take into consideration your group’s anticipated growth in the future.
  • The desired dates for the program. With the current high demand, where several groups may be vying for the same dates at a hotel or resort, it is very beneficial to book as far in advance as possible. It is also advantageous if you can be flexible with your dates, and with patterns of arrival/departure (such as arriving at a resort on a Sunday rather than a Thursday, or at an urban hotel on a Sunday, rather than a Tuesday).
  • The desired season for the program. Every location has a peak season and a slower season. Impressive values can be found at luxury-level and upper-upper tier hotels and resorts if you can take advantage of their off-season or shoulder season specials. This may even be “on sale” as much as 50 percent off of normal peak season rates, providing the exceptional opportunity for your franchisors or franchisees to experience the style and beauty of a Four- or Five-Diamond hotel or resort, which may not have been otherwise attainable.
  • Whether networking and/or access to on-site or off-site offerings are important to the success of the program.
  • Whether a city hotel or resort is a better fit for the program. There are certainly advantages to both, with resorts often offering more on-site networking opportunities and recreation options, while distinctive city center hotels may provide easier and more timely access for attendees and the vast entertainment and dining options of the city. Hotels in smaller cities should be considered as they typically provide a great value, are very service-driven, and often are very accessible.

When these factors are determined and identified, it is important to act quickly to secure your desired hotel(s) or resort(s), dates, rates, terms and conditions. As with a franchise, where you act quickly to secure the right locations, it is imperative to not delay and to “snatch up” the desired rooms and space when it is available.

Also, be sure to anticipate your franchise’s future growth, with your conference needs, so that you will be well-prepared when the meeting date arrives. This includes incremental growth, such as executive board meetings for a larger board of directors or for more multi-unit owners.

Make Your RFP Stand Out

Now that you have identified the needs and desires for your meeting or program, how can you best make your RFP (Request For Proposal) stand out from the pack?

Here are some tips:

  • The more key information you include in your RFP, the better. The hotel wants to address all of the group’s critical needs, so providing an accurate picture of the program and its needs in a simple format, is beneficial for you, your organization, and the hotel.
  • List potential dates in order of preference. (At least three or four sets of dates, if possible.)
  • Provide the group’s room rate range at the top of the RFP (based on your group’s history).
  • Communicate if you have date and/or pattern flexibility for the best options and values.
  • If it must be a certain date, reflect that for clarity, and present any requested concessions in a priority format, focusing on only those most important to your organization. RFPs with too many concessions listed are far less likely to survive in the daily RFP reviews when other business is seeking the same dates.
  • Only include destinations/properties that qualify for serious consideration when distributing your RFP.
  • If possible, provide the event history, what other hotels/destinations are being considered, and the key motivations and objectives for the program (other than just pricing and availability).
  • Consider a multi-year contract, which would lock-in the desired dates and rates.
  • Be realistic about your rates, for the venues and season you are requesting.
  • Share the profile of your attendees, and their potential to place business on their own.
  • Let the hotel know if the group will provide ancillary revenue (food and beverage functions, golf tournament, spa, additional on-site events, water activities, audio/visual, etc.)
  • Let the hotel know if you can sign a contract quickly, which is a major advantage.

Identify Your GSO/NSO

A great way to identify properties that will suit your program’s specific needs, and for your RFP to stand out, is to work with a global sales organization / national sales organization  of your favorite brand, such as Associated Luxury Hotels International, as they are “one-stop shops” with multiple options. They can check multiple hotels, on multiple levels, in multiple destinations with one discussion. This saves you time (and resources) by not having to call and explain your desires to each of the hotels or resorts you may be considering. GSOs and NSOs direct your program opportunity to their on-site sales partner at each hotel, emphasizing the importance of your meeting, and ensuring a quick and meaningful response.

GSOs and NSOs also can suggest alternative solutions to fit your needs, and can provide insight into bargains or cancellations which may have just taken place. They also can help influence their properties on the importance of accepting your business over other opportunities. So, let them advocate for your RFP and program, to ensure it receives the proper attention and full consideration for a positive and very timely response. 

Jim Schultenover is president of Associated Luxury Hotels International. Find him at fransocial.franchise.org.

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