Mary
Kay Keating, Revenue Optimization Specialist for Carlson Rezidor Hotels –
Americas, provided an overall view of this relatively new discipline to the
meetings and events industry. She explained how a meeting is evaluated
from a revenue management standpoint to determine if a group, or which group,
if there were more than one vying for the same dates and space, would prove to
be more profitable for the hotel to award its space to based on the venue’s
revenue goals for the timeframe in question.
To illustrate, two different
RFPs over the same time period were evaluated and the anticipated revenues
from each RFP’s specifics were compared. Audience opinion was then asked as to
which group would make more sense for the hotel to book. A lively exchange
between planners and suppliers also followed on important information (such as
history, deal-breaker concessions, F&B budgets, etc.) that could be
included in the RFPs or RFIs that will give hotels a clearer picture of the
group’s event requirements, which in turn could facilitate a shorter response
time to benefit planners.
Four key points were highlighted during the presentation:
1. Being flexible on your meeting dates can help create a win-win for planner and supplier.
2. Understand that there are numerous channels that a hotel may receive a request for availability.
3. Be familiar with Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) acronyms and how they could be used during negotiations.
4. Know the total value of your meeting when negotiating with hotel partners.
Mary Kay ended the program with a quote from Matt Schalk: "If they pick the dates, we pick the rates. If they pick the rates, we pick the space. If they pick the space, we go case by case."
A very special "Thank you!" to the Embassy Suites Kansas City -- International Airport Team for hosting this meeting and providing a delicious breakfast. Special mention to the ESKCI Team members Susie Muchow (Sr. Sales Manager), Maria R. Davis, CMP (Sales Manager), Carolyn McClure (Director of Sales and Marketing), Debera Nichols (Director of Catering) and Mike Klingensmith (General Manager) for making it happen for KCMPI!
