458 Chapter 11 socializing will be especially important this year because the company is intro- ducing several new products. After reviewing several locations. Jon decided to have the meeting in Sacramento and asked his secretary, Christo gather infor mation and solicit bids from at least five Sacramento hotels. Jon is a hard-nosed businessperson who likes to get what he wants. To waste as little time as possible, he systematically examined his choices and narrowed the selection down to two Now it was time to make a deal. Jon was in his office when he received a call from Julia Chavez, the sales manager of the Monte Sereno Hotel in Sacramento. She began the conversation by introducing herself and her property a mid-range hotel with 248 rooms, 8.000 square feet of meeting space and a 5,200-square-foot ballroom that could be divided into four equal sections "We're so pleased you've selected the Monte Sereno as a possible site for your next meeting Julia continued. "I've spoken at length with your secretary and wanted to speak with you personally to be sure we understand your needs. Do you have a moment to talk?" Jon was at the start of a busy day and was a little annoyed at the interruption, but brusquely told her to go on. Concerned by his tone, Julia thanked him for his time and proceeded cautiously "I understand your group will arrive Sunday afternoon and leave Thursday, You'd like forty-eight rooms, single occupancy, and an opening night reception with heavy hors d'oeuvres. Is that correct?" "Yes, Jon grunted. "Chris told me that you'll begin each morning with a continental breakfast at 8:00 AM, followed by a general session at 8:30. The general session meeting room is to be arranged classroom-style, with a luncheon in a separate rom beginning at noon. From 1:00 to 5:00 PM, your account reps will break into groups of ten to fifteen and require separate meeting spaces." "That's right." Jon replied, except that everyone will be on their own at lunch time. Julia had carefully considered this sales opportunity, weighed the options, and decided on an appropriate rate before making the call to Jon. She had taken into account the property's sales history, which showed a 92 percent occupancy rate on the particular days InterTech had in mind. She was concerned because this meeting would use only 20 percent of the hotel's rooms while using 65 percent of the hotel's meeting space. From her standpoint, it wasn't a great piece of business. Julia Chavez wanted the business, but she wanted it on her own terms. She took a deep breath and continued "Well, we do have those dates available for your meeting. We can offer the guestrooms at $99, a reduction from our standard S110 rate, and other the meet ing space you need at $1,000 per day. However, I know that getting high value for your dollar is a consideration for everyone these days, s, if you can be flexible and change your dates to a Wednesday arrival and a Sunday departure, I can offer the rooms to you at $85 and waive the $1,000 charge for the meeting space-if you will hold your farewell banquet with "I can't believe this son said, his voice rising. "The Salton Hotel down the street has the dates I want and they can give them to me at the rate you quoted! Marketing to Meeting Plans 459 Granted, I prefer your hotel Overall, but I have to consider my company. This meeting has been set for a long time some of my people have already made travel plans. We've even scheduled the speakers I can't go back and change things now! Why are the rates so different later in the week Julia was prepared for this response and answered him as tactfully and hon- estly as she could. "I'm aware of your concerns and I know it would be difficult to move the meeting, but I wanted to give you the option. Since were both business people. I know you'll understand that I have to consider my property's financial position in all of this. Our sales history shows that we have our highest occupancy during the first part of the week-between 9 and 100 percent but later in the week that number declines to around 60 percent that's why I can give you a lower rate at that time. Because were sold out or almost sold out from Sunday through Thursday, it doesn't make sense financially for us to offer you the lower rate early in the week "Look" Jon said, "I can appreciate where you're coming from, but I don't see how I can change this meeting-even if I can save a lot of money "I understand your situation and want to work with you in the future, Julia replied, "but I'm not sure we can meet your needs this time. Down the road, if you bring me your next meeting, I'll throw in a free cocktail party. I think you'd be very pleased with our hotel. We have outstanding food and a very friendly, courteous staff. I hope you'll come and visit us when you're in town." Jon hesitated. Since he really wanted to stay at the Monte Sereno rather than the other hotel, he didn't want to let the matter drop. "What about this Julia: if I agree to the higher rates and choose you over a competitor, will you do a few things for me? I'll pay the room rate if you'll throw in the meeting space for nothing. I also want that free cocktail party you just mentioned. In addition, I'd like you to give us turndown service throughout our stay a free USA Today in every room, and, waiting for my account reps when they arrive on Sunday a mint and a welcome note from me in every guestroom." Discussion Questions 1. Do you think Julia should agree to host the meeting on Jon's terms? Why or why not? 2 How could Julia further negotiate each of Jon's demands and end with a win win conclusion? Case Number: 3700B This case was developed in cooperation with lor and Randy Kinder, authors of Necmc: A Trind & The Guide to Get More Roms Business. The No Vacancy Company: Jacksonville, Florida