Creating Mutually Beneficial Contracts in a Seller's Market
By Becky Bromberg Vice President, Assistant General Counsel, Maritz Holdings | December 13, 2015
Co-authored by Meg Pisani, Director Supplier Relations, Maritz Travel Company
The Seller's Market
The current economic uptick has led to an extremely competitive hotel sourcing environment over the last couple of years. Both our client contacts and our team of travel buyers are facing similar challenges as we look to find adequate space for upcoming meetings, events and incentive trips.
A 2015 Successful Meetings Trends Survey showed that meeting planners' second most common concern was negotiating with hoteliers in a seller's market. In our most recent Survey of Maritz Travel Buyers in June on current trends and challenges, our buyers shared that:
- 45 percent of them are faced with inflexible dates/locations
- 31 percent are having to do more with virtually no budget increase
- 14 percent are tasked with looking for availability and options in hot, new markets
None of these challenges should surprise anyone reading this article; however, stagnant budgets and widespread availability limitations do provide an opportunity for a more transparent and simplified contracting approach between our clients and hotel partners.
Maritz Travel has identified three major ways the hotel negotiation process can be simplified in order to benefit both our client and our hotel partners: