Money Talks 60 Minutes.pptx - GoMeeting
Money Talks!
7/10/15
Money Talks! Budget-‐Driven Mee/ng Planning to Impress your Boss & Advance your Career Janeé Pelle)er, MBA, CMP Chief Opera)ng Officer C&LC pelle)er@gomee)ng.com www.gomee)ng.com
Gripe session….
WHAT DO YOU HATE THE MOST ABOUT MEETING BUDGETING?
Janeé Pelle5er, MBA CMP -‐ [email protected]
1
Money Talks!
7/10/15
Why care about the budget? • Your boss cares (and so does his/her boss, and the board of directors) • Increase your strategic value to your organiza5on • Get yourself a seat at the big table • Elevate the mee5ng planning profession
Where we’re going today… 1. PuWng your best foot forward in RFPs for the best deal 2. Nego5ate financial contract terms like a superhero 3. Build a budget template that automa5cally adjusts based on a^endance 4. Cheapskate’s guide to saving money at your mee5ng
Put your Best Foot Forward: RFPs for Success Leveraging your Financial Assets to Nego/ate the Best Deal for your Organiza/on
Janeé Pelle5er, MBA CMP -‐ [email protected]
2
Money Talks!
7/10/15
It’s All about Revenue Management • “Heads in Beds” is no longer enough – Hotels consider your total spend • Sales managers have less autonomy – Revenue manager balances your business against other poten5al business – You may lose!
Brainstorming session….
WHAT REVENUE DOES YOUR GROUP BRING TO A PROPERTY?
Tell the Whole Story in your RFP • More than just dates, rates, and space • Verified room block history (3+ years) • Other group spending: – F&B history (3+ years) – AV history (3+ years) – Ancillary services: security, power, internet – Offsite events that could be moved • Affiliate spending: suites, outlets, etc.
Janeé Pelle5er, MBA CMP -‐ [email protected]
3
Money Talks!
7/10/15
Major Financial Contract Terms Nego/ate & Protect your Organiza/on’s Assets
Legal Disclaimer The informa5on in this presenta5on and all related a^achments or handouts is provided solely for educa5onal purposes, and not intended as a subs5tute for legal advice. By use of said materials, par5cipants assume all legal and financial risk for any and all contracts or agreements based on the concepts or specifics of this material. Neither the author nor FSAE assume any liability for the use or misuse of the informa5on contained herein. It is always advisable to seek legal advice on contractual maUers.
Financial Hot Spots: Hotel Contract • • • • • •
Deposits Room Night Performance & A^ri5on Sliding Scale Rental F&B Minimum and Cost Management Cancella5on Master Account Rebate
Janeé Pelle5er, MBA CMP -‐ [email protected]
4
Money Talks!
7/10/15
Deposits & Cash Flow • Nego5ate staggered deposit terms – Money you keep = profit you make • Specify master billing approval process & 5meline • Offset organiza5on deposit with a^endee deposit instead
Room Block Performance • Credit for all rooms booked, regardless of booking method • Confirmed rate or escalator clause • Lowest rate clause • Credit for walked guests
A^ri5on Protec5ons Timeline for evalua5on/release Audit clause Resell clause A^ri5on penalty based on hotel profit, not rate • Waiver for hotel occupancy >95% • • • •
Janeé Pelle5er, MBA CMP -‐ [email protected]
5
Money Talks!
7/10/15
Sliding Scale Room Rental • Limits your exposure when performance could be an issue • Sample scale: Room Block Pickup
Room Rental
80 – 100%
complimentary
65 – 85%
30% of rack rate
50 – 65%
60% of rack rate
below 50%
100% of rack rate
• Can offset room rental against F&B minimum at 1:4 ra5o
F&B Cost Management • Establish maximum annual increase – A^ach current menus for price reference • Nego5ate discount on list prices • Limit service charge increase • Waive minimum service numbers, server fees, bartender fees, etc.
F&B Minimum / Performance • Clarify gratuity terms for minimum • F&B performance based on hotel profit (
7/10/15
Money Talks! Budget-‐Driven Mee/ng Planning to Impress your Boss & Advance your Career Janeé Pelle)er, MBA, CMP Chief Opera)ng Officer C&LC pelle)er@gomee)ng.com www.gomee)ng.com
Gripe session….
WHAT DO YOU HATE THE MOST ABOUT MEETING BUDGETING?
Janeé Pelle5er, MBA CMP -‐ [email protected]
1
Money Talks!
7/10/15
Why care about the budget? • Your boss cares (and so does his/her boss, and the board of directors) • Increase your strategic value to your organiza5on • Get yourself a seat at the big table • Elevate the mee5ng planning profession
Where we’re going today… 1. PuWng your best foot forward in RFPs for the best deal 2. Nego5ate financial contract terms like a superhero 3. Build a budget template that automa5cally adjusts based on a^endance 4. Cheapskate’s guide to saving money at your mee5ng
Put your Best Foot Forward: RFPs for Success Leveraging your Financial Assets to Nego/ate the Best Deal for your Organiza/on
Janeé Pelle5er, MBA CMP -‐ [email protected]
2
Money Talks!
7/10/15
It’s All about Revenue Management • “Heads in Beds” is no longer enough – Hotels consider your total spend • Sales managers have less autonomy – Revenue manager balances your business against other poten5al business – You may lose!
Brainstorming session….
WHAT REVENUE DOES YOUR GROUP BRING TO A PROPERTY?
Tell the Whole Story in your RFP • More than just dates, rates, and space • Verified room block history (3+ years) • Other group spending: – F&B history (3+ years) – AV history (3+ years) – Ancillary services: security, power, internet – Offsite events that could be moved • Affiliate spending: suites, outlets, etc.
Janeé Pelle5er, MBA CMP -‐ [email protected]
3
Money Talks!
7/10/15
Major Financial Contract Terms Nego/ate & Protect your Organiza/on’s Assets
Legal Disclaimer The informa5on in this presenta5on and all related a^achments or handouts is provided solely for educa5onal purposes, and not intended as a subs5tute for legal advice. By use of said materials, par5cipants assume all legal and financial risk for any and all contracts or agreements based on the concepts or specifics of this material. Neither the author nor FSAE assume any liability for the use or misuse of the informa5on contained herein. It is always advisable to seek legal advice on contractual maUers.
Financial Hot Spots: Hotel Contract • • • • • •
Deposits Room Night Performance & A^ri5on Sliding Scale Rental F&B Minimum and Cost Management Cancella5on Master Account Rebate
Janeé Pelle5er, MBA CMP -‐ [email protected]
4
Money Talks!
7/10/15
Deposits & Cash Flow • Nego5ate staggered deposit terms – Money you keep = profit you make • Specify master billing approval process & 5meline • Offset organiza5on deposit with a^endee deposit instead
Room Block Performance • Credit for all rooms booked, regardless of booking method • Confirmed rate or escalator clause • Lowest rate clause • Credit for walked guests
A^ri5on Protec5ons Timeline for evalua5on/release Audit clause Resell clause A^ri5on penalty based on hotel profit, not rate • Waiver for hotel occupancy >95% • • • •
Janeé Pelle5er, MBA CMP -‐ [email protected]
5
Money Talks!
7/10/15
Sliding Scale Room Rental • Limits your exposure when performance could be an issue • Sample scale: Room Block Pickup
Room Rental
80 – 100%
complimentary
65 – 85%
30% of rack rate
50 – 65%
60% of rack rate
below 50%
100% of rack rate
• Can offset room rental against F&B minimum at 1:4 ra5o
F&B Cost Management • Establish maximum annual increase – A^ach current menus for price reference • Nego5ate discount on list prices • Limit service charge increase • Waive minimum service numbers, server fees, bartender fees, etc.
F&B Minimum / Performance • Clarify gratuity terms for minimum • F&B performance based on hotel profit (
