Hotel Sourcing. 

 

It’s the beast with a dozen different names — aka “Venue Searching,” aka “Venue Contracting,” aka “Hotel Contracting,” aka “Event Contracting,” aka “Event Sourcing,” aka “Incentive Destination Hotel Booking,” aka “the art of searching, finding, comparing, negotiating, and contracting a hotel (or venue).” But perhaps you know by its most common name: “stress and headaches.” 

Sourcing the perfect hotel or venue for a corporate meeting or incentive program is hard. I know. I’ve done it. I do it every day. Over 1,400 times since 2014 alone.

As Founder and CEO of one of the world’s premier, bespoke, full-service agencies specializing in national sales meetings, corporate events, and incentive experiences, I’ve spent the last two decades sourcing unique hotels and venues for thousands of corporate events and incentive programs. 

More importantly to you, perhaps, is I know what it’s like to be in your shoes. Prior to starting Dunaj Agency, I spent 22 years in Finance and Sales & Marketing in management and executive roles for some of the largest pharmaceutical and biotech companies on the planet. I was tasked with that remarkable challenge of trying to design unforgettable incentive program experiences for my organizations, in addition to all of my other responsibilities.  

What I’ve found to be true, almost unanimously, is that the biggest stress centers around the time-consuming procurement process of sourcing the perfect hotel that stays within the budget, matches the objectives of the event, and creates the most memorable experience for attendees. Balancing all the little details that make up that “and” is what makes all the searching, back-and-forth negotiation, contract review, selection, and execution so challenging. Not to mention, when you don’t do it every day, you don’t know what you don’t know.

Yet, as fate would have it, the most difficult aspect is also cited as one the most important factors in making an incentive program experience memorable. It’s also the largest expense to the allocated budget.

Having been on both sides of the fence, I deeply understand that for the modern Corporate Travel and Event Manager, all the time spent planning, designing, sourcing, managing, and executing an incentive trip, meeting, or event, is just one of the hats you wear. Knowing the stress and headaches you face, I’ve dedicated a great portion of my life’s energy to creating solutions to alleviate that stress. 

That is what this guide is for.

Everything the modern Corporate Event Planner needs to know about Hotel Sourcing.

It’s also why I built Dunaj Agency as one of the only travel incentive companies in the world serving the Experience Economy, with a carved-out niche team dedicated exclusively to Hotel Sourcing and Venue Contracting. 

Because if what you learn in this guide resonates with you (I think it will), and it seems like too much to do it all yourself (I think it is), we have a dynamic team (I think you’ll love) of creative experts standing at the ready to make the most difficult, but paramount part of your job, as light and enjoyable as a golden-hour dinner on a private beach of one of the world’s most exotic islands. 

What’s beautiful is, after reading this guide you’ll be empowered and equipped with the industry secrets and knowledge you need on how to source the perfect hotel for your sales meeting, corporate event, or travel incentive program on your own, or to choose to sit back, relax, and let us serve you. 

The best part is, when it comes to Hotel Sourcing with Dunaj Agency, everything is c’est la maison qui offre! Compliments of the house! 

Rick Dunaj

Founder & CEO  |  Dunaj Agency

P.S. — I’m not kidding about that last part. Spilling the biggest secret up front. One I wish everyone knew: It is literally FREE (that means NO COST TO YOU) to engage us for your Hotel Sourcing needs. More details inside.

 

There’s Just Something About Those Words

 

A glass of vino and hors d’oeuvres on an outdoor patio of a charming bistro overlooking the Amalfi Coast. ATV rides up and down the desert bluffs of Los Cabos. The cheers and energy of experiencing a concert in The Sphere on the lit-up Las Vegas Strip. The soft, restorative therapy of sound bowls, meditation, and spa treatments for the wellness conscious at a primitive natural retreat. Or, to be simply left alone with a good book, a pool-side lounge chair, and drink service. Though varied in its forms and preferences, an unforgettable vacation experience speaks to the deep places in us all.

I’m curious, what is it for you?

We all love to make money. But there’s just something about those words “all-expenses-paid trip” that stirs something visceral in the soul. It’s literally what our dreams are made of. Built into the human psyche is an innate need for wandering and rest. Simply put, vacationers are happier than non-vacationers. 

 

Capturing Maximum Happiness

 

What flies under the radar for many, according to a recent Dutch Travel Survey, is that the highest levels of happiness experienced by those going on vacation actually occur in the weeks and months before a trip. Vacations, aka corporate-sponsored trips, are experiences people look forward to. For most, the enjoyment starts weeks, even months before the holiday actually begins. It’s the anticipation of an upcoming opportunity to relax and reduce stress that has the most powerful impact on mood, happiness, and motivation. In fact, various studies show that while the memories last forever, the post-trip happiness of a vacation lasts a maximum of a few weeks before the vacationer returns to pre-trip levels of stress. However, pre-trip happiness can last for several months. 

Just imagine for a moment, the excitement you would feel if you knew your dream vacation was all planned and set? Now imagine the productivity and work environment that can be generated, for several months in advance, within an entire team of happy and motivated associates boosted by the exciting anticipation of an upcoming, one-of-a-kind, all-expenses-paid vacation?

For companies looking to capture maximum happiness and return on investment out of their National Sales Meetings, Corporate Events, President’s Club Awards, or Incentive Trip Programs, finding a way to harness the power of pre-trip happiness is critical. All this pre-trip happiness is built upon, fully reliant on, and centered around, the ability to find and contract a perfect hotel, venue, and destination for your event or incentive trip. In industry terms, we call this Hotel Sourcing or Hotel Contracting.

 

Why Hotel Sourcing Is So Critical

 

Despite the modern-day capabilities of artificial intelligence, and the powers of filters and photoshopping, no one is filled with anticipatory happiness over a parking-lot-facing, ground-floor room of a recently downgraded two-star hotel, whose pool is closed for construction. Not even free HBO, cold a/c, or the rubbery eggs at the free hotel breakfast can overcome a poorly chosen venue (although memories of the “experience” may live forever). I may be exaggerating a little, but you get my drift.

According to one recent study, “destination attractiveness” is the most significant factor, behind only social interaction, in creating memorable travel experiences. (Fear not introverts, a memorable travel experience can also be designed with zero-to-minimal social interaction!) 

Finding their place right there in the top five factors just behind “destination attractiveness”, are “excitement” and “novelty.” According to this study, three of the five most significant factors in planning a memorable travel experience are tied directly to the destination hotel. This intuitively is agreeable to our personal experiences. Spaces and places have the power to set a mood. The chosen venue or hotel becomes a living, breathing aspect and extension of the overall travel experience. One could argue it’s more than an extension, but the frame for the entire experience itself. It creates the atmosphere in which the event is enjoyed. 

In addition to all this, Incentive Research Foundation identifies hotel spend as the largest expense for incentive travel today, making up 25% of the average allocated budget. 

Its preeminent importance in the budget, combined with its complicated, time-consuming procurement process, and significant influence over the overall experience, makes Hotel Sourcing or Hotel Contracting the most important issue to be addressed in the meeting, event or incentive trip planning process. 

 

 

Seven Secrets About the Hotel Sourcing Process

 

Whether you’re new to planning corporate meetings or incentive trips, or you’re in a similar role as I was, sourcing hotels for a company event as an added responsibility to your day job, or you’re a full-time meeting and events director with the grey hairs to prove it — Hotel Sourcing is the biggest source of stress and frustration in the entire planning process. Sourcing that perfect hotel commands your energy and attention on its own, without needing any convincing from me. There’s no escaping it. This is why Hotel Sourcing is consistently ranked as the most stressful part of organizing group travel, demanding the largest allocation of time. 

My hope is to equip you with the insider knowledge you need to be more educated about the sourcing process, more confident in your direction and decisions, and more prepared to handle the biggest common challenges you’ll face along the way. Whether you are choosing to go the D-I-Y route, or looking to partner with an agency to meet your Hotel Sourcing needs, here are seven secrets you need to know. 

 

1. Learning the Lingo

 

I wish I had a silver bullet for this one, but sometimes the situation calls for lead bullets only. Like every industry, the Experience Economy has its own acronyms and terminology that can make an outsider feel like everyone is speaking babble. What makes Hotel Sourcing more challenging when it comes to “talking the talk,” is the added confusion of contract legalese. Contract negotiation and review is such a significant part of the Hotel Sourcing process, it forces the meeting planner not only to know the industry lingo, but also have a competent understanding of legal terms. If you’re looking to travel outside the country, foreign language barriers and local slang are added flavor to the verbiage jambalaya. While a little spice is nice, too much can be hard to digest.

My advice? Do your best to familiarize yourself with the most common terms and don’t be embarrassed to ask questions. Even after nearly 30 years in the business, I still hear words and phrases that are new to me that I need to ask for clarification on. Sometimes, it’s just a new way to communicate an old concept. 

While I can’t possibly address every word you need to know here, I’ve included a few key terms to get you started. (If you’re experienced in the industry, feel free to “TLDR” and skip ahead to #2.)

 

Key Terms

• • Hotel Sourcing. This is the process of finding and securing accommodations for a group or event by identifying, negotiating, and contracting with hotels. As I mentioned upfront, it’s the beast with a dozen different names. For purposes of this guide, I’ll refer to it as Hotel Sourcing or Contracting.
  • Addendum. This is a document added to the original hotel contract. It can add the group’s preferred contractual clauses, show a change in dates, outline a change in the room block and/or meeting space, etc. Think of this like a change order to the standard agreement and a very effective tool in customizing your event. 
  • Attrition. This is the difference between the number of rooms contracted and the number of rooms actually used/occupied by attendees.
  • Average Daily Rate (ADR). The measure of the average amount paid for a revenue-generating hotel sleeping room sold during a given time period. The ADR formula = Room Revenue/Rooms Sold.
  • Average Negotiated Rate (ANR). The average of the range of contracted group rates for various room sizes over a period of time.
  • Average Published Rate (APR). The average of the range of published rates for various room sizes over a period of time. (Note: Ideally you want your ANR to be lower than the hotel’s APR and close to its BAR – or lower).
  • Best Available Rate (BAR). The lowest published rate for various room sizes over a period of time.
  • Commission. A percentage of the contract revenue that goes to the group and/or third party assisting with the contracting process. Typically, between 7-10%.
  • Contracting. The process of agreeing to terms and conditions to guarantee a property/venue for a meeting/event. It outlines dates, number of sleeping rooms, specific meeting space, food and beverage spend, concessions, etc.
  • Cut-off Date. The date when the rooming list of attendees needing a sleeping room is due to the hotel. Sometimes the cut-off date coincides with an attrition deadline as well, e.g., if the cut-off date is 21 days prior to the event and you have 80 people, but 100 sleeping rooms, there could be a penalty at that time for the unused rooms.
  • Force Majeure.  This is a contractual clause that can be invoked during certain emergency situations where it’s impossible or improbable for a party to fulfill their contractual obligations due to events beyond their control.
  • Group Audit. This is a review of the group’s rooming list compared to the guests staying at the hotel. The purpose is to find anyone who may have booked their hotel stay on their own instead of through the group’s block. If their name was included on the group’s rooming list, the hotel will give the group credit for their stay, oftentimes helping to offset attrition.
  • Indemnification. A legal agreement between two parties that requires one party to compensate the other for any losses or damages that occur. Most hotel contracts state mutual indemnification.
  • Occupancy. The percentage of sleeping rooms that are being utilized.
  • Option. A “first option” is when hotels give a client the first opportunity to book a hotel until a specified date. “Second option” indicates there is another group holding first option, so you are second in line for the dates/rooms/space.
  • Option Date. The deadline given to sign the contract before your first option moves to second option.
  • Pick-Up. How many rooms have been booked for a specific time period. This number is often compared to the contracted room block to determine if the group is in attrition.
  • Property Tier Level. Hotels are classified by several metrics: size, star rating, service levels, hotel types, etc. Tier levels indicate the level of experience a hotel offers. The lower the number, the fewer amenities offered. (“Cold A/C” and “Free HBO” don’t count 😉)
  • Rack Rates. Rack rates are published rates for one night’s stay in a particular hotel without any discounts or premiums included.
  • Rebook Clause. A rebook clause allows a client to apply some or all of their cancellation fees and/or deposit toward a future program at the same hotel.
  • Resale Clause. A resale clause protects the group from being charged for rooms that the hotel is able to resell if fewer sleeping rooms are utilized than expected/contracted. Attrition penalties incurred may only be applied if the hotel is not sold out.
  • RevPAR. Revenue-Per-Available hotel sleeping room. RevPAR formula = Room Revenue/Total Rooms Available.
  • Run of House. A ROH room is a standard hotel room type with basic amenities. The hotel will determine the actual room based on availability at check-in. These ROH rooms are usually a mix of single and double-bedded rooms.

 

2. Understanding Nuance to Achieve Clarity

It’s important to understand that the Experience Economy is massive in size and as numerous in the experiences available as the people searching for them. This leaves a lot of room for confusion and ambiguity to flourish. Breakdowns in communication due to nuances in vague terminology, services, contract terms and conditions, and lack of transparency happen all the time. Particularly, when it comes to Hotel Sourcing. When contracting a hotel or searching for a third-party agency to handle your Hotel Sourcing needs, it is important to understand and be able pick up on the nuances, and to be crystal clear in what you are looking for. Here are a couple of the common nuances to look out for:

One thing is not like the other. For example, “Hotel Sourcing” is not necessarily the same thing as “Venue Sourcing.” While the terms sound similar and are often used interchangeably, venues such as athletic stadiums, convention centers, outdoor spaces, and restaurants are examples of “Venue Sourcing” that may or may not have a hotel booking need. Agencies that specialize in “Venue Sourcing & Contracting” with venues of this type, often can help with Hotel Sourcing needs, but it may not be their specialty. Room booking adds quite a bit of complexity. Distinguishing whether you are Venue Searching, Hotel Searching, or a mix of both, can help you zero in on your exact needs and ask more poignant questions when choosing an incentive travel company partner.

A generalist is not a specialist. Another nuance to be aware of is the difference between Hotel Sourcing for specialized “incentive trips or travel,” or for a general “business travel program.” National Sales Meetings, President’s Club programs, and incentive trips are unique, one-of-a-kind experiences and events. There is a booming trend for creating those money-can’t-buy experiences. Companies that serve this niche typically market themselves as an “incentive travel company” or “travel incentive company.” 

In contrast, managing year-round corporate travel falls under the category of a general business travel program. One of the largest business travel management companies in the world, BCD Travel, has an excellent article on developing a strong “hotel sourcing strategy” for your year-round business travel program. However, what is important for measuring and managing travel for thousands of general hotel bookings throughout the year, is not necessarily what’s best when it comes to Hotel Sourcing for an event in which the aim is to create a lifelong unforgettable experience. Just like we don’t use a tailor for an everyday t-shirt, but for that once-in-a-lifetime wedding dress, keep in mind that Hotel Sourcing for creative incentive travel programs is not the same thing as Hotel Sourcing for general business travel. 

Bigger does not mean better. When it comes to sourcing hotels for these unique, tailored, one-of-a-kind corporate programs, things like creativity, attention to detail, unique touches, deep relationships, service flexibility, agency experience, and several other factors that go beyond the traditional goal of “transactional efficiency” for general business travel management, take importance. One-of-a-kind events call for craftsmanship. Special experiences require special expertise. A type of specialized expertise and customized craftsmanship that the biggest travel incentive companies are not designed for or built to accommodate. When it comes to finding and selecting a travel incentive company to work with on your Hotel Sourcing needs, bigger does not usually equal better. 

In fact, many of the biggest incentive travel companies tout their “full-service management” platforms, but are often just general business travel companies that subcontract specialized services like Hotel Sourcing for incentive trips to bespoke agencies like Dunaj Agency and others. A behemoth offering general services like UberEats, is perfect to deliver on that weekly late-night craving, but not built or designed to meet the unique needs as a specialized vendor to cater a wedding. For many of these behemoths in the travel incentive company space such as BCD Travel, TravelPerk, Direct Travel, and others, incentive travel is a subdivision of their core business — general business travel. By design, these global companies are often more transactional in nature. To these titans, sourcing a hotel for unique incentive travel programs becomes a small niche within a niche, and often an overlooked part of their broader, global, multi-billion-dollar business services. A $100,000 hotel sourcing contract isn’t big enough to incentivize them to pick up a phone. 

Bespoke agencies like Dunaj Agency have the deep expertise and team depth to serve as a full-service meetings and incentives agency, but are also of the size and flexibility to serve as a specialized resource to carve-out and take on the most important, most time-consuming, and most stressful part of the incentive trip planning process — Hotel Sourcing. They are known to take less of a transactional approach, building deeper relationships at multiple levels with their hotel partners, clients, and third-party service providers. This is an invaluable intangible when it comes to planning unforgettable experiences. 

By understanding these three key nuances: (1) Hotel Sourcing is not the same as Venue Sourcing, (2) Hotel sourcing for general business travel is not the same as Hotel Sourcing for creative, unique incentive trips, and (3) The bigger a company is does not equal better when it comes to relationships and service, you are more likely to achieve clarity and find the perfect team to work with for your next event.

 

3. Appropriate Use of Technology

Technology has revolutionized most industries. The Experience Economy is no different. Today, it is virtually impossible to run a data-driven and thorough Hotel Sourcing RFP process without some use of the technology platforms available. TravelPerk recommends three possible solutions to sourcing the perfect hotel and/or venue for your next corporate event, by using either: (1) travel management software programs, (2) travel incentive companies, or (3) consumer facing, self-booking software. While I agree that technology should be used, there are some challenges to travel management software. Primarily, the costs involved.  

The industry’s leading technology platform for Hotel Sourcing is Cvent. A few of the largest travel management companies also promote their own proprietary travel management software. We employ the use of Cvent at Dunaj Agency as it is top tier in its capabilities, efficient in streamlining processes, and broad in its reach. However, it is cost prohibitive for a company looking to utilize it for just one or even a handful of events per year. 

Today, most hotel contracting happens electronically with some exchange of emails with the hotel contact. The typical process involves using software to solicit RFP’s, gather and compare the data, and recommend the best option. This is effective when putting together a general business travel plan, but completely misses the mark when it comes to sourcing hotels for incentive travel. 

When sourcing and contracting hotels for special corporate events like annual sales meetings or incentive trips, I’ve found that a total reliance or over-reliance on technology is just as ineffective and harmful as not using technology at all. Striking a balance is important. This is why I advocate for the appropriate use of technology. 

A platform like Cvent is helpful in supporting your sourcing strategy for things like: streamlining the RFP process, narrowing down choices, virtual site visits, tracking events, looking at overall trends, and as a place to store records and data. But it falls short of everything you need to create that unforgettable experience and maximize cost savings. Technology alone will not get you the best available rate. An over-reliance on it also ignores one of the biggest areas of negotiation — concessions. There is still power in persuasion. 

Employing the appropriate use of technology is an area where working with an agency like Dunaj Agency, that has access to the necessary technology platforms, is more beneficial than the do-it-yourself model. Not only does it save on the costs to purchase/use the technology, but best-in-class agencies know how to go beyond the computer to leverage relationships at every level of the hotel. Now more than ever, there’s real power in authentic relationships. The appropriate use of technology in leveraging data for the purpose of picking up the phone and making a professional call to negotiate costs and concessions with the entire hotel team is the only way to achieve superior results in Hotel Contracting. 

Which leads me to my next point…

 

4. Building a Large & Flavorful Network of Authentic Professional Relationships

Let’s be honest, in today’s marketplace, everyone says they have the “best relationships.” Literally, everyone. Yet, I stand by what I just said — relationships matter more than ever before. Critical to Hotel Sourcing is having a large and flavorful network of authentic professional relationships. And it’s not as abstract as it seems. There are ways to develop, evaluate, and measure relationships. 

First, it involves taking a multi-layered approach to relationship building. Most travel management companies today maintain a relationship with only the hotel’s Sales Director. The best hotel sourcing experts build strong relationships with hotel partners that go beyond just the Sales Director, starting at the top with the General Manager, who has responsibility for all aspects of the hotel. Additionally, they go deeper in the organization to include the Banquet Director, Food and Beverage Director, Spa Director, A/V Manager, and others. Sometimes the need also calls for negotiating with key positions higher up in the organizational chart of the hotel operator, and not with the destination hotel directly. It is part of Dunaj Agency’s “DNA” to establish and develop relationships with the General Manager of each hotel.  Think about it, if something goes wrong at any point in the process from Sourcing, negotiating the contract, or even onsite during your event, , or you just need a little extra favor, the General Manager is the one that can make it happen.  It’s good to be friends with the General Manager! Friends want to do things for friends beyond the business transaction.  

While most hotel sourcing agencies only communicate with the Sales Director to request and negotiate a contract, world-class agencies like Dunaj Agency, build deep relationships and engage with all levels of the hotel partner during the contracting process. Taking a multi-level approach opens up conversations with the hotel partner all the way up to the General Manager level, and results in better contract terms, not only in cost savings, but in additional concessions or amenities as well. 

For example, conversations around Food and Beverage aren’t just about whether F&B is available, but involves detailed conversations around the types of food service styles, culinary experiences, onsite and offsite options, dealing with the growing trend of specialized dietary needs, banquet set up, and much more. 

These deeper conversations driven by deeper relationships result in additional savings and concessions that go beyond what you would normally receive by taking the typical technology-only approach to Hotel Contracting. The challenge for most meeting and event planners looking to do it all themselves, is doing this at more than one hotel. Developing authentic multi-layered relationships at multiple hotels is just too time consuming and not practical. Instead of building just a handful of hotel partner relationships through a couple events per year, clients today can leverage relationships at hundreds of hotel partners across the world by working with a reputable and experienced agency that specializes in Hotel Sourcing to get the best results. By utilizing a hotel sourcing specialist that hotel partners trust, a client can maximize relationship leverage. 

Another often overlooked area of relationship building is with third-party vendors. The best practice is to include the hotel partner, third-party vendors, and the main client, in conversations during the contracting phase to ensure all needs are met and there are no surprises. It is here the Sales Director can act as your greatest ally in connecting all key partners. For decisions that require senior leadership support or approval, that’s where strong relationships with the General Manager comes into play. A great hotel sourcing agency is also skilled at getting the entire team at the hotel to WANT to do business with you. Transparency is key and can be achieved upfront in the contracting phase. 

Which leads me to my next point…

 

5. Contract Negotiation & Cost Transparency 

Another area to seek clarity when choosing a travel incentive company to work with for your Hotel Sourcing needs, is clarity around the terms and services offered. For example, a common service offered by all incentive travel companies and special event planning agencies is “Contract Negotiation.” Yet, no two agency offerings are the same. As mentioned, most agencies, including almost all the generalists, completely rely on technology for most of the process and then negotiate the hotel contract with just the Sales Director. There’s no real personal touch or customized approach.

Best-in-class agencies are able to capture real savings throughout the sourcing process and directly share them with clients to understand the value. Once again, transparency is key. If an agency can’t show step-by-step cost savings and negotiations from beginning to end, then what level of “contract negotiation” are you really getting? 

Contract Negotiation should involve real and tangible measurables, not just emailing over the standard contract. It should include a robust Contract Addendum that minimizes risk and ensures the best possible protections for your event through a strong Rebook Clause, Resale Clause, Force Majeure language, and other key provisions. Maximum discounts on hotel room rates should be the bare minimum expectation, to be supported by waivers of other common hotel fees such as: meeting room space, internet fees, resort fees, banquet set up fees, discounted food and beverage, and others. 

For example: if a client plans on using in-house audio/visual, a discount should be written into the contract. If a client is using a third-party AV provider, the contract should be scrubbed to make sure the hotel isn’t sticking them with additional fees. Certain concessions and waivers can be negotiated simply based on the size and scope of the event. A deep understanding of the market is key to negotiating as all these little details add up to significant costs. It’s also important to strike the right balance between negotiating best rates and designing the overall traveler experience, especially when planning one-of-a-kind events and trips. 

If your Hotel Sourcing agency is not asking to walk through the agenda and itinerary of your event to gain understanding around what questions and concessions they need to be asking from hotel partners and vendors, then you can bet you’re not getting the white glove service you need.

 

6. Keeping Up with the Trends

Certain things in this industry, like relationships, remain timeless. Others are always changing. Staying up to date on the current trends is important for successful Hotel Sourcing negotiation. In a seller’s market, where the hotels have the upper hand of power at the negotiating table, it becomes more crucial than ever to leverage relationships, track cost savings, appropriately employ technology to manage projects efficiently, and work quickly, as hotels have limited availability. 

According to Meetings & Incentives Worldwide, Inc., 6 Ways Hotel Sourcing Has Changed Since the Pandemic, the industry is seeing a much bigger emphasis on deadlines as it experiences high compression across the board, higher prices (particularly in Food & Beverage), and tougher contracting terms. This business compression combined with rebooking of backlogged past canceled programs creates a market within Hotel Sourcing I refer to as: “Race for the Space.” Where spaces and dates become scarce to come by and rates are rising. In 5 Things To Know About Venue Sourcing Today, BCD Meetings & Events highlights how this backlog of events that need Hotel Sourcing is creating nightmares for planners. 

The ever-evolving global dynamics are also creating added friction and importance around negotiating strong Rebook and Resale Clauses. As previously explained, the Resale Clause ensures that if room pick-ups are lower than anticipated, you should not be charged for the nights the hotel is able to resell some of the unoccupied guest rooms, saving you those costs. One thing to be aware of is many Resale Clauses only kick in and apply on nights the hotel reaches 95%-100% occupancy. In a situation where the meeting may not move forward at all, the Rebook Clause provides an opportunity for you to recoup a percentage of the cancellation fees as credits toward a future program. As with everything, the devil is in the details. Rebook Clauses can be limited in time, usually within twelve months or the same calendar year as the cancellation date, and limited in percentage of credit, anywhere between 30%-100%. 

In a “Race for the Space” market, time is of the essence. Clients need to create as much efficiency and leverage as possible around relationships, technology, and spend. Time is our most precious resource. When things are moving quickly, and time is of the essence, redeeming the time becomes one of the most essential considerations of Hotel Sourcing.

 

7. Redeeming the Time

Perhaps the biggest challenge in Hotel Sourcing for those tapped with the responsibility today is just how much time it eats up. A lack of resources, technology, knowledge of locations/hotels, lack of network, the hours it takes to scrub a contract (let alone multiple contracts), the time it takes to connect with the right contacts at a hotel, plus all the back-and-forth emails and communication that go into sourcing and negotiation makes Hotel Sourcing the most time-consuming task in the entire incentive trip/event planning process. This doesn’t even include the endless hours spent on searching for sites, comparing locations, or site visits. Sometimes, contracting with the hotel directly does not provide the best pricing or comparison of destinations. Knowing who to call at each hotel is different for every hotel partner and can feel like a blindfolded voyage at finding “Where’s Waldo.” 

My recommendation? Transform how you go about Hotel Sourcing by making the most of every opportunity. Forget trying to “save time” or “manage time,” and instead focus on redeeming your time. The concept of redemption is regaining possession of something — in this case TIME — in exchange for something else. Pay attention to what I say next: The #1 secret in the Hotel Sourcing industry is leveraging your most scarce and constrained resource into your greatest advantage by hiring a world-class agency exclusively for your Hotel Sourcing needs. Why am I so bullish on this? Because of the exchange rate: IT’S ABSOLUTELY FREE TO YOU!

Carving-out and offloading the most difficult, expensive, and time-consuming task in planning an incentive trip, National Sales Meeting, or other unique corporate event to a Hotel Sourcing specialist is becoming the fastest growing trend in the Experience Economy today. It’s no charge to you as the client, and it allows you to keep all other aspects of the event planning in-house or work with a preferred vendor. A Hotel Sourcing specialist can take control of the steering wheel to help a client navigate through all of these time-consuming challenges, and bundle them up into a nice, safe and easy process. 

 

Two Common Questions

 

Is it more expensive to work with a hotel sourcing agency rather than doing it myself?

The most common question we get is: “Won’t I get a cheaper rate if I do it all myself instead of using a sourcing agency, so the hotel doesn’t have to pay a commission?” This is a myth for several reasons. Partnering with agencies who have hotel sourcing specialists is actually the preferred way of doing business for hotel operators. As a result, agencies like Dunaj Agency get the lowest group rates. Stronger relationships between hotel operators and hotel sourcing specialists, and exclusive marketing incentives, result in additional discounts that are greater than the “published rates.” These aren’t abstract but are clearly identifiable savings that can be tracked and shared throughout the process. 

Because the largest expense for incentive travel is hotel spend, making up 25% of the allocated budget according to Incentive Research Foundation, and working with a Hotel Sourcing specialist like Dunaj Agency comes at no cost to you as a client, but results in increased savings, it is a NO-BRAINER! 

THE BEST DECISION you can make in addressing your hotel sourcing needs is working with a hotel sourcing specialist or travel incentive company.

 

What do the Destinations/Hotels Prefer? 

According to Hotel News Now, hotel operators are responding to the surge in demand for incentive travel programs by partnering directly with incentive travel agencies and travel management companies. Sage Hospitality Group, a management company specializing in lifestyle hotels, works primarily with hotel sourcing specialists with a stated goal of making “it easy for them to do business with us.” 

They are not alone. Hilton is driving incentive travel business “by partnering closely with agencies dedicated to procuring and creating memorable trips for their customers,” according to Gerilyn Horan, Vice President of Group Sales and Strategic Accounts for the brand. Working with agencies that have a specialization in incentive travel hotel sourcing is also the preferred method of contracting for other large brands, such as Four Seasons Hotels and Resorts and Wellbeing Collective at Hyatt Hotels, who are looking to maximize their share of the market as curators of meaningful, money-can’t-buy, extraordinary experiences.

What does this practically look like in real-life? As an example, the Four Seasons Resorts Punta Mita, Four Seasons Resorts Lanai, Hawaii, and Four Seasons Resorts Bora Bora, have all recently approached us with exclusive deals for clients of Dunaj Agency looking to book their next incentive trip at their resorts. One offering as much as 50% discounts off Rack Rates. These are what I call off-book deals that our clients wouldn’t receive on their own. 

In a “Race for the Space” market, the best way to leverage time, technology, spend, and relationships, is to swim with current, not against it. Instead of fighting the preferences of your hotel partners, leverage their preferred contracting channels by working with a hotel sourcing specialist to increase your cost savings and open the door to exclusive deals by taking advantage of their superior relationships.

 

Why Hotel Sourcing the D-I-Y Way is Outdated & Overrated

Personally, I’ve always loved the concept of a D-I-Y project and its charming rewards of accomplishment. As one who likes putting my own stamp on things, and who prefers to be in control of the driver’s seat of most tasks, there are many times in life when the maxim proves true: “If you want something done well, do it yourself.” What I’ve learned, through much failure and lost hours, is I usually don’t engage in a D-I-Y project enough to become an expert at it. It’s quite evident that most of my D-I-Y projects are novice jobs. The worst part is, they always go over budget too.

Hotel Sourcing has become too big of a job, too stressful, too time-consuming, and as the largest line item in the allocated budget, is too important and impactful of a project to do-it-all-yourself. You need a team of experts that can come alongside you and drive this process for you by taking it off your plate. Simply put when it comes to Hotel Sourcing, the D-I-Y model is outdated and overrated (pun intended). You actually end up paying higher rates and can miss out on preferred dates.

To sum it all up, here are the five reasons working with a Hotel Sourcing specialist for your travel incentive trip is a no-brainer:

• Leverage Expertise, Technology & Relationships — Maximizing leverage in today’s market is everything. Hotel Sourcing specialists have the technology, network of relationships, and expertise you can piggy-back on to increase your leverage.
• Contract Negotiation — As experts in contract negotiation, hotel sourcing specialists can scrub your contracts, bring added transparency to the process, and construct strong addendums that maximize cost savings, mitigate risks, and negotiate added concessions. 
• Redeems the Time — Partnering with a hotel sourcing specialist allows you to offload the most time-consuming task of the incentive trip planning process, to focus your scarcest resource on areas that most need your attention. It’s the most efficient and streamlined solution.
• Preferred Method of Hotel Partners — Hotel operators prefer you work with a hotel sourcing specialist and incentivize this channel by offering exclusive deals, added concessions, and access to multiple levels of hotel management staff. 
• It’s FREE to You & Maximizes Cost Savings — All of these benefits plus it’s absolutely free to you as a client. That means you don’t have to pay anything for the world-class services you are getting in return. Not only do you get it all for free, including hundreds of hours of your time back in opportunity costs, but you maximize your cost savings by taking advantage of better booking rates, greater concessions, more exclusive extraordinary experiences, and deeper relationships.

 

The Next Part is Up to You.

I hope this guide has helped you and you feel empowered and equipped with the industry secrets and knowledge you need on how to source the perfect hotel for your next National Sales Meeting, Corporate Event, or Travel Incentive Program. 

If you’re still committed to doing it on your own, here a few additional resources that may be helpful to you as you think through the D-I-Y process:

• The Ultimate Guide to Event Venue Sourcing for Event Planners
• The Ultimate Guide to Venue Sourcing and Selection
• Mastering Hotel Sourcing
• The Event Planner’s Guide to Venue Sourcing and The RFP Process

But, if I may be so bold, I’d like to recommend a better solution than to D-I-Y it. Sit back, relax, and let us serve you. As I mentioned at the beginning, when it comes to Hotel Sourcing with Dunaj Agency, everything is c’est la maison qui offre!  Compliments of the house!

Whether you’re in the beginning or middle of your planning process, connect with us for a free complimentary audit of your last hotel contract, and let’s begin a conversation.

Cheers!

Rick Dunaj

**Since 2014, Dunaj Agency has sourced and contracted with 777 unique hotels, 38 different hotel chains, in 232 different U.S. cities, 43 U.S. states and D.C., and in 28 different countries.