by Brad Weaber

How to Present Your Seminar Business in the Best Possible Light

Seminars don't get no respect. And it's not hard to understand why. Most seminar programs require a disproportionate amount of meeting space to the number of guest rooms used. The revenue they generate, largely from food and beverage, is minimal. And an even bigger knock on seminar business is the high cancellation rate and when it occurs: 30 days out is not atypical. That doesn't leave a hotel a lot of time to resell the space.

As the pendulum shifts from a buyers' market to a sellers' market, hotels are digging in their heels, making contracts for seminars and other small meetings more difficult than ever to negotiate. Oddly, this comes at a time when demand for seminars is becoming more popular than ever.

Competition for attendees' time and resources has never been greater. "Continuing education" is not merely a service but also a very important benefit for people and companies to justify their membership in an organization. As a result, there has been a proliferation of offerings – educational seminars, regional conferences and advisory meetings – to fill the need.

But these meetings put a hotel at risk. A number of hotels I recently spoke with were quite frank in saying that they attempt NOT to book seminars, especially if a lot of meeting space is required. The reason, they reported, is that seminars cancel at a much higher rate than any other type of meeting.

Without additional leverage (see accompanying points), it's hard to find a good reason for hotels to actively solicit seminar business. Hotel meeting space is built for the explicit purpose of selling guest rooms; many seminars don't pick up any. Food and beverage revenue? A coffee break or lunch &340;if it's included) doesn't offset the risk. In fact, some contracts now require a food and beverage minimum to secure the space. And looming over the entire negotiation is the specter of cancellation.

Sound pretty hopeless? Don't give up yet. Below are 10 points to help you present your seminar business in the best possible light. Remember that the hotel is in business to make a profit; demonstrate how your piece of business can help them do that.

1. Draw Attendance. This may seem obvious, but make sure your topic is hot. Poll your membership about current issues and what they want to learn. Promote it heavily. If it involves a controversial piece of legislation, tie in a lobbying trip to Washington, your state capital and/or city hall.

2. Present Group History. If your seminars have a solid history, make certain the hotel knows it. In the current economy, past information is your most important negotiating tool. If you have never canceled a seminar, make this fact known.

3. Make the Business Desirable. Find out from the hotel when they have a "need" date. Perhaps they have a hole or an odd pattern that won't fill with bigger business. Perhaps you can tie in a committee meeting that will generate some additional room nights.

4. Book on Short Lead Time. Try not to book more than six months from the date of the seminar. While this could create difficulty in finding availability, it will mean your business has more value for those properties that do have space. Try to avoid peak season.

5. When You Need a Long Lead Time. If you must book 12 months out, try to find a hotel that is part of the "overflow" for a city-wide convention. This can create a win/win: Meeting space is available, and the hotel is happy to collect the additional f&b revenue.

6. Leverage Other Meetings. If you plan a convention or other large meeting, use a seminar or some other small meeting to evaluate the hotel as a potential site for the main event. Hotels will generally be more willing to accommodate a small meeting if there's a chance at subsequently booking a "big" one.

7. Make Your 'Small' Meeting a 'Big' Meeting. In some cases, what might seem "small" to a mega-hotel is just the right size for an airport or suburban property. If your seminar is expected to draw 50 rooms on peak night, you will have much better luck negotiating with a facility that has 100 rooms committable to groups than one that has 500. Better yet, if a hotel has a very high transient base, it will be much more flexible in negotiating meeting space.

8. Be Flexible With Meeting Space. Depending on the time of year, hotels will be reluctant to give up prime space for seminars. Try to be creative in the use of space. Perhaps you can utilize a terrace or trendy "Eurocafe", a hotel restaurant that is not open during the day. (This may not work if A-V requirements are complex.) Attempt to use space for multiple uses; for example, a roll-in buffet in your general session room.

9. Be Realistic About Concessions. Generally, seminars don't command a lot of "freebies" and amenities. If you feel compelled to ask for comp suites and staff rates, be prepared to place a sliding scale on the value of these concessions. For example: "Hotel will agree to provide one complimentary one-bedroom suite and three upgrades... if group actualizes at least 80 percent of its total contracted room block." In addition, expect to have meeting room rental tied to a sliding scale of guest room pickup.

10. Plan the Seminar as if It Were Your Annual Convention. One of the dilemmas that hotels face with small meetings is that often, due to late registrations, sponsors wait until the last minute to plan the event. This creates problems for hotels, which need to have a firm idea of what is going to take place in order to staff properly.

Embrace the small meeting with the same passion you would an annual meeting. Send requirements early; review banquet orders and function sheets on a timely basis. And, if you're not going to be on-site yourself, make certain that on-site coordinator (often a volunteer) is in the loop from the outset. Not all hotels view seminar business the same way. Depending on what's on the books, you may find a property very receptive to your inquiry. Be aware of the value you are bringing to the table. And do everything you can to make your business "good business."

First published in: Convene Magazine, November 1995