Some Wistful Memories
of the Way We Were

by Bruce Harris

Recently, a longtime association meeting manager was lamenting how ridiculous contracts and the whole negotiating "game" had become. "It was easier to make a deal 20 years ago," he said, "and fairer to both sides." We talked about "how it used to be" and, frankly, in some cases he was absolutely correct. But in other instances, what was great for the association was murder on hotels.

Times have changed dramatically. Today, we address many of the same issues from totally different perspectives. Pause for a moment and remember "The Way We Were."

Many associations went back to the same hotel every year (or, on a rotation basis). Association meetings were smaller. Hotel staffs were relatively constant, at least by today's standards. Handshake agreements were sufficient because both sides were dealing with people they'd come to trust.

Thus, a simple letter stating that dates were being held "definitely" was enough to confirm a meeting. But that changed in the next recession when cancellations became rampant and hotel owners screamed for a way to pass some of the risk along to the client. That was the beginning of contracts as we know them today. It seems hard to believe, but that was less than 20 years ago.

"Average occupancy percentage" was a measurement tool that led many hoteliers to the poor house. It's hard to imagine today, but hotels used to measure their success in average occupancy, irrespective of what the average rate was. That accounting sleight-of-hand allowed hotel salespeople to artificially deflate rates as long as a strong economy filled the rooms. (Hoteliers would brag about 85 percent occupancies... while failing to mention that the property was losing money.)

Favorable tax laws allowed companies to "shelter" profits made in other areas by applying hotel losses against them. (Talk about something that has changed?) The shelter provision led to a building boom that eventually created a massive oversupply of rooms. And it led hotel management to shift its focus from "average occupancy" to "average rate."

The great part of "the good old days" was that hotels hadn't discovered "yield management," a system where each rate quoted is based on up-to-the-minute availability and demand. It's not that I don't think hotels should maximize their profits; it's just that it's no exaggeration to say you can have 10 groups in a hotel at the same time at 10 different rates... not necessarily linked to the meetings' value. That's progress?

The hotelier was the meeting expert. Twenty years ago, the level of sophistication was so low among planners that hoteliers were deemed the last word on what constituted a good meeting environment. At the time, with the position of convention service manager still emerging, the hotel salesperson and the catering sales manager were the key contacts prior to arrival. The catering manager, who handled the details, typically turned the account over to a floor manager two weeks before the meeting.

In other words, a planner didn't talk to the actual person managing the hotel side of the meeting until 14 days prior to arrival$ Today's planners would scream bloody murder if that was still "The Way We Were." Meeting managers are light years ahead of where we were 20 years ago... and so are convention service managers. As a result, successful meetings have become a collaborative effort between planners and the entire staff of a host facility.

"Negotiations were easier 20 years ago." No truer statement was ever made. Inexperienced meeting managers perceived less flexibility because they didn't know how to negotiate. Most of us (and I include myself in this group) simply settled for less because we didn't know what to ask for. At the time, no one had ever heard of "cumulative comp credits," "no walk guarantees" and "staff rates."

Is the current system better for meeting managers? I honestly don't think so. Negotiations have become the "Red Badge of Courage"; it's the defining accomplishment that justifies continued employment. But with it comes a lot of pressure, and the sneaking suspicion that we book too many facilities on lowest price instead of best value or highest quality of service. That's a scary thought.

We no longer get a simple letter confirming a definite booking. While those letters were very non-threatening, they were a source of great dispute when a cancellation was necessary. "Planners were usually the beneficiaries because hotels "bit the bullet" and absorbed losses due to cancellation." Today we have lawyers who specialize in meeting contracts, crafting documents that are 10 pages long. Even longer are the contracts drawn up by some planners themselves. (Standard hotel contracts are not quite as long... yet.)

The handshake agreements have been replaced by bickering over attrition and cancellation. Does it sound like we're going backward? Not really. It's simply the result of having more choices and being able to more effectively control the meeting environment. That really is progress. But what has been lost are the long-term relationships, the "faith" that the hotel would make things turn out right. We can't go back 20 years but it would be nice, on occasion, to shake hands, look a friend in the eye and say: "We'll be back next year."

First published in: Convene Magazine, April 1994