Did I mention that I hate cold …?

As a card-carrying member of GRITS [Girls Raised in the South], that’s far more than an understatement. It’s the cold, hard truth. And now here I am just south of Santa’s Workshop and it’s time to buck up and make sure this program runs as smoothly as a glacier’s surface.

Due to a previous work commitment, I hadn’t been the one to do the site visit, so this was my first time in the Land of the Midnight Sun, but I’d prepared. Oh yeah, I had certainly prepared. I spent half the cost of a gilded ballroom overlooking the South Lawn on cold weather outerwear, including pieces with built-in heating elements, so I was ready for Mother Nature to give me her best shot.

Turns out I was overprepared. Yes, you read that right, overprepared. The weather was actually quite comfortable and one day it reached 45 degrees. And did I also mention I was so pleasantly surprised with the whole Icelandic experience that I’d go back in a heartbeat? This time a bit wiser, more open-minded, and traveling lighter [maybe].

Ideal Size for an Incentive

The five-day, four-night incentive program included a grueling inbound flight, a red-eye with one stop and a mid-morning arrival in Keflavik. Fortunately, 90% of our travelers were aboard the same flight, so coordinating ground transportation at the airport went smoothly.

We had 50 incentive winners and their guests for a total of 100 people; in my mind, the ideal size for an incentive there. Not too big, not too small. I would estimate each person had an average of three bags, counting checked and carry-ons. Since one full program day would be lost to travel, we were not going to waste time getting activities started.

While our guests were off to their first excursion directly from the airport, checked luggage was being delivered to the Hilton Parliament in downtown Reykjavík. There, it would be off-loaded and room-dropped which, of course, is a really nice, personal touch but one that comes with plenty of chaos and confusion if not managed correctly. Spoiler alert…We nailed it!

One hundred guests x two checked bags each = 200 opportunities to mess up. Because we had done extensive pre-planning with the hotel and mailed out luggage tags in advance, every piece of luggage was clearly identified. Not one item slept at the airport and not one item missed its room target. In my book, that’s a small miracle.

Back to our activities …

In our Know Before You Go packet that was mailed out weeks in advance, we clearly communicated all the super-important “stuff” you needed to be aware of to head off any issues or misunderstandings. One item was right there, front and center, in large bold red type:

PACK YOUR SWIMSUIT IN YOUR CARRY-ON BECAUSE WE ARE

GOING DIRECTLY TO SKY LAGOON FROM THE AIRPORT.

Much as I like to pull rabbits outta hats, I have not discovered a way to manifest a bunny with the cutest swimsuit in just your size if the one you brought is inside a room-dropped bag back at the hotel. We had a few of those, unfortunately. If your eyes don’t hit that page of the pre-mailer, well …

Sky vs. Blue

Blue Lagoon, with its milky-blue geothermal seawater in the middle of a lava field, is often called one of the “wonders of the world” and is the iconic lagoon most international travelers know. What they may not know is there are no private changing areas so it’s a bona fide “gang’s all here”, awkward ceremony before entering the waters. No, thank you.

Thus, we shuttled 45 minutes to Sky Lagoon where we’d reserved private changing rooms. On the edge of Reykjavík, Sky is a newer, oceanfront lagoon known for its dramatic infinity-edge pool over the North Atlantic and seven-step sauna/steam experience called The Skjol Ritual: lagoon, cold plunge, sauna, cold mist, body scrub, steam room, and a finishing drink made from local crowberries, a mild, slightly tart beverage apparently all the rage with crows everywhere. [A splash of Prosecco would’ve been interesting.]

We’d arrived at Sky Lagoon a band of completely drained travelers after the overnight, inbound flight but, truly, once you immerse yourself in the full experience of the lagoon, you are magically refreshed. The feeling of rejuvenation is extraordinary and suddenly our weary bunch was ready to take on Reykjavík.

As a side note, I was able to sample Sky Lagoon to indulge myself in five of the seven steps of the steam-sauna experience. [No surprise, I passed on the cold plunge and cold mister.] It was wonderful. I was also able to test the Blue Lagoon to do a good comparison and, honestly, I wouldn’t do Blue Lagoon again. It felt like a big, cloudy swimming pool. The only thing special was the Mask Bar, which offered multi-level, pricey mask treatments including silica mud, algae, lava scrub, and mineral masks. I was glad I’d experienced it, but I wouldn’t do it again. Is the water blue? Yes, it is. My vote goes to Sky Lagoon.

Parliament vs. Geysir

If I were to do another program in Reykjavík, I would absolutely return to the Hilton Parliament. The location simply can’t be beaten. It’s walkable to restaurants and shops along the waterfront, whale watching, and a large, inviting public park; the kind of city experience where you can browse a bookstore by day and enjoy a bar [or two] by night. [Pro tip: Find the bookstore that turns into a bar at night.] Downtown has a lot of nightlife and well-lit city streets, so it’s a safe location.

The hotel’s décor is classically Scandinavian — minimalist, neat, and clean but definitely elevated. Bathrooms are quite large and modern. Many of our guests said they slept with windows open at night to take in the refreshing air.

As a contrast, Hotel Geysir is out in the countryside where there’s virtually no light pollution. At the right time of year, this optimizes the viewing experience if you’re fortunate to catch the Aurora Borealis. April is typically not Northern Lights season, but I did see them on the two nights I cast eyes to the sky, once in each city. Hotel Geysir, too, is a genuinely nice, new property that broadens the incentive experience by offering a non-urban perspective on Iceland.

“Hot Dog!”

Along the way, our group experienced puffins, several whale species, a tasty dine-around, a popular glacier, and Icelandic hot dogs. Apparently, after traveling to the base of a glacier in a very cool vehicle with monster tires then snowmobiling to the top and back down again, it’s tradition to enjoy hot dogs. Now, my idea of F&B planning for a corporate group does not typically include this children’s menu item, vegetable soup, and meat soup, but our group absolutely loved it. And I must say the hot dogs were quite good.

The people of Iceland were very genuine and kind wherever we went, but when traveling be aware this is a non-tipping culture. Iceland is, for all practical purposes, a cashless society, and even the guys manning the hot dog stands along the street expect you to use a credit card or tap-to-pay. In a restaurant, your server may appreciate the extra cash, but tipping at the levels we do here in the States is frowned upon by locals who really don’t want to have to do the same. Tipping can be seen as a forced culture shift, an attempt to Americanize their European ways.

Don’t feel bad, you’ve already paid a handsome fee for your meal. Iceland is whatever the opposite of comfortably affordable is. It is incredibly expensive. One day, my lead meeting planner and I went out for a burger and a beer. Two burgers, two beers, $72. [See, you really don’t have to feel guilty about not tipping!] On another day, I ordered a burrito bowl, something that would’ve run about $8 back home. When I looked at my credit card statement, it was the equivalent of $46. Ouch!

After the program concluded, I had one big takeaway. There must be stars within the Northern Lights because they certainly aligned for us. Occasionally, I have days in this madness we call meeting and event planning when I think, “I don’t get paid enough to put up with this.” The glorious week I spent in Iceland was a week when I thought, “I can’t believe I get paid to do this!”

Everything ran as smoothly as a glacier’s surface, especially with the “snow boots on the ground” local knowledge and guidance shared by the amazing Sandra and Karolina of Iceland Travel … and this warm-weather girl had zero problems with the elements! Bottom line, my closet is fully stocked with cold-weather attire, and I’m ready to use it again!

Skal!  [Cheers! in Icelandic.]

Julie Thompson-Whelan

The post I Learned Not to Turn a Cold Shoulder Toward Iceland … appeared first on dynami.

Just when you thought the coast was clear after a tumultuous several years driven by a pandemic and its fallout, there’s still no rest for the weary — those weary ones being meetings and events professionals and the clients they serve.

Securing preferred dates and ideal destinations, along with a fair room rate, value-added concessions, and minimal attrition penalties, have long been the bane of a planner’s [and ultimately their client’s] existence. And now in 2024, those potential landmines are more acute and challenging than ever with all indications the tougher trends are here to stay.

Specifically, the “gotchas” in contracts, soaring meeting & event costs, and personal safety concerns are more prevalent than ever along with the added encroachment of hot-button social issues that were seldom a thing in the past. The challenges [budget especially] can be monumental. Let’s take a closer look at some of these concerns …

WELCOME TO THE BRAVE NEW WORLD OF CONTRACTS

If you’ve long prided yourself on being a skilled contract negotiator, do not rest on your laurels because the current state of affairs is significantly different than it was just 2-3 years ago. Fees in particular have become more problematic than ever, especially resort fees, and “hidden” or “junk” fees that aren’t always disclosed unless you’re on your game and ask about them prior to ink hitting paper. The problem is magnified in the current seller’s market in which “wiggle room” in negotiation is tighter than ever.

Fees, fees and more fees

Resort fees have long been a hot-button with reports of some properties charging individual guests as much as $65-$90 per day. For a 4-day, 3-night program with 150 attendees, that’s a financial hit of $29,000-$40,500 to your budget. There are numerous legal cases challenging disclosure [or rather, non-disclosure] tactics currently being litigated. In California, Senate Bill 478, called the “Junk Fee Law”, went into effect July 1, stating that all pricing must be advertised.

To justify the high daily cost, resort fees now include line items that weren’t included previously, including daily housekeeping, internet access, porterage, “Employee Wellbeing Fees” [I don’t know either], use of gym and/or pool facilities, and mandatory gratuities.

Attrition just grew a second set of teeth!

In another instance, attrition fees which can already be hefty if not skillfully negotiated, are suddenly having service charges tacked onto the penalty itself. Same is true when paying program cancellation fees. You’re being penalized not once but twice.

To make matters worse, some properties are charging daily attrition fees, even food and beverage attrition, per day versus calculating cumulatively over the course of your program room block and F&B guarantees.

Conceding concessions …?

Properties have long been pulling back agreed-upon concessions if you fall short of your room block total. Again, you’re penalized twice. Given the number of more recent hidden fees or junk fees, this move stings more now than ever before.

The only way to avoid falling victim is to be doubly [if not triply] diligent and fully informed throughout the negotiation process. Ask questions. Request all promises and commitments be put in writing. Make sure anything numerical is clearly spelled out and that specific key dates are noted. Invite other sets of trained eyes to review your contract before signing anything.

Lock in service charges!

Make sure all conditions and clauses are clearly delineated in the contract language. For instance, if a hotel’s service charge is a flat 25%, do what you can to ensure the contract reads precisely that way. If you see “service charge of 25% [subject to change]” in the language, wave your red flag until a firm commitment is either put in writing with your program dates assigned, or introduce a ceiling on how much that flat rate can rise between now and the onset of your program.

“Can I get a little help, please …?”

Another thing to keep in mind is a Service Guarantee Clause, whereby the hotel agrees to adequately staff for all program segments. Labor issues continue to be an industry problem but it shouldn’t be your problem. It belongs to the property. Ask that specific staffing totals be assigned and delineated for each program segment – business sessions, meal functions, activities, etc.

Fair is fair …

Finally, what’s good for the goose is good for the gander. Many industry professionals are calling for “Cancellation by Hotel” clauses to have an equal amount of “bite” as clauses assigned to “Cancellation by Client”. Hotels cancelling programs in favor of a bigger, more lucrative fish on the line was seldom a thing in the past. These days, it’s becoming more and more prevalent. If the proverbial rug is yanked out from under you, make sure you’re being adequately compensated for the loss of dates.

“Thou doth protest …”

Finally, in an emotionally charged world with politics and social issues swirling about, make sure your Client’s Right to Cancel language is written in such a way that if a particularly vocal, potentially offensive and/or disruptive group is booked at the property at the same time as your program, so you have an “out”.

Also, demand the property inform you if such a group is booked after you’ve gone to contract so you can make a decision: stick with the property or bail? Do you really want your guests walking through common areas jammed with placard-carrying throngs with bullhorns protesting this social injustice or that overseas war? Make sure this pertains to both indoor and outdoor portions of the property. One solution is to book all event space onsite though that’s a pricey proposition.

Remember: A contract is a contract … until it is not. Protect yourself and your investment!

DOLLARS & SENSE

If it seems everything costs more, that’s because it does. A lot more! A recent survey of industry professionals across North America revealed:

• 39% of respondents indicated costs had significantly increased while only 16% [the lucky ones] felt costs had softened a bit.
• The majority of respondents indicated meeting/event-related costs have increased 10-30% across-the-board … in just one year [2023 to 2024].
• Meanwhile meeting and event budgets have risen 10-20% which, on one hand, sounds promising but not when you compare it to the escalating cost of goods and services. Bottom-line: The increases in available budget only allow you to keep pace with soaring costs versus allowing you to enhance your program design or offerings. Inflation affects us all.

The solution is to seek ways to trim costs whether that means reducing the number of annual programs; reducing duration of individual programs thereby saving on rooms, A-V, F&B and labor; offering more unstructured free time; or booking years in advance to lock in favorable pricing.

WELL, THERE IS SOME GOOD NEWS …

Another recent survey indicated program lead times seem to be improving. Though lead times are still on the shorter side compared to historical patterns, 43% say they typically have 4-9 months to plan a program while only 9% have 90 days or less. Meanwhile, 26% of respondents typically enjoy a 10-12-month lead time, which is a 15% improvement from 2023.

Our world is changing and it’s incumbent upon you to stay on top of these changes to avoid unnecessary headaches, financial or otherwise.

Remember, Proceed with Caution.

Happy Negotiating!

Julie Thompson-Whelan

The post Planners’ Dilemma: Proceed with Caution … Now More Than Ever appeared first on dynami.

As I’m sure you already know, hotel concessions are a great way to add value to your event and help your bottom line. The trick is to know what discounts and special services to ask for. Which leads me to our topic, what everyone should know about hotel concessions.

For starters, I always like to share these five golden rules:

1. Everything is negotiable
2. Never answer the budget question
3. Sell your event by knowing your total spend (costs of event plus individual spending)
4. Distinguish between “must have” vs. “nice to have”
5. Be yourself and strive for a win-win outcome

Something to remember is negotiation is a skill you learn. The more you train and practice the better you get. And when it comes to hotels, a majority of the chains train their sales staff on a monthly basis.

WHAT CONCESSIONS TO ASK FOR
Here are the most common concession areas you will want to discuss with a hotel before signing a contract.

• Sleeping Room Rates
  • Complimentary room ratio: The average is one free room for every 50 rooms you book and occupy (1:50). However, it doesn’t hurt to ask for more. We’ve managed to negotiate this ratio down to 1:35 for some of our clients.
  • Room block terms: We recommend asking for a cutoff date of 10-15 days before your event’s booked rooms are released to the public.
  • Attrition rate: The average attrition rate is 15%. Meaning out of a 100 room block you are responsible for the cost of 85 rooms.
  • Extended rates: Ask how many days the guests can receive the group rate before and after the event.
• Food and Beverage (F&B)
  • Discount: Ask for a 10-20% discount for the total F&B cost.
  • Lock-in current year’s menu pricing: For example, let’s say you booked a meeting for 2017 in 2016. You will want to request 2016’s menu prices for the 2017 meeting and write this into the contract.
  • Complimentary bartender fees based on agreed consumption: For the right amount, most hotels will waive the bartender fees.
• Meeting Space
  • Waive rental fee: Most hotels will waive the rental fee for meeting spaces if you meet the F&B minimums.
  • Complimentary room flip: If you know you are going to need your meeting room rearranged during the event, go ahead and negotiate a complimentary room flip up front.
• Technology
  • Ask for free wifi: Some hotels still charge a guest for wifi in their sleeping rooms.  Some even charge per device. Starting with the initial RFP, request complimentary wifi for guest rooms and meeting space. Most will grant this in the guest rooms, but may not be as willing to provide free of charge in the meeting space.  It’s important to lock in what it will cost in the meeting space in the contract to ensure you stay within your budget.

HOW TO ASK
Before negotiating concessions you should have painted a clear picture of what all your event will entail. The more details, the better. The key here is to communicate the true spending value of your meeting.
Be transparent about the areas that are crucial to the success of your event.

Next, review each section of the RFP with the hotel’s representative. Do this by asking for more information about their policies for each section. In my experience, this process lets me see which areas are more negotiable than others.

In summary, always read a hotel’s contract carefully. Don’t be afraid to mark it up. Know your numbers, they will help you sell the value of your business. Ask for special deals. The worst that can happen is they say no. Lastly, remember golden rule number five, be yourself and strive for a win-win outcome, the rest will fall into place.

Related article: 2016 Meeting Game-Changers

Until next time!

The post What You Should Know About Hotel Concessions appeared first on dynami.