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The View from Across the Negotiating Table

Why do luxury and upper-upscale hotels cost so much for business groups? It helps to understand what hoteliers are facing from a cost perspective right now.

We all know that the negotiating climate for meeting planners is pretty brutal these days, especially when planning an event at a higher-end property in a bustling destination. But it's not all sunshine and lollipops on the supplier side; hotel managers aren't simply sitting back and counting their money, given the cost per square foot to build and maintain meeting space as well as a labor market that is as tight as anyone can remember.
Check out the difficult issues that hotel owners and managers are facing right now, even with record high occupancy rates. It just might give you a better understanding of what you're dealing with the next time you sit down to negotiate the terms of an executive retreat, a customer summit, or a sales-incentive program.

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