Activity 2 Negotiations with a hotel

18. You are going to role-play the preliminary negotiations between a tour operator and the representative of a hotel chain. To prepare, divide into three groups: tour operators (Student A), hotel representatives (Student B), secretaries (Student C). Read the information below.

There will be three stages to the role-play:

Stage 1: arrange meeting

Stage 2: set agenda

Stage 3: the actual negotiations

Tour operators

You would prefer a meeting at the hotel next week in the early morning. Friday is best for you.

Your objectives are:

1. a larger allocation of rooms – 50 per night in high season;

2. a range of types of accommodation (e.g. self-catering, family rooms, half-board, etc.)

3. shorter release dates (so you have more chance of selling your allocation at the last minute);

4. a contribution to advertising costs;

5. hotel to provide some better photographs;

6. extras in the rooms (e.g. bottle of wine, basket of fruit);

7. clearer idea of the hotel’s recreational and leisure facilities (there was some confusion last year).

Hotel representatives

You would like a meeting at your hotel next week. Midweek and late morning is best for you (maybe over lunch).

Your objectives are:

1. set allocation – 60 rooms per night in high season;

2. promote new self-catering villa complex;

3. limited credit period (account was settled very late last year);

4. tell tour operator about new recreational facilities;

5. a more prominent display in the operator’s brochure;

6. introduce a sell-on clause (sell the unsold rooms weeks before date).

Secretaries

You are in charge of arranging a meeting between a tour operator and a hotel representative. Agree upon the day, time and place of the meeting and set the agenda.

18. Spend some time preparing your roles in your groups. Then hold the meeting.

19. After the meeting return to your groups and disicuss:

• how well the negotioations went

• were all the objectives achieved

• what compromises and concessions were made

• could the meeting have been more successful

Self-check

1. What types of contracts are usually concluded between hotels and tour companies? What is the difference between an allocation contract and a commitment contract?

2. With which contract the risk is increased for a tour operator/ hotel?

3. What is a contract? What must a valid contract include? What is a breach of a contract? Who must compensate for a breach of a contract?

4. What kind of document is the Code of Practice?

5. In what case is the travel agent not responsible for payment of the specified services?

6. What entity is considered as a group?

7. What is the difference between a guaranteed and non-guaranteed reservation?

8. Which client is constituted as a no-show?

9. In what case can both the hotelier and the travel agent be exonerated from their obligations without having to pay any compensation?