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sector is satisfying the customer, which is in the interest of both Sun and Fun Tours and Hotel de la Playa.

Negotiations are a case of give and take, and good negotiators are sensitive to the priorities and musts of the other side. Beating the other side into submission, even though it may give a sense of victory, is certainly not the way to establish the atmosphere of mutual understanding necessary for an ongoing business relationship

With this in mind, any preparation must take into consideration both parties' interests.

I. Goals

There is only one major item to be negotiated, the 30 percent reduction. However, you must decide how much discount you (Sun and Fun Tours) demand/how much you (Hotel de la Playa) are willing to give, what concessions you are willing to make, and what you expect to get in return.

Sun and Fun Tours must determine how important getting the full 30 percent is and if they are willing to accept less compensation or other forms of compensation. How important is it to continue the business relation with Hotel de la Playa? Hotel de la Playa must determine whether they totally reject giving a full 30 percent and what the consequences might be. What other forms of compensation might be acceptable to the guests? How important is it for your hotel to continue the business relation with Sun and Fun Tours?

II. An Assessment of the Balance of Power

In spite of what was stated about the necessity of a mutually satisfying agreement, both sides will evaluate the strengths and weaknesses of the parties involved in the negotiations in order to avoid being "steamrollered" (dominated by the other side). Assessment of the balance of power will help you in determining your strategy and how much pressure you want to put on the other party (while not forgetting the importance of a mutually satisfying agreement). Some of the basic questions you have to ask are: how much do we need them, what alternatives do we have, and how viable are the alternatives? Naturally, you must also ask how much they need you.