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Talk about rolling out the red carpet.
To persuade the Saudi Arabian government to book 150 rooms for 10 nights at the Hotel Inter-Continental New York, Leland M. Lewis, the hotel's director of marketing, made a special trip to the embassy in Washington. Then, after he'd won the business, he made sure their stay was comfortable by bringing in a special chef and making sure several hotel employees spoke Arabic.
"It was a difficult group because of the language and cultural barriers," explains Mr. Lewis.
Difficult, and not as profitable as Mr. Lewis would have liked. The group paid upwards of $150 for a room, although the hotel's average rate is $196. Says Mr. Lewis, "The rate wasn't horrible. We're receptive, but a couple of years ago we wouldn't have felt the need."
Hotels are becoming much more hospitable these days. Faced with declining occupancy levels and new competition, New York's hotels are holding the line on room rates and cutting better deals for large groups, even as hotel expenses increase. In addition, they are intensifying their marketing efforts, bolstering sales staff and adding more amenities to lure guests to their properties.
"It is getting a lot harder to book rooms," sighs Ivan Chadima, the general manager of the United Nations Plaza Hotel, who will soon leave his post to help spur the tourist industry of his native Czechoslovakia. "And it's getting more difficult to increase the rates. Once it becomes a buyer's market, it becomes more difficult to negotiate in your favor." He notes that client of his who books 2,000 room nights a year has a room rate of $170, an increase of just 3%...