Negotiation Planning Matrix

1 What are your objectives for the upcoming negotiation? Be as specific as possible. What do you …
a) hope to get (nice to have?)
Expert tour to pay the 25% disscount from theier own money since the hotel help them out last yea
Expert to proived special offers in tours etc during working ours of the construction
b) intend to get (important?)
No to give more than 10% Disscount due constructions / we will give them a special price for the ne
Expert tour will offer some special treatment to the clients / More room capaciy for Expert tour for
c) must get (possible deal breaker?)
Maintain an excellent long-term relationship with Expert Tour, as they manage to occupy 25% of the
Less than 20% percent disscount for each room
1.1 hope to get (nice to have?)
a) a 25% of disscount from Hotel la playa
Special cortesis from the hotel such a as spa, free breakfast etc.
b) intend to get (important?)
15 % of disscount from Hotel la playa
To be able to get better prices for next year to offer the best packages/prices to their customers for
must get (possible deal breaker?)
c) Not getting an agreement to help them cover the cost in the short term / No support from Hotel la p
2 What do you think they need so they can say yes to you?
For them to say yes, they will need to understand that the 'investment' into us right now is going to
4 What questions do you need to ask?
Do you have other options short-term for lodging the clients in other hotels?
Have you proposed to your customers other options that would not require providing discounts?
What is your cancellation rate?
What are your legal options with respect to your customers?
How much time must you advise the costumers in advance?
How did you come up with the 25% discount? On what factors is this based?
How are Expert Tour's economic projections?
With
Whichhow many
Hotel other
is the mosthotels does Expert
in-demand in theTours
Expertcooperate/work in Costa
Tour portfolio for Costa Rica?
Rica? What is the average

Would they be able to help us cover costs to accelerate the construction work?
Is there any way in which you could contribute to making the construction work go faster? As we las
5 What questions do youHow
thinkmuch
theywill
willthe
ask room
you? prices increase when you reach the 5-star level?

Why is it not viable for you to give us a 25% discount?

Are all the rooms we booked close to construction sites?
Is it possible to change the construction schedule?
What would be the hotel's loss if Expert tour does not bring its clients because of the construction?
Do we work with other agencies?
Is it possible to give other discounts to the employees on the hotel premises?
As the Hotel was only able to fill 70% of the capacity, are there any other rooms that aren't affected
Do we own more hotels in Costa Rica to accommodate our customers in other of your hotels?

PLANNING WORKSHEET SUMMARY

ISSUES
(Why we are -meeting)
OBJECTIVES GOALS: PRIORITIES (NICE TO GET - MUST HAVE)
PERCEIVED NEEDS AND INTERESTS
BATNA - Best Alternative to a Negotiated Agreement - What can be done if the negotiation fails?

POTENTIAL CONCESSIONS
(Things I’m willing to give up)
STRATEGIES
Cost of not Reaching an agreement
UNDERLYING ARGUMENTS
KEY QUESTIONS TO ASK - WHAT QUESTIONS WILL THEY ASK

Negotiation Game debrief

In Teams, reflect on the results of your Negotiation Game:

1 To what extent are you satisfied with the outcome of the negotiation? (Objectives reached?)
Mark your rating (1 = Very low; 10 = Very high)

1 2 3 4 5 6 7 8
0

1
you …

e hotel help them out last year.

construction

hem a special price for the next year when we achive our 5 Star (5 % cheaper)
m capaciy for Expert tour for the next year

manage to occupy 25% of the Hotel in peak sessions, which is a guaranteed income.

s/prices to their customers for next year

m / No support from Hotel la playa

t' into us right now is going to be beneficial to them long-term

hotels?
equire providing discounts?

based?

sta
sta Rica?
Rica? What is the average price that the other resorts/hotels offer Expert Tours?

tion work?
tion work go faster? As we last year 2020/2021,did not charge you 30% for the rooms reservation. Is there any way Expert Tours can help us?
vel?

because of the construction?

emises?
her rooms that aren't affected by the construction that we could offer instead?
in other of your hotels?

ME
Lose the long term relationship with the Expert Tour
Negotiate prices for
Expert to proived next offers
special year in tours etc during working
ours of the construction.
Making customers happy, limiting noise, protecting as
Expert tour willasoffer
much income somewith
possible special treatment
the least to theeffort,
additional clients /
More room capaciy for Expert tour for the next year.
having the construction finished on time, preserve a long-
Less
termthan 25% percent disscount for each room
partnership
 Do nothing and make the best that we can out of the
circumstances provided.

We would be happy to extend available rooms for next year

when we become
Preferably win-win,a 5*buthotel.
my strategy would be to do the
following:
Potential loss of 315klook if they decidde
We could potentially at paying uptotocancel
5% of the
the contract
value of
this year,
today's
WeProvide plus
contract
are investinga further
in (potential
refunds.
into on
thethefuture loss) of
of thishow 650k
hotelare in
and the next
a.
year if theyfirstly
don't data
renew ofand business,
wepartnership.
don't find webydoing,
aWhilst
replacement
extension,
what our
As above to the
projectionsfuture
are this
for this and next year and the
how we
works
expectarethenot ideal,toitdevelop.
market is going to yield very here
Preparation high returns in
will be key.
the future. Expert Tours should be a part of that future and
we have a way
b. Remind to work itthat
our partners around
we areso only
that one
we have a win-
of the few
win.
high quality party hotels in the region. In fact, out of the
top 5 in costa rica, 3 are well-known chain hotels which do
not provide our unique experience, and the remaining two
have much higher prices than 120 USD.
b. Convincing the tour operator that a lot of the hard work
has already been done and that workers will only be there
to finish non-drilling work. To this end, show our tour
9 10 operating friends that it is neither in their interests not in
ours that we flat-out offer to pay 25% return.
From there, we belive that there are three options:

1) Offer that we should co-finance some additional

activities for hotel guests as a form of surprise (if they'd of
course like to go). For example, a trip to a local jungle,
additional services and so forurth. The estimated
additional costs that these would be approximately 2000-
3000 USD for 45 people, split 50/50 with the tour operator.

2) We ask the tour operator to cover any costs relating to

potential complaints. In exchange, for the next contract, we
will provide them with 30% more rooms and we will only
raise our prices by 15% (rather than 20% which is the
normal spread between 4* and 5* hotels).

3) We agree that we will cover 5% of the potential claims

that might come through. To this end, if every customer
complained, the hotel will need to pay 22.5k in refunds but
this is unlikely. In exchange, however, the tour operator
would have to simultaneously agree the new terms of for
Y22 where we would only give them the option to increase
the number of rooms they want to rent out.
 .

ms reservation. Is there any way Expert Tours can help us?

OTHER PART
The cost they will have to cover due constructions.
Get
1.25%a good angreement
of disscount fromfor next
Hotel la year.
playa
2.15 % of disscount from Hotel la
Keeping customers happy and serviced,playa protecting income,
3.Not
getting the best deal possible for thethem
getting an agreement to help nextcover the cost
year when we in
the short term
become a 5* hotel/ No support from Hotel la playa
Doing nothing, but have the 25% discount ready in case
some customers complain. Given that renovation efforts
might vary from day to day, there's a chance not all
customers will be equally affected. 25% discount on
request.

The opposing side may be open to covering more of the

current costs, given
Also preferably theirtheir
win-win, BATNA.focus is likely to be for us to
admit some
Potential responsibility
loss of 135k, plusand pay for
at least some
inforofathe
The opposing
disruption in side
today'smay be willing
season. The to700k
keysettle
question islonger-
how and
reimbursements,
term
They agreement
areextent
responsible rebookings,
if we can come
forwant reputational
through
the disruption damage
this
and time.
they and
should so
to
on.what
All short will
term, they
impact on us to pay. They are
cashflow would be horriblelikely to:
pay for
as above it. At least to some extent.
1) First tell us that we need to pay half of the
reimbursement fees.

2) OR not pay anything, but freeze the price for the

following year when we become 5*.
3) Make us pay for all additional attractions for guests that
complain.
They are likely to take a hard stance as they are under
preassure to resolve the situation quickly.