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Peru Hotel: A multiple level negotiation or how to fight for $1.5 per night

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  1. The context
  2. The expectation
  3. The negotiation
  4. Basic analysis
  5. Negotiating with the employee and owner
    1. The situation
    2. Cultural bias
    3. Strategy
  6. The control of the communication and of the process by the other part
  7. Defining the BATNA

This story happened this summer. We were seven people, working as relief workers in Peru for a period of two months. We had been in Peru for 10 days. After arriving in Lima, we went to Huancayo, the first city where we studied different projects to invest money in. After one week, we travelled to Huancavelica, the major city of the poorest region in Peru, to stay there for 8 days. After that, we had to move again, and then come back to Huancavelica for 3 days, in order to finalize and implement our project. We arrived by train. After six hours by train, we were exhausted and willing to find a hotel as soon as possible. Our contact in the city, a member of a local NGO, was going to help us find a hotel. We went to the hotel, where the members of our NGO had stayed the year before. We decided to stay there with our backpacks while two of us, a friend and me, were to look in the city for other hotels. After one hour of research and quick negotiations, we found two hotels, a really bad one, at 8 soles per night (3$), and a better, even if not incredible, one at 15 soles per night. On this basis, we negotiated with the hotel we were waiting in, a more comfortable one, but basically much more expensive, being 30 soles per night.

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