One of the most important parts of running an event is negotiating contracts with vendors, venues and hotels. When picking a venue there is a lot to consider: is it the right place, the right price, the right feel and right location? If the answer to those questions is yes, next comes the contract and the negotiating.
When negotiating, think ‘Is my request reasonable? If I were the venue, would I find my suggested changes acceptable?’. The goal is to get the best deal for the client while maintaining a strong, agreeable relationship with the venue. Signing the contract is just the beginning. It’s important to consider all possible scenarios before you sign the contract.
Original deadlines listed in contracts almost always can be pushed back; just ask. This is true for final rooming lists and final F&B numbers and be sure to ask that discounts to be extended. It is smart to keep your hotel contacts updated regularly regarding numbers.
If blocking rooms for a conference or event, pay close attention to the attrition section of a contract. Attrition is the amount you are allowed to go below the guaranteed number of rooms you block with the hotel. For example, say you block 100 rooms. The attrition is 80 per cent so you are responsible for taking 80 rooms by a certain date. If you fall short of the 80 rooms, say only 70 rooms are filled, then you are responsible for payment for the remaining 10 rooms. (Also be clear on the number of rooms verses the number of nights, is it 80 rooms for 1 night or is it 80 rooms for 2 nights which is then 160 rooms).
Ways to tackle this potential problem:
- Block rooms conservatively
- Keep initial numbers low but keep the hotel informed. If you find you need more rooms, make sure the hotel will honor the discounted rate. Add that to the contract
- Add a clause in the hotel contract: “Should the attrition rate not be met and the hotel is able to sell said rooms to other hotel guests, then the client will not be held financially responsible for those rooms”
- See if they can lower the attrition rate
- Ask to push back the date the rooms need to be filled.
Review the cancellation clause carefully and negotiate the fees and terms, just in case. You don’t want to think that an event you have worked hard on will be cancelled, but these things do happen. Hotels will work with you if they know the event will be postponed by a certain date. This will save you from having to pay a full cancellation fee. Either way, be very clear on what the cancellation fees are.
F&B minimum requirements may be negotiated. Remember that minimums are before tax and gratuity/service charges are applied. Alcohol consumption, too, is a guessing a game and can be a real shocker to the budget if not addressed before hand. You can ask a venue to pour conservatively, meaning don’t be pushing the alcohol and that you (the client) will not be responsible for any un-opened bottles of wine. Also specify types of alcohol that will be available to guests and what you are willing to pay for.
Always ask for room rental fees to be waived or discounted- especially if you are bringing a lot of revenue to the hotel. Often hotels will give you a courtesy back office and possibly free Internet.
Be sure you convey to your client the terms of the contract and that the hotel contract lists your client in in the contract. Have at least 2 people review the contract. Think in terms of what you need, what could possibly go wrong, and solutions to those “what-if scenarios”. Work closely with the hotel – they want to help make you happy. Remember they want your business!
Lexa Iantuono-Sllivan, US-based IS Event Consulting.
Any comments? Email jdavis@mashmedia.net
