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!
Any comments? Email jdavis@mashmedia.net
