 After
you have decided on the goals
and objectives for your event,
the tentative agenda, the anticipated
number of attendees and you have
set your budget it is time to
find the perfect location and
negotiate a win-win agreement
with the facilities. Whether you
are using a site selection firm,
a full service meeting planning
company or you are planning and
managing the event on your own,
you should understand the basics
of a hotel contract.
The
hospitality planning industry
has not reached the point of
having a standardized contract.
But most agreements do address
many of the same issues such
as the number of guest rooms
and amount of function space
they are committing to your
function, the costs associated
with these commitments, your
obligations and your penalties
for not abiding by the agreed
upon terms.
If
you are not familiar with guest
room blocks, guest room
and food and beverage attrition
and cancellation clauses,
cut-off dates, function space
commitments and concessions
then please read on.
Room
Block
This section of a facilities
agreement details the number
of rooms the hotel is taking
out of its inventory and holding
for your use. It should spell
out the number of guest rooms
they are holding, the exact
days and dates, the specific
type(s) of accommodations, room
rates and when possible, the
guest room locations.
Attrition
Most facilities now include
clauses that address the amount
permissible the client may reduce
their rooms and/or meal commitments.
Oftentimes this clause allows
the client to reduce their needs
by varying percentages on or
before specific dates that are
outlined within the agreement.
If you exceed these amounts
you incur monetary penalties
that can add up to substantial
dollars. This is where knowing
your attendees and the likelihood
of there attending the event
pays off. When negotiating the
percentages and dates try to
have them reflect your group's
personal timetable.
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Cancellation
Clause
This area of the contract is
much self explanatory. Should
you cancel within the various
timeframes outlined in the agreement
you, the client incurs hefty
penalties that increase the
nearer you are to the actual
dates of your function. Have
the exact penalties stated in
the document.
Cut-Off
Dates
Outlines when you must have
the final guest room reservations
to the hotel (and may also set
requirements for when meal guarantees,
menu selections or a firm agenda
is due to the property). This
section allows the hotel to
try and resell rooms that you
are not using within your room
block.
Function
Space Commitments
This part of the contract addresses
the function space the hotel
is willing to commit to you
to handle your anticipated agenda.
Oftentimes the facility does
not outline the specific function
rooms or states that they have
the right to reassign rooms
as they see fit. However it
is best to have the actual room
names and time of day negotiated
and written into the contract
and guaranteed to you prior
to you signing the agreement.
This insures that you will have
the space you need when your
guests arrive.
Concessions
This is the area of the contract
where what you have negotiated
above and beyond the basics
is written into the agreement
i.e. complimentary rooms, free
meeting space, room and suite
upgrades, VIP amenities, no-charge
cocktail receptions, etc.
Remember the contract is written
by the facility and therefore
designed to protect their interests.
But it can and should protect
you as well since the contract
is the foundation for your program.
And a contract may be the only
proof you have of the facility's
commitments should the property's
representative leave prior to
your group's arrival.
To
be a good negotiator you must
be willing to walk away from
the negotiating table. And
Remember everything IS negotiable.
Mark
Kustwan is a Certified Meeting
Professional with more than
25 years of conference planning
and hospitality industry experience
and is owner of OnTheMark, a
site selection and full service
meeting and incentive company
located in East Longmeadow,
MA. Reach him at (413) 526-8900
or mark@onthemarkevents.com
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