Not sure if it was because I watched too many episodes of LA Law in the 80’s, but before I entered the world of events and conferences I actually wrote the LSATS ready to venture into a law career. I have always loved contracts - dissecting them is fun and challenging!
I have spent the last few weeks reviewing quite a few hotel contracts for the upcoming year and thought I would share some points with all of you that I have always found useful.
My first boss (we are talking about 25 years ago) taught me these cardinal rules for hotel contracts:
1. Don't be afraid to voice your concerns and ask questions
For example:
The term “Ancillary Charges” is a bit scary. Ask the questions
² Are these charges for meeting room rental and/or setup?
² Is it per day or for the duration?
² Is there a fee for “extensive” meeting room set-ups or room turnovers?
Get confirmed prices for what these charges are.
Surcharges and other fees that seem vague
² Are these surcharges for not using in-house vendors?
² Can this fee be waived?
If it is not clear – get the terms defined.
2. Let your wishes be known
Before I even ask for a contract, I put forth my wishes and ask for them to be included into the contract.
For example:
One complimentary room per 40 revenue-producing rooms actually utilized is a common concession, but how do you want this to benefit you?
² Spell out how you want the comps to be calculated (on a cumulative or per-night basis) Cumulative is one of my favorite words.
² Stipulate that you want them to be credited to the master account instead of assigning them to individual guests.
Let your hotel sales person know exactly what you want to be included into the contract. I treat the first contract I get as a draft.
3. Personalize your Concessions
Depending on the size of the group and the amount of revenue you are bringing to the hotel, concessions can vary so much.
Think about what the particular group really needs
² If you know you have 8 board members attending your meeting perhaps it would be better to ask for 8 upgrades instead of 3 suites.
² I always try to include a few rooms at a staff rate. Staff members tend to come in earlier and stay later and this extra discount helps your staffing budget.
² Don’t forget to state the duration of the desired concession – if you need those 8 rooms for pre and post nights - says so. Be clear on what you need.
Go beyond complimentary rooms
² If your group needs to distribute a welcome note to all attendees, you may want to add this into the contract and ask for them to be given out at the front desk when guests check in.
² Complimentary or discounted parking rates.
² Complimentary or discounted internet access both in guest rooms and in meetings.
What will help your group the most?
² Receive "best" rates on guest rooms, and have those rates applicable to the group for three days pre and post of meeting. These rates should include the stipulation that the group is guaranteed the lowest rates that the hotel will offer during that time period, and if the hotel lowers the rate, they will guarantee that the group’s rate will be reduced to remain the lowest rates.
Make sure you take the time to review and finalize any contract. Don’t take too long to get the deal done. Otherwise, you could find yourself like the NFL and the players association…………staring down a negotiation gone bad with little time to fix it. Wouldn’t I love a crack at that contract!
A note about negotiation on the “legal stuff”: the technicalities of the legalese in contract can get complex, so if there is something that you don't understand, ask about it and consider hiring a lawyer to help you.
