In the ever-evolving hospitality industry, staying ahead requires more than just experience—it demands insight, adaptability, and collaboration. At The Beyond Collection, we are committed to leading the conversation by providing actionable strategies that empower our community of luxury hoteliers and planners alike.
Our Lunch ‘n Learn webinars offer exclusive access to industry experts and their insider knowledge. In a recent session, we tackled one of the most complex aspects of event planning: navigating event contracts. Featuring sales experts from Stein Eriksen Lodge, Paws Up Montana, and Ponte Vedra Inn & Club, this session delivered essential tips to help planners and venues negotiate with confidence. Here are 7 Contract Do’s and Don’ts:
1. Food & Beverage (F&B) Minimums
F&B minimums are not a one-size-fits-all number, as they depend heavily on factors like location, seasonality, and the size of the group.
- One hotel averages $200 per room night but allows for flexibility based on timing and demand, especially for short-term bookings or smaller groups.
- Another hotel ties F&B minimums to rooms-to-space ratios and considers seasonality for adjustments.
- An all-inclusive property includes daily meal plans in its minimums, resulting in higher thresholds but covers all dining expenses.
Pro Tip: Communicate your event’s timeline and needs upfront. Hotels can often adjust minimums based on demand and season.
2. Down Payments
Deposit structures are determined by factors like lead time and the hotel’s operational commitments.
- Hoteliers typically require an initial deposit of 10-25% of the lodging total, with subsequent payments tied to milestones like menu selection deadlines.
- Flexibility is possible if planners clearly communicate budget constraints or unique circumstances.
Pro Tip: Early discussions about your budget and payment schedule can lead to creative solutions that work for both parties.
3. Credit Card Fees
Credit card fees can significantly impact a hotel’s bottom line, often totaling thousands of dollars annually.
- Some hotels charge a fee (e.g., 2.9%) for credit card payments, while others waive it.
Pro Tip: Include your preferred payment method in your RFP to avoid surprises later.
4. Site Visits
Site visits are crucial for experiencing a venue’s unique offerings.
- Independent hotels are often site-visit friendly and may offer complimentary stays if your event is shortlisted.
- During high-occupancy periods, properties may charge a discounted rate, refundable upon booking.
Pro Tip: Flexibility in scheduling your visit increases the chances of securing a complimentary stay.
5. AV (Audio-Visual) Costs
Rising AV costs are a common concern among planners.
- Suggestions to reduce costs include trimming unnecessary equipment (e.g., extra microphones) and bundling frequently used items into packages.
- Some properties offer discounts on AV as part of their concessions.
Pro Tip: Work closely with your sales rep to align your AV needs with your budget and explore cost-saving opportunities.
6. Concessions
Concessions vary widely depending on the property and event details.
- They fall into two categories: tangible perks (e.g., VIP amenities, comp rooms) and contract clauses (e.g., rebooking and force majeure language).
- 2. Be upfront about your priorities during the RFP phase to streamline negotiations.
Pro Tip: Prioritize your top concessions and communicate them early to avoid surprises during the contract phase.
7. Attrition Management
The pandemic has shifted attrition trends, with higher no-shows becoming more and more common.
- Independent hotels often hard block rooms for groups and avoid overselling, but they rely on sufficient lead time to resell released rooms.
- Tiered attrition policies (e.g., 10% at 60 days, 10% at 30 days) help balance planner flexibility and hotel needs.
Pro Tip: Understand the hotel’s resale challenges and be willing to discuss tiered policies that work for both sides.
Join The Beyond Collection
If you’re ready to elevate your approach to hospitality, we invite you to join us via The Hive, our exclusive community where executive assistants, meeting planners, and hospitality partners connect, share ideas, and continue the conversation. We are committed to fostering true connection and collaboration in this industry.
These 7 Contract Do’s and Don’ts came straight from our monthly Lunch ‘n Learn! Make our next one part of your calendar and discover why our series is an indispensable resource for the industry’s most forward-thinking professionals.
Watch the full webinar here: Contract Dos & Don’ts | Vimeo
