Contract Concessions That Cost Hotels $0
By Jaelynn Fisher
Ask anyone working in meetings and events how they currently feel about the pandemic and its impact on the hospitality industry as a whole and you’re likely to hear that it’s been both the longest four years and also the quickest four years simultaneously—and the effects are still ongoing today.
While much advice prior to the pandemic regarding sourcing and contracting meetings and events does still apply, the current state of affairs offers evidence that the tables have shifted from being a buyer’s marketplace to a seller’s marketplace, leaving buyers forced to become more creative and flexible in their sourcing and contracting procedures.
As a planner, you want to ensure that you are showing stakeholders the value the meeting or event is bringing to the end user to sustain the life of the event. In addition, if you are a third-party planner or agency, it’s even more critical to show the value you bring in terms of contracting and concessions added on your client’s behalf. Meaning? Every concession asked for is important and could mean the difference between not only ensuring repeat business for years to come, but also in keeping your clients from leaving for your competitor.
The following is a list of concessions that should be asked for in every hotel contract, as they will cost the hotel zero dollars if they are accepted. I do want to note that “cost zero dollars” – from a hotel sales perspective – means that the hotel is not spending money internally (on added staff, resources, food and beverage, guest rooms, meeting space, etc.) or externally (marketing, commission, third party A/V, etc.) if these concessions are granted. And, it’s also worth noting that each hotel is different, so it’s always worth asking…the worst anyone can say is “no.”
Ask For Items That Are Already Onsite
Asking for items to be included complimentary for your meeting that are already onsite is an excellent way to start. This includes things like: complimentary WiFi in both guest rooms and meeting space, discounted parking (only if the parking lot/garage is hotel-owned), complimentary daily use of the onsite fitness center (not including use of a spa), granting individuals access to the Executive Lounge, and the ability to display your group’s/conference’s meeting name on in-house monitors/reader boards (to increase brand awareness).
Request Better Contract Terms
Once you’ve asked for all of the “freebies” that the hotel could offer, next you should evaluate the terms of the hotel’s standard contract. Ask to adjust the group cutoff date from 30 days to 21 days and, while you are at it, ask if you could allow substitutions up until the check-in day. Inquire if you can switch attrition from per-night to cumulative over the group dates. Ask to add a “re-booking” clause in addition to the cancellation clause. All of these would assist your group in avoiding hefty damages.
Consider Adding These Clauses
Depending on the size of your group, the length of your program, and the amount of labor these would incur, consider asking for these concessions if they won’t be too labor-intensive to the hotel. When one of the following is added to a contract, hotels already have staff onsite in the respective departments and, most of the time, additional staff isn’t brought in to handle the request; existing staff completes the tasks and the group is up-charged. Consider asking for waived package handling (and storage), waived room drop fees, and no charge to use outside A/V and other vendors.
Expand Existing Resources
Look into your group’s needs and, if there is an opportunity to make one item work for two purposes, consider asking to use it two or more times for only one fee, keeping in mind your group’s size and the ask. If you are expecting your group to arrive on a flow, well before the event is starting, or from out of the country and need luggage storage, ask for a complimentary luggage hold. Many times, this is a small banquet space that is unused (and un-attended). Is your board of directors looking to have a small meeting? If they have outlets onsite, consider asking if they could use one of them during a time that won’t be open when they want to meet; this bypasses a meeting space charge and provides a larger and more private space to work. Lastly, consider re-using food and beverage items for morning or afternoon breaks (as long as they are still safe to eat). Replating pastries from breakfast to serve at a morning break or replating of cookies leftover from lunch for an afternoon break can save money by reducing the cost of purchasing additional items for those breaks and can also prevent food waste.
Bottom line: it’s still a seller’s market and, as we head into the end of the year, all signs point to no major changes with that. While that means tighter restrictions on things like complimentary room nights, attrition damages, and cancellation clauses, there are still plenty of concessions that can help your meeting or event with the bottom line. And as many people know in negotiations: it never hurts to ask.
MEET
Jaelynn Fisher is a contributing writer from St. Louis.
