Here are my (5) Sure Fire Hotel/Resort Contractual Terms that most companies or people miss during the contracting phase of booking guestrooms or meeting space from an industry expert insider with over 18 years experience in the current economic climate!
(5) Sure Fire Hotel Contract Negotiation Tips I Bet U Missed!
1. The Bottom Line: Five Contract Negotiation Tips to Help Lower Your Meeting Spend
Kimberly Corbin
Synopsis: If you're booking meeting space at a hotel, you might find yourself in the middle of contract
negotiations – which can be a very daunting process! Here, an expert from worldwide provider of
outsourced meeting planning solutions ConferenceDirect explains five key negotiable items you may not
think of on your own.
Before signing your next hotel contract, keep in mind that there are many negotiable items that you
might not immediately think of. The obvious items are your group rate, as well as terms for attrition and
cancellation. However, there are many more that can help your bottom line.
1. Rate Spread
If the hotel has quoted separate rates for single and double occupancy rooms, review your group’s
history and determine which occupancy you use more of. If you use more doubles than singles, ask
them to reduce the double occupancy rate and increase the single occupancy rate.
2. Complimentary Policy
Many hotels will offer one complimentary room for every 50 rooms sold based on the number of
sleeping rooms you contract for on your main meeting days. This can often be negotiated to a lower
ratio such as one in 40 or even one in 25 in some cases. Always try to get the complimentary rooms
based on a cumulative basis as opposed to a daily basis and include any rooms your attendees use if
they extend their stay prior to or post of the main meeting days.
3. Shipping and Receiving
If you have a lot of supplies that you ship ahead for the meeting, you can negotiate the fees to be
waived anywhere from 24 to 48 hours prior to arrival. Base it on the first night of any attendee arrival,
not the first meeting day as you will probably arrive a day or two ahead of the group.
4. Beverage Service for Office
If your meeting or conference will require an office for the on-site staff members who are there to work
the meeting, ask the hotel to provide complimentary beverages such as coffee, water and sodas. It’s a
small concession the hotel can provide to help keep the hardworking staff happy and save you some
money.
5. Group Rate Extension
Most contracts will state that after the cutoff date or after the group room block has been filled the
hotel will offer the best available room rate. This can often be negotiated to extend the group rate if
they have rooms available.
2. Extra Notes on contract signage:
o Under no circumstances, would I recommend signing a contract with your “own” name
and title. Always utilize the signature line on behalf of the organization you are
representing. In cases where legal claims may need to take precedence, you will leave
yourself open as the liable party. Think before you sign any legally binding document!
Recommendations:
I always recommend having a professional represent you when negotiating any contract. You would
never buy a real estate without a knowledgeable agent or go to court without legal representation.
Although the hotel contract negotiation process may seem easy and straightforward, always remember
that most hotel/resort contracts are written in a way that works best legally for their enterprise. They
are in the business to make money, not lose it.
It’s not all about the lowest rate here! It is however always about the best overall contractual terms
that will limit your monetary liabilities in cases of unforeseeable circumstances, (Attrition, Cancellation,
Force Majeure, Necessary Concessions, etc)!
They are not here for you!
The best executed contracts are not a “win-win agreement” but rather a “partnership agreement”
between your company and the hotel. The hotel sales manager is representing the hotel and their
interests, but who is representing you and your company if you do not have a legal department to
review the contract?
In most cases, even if you and our team do have a legal team, in 95% of the legal departments for major
corporations, they are not well versed in “Hospitality Law”, which is a completely different beast than
standard legal terminology!
Kimberly Corbin is a Global Account Director with ConferenceDirect with over 15 years of effective
contractual hospitality negotiation on both the hotel and meeting sides of the business.
ConferenceDirect is a worldwide provider of outsourced meeting planning solutions. The portfolio of
offerings include: Site Selection, Contract Negotiation, Conference Management Services, and Housing &
Registration. ConferenceDirect is pleased to provide these services on an individual or "all inclusive"
basis. There is no charge to our customers for hotel site selection and contract negotiations. Kimberly
3. Corbin can be reached for questions or comments at Kimberly.corbin@conferencedirect.com at
678-272-7821.