ARS KeypadsQuestion will appear on screen of keypad

Use number keys for answer selection.

ARS Microphones

Microphone

Microphone Button

Red Tally Light

Please hold microphone 4 - 8 inches from your mouth.

Our current time in the area of hotel proposals and contracts are different than

they’ve been in the recent past.

The economy’s pick-up has put the hotel industry back in the driver’s seat and

the planners are experiencing a seller’s market.

There is high demand and low supply of available meeting space and guest rooms.

● Provide history, pattern, flexibility, audience, and decision making process and timeframe

● Disclose important decision making factors● Always have a conversation with the Sales Manager● Compare all RFPs side-by-side to allow for best negotiating between

properties

Start With a Solid RFP:

● No charge from in-house AV nor security for utilizing an outside AV provider

● 1:40 comp/1:35 comp ● Free meeting space ● Site visit / staff guest rooms at no cost● Wifi● Discounts from catering, AV, outlets, etc.● Etc.

Consider Concessions You May Want:

● Request rebates / commissions ● Include mutual indemnification clauses ● Review payment terms for hotel based on client’s cash flow ● Add in Rebooking clauses● Request that meeting rooms cannot change without written

permission from the client.

More Items to Consider:

Be prepared to sign contracts quickly because demand is high and availability is low – and ask for “signing bonuses” if the sales manager is under pressure to meet month/quarter deadlines

Act Fast!

Let’s Help The Venue – Everyone Wins!

Ask what holes need to be filled if dates are flexible; you might have a better value contract if the hotel needs to fill a specific “niche”

Legal Issues

● Understand the importance of a written agreement and appreciate the potential for litigation as a worst case scenario

● Always maintain a good paper trail● Use caution when negotiating non-economic items (e.g., risk

management)

Room Block Attrition

● Right to reduce before?● Minimum pickup● Per night or cumulative?● Dollar multiplier – lost profit vs. lost revenue● Treatment of resold rooms● Right to audit pickup and resell numbers● Credit for all group rooms regardless of rate paid or method of

reservation

Function Space Attrition

● Watch for attrition issues● Other groups● Conflict Avoidance● Specify groups● Reassignment of Space● No reassignment without prior written consent● Quiet Enjoyment● Cover noise, odors, dust

Rights of Cancellation

● With cause● Without cause

Force Majeure

● Acts of God● Acts of War● Strikes● Other● Not poor attendance or business conditions

Common Force Majeure Issues

● Illegal or impossible● “Grocery list” with “catch all” statement● Standard of impact● Perform anyway

Construction or Renovation

● Notice● Group gets to decide whether construction will impact its meeting● Specific representations for known construction projects

Strike or Labor Dispute

● Cover both legal strikes as well as any type of labor dispute● Disruption in Services● Notice and right to decide if it will impact meeting

Change In Management

● Could be management company or rebranding of hotel within management company family

Cancellation by Group Without Cause

● Sliding scale● Negotiate date parameters● Fee based on lost profit or revenue? Include food and beverage?

Cancellation by Hotel Without Cause

● “Grocery list” approach● Include indirect and consequential damages and attorneys’ fees