Ask The Experts - March 2008
Contract Negotiations - Key points you must know
Q: What type of complimentary concessions should I ask for in the contract?
A: This all depends on the size of the group, but typical things that hotels can concede on are complimentary site inspection nights, complimentary transportation to and from the airport for meeting planners and select VIPs, complimentary office space for larger groups, complimentary welcome amenities for top VIP’s, complementary newspaper delivery for top VIPs.
Q: Are site inspections needed for small to medium sized groups?
A: I personally am a strong proponent of site inspections. I don’t think the size of group really matters. I feel it is very important for meeting planners to get a feel for the resort, and to sit down and verbally convey their goals and expectations to their Convention Services/Catering manager. Seeing the property first hand also induces additional questions that can then be answered there instead of on-site.
Q: When should we ask for Pre-cons?
A: I would suggest at least a small pre-con for all groups. It is important for the meeting planner to meet all key staff and vice versa. It is also important for the staff to hear first hand from the meeting planner what the expectations for the group are. It is also a good test to ensure the hotel staff has been given the most accurate and up to date information.
Q: Every time I book hotel rooms I have a minimum Food & Beverage that I have to be obligated by, what are the best ways to negotiate those fees?
A: First, understand if the minimum applies to only Catered Events, or and group meal function in the hotel. Example: If you buy Buffet Coupons for the resorts Buffet, does that count? Do events in restaurants count? If they do not, make sure to negotiate the # down to account for this. Otherwise, I would try to negotiate down to 75% of actual anticipated spend.
Q: From last month column you had mentioned transportation check list, how do I stipulate it?
A: Most transportation companies will send you an invoice to pay, which they consider the contract. It will have pick up location, time, duration of the drive and drop up location and time details, but for the other information, you must send them a separate contact which the sales person must sign for, make sure it is not the dispatch or the office manager. Must have authority to change or emphasis their procedure. Because if they will not comply you will be able to go and ask for credit back.
Q: What, if anything, can I do to lower my insurance costs?
A: While it is not always possible to do this based on a number of circumstances outside the control of the consumer, such as carrier capacity limits, national and global economic fluctuations, etc., there are some things that all consumers can do to try to reducue their premiums.
- Shop the markets. Ask you broker to show you at least 3 quotes, if possible.
- Don't always settle for the first quote. Ask you broker to be agressive negotiater with your carrier.
- Explore with your broker alternative health care plans. Consumer Driven High Deductible Plans can lower premiums by as much as 50%.
- Find ways to motivate your employees to stop smoking or lose weight. This alone could help save thousands on annual premium.
- If the only service your broker is giving you is showing up once a year at renewal - usually with an increase in premium - it might be time to look for another broker.
Acknowledgment: Steve
Calanit Atia, president and founder of A to Z Events in Las Vegas, has been an event planner working with exhibitors for over 12 years. She is a graduate of UNLV with emphasis on tradeshow, events and convention management. Atia is the recipient of the prestigious Miller Freeman award for contributions to the tradeshow industry. She is also an Israeli Air Force Veteran, who served during the first Desert Storm. She can be reached at Calanit@atozevents.com or 800-244-5775.
