Take a Close Read
As conference organizers across the country engage in the challenge of finding a venue for their events, I have noticed a few areas that get missed in the contract review. To be clear, finding the right venue and vetting contracts should be done with a skilled professional but if you are looking for a quick jump start here are three things to consider:
1. Attrition - In short, attrition means that you/your client is responsible for a % of a commitment usually associated with lodging. Spoiler alert: Lodging is where hotels make the lion’s share of their profit, which is a lesson for another time. However, it is very important that you understand what this clause means for your event and financial liability. As an example, if you “think” you are going to have 100 guests at an event, you probably don't want to book 100 sleeping rooms; I would advise you to block 90 and be pleasantly surprised when you exceed the block.
2. Payment terms - This advice is specific to non-government entities. Many organizations often walk into the room thinking that they can pay after the event and, yes, with the appropriate credit approval this is an option; but it is very rare to confirm a hotel venue without putting down a nominal deposit and your credit application (often known as a direct bill application) which can take up to 90 days, which means that before you enter into a venue contract you need to ask yourself this question: Do I have the cash flow to pay for this event in advance? If the answer is no, I am going to ask my client to consider another venue.
3. Program Agenda - Years ago I had many conferences that outgrew their original program design. As an example, one conference scheduled for five breakouts had seven breakout rooms and my hotel partner could accommodate this change without any issue. In a post-Covid world, it is my experience that hotels are often oversold; therefore, before you sign any contract, it is critical that you have your agenda times and session expectations established to ensure that your program can truly happen at your property of choice. If you have a past experience where a hotel was accommodating, that’s wonderful but the reality is no hotel venue is obligated to agree to all of your pop-up requests. Simply put, plan in advance.
While contracts are not as exciting as the decor or entertainment elements of events, they are critical.
In my experience a solid contract is an excellent foundation for your overall guest experience.
What I am currently seeing is that venues are fleeting, so if you have event dreams for 2022 and beyond, begin your venue search soon, and, always, take a close read.
p.s. Don’t forget to follow along with our journey via IG @belajoyful.
