If there was ever a need for a definitive “how to” book for meeting planners, it would be a step by step process guide to researching, evaluating and contracting meeting venues. The challenge is talking about all the variables that come to play. That is why this article will be separated into two parts, with the second half being shared later this month.

Depending on who you ask, there are many opinions on what to do and not do. The goal is to create value for both parties, limit your company or clients’ risk and ultimately create a template or standard for you to use for reoccurring meetings or events. Let’s begin by focusing on the keys to a successful agreement: communication, dates, rates, space and knowing when it’s time to walk away.

Communication

My No. 1 credo has been that people do business with people they like and trust. Ours is a relationship business. The main component to a strong relationship is open and honest communication. This element applies to all that you’ll do in this industry. It will become the basis for how you are viewed and treated as a planner.

Remember:

• Your key contact within the hotel will be, most likely, your account executive or sales manager. Make it a point to share everything with them. They will assist you in the assembly of your agreement, based on their knowledge of the venue and the needs that you communicate.
• Be honest and forthcoming; nothing will be gained by keeping your event needs, wants and desires to yourself.

Dates

These are the specific date(s) of your meeting or event as well as any pre/post dates that are needed for set-up, arrival and tear-down.

Remember:

• Always plan for a little more time than you think you will need for set-up, especially for larger events.
• Have optional dates available, if possible. Being flexible can open up an opportunity for your group if the hotel is full on your preferred date(s).
• DON’T FORGET to ask what other group will be in the venue during your dates. You may not want to book a venue where a competitor is also holding an event.

Rates

Shop competitive properties to get comparable rates, even if there is no availability. Knowing what the market is charging at the time of your event will help you drive the bargaining process. Work to get that rate or better.

Remember:

• As part of your research, get specific information about ALL the rates you’ll be charged, not just room rates. Become aware of all of the following fees: taxes, surcharges, resort and technology fees, mandatory gratuities, early check out, fitness center, cancellation, attrition and parking (valet and self park), to name just a few.
• Share what I call your “threshold for pain,” or your desired rate ceiling, if you are still well above your target rate. Don’t be afraid to be aggressive, but be realistic. You can ask for $99, but if the venue is quoting and getting $199, you may need to look elsewhere.

Space

Always plan for more than adequate space in case of increases in attendance or changes in set-up or format.

Remember:

• Get specific about what space you need. When you agree to a meeting room for 25, you may be shown a square room with a great view and wind up in a room with low ceilings, pillars and no windows, if you don’t specify which room you want.
• Have your space documented in your agreement, by name, with your agenda. Also have it stipulated that any changes must have your approval and signature.
• DON’T FORGET that most venues use what is called a “Rooms to Space Ratio” to assess what you get and for how much. Here’s how it works: If you contract 50 percent of the venue’s sleeping rooms, you are entitled to use 50 percent of the venue’s space. If you only need a few sleeping rooms but an overabundance of meeting space, you may encounter space rental fees.

Deal breakers

Inevitably, there are deal breakers that will come into play for both sides. It may be rates, it may be the amount of space you want, it may be the concessions or no-charge services that you require or desire. This is where you start the give and take (negotiation) portion of the process.  In today’s economy, you have many options, but it won’t stay a “buyers market” forever. How you resolve these items will set the tone for the remainder of the contracting process.

Remember:

• Your venue contact wants you and your event to be successful.
• It is OK to “take a break” and think about what has been requested and offered in return. Taking a little time will often give both sides time to evaluate and come up with suitable options that will satisfy both parties.
• Always look at your options. Will another venue be more flexible or a better fit for your budget?
• If you have reached a stalemate with your venue contact and feel that you need to escalate your position, ask to speak with the Director of Sales or General Manager. In most cases, they will have the ability to make a decision and assist you in moving forward.
• It’s OK to walk away if you don’t get what you need or want … as long as you have another option. If you do, do so with class. You may find yourself back for another event in the future.

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These best practices relate to the basics of getting and resolving the dates, rates and space issues that are the foundation of your meeting or event agreement. These items are the framework around which the remaining contractual clauses will be built. If you have a simple meeting, it should be a simple contract. As your event/meeting needs grow, however, expect the page numbers to increase and the legalities to multiply.

In Part II, we’ll begin to look at the more complex contract details that you may encounter, such as performance clauses, including sleeping room shortfall (aka attrition), food and beverage, cancellation and acts of God (aka force majeure). Until then, have a great meeting!