Since we can’t get to all of the questions submitted by webinar participants, we’ve posted 10 that weren’t answered during the program. Thanks to our presenter for volunteering to field all of your important queries from “Webinar Land!”

Sincerely,

Tyler Davidson
Editorial Director
Meetings Media

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Question:

What is your opinion on standard contract addendums for corporations? Should they be incorporated into the main contract body or would you leave it as an addendum?

Answer:

I, personally, don't believe in standard contract addendums unless they contain a provision for changes and/or renegotiation of the terms originally agreed upon to address changes in economic conditions, changes to/at the venue and/or its management, or changes to and/or within the meeting sponsor's company.

I write and customize all of my own contract addendums as they relate to each and every meeting I book, keeping them completely separate and on my own letterhead but attached to each hotel contract. This avoids any possible misinterpretations or typographical errors.

Question:

Do you have any suggestions on how to most effectively use your time when negotiating contracts? What should you point out/request right away to avoid lengthening the time it takes to negotiate from start to finish?

Answer:

1. Ask for the contract by e-mail.
2. Review the contract carefully and thoroughly. Make your changes, additions and deletions in red ink; cross out in blue ink, and then return the contract to the hotel.
3. Be totally prepared with your strategy for the negotiation when the hotel calls and be able to justify your contract alterations clearly, simply and fairly.
4. Start at the beginning of the contract and go through each change methodically to the end.
5. If you hit a roadblock, put it aside until the end—it may become easier to resolve at that time after other negotiation has taken place.
6. Contract negotiations are much too important to rush—they represent serious financial responsibilities and liabilities.

Question:

I have an Orlando hotel that is not approving our proposal of bringing three events to their hotel in 2009. They have all of the dates available, but they do not want to release the March date because they think they can get a bigger fish. Any suggestions? I have explained to them to look at the whole package, but to no avail.

Answer:

I would go to another hotel, as I know there are a number of other hotels in Orlando that would welcome your business. A hotel that informs you that they have your dates but your meeting doesn't come up to their standards is doing business in an unwise and unethical manner and not worthy of your patronage. It's their loss, not yours.

Question:

What specific change have you heard about regarding the new buyer's market?

Answer:

It seems that due to the state of our economic conditions at present, hoteliers and planners have become more interested in working together diligently in order to adjust, re-evaluate and become more creative and innovative in today's market to increase the chances of securing and placing business in a more affable and efficient manner.

Question:

What are some of the things one should definitely not do when negotiating to book a meeting?

Answer:

• Never reveal your meeting budget figures.
• Don't be unreasonable with requests for concessions.
• Don't be intimidated—do your homework and deal from strength.
• Don't misrepresent your requests.
• Don't overestimate your needs.
• Never be adversarial.
• Never give in to something you perceive to be unethical.
• Never give up a desired concession unless you receive another in return.

Question:

What is the No. 1 item negotiated on a contract?

Answer:

While attrition, cancellation and termination clauses are frequently mentioned as the most important items negotiated on contracts, it is my opinion that every clause that is negotiated or that appears in a contract is important, as they all carry a liability of one kind or another.

Question:

If a hotel says they cannot accept your group because you require too much meeting space compared to the size of your room block, is there any way to negotiate around that?

Answer:

Probably the most effective way to deal with this is to be as flexible as possible with the dates of your meeting in order to allow the hotel to determine when they can best accommodate your event. To be fair, hotels are constantly having to put puzzles together to be able to please everyone, and if you are flexible in this way, they will look at your request more favorably. In addition, if you have a good, firm business relationship with the particular hotel, or if you're able to work with the hotel's national sales rep for your area, that might be helpful as well.

Question:

Any recommendations on renegotiating the second year of a multiyear contract that was signed during better economic times?

Answer:

Of course, I don't have all of the appropriate information needed regarding your contracts, but ordinarily it would be possible to try to renegotiate certain terms in the contract in regard to the recent extraordinary events that have taken place in our world, through an addendum to the contract that is agreed to and signed by both parties.

Question:

What contingencies should be in multiyear contracts?

Answer:

There are several, of course, but one of the very important ones is the right for the group to cancel without liability within 30 days following the last day of each year's meeting if the group is dissatisfied with the service or performance levels of the hotel, or if the group's anticipated needs for guest rooms and/or function space, equipment or service levels for the following year or years are more than the hotel can provide. (Of course, the hotel should have within 15 days or so of the cancellation submission to propose a plan for improvement or alternative arrangements that are agreeable to the group.)

Question:

What are the typical concessions any hotel would give? How do you know what else you can ask for above and beyond if you are continuously working with the same hotel chain?

Answer:

When hotels give concessions to a group, they're usually based upon the amount of revenue the group will bring, the size of the group, the amount of revenue drivers the delegates typically use, the amount of business the group brings to the hotel annually, the desire to obtain more business from the group annually, etc.

There's an old adage: "If you don't ask, you'll never know," and this relates to concessions and everything else involved with meeting planning. Read industry publications, listen to webinars and talk to other planners and hoteliers to ascertain what's possible.