Meeting & Event Tips & Traps

Many years ago I had a boss who was the ‘King of Clichés.” His office was filled with motivational or thought provoking sayings. I’d often sit and wonder…why? What was the point. As I got older and had more experience I realized it was not the saying, but how they applied to me…or YOU. Case in point.

In a recent conversation with a planner with nearly 20 years of experience, she commented that over the years she had created many templates, documents and tool. She stated that these would make everything come together easily and seamlessly. GREAT! I am all for that. As the program approached, I took the time to review, in detail, these templates and tools. Templates by definition are made to be modified and customized. These had not, and although they were technically complete, they did not contain the necessary level of detail necessary to ensure complete success.

Lesson #1 – Only use templates as a starting point.

• Often, it may take more time to modify a planning or contract template that it would be to create one of your won. Especially if the software program versions are not compatible.
• ALWAYS make a list of what you need to have included when using or modifying a template so you do not forget.
• Always allocate enough TIME to edit, recheck and check the math. Excel spreadsheets are famously wrong when you forget to check the calculations or forecasts.

Lesson #2 – Some Standardized Contract templates may be older than you are!

• If you or your company has a set of “standardized” agreements, take the time each time you use them to make sure that they are current and up to date. I had a client tell me he used an old addendum and inadvertently agreed to ridiculous attrition stipulations.
• Today’s economic times often nullify older contracts. Terms of past meeting contracts may not be applicable and may cost you in a big way.
• If you have signed a multiple year agreement, go back and review what the future may bring. Based on the current hospitality climate, you may be able to “update” upcoming events that were contracted in the past.

Lesson # 3 – Read, Re-read, take a break,  then look one more time

• Always look at any agreement first for major gaffs, errors or formatting faux pas. They should stand out.
• THEN, look at all the variables and make sure that they “jive.” Room night totals, dates and days, guarantees, misc charges, concessions. The only way that you will be able to walk away with your head held high when all is done is if you have protected yourself by making sure that all is in the document.
• LASTLY, put the document down for a while. Do something else, and then go back for one more look. You would be surprised how many times there are still one or two items that you need to change or that come to mind.

In closing, the morale of this story is that “You can’t expect what you don’t inspect!” If you assume it’s all there, you may get surprised. I still thank that manager with all the sayings on his walls. This one has saved me more times than I’d like to remember.

“This originally appeared on Plan Your Meetings (http://www.planyourmeetings.com), a free educational and social resource for meeting and event planners. For more meeting industry best practices, news, educational tools and advice, become a PYM Planner.” ( http://www.planyourmeetings.com/subscribe/)

“This  originally appeared on Plan Your Meetings (http://www.planyourmeetings.com), a free educational and social resource for meeting and event planners. For more meeting industry best practices, news, educational tools and advice, become a PYM Planner.” ( http://www.planyourmeetings.com/subscribe/)

 It seems that whenever I make a presentation the issue of attrition is always on people’s minds. Typically it is due to a recent episode where a group had fallen short on either rooms, food & beverage or both. Whenever I hear,  “How can I get out of paying it?”,  it is a constant reminder that preparation and planning before contracts are signed is a mandatory! Remember, attrition charges are part of the upfront contracting and negotiation process. Additionally, how you structure and specify how charges will be calculated and on what terms and conditions may could mean the difference between a few hundred and tens of thousands of dollars. Here are a few things to keep in mind:

• “The key to protecting yourself is in spelling out anything that can be “interpreted” rather than understood.”
• Be SPECIFIC!
• Use examples in agreements when calculating fees/damages or penalties

The only way to avoid paying attrition is to not agree to any “performance” clause in your contracts. In some circumstances, venues will agree to this. Overflow or last minute/short term business are good examples.

• Base damages on “profit” not revenue. Always specify that damages will be based on  the profit % of rooms or Food & Beverage, not retail pricing. This will save you up to 25% if you fall short.

• Carefully word your attrition/performance clause. Request the following items be provided at the time that your damages are calculated:
  1. Sold out conditions at the venue. If you are being charged for 50 rooms, were there 50 available? You may find that you were inadvertently being “double dipped” based on rooms available.
  2. Audit and credit for all in attendance staying at hotel regardless of rate.With the proliferation of the internet and the fact that some reservations may not have been identified as with your group, by providing a registration list, an audit may reveal that you had more rooms occupied in the hotel on the nights you were short.
  3. Cumulative not daily calculations. Always ask that any performance fees be based on the total rooms usage, not daily totals. This way a spike on one day will assist in compensating on others where your pick up may not be as strong.
  4. Any Credit for unused comps/free rooms. Specify/request that any unused free or comped rooms be credited toward your totals.

1. If this is a reoccurring meeting or event, or if you frequently do business with this property, request that you get a re-booking credit toward a future meeting. 

Do your homework. Gather your history. Planning is essential. Hotel agreements are crafted in favor of the venue. You can level the playing field and reduce your risk if you take the time during the contracting process to protect yourself and your company or client. Great meetings are profitable ones…WITHOUT ATTRITION!

Go forth, plan well and prosper!

All the best!

KJ