Moving hotels? Negotiate the contract, not just the room rate

Your annual conference has outgrown its hotel, or the board wants a different part of the state, or the contract is up and the renewal terms aren’t what they were. Either way, next year’s event is moving, and the hotel you pick will shape the budget, the program and how attendees feel when they walk in.

A move feels like a risk. It is also the one moment each cycle when everything in the hotel contract is open again. Handled well, it can be where an association saves the most.

Here is how we approach a move when we run one.

Put more hotels in the running than feels necessary

The best deal is rarely at the first hotel you think of. Hotels price groups on how badly they need your dates, and you can’t see that from the outside, so the only way to find out is to ask a lot of them.

Send the same request to every hotel that could fit the program, including a few you would not have considered. Give each one the same details: dates and any flexibility, peak room nights, meeting space by day, meals, audio visual needs and budget. Then lay the answers side by side on one sheet, so you compare the full cost, not the room rate alone.

Narrow it to two or three finalists and walk them in person, with the program in hand. A ballroom that looks right on a floor plan can have pillars in the sight lines or a long walk to the breakouts. Touring two finalists also tells each of them you have a real alternative, and the next round of terms usually shows it.

Negotiate the contract, not just the rate

The room rate gets most of the attention, but the larger savings usually sit elsewhere in the contract. Before you sign, work through each of these:

• Meeting room rental. Often it can be waived entirely when the group fills enough rooms and meets its food and beverage minimum.
• Food and beverage minimum. Ask for it to match what you actually serve, not the hotel’s opening number.
• Attrition and cutoff dates. Push for a release date close to the event, and a review point where you can reduce the block without penalty.
• Fees. Resort, destination and parking fees add up for every attendee; ask for them waived or reduced.
• Concessions. Complimentary rooms, staff rates, suite upgrades and amenities for speakers cost the hotel little and are often given when asked for, especially when the hotel wants your dates.
• Audio visual. If the in-house provider is required, negotiate a discount off its list prices as part of the hotel contract, before you sign.

On events we run, the list of concessions is often longer than the client expected. They are rarely offered first; they come from asking for each one.

Size the room block on history, then watch it

A block that is too large leaves you paying attrition. One that is too small sends attendees to other hotels, and the rooms they book there no longer count toward your block, or the complimentary rooms and meeting room rental tied to it.

Start from your actual pickup over the last few years, not your registration total, and look at which nights people really stay. If you are moving to a city where more attendees will drive in, expect fewer room nights per person. If it is farther away, expect more.

Then check pickup reports on a schedule, monthly at first and weekly near the cutoff. If the block is filling early, ask for more rooms while they are still available at your rate. If it is slow, a reminder to registrants before the cutoff usually does more than a discount.

Get a second look at the audio visual quote

Audio visual is one of the lines that most often comes in high. The first quote is usually built from a standard package, not your program.

Go through it room by room. Do the breakouts need projectors, or will screens and laptops do? Does the general session need the full lighting package every day? Are labor hours priced for what the crew will actually do? Ask for an itemized quote, and get a comparison from an outside provider even if you expect to stay in-house. It changes the conversation, and the final number.

Make the new city easy for attendees

A new hotel brings new questions: where to park, how to get from the airport, where registration is, which ballroom the opening session is in. Put the answers in one place before attendees ask.

An event app works well for this. Registration, the hotel booking link, the agenda, meals, dietary needs and maps can all live there, and you can send a push notification when a room changes. Short emails in the last two weeks before the event, each with one topic, do the rest.

Plan the next move from this one

Keep the comparison sheet, the contract notes and the pickup reports. Next time the conference moves, you start with a list of hotels that already know your group and a clear record of what you got last time.

That is a big part of why 75% of our clients return year after year. If your conference is moving, or the current contract is coming up for renewal, we would love to help you find the right fit. You can see more of our work on our Past Events page.