The Devil is in the Details
Ask an Expert: Negotiation Tips from a Professional Event Broker
Negotiating contracts may not be the most fun part of the event planning process, but it’s certainly one of the most important. We chatted with Alix Mendonca, Director of Regional Sales at Prestige Global Meeting Source, to get some tips he’s learned in his 20+ years in the event business. As a broker, he helps planners find venues that fit their needs and assists with the negotiation process at no cost to them. Read on to hear his advice on what to consider before and during the contract consideration phase.
1. Research the Market
A crucial step begins before the contract stage, which is to research the area and compare rates at multiple venues. This will help you know the value of your business—one of the keys to smart negotiating, says Mendonca. For instance, if you know your event is happening during the high season for a hotel, you may need to book much further in advance to get a good deal. Or, if the hotel gets flooded on weekends, booking mid-week may give you more leverage.
This is where a Destination Marketing Organization (DMO) can be immensely helpful. Alternately referred to as tourism boards or convention and visitors bureaus (CVBs) depending on the region, these groups are comprised of tourism professionals who know the region inside and out. They don't represent any one venue but rather, aim to help visitors have the best possible experience. With a DMO's help, you can make the most informed decisions. When you take the next step of reviewing packages and contracts, you'll be armed with knowledge about competitive rates, travel patterns, and local happenings, so you can confidently negotiate.
Explore Seattle Southside is the DMO for the region directly surrounding SEA (Seattle-Tacoma International Airport), which encompasses the cities of SeaTac, Tukwila, and Des Moines. Our services are free, and we can work with the meeting negotiator to help you source event venues and accommodations based on your needs.
2. Don’t Assume Contracts are Fixed
“Everything is negotiable,” says Mendonca.
The key is to not only advocate for yourself, but to try to understand the venue’s perspective so you can figure out what will incentivize them to lower costs. For example, if the venue’s fee is beyond your budget, you could start by asking them, “What can we do to make this piece of business more attractive to you?”
For example, if you end the event at 5 p.m. rather than 10 p.m., perhaps the hotel could afford to bring the overall cost down as that frees up their space for the evening. Or, if you’re not super particular about catering, you could ask the venue what food & beverage has already been ordered on the day of your event. It's possible that another event has already placed a large order from a caterer or the hotel itself, and if you get the same items, you could save costs for both yourself and the venue.
3. Explore All Options
Aside from negotiating the terms of the package, make sure you understand all the policies outlined in the contract. That includes things like whether you can work with outside vendors.
“If it’s a union property, you may have a hard time bringing in your own A/V equipment,” says Mendonca. “But if you do bring it in, that could be a good cost savings.” Even if you decide to go with the venue’s equipment, you don’t want to be surprised about that later on when your budget has run low.
Another key question to ask is which rooms are multifunctional. If your budget is lean, you probably don’t want to book a breakout room that you’ll only use for one hour. Rather, ask the hotel about flex spaces and how you can get the most out of each room you book.
4. Utilize a Meetings Negotiator
If you’re not currently using a meetings negotiator (also referred to as a broker), it’s worth looking into for your next event. Brokers like Mendonca don’t represent particular venues or have any obligation or incentive to promote one hotel over another. Rather, they aim to help planners find venues that fit their needs and then negotiate the best possible deals.
“Our services are free to our clients,” explains Mendonca. “We get paid by the venues in the form of a commission which doesn’t increase the booker’s fee.”
You might wonder why a hotel would be willing to pay for someone who might help planners negotiate contracts down. That’s because they know they can make the process go more quickly and smoothly. They also know that brokers can help planners find venues they might otherwise not have known to consider.
5. Double-Check Everything
Last, but not least, don’t overlook the small stuff. While it may seem a bit obvious, Mendonca says it’s surprising how often people sign contracts without double-checking that the dates listed correspond with the actual event dates. “I’ve seen that happen many times,” he says. While it's easy to get lost in the fine print, it can be a rude awakening to realize at the last minute that the venue has been reserving your space for a totally different day than you intended. And, of course, it's crucial to make sure you're crystal clear on the cancellation policy. If it's looking unfavorable, that may even be another point you can attempt to negotiate.
Whether or not you go with a pro to help, contracts are a pivotal part of the event planning process, so be sure not to rush the process and get a second (or third, or fourth) set of eyes on the documents before signing. As the old-fashioned saying goes, “A stitch in time saves nine!”