Negotiating the terms and conditions of a contract with a hotel can prove to be a minefield if you’re not careful. To ensure you know how best to handle the situation, Nikki Farr outlines her top tips to help PAs navigate their way.
To be honest, there are very few of us who like to read the small print – the pages of legalese that accompany almost everything we purchase or agreements we enter into. But contracts, particularly with a venue or hotel, should not be ignored or overlooked.
Follow these tips to help you negotiate the best contract for your event, whether it be a small board meeting, association networking event or a multi-day conference with team-building activities and evening entertainment.
• Successful contract negotiations usually begin with a comprehensive Request for Proposal (RFP), where the company outlines exactly what it requires from the venue in question. The more detail you can provide the hotel with the better they will be able to meet your needs.
• As a buyer, negotiate from a position of knowledge. Know what you want to buy. Know what is a competitive price for what you want and what your budget will permit. Keep in mind that negotiations should be viewed as a collaborative effort among professionals. Neither party should regard their relationship with the other as adversarial.
Honest and ethical negotiations are the best way to meet your organisation’s needs. Remember that the hotel has to make a profit on your business and, at the same time, you should expect to pay a reasonable price for the services that are being purchased.
• Contracts are written to protect both parties. Be transparent, as no agreement should be one-sided. It is there to meet both parties’ needs.
• Think ahead and be flexible. Start contract talks as far in advance as possible, as many hotels are eagerto lock in future business. Flexibility can produce significant savings. For example, a booker may initially want an event to take place on a Tuesday but will actually receive a better price if it takes place on a Thursday.
• Don’t be afraid to talk to the hotel about any changes or additions to the contract that you would like to be made. They may be willing to make modifications to their standard terms.
• Be very clear about cancellation fees. Any fee should be calculated on a sliding scale so a lower fee would be payable if cancelled two months out, with a substantially larger fee if cancelled days before. Remember that what a hotel is selling is a facility for a given period of time; if it doesn’t sell its conference room today, it can’t sell it twice tomorrow to recoup the lost income.
• Negotiations are not just centred around the price you pay. The hotel may be able to offer upgrades for your VIP guests oradded extras instead of discounts, so do think about what options you may be interested in.
• Don’t pay for things you don’t need. Find a hotel that is flexible in its approach and tailors events to your requirements.
• Aim towards building a long-term relationship – hotels want clients to return on a regular basis and you want a partnership with a hotel that you can trust to deliver excellent quality and service time after time.
Nikki Farr is Sales Director of independent hotel group Four Pillars Hotels, which operates six properties in Oxfordshire, Gloucestershire and the Cotswolds, with an inventory of more than 900 rooms. The company’s philosophy is that it “does the simple things well” – essentially a no-fuss approach to quality hospitality, offering comprehensive facilities together with swift and friendly service at competitive rates. For further details on its ‘Meetings Four You’ package visit meetingsfouryou.co.uk
