How to Negotiate Hotel Contracts for Your Own Event

Many factors come into play when renting a spacecan be quite high. The second challenge is the
for your event. For now, we are going to focus ondeadline. Normally, a deadline for people to use the
hotel contracts, because hotels are still the mosthotel block is two or three weeks before the event.
popular and profitable place to host an event.Most people procrastinate and book their hotel room
When renting a space at a hotel, you will first speakat the very last minute, which could cause you to
to the Director of Sales for that hotel. The Directormiss your numbers. In turn, you have to pay for the
of Sales will personally meet with you. Takerooms not used. This is a real gamble. As a result,
advantage of the fact that this person will treat yousome promoters have gone as far as giving hotel
to lunch if you meet at lunchtime. This gives you anrooms away for free as an incentive for people to
opportunity to sample the food in case you want toattend their events.
add food to your event.3.     Meeting room.
When you meet with the Director of Sales, you willIf you don’t want to gamble on the food or
have several points to negotiate, such as the price ofhotel rooms, you can always negotiate the price of
the meeting room, banquet costs, and booking hotelusing the meeting room directly. If the room alone is
rooms.$250, ask for a break of $200. If the room is $2,000
Meeting Spaceor more and you are inviting hundreds of people to
The size of your audience will determine the size ofthat hotel, negotiate a lower meeting room rate. For
the room required. The average hotel meeting roomexample, in the contract you could state that if you
ranges from $200 to $1,000 per day. Ballrooms thatbook a certain number of rooms, the rate becomes
hold hundreds of people range from $1,500 to $5,000$1,500 per day.
per day. There are three ways to reduce the priceWhen working with the Director of Sales, remember
of the meeting room or even get it for free.this person’s job is to book meeting and hotel
1.     Food.rooms and bring in banquet services. He or she has
If you guarantee a certain amount of banquet coststhe power to get you what you want. Other
at your event—in other words, if you add foodbargaining chips could be free afternoon cookies and
(breakfast, lunch, snacks, and dinner), you can lowercoffee, free room supplies, such as flipcharts, or
the price of the room or possibly get it for free. Theeven extended check-in/check-out times.
problem with this is if you do not make the promisedHidden Money
dollar amount in banquet costs, you have to make upEver wonder why Event Planners insist on negotiating
the difference, and this could be quite costly.the hotel contracts for you? Because, there is hidden
2.     Guest sleeping rooms.money in it. It’s called points. Each hotel chain has
Another way to reduce the meeting room rate is toa system for tracking points. It’s similar to
book a block of rooms. This technique works great iffrequent flyer’s mileage. Even though it’s
you are promoting a large event in which people willyour event, your event planner takes the points!
be traveling from out of town and need to stay in aNow you know, and you can sign up to receive the
hotel. The problem with this method is that yourpoints even if you use an Event Planner. Ask your
hotel block is usually set by the Director of Sales andDirector of Sales to sign you up.