Joan Eisenstodt answers additional questions from the 08.31.16 Contracts: Accommodations webinar.
Q1: Some hotels will only offer ROH. Is there a better way of getting the room types you need?
A1: It depends—on your needs, on their availability, and what you are willing to pay, give/give up. Part of the reason is that hotels don't know what their inventory will be on a particular night because of occupancy so guaranteeing your entire block of a particular kind of room is tough.
BUT in your RFP if you specify, say, that you need x number of California Kings (as an example) because you are housing a basketball team, it might be more negotiable.
Q2: Is there a standard attrition percentage? Our association normally negotiates 80%.
A2: As noted in the webinar, there isn't. It all depends on the particular meeting, market, what's negotiated and all the other considerations. Look at the overall picture of what's best for you and negotiate with your needs and the hotel's in mind.
Q3: I recommend making sure it states whether attrition is either daily OR cumulative. This is different.
A3: Thanks. It is—just as cumulative on pick up is critical, attrition noted per night or overall matters. And it does too on whether it's on the peak nights or all nights or ??? whatever you negotiate! Who said this wasn't brain surgery or rocket science?!?!
Q4: To answer your question about the 3 days pre and post; this concessions is typically 3 days prior to the first dates of the contracted block and 3 days from the last date in the group block. - Katherine Ellis, Rosen Hotels & Resorts.
A4: Tyler wrote: Thanks Katherine. You work for a great hotel company. I had a chance to interview Mr. Rosen a few years ago or so and he's an amazing, charitable person. Joan adds: I concur re Harris Rosen—what a mensch! And for your hotel, it may be “typical” but it's not an industry standard which is why I like spelling out the dates. Thanks for being part of the webinar.
Q5: Is there a sample RFP we can see laying out all these detailed questions?
A5: I have one that badly needs to be cleaned up. If you use the contract negotiation checklist (on the Meetings Today website now) you can get a good idea.
Q6: Is it legal for a hotel to charge the service charge (i.e., the 22% - 24% added to F&B) to the cancellation charges?
A6: As noted, it depends on the state laws. Check with the state department of taxation to learn more.
Q7: Have you utilized city occupancy rates in your negotiations, and have you found a current centralized repository for city OCR's?
A7: I used to and haven't for a long time because it's sometimes skewed by city-wides or festivals or other events in a particular year. Have you found it works?
Q8: When you get to ATTRITION, hotels are now often specifying “per night” attrition versus cumulative … thoughts?
A8: See above comment from a participant and my agreement that it should be cumulative … generally … though I could probably make a case for per night for either side! This is the tough part of negotiations—everything is so meeting- and property- specific.
Q9: If a guest is able to get a better "company" rate than contracted rate, but still staying at the hotel—should there rooms be included in our room block numbers?
A9: Linda—if I understand the question … if someone stays outside the block during a meeting at their corporate rate versus the negotiated meeting rate, should the group negotiate an audit to receive credit for those rooms? I think the group should try!
Q10: I just stayed at a DC hotel that had a “women’s floor.” Is this something you are seeing, and do you suggest blocking rooms on this floor if you know you have single women in your group?
A10: I've read that a number of hotels are doing this and I don't have a good answer for this! It is also related to hotels being or not being able to negotiate a number of a particular kind of room for your block because they won't know their occupancy.
IF those rooms are available and IF you think people will reserve them and you want to guarantee x number, you can try to negotiate it and offer these rooms on a "first-come" basis based on the hotel's availability (Did the hotel offer that to you at the front desk at check in?).
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Bonus Questions on Contracts: Accommodations
Q11: Have you seen more attendees using something like Airbnb, effecting your room blocks?
A11: As noted in the webinar, anecdotally, yes for use but no, yet, for impacting block. I think that some people attending meetings need, because of their own company's policies, the best available rate, and others want to be where everyone else is since so much of the learning at a meeting is … informal and in the lobby and elevator. I think groups will have to watch closely and ask their participants where they stayed and why if outside the block to get a handle on what.
Side Comment 1: JOANIE! It's Dianne. I didn't know you were doing this. I love it. OK—back to watching and listening-learning from the Sage!
SR1: LOL! Had I seen this, I would’ve done a shout-out! Thanks for being there!
Q12: Do you have any tips in working with lower level hotels that do not offer detailed contracts?
A12: Grr … It's not just “lower level” hotels—there was a move by some of the major brands to go to “simplified” contracts! I explain why I want everything spelled out: it protects all the parties to the contract in knowing up front who has what responsibilities. You might do what I've done: work with an industry attorney to develop your own contract template to present to blend with the hotel's and again, “fair-fair,” (Should I trademark that!?).
Q13: I tried getting the info from ESPA but it said you had to be a member to get it. Do you know if that changed?
A13: Email info@espaonline.org and they'll send it to you.
Side Comment 2: Great presentation, thank you!!
SR2: Thank you! And for being there.
Q14: Cancellations of contracts are always very costly to a company, other than getting 50% of total contract towards an another meeting within 1 year, is there anything I should look at negotiating?
A14: Cancellations are costly for hotels too—especially if they can't book other business that is comparable (not just rooms but F&B and ancillary revenue like AV, etc.) too. If you know your history and think there are reasons you might cancel [the first case in which I ever testified as an expert witness was a corporation that booked and canceled the same meeting 3 times at the same hotel because the planner forgot to check the dates with her CEO!], disclose that up front and talk with the hotel. IF it's owned by a company that has other hotels elsewhere, you might be able to negotiate a meeting in another hotel. You can try to negotiate a resale clause to help the hotel be “whole.”
Q15: Where can I find a RFP example for Exhibit Hall decorators?
A15: I'd try IAEE or ExhibitorMagazine/ExhibitorLive for more.
Q16: Do you generally include performance guarantees? I.e. response time from hotels is often very slow. Outline—Respond to emails within 2 business days.
A16: I have negotiated lots of different performance clauses—for things that we covered in this webinar like housekeeping or bell or front desk service, as well as CSM response time, billing, and others. In your RFP, explain your needs and expectations. Read the hotel's website to learn their service guarantees. Negotiate and then together write performance clauses. The tough part is what is “reasonable compensation” if it's not met and under what circumstances.
For example, staying within the webinar topic: let's say you have an executive staying in a suite and the suite needs to be cleaned more than 1x/daily. You've negotiated that and it's in the contract but there's force majeure (a snow storm perhaps) and the housekeeping staff is only at half because they can't get in, is it reasonable to expect the hotel to compensate the group?
That's a call you and the hotel make along the “fair-fair” lines.
Q17: Can you talk a little about “relocations” or walks?
A17: I did in the webinar. Did that answer what you needed?
Q18: I know at least 1 major hotel chain has started calculating attrition each night (i.e., if we contract 100 rooms for Fri & Sat nights, and only pick up 60 rooms on Friday, but 150 on Saturday—we would still owe attrition on 40 rooms for the shortage Friday night).
Is that something that you've seen in more than 1 hotel chain?
A18: Someone else asked that and I responded above. It's understandable why hotels do this and it's understandable why groups don't want it! You might discuss/negotiate what happens if you exceed your block on any night and it can't be accommodated, or what to do if you exceed on some nights that they can accommodate, will they, and what to do if on other nights your pick up is less. It's all a negotiation.
Q19: What is your definition of “available”? For example, your room block cutoff date has passed, an attendee tries to make a reservation and is quoted an astronomically higher rate. Do you have a clause you use to clarify availability? I usually try to get "rate availability" out of there and go with "if a room can be reserved then it is available,” but do not always succeed.
A19: Smiling at this—it depends and it won't matter what my definition of "available" is—it is what is negotiated and contracted. It could mean any rooms at all for sale in the hotel that are not held for airlines or specific groups. Hotels want to sell out each night and will do what they can to do so. It's not unlike someone calling at the last minute and getting a rate astronomically lower than rack or your group. It's all a bit of forecasting and negotiating.
Q20: Can you please show the first resources page again?
A20: They are in the handouts at the webinar site.
Q21: What verbiage do you use to explain to a hotel that attrition is the slippage? I keep getting contracts that say they will give 80% attrition and what they mean is 80% pick up and 20% attrition.
A21: I know! Just ask them to write it that way.
And finally, some adoring praise/final comments directed at Joan Eisenstodt.
P1: “Thank you!”
R1: Thanks for being there!
P2: Thank you. I can listen to Joan talk on this all day, every day!
R2: SMOOCH!
P3: Thank you!
R3: Thanks for being part of the webinar.
P4: Can't wait for the app-tastic presentation with Jim Spellos!
R4: Me too! I love Jim and could hang out with him forever.
P5: Thank you! Excellent information!
R5: Thank you.
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