Contract Negotiation
Financial Liability
Until an organization’s monetary investment or image is compromised, the liability of holding a meeting often goes unnoticed. Hotel contracts are one of the most significant factors in determining the financial success of any event. The negotiation of these agreements is often left to individuals who have many other responsibilities. Most lack the time, experience, and stomach required to achieve optimal outcomes. If negotiating is not their primary job function, it can be intimidating – especially in today’s ever-changing environment.
Pitfalls of Hotel Agreements
Hotel contracts are complex, difficult to understand, and typically one-sided. More often than not, it is what is omitted that represents the greatest liability. Room rates and concessions account for only a portion of the financial risk. Until you have been hit with hidden costs, participants booking outside your block, embarrassing internet rates, or heavy attrition damages, you may not have realized how much liability a hotel contract actually represents. A hotel contract rarely includes language that protects you should the hotel breach or cancel your event. A good contract is where all parties are equally protected.
Not all Agreements are Alike
An agreement that was designed for one meeting in the same organization should not be relied upon to adequately address the needs of another. The liabilities inherent in agreements where participants are paying for their own rooms are different from one paid for by the organization. Each contract should be custom designed to account for the nuisances of that individual event.
Skillfully executed negotiations can increase efficiency, create savings and reduce risk. Hotel contract negotiation requires experience, skill, and patience. It should be specific, clear, and address every eventuality even if the likelihood of such an occurrence is improbable. Hotel contracts should be viewed as a work order. That way, each party knows exactly what to expect in any situation. In addition to an attorney, it is important to have a knowledgeable industry expert with a deep understanding of hotel profitability, industry trends, and best practices to assist in the negotiation of your contract. At Thallo, we help our clients think through possible challenges and help them mitigate potential liabilities by plugging the gaps.
Is your contract being negotiated by a senior executive with over 30 years of experience in hotel contracting and mitigating damages? At Thallo, it always is.
Do you have a major meeting or conference coming up?
Fill out this form or give us a call to get the conversation started. You can alternately upload your RFP or download our template to fill out. The choice is yours.