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Contracts: Read Before You Sign

April 29, 2025

Contracts. They aren’t the glamorous side of meeting planning, but without them your entire event could fall apart.

During the recent Global Meetings Industry Day (GMID), planner Cheryl Payne, CMP, CMM, a Strategic Partner at INNOV8 Meetings & Events, offered some common-sense advice and addressed some of the most common planner questions.

“Contracts are all about finding common ground,” she notes, describing the process of drawing up a contract as “two sides with different perspectives, trying to come to an agreement.”

During her presentation, Payne identified the typical issues planners face when structuring, negotiating and executing hotel contracts: High pricing, inflexible terms, lack of room availability, attrition clauses and hidden fees.

“We all have to be very careful
in what we’re agreeing to”

Costs & Fees: Avoiding Unpleasant Surprises

When it comes to cost, Payne advises planners to specify pricing and address all hotel fees and surcharges up front. Better yet, ask for a surcharges summary.

“This can be a huge cost-saving item when it comes to resort fees, destination fees, service fees and gratuities,” she says. “Working with a strategic sourcing partner can affect your bottom line as well.”

For planners wondering how they can negotiate better rates, Payne says research is key.

“It’s important to do your market research to see what other hotels in the area are offering, and then you can negotiate these against each other,” she notes. “It’s the hotel’s goal to maximize the full revenue. They want to know what kind of revenue you’re going to provide in rooms, dining and services.”

“It’s the hotel’s goal to maximize
the full revenue”

During negotiations, Payne suggests that planners offer a multi-room agreement and to consider increasing their room blocks.

“Just be sure to compare multiple bids,” she says. Payne also recommends shifting arrival and departure dates to more economical options, saying that “if you shift your arrival date from a Sunday to a Monday for example, it could reduce your rate.”

The Pain of Attrition

What’s the best way to handle attrition clauses? Attrition clauses are based on hotel’s lost revenue and your damages, Payne says.

“Generally, the percentages of a hotel’s lost profit range 73 percent to 85 percent. Try to negotiate your damages versus the lost profit into the contract,” she says, adding a few pertinent tips:

Have your attrition waived if the hotel sells out
If a hotel has to walk one of your attendees, have the attrition fee waived
Add a review clause to your contract

How can you ensure availability without a long-term commitment? “Ask them if they’d be willing to do a courtesy block, or request a first right of refusal clause,” Payne says. “There are many ways to work with a hotel.”

Force Majeure: A Major Problem?

The unforeseen happens. So what should you look for in a force majeure clause?

“We all have to be very careful in what we’re agreeing to. Include pandemics, epidemics and travel disruptions,” Payne says. She also advises tailoring the clause to fit your group’s particular needs.

“For example, if you’re a government group, include government shutdown in the clause,” she says. “Always ask for deposits to be refunded. Read every single word in your hotel contract and your force majeure clause.”

Reducing F&B Sticker Shock

When negotiating F&B costs, Payne also recommends a tailored approach by tying food and beverage to your agenda and meal plans, not generic spend expectations.

“Be realistic about your consumption. Ask for flat pricing for your group and ask for additional discounts,” says. “This is a continuous item discussion with your hotels.”

To maximize your F&B budget, Payne has some tips:

Get guaranteed pricing
Consider buffets instead of plated meals
Offer grab-and-go meals
Ask hotels if they’re buying in bulk and passing on those savings
Ask for F&B enhancements such as comp daily meals

“Working with your hotels and being a good partner
is all part of the process”

Important Takeaways

Payne’s most important takeaways?

Always read the fine print
Negotiate for flexibility
Maintain good relationships

“After you sign you’re begging. Before you sign, you’re negotiating,” she says. “Understand your agreement and the terms you’re getting your organization into. Working with your hotels and being a good partner is all part of the process. Have open and honest conversations with your hotels.”