Contingency Event Planning And Negotiating

The quality, detail, sophistication and process used when negotiating for any event, most commonly determines the level of success that might be anticipated. Details must include preparing for weather conditions, avoiding potential liability, dramatic change (either greater or less) in attendance (actual versus expectations), audio/ visual needs, food and beverage, etc. Many organizations, fearing that they are ill - prepared for negotiations, rely upon outside assistance from individuals or companies they believe will professionally handle their needs. Depending upon who they choose, and how clearly they communicate their needs, organizational ethic, etc., often determines their ultimate success. There are basically two prevalent types of event consulting organizations. The most common are companies who generally negotiate with many hotels for many organizations, and generally view their role as hotel room acquirer. This is not at all surprising, because these companies often easily find lowest generally given rates. They will help with contracts, etc., but since they are compensated (generally ten percent commission) by the room revenue, their main focus is on that aspect. The other type of event consultant works on a fee basis, paid to him by the organization, and focuses not only on room rates, but all the group's needs.

1. Many organizations automatically opt for the consultant who they do not need to pay, but is compensated by the hotel in the form of commission. Organizational leaders who lack event sophistication often falsely believe that this is the less expensive, less risky approach. What they fail to realize that because the hotel is paying a commission, they generally have less leeway to negotiate. Most hotels work on a net basis in determining their total revenue needs, so if they are receiving a net of less from the rooms (after commissions paid), they have to make up for it by needing a greater margin in other revenue bearing areas, such as food and beverage, etc.

2. The fee based consultant who is truly professional and comes highly recommended is one that will offer a guarantee of his services, in terms of the benefits, savings, efficiencies, and total package that the organization receives. They will get greater negotiating concessions, plan for contingencies, have everything anticipated and in writing in the language of the contract. They will know how to work with hotel 's executive chef to create menus that maximize what they can receive that works with their budget. They plan the details, always have backup plans, understand that one can't predict or control weather so has everything built into their overall action plan.

Groups that prepare the most and predetermine their needs maximize and optimize their chances for success. They determine whether they need outside assistance, and if they do, select one that best meets the needs of their organization.