Negotiating a group hotel contract is more than just securing rooms at a competitive rate—it’s about leveraging the right concessions to ensure your event runs smoothly and stays within budget. From flexible attrition clauses to discounts on food and beverage, the terms you agree on can dramatically impact the overall success of your event. Here's a breakdown of the most important concessions to negotiate and keep top of mind when you're planning a group event.
1. Attrition: Build Flexibility into Your Contract
Attrition refers to the minimum number of rooms you guarantee you’ll fill. If you fall short of that number, you could face penalties. To avoid this, you need flexibility. The standard attrition rate for many hotels is around 10% cumulative or 15% daily, but if you’re negotiating for a larger group, aim for 20% cumulative. This gives you the breathing room you need to account for last-minute changes and no-shows.
Additionally, make sure you’re securing 1 comp room for every 35 rooms booked—ideally. If you’re stuck with a deal offering 1 comp room per 50 rooms, try to negotiate better terms based on the scale of your group. The more flexible you are, the less stress you’ll have if (and when) the numbers shift.
2. Discounts on Audio-Visual and Food & Beverage
AV and F&B costs can skyrocket quicker than you think, so securing discounts here is a must. Standard discounts range from 15%-20% off AV services and 10%-15% off food and beverage. If you’re working with a large group, you may be able to get even better deals. These are the areas where you can save a significant amount of money while still delivering a great experience for your attendees.
It’s essential to secure these discounts upfront—AV and F&B often account for a large chunk of the budget, and any reduction here will have a lasting impact on the overall costs and satisfaction of the event. Push for these discounts as part of your standard terms, and make sure they’re included in the final contract.
3. Staff Rooms & Resort Fees: Don't Forget the Basics
Whether you're managing an event or leading a team, securing discounted or complimentary staff rooms is key to managing your budget. The number of staff required will vary depending on the size of your event, so be clear about what your team needs and make sure you ask for discounted rates.
Additionally, don’t let resort fees sneak up on you. These extra charges can often go unnoticed, but they can add up quickly. Push for waived resort fees or at least discounted rates for your group. Every little bit helps, and it’s an important part of negotiating your contract to reduce unexpected costs.
4. Upgrades, Welcome Amenities, and Spa Discounts
Everyone loves a good upgrade, and when you’re planning a large event, those small touches matter. Ask for room upgrades based on the block size you’re committing to. Depending on the scale of your group, you could secure better rooms for key attendees or team members, which can enhance the overall experience.
Also, consider welcome amenities for executives. These could include high-end gift baskets, local treats, or branded swag—anything that adds a personal, thoughtful touch to your event. Similarly, negotiate spa discounts (10%-20%) for your group members. After a long day of activities, a relaxing spa treatment is often a great incentive.
5. Complimentary Wi-Fi and Reward Points
In today’s connected world, free Wi-Fi for your group should be non-negotiable. This perk might seem basic, but many hotels still charge for internet access. Insist on complimentary Wi-Fi for your attendees to ensure everyone stays connected throughout the event.
On top of that, if the hotel has a loyalty or rewards program, don’t miss the chance to earn 2-3x points for your group’s stay. These points could be used for future events or travel, making them a valuable asset for you or your organization.
Negotiation Is Key to a Successful Event
When negotiating a group hotel contract, it's all in the details. The right concessions—flexible attrition, discounts on AV and F&B, staff rooms, upgrades, and free Wi-Fi—can significantly improve your event experience while keeping costs in check. Don’t be afraid to ask for what you deserve. A solid negotiation will not only save you money but ensure that your event runs as smoothly as possible. So, when you sit down with the hotel rep, remember: these are the terms that can turn a good event into a great one.
