By Scott Reagles

Contacts

Have a list of those people you will be dealing with on site and their phone numbers. Make sure those people know how to contact you or those working for you. Also, make it clear to everyone involved who is in charge and who has authority over what.

Schedule

Make sure your AV provider has a detailed schedule, including times for the following: start and end of each session; when doors are open for the audience; meetings, rehearsals and walk-throughs; and any other times that AV crew or equipment will be needed. Also helpful are schedules of other vendors or crews that might cause any conflicts.

Load In and Load Out

Conditions for loading in and out are
important, especially when it comes to dock space and traffic. Too many companies on the dock at one time can lead to chaos. Also, room availability, amount of time required for set-up and strike, and the availability of in-house personnel
such as electricians and technical people
is important.

Room Dimensions and Details

Make sure the room where your event is going to be held is big enough for the attendees and all the equipment. AV gear takes up space, not just on the floor, but also in the air. Make sure you account for ceiling obstructions such as chandeliers, ceiling coves, air ducts and so on. How and where the audience is seated will also make a difference in what kind of AV gear should be used.

Power

Check to see if arrangements have been made for needed power drops and electrical service, keeping in mind that they are rarely free.

Facility Requirements

Many facilities have special requirements, such as putting covering over carpets, use of hallways and elevators, or hiring security personnel. Ask a venue if they have any such requirements and get them in writing.

Union Requirements

Find out if your event is in a union-contracted facility. If so, take time to know the rules and budget accordingly.

Speaker and Talent Requirements

Ask talent and presenters for their needs and requirements well in advance. This may include Internet accessibility, specific types of microphones to use, someone to operate a PowerPoint presentation and so on. Oh, and pass that information along to your AV provider.

Changes, Add-ons

Changes and add-ons are inevitable. Keep a detailed record and, if possible, get sign-off when it comes to changes. Confusion later just costs money and causes headaches.

Contract and Payment

This may sound trivial, but make sure you have a contract, that you know what the payment terms are, and that you understand what is included and what is not. Ask questions and get answers before your event.

Scott Reagles is a production manager and video director for IPG (Initial Production Group), based in Denver. He focuses on bridging the gap between clients and technology. You can reach him at scott@initialpro.com. IPG is a full-service production company that has been serving the faith-based market for more than 20 years.

By Monica Compton, CMP

We’ve all heard the term “meeting planner perks.” It can refer to the non-event industry’s view of a planner’s life: luxurious stays in posh settings, business class airline seats and hard-to-secure reservations at a celebrity chef’s restaurant. In reality we know that those perks, if ever received, are rarely used, turned over to VIPs or often wasted. After all, do event planners in a fast-paced industry with an expected 24-hour availability to their organizations’ needs really have time to take a vacation?

For those who do, complimentary hotel stays and airline upgrades seem to be a well-deserved reward for spending 12 hours on the trade-show floor, lifting heavy boxes and not having enough time to eat. While hotel loyalty programs were created more than 25 years ago for frequent travelers, the concept of tailoring a program to target meeting planners is at an all-time high. In a lumbering economy, hotels are looking to entice planners with complimentary hotel nights, discounts on group meals and credits to their meetings’ overall bills.

Starwood Hotels and Resorts Worldwide customized its Starwood Preferred Guest program, the hotel group’s original rewards program for frequent travelers, and created a Starwood Preferred Planner program. Planners just don’t get points; they get Starpoints, implying a higher level of benefits for meeting planners over leisure or business travelers. The program is further expanded to offer Instant Meeting Awards, the ability to get up to a $1,500 credit on your group bill as long as you are a Starwood Preferred Planner with 15,000 Starpoints (and, of course, a signed hotel contract must be in place). But there’s a terms and conditions catch to get meeting planners to book with Starwood again. Starpoints earned for the group’s current meeting may not be redeemed toward that meeting. So if you haven’t reached 15,000 points, you’ll have to wait until your next meeting to earn the group bill credit.

InterContinental Hotels Group (IHG), the first company to introduce hotel points with its Priority Club Rewards for Holiday Inn in 1983, has also created a planner niche for its program. With the addition of one word to its title, the Priority Club Meeting Rewards becomes a program that awards planners for “qualified” meetings. Reading the fine print is also essential here. Planners must have a minimum of 10 rooms occupied in their block from a minimum of one night up to five consecutive nights depending on the brand in IHG’s portfolio of hotels. InterContinental and Crowne Plaza have an additional requirement that meeting-related food and beverage charges must be applied to the master bill.

IHG further adds the perk of giving planners different status levels depending on how many meetings they book. Similar to an airline’s status ranking, IHG bestows Gold Elite status to planners who host one qualified meeting in a calendar year and Platinum Elite status to those hosting two meetings per year. The benefits of status range from the gold level’s 10 percent bonus in points and priority check-in, ensuring your room and keys are ready upon arrival, to complimentary room upgrades and a 50 percent boost in bonus points at the platinum level.

Marriott’s Rewarding Events program also offers levels of elite status and allows planners to choose between hotel points and airline miles. For every $1 in total meeting charges, planners can earn three hotel points up to a maximum of 50,000 or 1 mile up to a maximum of 15,000.

Marriott’s limited-time Meetings Matter group promotion adds contract incentives and bonus points to its base
rewards program. For each meeting with at least 50 cumulative room nights booked and held by Dec. 31, 2010, a group will receive: 35 percent allowable attrition, one complimentary room night for every 35 paid rooms, and a 2 percent rebate off the master bill for each qualified meeting exceeding 100 cumulative room nights. This promotion also adds triple points for master bills paid with any Visa credit card up to a maximum of 150,000 total points.

Marriott, IHG and Starwood have all received Freddie Awards, honoring the best frequent traveler programs throughout the world for the last 20 years. Receiving an award by giving travelers rewards confirms the industry’s intense focus on points. But for meeting planners who are bound by industry guidelines and organizational policies, does redeeming points for personal gain step dangerously close to the edge of ethics?

Many of these points programs focus their advertising on the individual benefits rather than what the group receives. Marriott’s Rewarding Events section of its website sympathizes with planners that “times are tight, and budgets are tighter,” but it can be “business as usual for you,” urging planners to earn points toward free nights for “your ultimate getaway.” Starwood’s site tells planners that earning Starpoints will “bring you one step closer to your dream vacation.”

IHG ran a 2008 campaign for Holiday Inn Hotels and Resorts that masked the individual benefits by calling its promotion the M.B.A. (Masters in Business Accommodations), designed to engage the traveler and educate them “in the personality of the brand and our latest promotional offerings.”

So when do rewards points move from an acceptable gift to a breach of ethical guidelines?  Joshua Grimes of Grimes Law Offices, a firm specializing in associations and the hospitality industry, says there is no industry standard on points; however, many companies have policies that employees and contractors must follow.

“Sometimes these policies require people earning points for business travel to credit them to the company account,” Grimes says. “Other times the [individual] may keep them.”

Sheila Evans, director of sales Southern region for Hilton Worldwide, has clients who create a “house account” for points. Similar to an escrow account at a bank, Hilton holds the rewards points for use as the group books meetings. This ensures that the points are going to the company and not the individual planner. “Some clients use their points in company giveaways or donate them to their favorite charity,” Evans says.

Grimes says that most hotels have a policy allowing the meeting sponsor to designate who gets the points, the only condition being that the points will be paid to only one person or entity. “This means that any recipient may be designated,” Grimes says. “However, ethics considerations may dictate that the points should go to the meeting sponsor unless that sponsor designates another recipient.”

Evans says that it must be stated clearly, prior to the signing of the hotel contract, who will receive the points. “This is usually decided by the meeting planner or the person booking the program,” Evans says.

Ethical considerations can be stretched further when a planner bases a destination or venue decision on the rewarding of points. Kyle Greer, program manager for the Society of International Business Fellows (SIBF), books properties based on how they fit his organization’s needs, not by their points program.

“Our key concerns are location, meeting space and service level,” Greer says. “It is critical [that] we pull off high-caliber meetings and events, and we’ve yet to find that a point system helps in any way.”

Paulette Hopkins, president of The Hopkins Alliance, puts a clause in her contracts listing the designated representative who will receive the points. “But it has never been the decision-breaker [over another property],” Hopkins says.

While Grimes says there is no legally correct answer, under the federal Sarbanes-Oxley law, the points would have to go to the company or organization sponsoring the meeting. “Otherwise, there could be an implication that the planner chose a particular hotel because he or she was personally earning points — a suspect incentive because it doesn’t benefit the meeting sponsor,” Grimes says. “The best policy is for the planner to give the company the points, or to disclose to the company that the hotel is offering the points and seek approval from company officials to keep them.”

Monica Compton, CMP, is an event specialist with Pinnacle Productions Inc. based in Atlanta. She has 18 years experience as a global meeting planner, managing a variety of programs both domestically and internationally.

In addition to inconveniencing so many passengers, the recent airline flight cancellations had a significant impact on the meetings industry. We had a number of clients contact us to say that their meeting had been affected as a result. Some were unable to hold their meetings, as they could not get their attendees to the destination. Others arrived at their destination but found that no rooms were available because the previous group’s attendees had not been able to depart and stayed over as a result. In other instances, function space was not available because the previous group had extended or adjusted its meeting times. This brings up the burning question: What are the duties and rights of a group when a flight cancellation impacts a meeting? The short answer is: It depends on what the contract says, if anything, about transportation interruptions.

Provisioning Up

The group’s duties will be evaluated against the contract’s force majeure provision. A force majeure provision should be included in each and every contract signed in connection with a meeting. There are three components I focus on when reviewing the provision. First, I review the grocery list of items that could occur such as acts of God, weather, strikes, wars, threats or acts of terrorism, travel advisories or diseases. It is important to ensure that transportation interruptions or flight delays or cancellations are included on the list. It is also important to include a catch-all provision at the end of the list such as the following: “or any other cause beyond the parties’ control.”

The second and most critical component is the standard of impact. If any of the items on the list occur, what has to happen to performance in order to trigger the protections of this provision? Does performance have to be rendered impossible? Or illegal? Inadvisable? Commercially unreasonable? Depending on what requirement is included in the contract, the group may have a difficult time exercising its right to cancel the agreement without liability. Standards such as “inadvisable,” “commercially unreasonable” or “materially affected” make it easier to invoke protections for the group, especially with respect to flight cancellations. Another option is to specify a certain percentage of attendees who would be discouraged from attending the meeting. Based on surveys of passengers affected by flight cancellations, this option offers another way of establishing that the group has met the requirements of the provision.

The third and final component is defining what will happen if the group could cancel its contract without liability due to force majeure but chooses to perform the contract anyway. The provision should state that in such an event, the hotel will waive room and food and beverage attrition fees related to a smaller meeting and honor any lower room rates. For example, if the flight cancellations meant that only 50 percent of the group’s attendees could travel to the meeting, the force majeure provision may give the group the right to cancel the agreement without liability but the group can elect to hold the meeting and not be subject to attrition fees for a lower utilization of its room block.

Groups also may want to consider purchasing event cancellation insurance for their meetings. Typically, the following are considered “covered events” under the policy: adverse weather conditions, non-appearance of a principal speaker or entertainer, terrorism (but only to the extent the event meets the policy’s parameters in terms of proximity and timing), labor disputes, airline cancellations due to adverse weather conditions or labor disputes, and floods.

Typical exclusions include financial cause or lack of support for the event, war or military action, government action and terrorism outside of the bounds of the policy. By having such insurance in place for revenue-producing meetings, the group can ensure that no matter what the liability under the contract, the group’s revenue from the meeting will be protected.

Rights

The group’s rights under the hotel contract in the midst of transportation interruptions also will be governed by the contract. In this instance, however, what the contract says is often not as important as dealing with the practical issues. For example, if the prior group has not departed due to flight cancellations, the hotel may not have enough rooms to honor your group’s reservations. In the event that a guest overstays their reservation dates, the hotel generally has two choices: Evict the guest or assume a new contract exists and charge the guest on a day-to-day basis. Since eviction is a rare consequence in the event of overstay (eviction is a consequence in the event of a guest’s violation of law or hotel policy), hotels typically treat the overstay as a new contract. That said, the hotel has no other option but to relocate the incoming group’s guests. Since a hotel room reservation is a contract, the hotel must provide alternate accommodations to the guest. That may mean “walking” the guest to any other hotel or, if the contract includes a “walk” clause, the terms of that clause will govern in such an event. It is important to include parameters in the clause such as the type of alternate hotel (nearby and equal or better quality), and reimbursement of transportation to and from the hotel and the alternate hotel as needed. Some groups request that the guest be returned to the hotel as soon as possible and receive upgraded accommodations along with an apology letter. Bottom line, if it appears likely that a walk situation will occur, the group must monitor the hotel’s relocation practices to ensure they meet the terms of the contract.

As life imitates art, I recently found myself in a walk situation caused by bad weather in another part of the country. While it appeared that the hotel had appropriately followed walk procedures, its method of dealing with guests who were being relocated was less than professional. Front desk managers were not adequately trained in basic customer service in such a situation and, as a result, many attendees were upset about the situation. In order to avoid this outcome, planners should work with the hotel’s front desk staff to ensure attendees are treated appropriately.

With regard to function space, the group’s rights are governed by the contract but once again, if the previous group does not vacate the space, the incoming group has the practical problem of securing its required space. As compared to sleeping rooms though, the group should have more leverage to insist that the hotel move the previous group. Function space is rented on a daily basis for specified hours. If a group exceeds the hours it reserved, the hotel has the right to remove the group from the space. Again, it is important for the incoming group’s planner to work closely with the hotel to ensure that this situation does not arise in the first place. Planners can undertake a number of measures both in and out of the contract to ensure that if transportation interruptions occur, they will be properly poised to minimize their duties and maximize their rights.

Barbara Dunn is an attorney and partner with Howe & Hutton, Ltd. in the firm’s St. Louis, Mo., office. She specializes in hospitality law and is a session speaker at the 2010 Rejuvenate Marketplace in Louisville, Ky., Oct. 18-21. For more information about Rejuvenate Marketplace, visit RejuvenateMeetings.com.

BY CHRISTINE BORN

Have you ever thought of holding your annual conference at a resort? We know, we know- – faith-based groups are usually very frugal and don’t want to give the appearance of being extravagant, especially in the wake of what has come to be known as the “AIG” effect, named for the big insurer that staged a lavish meeting after receiving government bailout money. But, besides the savings now being offered by upscale properties, some planners are discovering other advantages to holding their meetings at resorts.

Luxury resorts have joined the discount battle, offering low rates, eliminating attrition fees and adding freebies in an effort to attract whatever meetings there are in a shrinking economy. They are targeting faith-based and other SMERF groups often considered tight-fisted and priced out by upscale properties.

Seasoned planners may be familiar with this scenario. After the events of Sept. 11, 2001, and the subsequent slump in corporate travel, hotels briefly wooed SMERF groups, which are considered reliable through good times and bad. The market flipped again in 2006, as prices climbed, hotel construction boomed and the corporate meetings market returned with a vengeance. This time around, optimistic predictions are for a bounce-back in the second half of 2010, so if you’ve ever wanted to book your meeting at a resort, now’s your window of opportunity.

“If there are any resorts that were on your ‘wish list’, they now may be a good possibility for your event,” says David Gabri, president and CEO of Associated Luxury
Hotels International (ALHI).

“The economy and the shift in business travel have created more inventory at hotels and many have opened up, relaxing food and beverage minimums significantly and allowing some groups to enjoy amenities they might not have had access to before,” Gabri says.

While admitting that corporate groups traditionally account for a greater expenditure per attendee, especially for incentive meetings that often include golf and spa packages as well as big bar tabs, Gabri notes that resorts have always been interested in “all good business.”

He suggests that savvy meeting planners use this lag period to establish longer-term relationships with resorts, contracting through 2011 where possible. “This year, anyone can write their own business anywhere,” he says. “In 2010, there will be a little less availability, and resorts will lower group ceilings as the leisure visitor comes back. It’s a typical supply-demand curve.

“It’s an important time for planners to work with the sales managers of choice, so when the tide turns, they’ll be remembered,” Gabri says.

Service Priority
Great service is one of the reasons even budget-conscious groups are interested in resorts, says Kevin Hillmich of PCH Hotels & Resorts, known as the Resort Collection of Alabama Robert Trent Jones Golf Trail. “Across the country, resorts are being more competitive with the values they are adding, but we want to lead the way in satisfaction,” Hillmich says. “We are trying to put an offer on the table that will give them the incentive they need without sacrificing any service or attention to detail.”

PCH resorts are offering giveaways – similar to those at many resorts – for free night stays, spa treatments for attendees who register by a certain date and other early-bird specials that planners can use in their event brochures to build interest and attendance.

Alex Doyle, vice president of 21st Century Group, a global hotel site-selection company, says resorts are offering very liberal attrition rates (25 to 35 percent slippage), no charges for meeting space, very low if any food and beverage minimums and, in some cases, a 3 to 20 percent rebate back on the total master account. “Resorts are trying to remove any obstacles for attracting business,” he says.

Offers like these may draw budget-conscious faith-based planners not intimidated by the use of “resort” in the property name. (One sales manager, who did not want to be named, related a story about a corporate planner who booked with the property and then requested that the “& Spa” portion of its name be removed on all materials related to her meeting.) Once they book a resort, these daring planners are likely to reap benefits beyond affordable rates.

With families cutting back, planners of faith-based events are finding a positive repercussion of the recession – families are using the conferences as their vacation, boosting attendance. “We are seeing many groups negotiating group room rates for three days before and after events,” Doyle says. “This is actually a bonus for the resorts as well, since they realize more total room nights.”

With all the amenities available at resorts, planners are cutting less popular programs and food events, resulting in savings and allowing attendees to choose activities they prefer on their own dime.

“Besides asking for discounts on F&B prices (we are seeing menu pricing guaranteed for the rest of 2009 and even 2010), planners should ask for coupons for meeting attendees to receive 10 to 20 percent discounts in hotel restaurants, and even a dollar amount dining credit for those who come early and stay late,” he advises.

Privacy is a big issue for faith-based groups, Doyle adds. “Most require dedicated space for prayer gatherings and those requirements can be demanding on a hotel. We work with many different resorts and almost all understand the nuances of faith-based groups. In many cases, these groups use more upscale resorts during the off-season, so the staff understands how to service these gatherings.”

Serenity is an appealing selling point for faith-based meetings, says Renee Wilhite, director of sales and marketing at Chateau on the Lake Resort & Spa in Branson, Mo. “The whole environment keeps people focused and in the right state of mind to absorb what they need to absorb,” she says. “Resorts keep everyone on property for the conference portion, but allow attendees to make it a family vacation. We’re seeing this a lot more.”

On the Plus Side
Wilhite reports that some groups have actually exceeded expectations this year in terms of numbers. “There are a lot of meetings that people aren’t going to give up,” she says. They are also using the spa more, which she attributes to the stressful economy. The resort has responded by offering stress-free seminars during breaks and complimentary spa treatments.

“There’s a lot they can do to offset their budgets,” Wilhite says, suggesting pre- and post-event extensions at group rates, cutting meeting agendas, and giving group members more time to relax and be with their families.

North Carolina’s historic Pinehurst Resort attracts small retreat groups attracted to the quiet setting in the state’s green Sandhills region. “It’s almost like coming home,” says Beverly Stewart, director of sales, Conventions & Visitors Bureau – Pinehurst, Southern Pines, Aberdeen Area, N.C. The resort can accommodate meetings of up to 1,000 and Stewart says groups are now more aware of their negotiating power. “We are open to anything,” she says. “We work group by group; some require more hand-holding because they generally are not professional meeting planners, but they are very rate conscious and have specific requirements. We help them meet these, so they can be successful.”

All of the property representatives agree that if the dates are right, they will make the meeting work – for the short term. “There are still meetings for 2009 that have not been confirmed,” Doyle says. “We are working on meetings for 2012 and 2014, yet these are the larger conventions that need to plan further out.”

Will there be room for faith-based groups when the corporate meetings and leisure travel markets rebound? “That is the $64,000 question,” Doyle says. “The resorts will continue to show flexibility as long as the market remains soft. We suggest to our meeting clients that they take advantage of the present situation. Once a recovery takes hold, all of the special offers go away”.

Resort Advantages

1 Vacation atmosphere for families that want to extend stay beyond conference may cinch decision to attend.

2 Stress-free atmosphere may add extra appeal in these trying times.

3 Controlled environment is an advantage for faith-based groups that want to keep attendees on property and limit exposure to potentially offensive activities or media.

4 Current values offer opportunities to incorporate amenities that reward attendees.

5 Planners can realize budget savings by eliminating some programs and meals, and allowing more free time and choice for attendees who are using event as a vacation opportunity.

By Christine Born

It’s a roller coaster out there. The state of the U.S. economy and financial markets, the swine flu threat, and the plethora of special deals being offered by the hospitality and travel industries are shaking up the usually stable business of planning faith-based conferences. Many faith-based organizations pay for their delegates to attend their annual business meeting, but their investment portfolios have taken a hit like everyone else’s. As a result, meetings may be canceled or downsized. And, for meetings still going forward in these volatile times, negotiations are more demanding as destinations compete for what business remains and planners try to lock in the best deals, while leaving wiggle room for the unknown terrain ahead.

We asked Barbara Dunn, an attorney who specializes in hospitality law, for some advice on canceling meetings and negotiating attrition fees. She also talked about the impact current marketplace conditions are having on new contracts. She began our discussion by distinguishing between two separate challenges: 1) Contracts already in place for existing meetings that might be canceled completely or renegotiated based on partial performance; and 2) new contracts that are being negotiated today, in an environment where faith-based meetings are being viewed more favorably than in the past.

Canceling, Renegotiating Existing Contracts

What can be done when the pickup is so low that the group can’t afford to have the meeting, or budgets force cancellation? How can damages be minimized and relationships protected?
First, you need to do some soul-searching and decide from the organization’s standpoint whether you need to have the meeting. Will cancellation hurt the purpose of the organization? Can the meeting be done and the mission accomplished on a reduced scale?

Then, check the contract. Are there any provisions that would allow cancellation without a fee? If the answer is no, then shift to fee negotia tion. Think of the cancellation fee as your maximum exposure. Your leverage for concessions is that you could walk away, but you probably won’t.

How soon can you make the decision to go forward with the meeting or not?
The closer to the date you cancel, the higher the fee. In today’s climate, the hotel may jump at the opportunity to rebook your meeting in lieu of a cancellation fee if you can reschedule within six months to a year. Hotels are desperate to keep business on the books now.

You may be able to negotiate rate adjustments and attrition fees for future bookings. Hotels may offer a percentage back to the master account or a commission back to the group, something that previously was only offered to a third party. What is important to your group – meal cost, transportation? Talk to the hotelier; the time is ripe for deals. They’re interested in making your meeting work.

How much hotels will credit toward future meetings depends on the size of the group and when you want to rebook. Even though they want business, hotels are reluctant to book beyond 2010-2011. We are seeing shorter booking times, no matter what size the group is, even for citywides.

If the group decides to go ahead with the meeting as scheduled, but wants to adjust the room block and F&B, how should the planner proceed?
If you have signed a hotel contract, check to see if the contract has a room block adjustment provision. If there is none, contact the hotel to discuss an adjustment. If the parties agree to adjust the room block, an addendum should be added to the contract reflecting the change and the impact the new room block has on the attrition fee. For example, if the contract language states that you are responsible for using 80 percent of the contracted room block, the addendum should note that the revised room block is the “contracted room block” for purposes of the attrition fee provision.

Negotiating New Contracts Now

Are there contract provisions that have taken on more importance as a result of current events?
Definitely. The “rights of cancellation” clause should be very specific and inclusive. I call it the “get out of jail for free card.” Today, many non-profits are having an identity crisis; some are being forced to cancel meetings and are finding they are vulnerable.

A “force majeure” provision [see "Terms to Know"] needs to include a grocery list of contingencies. It also needs to set a standard of impact that is less than the usual “impossible” or “illegal,” which is the hardest, highest example to meet. In most cases, economic conditions in the current climate won’t qualify under force majeure. The swine flu scare won’t either, even though the president issued a travel advisory. Most standard force majeure clauses would require that travel be declared illegal – something we all learned after 9/11.

Alternative standards could include “commercially impracticable” or “inadvisable.” Commercially impracticable means most business minds would agree that the meeting is impractical. I would add “inadvisable from a safety, health or financial standpoint.” These standards make it easier to invoke protections for the group.

Some groups are now including another component in their force majeure clauses stating that if the group could cancel under the provision but chooses to go ahead with the meeting, the hotel will waive room and food and beverage attrition fees related to a smaller meeting and honor any lower room rates.

If the group has to cancel the meeting for any reason not covered in the contract, the contract should state that cancellation fees be determined on a “sliding scale” basis. Under this “liquidated damages” provision, the farther out from the meeting date the cancellation notice is received by the hotel, the smaller the cancellation fee; the closer the notice is received, the higher the cancellation fee. Cancellation fees can be based on a percentage of total room revenue, total room and food and beverage revenue, total lost profit on rooms, total peak night room revenue or many other options.

In addition to specifying the cancellation fee, you should require the hotel to attempt to resell the rooms and refund to the group any revenue collected by the hotel for resold rooms over the meeting dates. You may also want to include a provision stating that in lieu of paying a cancellation fee, you can contract with the hotel for the same or similar-sized meeting to occur within a certain time frame.

Finally, the provision should state that the cancellation fee is the exclusive remedy for the group’s cancellation for reasons not otherwise permitted under the contract (e.g., force majeure).

What about protection from problems that arise with the properties themselves, such as bankruptcy and change of ownership?
It’s important to include comprehensive language regarding property construction or renovation. Ultimately, site delays should be included as a reason to cancel and should cover any public areas, restaurants, amenities, services, etc. Some hotel chains include mutual cancellation fees, but that’s like comparing apples and oranges. The numbers [the hotel's losses] have nothing to do with what it costs the group in trying to find new space for its meeting. The decision to cancel should not be mutual; you should retain the right to make the decision based on what is best for your group.

Before the swine flu, labor disputes were the issue we were talking about [in the hospitality community]. When providing for labor problems, you should include other factors and contingencies besides a strike. In San Francisco, information picketing had an impact on meetings; some groups were forced to cancel events [either because they did not want their attendees forced to make a decision about crossing picket lines or their organization was supporting the picketers]. In today’s economy, you also may face problems arising from bankruptcy and financial difficulties of properties. Closings, ownership changes and property deterioration need to be covered in your contract.

In the latter case, you should keep collateral material to prove property deterioration if a dispute arises. Take site visit photos and keep Web site pages to show what the property looked like when you booked it. If your group is particular about a brand, then reference it in the contract, so you’re covered if there is a change in management and a reflagging of the property.

What other best practices do you advise regarding attrition fee provisions?
First, make sure you are comfortable with your total room block. In fact, book ultra-conservatively these days, remembering that it’s always a good problem to go shopping for additional rooms. Usually, you can negotiate a minimum pickup that represents 80-90 percent of the total block. That minimum room pickup number should be stated in the contract.

Next, specify how the attrition fee will be calculated [total rooms used, no matter how they were booked or at what rate, etc.]. Finally, if attrition fees are charged, the contract should require the hotel to provide documentation verifying the fee, including a list of guests during the blocked dates and an accounting of the total number of rooms available for sale during that time.

Groups often struggle with deciding which food and beverage events they will hold at the hotel and how many people will attend each event. You should consider guaranteeing a minimum amount of the total food and beverage revenue generated over the entire period. That gives you flexibility to add, change or cancel events so long as the total number meets the mini mum amount. That way, if it doesn’t, you will only pay a fee based upon the difference between your guaranteed minimum amount and your actual revenue amount. The contract should state whether the minimum amount is inclusive or exclusive of all tax and
service charges.

How do conference center contracts differ than hotel contracts?
Conference centers have daily pricing. Obviously, you’re not concerned about rooms, but you do have the same food and beverage issues. Basically, there is the same approach with contracts. Conference center contracts are pretty contained, but I might look at adding a bit more to adapt to current conditions, such as force majeure and indemnification.

We’ve discussed renegotiations based on good relations, but what happens when serious disputes arise?
I prefer to keep contracts pretty open as to how to respond to disputes; otherwise you tie your hands to one form of dispute resolution, that is arbitration or mediation. By leaving the dispute resolution method open, all dispute resolution options are open to the parties. There’s a lot of heavy handedness in some hotel contracts, and groups that mainly use volunteers are often not experienced in handling negotiations. We can help them understand how it works, but it’s their decision [whether to go forward with legal action].

What other protections should groups seek in their contracts?
“Indemnification” is another risk management clause that helps minimize exposure to financial liability. Such clauses are a way of shifting risk to the party that can best control it. With hotel contracts, it is important to protect your group against the negligent acts of the hotel’s officers, directors, employees and agents. Hotels, in turn, will ask you to indemnify the hotel against any negligent acts committed by your group.

If you are concerned with competitive groups or groups that may be considered inappropriate meeting at the hotel at the same time – which can be a big concern for faith-based and youth events – you can seek to include a provision prohibiting the hotel from reserving space for such groups without your consent.

Many hotel contracts include miscellaneous or boilerplate provisions at the end of the contract that you should watch for, such as the hotel’s ability to assign the contract to another entity without the group’s consent, or whether the prevailing party gets its attorney’s fees paid from the non-prevailing party.

When planning an event for any organization, consult your attorney regarding any contract before signing on the dotted line to be sure that you are fully aware of the risk, benefits and potential liabilities.

Rate Protection in a Fluctuating Climate

The current economic environment makes it difficult for groups to negotiate rates for future events when no one can predict how low (or high) they may go. What recourse do you have when you discover, as you get closer to your dates, that your negotiated room rate is higher than those promoted by the hotel over the same dates? How do new rates affect your attrition fee agreement? How do you address the issue of special discounted rates often found by attendees on the Internet?

Previously signed contracts:
If you already have a contract in place and learn that the hotel is offering lower rates, you should address this issue with the hotel. If you don’t get any satisfaction, don’t give up.

“Leverage your connections,” says attorney Barbara Dunn. “Involve all your stakeholders – the convention and visitors bureau (CVB) and the hotel chain’s national sales office. The CVB sold you on their city and they want you to come back. And while brand loyalty counts in some cases with hotels, keep in mind that brands are not the same. Real estate investment firms may own individual properties; they’ll look at the bottom line and won’t care if you come back.”

Press all parties to correct the situation, she advises, by either honoring the same rate for your group’s attendees or ceasing to offer the lower room rates. Whatever the remedy you agree on, make sure to add it as an amendment to the contract.

In all cases, you should work closely with your attendees to ensure they are reserving rooms within your room block and receiving the correct rate. It is also important to periodically check the hotel’s reservation line to make sure your attendees are receiving the correct rate. If there is a problem, the hotel should be notified immediately.

Contracts in negotiation:
“You need to include strong rate protection clauses in contracts and be diligent in monitoring rates,” Dunn advises. “If a meeting is scheduled to take place two or more years in advance, you can agree on a discounted rate for the current year and then agree on a maximum percentage increase for each year leading up to the meeting year.”

In addition to ensuring that rates can be confirmed, the clause should specify what the hotel would do if it lowers rates over your blocked dates. In certain markets, properties may want to limit the rate protection clause to state that it will not offer any lower group rates, except for corporate or airline crew rates, or that the hotel will not offer lower rates on its Web site or toll-free reservation line.

“It’s important to keep in mind that it is unreasonable to include language covering Internet offerings,” Dunn says. “The hotel does not control the Internet rates, many of which are offered by wholesalers such as Priceline.com.”

The attrition clause should state that all rooms sold to your attendees would be credited toward any attrition fees regardless of the rate paid or method of reservation. That way, you will even receive credit for those rooms reserved through Internet wholesalers.

Terms to Know

CUTOFF DATE
This is the date that the hotel releases your room block back to general inventory, typically 21-30 days prior to arrival. Hotels may blind cut your block, meaning they may look at your meeting history and internally hold fewer rooms than your minimum stated block. You should consider adding a damage clause to protect you from blind cutting.

FORCE MAJEURE
The French term is defined as a “superior or irresistible force.” The purpose of a force majeure contract clause is to protect the parties in the event that a part of the contract cannot be performed due to causes which are outside the control of the parties and could not be avoided by the exercise of due care. Typically, force majeure events include Acts of God, superseding governmental authority, civil strife and labor disputes.

In the world of meetings, the force majeure clause was catapulted into the spotlight following the events of September 11, 2001. Since then, the force majeure clause has become the topic of much debate centered around: the listing of calamities that could occur, the standard of impact such a calamity has to have on a party’s performance in order to excuse such party from performing the contract, and the net effect if such party chooses to perform the contract despite force majeure.

INDEMNIFICATION
To indemnify means to guarantee against any loss or damage that another might suffer. Indemnification provisions in contracts are used to protect both parties against the negligent acts of the other. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft and flooding, which are specified by the terms of the contract between the company and the insured. Cancellation policies can be purchased for meetings but may not include everything. There are earthquake exclusions in California, snow exclusions for northern cities and hurricane exclusions in Florida. In these cases, special coverage programs may be available, such as Florida’s complimentary Cover Your Event Insurance for events scheduled during the traditional height of the hurricane season. Also, diseases such as SARS are no longer covered by insurance, so planners are advised to include a communicable disease clause in their contracts.

LIQUIDATED DAMAGES
When the parties to a contract agree to the payment of a certain sum as a fixed and agreed upon satisfaction for not doing certain things specified in the agreement, the sum is called liquidated damages. Liquidated damages are used when the parties are unable to calculate the actual amount of damages. To be enforceable, the damages amount must be reasonable and they must not constitute a penalty, i.e., give the party more than they would have received had they performed the contract.

REQUEST FOR PROPOSAL (RFP)
A Request for Proposal is not a contract. To be a contract, there must be an offer made and an acceptance of that offer. RFPs are considered to be invitations to make an offer. What comes in response to the RFP, such as a contract issued by a hotel, is the offer. If the group accepts the offer on the terms it was made, it becomes contract. Any change to the terms, e.g., lowering the room rate or increasing the room block, constitutes a counter-offer that must then be accepted by the hotel to become a contract.

By M.J. Blank

If you’ve ever dreamed of upgrading your venue to a three- or four-star hotel, wished for a break on attrition fees, or imagined taking your annual conference to a city that seemed out of reach, this might be the time to make dreams like these come true. The lodging industry is suffering, and hotels are seeking groups that they might not normally bother with to fill empty rooms. For hotels, it’s the perfect storm: Just as the faltering world economy has slashed demand for corporate travel, worried consumers have cut back on leisure travel and a large number of new hotels that had been under construction are opening their doors, adding to a market that is already saturated in many areas.

“The combination of a weak economy and rising levels of supply have caused one of the deepest and longest recessions in the history of the domestic lodging industry,” a study earlier this year from PKF Hospitality Research concludes. PKF expects this year’s revenue per available room—a measure of a hotel’s health—to decline 13.7 percent, making it one of the worst years since 1930. “And we’re not at the bottom yet,” says Mark Woodworth, PKF Hospitality Research president.

With revenues off, many more hotels are likely to have trouble servicing their debt, and to make matters worse, hotels have lost value along with residential real estate. Not surprisingly, lodging closures and bankruptcies are projected to rise.

For meeting planners, this scenario suggests opportunities—and caution. “This is one of the most attractive buyers’ markets that we’ve seen since 2002,” PKF’s Woodworth says. The increase in supply and the decline in demand for hotel rooms should combine to push room rates down, and hotels are likely to dangle incentives to bring the business in. And for business already on the books, hotels interested in maintaining long-term good relationships with groups are more likely to bend a bit on attrition.

One simple reason associations and faith-based groups may seem be more valuable now than ever: They’re still holding meetings. “Associations and religious groups are still signing contracts,” says Gus Vonderheide, vice president of group sales for Hyatt Hotels & Resorts. Their numbers may be down a bit, but they are still traveling. But regardless of the economy, faith-based and other non-corporate groups are valuable because they fill rooms during off-peak times such as weekends and holidays.

Sandra Schutrop, religious sales manager, worldwide accounts for Hilton, says in today’s buyer’s market convention and visitors bureaus from larger cities are wooing faith-based groups, and rates in some cases have dropped to a more affordable level.

Holiday Inns’ parent, IHG, recently reorganized and beefed up its national sales force, creating a division specifically devoted to the religious market. “We have always had a significant presence [in this market],” says Mike Fegley, IHG’s vice president for global sales for the Americas region. “But we never had someone who went to bed at night and woke up thinking about religious meetings. We’re excited about that.”

Let’s make a deal

Lodging chains and management companies with empty meeting space and guestrooms are trying a variety of techniques to get business on the books and to keep current clients happy.

First off, don’t expect to see deep discounts across the board on room rates. Given their cash-strapped situation, slashing rates is understandably not the preferred method of winning the business. These days, it’s more common to see hotels throw in freebies such as bumped-up frequent guest program rewards, coffee breaks, or a manager’s reception to sweeten the deal.

At the corporate level, some hotel companies are looking at the big picture, and they are more inclined to give planners a break when they sign contracts for multiple meetings or locations in the future.

Hyatt recently rolled out a multiple meetings program that rewards larger groups booking multiple events in some of its largest hotels. Rewards including frequent guest program points, complimentary meeting space, rebates on guestroom revenue, complimentary board meetings and more.

Similarly, Hilton has introduced a “Book Now and Save” promotion. For meetings before March 31, 2010, the company is offering a menu of incentives, including complimentary room ratio of 1 per 35 group room nights, 25 percent allowable attrition, double Hilton HHonors base points for attendees, complimentary staff meals for up to four staff members, a 2 percent rebate on guestroom revenue, and 500 Hilton HHonors Event Planner bonus points per paid group room night. Depending on the number of room nights, a planner can select up to three of those incentives.

Marriott International, meanwhile, rolled out a promotion package called Marriott Meetings Matter, valid at more than 1,200 properties worldwide. Available through March 2010, the promotion includes a 25 percent allowable attrition rate, up to 50,000 Marriott Rewards bonus points per event, one complimentary room for every 35 hotel rooms booked, and a 2 percent rebate on the master bill for meetings that have at least 100  cumulative room nights booked in the promotion period.

Gaylord Hotels offers incentives on a case-by-case basis. “Each group has its own criteria that are important. So, rather than saying we’ll give them free coffee breaks—which may not mean anything—we’ll customize our offer,” says Randy Miller, vice president of sales at the Gaylord Opryland in Nashville.

One area of special concern to faith-based groups, other than room rates, is food and beverage, and food costs have risen faster than inflation in the last year or so. Despite that increase, hotels that typically host at least some non-corporate groups understand budget-conscious groups and try to work with them. “If you come in with a budget, we’re not going to throw a menu at you and say ‘this is what we have—take it or leave it,’” Vonderheide says. “We will work with your budget.”

Damage control

During these uncertain times, attrition clauses are a source of anxiety for many meeting planners. Hotels have tightened those clauses since 2001, when attendance at many group events fell off precipitously following the September 11 terrorist attacks. “The long-term trend is that hotels know it’s a cyclical industry and they want to maintain the long-term business, so they’ll waive fees,” says Robert Mandelbaum, director of research information services for PKF Hospitality Research. In the short term, cash-strapped operators may not be so lenient. “Right now, any cash is good cash. This year, hotels might try to enforce the clauses and sacrifice the long-term business.”

Earlier this year, Omni Hotels announced that it would waive attrition fees for smaller events booked by June 30 and held this year. More commonly, hotels are dealing with attrition on a case-by-case basis. “It’s a daily conversation,” says Gaylord’s Miller. “We’ve got pretty solid contracts. Sometimes they pay, other times we’re getting their business at other times of the year.” Another common tactic is to ask groups to spend more on food and beverage to compensate for the lost guestrooms revenue, although faith-based groups are less likely to find the value in this option.

“Hotels have been a lot more flexible in 2009 and going into 2010 relative to attrition,” says IHG’s Fegley. “It is a buyer’s market for meeting planners in many markets, but not all,” he adds.

At Hilton, Schutrop says a lot of hotels are negotiating with 2009 groups and sometimes dropping room block numbers. “They understand that in times when there is hurting across the board, it’s time to make sure you don’t lose your clientele,” she notes.

Creating a win-win with hotels

There are right ways and wrong ways to approach and negotiate with hotels. Here are some tips from the front lines:

• A good request for proposal, including your group’s history (how many attendees, room rates, locations) from past conventions, will steer the hotel toward dates and rates that are more in line with your expectations.

• Take advantage of hotel chains’ help. IHD runs a 24-hour hotline for meeting planners that takes more than 100,000 calls a year, and Marriott provides “Meetings Excellence”online tutorials on its website. Marriott.com also has electronic tools such as space and budget calculators, online rooming and group lists, custom web pages for groups and step-by-step guides for everything from planning to post-meeting follow-up.

• Prioritize. What’s a deal breaker (or maker) for your group?

• These days, if you can schedule multiple meetings or conventions with one company, you are more likely to get a break.

• Finally, Hilton’s Schutrop says, remember that “no question is a dumb question.”

By Kate Burton

Contracts might well be one of the most complicated aspects of meeting planning. And thankless, too. Do them well and no one notices. But make a mistake, and the effects can last long after the actual meeting. A competent legal professional can go a long way toward identifying all issues and strategically preparing contracts to protect your organization.
To get the inside track on areas of special concern to faith-based groups, Rejuvenate spoke with John S. Foster, Esq., CHME, an attorney and counsel whose Atlanta-based firm, Foster, Jensen & Gulley, LLC, specializes in the legal aspects of meetings and conventions, trade shows and events, and association management.

Foster has been an associate or general counsel for more than 400 national and regional associations and companies since 1986. He is a frequent lecturer at association and convention industry events, as well as the author of three books on the legal aspects of meetings and conventions: Meeting & Facility Contracts, Meetings & Liability, and Independent Meeting Planners & the Law.

His peers have voted him a Special Recognition Award as “Corporate Member of the Year” through the Georgia Society of Association Executives; he is also an active member of PCMA, MPI, IAEE, and ASAE’s legal and meetings and expositions sections. He can be reached at John.Foster@FJGLaw.net.

In your experience, what are the most common mistakes that novice planners make when dealing with hotel and/or convention center contracts?

A frequent mistake is not using a request for proposal to get competitive bids and not starting as far in advance as possible on the negotiations. Planners should give themselves double the time they think is necessary to preserve the option of booking somewhere else.

Another common mistake: Not focusing on how performance damages should be calculated. Performance damages should always be based on the hotel or convention center’s “lost profit,” which is not the same as 100 percent “lost revenue.” Damages should not include lost revenue from “ancillary” activities not specified and agreed to in the contract. Planners often do not insist that credit be given for replacement business to reduce potential performance damages. “Replacement business” should be defined as any business that the hotel would not have been able to book if your event took place as scheduled. If the hotel can find another group or groups to fill your space, your group should not be liable for performance damages.

Contracts and licenses in the meetings industry have gotten complicated and there are serious pitfalls for the unwary. It’s easier to stay out of trouble than to get out of trouble. So I would add that not seeking professional legal assistance when finalizing the contract is another common mistake.

There has been a lot of focus on attrition in the past few years. How can groups make sure they get full credit from hotels for everyone in their group?

Attendees’ getting a lesser rate at the headquarters hotel does not have to be a problem if the proper wording is used in the contract. The biggest concern for planners is to make sure that all room nights booked outside the block are credited to the group for purposes of calculating pick-up to satisfy performance obligations for comp rooms and no meeting room rental. I recommend using wording that says:

“All guest rooms in Hotel that are occupied by Group’s attendees will be credited to Group’s room block for pick-up purposes regardless of rate paid or method of reservation.”

How should contracts handle the issues of cancellation on the part of a hotel or convention center? Are there other changes that a convention center or hotel might make that should also be addressed in a contract?

In the event of cancellation, a contract should either state a specific dollar amount or leave the dollar amount open, but state that the facility will compensate the meeting sponsor for its expenses to rebook another facility, any increased costs at the second facility, and lost registration fees and exhibitors, if applicable.

There are other clauses I have developed that deal with some of the most common issues that come up with convention centers and hotels.

Do you find in your experience that centers are becoming less flexible with concessions?

For the most part, convention centers have always been more challenging to negotiate with than hotels because municipalities own them. It’s true that convention centers are trying to maximize their revenues, but that doesn’t mean they won’t negotiate concessions and other terms in the fine print. The best strategy is to be persistent and not take “no” for an answer the first few times you hear it. Convention centers will always be more flexible if they know your group is considering other cities and alternatives. Convention center licenses always take longer to negotiate and finalize, so start at least two years in advance.

Is the meaning of “force majeure” typically spelled out in sufficient detail in contracts?

Based on the experiences from the terrorist attacks of 9/11, the SARS [Severe Acute Respiratory Syndrome] epidemic, and Hurricane Katrina, it is not unusual at this point for “Force Majeure” or “Excuse of Performance” clauses to be almost a page long in contracts. The clauses should specify the definition of force majeure, as well as whether a total inability to perform is the necessary standard or if a partial inability of a certain percent is allowed to excuse performance. The definition should include “impossibility,” “commercial impracticability,” and “frustration of purpose.” These are all terms that need to be clearly defined in the contract, but often aren’t.

What is indemnification, and do standard clauses typically need to be amended in some way to better protect meeting groups?

Indemnification clauses are tricky, because various types cover different levels of responsibility by one or both parties. The purpose of a basic indemnification clause is for Party A to be responsible for any losses or damages suffered by Party B if the losses were caused by Party A’s negligence or misconduct. Clauses used by facilities are usually one-sided-protecting the facility.

One-sided clauses should be revised to be mutual. And an indemnification clause should always be followed by a requirement for the parties to have insurance to pay for the indemnification if indemnification is required.

For faith-based groups, hidden costs of meetings are a huge concern, given the limited budgets of most groups. How can planners better protect their groups from these costs?

By definition, “hidden costs” are the additional mandatory charges that show up on the bill that weren’t pre-approved by the meeting planner. I use the following sentences in every contract:

“No additional charges not specified in this Agreement or any addendum will be incurred by Group for work performed or for services or items provided by Hotel unless Hotel will have first obtained prior written consent to incur the expense from an authorized representative of Group to have the work completed or the service or item provided.

Neither Group nor attendees will be responsible for additional surcharges, gratuities, or service fees not included in this Agreement without Group’s or attendee’s written consent, respectively.”

As 2007 draws to a close, what trends do you see on the horizon that will affect convention business, in particular, faith-based groups?

Contracts for meetings and conventions will continue to get longer as more issues arise in the industry. Faith-based groups should not be naive and think that facilities will give them good terms up-front just because of who they represent. One expert stated it correctly when he said, “In business, you don’t get what you deserve, you get what you negotiate.”

There are already many known issues in booking a meeting that should be covered in contracts. Use industry resources and a competent legal professional to assist you until you are comfortable in identifying all issues and strategically preparing the contract to protect your organization.

A short contract is not a better contract. If you are tempted to cut corners and rush through a negotiation, remember my golden rule of negotiating and contracting: If you ask for something from the other side before the contract is signed, it is called negotiating. If you ask for something from the other side after a contract is signed, it is called begging.

Take the time to negotiate effectively and strategically so that you accomplish all of your negotiating before the contract is signed, not after.

By John Mackenzie

If you don’t know any meeting producers or have word-of-mouth recommendations, you can start sorting through options by checking out professional associations. Meeting Professionals International (MPI) is the largest organization in this field. MPI (www.mpiweb.org) may have a chapter in your area. The International Special Events Society (ISES) is another event-planning membership association (www.ises.com) with a national membership base.

Once you have narrowed down the field, here are some tips to help you evaluate event producers:

Visit the producer. You’ll get a chance to see more samples of the company’s work. In my experience, office and staff size control the amount of business a producer can handle, but have little to do with quality or ability.

Check out awards. Bronze, silver, and gold award plaques on the reception room wall? Could mean a lot. Could mean nothing. It depends on the source of the awards. Some competitions and festivals are more concerned with collecting entry and judging fees than they are with originality and quality.

See video clips. Every producer has video clips (or CDs) of his or her best work. And that’s fine. Just make sure their areas of strength match your needs. Planning beach barbecue costume parties doesn’t automatically imply great speech support or effective new-product intros.

Check out listening skills. How well does the producer listen and let you to talk about your plans and problems? Motor-mouth producers may be more interested in their work than yours. I recall several pitches where producers picked up new business without showing a single capability demo. They just let the client monopolize the conversation.

Put them on the spot. The question, “If you got my business, what’s the first thing you’d do?” can elicit interesting (revealing) responses.

Factor in time in business. A production firm in business for ten or 15 years is doing something right. And you gain some assurance they won’t go under in the middle of your job (although the attrition rate in this business is legendary).

Repeat clients. The size of a client list provides an indication of diversity. But, in my opinion, size isn’t as important as the number of clients who have been there more than once.

Specialization. If your meeting concerns something like Managing Risk Assessment for Subordinated Debentures, you may need a producer with special experience. Flip side: If you really need some new ideas, consider those who haven’t learned what they’re not supposed to do.

Grace under pressure. Try this one sometime: While talking with a producer ask the following (with a straight face), “What’s the worst mistake you ever made?” The pro will smile and answer. The pretender will smile and waffle.

John K. Mackenzie worked in corporate conference management before becoming a business communicator. Visit his website at TheWritingWorks.com or contact him at info@thewritingworks.com.

By Susan Friedmann

1. Know Your  Needs.  Skilled negotiators start with a detailed plan of exactly what they need from their negotiations.  Why not follow their lead? ?Take plenty of time to thoroughly understand what you want and need from the potential supplier. Formulate lists of items that you’re willing to compromise and concede if necessary. Know your budgetary constraints and how they will effect your discussions.

2. Do Your Research.  Doing research is a key strategy in your negotiating arsenal. Find out as much as you possibly can about your potential supplier. Know what your business is worth to them. Understand their business – the peaks and valleys. ? The more they want your business during a slow period, the greater your negotiating clout.

3. Rehearse Your Opening.  Your opening words set the tone for the discussions that follow. Just like an actor with his opening lines, the first words out of your mouth set the stage for the rest of the performance.  Make certain that you know exactly what it is you want to say. Craft the words so that your message is clear and concise. Then spend time rehearsing your lines.  You want your opening conversation to be word perfect.

4.  Ask Powerful Questions.  Asking powerful questions is an essential skill for every negotiator. It not only provides you with strong information on which to build your case, but it also creates opportunities for breakthroughs in your discussions. Questions are the most powerful search engine to help you tap into critical information and make evaluations and final decisions. But, like everything else, they need planning. Each question you ask directs the action that follows it. Take the time to map out what questions you need to ask to get the results you want from your negotiations.

5. Become an Information-Monger.  Even though you’re asking powerful questions to get some heavy-duty information from your opponent, you want to continually be probing for more. Listen to what’s being offered and at every opportunity, be curious and ask for clarification and more information. Become an information-monger, never being satisfied until you have exactly what it is you want from the discussions.

6. Be a Champion Listener. So much of successful negotiating comes as a result of great listening. Listening to what people do and don’t say. People often tell you a lot about themselves. The problem is that we just don’t hear them because we’re so caught up in our own thoughts. When you take time to listen to people, they’ll tell you about their positions, problems, qualities, likes and dislikes.  And, you don’t even have to ask them. They do it naturally just in the way they talk. ? Listen for any sense of urgency to close the deal. Perhaps they want your business to fill quotas. We were given two ears and one mouth; use them in that ratio to help your deal-making.

7. Create a Positive Mood.  Negotiating in a friendly and congenial atmosphere helps create a more receptive mood. Set the stage with some “getting to know you” talk. Make direct eye contact as you speak to your potential supplier. Tell them one or two personal stories that they might relate to. Your goal is to establish an atmosphere of trust and honesty. Don’t just jump straight into your negotiating babble. Rather, take time to develop a friendly rapport so that your opponent feels comfortable speaking with you. You’ll both work together more productively in a relaxed environment.

8. Be Prepared to Walk Away.  This incredibly potent strategy is possibly one of the hardest for negotiators to actually implement. How it works: when you really want something badly enough, and you aren’t happy with your opponent’s offer, you simply walk away from the negotiating table. One of two things can happen. One, your opponent will concede to your wishes, or, two, your opponent will let you go your own way. Remember that if you want to use this strategy, have a second potential supplier “in the wings.” If you don’t, you’ll likely be left out in the cold fending for yourself. ???

9. Know the Styles.  Read any book on negotiating and you’ll quickly learn that there are many different styles and techniques to help you through the negotiating minefield. ? Make a point of familiarizing and learning ones that fit your style of doing business. In addition, learn about the different behavioral styles, what kind of information they need, and how they approach negotiating. For example, an analytical type needs tons of data to help in the decision-making process, whereas a more controlling, dominant type only want the facts. Recognize people’s differences and use them to your advantage—it’s all part of the negotiation game!

10. Exercise Silence.  The old saying “silence is golden” is particularly true around the negotiating table. Negotiating mavens know that when discussing a deal, the first to speak loses. To be successful, it’s not wise to dominate the conversation. In fact, the more you talk, the more information you’re supplying your opponents. So exercising silence will help prevent you spewing out unnecessary stuff. Your silence will also help create the perception that you are a thoughtful and methodical decision-maker.

Susan Friedmann is author of  the book “Meeting & Event Planning for Dummies” and owner of The Tradeshow Company, offering consulting services for meetings and trade shows. Contact her at  susan@thetradeshowcoach.com.