From Alison Jayne
Global Sourcing Director at Trademark
Negotiating with an event venue is vital – but tricky. How do event planners protect space and resources for their event, while not overspending on unrealistic projections?
Whether you are negotiating a contract with a hotel, convention center, or non-traditional space, your understanding of hotel attrition can make or break your budget. Programs are constantly evolving, and our Global Sourcing Director, Alison Jayne is here to help you integrate foresight and flexibility into your next venue contract.
Contract flexibility is Key
Crafting contracts with adaptable room blocks and realistic attrition rates is crucial. This flexibility can mitigate potential financial impacts if attendance falls short or the program length changes.
Allow for adjustments
Unexpected changes in attendance, venue needs, or scheduling can arise, and allowing for adjustments in your contracts can save you from costly attrition penalties. By negotiating terms like cumulative attrition or an attrition schedule, you create a buffer for unanticipated shifts, protecting your budget while ensuring your event runs smoothly.
Always opt for cumulative room nights
Understanding the difference between room night and revenue attrition is vital. Room night attrition focuses on the quantity of rooms booked, while revenue attrition addresses the overall spend at the venue, offering more leeway when overcoming shortfalls.
Do your research
Leveraging data from past events helps in setting more accurate expectations and negotiating terms that reflect actual dollars, room block pickups, F&B spends, and ancillary costs. Because our site select professionals are cross trained in event production, they are equipped to foresee all costs to a program as a whole, not just room bookings.
Consider the revenue clauses
Total overall revenue spend in a contract to include estimated hotel rooms revenue with F&B revenue combined offers more flexibility to offset attrition with VIP upgrades, enhanced catering menus, extended invites to sponsors, partners, and staff so there is a value for the dollar and not a total loss.
“At the end of the day, attrition is about flexibility and understanding an organization’s process. There’s more oversight on all contract terms, with attrition and cancellations being at the forefront. It needs to be a win-win for both the hotel and the meeting planners.”
Alison Jayne, Global Sourcing Director of Site Select
Want to learn more about attrition or have a contract to review? Tell us about your event here.
About TRADEMARK
TRADEMARK, Inc. is a full-service, global event production company that has worked with important brands across technology, biotech, pharmaceutical, education, philanthropy, and financial services companies to imagine, define, produce, and execute award-winning corporate events since 1998. Based in San Francisco, CA, and New York, NY, TRADEMARK combines technology, visual arts, event acumen, and creativity to produce immersive experiences that influence, educate, and inspire attendees in person, virtually, and hybrid environments. Borne of the film and entertainment industry, TRADEMARK productions connect with and engage audiences with content and execution that strengthens brands, customer relationships, and revenue. To learn more, visit wearetrademark.com, or follow us on LinkedIn, X, or Instagram. Visit Site Select to and find out how we can help you with your next event.