It’s truly an interesting time to be a meeting professional. Attendance is down and prices are up due to tariffs, government funding cuts, uncertainty at the borders and spending restrictions.
These factors are in addition to increased demand for hotels and venues, shorter booking windows and rapidly increasing food and beverage prices in recent years, all of which make it difficult to achieve a contract on favorable group terms. It’s clear that meeting contracts need a fresh review.
Here are eight critical points you should consider for your meeting and event contracts in these turbulent times.
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1. Right-Size Room Blocks
Planners can no longer assume that attendance will increase every year. Budget cuts, government layoffs, border controls, cost increases and general uncertainty are all factors leading to declining attendance for many meetings. It is critical that planners ask for greater flexibility with adjusting room block size if needed, and to choose a smaller block to minimize damages.
2. Update Force Majeure to Prepare for Unknowns
Force majeure provisions are intended to excuse a party’s failure to fully perform due to unanticipated circumstances outside of their reasonable control. Recent events highlight that government orders or regulations should be included in force majeure clauses. Given the impact of recent federal government decisions, these factors should be among the reasons for invoking force majeure, and consider whether the provision as a whole will minimize risk given our changing times.
[Related: A Risk Management Checklist to Help Avoid Disaster]
3. Get F&B Prices Under Control
F&B prices tend to increase more than inflation. It’s difficult to put a cap on F&B prices for a meeting more than several months out. But, contracts can include price controls such as limits on annual price increases or guaranteed discounts off of published menu prices.
4. Identify Extra Charges and Fees
Federal junk fee laws will not stop extra charges from multiplying. Planners and hotels must agree in the contract which fees will be charged and their amounts and also include a provision that no extra mandatory charges will be imposed without the group’s consent.
[Related: Hot-Button Contract Concerns Facing Both Planners and Suppliers]
5. Security Needs and Event Disruptions
Security isn’t just for big events in big cities. Today’s tense climate means that meetings involving VIPs, controversial topics and even social organizations can draw disruptions and protests. Corporate meetings may also need security to ensure that confidential information is secure from theft.
6. Ensure Adequate Staffing
Worker shortages mean that groups with special staffing needs should include their requirements in the contract. Are most attendees checking in at the same time? Do guests hate waiting at the bar? By addressing staffing in the contract, hotels know how best to meet a group’s expectations.
7. Competitors and Incompatible Groups
Corporate meetings may want to prohibit business competitors from renting function space and hospitality suites in the same venue during their meeting dates. Other meeting groups might have concerns about controversial groups sharing the venue. In both cases, contract terms are needed to ensure these concerns will be met.
8. Impact of New “Offensive” Laws
New laws in some states can impact attendee welfare or chill discussions of certain topics. Particularly for groups concerned with social issues, a contract clause allowing cancellation if the government enacts a new incompatible law can be critical to avoiding losses.
For meeting groups, a contract is your best opportunity to maximize success and minimize risk. Consider the business climate given recent national and international events and take steps to negotiate a contract that meets your needs.
Read Next: Meetings Attorney: CrowdStrike Outage ‘Is as Clear of a [Force Majeure] Case Since 9/11’
