CONTRACTS CORNER: Nontraditional Concessions

Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: September 14, 2004

Have a lot of coffee lovers at your meeting? Consider asking the hotel for a discount on coffee based on consumption - the more you purchase for the entire convention, the lower the price. Worried about excessive charges for Internet service in meeting rooms? Ask that the cost not exceed the cost charged in individual guest rooms. Many groups have learned through experience to be proactive and negotiate upfront for creative concessions that are of unique value to them.

The key to success is to prioritize. The chances of winning your primary concessions are best if your wish list is presented in order of importance as early as possible, when the hotel is evaluating the business and during the negotiation of room rates. Traditional concessions such as comp room ratios, comp suites, upgrades, discounted staff rooms, welcome gifts and airport transfers usually have the greatest benefit to the group with the least direct cost to the hotel. It is usually best to have these types of concessions at the top of your list when prioritizing.

We have pooled some inventive ideas gathered from our Account Executives at Conferon. These may strike a cord with you and also spark some creative thinking of your own:

  • Bottled water - price will not exceed price of soft drinks.
  • Pitchers of ice water will be available on coffee breaks.
  • No charge for high speed or wireless Internet. (This may be complimentary in the future but isn’t yet.)
  • F&B sliding scale once spending goes over a certain amount and then credit is given to the master.
  • For groups that focus heavily on entertaining in suites – negotiate for some complimentary bars in suites and complimentary replenishment.
  • Negotiate a 24-hour guarantee for a specific meal that continues to sell tickets or increase on-site, just for this one event.
  • Staff rated menus – special price on continental breakfast or lunch or other items ordered for your staff or volunteers.
  • One per 50 complimentary – one meal complimentary for every 50 purchased.
    Discount off of standard menu prices.
  • Complimentary use of hotel props, plants or specialty linens. More and more hotels are investing in these types of items but charge for their use.
  • If planning a lavish dinner, ask hotel to comp two to three passed hors d’oeuvres or host one glass of wine or an international coffee display with the dessert buffet.
  • “Extras” such as ice carvings, centerpieces, first hour of beverages complimentary at a reception, complimentary coffee break.

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all legal issues.)