CONTRACTS CORNER: Service Standards

Source: Robin Roth, Senior Contracts Editor
E-Specs: May 24, 2005

Unfortunately service in many industries has been in a state of decline over the last few years and the hospitality industry is no exception. Attendee expectations are high and regrettably so are the gripes! Complaints about service at hotels include the long wait for dinner to be served, the interminable line at check-in, or the thirst endured while waiting with the masses to be served a drink when there is only one bartender. Since meeting planners are working so hard these days to entice attendees to stay at the contracted hotels, service issues are becoming an important focus.

The typical hotel-generated contract is virtually silent on levels of service but clauses can and should be added to balance the needs of your group with those of the hotel. Spell out your requirements for the ratios of wait staff to guests for sit-down and buffet setups for breakfast, lunch and dinner - in a table format. List your requirements for bartender ratios for hosted and cash bars. Include even your required ratio of front desk agents to arriving and departing attendees during the peak hours of your major arrival and departure dates.

There should be no extra charges for these service ratios. Labor costs are issues that hotels must grapple with but the impact of a poor service experience for a meeting will be felt much longer. Prudent planners monitor service historically so they can advise future sites on how to best manage the demands and needs of their attendees.

A group that has committed itself to a multi-year agreement with a hotel may be understandably concerned that service performance could deteriorate from year to year or the group's needs change. Consider adding a service performance clause such as the following:

Multiyear Service Performance
Performance of this contract for each year of Group’s multiyear commitment to the Hotel is contingent upon Group’s satisfaction with the Hotel at each year’s meeting. Group will have the right to cancel the following years or year’s contract(s) without liability within 30 days following the last day of each year’s meeting if either of the following occurs:

  1. Group is substantially dissatisfied with the service or performance levels of the Hotel.
  2. Group’s anticipated needs for guest rooms and/or function space, equipment or service levels for the following year or years are more than the Hotel can provide.

Hotel will have the opportunity to propose a plan for improvement or alternative arrangements for the Group within 15 days of submission of the cancellation request.

These contractual tools will provide protection for service performance and will help keep your attendees happy.

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