Every time I read in a contract that we must attain a certain performance before we receive the concessions, it feels like being a child negotiating an allowance. (Which I never even had growing up!) For those of you who know our principles at The Howes Group, you will know that we understand that the hotels are a business, as we too are a business. We also understand that the risk is to be shared while having a performance percentage invites uncertainty back in to the agreement.
Every hotel and every brand has a different way to manage risk and it is up to you to determine the edge of your own risk tolerance as it is for you to understand the hotels’. Because of our extensive dealings with hotels from coast to coast, we see trends that emerge based on the volume of business that we produce.
As you know, every detail within the contract is on a sliding scale. If you add more requests, then adjustments are often made somewhere else. Based on where you feel your organization is going to be at the time of the meeting, you can best assess whether you wish to base your costs on factors you may not be able to control. For example, if you feel your attendance is going to be strong and you have a comfort in your performance, then you are better able to commit to a moving target.
Each group we work with has a different level of risk they are willing to take. Knowing your risk tolerance customizes these discussions. That is 100% guaranteed.