
Business, Catering, Event Management, Venues
39 proven event planning strategies for negotiating with venues and hotels – Part 1
Note: This post is the first of a two-part series on event venue negotiation strategies. Click here to read part 2 of this article. Not only is finding a venue the biggest decision you will make for your events, but it is also usually the biggest line item expense in your event budget. So it's critical that you know all the tips and tricks for negotiating with event venues and hotels. (And if you are a venue, it's important to know what customers are looking for and how they might assess value so you can guide them to solutions and pricing that will benefit them the most). We talked with dozens of event planners about their venue / hotel negotiation process and wanted to share 40 of their best practices. Note that you should approach venues with the understanding that EVERYTHING is negotiable. Never accept the first price you are given, and never sign a contract until you have read all the fine print and are comfortable with what is on paper. So without further ado...
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#1 - Start with your 4 big requirements
At minimum, the four pieces of information that are most critical in starting venue negotiations are:- Budget
- Event dates
- Head count
- Space requirements (occupancy, accessibility, electrical, A/V, etc.)
#2 - Bonus insider tip
Many planners feel that initially divulging your budget puts you at a disadvantage in hotel negotiations, so you can always say something like "We are still working on our budget so just give me your standard rates for now." At that point, the venue will probably show you their top pricing, and you can negotiate down from there and potentially share your budget numbers with them as negotiations proceed. However, if you have worked with the venue before and have a comfortable working relationship with them, then sharing your budget out of the gate may enable them to help you work within it better and get more for your money. This all depends on your comfort level with the person and venue you are negotiating with.#3 - Be realistic about your head count
Don't estimate high when it comes to your head count. A high head count will lead to a high estimate for food and beverage and a larger reserved room block, and since most hotels will ask for minimums for both of these (more on this later), you don't want to lock yourself into guaranteeing a high minimum spend for catering and rooms (which leaves you vulnerable to paying penalties if you don't meet your minimums).#4 - Provide clear timelines and expectations
We have seen event lead times shorten dramatically in the last 5-6 years, and as event turnaround times get shorter, you may have less time to negotiate. So when you start the process, provide the venue with a timeline that includes the date when you need a proposal; when you will provide a counter-proposal or feedback; and your target date for signing a contract with a venue. This makes your timeline and intentions clear to all parties from the start.#5 - Get quotes from multiple venues
Even if you already know the venue you want to use, get multiple quotes from comparable venues so you can compare costs and make sure you are getting a good value. In addition, you can use negotiations with one venue to drive the costs down with another venue by playing them against each other.#6 - Don't be pressured by sales tactics
Once you have set your budget and your schedule for booking a venue, you should not let any sales ploys move you off course. Often venues will say that they have another party that is interested in booking the same space as you for the same time period. Or that their special pricing will expire after a certain day. Or that they don't typically lower their prices because they have a premium venue that is in high demand. Any or all of these may or may not be true, but you have no idea of the validity of them, and besides, you should not be rushed to make a decision based on their business motivations. Don't take the bait ... these are pretty standard sales tactics, and if the venue really wants your business, they will work with your budget and timeline. And if they don't, then you can quickly eliminate them as a candidate and focus on other venues.#7 - Consider non-hotel venues
Food and beverage and other ancillary costs are often much higher at hotels, and even though non-hotel venues may charge you for the event space, the savings you will see from using an outside caterer and other vendors may make it worth it to hold the event away from a hotel.Need a tidy place to manage all your event details (including all your venue negotiation details and pricing)? Planning Pod event management software and venue management platforms give you 26+ easy-to-use tools so you and your team have every detail ... and much more ... at your fingertips. Try Planning Pod free for 14 days.
#8 - Treat the venue manager as your partner (not an adversary)
The venue staff will be one of your biggest assets in making sure your event is a success, so why antagonize them out of the gate? In addition, you may want to book future events with the venue and so you want to establish a good working relationship with the venue manager. Approach everything as a negotiation and don't make unreasonable demands or ultimatums that make them reluctant to work with you. The golden rule applies here, in that you should treat them in the manner in which you would like to be treated.#9 - Look at things from the venue's perspective
The decisions that venue or hotel managers make are often driven by two primary considerations:- Booking the venue full every day of the year.
- Gaining maximum revenue from every event they host.