Selecting the right venue is a foundational step in planning a successful event. The venue influences everything from the atmosphere and attendee experience to logistics, capacity, and budget. But this is just the beginning of the venue planning process.
In this blog, I’ll walk you through everything you need to know, from submitting your Request for Proposal (RFP) to negotiating favorable terms, so you can secure the best possible venue and contract for your event!
Why Choosing the Right Event Venue Matters
Your venue sets the tone for the entire event, impacting logistics, ambiance, attendee experience, and overall budget. A well-chosen venue creates a memorable impression, while the wrong choice can lead to a disappointing experience for your guests. To get started, consider these three main types of venues, not to mention a ton of stress for you.
Types of Event Venues
Hotel Properties: Hotels often provide convenient solutions for events with their on-site accommodations, catering services, and versatile meeting spaces. They’re ideal for corporate events, conferences, and multi-day gatherings.
Event Venues: Dedicated event spaces are specifically designed for hosting a variety of events and come equipped with adaptable layouts and essential technology, offering flexibility to fit your event’s unique needs.
Private Rentals/Mini Mansions: For a more personalized experience, private rentals and mini-mansions are perfect for intimate gatherings, masterminds, or creative retreats. These venues add a unique charm and relaxed ambiance that can elevate your event.
!! CHECK OUT THE BLOG POST: Event Space Showdown - Ballroom vs. Event Venue for a comprehensive overview of the pros and cons of each!
Crafting and Submitting Your RFP (Request for Proposal)
The RFP is an essential document that outlines your event requirements, helping both you and the venue determine if it’s a good fit. This initial step is vital for clarity on the event's logistics and sets the stage for negotiations.
At a minimum your RFP should include:
Event dates
Expected number of attendees
Days and times of the event
Meeting space needs
Food and beverage requirements
Sleeping rooms requirements
!! DOWNLOAD OUR FREE GUIDE: Venue Sourcing and RFP Creation Guide
The Step-by-Step RFP Process
Gather Requirements: Define your event needs as outlined above
Create and Distribute RFP: Send your RFP to potential venues.
Track Responses: Keep a detailed record of responses, communications, and quotes. (Planner Tip: Use a spreadsheet so you can view a side by side comparison)
Negotiate Terms: Review terms with shortlisted venues to ensure they meet your event’s needs.
Request Contract: Once you’ve finalized your choice, request the contract
Redline Review Contract: Carefully review and mark up the contract to confirm all dates and details are accurate and that all negotiated terms are documented.
Secure the Venue: Sign the contract after all terms are reviewed and agreed upon.
Note: For Airbnb or mini-mansion rentals, the process may differ as you’ll often work directly with the owner.
Working with Hotels and Event Venues
Understanding the revenue streams and priorities of hotels and venues can empower you to negotiate more favorable terms, secure room blocks, and mitigate risks like attrition.
Understanding Hotel Revenue Streams
Venues focus on three main revenue centers for events. These will play a role when negotiating your contract:
Rental space: Includes areas like ballrooms, breakout rooms, or outdoor spaces for the event.
Food and Beverage: Covers catering needs such as meals, snacks, and drinks.
Sleeping rooms: If attendees need accommodations, reserving sleeping rooms can be advantageous. Proper room block management helps you avoid under or over-committing.
Securing Room Blocks & Managing Attrition
Room Blocks
A room block reserves a specific number of rooms at a discounted rate for your guests. Hotels typically provide a unique link for bookings, making it easier for your guests to secure their stay and creating a cohesive experience for attendees. Room blocks are convenient for large events where attendees need accommodations, and they allow you to manage guest flow and create a more cohesive event experience.
Attrition
Attrition is the number of unfilled rooms within your reserved block. Generally, you’re responsible for covering the cost of unused rooms, so it’s wise to negotiate an attrition allowance. For instance, if you have 100 rooms in a block with a 20% attrition allowance, you’re only financially responsible for filling 80 rooms.
Attrition concerns are common among event hosts, so I always recommend negotiating an attrition allowance to minimize risk. This helps ease the worry of unfilled rooms, and it gives you some flexibility if attendee numbers change.
Negotiating Terms and Concessions
Negotiating with your event venue can be powerful step in securing favorable terms and saving money. With an understanding of the venue’s revenue priorities, you can request various concessions, discounts, and complementary services to optimize your event’s value.
Concessions
Concessions are agreements or compromises that you can negotiate with your venue to enhance your event while saving costs. While taxes or service fees are non-negotiable, many event deliverables can be discussed. Here’s are some ideas to consider:
Complimentary Requests
Room upgrades
Event stage setup
Speaker amenities (like charcuterie boards or gift baskets)
Complimentary room nights when a certain number of nights are booked
WiFi in event spaces
Fee Waivers
Package receiving if you need to ship items
Parking fees
Audio-visual fees if using a third-party provider
Event rental space fees
Discounts
Food and beverage pricing
Staff rooms
Audio/visual and internet services
Spa services
Room rates for days before and after the event
Venues are often open to negotiation if you know what to request, how to request it, and approach it persistently.
Contract Review & Red Line Process
After negotiating and agreeing on terms, it’s crucial to carefully review the contract before signing. Don’t rush—take a few hours to conduct a high-level, red-line review.
Grab your marker, take a couple of hours, and dive into the contract to make sure everything is outlined and detailed as discussed during negotiations. Don’t be afraid to mark the contract up! Make sure you understand their liability clauses, payment terms, and cancellation policies and that they understand the unique details of your event.
Contracts are generally written to favor the sender, so be diligent in making sure the terms are fair for both parties.
Protect Your Investment: Avoid Common Mistakes
Choosing the right venue involves more than just booking a space. With so many intricate details involved, it’s easy to be taken advantage of if you’re not aware of the nuances. Protect your investment by working with professionals who can source and secure the perfect venue while saving you time, money, and ensuring you’re contractually protected.
Learn more about our Venue Sourcing and Contact Negotiation Service, including a real client case study where we saved over $17,000 just in negotiations alone.
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