Demonstrating the Value of Experient Contracts

to Our Clients

Patricia A. Ekers, Esq.

ESN Encounter

April 2009, Chicago, IL©Experient. Unauthorized Use Prohibited.

Objectives: Demonstrate Value

How will we do this? • Show why our contract clauses can be the

best• Discuss the clauses• Do a side-by-side comparison of Experient vs. non-

Experient clauses

• Provide take-a-ways • Talking points• Chart of comparisons

Why Use Experient contracts?

• Save time• Save money• Reduce financial and other liability• Take advantage of our experience with F&B,

function space, flow patterns, etc.• Maximize subsequent options• Increase budgeting accuracy

All of this achieved though “templementation”

Show Your Stuff – Seven Great Examples

1. Attrition

2. Cancellation (both Group & Hotel)

3. Lowest Rate Guarantee

4. Unavailability of Other Facilities

5. Room Audit

6. Outside Vendors

7. Extra charges

#1 Attrition – Discussion

IMPORTANT NOTE IN CONTRACTS:

• The absence of an attrition clause means 100% attrition!!

• THEREFORE, an attrition clause (or a “no attrition” clause) is a good thing in our contracts!!

(i.e., anything is better than 100% responsibility)

Attrition – We Have Desirable Attributes

• CUMULATIVE !!CUMULATIVE !!• Client Uses % During Meeting (rather than early)• Clause references “final adjusted” room block (rather

than original room block)• Group gets for credit for OOO, walked, miscoded and re-

sold rooms• Re-sale clause (Hotel to mitigate damages) • Audit (discovers rooms outside block)• Use a % in formula (rather than full single rate)

AttritionCumulative vs. non-cumulative

Sample Scenario

Group books 500 sleeping rooms at $200 eachMon Tues Wed Thurs Fri100 100 100 100 100 = 500 Rooms

Group’s actual pick-up as follows:Mon Tues Wed Thurs Fri125 50 125 100 100 = 500 Rooms

• With cumulative attrition, Group pays zero !!!• With regular attrition, Group pays $200 x 50 = $10,000

(due to Tuesday’s “shortfall”)

#2 Group Cancellation – Let’s Compare

Experient contracts:• Hotel does have duty to try to re-sell (in most)• Group gets credit for re-sold rooms• Little or no F&B• $ due after meeting (and invoice/ledger)

Non-Experient Contracts:• Hotel does not have duty to try to re-sell• Group does not get credit for re-sold rooms• Lots of F&B liability• $ due right away (at time of cancellation)

What if Hotel Cancels?

Non-Experient Contracts:• No protection – Group just walks away • But…what about Group’s costs to re-schedule,

re-locate, reprint programs, etc???

Experient Contracts:• Goal: Try to negotiate in a “Hotel Cancellation” clause such

as:

CANCELLATION BY HOTEL In the event Hotel cancels …Hotel shall be liable to Group for all damages, direct and indirect, which Group may suffer, including all costs related to rescheduling the room block and function space…including but not limited to…research alternate facilities…airfare…increase in room costs…program printing…etc.

#3 Lowest Rate Guarantee – We Really Shine Here

Non-Experient contracts:• Rarely a peep about this – Group is stuck with

original contract rate

Experient contracts:• Many have a clause that states, “Should a lower

rate be discovered, Hotel agrees to offer that rate………..”

Lowest Rate Guarantee -Here’s a Sample

From Hyatt Long Form

Lowest Rate:………..Hotel agrees that the Group will be guaranteed the lowest rate in-house over the meeting dates. Exceptions include …………This guarantee applies to rates made available to the general public, either through the Hotel reservation department, 800 reservation service, or any online distribution channel, other than online channels where a customer cannot choose the hotel or brand, i.e. Priceline. Should a lower rate be discovered before cut-off, the Hotel agrees to either 1) offer that lower rate to any of the Group’s attendees who meet the booking restrictions of the lower rate or 2) remove the lower rate from all distribution channels.

#4 Unavailability of Other FacilitiesWe’ve Got it Covered

What happens if Force Majeure event affects convention center?

Non Experient Templates:• Haven’t seen it mentioned

Experient Templates:• Mentioned in most long form templates

Unavailability of Other Facilities – Sample Clause

From Starwood Long Form Template

Unavailability of Other Facilities: Confirmation at Hotel is contingent upon the Facility Name (“Facility”) being available for Group’s use over the meeting dates. If for any reason the Facility is not able to provide the required facilities to Group, then Group may terminate this Contract with written notice to Hotel without liability as long as such notice is taken within (30) days of notification of non-availability or limited availability from the Facility but not later than Date.

#5 Room Audit – Helping Our Clients Achieve and Maximize Pick-Up

Non-Experient Contracts:• Rarely a peep about room audits

Experient Contracts:• Many have a clause that states,

At the Group’s request, Hotel's in-house guest list will be compared with Group's registration list. Any guest room occupied by an individual on Group's registration list, but not coded to Group within Hotel’s system, will be credited to Group's pickup, regardless of room rate or reservation method (including Internet distribution channels). ………….

#6 Outside Vendor Clause – Just Another Way to Save $

Non-Experient Contracts:• Client is usually stuck with in-house or preferred

vendor, or paying a hefty fee (i.e., patch to AV costs, surcharges, etc.) to bring in its own vendor

Experient Contracts:• Many have a clause that states,

Group reserves the right to utilize the supplier of its choice for services or rentals in the areas of audio visual, exhibit decorating, security, floral, transportation, tours, Internet connectivity service, etc., with no surcharge from Hotel or from its in-house supplier.

#7 - Extra Charges – Client is Getting Charged for What??

Non-Experient Contracts:• Very silent on this issue – Client gets stuck with all kinds of

miscellaneous fees

Experient Contracts:• Many have a clause that states,

Fees Added After Contract Execution:Group and/or its attendees will not be liable for any additional fees such as energy surcharges, resort fees, or any other fees that are added to the individual or Group guest room folio ("fees") other than those specified in this Contract unless Group agrees to such fees in writing or unless such fees are in the form of an additional tax, city ordinance or state or federal law.

In Summary:Demonstrating Value

How About an Acronym to Remember?

U-CLEAR-O Unavailability of Other Facilities + Cancellation +

Lowest Rate Guarantee + Extra charges +

Attrition + Room Audit +

Outside Vendors = Value !!

Please contact for further information:

Bridget B. RussellNational Account Manager

Experient, Inc.651-402-7450 or email at bridget.russell@experient-inc.com

THANK YOU!THANK YOU!