Legal Concerns for Covid Era Meetings…and beyond

The meetings industry is finally moving on from COVID. The disease isn’t totally gone, but hopefully soon it will soon be just a bad memory. While that may happen, the impact of COVID will be felt for a long time -- certainly with meeting and convention planning.

Hotels currently have the upper hand with contract negotiations. The rush to return to in-person meetings created a “seller’s market”, meaning that there is tighter availability for the immediate future. And prices are skyrocketing, both due to inflation and profiteering. Contract terms are getting tougher to negotiate, and are focused on limiting risks for hotels.

It is clearly a more difficult task to reach a fair contract. But this should be the ultimate goal of planners as well as suppliers. Equitable contract terms with appropriately shared risks will help cautious groups return to in-person meetings, and book larger room blocks with more food & beverage events.

The number of important contact issues to consider is growing. Post-COVID staffing issues, inflation, and other factors are all influencing contract provisions. Issues to consider include:

• Increasing food prices.
• Staffing levels.
• Force Majeure cancellations.
• New hotel charges.
• Sustainability measures.
• Possible COVID resurgence and CDC guidance.
• DEI initiatives.
• Impact of skyrocketing airfares.
• Safety precautions.
• New controversial laws, including those restricting abortion and voting rights.

This list is only partial, and it may change at any time. 6 months ago concerns over inflation and controversial laws were probably less for many groups. And due to the new controversies that seem to arise every week, in a few more months there may be 5 or 6 additional topics to negotiate.

Not all of these issues will impact all groups the same. Some meeting hosts will not be concerned about rising airfares, and others may not be focused on sustainability or DEI. The important point is that each planner should create a list at the start of site selection of the critical factors for their meeting group, and then focus on those issue when choosing a destination and venue, and then negotiating the contracts.

So how do planners and suppliers reach fair contracts in this tough market? Here are a few tips:

1. Before starting with site selection, planners should consider which destinations would be the best fit for their meeting, considering price, accessibility for attendees, safety concerns, and compatibility with the group’s likely attendees.
2. Planners should provide hotels with a list of “must-have” contract terms at the start of negotiations; or better yet, list them in the RFP.
3. Planners should also have alternative options if acceptable meeting terms can’t be agreed upon. Limiting the choice to just one hotel is great for that hotel, but usually not for purposes of achieving a great contract from the group’s perspective.
4. Both parties should keep the overall goal in mind: a fair contract for both parties. An agreement with unrealistically low prices may cause the quality of food and services to suffer. And a contract with hidden fees, excessive charges, and punitive terms may lead to an unhappy customer, and make repeat business less likely.

Disclaimer: This article is for informational purposes only, and does not constitute legal advice. Those seeking legal advice should contact a competent attorney of their choosing.