Teshania Blackwell's Conference Planning Tips
Negotiation Is Key: Attrition Costs
Last month I introduced my colleague in ministry and
business, Teshania Blackwell as a part of our
team of experts ready to assist your ministry.
I hope you found her advice on conference planning
helpful and enlightening. Today we're continuing our
conversation by
concentrating on the term ATTRITION.
For those of you who didn't catch last month's tips or
introduction, here's a quick recap from Teshania who
bring's a wealth of conference negotiation and
planning
experience to the table, from her extended time
working for Juanita Bynum Ministries until late 2005.
During her time working for JB Ministries she was
instrumental in planning and negotiating most of the
conferences and special events.
Here's our recent Q&A correspondence:
DO: Let's talk about ATTRITION. What are
attrition costs?
T.B:
Attrition costs are the room costs the hotel holds you
responsible for should the rooms that you blocked
are not filled. For example, if I block off 100 rooms for
the conference attendees and only 50 get filled, the
hotel will hold your organization responsible for the
payment of the other 50 rooms for the amount of
nights that the room was blocked. If I blocked the
room for 3 nights, they will hold me responsible for
payment of the three nights for each room. If I have
those 50 rooms left, blocked off for 3 nights, that can
run into quite a bit of money.
DO: Tell me about your first RUDE
awakening
concerning attrition costs.
T.B.
My first rude awakening with attrition costs was when
we had to cancel a particular conference. Because
the cancellation was not within the time stipulated in
the contract, we were being held accountable for the
rooms that were blocked for that particular time. We
should have stipulated in the contract that the
attendees would be responsible for their own rooms,
but we just blocked the rooms and did not stipulate
this, therefore we became responsible. The hotel
claimed they did not have ample time to make use of
the rooms that were blocked. We were also going to
be held responsible for payment of the rooms that we
blocked off for our own staff use. What saved us was
the fact that there was a hurricane around that time in
the city and people had to be evacuated coupled with
the conference host getting ill and able to have the
doctor verify and document the illness. That was
really a close call. We would have been looking at
hundreds of thousands of dollars in costs.
D.O. : What do conference planners need to
keep in mind regarding attrition costs?
T.B.:
Conference planners need to keep in mind
deadlines that the hotel gives in relation to room
responsibility. If the hotel says, 20 days out from the
conference you will have to revisit whether you still
need those 50 rooms, then you need to do so. You
may then drop it down to 30 so you will not be
responsible for the other 20. You must give the hotel
an opportunity to make use of those rooms.
Whatever number you drop it down to, is the number
you will be responsible for. It is very important that
you keep up with the number of room blocks that are
filled on a constant basis. When you are not sure, it
is safer to be under than over. In freeing the rooms
you are not sure of, you can also stipulate in your
contract that if the rooms are available and more are
needed, these attendees will still get the conference
rate and you can negotiate whether you will get the
credit for the room being filled. They also need to
keep in mind wording their contract in relation to
attrition and room responsibility and place that solely
on the conference attendee. For example, In the
contract it needs to be stipulated that the room
responsibility is that of the attendee. If for every 20
rooms I get a comp room, and lets say that the 20
rooms are reserved, but then 10 of the room
reservers don't show up. At that point, it is between
the person who reserved the room and the hotel. If
they have not canceled the room in enough time, I
still am owed my comp room.
D.O. Is there any way around incurring
attrition costs?
T. B. Yes, there is a way around it. That way
is to simply keep track of your room blocks, stay
within the deadlines of the hotel to give them ample
time to make use of the rooms, Make sure you
stipulate in your contract that you are not responsible
for the attendees rooms once they reserve a room,
Natural disasters, and near death illness.
If you have a question regarding conference planning,
feel free to email
TeshaniaB@DandCMultimedia.com
and she will be sure to answer question. Plus she
may
even share it next time.