Professor Tyra Warner on the latest risk factors in this uncertain year
From force majeure to data protection, meeting professionals are trying to cover the unexpected in contracts during what could be a tumultuous year for business and the economy. Tyra Warner, assistant professor and department chair of Hospitality and Tourism Management at College of Coastal Georgia, has seen hotel negotiations from every angle. She is a practicing attorney, has her CMP designation and has worked as an event planner, a catering manager, a convention and visitor’s bureau sales manager—and is one of only two people in the entire world with a Ph.D. in hospitality.
She knows the unexpected always happens in an extreme seller’s market and has suggestions for strategically managing the liability that comes with live events.
“Since Covid, hotels have been negotiating hard, and that will probably continue,” she begins, then moves straight to what contract negotiators can do to manage that reality.
The State of Force Majeure
While very few planners actually had to invoke the “Act of God” clause in court during the pandemic, protecting an investment in case of a global emergency is still top-of-mind for many. Warner advises caution. “I see people wanting to put the kitchen sink into [contracts], but by nature the unexpected has to be interpreted based on the situation, so don’t try to be too specific,” she says.
Read More: 4 AV Contract Tips for New Meeting Profs
Fees in the Crosshairs
Hotels have followed the lead of airlines to boost revenue by tacking on fees and surcharges, and this proliferation of unpopular upcharges have become a cause celebre with sourcing negotiators and politicians alike. “A fees and surcharges clause is something everyone should have,” Warner says. To avoid such unwanted surprises as a power surcharge or administrative fee, she suggests language stating the group is responsible only for fees or surcharges specified in the contract.
While the incoming administration in Washington may have different priorities, Warner notes that a trend toward transparency in hotel pricing has been going on for a while and will probably continue.
A Rush to Data Protection in the Age of AI
A focus on data protection that started with General Data Protection Regulation (GDPR) in Europe has expanded with each cybersecurity breach. Contract clauses need to spell out which parties are responsible for collecting, protecting and distributing data. Warner thinks there are almost always two sides to the story. “I’m seeing both sides saying that the other side has to protect the data when the responsibility falls both ways,” she observes.
Read More: How AI is Revolutionizing Travel and Events
She is not alarmed by the trend of turning to AI for contract templates, which she sees as simply an iteration of “asking a colleague.” Where she sees gray area is around intellectual property. She suggests clauses that stipulate, “Any material used is the sole, original intellectual property of the speaker.”
“Leverage the economic power you bring to get more favorable terms.”
Negotiating Chicken and Eggs
Because prices continue to go up, Warner is not expecting a lot of flexibility in negotiating food and beverage prices. Instead, she sees menu prices being guaranteed closer to meeting dates. She advises wording that allows the kitchen to substitute the starch or the vegetable, but not the entree. “You don’t want inferior food product, but you need to manage prices, so it is difficult,” she says.
Find Your Flex
Warner’ final piece of advice: “Leverage the economic power you bring to get more favorable terms.” In other words, planners need to understand what they bring to the table—the economic value of their meeting.
This article appears in the January 2025 issue. You can subscribe to the magazine here.
