Avoid pitfalls and protect your event
Contracts are the lifeblood and backbone of the meetings industry. Negotiating contracts is the first step before confirming speakers, color themes or catering options.
To better support planners in 2025, Smart Meetings chatted with Tyra Warner, associate professor and chair of the Department of Hospitality, Tourism and Culinary Arts at College of Coastal Georgia, to learn what they should consider when entering the contract negotiation phase of their event planning.
Budget Cuts and Cancellations
Shifts are bound to happen, especially for financial reasons. It is always good to be prepared for last-minute changes or cancellations.
Read More: Wellness on a Budget: Five Cost-Effective Ideas to Elevate Wellness in Your Meetings
“We drafted a new clause specifically for this issue…to say if government funding gets pulled, they can terminate the contract without liability,” said Warner.
Warner also advised using force majeure clauses to deal with any issues arising from government funding cuts. Warner also suggests adding a “frustration of purpose” clause if the reason the event was planned is no longer viable. That way, a contract can be ended without any issues or penalties.
Make Your Force Majeure Better
Having a reasonable force majeure in place means fewer headaches for planners if something happens that forces an event to pivot.
Avoid boilerplate language and focus on modern risks that could impact your event, such as inflation, AI distributions or geopolitical instability.
“I always suggest that people add sort of a catch-all phrase, like ‘or similar occurrences beyond the control of the parties’—that way, if aliens are landing or something we didn’t anticipate [happens], it’s covered,” said Warner.
Hidden Fees and Surcharges
When booking with a hotel, look for fees and surcharges. Sometimes, the numbers can get lost in the fine print.
Read More: Event Contracts: What to Watch in 2025
“The first thing I do when I review a contract is go through and put dollar signs everywhere that I find a fee or surcharge, so I’m sure I captured them all,” said Warner.
Ask the venue to provide a breakdown of all fees. This includes administrative fees and any extra additions that are being factored in. Make sure the breakdown includes a description of what each fee covers.
F&B Prep
Typically, the cost of F&B is based on what’s happening in the market.
“I think it goes to the wisdom of making sure you lock in food and beverage prices as early as you can,” Warner offered.
By negotiating F&B pricing upfront, planners can ensure a cost cap clause to avoid dramatic price hikes. If your event is an afternoon lunch, consider not including dessert; it will help reduce the overall cost.
Data Security
Data: It is one of your attendees’ biggest assets and may require the most forethought.
Who is in charge of it? How long will attendee data be stored?
Read More: Smart Tech: The Race to Data Security
“Make sure the meeting organizer owns the attendee data and that the hotel can use it for service purposes only—not for marketing,” said Warner.
Transportation Cost and Risks
“Gas prices fluctuate, so we see changes in surcharges in transportation contracts,” said Warner.
When negotiating transportation contracts, look for fuel surcharges and make sure there is a liability.
Past Success is Also Important
Venues and hotels like to know that groups have a history or track record of successful events and are considered low financial risks.
Planners should be able to provide data on pickup dates, F&B spending and no-show rates. This helps to demonstrate consistent room block fulfillment and possibly negotiate better terms.
“Tracking all of that data and being able to convey it concisely strengthens your position,” said Warner.
Ultimately, it helps to ensure that every aspect of your contract is negotiated. Being proactive in all areas can only benefit you, your event and your attendees.
