Jeff Berger (Negotiating a Balanced Contract) -- President, Conference Planning Resources, Ltd. (Go to: http://www.conferenceplanningresources.com/home.asp) 

What was most revealing about Jeff Berger’s presentation is that virtually anything found in a hospitality contract is negotiable. Moreover, it’s entirely reasonable to add clauses that attenuate or eliminate some of the risks that meeting planners are exposed to. This would include items that would address risks associated with client management.

One particularly interesting clause that Berger reviewed had to do with compensation confidentiality.

I’ve argued in my presentation and elsewhere that a large part of dealing with conflict of interest or ethics concerns with regards to the receiving of commissions or referral fees from suppliers is most effectively addressed by full disclosure vis-à-vis the client.

Similarly, Berger argued in his presentation that a client should be made aware of revenues earned by meeting planners from other sources, i.e. hospitality/accommodation commissions (which commissions, incidentally, have no impact on the price a client has to pay), but it is not necessary nor even desirable to disclose the amount of the compensation.

Berger made a compelling argument for the case that dealings and discussions with lower level employees of the meeting planner’s client can become tainted or coloured if they become aware of the nature and extent of the compensation.

Berger reviewed his suggested wording for a hospitality contract clause that effectively prevented the amount of commission/referral income to the meeting planner’s client.

It’s my view that when it comes to contracts and their wording, meeting planners have absolutely nothing to lose and everything to gain by adopting a ‘take charge’ posture vis-à-vis suppliers and contract wording negotiations. 

For more information on Building Additional Revenue Streams and how to negotiate with suppliers click on the For More Information link in this posting.