In our high-tech age, for better or worse, it has become almost a necessity to update one's smartphone plan or Internet service every year or two. Planners are now finding that the same is true of hotel contracts. Fast-changing technology is requiring planners to review and modify a number of aspects of their contracts, clarifying the speed of Wi-Fi, agreeing to clauses that limit third-party room resellers, or bolstering rules on digital security.
But with tech changing so quickly, this can prove challenging to planners trying to set terms years in advance or trying to figure out how their attendees' broadband needs may change from one year to the next. With this in mind, Successful Meetings spoke with several contract experts and planners to find out best practices for navigating this changing technological terrain.
The first point planners must keep in mind is that when it comes to technology, change is a constant. Even standard tech tools are serving more or different purposes than just a year or two ago. For example, Mark Cooper, chief executive officer of the International Association of Conference Centres, points out that it is not unusual today for an event to have five or more dependencies for its Internet access -- not just delegate emails and videoconferencing, but also live streaming, event apps, and (increasingly) virtual- or augmented-reality tools.
"Meeting planners should know what they need in relation to bandwidth, and the promise to provide a minimum level is something that is not unreasonable to include," says Cooper.
Corbin Ball, owner and founder of Corbin Ball & Co., agrees, emphasizing that planners should have a good idea of what their technology needs will be for the event -- based on tracking past usage -- as well as other technical details. From the perspective of the property, it must clearly understand the projected needs of the group meeting there and commit to these specific expectations.
All that seems pretty obvious, Ball grants. But, "the challenge, especially for larger events that tend to be booked several years out, is that the technology and demand drivers are changing rapidly," he says. "Prices (per bit) will continue to fall while demand will continue to increase. It's a significant challenge to estimate requirements and costs for an event five years from now."
For those reasons, contract clauses should address these potential shifts over the years.
D. Benson Tesdahl, an attorney with Powers Pyles Sutter & Verville, P.C., suggests including a "technology review clause," which would allow prices to be renegotiated based on changing needs of the attendees and the new technology the hotel may have introduced since the contract was signed.
"A 'technology checklist' should be used in negotiations with hotels to make sure all costs and items are covered prior to signing contracts so this does not leave surprises," he says. "This must be discussed with the group's in-house technical department to make sure all items are accounted for."
Beyond Bandwidth
Beyond Wi-Fi speed, technology is impacting other areas of contract negotiations. For example, a growing point of attention for IACC in its contracts has been to ensure inclusive pricing, providing delegates with the same high-speed Internet access in guest rooms, meeting rooms, and public areas.
With more than two decades representing hotels and resorts, Lisa Sommer Devlin, attorney with Devlin Law Firm, P.C., finds that one of the biggest impacts of technology in hotel contracts relates to booking and contractual commitments.
"As the technological avenues for booking rooms, and alternatives like Airbnb proliferate, groups are trying to manage their risk when making hotel commitments," she says.
The common negotiation point Devlin sees in the industry tends to be over "rate integrity" or "no lower rate" clauses requested in response to the many ways that rooms can be booked with changing technological tools. The hotels often see it as bad business to restrict booking opportunities by agreeing to such clauses. At the same time, meeting planners are increasingly trying to use technology to better control attendees' booking methods -- rather than encouraging attendees to take advantage of the many ways to book rooms.
"Event apps, websites, and booking policies that require the attendee to book in the official group block in order to attend the event eliminate the challenges posed by the alternative technologies," says Devlin.
Related to this are concerns about new technology that also allows "housing pirates" to find out the identity of potential meeting attendees and attempt to sell them rooms, luring them away from agreed-upon room blocks, and creating headaches for all parties.
Another issue that Ball expects to continue to grow is that of Internet security.
"Hackers are becoming increasingly more sophisticated and numerous," he says. "Details or at least a discussion about how the venue manages cyber threats, viruses, etc. on their system should be included [in contract negotiations]."
Tech Strategies
With the cost of in-house Internet in hotels skyrocketing, some groups may consider building in to the contract that they may bring their own A/V company. But Tesdahl explains that generally, the in-house A/V company of the hotel will have exclusive rights to control the Internet usage.
He urges meeting planners to negotiate the Internet cost up front with the hotel, regardless of what A/V company is used, specifically stating the bandwidth required in the contract and what the cost will be for that.
"This is a hard item to negotiate, but I would trade off other items to get this item incorporated," says Tesdahl.
Cooper agrees that any conversation about technology should include a careful look at the property's A/V offerings.
"There are times when it can be advantageous to work with a venue where the technology is delivered by a skilled in-house team and where the contractual obligations are part of a single contract with the venue," he adds. "If you are contracting an external A/V technology provider, especially for, say, 12 months or more in advance, ask about what protection you have if the venue switches providers due to performance issues."
With technology changing so fast, Cooper suggests that "technology" may need to be set as a standalone section on venue contracts, similar to how F&B, rooms, attrition, and cancellation often already are. Whether or not that's the case, he believes both parties -- property and planner -- should take steps in order to educate themslves on the nuances of changing contract rules.
"When the client can be clear about what they need from the venue and the venue can be clear about what they can provide, you get a win-win," he says. "Training in order to enable the planner to accurately convey their needs in their requests for proposal -- and so that the venue can ask the right questions and provide the right services for that meeting -- will help the industry manage technology effectively."
To that end, IACC created a simple online broadband estimator at www.iacconline.org/broadband-estimator, for both venues and planners to work out what they need to ensure bandwidth that can cope with their requirements. More education tools like this will help keep all parties on the same page, even as new pages are constantly being added.
Ball agrees that "continuing education is the key through events, publications, and newsletters addressing these issues," and also urges planners to look to high-demand technology events, such as CES, SXSW, Cisco Live, or Salesforce for examples of how to manage challenges in providing Wi-Fi.
While educating oneself is a valuable long-term goal for every planner, sometimes it's worth it to bring in an expert.
"Before the contract is signed, it is a good idea for both sides to bring in their IT experts to discuss in detail the expectations and the ability of the venue to meet them," says Ball. "There are times, especially for very high-demand or high-profile meetings, where an independent Internet consultant or analyst should be brought in to ensure all will run well."
Questions or comments? Email [email protected]
This article appears in the June 2016 issue of Successful Meetings.
Tech Strategies
With the cost of in-house Internet in hotels skyrocketing, some groups may consider building in to the contract that they may bring their own A/V company. But Tesdahl explains that generally, the in-house A/V company of the hotel will have exclusive rights to control the Internet usage.
He urges meeting planners to negotiate the Internet cost up front with the hotel, regardless of what A/V company is used, specifically stating the bandwidth required in the contract and what the cost will be for that.
"This is a hard item to negotiate, but I would trade off other items to get this item incorporated," says Tesdahl.
Mark Cooper,
International Association
of Conference Centres
Cooper agrees that any conversation about technology should include a careful look at the property's A/V offerings.
"There are times when it can be advantageous to work with a venue where the technology is delivered by a skilled in-house team and where the contractual obligations are part of a single contract with the venue," he adds. "If you are contracting an external A/V technology provider, especially for, say, 12 months or more in advance, ask about what protection you have if the venue switches providers due to performance issues."
With technology changing so fast, Cooper suggests that "technology" may need to be set as a standalone section on venue contracts, similar to how F&B, rooms, attrition, and cancellation often already are. Whether or not that's the case, he believes both parties -- property and planner -- should take steps in order to educate themslves on the nuances of changing contract rules.
"When the client can be clear about what they need from the venue and the venue can be clear about what they can provide, you get a win-win," he says. "Training in order to enable the planner to accurately convey their needs in their requests for proposal -- and so that the venue can ask the right questions and provide the right services for that meeting -- will help the industry manage technology effectively."
To that end, IACC created a simple online broadband estimator at www.iacconline.org/broadband-estimator, for both venues and planners to work out what they need to ensure bandwidth that can cope with their requirements. More education tools like this will help keep all parties on the same page, even as new pages are constantly being added.
Ball agrees that "continuing education is the key through events, publications, and newsletters addressing these issues," and also urges planners to look to high-demand technology events, such as CES, SXSW, Cisco Live, or Salesforce for examples of how to manage challenges in providing Wi-Fi.
While educating oneself is a valuable long-term goal for every planner, sometimes it's worth it to bring in an expert.
"Before the contract is signed, it is a good idea for both sides to bring in their IT experts to discuss in detail the expectations and the ability of the venue to meet them," says Ball. "There are times, especially for very high-demand or high-profile meetings, where an independent Internet consultant or analyst should be brought in to ensure all will run well."
Questions or comments? Email [email protected]
This article appears in the June 2016 issue of Successful Meetings.