5 Hidden Venue Fees to Avoid
Wendy Parsley
Events. All day. Every day. Strategize, produce, promote, and analyze programs that drive revenue opportunities for our clients.
To say that there is pent-up demand and need for hotel meeting space and event venues is an understatement. Availability in a lot of major cities is limited - even for dates going into 2023 and 2024. That's not a typo, folks. Companies are already booking event space for 2024.
That's a lot of good news for the events industry. But hidden venue fees are making their way to event contracts and that is not good news for many #eventprofs.
Event planners are some of the most detail-oriented folks on the planet. They have to be. Even if they know to ask upfront about ancillary fees, service charges, and admin costs, it doesn't always guarantee there will be no surprises.
Here is a list of some of the fees and extra charges we tackle on a regular basis and some tips about how to avoid them (or at least reduce them).
Internet Access
Might as well start with the most frustrating one first. It is so frustrating to have one venue charge nothing for internet access and a similar property down the street (or worse a sister property) charge $15,000 for the same level of access. Try to negotiate for free internet access - even if it's just for a basic package for your attendees. If that isn't possible, go for a % discount on the final fee or try to cap a flat fee for your event. Alternatively, negotiate a certain bandwidth package at a specific price point.
Resort Fees
This fee is most often charged by resort properties and includes a number of amenities, such as fitness center access, free/discounted parking, internet access in the guest rooms, etc. The list of amenities can be quite impressive, but the amount you pay for it can hurt your event budget. In many cases, a property's resort fee can't be avoided completely. However, you can negotiate it down.
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Staff/Crew Sleeping Rooms
Depending on the size of your event, you could have a sizeable staff/crew list that requires sleeping rooms. Try to estimate how many staff rooms you may need at the contracting phase and negotiate a discounted rate for those rooms. Even a 10-15% discount on your standard guest room rate will make a difference and your show budget will thank you. Pro tip: Negotiate an upgraded suite experience for your executive team and/or VIPs.
AV Service Fees
Depending on the city and the specific hotel requirements, you may have to pay a fee to bring in an outside AV company. They can be labeled as production fees, AV supervision fees, etc. Regardless of what they are called, they can be expensive. Instead, talk with the in-house AV provider and your sales rep early in the negotiating process and let them know if you have a preferred AV company you'd like to bring. In most cases, the in-house provider will need to do and provide certain elements (like rigging, power, etc.) and that is fine. Integrate their services into your program plan and budget upfront and avoid the costly service fee surprise.
Package Receiving Fees
Most hotels have a set fee schedule for receiving, handling, and delivering packages for guests and events. Be sure to look at this during the site selection process. Negotiate either a flat discount or a certain number of packages for free before incurring any charges. You'll want to have an idea of the kind of packages you'll ship to the event -- but this will definitely help you avoid budget scope creep.
If you are soliciting sponsors for your event, think about ways you can create a sponsorship package to help offset some of these fees. Wifi sponsorship anyone?
This isn't an all-inclusive list by any means but covers a few of the big ones that can cause a lot of budget scope creep.