Service Level Guarantees for Your Events

The information provided in this video does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information in this video may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.

Introduction:

Contracts can be tricky, especially when ensuring a certain level of service is delivered. But what if there was a clause you could add to your contract that guarantees the level of service? That's the question we've asked two leading industry attorneys in our latest video interview. This compelling discussion aims to give meeting and event planners and professionals actionable insights that could make all the difference when signing your next contract.

In this video, Sean Whalin (Co-founder and CEO of HopSkip) sits down with Barbara Dunn (Partner at Barnes & Thornburg LLP representing groups) and Lisa Sommer Devlin (Devlin Law Firm, P.C. representing hotels) to discuss how planners should approach the conversation with their hotel partners to ensure a certain level of service is delivered for their event.

Video Transcript:

Can a clause be added to an event contract for a guaranteed level of services?

00:12 | Barbara Dunn
I think this question illustrates a concept that Lisa and I've talked about over the years: we can write anything we want in the contract, but just because we're going to write it doesn't mean it will make it happen. And it doesn't mean you will pursue a breach of contract if it doesn't happen. Right?

So this discussion of quality facilities and the rest always needs to happen and live outside the contract from the site selection phase down to the meeting performance phase. And as you've heard me say in recent webinars, more site inspections, more visits, more pre-planning visits because things are changing and it is important to understand staffing, facility quality, and all the rest. So I will say that as a practical matter, in the contract, I certainly think groups can have placeholder language that might talk about a certain level of quality or service.

01:10 | Barbara Dunn
Some groups even specify front desk help, talk about banquets, ratio workers, and all the rest. I certainly think you could do that if you chose to do that.

But at the end of the day, I think having the expectation early on and if there are critical services and facilities for your group, for example.

01:35 | Barbara Dunn
Your group doesn't have a planned luncheon.  Any day and because of the hotel's location and the limited time, people will eat at the restaurant, room service, or whatever the case.

01:48 | Barbara Dunn
Make sure you're saying that in the contract.  Ensure you're getting commitments on the open restaurants and room service available during those hours. Those are things that you can specify and troubleshoot as it relates to just the good quality staffing and services, I think that's something that you've got to monitor; you've got to be objective. It also goes to the quality of the facilities.  I want to say that I think labor shortages may be getting a bit better.

02:19 | Barbara Dunn
The other thing we're seeing is technology coming aboard the mobile key, for example. That means I don't have to stop at the front desk, saving time. There are some of this automation that comes along. All those things are going to help on the labor side.

But at the end of the day.  What kind of meeting is this? Is this a high-end resort, and we need the service daily, and that's expected?  Whatever is important to your group, I think putting some placeholder language and specifics in the contract is a good strategy. Still, nothing is going to substitute your first-hand review and evaluation.

And if you do those evaluations and there are issues, be sure to document those in writing pictures, but follow up with the hotel as to what you want to have happened ahead of the meeting and what needs to change? That process, that dialogue, is key.  Because, again, no one wants to get on-site and have these issues, and sometimes the fact that some of these issues surface ahead of time is a good thing to troubleshoot to make sure they don't happen.

But at least I know that staffing fluctuations, and labor shortages, can be a challenge for hotel.

03:36 | Lisa Sommer Devlin
I couldn't agree with Barbara Moore because this works better outside the confines of the contract.

Scheduling meetings with maybe the head of Housekeeping, scheduling meetings with the head of Banquets to find out what they're available to do, what is realistic to expect, and what they're providing.

I see clauses like, "You will agree that there will be daily housekeeping" because some hotels don't necessarily have that in today's world. So you can put specific requirements or staffing ratios.

What I don't like seeing is you will have the same staffing levels as you had in 2019 because staffing levels fluctuate daily depending on the hotel's occupancy and the nature of the events that are going on.

04:24 | Lisa Sommer Devlin
Sometimes if it's a huge event taking up the whole hotel, the hotel will bring in workers from other properties that are not busy. It's called "task forcing."

If you haven't heard of "task forcing." The hotel will bring in extra employees to help. So it's not necessarily about staffing levels; as Barbara says, it's about meeting the specific needs of your event.

I was at an internal client event recently, and they brought in three different kinds of recruiters.  One was a management-level recruiter, one was an hourly-level recruiter, and one was a temporary help recruiter. And they were all talking about how people returning to the hospitality industry are approaching their jobs, what they're looking for, and how hourly employees don't want to have a set schedule. They want to be able to pick and choose when they want to work. So hotels are struggling with getting quality staff to hire.

If you put in a clause that says you will have a specific number of people, the hotel may not have enough bodies. So what you need to do, as Barbara said, is have those communications leading up to your event.

05:33 | Lisa Sommer Devlin
Once you get there, it's too late. So before you are there, communicate with the hotel about what they can realistically provide, what things may or may not have changed since the time this contract was signed, and how you will address it.

05:48 | Lisa Sommer Devlin
Barbara's example of the luncheon is that there's no time for lunch, and no food is being provided. Maybe you say, "We will guarantee that the restaurant will be open, but also we will have sandwiches available for purchase," or "We'll have a kiosk outside the room so people can grab and go."

There are many options, but it takes brainstorming on both sides to ensure you're meeting the needs and expectations. This is a tough question, one that is going to be unfolding as lifestyles and things change in our industry.

Conclusion:

Understanding contract clauses to ensure a guaranteed level of service is an evolving issue in the events industry, made even more challenging by fluctuating staffing levels and changes in how people work. This enlightening discussion with industry attorneys Barbara Dunn and Lisa Sommer Devlin has shown that open communication, flexibility, and a proactive approach are crucial beyond the text of a contract.

Remember, a successful event is not just about what's written in the contract; it's about constant dialogue, understanding the realities on the ground, and anticipating changes. Stay tuned to HopSkip for more insightful discussions and expert insights to help you navigate the dynamic world of event planning

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The information provided in this video does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information in this video may not constitute the most up-to-date legal or other information. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter.