Unit 3 Exam Review Chapter 11 Legal Issues 8 of 48 Questions Negotiation o The process by which a meeting planner and a hotel representative or other supplier reach an agreement on the terms and conditions that will govern their relationship before during and after a meeting convention exposition or event o Everything needs to be negotiated o Dates Rates and Space You can only have two The planner can get the dates and meeting space he or she wants for a meeting but may have to give a little on the rate o Keep your eyes on the prize Negotiation strategies o Information to know about your group Profile of attendees Who they are what they do Demographics History Contracts o Everything must be negotiated national state local laws labor unions alcohol laws o An agreement between two or more persons consisting of a promise or mutual promises that the law will enforce or the performance of which the law recognizes as a duty o Offer Can be terminated in three ways Expiration of specific time Expiration of reasonable time Specific revocation by offeror o Hotel or other venue is usually the offeror o Written agreement proposed by hotel after negotiation o Oral v Written Contracts Better to have a written document Less chance for a misunderstanding Negotiating Contracts o Don t assume anything o Be specific o Go into the negotiation with a plan Contract provisions o Attrition Clauses performance or slippage Provide for payment of damages to the hotel when meeting sponsor fails to fully utilize the room block specified in the contract Cancellation Clause o Provides for damages if the meeting is canceled for reasons other than those specified in contract o Cancellation is provided without damages if it occurs within a specified time period prior to the meeting Termination act of God o Permits either party to terminate contract without damages if fulfillment of obligation imposed in agreement are rendered impossible by occurrences outside the control of either party o Includes things such as strikes sever weather transportation difficulties thing that are out of their hands etc Risk management o Stages Preparedness assessment and analysis Mitigation Response when and how Recovery property people reputation About the stages o Preparedness and Mitigation Contracts narrow or shift liability to responsible party or specify damages Insurance shifts some liability to insurance company Security hiring security guards mitigates risk of injury or loss o Response Not everything is in the control of planner Planner needs to have a risk team ready to respond after incidents Simple sending an announcement Complex coordinating evacuation and providing first aid o Recovery Paying insurance claims for losses suffered by organizer or exhibitors Actions to overcome any bad press upset members Main goal organization can survive financially and through public relations Workers comp Insurance issues o Convention cancellation policies Are a specialized form of protection insuring against unforeseen circumstances such as labor disputes inclement weather or damage to the convention or meeting facility Americans with Disabilities Act ADA o It is illegal to discriminate against or fail to accommodate people in wheelchairs with visual or hearing impairments food restrictions etc o ADA applies to meeting planners and organizers o They must Determine the extent to which attendees have disabilities Make reasonable efforts to accommodate the special needs at no cost to the attendee Guidelines for addressing ADA o General Areas Staff training Etiquette Language Role play o Provide opportunities for persons with disabilities to identify themselves and request accommodation Membership applications Meeting registrations Certification process applications Intellectual property o Music licensing The federal copyright act Music at a meeting is being performed whether its live or recorded Organization sponsoring the event is considered to be controlling the performance o Music licensing agreements American society of composers authors and publishers ASCAP Broadcast music inc BMI Failure to sign these agreements copyright infringement Organization sponsoring the event NOT the performers must obtain the requisite licenses o Recording or videotaping speakers Purpose Sell copies to meeting attendees Sell copies to those who couldn t attend Archival purposes Obtain written permission from the presenter o Occupancy rates rooms occupied total rooms National average Lowest on Sunday Highest on Wednesday 67 of revenue for hotels is from the rooms This can be a key point when negotiating Ch 11 Key Terms 1 Room revenue vs Food and Beverage a 67 of revenue is from the rooms b Food will still be there the next day with the ability to be sold but an empty hotel room for the night is a loss that can t be changed i The time machine hasn t been invented yet c Hotel doesn t make much money on coffee bars i Full meals earn more revenue 2 Rack Rates published rate or fee for the night a Half of the time sold for under rack rate on average 3 Dates rates and space only have two 4 Contracts and clauses a Negotiation b Acts of god natural disasters c Attrition clause Provide for payment of damages to the hotel when meeting sponsor fails to fully utilize the room block specified in the contract d Cancellation clause i Provides for damages if the meeting is canceled for reasons other than those specified either in the same clause or in the termination provision ii Cancellation is provided without damages if it occurs within a specified time period prior to the meeting 5 Americans With Disabilities Act a Who falls under b Who do you have to provide for c Special services are at no cost to the disabled d Fully defined in class notes above 6 Federal Copyright Laws recorded a Music at a meeting is being performed whether its live or b Organization sponsoring the event is considered to be controlling the performance 7 Stages of Risk Management i Preparedness assessment and analysis ii Mitigation iii Response when and how iv Recovery property people reputation Chapter 12 Technology 7 of 48 Questions Going Green o Reducing paper o Online registration and RFPs o Virtual tours Virtual site selection o Online RFP s o Open bidding on the web o Virtual tours Hotel directed site visit tool 360 degree views of properties o Industry information portals CVB Web pages Mpoint Marketing and Communication o Web sites and strategic communications Clear easy to find