Don’t just bank on goodwill flexibility of suppliers, also manage client expectations. Photo Credit: AdobeStock/Lustre Art Group
At a time when “wait-and-see” is the norm in the events world, planners are finding themselves the unfortunate middleman between non-committal clients and suppliers.
Clients' last-minute changes to events can trigger a cascade of challenges for planners, including budget overruns, contingency planning and increased documentation. There’s also the possibility of attendee fallout and compromised quality, as preferred suppliers may no longer have availability.
Yet ‘last-minute’ syndrome is becoming increasingly common. Geopolitical uncertainty has made CFOs and legal teams far more cautious about committing significant budgets to events in locations that could become problematic.
The approval bottleneck
Catherine Chaulet, president and CEO of Global DMC Partners, says: “Clients are doing their due diligence by selecting destinations, negotiating terms, building out programme details, but they're holding the pen when it comes to signing.”
The challenge for our industry is that venues, hotels, and DMCs can't hold inventory indefinitely without commitment.
“Clients are doing their due diligence by selecting destinations, negotiating terms, building out programme details, but they're holding the pen when it comes to signing.”
Catherine Chaulet, president and CEO of Global DMC Partners
Corporate travel policies are not helping either. Organisations are implementing stricter approval processes for international travel, and individual attendees may face internal hurdles that weren't anticipated when the event was first planned.
Smaller regional events
One workaround is to reformat singular, global events into smaller and more regionally focused events, suggested Shauna Whitehead, VP, customer relations at BCD Meetings & Events.
And where companies still opt for larger-scale events, venues still need to be secured at least two years in advance – which makes it key for planners to negotiate with suppliers for flexible terms that provide for cancellation and attrition in the contract.
Build goodwill
The success of negotiating flexible terms is not a given, and relies heavily on hard earned trust and goodwill.
“Align with some key suppliers and leverage relationships through extended booking periods with more flexible terms,” Whitehead shares.
When you've built trust with DMCs, hotels and vendors over time, they're more willing to hold space or offer favorable cancellation terms. That goodwill can become incredibly valuable in uncertain times.
“Align with some key suppliers and leverage relationships through extended booking periods with more flexible terms.”
Shauna Whitehead, VP, customer relations, BCD Meetings & Events
Client management is key
It is not advisable to fully count on suppliers bending over backwards and accommodating every last-minute request.
Whitehead says client management is equally important.
Clients must also be made aware of realistic commitment timelines; the deadlines and milestones as set out in contracts with vendors and suppliers; as well as the consequences and trade-offs of last-minute changes or commitments.
“Document everything in writing, including scenarios for various commitment timelines,” advises Chaulet.
“When clients understand that waiting until six weeks out will limit their restaurant options or require premium pricing for AV equipment, they can make informed decisions about the trade-offs.”