YOU CAN'T ALWAYS DO IT ALL YOURSELF

More than ever, you need to make outsourcing work for you. Where can you find the best contractors? When should you involve them in your planning? What do they charge? In other words, where do you start?

Site selection firms

What are they?

The pure site selection firm of today is akin to a travel agent: It collects a commission from the hotel when it books and negotiates room nights for a meeting. Roger Helms and Bill Briscoe set up a unique business model in 1992: They licensed a nationwide network of former hotel executives who work essentially for themselves, each sourcing meetings for 10 to 12 clients. The model was so successful that many imitations followed.

What do they do?

At first, the world's HelmsBriscoes got a bum rap because planners looked at them as usurpers. They also wondered how a third party could get the best rate if it was taking 10 percent off the top. By the late 1990s, however, site selection firms were negotiating good rates with a large number of hotels because of their overall purchasing power.

What will it cost me?

Site selection firms help planners search for the right destination and property and help negotiate contracts. At HelmsBriscoe, an associate will 1) negotiate the entire contract until it is signed; 2) procure the hotel rooms and space but have the client negotiate the contract; or 3) negotiate the entire contract and manage the meeting (at HB, meeting management costs an additional fee).

When are properties researched?

When should I make contact?

In most cases, a site selection firm's fee is paid by the property. Typical commission is 10 percent of the room costs, although some firms collect fees in the 15 percent to 20 percent range.

What do they need to know?

Usually, the firm is paid when the event is over and the client pays the bill. HelmsBriscoe's preferred hotels pay the site selection firm half the commission at the time of booking. Conference Direct has similar arrangements with certain properties, while Conferon (a large independent meeting planning firm that also provides site selection services) does not have preferred arrangements with hotels and receives payment after the meeting takes place.

What should I ask?

What size company should I go with?

Research happens online via the industry's many hotel databases, by calls to national sales offices and individual properties, and through on-site inspections. Some companies, such as Conferon, have full-time research departments.

Who signs the contracts?

What if I have to cancel?

As soon as you know where and when you want to book a meeting, call. Some suggest calling before you pick a destination so that options aren't limited. For large conferences, contact a site selection company a year or more out.

how can I find them?

SOURCES

Gather data on the region, the number of guest rooms needed, arrival/departure patterns of your group, the meeting schedule, meeting room needs, food and beverage requirements, location preferences (airport or downtown, for example), personality of the meeting (e.g., informal, refined, high-tech), previous meeting locations, and any prior experience your company has had with that property and destination.

Find out the site selection company's bargaining power, the relationships it has with hotels and resorts, and how quickly it can respond to your needs. Some may have agreements with certain properties to promote their hotels or destinations. At the outset, ask if such arrangements exist, and find out what they mean when it comes to negotiating the best rate and contracts.

Independent planners

What are they?

What do they do?

Many reputable “mom and pop” site selection firms do good work, offering personalized service. Theoretically, the larger the company, the greater the purchasing power.

What should I ask?

What size company should I work with?

In most cases, you or your representative (the planner or a higher executive, depending on the company) signs a contract with the hotel.

What should the contract specify?

What if I have to cancel?

Ask a site selection firm about its cancellation policies. Since most are not paid their commission until the meeting takes place, they will miss out on income when meetings are canceled.

What credentials do I look for?

There is no association for site selection companies, but most of their staff are members of the major meeting planning organizations. Check references and reputations by asking for names of a company's clients.

Where do I find them?

SOURCES

What Do They Do?

They do whatever you need, including site selection, logistics, billing, on-site management, tour or partner program planning, working with suppliers, negotiation and planning of F&B events, contract management, program design, negotiation of airline costs, registration, and housing. Most independent planners say that they usually work with an in-house planner; hiring an independent frees the in-house planner to focus on the content of the conference, rather than on things such as logistics and site selection.

Production companies

What are they?

Is the independent planner active in industry organizations? What was his or her most interesting contract negotiation? What about the most challenging experience on site? Does the planner have crisis management experience?

What do they do?

Larger meeting planning companies offer volume benefits: larger potential discounts because they book more room nights and events each year. However, smaller firms may offer more personalized service.

What will it cost me?

When should I make contact?

The contract should outline the responsibilities of the in-house planner and the independent, timelines, fees, payment schedule, and cancellation clauses for all sides.

What do they need to know?

What should I ask?

“Cancellation is always spelled out with all the details of dollars,” says Joan Eisenstodt of independent meeting planning firm Eisenstodt and Associates. Eisenstodt strongly recommends to her clients that they not sign contracts that contain one-sided cancellation clauses.

Whom will I work with?

What if I have to cancel?

Check independent planners' qualifications and credentials to see if they have worked with comparable clients of the same size/type of meeting; find out about reputation and relationships with properties and suppliers.

What credentials should I look for?

Many independents earn the industry's most recognized meeting planning credential: the Certified Meeting Professional designation from the Convention Industry Council. And Meeting Professionals International offers Certification in Meeting Management, for advanced planners.

Where do I find them?

SOURCES

If you need someone only to hook up speakers and lights, hire an AV technician. But if you want to add pizzazz, call a production company. Of course, production companies take care of the AV details, making sure your event sounds and looks as you envisioned.

But they also do a lot more. Working with planners, production companies can design the theme and oversee every detail. They can help planners conceptualize the theme and then make it a reality, doing everything from designing the staging to creating customized video. Some offer other specialized services, like speech coaching or creating CD-ROMs and Web sites for attendees to access before and after your event.

Special event planners

What are they?

This depends on what the client wants to accomplish. Most companies bill on a line-item basis and collect fees in increments based on when payments are due to vendors, with the balance due upon completion. For example, the bill might be broken out by speaker, entertainment, AV, etc. For something such as entertainment, the mark-up would likely be about 10 percent. For most other services, the mark-up is 15 percent to 30 percent, depending on the item and whether it was billed on a per-day rate or a per-event basis.

What do they do?

What will it cost me?

Production companies like to be involved at least three to six months in advance. Of course, thanks to technological advances, Tele PrompTer copy and graphics can be tweaked moments before a speaker hits the stage.

When is payment due?

When should I make contact?

A production company needs to know about the audience, whether they are clients, for example, or top producers, Also, the company the details: the location specs (Is there room in the ballroom for the staging? Hook-ups for sound and light?); local union restrictions; budget; audience demographics, and so on.

What do they need to know?

What should I ask?

Find out a company's reputation, its length of time in business, if it has produced similar events, if it owns or rents equipment, how it charges, what the company considers its core capabilities, and if it sends freelancers or full-time employees on site.

Who will I work with?

What if I have to cancel?

An account executive will likely oversee your project. Others involved depend on the project and company.

What credentials should I look for?

Where can I find them?

Cancellation policies vary. Most production companies base their refund policies on what work has been completed, as well as on terms of the agreements with subcontractors.

SOURCES

There is no industry certification, so be sure to check references.

Incentive companies

What are they?

Particularly in the corporate arena, special event planners are much more than party planners. They help you choose the theme, decor, and entertainment for your event, and then produce it. Some companies operate locally; others work with clients nationally, planning events from formal galas to arena concerts.

What do they do?

What will it cost me?

Event planners do everything from decor, entertainment, sound, lighting, and transportation to booking speakers, purchasing gifts for VIPs, planning and negotiating F&B, and even designing invitations and signage.

When is payment due?

When should I make contact?

The industry standard is 18 percent to 20 percent commission based on total event cost. This can be billed in various ways: a flat management fee or a built-in mark-up fee on line items, for example.

What do they need to know?

What should I ask?

A 50 percent deposit is usually due at the start, with another 25 percent due before the event.

Who will I work with?

What if I have to cancel?

Venues fill quickly, especially in big cities, so the more lead time, the better. But there is no standard.

What credentials should I look for?

Where do I find them?

Tell your planner the event's purpose; preferred dates and flexibility; number of guests; format (e.g., black tie, informal); budget; event history; and what other events are on the agenda.

SOURCES

Find out the event planner's background, client list, references, and places he or she has done business; do a credit check, and ask for case histories of similar events. Consider the level of creativity, fee structure, insurance, and memberships in industry associations. Does the planner own his or her props? Has the planner won industry awards?

Most planners appoint a team leader or executive producer to the account, who coordinates the event with you.

Destination management companies

What are they?

What do they do?

It depends on how close the event is to the cancellation. Many fees are nonrefundable because the event planner has already done the contracted work. Policies also depend on what is in vendor agreements — if talent is booked, you're likely to have to pay whether the event happens or not.

What will it cost me?

When should I make contact?

The International Society of Event Specialists offers the CESP (Certified Special Events Professional) designation.

What do they need to know?

What should I ask?

What if I have to cancel?

Incentive companies, also called “incentive houses,” create award trips for qualifying sales executives but also develop entire programs: setting goals, creating the promotional campaign, and managing the trip. Some focus on incentive marketing, some specialize in trip delivery, and others provide the full spectrum of services.

What credentials should I look for?

Where do I find them?

Incentive firms can prepare pre-trip promotional materials; develop program web sites; recommend properties; hire vendors on site; coordinate f&b events; and even plan awards shows and special events. Some companies focus solely on incentive travel, while others also provide merchandise and debit card programs.

SOURCES

Every company charges differently. Some incentive trips are billed on a commission basis; others are based on a flat fee; others charge a management fee; services purchased à la carte are typically priced per person. Many incentive companies collect commissions from hotels.

Room Service

Schedules differ depending on the timing of the meeting and other variables. A deposit is typically required, followed by a schedule of payments.

To get preferred dates and destinations, book 18 months in advance (longer for a particularly large group).

Know the size of your group, group demographics, your goals and objectives, previous and preferred destinations, preferred activities, and anticipated challenges.

How many people from the company will work on the event? How many staffers will be on site, or will freelancers be used? Has the company produced similar events before? How is the fee structure based? Can references be provided?

Who Will I Work With?

Usually, you'll be assigned a salesperson or account executive who will coordinate the event with the other departments in the firm, including hotel registration, airline booking, and operations.

Most firms follow the policies of hotel and airlines contracted for incentives and incorporate vendor contracts into their own contracts. As for their own fees, they would consider what work has already been done as well as the reason behind the cancellation.

Are they members of the Society of Incentive & Travel Executives (www.site-intl.org) and have they earned their CITE (certified incentive travel executive) designation, awarded by SITE?

Meeting Professionals International (www.mpi web.org) and SITE offer online searchable membership directories.

DMCs

Destination management companies serve as local liaisons for meeting planners. Once thought of strictly as transportation providers, DMCs orchestrate events, find off-the-beaten-path event venues, and handle a variety of details from props and staging to entertainment. The main benefit of using a DMC is in-depth local knowledge. They may also have more negotiating leverage in the local market. Although DMCs typically work only in the city in which they are based, many belong to national and global networks.

Destination management companies find venues; find and hire entertainment; arrange tours, F&B, theme parties, sporting events, props, and transportation; and help to purchase welcome or spouse gifts.

DMCs work on a fee basis. Depending on how a client prefers to be billed, some can quote a net management fee that is broken down by the number of attendees, or a line-by-line itemized account with a built-in management fee, usually in the 20 percent range and negotiable. Most DMCs require a deposit up front. Usually, 75 percent to 80 percent of payment is due in installments before the event.

It depends on the complexity of the bookings. If you want to hold an event at a venue such as the Smithsonian, which allows a limited number of bookings per year, you will need much more notice than, say, a dine-around. Smaller cities have a limited number of top attractions, so early bookings are essential.

Tell your DMC what you hope to achieve. Is this an incentive, a sales meeting, or pure entertainment? Considerations include budget, F&B needs, and attendee demographics.

Does the DMC know the right subcontractors? Does it have good relationships with local vendors? Can it ensure that vendors are insured? What is its bargaining clout? Can it provide bank references? How long has the company been in existence, and how much of its business is repeat business? How large is its full-time staff? What are the cancellation policies and payment terms and schedule? Is it involved in industry associations? Is it considered the preferred local partner of other industry firms, such as incentive houses or independent planners?

Policies depend on how far out you cancel. Vendors' contract policies play a huge role.

The Association of Destination Management recently introduced the Destination Management Certified Professional designation.