ROOM BLOCK MANAGEMENT JARGON

Understanding room block management vocabulary is a skill! Not every event planner handles room block management; many outsource their hotel blocks to third-party planners. So, when you find yourself conversing with an Event Housing Manager or tackling your very own event hotel contracts, refer back to this handy guide.
 

Room Block Management Jargon

• Addendum: an addition to a completed written document; must be signed by all parties to become part of a legally binding contract.

 

• Amenity: complimentary items in sleeping rooms such as writing supplies, bathrobes, fruit baskets, shampoo, etc. provided by the facility at no extra cost.

 

• APEX Post-Event Report: a detailed post-event report template that covers event information, contact information, hotel room information, room block information, food & beverage information, and much more.

 

• Attrition: the difference between the actual number of sleeping rooms used (or food and beverage covers or revenue projections) and the number, or formulas, agreed to in the terms of the facility’s contract. Usually, a certain shortfall is allowed before damages are assessed.

 

• Banquet Event Order (BEO): a form most often used by hotels or other facilities to provide details to personnel concerned with a specific food and beverage function or event room set-up.

 

• BATNA: Best Alternative To a Negotiated Agreement. The alternate plan when the original plan doesn’t work out. It can also be used as leverage to get the first option hotel to agree to more favourable terms.

 

• Cancellation Clause: a provision in a contract that outlines damages or penalties to be paid to the non-canceling party if cancelation occurs due to the canceling party’s breach of the contract.

 

• Citywide Meeting (Citywide Event): an event that requires the use of a convention center or event complex, as well as multiple hotels in the host city. The numbers required to attain a citywide category depend greatly on the city.

 

• Commission: Payment to a sales representative for meeting or exceeding a sales revenue goal; a payment made to an individual or organization for bringing business to another individual or
  Organization.

 

• Complimentary Ratio (Comp Ratio): provided free as a courtesy or favor, at no charge; often a reflection of how many units (rooms or tickets) were actually sold to meeting attendees.
  Ex. 1/40 comp ratio = for every 40 rooms booked, the organizer receives one complimentary night.

 

• Convention Services Manager (CSM): a professional at a hotel, convention center, or convention bureau who is responsible for event operations management on all levels. Typically, the sales manager at the hotel contracts the event and then passes the responsibility of organizing the details to the CSM, including communication with the client.

 

• Cut-off Date: the deadline for holding a number of rooms or ticket guarantees at the group rate; the due date for a decision on a contract or proposal.

 

• Direct Billing: accounts receivable made available to individuals or firms with established credit. One to three months may be required to establish direct billing with a hotel or event facility.

 

• ETA: estimated time of arrival.

 

• ETD: estimated time of departure.

 

• Force Majeure Clause: a clause in a contract that excuses a party from liability if some greater force or event beyond the control of that party prevents completion of the contract obligations (i.e. a flood or natural disaster).

 

• Guarantee: a promise or commitment to rooms, food and beverage, or other revenues. Usually, there is a financial liability if the commitment is not met. The final number of persons to be served is usually required at least 48-72 hours in advance of an event requiring food and beverages.

 

• Headquarter Hotel: one hotel in a multiple hotel meeting where VIPs stay, and official functions are held.

 

• Master Account (Master Bill): a record of transactions during an event where the resulting balance is paid directly by the group. This may include room, tax, incidentals, food and beverage, audiovisual equipment, décor, etc.

 

• No-Show: a reservation made, but not kept. Any person, group, or exhibitor who fails to appear to claim a reservation, exhibit space, or ordered service. Participant did not attend and did not cancel according to cancellation guidelines; an exhibitor that does not show up to claim booth space; a hotel guest who does not honor a reservation; a speaker/entertainer who does not arrive.

 

• Peak Night: refers to the night during an event when the most rooms are occupied by attendees.

 

• Pick Up: number of guest rooms actually reserved out of the room block.

 

• Pre-Con: a pre-conference meeting. A meeting at the primary facility at which an event will take place, just prior to the event start. Attendees generally include the primary event organizer, representatives of the event organizer/host organization, department heads at the facility, other facility staff as appropriate, and contractors. The agenda focuses on reviewing the purpose and details of the event and making final adjustments as needed.

 

• Post-Con: a post-conference meeting. A meeting at the primary facility at which an event occurred just after it has ended. Attendees generally include the primary event organizer, representatives of the event organizer/host organization, department heads at the facility, other facility staff as appropriate, and contractors. The agenda focuses on evaluating the implementation of the event and completing the APEX post-event report. It often includes a final review of bills with accounts payable.

 

• Proposal: a plan put forth for consideration or acceptance; communication sent by a supplier to a potential customer detailing the supplier’s offerings and prices.

 

• Rack Rate: facility’s standard, pre-established guest room rates.

 

• Rebate: a return of part of a payment. Typically, event planners will receive rebates (money back) on hotel room reservations.

 

• Request for Proposal (RFP): a document that stipulates what services the organization wants from an outside contractor and requests a bid to perform such services.

 

• Right-of-First-Refusal (or 1st Option): a courtesy a facility extends to a previously booked party to approve or disapprove a concurrent booking or to keep uncontracted space for the previously booked party for program growth.

 

• Room Block: the total number of sleeping rooms that are utilized and attributable to one event.

 

• Run-of-House Rate: rooms given at random according to availability when the reservations are made; a flat rate for which a hotel or motel agrees to offer any of its available rooms (with the exception of suites) to a group. The final assignment of rooms is at the discretion of the hotel.

 

• Shoulder Nights: Non-peak nights of an event. For example, if an event’s peak nights are Friday and Saturday, the Thursday and Sunday evenings surrounding the event would be the shoulder nights.

 

• Shoulder Season: a period when the demand for a supplier’s product or service is neither high nor low.

 

• Slippage: reduction in the number of rooms used from the original reserved block.

 

• Sub-Blocks: any group of rooms that are classified or separated differently than the general attendee block within the event’s contracted room block.