“Soft block” contracts
I was just reading a writeup of the recent Krisam Insurance Advisory Board meeting, and came across this:
A key problem is how to contract future meetings based on today’s lower attendee numbers while still allowing for a jump to higher attendance in the future. The solution: a two-part contract. The first part reflects a room block and function space based on current numbers. A second, a “first-option contract,” holds additional rooms and space based on past attendance. There are agreed-upon review dates and the planner has first right of refusal on the “soft” block if the hotel gets another offer for the space.
This is so brilliant! I’d be curious to know how amenable to this hotels are, and if planners outside the insurance and financial industry are having success with this type of contract. Sounds like the proverbial double-win to me.
June 25th, 2009 at 11:23 am
‘Soft Blocks’ are now integrated into our conference center’s lexicon: lower, front-loaded contracted obligations with first-right-of-refusal when/if other customer groups request to book meeting spaces that would limit ’soft blocker’ expansion. Same format was true (during prior economic downturns) when our conference center projects included guest rooms.
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