RFP GLOSSARY ALL THE TERMS YOU NEED TO KNOW WHEN CREATING A MEETING REQUEST. Powered by

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1 RFP GLOSSARY ALL THE TERMS YOU NEED TO KNOW WHEN CREATING A MEETING REQUEST

2 Hotel Jargon Decoding the mysterious language of hoteliers. Use this glossary as a resource when working on proposals, contracts and event details. Explore terms by category, or look up a specific term in the index on page 26.

3 TABLE OF CONTENTS Accounting.... Page 4 Contract Language... Page 6 Food & Beverage.... Page 11 Meeting Requirements... Page15 Hotel Terminology... Page 22 Index... Page 26 Page 3

4 $$$$$ Accounting Terminology 30-Day Net Payment terms indicating that payment is due within 30 days after the group departs. Average Daily Rate (ADR) The average guest room rate that a hotel charges. ADR is calculated as room revenue divided by the number of rooms sold. Folio (final hotel statement) A formal statement of guest charges and payments Gratuities A fee added to the bill for service. Referred to as service charge on catered events. Service charges and gratuities are typically not negotiable on catered events. Page 4

5 Accounting Each Pays Own (EPO) Refers to events in which guests are responsible for their own room, tax and incidental charges not charged to a master account. Incidentals Charges incurred by hotel guest separate from room and taxes. Such charges might include: restaurant/bar, phone calls, spa, golf and parking. Inclusive Pricing Pricing that includes all charges, such as guest room, tax, and breakfast. Master Account An account created to capture all group designated charges during the meeting dates. Examples include: guest rooms, parking, meeting space, food & beverage, and audiovisual. Per Diem An allowance for daily expenses. Plus Plus (++) Tax and service charges/gratuities are identified as ++ when they are not included in the price. Service Charge A fee for services provided by banquet/catering staff at the hotel. Page 5

6 Contract Language Attrition The difference between the number of room-nights that the group committed to and the number actually used. Hotels will often include an allowable attrition amount in the contract, making the group liable for the contracted room block and/or food & beverage minimum, minus the allowable attrition amount. If the group uses less than the adjusted block or minimum (contract minus allowable attrition amount), the hotel is owed the difference. For example: If a group contracts 100 room-nights and the hotel allows for 20% attrition, the group is liable for 80 room-nights. If the group actualizes (uses and pays for) 70 room-nights, it owes the hotel the value of 10 roomnights due to the attrition clause. Page 6

7 Contract Language Cancellation The cancellation clause summarizes the fee owed by the group if the event does not take place. There is often a sliding scale that indicates the fees owed based on when the meeting cancels. For example: days prior to arrival: Group owes 75% of room revenue and 50% of Food & Beverage Minimum 0-30 days prior to arrival: Group owes 100% of room revenue and 100% of Food & Beverage Minimum Concessions Also known as special incentives or upgrades, these are items the hotel offers complimentary or at a reduced cost for a meeting. Hotels offer concessions to sweeten the deal and base their decisions on the overall value of the event. Meeting planners may include preferred concessions in the initial RFP, making the sales manager aware of the planners expectations and the group s needs. Counter-signed Contract A contract that has been signed by both parties (planner and hotelier) and is from that point forward considered a legally binding document. Cut-Off Date The date in which all reservations and/or the rooming list are due to the hotel. After this date the hotel may release any remaining guest rooms that have not been utilized in the contracted block and sell the guest rooms at a higher rate. A standard cut-off date is 30 days prior to arrival. Many hotel partners will work with you to extend the contracted guest room rate even after cut-off. Page 7

8 Contract Language Dishonored Reservations Also known as a walked room. Occasionally, guaranteed reservations are not honored by the hotel because the hotel is oversold. In this case, the hotel will make alternative arrangements for those rooms at a nearby hotel. Adding a dishonored reservation clause ( Walk clause) to your contract is a good practice and should include reimbursement for accommodations and transportation to/from new hotel. Food & Beverage Minimum The total dollar amount of catered events (not including service charge and sales tax) required by the hotel, based on the meeting space and dates being held. Force Majeure This clause is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations. Commonly referred to as an act of God or impossibility clause, it is often used during natural disasters that make it impossible for the guests to travel either out of their city or to the hotel s city. First Option The first group to request the meeting dates and space. Often hotels will offer availability and will state they are not holding space. This is not a First Option, just a general offer. Hotels will typically have a few groups over the same dates that are in this stage. Requesting a first option from the hotel means you re ready to negotiate the contract, and the hotel is holding your meeting space. With a first option contract comes a first option date. This is the date you will need to have the contract returned or the offer may be rescinded. Page 8

9 Contract Language Indemnification A clause in which one party (the group or the hotel) agrees to be financially responsible for specific damage or loss incurred by the other party. Indemnification clauses in hotel contracts should be reciprocal and should make each party responsible for their own negligence. Rebooking Clause In the case where a financial penalty is owed the hotel, this clause enables a portion or all of the penalty to be applied to a future meeting or meetings. The group should ask to include a rebooking clause in the contract. The hotel will often designate a set time limit in which the new meeting will need to take place. For example: Hotel agrees to apply 25% of paid cancellation fees toward a similar-sized meeting that takes place within 6 months of date of cancellation. Reservation Method The way that room reservations will be communicated by the group. Rooming list: The group (or its representative, like a housing company) will submit a list to the hotel Individual call-in: Attendees are required to reserve their guest rooms directly with the hotel, either via phone or online registration Resort Fee A guest room charge that is in addition to the guest room rate and generally includes items that are commonly used by the guest. Examples include: Guest room internet, newspaper delivery, complimentary use of the fitness center, bottled water. Page 9

10 Contract Language Second Option This is the term used to describe the status of a group s requested dates and space when there is another group that is holding the same dates (the first option). If the second option group signs a contract before the first option group, the first option group will have a designated time (typically 48 hours) in which to sign the their first option contract. If the first option group does not sign its contract in time, the second option group wins those dates. Page 10

11 Food & Beverage Terms Action Stations Chef-attended food stations that provide guests with an interactive dining experience. Action stations enable guests to customize their order; while watching the chef prepare the masterpiece. Banquet Event Order (BEO) The complete detailing of a meeting/event, including menus, room setup, start/end time, special requests, A/V, and accounting instructions. Also called an Event Order (EO) or Function Sheet. Beverage Breaks Refreshments scheduled in between breakfast, lunch and dinner. Also referred to as AM or PM breaks. Page 11

12 Food & Beverage Buffet Food that is prepared and set up at tables where guests serve themselves. Buffets allow for multiple entrée selections and are typically chosen for less formal events such as parties, luncheons and social events. Additional space is required in the room to accommodate both the buffet lines and sufficient traffic flow around seating areas. Cash Bar A bar in which guests pay for their own drinks (in contrast to a hosted bar). CMP Often used at resorts, all-inclusive hotels, and conference centers, CMP typically stands for Complete Meeting Package and is inclusive package pricing. The CMP is a per-person fee per day, and generally includes the guest room rates, breakfast, AM/PM breaks, lunch, basic audiovisual, and applicable taxes. Continental Breakfast A light breakfast consisting typically of coffee and pastries. Covers The actual number of people served, either in a restaurant or during a catered meal function. Event Order See Banquet Event Order. Food & Beverage (F&B) The group s menu or dietary requirements, as well as the number of events and attendees. This information is expressed in the Banquet Event Order (BEO). Page 12

13 Food & Beverage Function Sheet See Banquet Event Order. Guarantee The minimum number of people that will be served during a catered event, whether or not that number is actually used or consumed. Most hotels require guarantees to be provided two days or more in advance of an event. This guarantee will drive the actual number of seats the hotel will set for a meal. Typically hotels will set 5% above the guarantee. Heavy Hors d Oeuvres Finger food appetizers, served with the intention of providing guests with more of a meal in the form of small appetizers. Typically serving size is 8 10 pieces per person. Hosted Bar A bar in which attendees do not pay for the beverages. Also known as Open Bar. Light Hors d Ouevres Light finger food appetizers, also known as passed hors d ouevres, not intended for a meal. Often served in a reception prior to a dinner event. Typically serving size is 2 3 pieces per person. Minimum (Food & Beverage Minimum) The minimum catering revenue required for a meeting or event. Fees will apply if the minimum is not met. Page 13

14 Food & Beverage Open Bar See Hosted Bar. Plated Meal Full meal served in courses to seated guests. Plated meals create a more formal feel to the event than buffet-style meals. They offer a more practical use of space if the event is close to capacity. Prix Fixe French for fixed price, this is a multi-course meal allowing no substitutions. Reception A social gathering with food and drinks, often held to welcome guests at the beginning of an event. Page 14

15 Meeting Requirements Terminology 24-hour Hold A hold on a meeting room where the group has sole, continuous access 24 hours a day. Typically requested when the group wants to keep the existing set for the duration of the meeting, e.g., has audiovisual or production setup that can t be torn down each day. Agenda A detailed list of events for the meeting, outlining specific event times, function room setup, and attendance. Air Walls Movable panels used to subdivide a larger area into smaller rooms such as a hotel ballroom or convention center exhibit hall converted to breakout rooms. Page 15

16 Meeting Requirements Audiovisual (A/V) Equipment used for visuals and sound during a presentation. It may include screens, projector, and microphones. Equipment needs are listed in the Banquet Event Order (BEO). Breakout Separate from the main session room, used for smaller meetings/discussion. Sometimes hotels may suggest guest room suites in lieu of breakout rooms for more intimate, casual discussion. Concurrent Sessions Meetings or breakouts that occur at the same time during the conference. Exhibit Hall Meeting space where sponsors/vendors display their goods or services to convention attendees. Often the hotel s exhibit hall is flexible meeting space that can be used for a multitude of events. Exposition An event or show with a collection of exhibits to display products or services. Fixed Seating Seating at a facility that is permanently installed and not able to be moved. Floor Port A utility box recessed in the floor with electrical, internet, or plumbing connections. Function Space Meeting space at a venue where functions or events can be held. Page 16

17 Meeting Requirements General Session The main meeting room where all attendees are invited. Green Room A private room, typically backstage or near the stage, for speakers and entertainers to relax or meet with guests prior to or after their performance. Hospitality Suite A hotel room reserved by a group to entertain and network; light refreshments are usually served. Install & Dismantle (I&D) The act of setting up and tearing down the meeting space for an event. Also known as Set Up & Take Down. Load In The specified period of time for loading in equipment bringing it into the event space. Load Out The specified period of time for loading out equipment removing it from the event space. Masking Drape Fabric used to cover storage or other areas that should not be displayed. Part of Pipe and Drape. Page 17

18 Meeting Requirements Pipe and Drape Tubing covered with fabric used to make up the rails and back wall of a trade show booth or to cover storage areas that should not be displayed. Production Describes the audiovisual, staging, scenery and other equipment used in setting up the meeting space. Registration Desk A table or desk used to check attendees into the conference prior to the meeting or event. Rehearsals Time designated prior to the start time of an event for the meeting host and speakers for practice. Rehearsals typically take place in the same room as the event, after the function space has been set up. Risers Slightly elevated staging, generally available in several sections, that are used to design stages of varying sizes. Room Rental A charge for use of meeting or event space. Frequently charged when there is no Food & Beverage associated with the meeting. Page 18

19 Meeting Requirements Room Setup Preferred design of event space. Providing this detail in the RFP enables sales managers to understand the group s space requirements and identify the appropriate meeting rooms to propose. Boardroom: Rectangular or oval table set with chairs around all sides. Chevron Seating: Chairs placed in rows forming a V-formation facing the stage or podium. Also known as Herringbone or V-shape. Classroom: Tables set in rows with chairs all facing the stage or podium (2 or 3 per 6 ft. table). Also known as Schoolroom. Cocktail: A scattering of short and tall smaller round tables. Seating is not available for entire group. Crescent Rounds: Large round tables with chairs only on the side facing the stage or podium. Hollow Square: Tables are arranged in a square shape with chairs set up only on the outside and nothing within the square. Rounds of 8: Larger banquet round tables with 8 chairs around each. Rounds of 10: Larger banquet round tables with 10 chairs around each. Theater: Chairs set up in rows facing the speaker or stage. U-shaped: Tables are arranged in a U-shape with rounded corners; chairs may be placed on the outside or inside of the table arrangement. Also called Horseshoe Seating. Page 19

20 Meeting Requirements Service Desk An area where exhibitors order services from show management. Set Up & Take Down See Install & Dismantle. Show Days The days when the show or exhibit is open to the group. Excludes setup/take down days. Show Decorator A company or individual responsible for providing draping, carpeting, and services for the trade show and its exhibitors. Show Manager The organizer and operator of an exposition. Sight Line Refers to a hypothetical line of vision toward the staging area, showing what guests will see when looking at the stage. During event setup, it is important to pay attention to the sight lines to ensure that there are no visible wires or equipment that may distract attendees. Speaker Ready Room A room for guest speakers to test their presentations on duplicate a/v equipment, meet other speakers, and relax. Page 20

21 Meeting Requirements Stanchions Posts that are sometimes attached with rope, used to guide traffic or close off a designated area. Strike The action of taking down and packing room setups or exhibits. Trade Show An exposition or show at which goods and services in a specific industry are exhibited and demonstrated. Trade shows are primarily a business-tobusiness event, although occasionally they may be open to consumers. Walk-through The inspection of a facility and specific meeting space prior to the start of an event. Page 21

22 General Hotel Terminology Actualized Room-Nights The actual number of guest rooms consumed by the group when the meeting concludes. Bid A proposal submitted by a hotel or meeting venue, detailing services and approximate costs. Commission Fee paid by the hotel to a third party for sourcing and booking an event. Usually calculated as a percentage of guest room revenue. Page 22

23 General Hotel Terminology Comp Rooms Rooms offered at no charge to the group. Example: 1 per 50 complimentary guest rooms, meaning that for every 50 paid guest room-nights, the hotel will offer one room-night at no charge. Comp rooms are calculated at the conclusion of the meeting and can be applied to guest rooms that are being charged to the master account or offered as a credit to the master account. Definite Booking Guest rooms and function space reservations confirmed in writing by way of a signed contract. Early Departure Charge A fee charged to a guest for checking out prior to the originally stated departure date. History Guest room pick-up from past meetings, stated as a day-by-day breakdown of the number of rooms contracted versus the number of rooms actually used and paid for. Hotels prefer to review at least two years of history and will use this as a reference when determining contract terms for groups. Hotel Amenities The facilities and features of a hotel. Amenities may include: pool area, spa, golf course and restaurants. In-Room Amenities Gifts provided to guests and placed in their guest rooms, such as fruit basket, wine, and cookies. Page 23

24 General Hotel Terminology No-Shows Confirmed reservations that do not check in on scheduled arrival nights. The hotel will typically charge the actual room rate reserved for the no-shows. Pick-Up An audit of the number of guest rooms contracted versus the actual number of guest rooms used per night. Pre-convention Briefing (Pre-con) A meeting between the event planner and the hotel staff, typically held one or two days prior to the event. This meeting provides a forum for the event planner to review the meeting details and timelines with key members of the hotel staff. Pre/Post Nights The nights prior to and after the main meeting nights. Hotels will often honor the group room rate three days pre and post of the event dates. Rack Rate The hotel s published guest room rates. Rack rates are typically higher than negotiated group rates for contracted events. Request for Proposal (RFP) A meeting or event request. Typically, RFPs contain detailed specifications like room block, meeting space needs, and other pertinent information so the hotels can send detailed proposals Page 24

25 General Hotel Terminology Rooming List List of attendees requesting guest room reservations, including arrival/ departure date, special requests and upgrade requests. Run of House A standard guest room in the hotel. Site Inspection An opportunity to visit the hotel/facility with the intention of inspecting the guest rooms, meeting space, and restaurants to ensure the venue will accommodate the needs of the event. Page 25

26 INDEX Numbers 24-hour Hold Day Net 4 A Action Stations 11 Actualized Room-Nights 22 Agenda 15 Air Walls 15 Attrition 6 Audiovisual (A/V) 16 Average Daily Rate (ADR) 4 B Banquet Event Order (BEO) 11 Beverage Breaks 12 Bid 22 Breakout 16 Buffet 12 C Cancellation 7 Cash Bar 12 CMP 12 Commission 22 Comp Rooms 23 Concessions 7 Concurrent Sessions 16 Continental Breakfast 12 Counter-signed Contract 7 Covers 12 Cut-Off Date 8 D Definite Booking 23 E Each Pays Own (EPO) 5 Early departure charge 23 Event Order 12 Exhibit Hall 16 Exposition 16 F First Option 9 Fixed Seating 16 Floor Port 17 Folio (final hotel statement) 4 Food & Beverage (F&B) 13 Food & Beverage Minimum 8 Force Majeure 8 Function Sheet 12 Function Space 16 G General Session 17 Gratuities 4 Green Room 17 Guarantee 13 H Heavy Hors d Oeuvres 13 History 23 Hospitality Suite 17 Hosted Bar 13 Hotel Amenities 23 I Incidentals 5 Inclusive Pricing 5 Indemnification 9 In-Room Amenities 24 Install & Dismantle (I&D) 17 L Light Hors d Ouevres 13 Load In 17 Load Out 18 M Masking Drape 17 Page 26

27 INDEX Master Account 5 Minimum (Food & Beverage Minimum) 14 N No-Shows 23 O Open Bar 14 P Per Diem 5 Pick-Up 24 Pipe and Drape 17 Plated Meal 14 Plus Plus (++) 5 Pre-convention Briefing (Pre-con) 24 Pre/Post Nights 24 Prix Fixe 14 Production 18 R Rack Rate 24 Rebooking Clause 9 Reception 14 Registration Desk 18 Rehearsals 18 Request for Proposal (RFP) 25 Reservation Method 10 Resort Fee 9 Risers 18 Rooming List 25 Room Rental 19 Room Setup 19 Boardroom 19 Chevron Seating 19 Classroom 19 Cocktail 19 Crescent Rounds 19 Hollow Square 19 Rounds of 8 19 Theater 19 U-shaped 19 Run of House 25 S Second Option 10 Service Charge 5 Service Desk 20 Set Up & Take Down 20 Show Days 20 Show Decorator 20 Show Manager 20 Sight Line 20 Site Inspection 25 Speaker Ready Room 20 Stanchions 21 Strike 21 T Trade Show 21 W Walk-through 21 Page 27

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