TL;DR
Hotel event production costs are climbing because of inflated equipment rates, service fees, internet and power charges, and daily rental calculations that favor the hotel. The best way to control them is to bring in your own AV partner before you sign the hotel contract. Doing so gives you negotiating leverage, helps you avoid predatory package terms, and typically delivers better quality at a lower total cost than the hotel’s in-house AV team.
Why are hotel event production costs rising?
Planning a meeting, conference, or event at a hotel will cost you more, and hotel event production costs can hit hardest in AV. Inflation, supply-chain challenges, and staffing shortages are pushing prices up across the events industry. Airfare, hotel room rates, and food and beverage are all up, while the return to in-person events meets pent-up demand for scarce event space.
Hotel room rates continue to rise, and fees and surcharges, which paused during the pandemic, are climbing again. Expect higher resort fees, amenities charges, mandatory gratuities, credit card fees, convenience fees, and admin fees.
Long-time clients and new prospects tell us what they’re being quoted for everything related to their events, and the terms they’re held to. Their biggest alarm is quoted prices for audiovisual and meeting room rentals. One major metro hotel’s quote was double what it charged in previous years.
We routinely counsel clients to review hotel AV contracts and negotiate the most favorable terms. It matters more than ever.
How does a hotel’s in-house AV compare with an outside AV provider?
An outside audiovisual (AV) event production specialist has one business: delivering precise, stand-out corporate and organization events. A hotel’s in-house AV team is one service among many. Consider the following when scheduling your event.
1. Meet your AV provider before you book the venue. Always meet with your AV professional of choice before booking. Knowing what you need for a hotel event, and what you don’t, gives you leverage in negotiating before you sign. It also protects you from misleading catering contracts and aggressive AV salespeople.
2. Watch service fees and rental costs. Service fees, equipment charges, and technical fees can climb to 30 percent of your bill, even if you don’t use every service in the hotel’s package. Outside AV providers typically don’t charge service fees, and a hotel’s AV rental and labor rates can exceed an outside provider’s.
3. Be careful with internet and power. Hotels charge for internet access, power, and rigging, and the amounts vary by event. Even if you don’t need internet, you’ll need power. Fees for higher-amperage connections are common, but a charge for regular wall outlets is a red flag.
4. Compare how rental days are calculated. A hotel charges for every day the equipment is dedicated to your event. If your event takes a week, you pay a rental charge for each day of that week. Some venues quote a one-day rate, but that daily fee can equal an AV specialist’s two- or three-day rental, so a single-day charge only looks like a deal. For the same week, an outside AV provider typically charges no more than three days, because they count the days gear is actually in use rather than travel, setup, rehearsal, and return days. During slow periods, some AV firms offer two-day rentals.
5. Use your full value to the hotel as leverage. Look beyond the meeting space to the whole benefit of your event to the hotel: room blocks, food and beverage, and on-site restaurants and bars. Hotels may favor luxury vacationers over business groups, especially on weekends. If you have a large group or a multi-event deal, a hotel may waive standard AV package requirements in exchange for revenue elsewhere. Results vary.
Bottom line: With hotel event production costs inflated, you can control your budget by bringing in an outside AV provider before you sign, scrutinizing fees, and negotiating from your total value to the hotel.
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Hotel AV costs are just one part of AV and event staging. Our free guide, 12 Signs Your “Good Enough” Audio Visual Partner Is Costing You Time, Money, and Confidence, lists what to ask for at each stage of planning and execution.