What to Know About Event Sourcing: Part 1
Originally published on May 23, 2023. Updated on July 15, 2025.
As we enter the second half of 2025, M&IW’s Event Sourcing team continues to experience both new sourcing trends and what the industry now deems standard, including high compression in top markets, overall meeting expenses rising, and more restrictive contract terms.
In this two-part series, we share key trends and best practices to help you navigate event sourcing and contracting with confidence. Part 1 focuses on current contracting trends and how to secure favorable terms. For more information on what to expect during each step of the sourcing and RFP process, download our guide.
A Road Map to Successful Contracts
Today’s hospitality market is rapidly changing, requiring you to be more strategic in your event sourcing approach and timeline. Here are some of the top trends to be aware of.
Define Event Goals Before Sourcing Your Event
Meetings and events are constantly scrutinized for their ROI. It has been proven that in-person meetings are effective and that people need to gather, yet we often source meetings that are then cancelled due to a lack of approval or budget.
Before starting the event sourcing process, secure all approvals, including confirmed program dates. Also ensure the purpose of the meeting is clear and the intended outcomes and audience are defined. Consider travel limitations, location perception, environmental impact, and convenience. This guides the rest of the process, including where the meeting can most successfully be held.
Be Prepared to Act on Deadlines and Deposits
Contract deadlines are no longer a sales tactic. When a deadline is missed, hotels move on to the next program. Gone are the days of extending contract deadlines or first-option holds for months. Ensure you have a concise timeline with a clear process for securing approvals.
Deposit timelines also impact budgeting and planning a successful event. We continue to see hotels push for advance deposits globally. While US hotels used to only require a small deposit, if any, at the time of contract execution, this is now a rarity. Higher initial deposits—and in some cases, even full prepayment—are now required prior to program execution, even if direct billing has been approved. If a deposit is missed, contracts may include penalties such as interest or the right to cancel.
If your hotel contract is for a room block only, a credit card authorization may be required at the time of contract signing—even if guests are responsible for paying their own charges. Be prepared to complete authorizations in a timely manner as hotels will not consider the contract executed without a form of payment on file.
Consider if Direct Billing is Right for Your Event
While direct billing is being approved, it is for lower amounts than in years past, and it can take 60–90 days for approval. If your event takes place in 60 days or less, you may not be able to apply for direct billing.
Also, thanks to today’s technology, hotels can easily find your company’s payment history. If there have been late payments in the past, that will affect your current request. It is more important than ever to make invoice payments on time, even if it’s a partial payment while you work through disputed charges.
Evaluate and Prioritize Contract Clauses
Ideally, you would have both rebook and resale clauses in hotel contracts. However, hotels now generally only accept one or the other. Determine which is more important based on the scope of the meeting and the occupancy projections of the hotel and destination.
The resale clause ensures that if room pick-ups are lower than anticipated, you should not be charged for the nights the hotel is able to resell some of the unoccupied guest rooms. However, this may only apply if the hotel reaches 95–100% occupancy. If you are relying on the resale clause, communicate early and often on anticipated occupancy levels.
The rebook clause should be included if there’s a possibility the meeting will not move forward. This provides an opportunity for you to recoup a percentage of the cancellation fees as credit toward a future program of equal or greater value, usually within 12 months. However, don’t expect full credit for the cancellation; it is much more likely to be 50%.
Trends in Contract Terms and Concessions
When negotiating a contract after event sourcing is completed, it’s important to consider what terms and concessions are most critical to the success of your program. Prioritize the high-impact items. Utilizing and leveraging your history is also critical when negotiating. Here are a few key areas to keep in mind.
Food and Beverage
In today’s market, a 10% annual increase in hotel F&B pricing is not uncommon. To control your F&B costs, negotiate minimal menu price increases, set prices, and get creative. Select less expensive proteins, prioritize local menus, and if allowed, piggyback on other groups’ in-house menus so the hotel can buy and produce in bulk.
Name Substitution
Some hotels now consider name substitutions to be a new reservation. This is no longer a complimentary standard service. If substitutions are a priority, negotiate parameters during contracting to avoid confusion later.
Pre- and Post-Event Reservations
Some hotels no longer accept standard contract language that allows for the contracted rate to apply three days before and after the contracted room block. Instead, their contract language includes something along these lines: “Group rate for pre- and post- to not exceed 10% of contracted room block.” This limits the number of guest rooms accepted at the group rate, so your attendees may have to pay the prevailing guest room rate for extended stays.
Concessions
The days of the endless list of concessions are long gone. Prioritize a list that will give your program the greatest value and provide true savings. When hotels receive long lists of concession requests, they offer those that are the lowest cost for them. If those items add the most value to the program, then it’s a win-win. But if not, communicate the top priorities.
For example, if your room block is between 40–75 guest rooms, the standard 1/40 comp policy only nets you one complimentary guest room. There could be greater value if you choose to focus on meeting room internet or discounted staff rates.
Elevate Your Event Sourcing
It’s important to be aware of these trends as you prepare for the second half of 2025. M&IW always works to minimize potential risk for our customers, secure high value savings, and offer recommendations to improve the overall program experience. Download our guide to event sourcing and RFPs to discover how we support you every step of the way.
Submit an RFP to start sourcing your next program. Already an M&IW customer? Contact your Customer Success Manager to learn more.
Contributor
Melissa Tighe, CAE, CMP
Sr. Director, Event Sourcing
Meetings & Incentives Worldwide, Inc.
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