What are group rates?
Group rates are typically offered to groups
traveling together using 10 hotel rooms or more per
nite while arriving and departing on (roughly) the
same dates.
In the case of condos some places require 10
separate units while others only require 10
bedrooms.
Why do I need a group contract?
Contracts are required because the hotel/condo is
offering guaranteed availability at rates that are
substantially below published rates over the same
dates.
The property removes those rooms and holds them for
you and in return you guarantee the property a
certain amount of rooms will be used over the
contracted dates.
What is contained in a group
contract?
Group contracts outline your dates, rates, deposit
requirements, cancellation policies, taxes, room
block, reservation procedures, food and beverage
needs (if any), any additional fees that the
property requires and anything else pertinent to
your event.
It also spells out your revenue commitments.
How far in advance should I
sign it?
As soon as you are comfortable doing so.
Typically, a property will hold your room
block up to a certain date (option date) on a
tentative basis.
After that date the rooms go back into
inventory for resale.
Many places are busy all year long and there
is no guarantee the rooms you want will be available
if you wait to sign a contract.
What are my contractual
obligations?
Your biggest obligation is usually to meet a certain
revenue goal for your event.
Properties will typically give you 15-20%
leeway (attrition) from contracted amounts.
So if your event calls for $20,000 in room
revenue, you would typically have to meet a minimum
revenue amount of $16,000.
What if I don’t know how many
are coming to my wedding?
Or how long they will stay?
This is typical of most weddings in Hawaii – not
just on Maui.
Nobody really knows what to expect beyond
immediate family.
Therefore, we recommend caution when
establishing your block commitment.
It is better to be safe than sorry.
Most places will typically allow group rates to
extend three –five days before and after your block
dates based on availability
at time of
request.
We’ll make sure your contract contains the
proper verbiage.