May 2007
Cheat Sheet: Third-party housing

Tips on hiring and managing housing companies

By Linda C. Chandler

What you should know about prospective housing suppliers
• Does the company offer full-service room-block management or are they just licensing software for you to use?
• Will the company accept Web, phone, fax and mail reservations?
• What will the end-users’ (attendees, exhibitors) experience be like? Test the online system. Visit the operation to see how phone bank agents handle calls.
• How much customization can they do for your event? Will the Web site reflect your event’s image?
• Does the system have the technological capacity to transfer seamlessly from registration to housing, whether they’re handling both or only housing?
• Can they handle sub-groups, such as large exhibiting companies that want to control their own housing assignments?
• Does the company’s Web site and/or software allow you to view real-time reservations and reports?
• What’s the company’s reputation and relationship in the city chosen for the event and with the hotel community?
• How long have they been in business? Who are their principal clients? Get and check references.
• How many events do they work at the same time?
• Who will be the key service contact and what’s that person’s experience?

How housing companies charge
• Commission on hotel rates. The company gets a percentage of every room booked; the standard is 10 percent. Commissions are usually paid by the hotel rather than the planner and may or may not be reflected in room rates; service is promoted as “free” to the planner.
• Transaction fees. The company charges for each attendee transaction. Changes to original transactions may incur additional fees.
• Service fee. May be based on a full-service contract to handle all aspects of housing and might be calculated based on number of expected reservations, a percentage for changes and cancellations, etc.
Rule of thumb: Basic housing services generally include taking reservations; room block management, including sub-groups; on-site assistance; and reporting before, during and after your event.

Working with your housing company
• Meet in person or by conference call to ask questions and clarify expectations.
• Know your event. Ensure you have the right mix of hotels for your group and the appropriate number of rooms for special sub-groups like speakers, staff and exhibitors.
• Share a time line for various deadlines, holds and reminders.
• Make sure published rates include housing fees.
• Publish housing procedures, including all relevant Web sites, phone numbers, deadlines, etc.
• Allow the housing company to review housing forms before they’re printed to ensure accuracy.
• Get regular updates to ensure you know where you are against the block, so you can make adjustments when necessary and avoid attrition issues.