Contracts for hotels and venues have never carried more weight. Between unpredictable booking curves, evolving attendee behavior and the lingering aftershocks of pandemic-era cancellations, planners are navigating agreements that feel more complex — and more consequential — than ever.

The contracting landscape of 2026 demands more than familiarity with boilerplate language; it requires strategic clarity, flexibility and a deep understanding of how risk is allocated long before signatures hit the page.

Across the industry, experts agree that the strongest agreements aren’t built on hardball tactics — they’re built on prioritization, flexibility, clear communication and careful attention to risk language. Planners who know exactly what they need, what they can live without and where they can adapt are consistently securing better outcomes, even in a seller’s market.

The following guidance blends insights from four seasoned voices — Jonathan Howe, Ali Collins, Nick Heimlich and Michael Benoit — into a cohesive game plan for smarter contracting strategies in 2026 and beyond.

Start With Priorities: Needs, Wants & Interests

Before any negotiation begins, planners must know their hierarchy of priorities. Jonathan Howe, president & CEO of Howe & Hutton in Chicago, IL, says the smartest planners start with a simple but powerful exercise.

“Well, I think the big negotiating tip I would give in this marketplace is, if you don’t ask, you won’t get,” Howe says. “That becomes sort of a key factor of looking at what it is that you absolutely have to have, what you’d like to have, what may be nice to have; but, it’s not going to be a deal breaker.”

His method: three columns on a yellow legal pad — needs, wants and interests.

Needs: If you cannot provide this to me, then there’s no sense in me wasting your time or you wasting my time.

Wants: Important, but negotiable.

Interests: If I get it, great. If I don’t get it, the world will not come to an end.

This framework becomes even more important in today’s market, where supply and demand have shifted dramatically. Convention center hotels aren’t being built at the pace they once were, and compression is real. “Negotiating and the opportunities are substantially lessened,” Howe notes. But planners who understand their own flexibility — especially around dates and room-block patterns — can still unlock leverage.

Shoulder-season dates, off-peak windows and alternative patterns can all open doors that rigid planners miss.

This exercise also helps planners avoid a common pitfall: negotiating everything at once. By knowing which items truly matter, planners can focus their energy on the clauses that protect their event and their budget — not the ones that simply feel nice to have.

Flexibility is a Contracting Superpower

Flexibility isn’t just helpful — it’s increasingly essential. Howe points out that hotels’ needs shift with seasons, market conditions and booking curves. Planners who can adjust their meeting pattern, room-block size or even venue type often find themselves negotiating from a stronger position.

“If you’re an offseason, even better for your negotiating structure,” Howe says. And the type of meeting matters too. Incentive programs, airport-adjacent trainings and large association conventions each carry different value propositions for hotels.

Understanding how your meeting fits into a hotel’s business mix — and how it fills gaps in their calendar — can be a powerful lever. Howe asks the key question: “How do you make your meeting attractive to the salesperson who goes home at night and says, ‘I’ve got to get that piece of business?’”

For planners without a long history or strong track record with a chain, Howe suggests leaning on third-party partners. “They’re sometimes able to get a better deal overall for you than you would be on your own,” he says, thanks to their volume and relationships.

Flexibility also extends to meeting formats. Hybrid events, compressed schedules and creative room-block patterns can all help planners negotiate more favorable terms. In a market where hotels are still recalibrating post-pandemic demand, planners who can adapt quickly often find themselves with more leverage than expected.

And flexibility doesn’t just benefit the planner — it signals to hotels that the group is collaborative, realistic and easier to work with. In a compressed market, that perception can matter as much as the business itself.

Attrition & Cancellation: The Hard Lessons of 2026

If there’s one area where planners must sharpen their focus, it’s attrition and cancellation — the “magic two words,” as Howe calls them.

“Owners are demanding that if you sign a contract, they want to enforce that contract against you if you breach it,” he says. The post-pandemic era has made hotels far more protective of their inventory, and attrition penalties are being enforced more strictly than ever.

But the risk isn’t one-sided. “It’s not unheard of for a hotel that, if it gets a better piece of business, it may tell you to take a walk,” Howe warns. That’s why planners must negotiate reciprocal cancellation protections — clauses that ensure the hotel compensates the group if it cancels in favor of more lucrative business.

“A strong cancellation provision relative to should the hotel wish to cancel you out, I think becomes a key factor,” Howe says. It’s difficult to negotiate, but essential.

He also emphasizes the importance of reputation. “Are you a reliable source? Do you pay on time? Do you meet your commitments?” he asks. Hotels talk and planners who build a track record of reliability often find themselves with more negotiating power than they realize.

Attrition and cancellation are also areas where planners must understand how hotels calculate risk. Some properties are shifting toward revenue-based attrition, which can benefit groups with attendees who book higher-tier rooms. Others are tightening cancellation windows or adding new conditions to force majeure clauses.

The bottom line is that planners must read these sections carefully, negotiate them early and revisit them often.

Being flexible during contract negotiations can help planners gain a strategic advantage.

Audit Clauses: The Hidden Lifeline in Attrition Situations

Ali Collins, director of meeting planning at Goldman Management in Tampa, FL, says one of the most overlooked protections in association contracts is the audit clause. “Planners need to make sure that an audit is included in their contract,” Collins says.

She stresses that exhibitors and vendors must be included in the audit list. “Many times they book short term and outside the block,” Collins explains. “If you find yourself in attrition but they conduct an audit and find rooms, you will get credit for them and it could offset what you owe.”

Audit clauses have become even more important as attendee booking behavior shifts. Loyalty programs, discount sites and corporate travel portals all pull attendees away from the official block. Without an audit clause, planners may find themselves paying attrition penalties for rooms their attendees actually occupied.

Collins also urges planners to push for cumulative attrition, including pre and post-nights. “A lot of hotels have gone to nightly attrition or cumulative on peak nights,” she says. “If you have people coming and staying for five nights you should get credit toward your overall block.”

If a hotel won’t offer 20% cumulative attrition, Collins recommends a phased approach: “5% at 90 days out, 5% at 30 days out and 10% at conclusion of the meeting.”

These phased reductions protect both sides: hotels regain inventory early and associations avoid punitive penalties.

Rate Integrity: Protecting Your Block From the Internet

Association attendees often book outside the block to save money — and Collins says planners must protect themselves with a no-lower-rate clause. “Association meeting attendees search the web for the best deal because the cost comes out of their pocket,” she explains. “If they find that they can book at even $5 less because they belong to the loyalty club or because it is non-refundable, they will do it.”

Your clause should cover all published rates on the hotel website, regardless of cancellation timing, room type or membership. Only negotiated business-travel rates should be exempt.

Collins also warns about inclusions — perks like AMEX Platinum credits, waived resort fees or comp parking. “While the rate might be slightly more, the inclusions make it more attractive,” she stresses. If attendees book that way, “you want to capture their stay.”

Rate integrity clauses are increasingly important as hotels experiment with dynamic pricing models. Without them, planners may find their block undermined by the hotel’s own website.

Revenue-Based Attrition: When It Helps You

Some hotels want to base attrition on revenue rather than room nights. Collins says this can actually benefit associations — especially at resorts with tiered room categories. “If you have people book into the higher room category and pay more and then fall into attrition, if the penalty is based on revenue, then you get the benefit of people booking at the higher rate,” she explains.

Planners can also upgrade board members or speakers to offset attrition penalties. “At least the association is getting something for the money spent,” Collins adds.

Revenue-based attrition also encourages planners to think strategically about room-block composition. Higher-tier rooms can become a buffer against penalties, and pre and post-night revenue can help offset shortfalls.

Precision Matters: Why Words Can Leak Money

Nick Heimlich, founder and attorney at Nick Heimlich Law in San Jose, CA, says vague language is one of the biggest financial risks in hotel contracts.

“Words leak money, if they are vague,” he emphasizes. “There’s no such thing as comparable space if you don’t specify it in square footage, floor and capacity.”

Heimlich also warns that hotels expanded force majeure language after 2020, often allowing them to retain deposits for reasons that wouldn’t have qualified before. “State the reasons and insist on repayment, not credit in the future,” he says.

On attrition, Heimlich is blunt: “Set an 80% attrition level on your room block and cap the damages at the resold room, rather than the rate. You may request the resale credit in writing or you could end up paying twice for the same bed.”

Heimlich’s guidance underscores a critical point, that contracts must be specific. Vague commitments, undefined terms and ambiguous clauses all create opportunities for disputes and hotels will interpret unclear language in their favor.

The Middle Pages: Where Risk Really Lives

Michael Benoit, founder of ContractorBond.org in San Diego, CA, has spent 15 years reviewing high-stakes contracts — and he says planners consistently overlook the most dangerous parts.

Attrition clauses and force majeure definitions are often ignored until something goes wrong. “By then, it’s too late to negotiate them.”

Benoit says planners should be wary of the phrase “reasonable efforts,” adding, “It sounds like a commitment but it gives the other party just enough room to do the bare minimum and call it fulfilled.”

He also stresses that cancellation penalties are “almost always negotiable at signing. Nobody tells you that upfront.”

Force majeure definitions should specify who decides what qualifies, and that decision must be in writing.

And never forget: “The hotel’s contract template is a starting position written entirely in their favor,” Benoit underscores. “It’s handed to you hoping you won’t ask a single question.”

Every verbal promise needs a written addendum. As he puts it, “If it isn’t in the document it doesn’t exist.”

Benoit’s final warning: “Whoever prepares the contract language holds the advantage when a dispute hits.”

What Planners Must Do Now

Across all four experts, several vital points are highlighted, helping craft a roadmap for smarter contracting in 2026:

• Define your needs, wants and interests before you negotiate.
• Be flexible with dates, patterns and meeting formats.
• Protect yourself with audit clauses and cumulative attrition.
• Ensure rate integrity with no-lower-rate clauses.
• Specify everything — square footage, capacity, inclusions, timelines.
• Negotiate cancellation protections for both sides.
• Get every promise in writing.
• Scrutinize the middle pages — that’s where risk hides.
• Never accept vague language or undefined commitments.
• Remember: the hotel’s template is their wish list, not the final deal.

These strategies aren’t about making contracts longer; they’re about making them clearer, fairer and more predictable. In a landscape defined by shifting demand, tighter inventory and rising expectations, planners who master these tactics will protect their organizations — and build stronger partnerships and more resilient events.

A More Confident Contracting Future

Contracting may feel more complex than ever, but planners who approach negotiations with clarity, flexibility

and a firm grasp of risk can still secure strong, balanced agreements. The experts agree that the smartest contracts aren’t about winning —they’re about alignment, protection and predictability.

And that mindset is becoming increasingly crucial as the meetings landscape continues to evolve. Hotels are adjusting to new booking curves, with shorter lead times and more volatile pickup patterns. Associations are juggling hybrid formats, shifting attendance demographics and tighter budget oversight from boards and volunteer leadership. Even external forces — from inflation to labor shortages to global travel disruptions — can influence how hotels structure their risk and revenue strategies. In this environment, planners who understand the “why” behind hotel behavior are better equipped to negotiate terms that work for both sides.

The future of contracting will likely place even greater emphasis on transparency and shared responsibility. Planners who document expectations early, revisit clauses throughout the planning cycle and maintain open communication with hotel partners will be the ones who avoid surprises and strengthen long-term relationships. As several experts noted, reputation matters. Groups that consistently meet commitments, communicate proactively and negotiate thoughtfully often find doors opening that remain closed to others.

In a landscape where every clause carries weight, planners who take the time to understand their priorities, negotiate strategically and document everything will be the ones who thrive. The future of contracting isn’t about being tougher — it’s about being a smarter negotiator. And for associations navigating an increasingly sophisticated meetings environment, that shift in mindset may be the most valuable clause of all. | AC&F |