Charging for Services in a COVID-19 Environment Survey

Third-Party Survey: Charging for Services in a COVID-19 Environment

The delta surge, international travel bans and corporate travel restrictions and a host of other factors are causing meetings and events to be rescheduled, flipped to virtual/hybrid, or outright cancelled. This can leave third-parties in the lurch, especially those who rely on hotel commissions.

How are sourcing companies/third-party meeting planners/DMCs staying afloat, especially since no commissions are earned from hotels when programs are cancelled? Are end clients willing to pay for the preparation of services even though they did not receive them?

This survey is intended to find out. All responses are anonymous.

1.What type of organization do you work for?

Sourcing company

Third-party meeting planning company

DMC

Other (please specify)

2.How do you charge for services?

By time increments (hour/day/week, etc.)

By markups on services provided

A total percentage on top of all itemized services

Built-in commissions from suppliers

Specific cancellation clause detailing charges in case of cancellations due to force majeure

A combination of the above

Other (please specify)

3.Have sourcing companies changed their contracts to be paid in case of cancellations? If so, how?

4.In your experience, how do end clients/in-house planners prefer to be billed by third parties?

Open books and day fee

A built-in markup

Itemized invoice

As long as it meets the overall budget and requirements, the agreed budget is paid

Other (please specify)

5.Considering your ongoing experience throughout the pandemic, have you changed your agreements to ensure you will be paid for your work?

We have added payment clauses to our agreement

The client is paying a fee or the missed commission if the meeting is cancelled

We have not found a way to ensure the end client will pay for our service if they have to cancel

Other (please specify)