Budget Planning For Your Hotel’s Entertainment Program
We find that the most successful hotel entertainment programs are budgeted and planned for in advance, which helps the hotel achieve better results in terms of value and guest experience. In this article, we discuss important budget considerations when planning your hotel’s entertainment program.
Drafting the budget: Regularly Scheduled versus Special Activations
During budget planning season, imagine the broadest possible entertainment program you’d like to have in the upcoming year. To help keep things organized, we recommend first defining the regularly scheduled programming you’d like to have. For example, the activations that happen every Friday and Saturday nights throughout the year, or during the busy season. The budget for these regularly scheduled activations can be standardized and then multiplied by the number of days they occur each month. Remember, that not all months have the same number of Fridays, Saturdays, etc., so it is necessary to actually count the days using a calendar. (MHW Live Music has a tool that allows clients to calculate this automatically, rather than counting by hand).
Next, consider all the special holidays and happenings throughout the year where you’d like to have special or pop-up activations. This can range from Cinco de Mayo to Mother’s Day to Christmas to New Year’s Eve. Also keep in mind that throughout the year there are fun observances (e.g. “National Tequila Day”) which are opportunities to create special experiences for your guests even where there is not a major national holiday taking place. The entertainment budgets for these special activations are higher than regularly scheduled entertainment; however, it is important to understand the fair market rates and not allow yourself to be overcharged by overzealous vendors.
Finally, combining the regularly scheduled activations with the special holiday activations, you will arrive at the monthly budget draft. It is better to ask for a little more and have breathing room, than to underestimate the rates (especially on the big holidays) and then need to scramble to find performers for lower costs at the last minute.
Getting a Good Value:
The further in advance the performers are booked, the better value you will get from the budget. This does not mean you can’t change or cancel if your circumstances change. However, offering the work far in advance allows the hotel to negotiate better rates. This is because the performers are happy to have their schedule planned out further in advance and because you are not competing with other offers already on their calendars.
If you are not sure of the fair market rates for regularly scheduled activations and special holiday activations, call an expert. It is very common for vendors to inflate their prices far beyond the true price where they’d be happy to take the work, especially at the higher end brands with very expensive room rates. This is especially true for the special holiday activations. The rates you pay should be high enough to satisfy the best local performers, but there are very quickly diminishing returns on paying more than that “strike price”. In order to determine what that “strike price” really is, it is best to consult with an expert, because reaching out as the manager of a high-end property is likely to get you inflated rates across the board.
In Summary
By planning in advance, leaving a little breathing room in your budget, and consulting with an expert to understand the fair market rates, you can get the best guest experience and value from your hotel’s entertainment budget. MHW Live Music offers complimentary advice to hotels looking to understand the fair market rates in their local region, as well as comprehensive budget planning tools and planning services for its hotel and resort clients across the United States.
Activate Your Outlets
If you would like to discuss your property’s entertainment program and see how MHW can help, please contact us.
