Every definition below was written for a planner running their first RFP, and reviewed by a planner running their hundredth. No jargon. Examples where useful. Linked from every blog post and product tooltip on Easy RFP.
- RFP (Request for Proposal)
- A structured brief an event planner sends to multiple hotels to collect comparable offers for a group booking. A good RFP names the destination, dates, attendee count, room-night total, meeting-space needs, food-and-beverage expectations, audiovisual requirements, and the date by which the planner expects a reply. The point of an RFP is to make bids comparable, not just to collect prices.
- MICE
- Meetings, Incentives, Conferences, and Exhibitions. The segment of the hospitality industry focused on group business travel. A corporate offsite for 40 employees, a sales kickoff for 200, an incentive trip, a pharmaceutical advisory board meeting, and a trade exhibition all sit inside MICE.
- BAFO (Best And Final Offer)
- An anonymized second bidding round sent only to finalists after an initial scoring pass. Each finalist sees aggregated competitive intel — for example, “3 of 5 finalists offer audiovisual equipment included in the rate” — and decides whether to improve their offer. Planners who run a BAFO round typically close 8 to 18 percent below the first-round leader.
- Attrition
- The percentage of the room block that the planner is not charged for if attendees fail to book those rooms. Typical contracts allow 10 to 20 percent attrition. A 100-room block with 15 percent attrition means the planner is only charged for 85 rooms at minimum, even if pick-up is lower. Negotiate attrition before signing — it is one of the largest risk items in a group contract.
- Cut-off date
- The deadline by which attendees must book inside the group block at the negotiated rate. After the cut-off date, unsold rooms return to the hotel’s general inventory at market rate and the group rate is no longer available. Typical cut-off: 30 days before arrival, sometimes 45 for larger blocks.
- F&B minimum
- A minimum spend commitment on food and beverage that the planner agrees to in exchange for meeting space, a discounted room rate, or both. A hotel may waive the rental fee on a 200-person ballroom in exchange for a €15,000 F&B minimum. Watch for language that counts only gross spend (pre-service charge and pre-tax) toward the minimum.
- Room block
- A set of rooms a hotel holds at a fixed negotiated rate for the planner’s attendees. Room blocks are sized in room-nights (one room for one night equals one room-night). A 100-attendee event running Monday–Thursday nights is a 300 room-night block.
- Comp rooms
- Complimentary rooms the hotel offers for every N paid room-nights booked. The standard ratio is one complimentary room per 40 paid. On a 300 room-night block, the planner can expect seven comp rooms, typically upgraded and allocated to staff or VIPs.
- Magic Link
- A one-time, unique URL that opens a secure response form without requiring a login or a password. Easy RFP sends each invited hotel a Magic Link so sales teams can respond to the RFP in 90 seconds without creating an account. Magic Links expire after the RFP closes.
- DMC (Destination Management Company)
- A local agency in a destination that provides on-the-ground logistics, transport, vendor relationships, and sometimes hotel contracting. Useful when a planner is sourcing in a city where they have no direct relationships. DMCs typically earn commission from local suppliers, so their recommendations should be pressure-tested.
- Soft vs. hard deadline
- A soft deadline is the target date by which the planner would like proposals in hand, but accepts late responses with reminders. A hard deadline closes the RFP at the stated time and no further proposals are accepted. Easy RFP defaults to soft deadlines with an auto-chaser at 24h and 48h.
- Rack rate
- The hotel’s published standard rate before any discount. Useful as a reference point on a proposal (to calculate the group discount versus rack) but planners almost never actually pay rack.
- Sourcing fee
- A commission some legacy agencies or platforms charge the hotel for delivering a booking, typically 7 to 10 percent of the room revenue. Hotels quietly inflate quoted rates to cover the fee. Easy RFP does not charge hotel-side fees — the planner is the only customer, and hotel quotes reach the planner without this markup.
- Pick-up report
- A running count of how many rooms inside a group block attendees have actually booked as the event approaches. Planners monitor the pick-up report to decide whether to release rooms early (to avoid attrition charges) or push attendees to book before the cut-off.
- Force majeure
- A contract clause that releases both parties from their obligations if an extraordinary event — natural disaster, pandemic, civil unrest, government restrictions — makes the event impossible to hold as contracted. After 2020, planners began insisting on broader force-majeure language that covers public-health emergencies explicitly.
- Resell or avoidance clause
- A contract term allowing the hotel to reduce or waive attrition charges if it can resell unused rooms in the block to other guests at the same or a higher rate. This is free downside protection for the planner — always ask for it, always in writing.
- Group code
- A short booking code attendees use to reserve rooms inside the group block at the negotiated rate. The code is given to attendees in the event’s confirmation email and they enter it on the hotel’s booking site.
- Bulk buy
- Purchasing room-nights in volume, often across multiple events or dates in the same year, to secure a lower per-room rate. Useful for planners running recurring incentive programmes or roadshows in the same destination. The aggregate volume across the year is the bargaining chip — negotiate the annual commitment upfront and lock rates before demand peaks.
- Booking pace
- The rate at which attendees are filling rooms in the group block relative to the time remaining before the cut-off date. A healthy booking pace reaches 80 percent of the block at least two weeks before cut-off. A slow pace is an early signal to push reminders to attendees and consider releasing part of the block to avoid attrition charges.
- Concession
- A value item a hotel provides beyond the contracted rate, typically offered to win or retain a group. Common concessions include complimentary meeting rooms, free Wi-Fi for all delegates, an upgraded room for the programme director, complimentary welcome drinks, or a waived resort fee. Always list concessions explicitly in the contract rather than relying on a verbal commitment from the sales manager.
- Contracted rate
- The room rate negotiated and fixed in the group contract, as distinct from the publicly available best available rate (BAR) or rack rate. The contracted rate is guaranteed to attendees who book inside the group block before the cut-off date. Hotels cannot raise it unilaterally after the contract is signed, which is one of the key advantages of a group block over ad-hoc bookings.
- DDR (Day Delegate Rate)
- A per-person, per-day rate that bundles meeting room hire, morning coffee break, working lunch, afternoon coffee break, and sometimes basic AV into a single price. DDR packages simplify budgeting but can obscure whether individual components are competitively priced. Always ask for an itemised breakdown alongside the DDR so you can identify which elements are overpriced.
- Decision maker
- The person or committee with final authority to approve a hotel contract. In corporate settings, this is often the event manager plus a finance approver or procurement sign-off above a certain value threshold. Hotels know that identifying the real decision maker early accelerates the sales cycle, which is why experienced sales managers ask about approval processes during the first call. As a planner, it is useful to be transparent about this so hotels invest appropriately in their proposal.
- Exclusive use
- A booking arrangement in which the planner's group occupies the entire hotel, closing it to other guests. Common for luxury incentive trips, celebrity events, and large corporate gatherings where privacy and brand control are paramount. Exclusive use commands a significant premium over standard group rates, typically a minimum revenue guarantee covering the hotel's normal occupancy, F&B, and ancillary spend.
- First option (or hold)
- A temporary reservation of space or room inventory while a planner finalises their decision. A first option gives the planner a defined period, typically 5 to 14 days, to sign or release without paying a deposit. If a second interested party requests the same dates, the hotel notifies the first-option holder and triggers a decision deadline. Always negotiate a first option before entering serious negotiation, as it protects availability without financial commitment.
- Ground package
- The total event spend billed through the hotel, excluding flights and activities managed externally. The ground package typically includes accommodation, F&B, meeting rooms, and in-house AV. Knowing the total ground package value is important for negotiating: hotels consider total revenue, not just room rates, when deciding how much flexibility to offer on any single line item.
- ICCA (International Congress and Convention Association)
- The global association for the meetings industry, representing convention centres, hotels, airlines, and destination management organisations across 130+ countries. ICCA publishes annual rankings of the world's top meeting destinations and cities, making its data widely cited in event sourcing decisions. A hotel appearing in ICCA member lists has signalled its commitment to the professional MICE segment.
- Incentive trip
- A reward programme for top performers, typically in sales, that takes the form of a fully hosted group travel experience. Incentive trips sit under the I in MICE. Unlike conferences, their primary currency is experiential value rather than content delivery. Hotels competing for incentive business are evaluated on uniqueness of experience, service quality, and prestige as much as on room rates. The budget per person is typically 2 to 5 times higher than for a standard conference.
- LRA (Last Room Availability)
- A clause in a corporate rate agreement that obligates the hotel to honour the negotiated rate even when the hotel is fully committed. Without LRA, a hotel can deny a corporate rate during high-demand periods and direct the traveller to a higher BAR. LRA is the gold standard for travel managers negotiating annual hotel agreements, but is rarely granted for one-off group events.
- MPI (Meeting Professionals International)
- The world's largest association for meeting and event professionals, with chapters across Europe, North America, and Asia-Pacific. MPI publishes research on industry trends, runs certification programmes (CMP, CMM), and hosts annual events including World Education Congress (WEC). For hotel sales teams and event planners, MPI membership is a signal of professional development investment.
- Negotiation lever
- Any factor a planner can use to improve the hotel's offer. The most powerful levers are: multi-year commitment (recurring annual events), total ground package value (rooms + F&B + AV combined), flexibility on dates, early contract signing, and willingness to serve as a reference or case study. Hotels respond most to volume, repetition, and certainty of revenue — leverage these explicitly in negotiation rather than relying on rate comparison alone.
- PMS (Property Management System)
- The core software a hotel uses to manage reservations, room assignments, billing, and reporting. Common PMS platforms in European MICE hotels include Oracle OPERA, Mews, Cloudbeds, and Apaleo. Understanding what PMS a hotel uses matters when requesting data exports (like pick-up reports) or when integrating with event management software. Hotels on modern cloud PMS platforms tend to respond faster and provide more structured proposal data.
- Preferred supplier
- A hotel or hotel chain that a corporate travel programme has designated as an approved vendor, typically after a formal RFP process conducted annually by the travel or procurement team. Being on a company's preferred supplier list guarantees a minimum volume of business and removes the planner-by-planner decision on which hotel to approach. Hotels compete aggressively for preferred status because it represents committed, recurring revenue.
- RevPAR (Revenue Per Available Room)
- A hotel performance metric calculated as occupancy rate multiplied by average daily rate (ADR). RevPAR is the primary profitability indicator for hotel owners and asset managers. When negotiating group rates, understanding that a hotel with low RevPAR has more incentive to fill room-nights at a discount gives planners useful leverage. A hotel trading at 65% occupancy will be more flexible on group rates than one running at 90%.
- Rooming list
- The final document sent to the hotel listing each attendee's name, room type, check-in date, check-out date, and any special requirements (accessibility, dietary, allergies, VIP flags). The rooming list is typically due 14 to 21 days before the event. Accuracy is critical: a name mismatch between the rooming list and an attendee's ID can prevent check-in. Always request a confirmation from the hotel within 24 hours of sending.
- RNs (Room-Nights)
- The standard unit of measurement for group accommodation. One room-night equals one room occupied for one night. A group of 80 people staying for three nights generates 240 room-nights. Hotels use this metric to calculate revenue potential, determine the appropriate level of concessions, and set minimum F&B requirements. Total room-nights is typically the first number a hotel asks for when evaluating an RFP.
- Setup style
- The arrangement of furniture in a meeting room, which determines both capacity and the nature of interaction. The main styles: Theatre (rows of chairs, maximum capacity, presentation focus), Classroom (tables + chairs in rows, for note-taking), U-Shape (tables arranged in a U, for interactive discussion up to ~30 people), Cabaret (round tables with chairs on one side, mix of presentation and interaction), and Boardroom (single table, for executive-level meetings up to ~20). Always specify the setup style in your RFP, as capacities can differ by 40 to 60 percent between theatre and cabaret for the same room.
- Site inspection
- An in-person visit to a hotel before contracting, during which the planner evaluates meeting rooms, guest rooms, F&B facilities, outdoor spaces, and service quality. Site inspections are standard practice for events above EUR 20,000 in total value. Hotels typically offer site inspection rates (heavily discounted or complimentary stays) to planners in active negotiation. A structured site inspection checklist covering dimensions, natural light, AV infrastructure, and accessibility saves significant time and prevents surprises on event day.
- TRevPAR (Total Revenue Per Available Room)
- A more comprehensive hotel performance metric than RevPAR that includes all revenue streams: accommodation, F&B, spa, meetings, parking, and ancillary services. TRevPAR is particularly relevant to MICE sales because it captures the full value a group generates beyond room revenue. A well-structured corporate event can produce TRevPAR 3 to 5 times higher than a transient leisure guest, which is why hotels with strong meetings facilities compete aggressively for group business even at room rates below their BAR.
- Value-add
- An item the hotel offers at no additional charge to enhance the package without reducing the contracted rate. Hotels prefer value-adds over rate reductions because they preserve the rate integrity used for future negotiations and revenue management. Common value-adds: complimentary parking, upgraded Wi-Fi, welcome cocktail for all delegates, room upgrade for the event organiser, or complimentary airport transfer. When a hotel says they cannot reduce the rate, ask what value-adds they can include instead.
- VDR (Venue Dry Run)
- A pre-event walkthrough of the venue with the hotel's operations team, covering room layouts, AV testing, F&B service flow, registration desk placement, and emergency procedures. Typically scheduled 24 to 48 hours before the event begins. For complex events, a VDR is essential to catch setup errors, confirm AV functionality, and brief all hotel staff on the programme schedule. Include VDR time in your venue access request when negotiating the contract.
- Waitlist
- A managed list of attendees who want to join an event or access the group room rate after the block is fully committed. Effective waitlist management requires clear communication to registrants about their position and probability of getting a room, a defined release schedule for unclaimed rooms, and a tracking system that links the hotel's room availability to the event registration platform in near-real time.
- XDR (Extra Day Request)
- A request from attendees to extend their hotel stay beyond the contracted event dates, either before arrival or after departure. Hotels are generally willing to accommodate XDRs at the contracted group rate if inventory allows, but this is not guaranteed unless written into the original contract. Add an XDR clause to your group contract to ensure the hotel offers the same rate for +2 days pre and post event — a meaningful benefit for international delegates.
- Yield management
- The dynamic pricing strategy hotels use to maximise revenue by adjusting rates based on demand, booking pace, and competitive positioning. Understanding yield management helps planners time their RFP effectively: hotels in a slow period are more flexible on rates, while hotels with strong transient demand approaching have little incentive to discount. Sending RFPs 90 to 120 days before the event typically hits the ideal window where hotels can see the revenue benefit without having sold the inventory at peak transient rates.