Concession in Hotel RFPs (Plain English Definition + Examples)

Definition

A concession is anything of value the hotel gives the planner over and above the contracted rate — comp rooms, complimentary meeting space, waived AV fees, upgraded welcome amenities, complimentary parking, F&B credits, suite upgrades for VIPs. Concessions are bargaining chips, not gifts.

In day-to-day European event sourcing, concession sits inside a broader workflow that includes the brief, the longlist, the shortlist, the contract negotiation, and the post-event reconciliation. Understanding it in isolation is not enough — what matters is how it interacts with the other levers a planner can pull. The definition above is the textbook version; the sections below explain how it actually behaves in real RFPs.

Why Concession matters

Hotels often have more flexibility on concessions than on headline rate, because concessions don't break their rate-parity agreements with chains/OTAs. Skilled negotiators trade rate concessions for concession-stack value — getting €5-8k of value without moving the published rate.

The practical takeaway: planners and procurement teams who get concession right typically see measurable improvements in either cost, risk exposure, or cycle time — sometimes all three. Teams who default to the supplier's standard language usually leave 5-15% of total event value on the table, often without realizing it. The skill is recognizing concession when it appears, knowing the market-standard range, and treating any deviation from that range as a negotiation point — not a take-it-or-leave-it.

Example

On a 200-room programme, typical concession ask list: 15 comp rooms (1:40), 8 suite upgrades, complimentary meeting space for the contracted day rate, waived AV setup fee (€3,500), 25% off F&B for staff meals, 2 VIP welcome amenities/day, complimentary parking for 30 staff cars. Total value: €18,000-25,000.

This example is representative of mid-to-large European corporate MICE — pharma, finance, tech, professional services. Smaller events (under 50 attendees) and very large events (1,000+) often follow different conventions, but the underlying logic of concession stays the same. The numbers move, the principle doesn't.

Where Concession appears in contracts

Concessions appear in a dedicated 'Concessions' or 'Inclusions' schedule appended to the contract. Many planners draft this as a single-page table for clarity.

When reviewing a hotel proposal or contract draft, scan for concession early — it's often easier to negotiate before the supplier has anchored on their preferred position. Easy RFP surfaces these terms in every comparison view so planners can spot deviations from market-standard ranges at a glance, rather than reading 14-page proposals line by line.

Related terms

Deeper reading