Sunday, 24 February 2013

How do events planners charge their fees for hospitality services?

Whether you are hiring an event planner for organizing any social event like marriage reception or birthday party, corporate event like a conference or any sports related rugby hospitality or a cocktail of both, this is important for you to know how events planners make their fees structure to charge you. But sorry, finding the answer of this question is not so easy. There are several factors you have to consider when it comes to determine how they charge fees like operating expenses, salaries and their margins. In reality, the rates of their services differ from your location, market conditions and the nature of your event.

Ways by which event planners calculate their charges
Charging for the services may also depend upon the condition of market in which the target budget is different and the services should be competitive according to the parameters of your budget. Nevertheless, there are roughly five formulas on which the events planner structures their fees so that you can arrange for necessary amount for event planning. Suppose they want to make $75 per hour by rendering their services, here are five ways they can quote their charges:
1. Flat Project Fee
2. Hourly rate
3. Percentage of expenses
4. Expenses percentage + hourly rate
5. Commissionable rates

Flat project rate to charge fee for event planning
Many of us dying to know how do they charge for their services and how much a project costs including all taxes? In this way, the events planners determine first a flat fee and check the types of services that can be covered under that amount. In this way, this is your responsibility to manage the budget and the planner anticipates a variety of situations in which the events can change their budget. In that case, the client is free to call the event planner directly in order to consider the lodging, logistic, catering and venue expenses.

In general, the flat project fees are charged on all-inclusive events like sport event, in which the charges can be calculated on per-head basis including many caveats and stipulations. For instance, you have 15 guests and you have a plan to organize a city getaway and you have hired an event planner for that. You have to ask the event planner for a quote of flat fee in which a personal guide, transportation, lunch and admission fees of a venue are included. In this way, you can calculate and bargain the price of all services rendered to you including the combined expenses and time. This is the responsibility of the events planner to pay for all services and fix the deposits for all agreements of services.

Percentage of expenses
There are most event planners feel comfortable with a particular percentage of total cost in advance i.e. from 15% to 20% of the total event planning cost. As per the program’s complexity and the amount of time taken to execute any event, sometimes this amount is perfect to cover all the necessary expenses regarding event along with the source of income. Suppose, you are organizing a private dinner with 40 guests and you have a budget of $175 per head and you are going to hire an event planner. If it takes 15 hours to plan, attend, meet with the planner as well as the complete follow-up on the event and they charge 18% from the total expense in the beginning, they would earn quite a little more than your planned hourly rate.

Hourly rate of services
Many of us prefer hourly rate of services charged by the events planners for rendering services in order to manage the number of hours taken by the guests in a program. Though it seems quite similar to the flat project rate, this gives extra flexibility to make changes at a time when needed. There are many events planners charge this way as services. In this way, the client can easily estimate the amount of cost charged on the service and he can make a reasonable budget for the event. With the help of this option, they can easily handle the cases of any unwanted expenses. Make sure to define the clear parameters for your budget so that you can estimate for the available services.

Expenses percentage plus hourly rate
Sometimes clients prefer hiring the event planner to charge them with percentage of expenses. However, this is not enough that can cover the total time and services cost. For instance, your project is to organize two dinner parties and a golf outing for 50 guests. The total estimated cost is $20000 but it needs 60 hours of estimated time and the higher profit margin is justified by the complexity of project. In this way, the hourly rate estimate is $4500 of 60 hours @$75 per hour and the estimate is $3600 which is 18% of $20000. So, the hourly deficit comes up to $900.

Commissionable rate
Sometimes the clients secure the space of event by the events planners and hence, they charge commissionable rate to the clients. The commissionable rates are fees charged by travel agents to book hotel rooms, tickets and other types of transport. Though some event planners charge commissionable rates for making a great source of income, the clients should ask for the sense of loyalties of the events planners. There are many scenarios occur when smaller non-profit in order to make most sense.

Whatever will be the method of charging fees by the events planners, it should be beneficial for you in all respects. In this way, you can plan for your event that can be helpful for you to plan an event. There are many events planners can serve you at their best even at very reasonable prices. So, it is necessary to make the best plan for your event first then you should go to hire an event planner that can serve you best according to the nature of your event and your fixed budget of the particular event or party.

rugby hospitality


  1. Thank you for sharing above post. Blue Shadow Group helps to organize events, conferences with best events planning.

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