The new Destination Booking Agreement (DBA) has made it increasingly important for Event Strategists to be well-informed about industry contracting trends, as Destination Organizations have focused on establishing client agreements that enable them to effectively manage and represent the product they offer and advocate for the destination and Event Organizer. The DBA focuses on protecting both sides.

Destinations International held an education tour this year that included sessions at Business Events Industry Week, PCMA EduCon and IMEX America to educate Event Strategists on navigating the DBA. These sessions aimed to provide valuable insights from industry experts to support Strategists and Destination Organizations as they partner to maximize risk mitigation, promote effective decision-making and negotiate favorable terms for future events.

Here are some of the key takeaways from these sessions for Event Strategists.

Understanding the DBA

For many years, Destination Organizations have varied in how they approach contracting and securing space for future city-wide events for the destination. Often, the processes did not address the implications of large-scale event cancellations for the destination and the Event Strategist. 

Short-term cancellations:

●    Take place more often than people think, and in some cases, are multi-year cancellations
●    Outside of the general booking timeline, create a void outside of the typical city-wide booking timelines that can’t be filled by the destination or hosting organization
●    Can result from the industry's need for customizable resources and consistency in terminology
●    Do not promote deeper conversations and partnerships, making it even harder to articulate the industry value to officials that impact industry funding and destination development

Destination Organizations have increasingly been working to create client agreements that allow them to be a good steward of the product they represent while clearly outlining the commitments associated with future city-wide events to benefit all stakeholders. The new DBA is an opportunity for deeper partnership through meaningful dialogue and equitable liability. It’s a client agreement document used by a Destination Organization when it secures a group for a future meeting that clearly outlines liability, commitment and timelines for the booking organization and host destination to help both stay on track and foster collaboration.

Destinations International launched the DBA in July 2022. It wasn’t in response to one city or the COVID-19 pandemic. It’s a project that has been in the works since 2018. The DBA was prompted by the industry’s changing direction and being put into place to promote risk mitigation and future-proofing of the industry as a whole—for the Destination Organizations and the Event Strategist. The DBA increases industry credibility across the board, impacting both parties. 

The DBA outlines applicable considerations:

●    Cancellation clauses and terms
●    Timelines for center contracts
●    Timelines for hotel contracts
●    Room block commitments
●    Performance clauses tied to incentives
●    Outline of space committed to the group
●    Additional costs associated with space variations
●    Deposit schedules
●    Hotel rebates
●    Hotel commissions
●    Transfer of event ownership 

Promoting collaboration over cancellation, the DBA increases industry credibility for the Event Strategist: 

●    Providing clarity of expectation and mitigation of displacement
●    Supporting internal conversations and business decisions
●    Eliminating confusion around future year agreements
●    Making a stronger case for room blocks 
●    Adding liability protection in the event that the destination displaces the event

Importance of Consistency in the DBA Process

The insights from industry leaders during the DBA education sessions underscore the need for standardized yet flexible DBA processes.

San Diego Tourism Authority Chief Sales Officer Kavin Schieferdecker stressed the risk of event cancellation, saying no destination or event is exempt from that possibility. Schieferdecker emphasized the need for better partnerships upfront to protect both parties. While acknowledging the non-uniformity of the DBA across destinations, Schieferdecker advocated for a more standardized approach to offer Event Strategists a familiar process regardless of destination.

Visit San Antonio Vice President of Association and Tradeshow Sales Tyler Orwig echoed those sentiments, noting the necessity of a standardized DBA process despite inevitable variations. Orwig said the DBA has long been something Visit San Antonio had considered as early as 2015 when the destination started seeing a shift in commitment from customers in regard to honoring its Letter of Agreement. Orwig said the organization saw how Event Strategists were dealing with both business and emotional decisions—from a change in leadership to feedback from attendees—and felt they should have a similar process from destination to destination. Orwig also said they saw a shift in long-term planning processes regardless of the market type—corporations, associations, etc.—and now, Visit San Antonio has had its DBA in place for two years, allowing the destination, hospitality community and customers to confirm long-term city-wide events with confidence and equal commitment.

Destination Toronto Managing Director of Sales Heather Neale said the organization uses a DBA-style document that includes consequences for not meeting the agreed-upon terms and timelines and addresses cancellation—all the more reason for consistency in the DBA process despite variations across destinations.

“Our DBA focuses—it definitely has some terms around cancellation, of course, we took the opportunity to have that in there—but the real impetus for us was dates around venue contract signing, dates around hotel contract signing, headquarter hotels, and that they're mutually agreed upon dates, like, there's no surprises. Our sales team, in the end, as we're selected for a city-wide, has that conversation with the customer. That's our role in the process is to bring people together and get them to signing. In addition, our DBA certainly outlines financial commitments and consequences for timelines not met surrounding financial commitments. I mean, it's a contract document, so it's in there, but the key for us in Toronto is no surprises.”

- Heather Neale
Director of Sales
Destination Toronto

Collaborative Strategies for a Clear and Fair DBA

The industry leaders also emphasized collaboration, communication and transparency as essential strategies for Event Strategists when navigating the DBA process.

These strategies are vital regardless of the destination. Neale and Meet Minneapolis & Sports Minneapolis Senior VP of Destination Sales Brent Foerster, who is in a destination that has had a DBA in place for decades, said their organizations’ DBA documents provide clarity to the destinations’ and venue and hotel partners’ commitments. Both Neale and Foerster recommended including clear venue and hotel contracting timelines and identifying any financial commitments. They noted that the dates and commitments in the DBA are collaborative, so there are no surprises to the Event Strategist.

Visit Indy Managing Director of Sales Joyce Russell is also in a destination with a long-standing DBA. Russell shared some advice for Event Strategists working with destinations throughout the DBA process. Russell said to consider it a collaboration from the start. Communication is key—be transparent and walk through destination processes together so there are no surprises. Talk through alternate options if there is any pushback and communicate concerns so that it’s a calculated risk for both sides.

Russell and American Speech-Language-Hearing Association (ASHA) Senior Director of Convention & Meetings Ellen Shortill are an example of a destination and an Event Strategist who have worked together on a DBA. Shortill, as well as Maritz Managing Vice President Jeff Sacks, both offered strategies for Event Strategists to use when working with destination, saying, first, be very clear about nuanced needs and expectations in your destination Request for Proposal (RFP)—put it out there upfront if you have small or large things that matter. When and where possible, provide any “non-negotiables” required and desired variables. Shortill said to find out early on if key properties—whether the convention center or hotels—are city- or state-owned or -managed and how that may impact the ability to negotiate.

“I would say one of the most important things is for planners, like, your RFP matters, like you should specify the things that are important, not just required and desired, but it has to do with contracting and terms that are necessary that you want to make sure you have in there.”

- Ellen Shortill
Senior Director of Convention & Meetings
American Speech-Language-Hearing Association

With all the specific variables Event Strategists have to look at—the timing of completing key contracts, hotel blocks and convention center license agreements—there needs to be a strategy with the destination about how and when you will get everything under contract, Sacks said. Sacks suggested always approaching the process as a real partnership—the DBA is meant to help and protect both parties, and it is a legally binding agreement, so consultation with legal counsel will be important. Shortill also said speaking with your attorneys and understanding how to maximize risk mitigation is key, as the DBA is a binding legal agreement. Having protections in place is important, especially with the high value and spend of city-wide events. Your event can be moved, and if you negotiate mutual cancellation, you have financial protections. Shortill said she has a mini “cheat sheet” from her association’s attorney of key “must haves” and “ideals.”

And in the wake of the pandemic, Event Strategists now have to plan for the unimaginable. In the spirit of partnership, Shortill said that she’s working to add some language that addresses extreme circumstances and the need to collaborate in the event of unanticipated variables.

Access the DBA Toolkit 

Destinations International’s DBA toolkit provides resources to support the creation of clear and concise future-year agreements that bring value to everyone involved. Event Organizers should familiarize themselves with the principles and what to expect when working with a destination to confirm a city-wide event in future years.

Access the DBA Toolkit