Comp ratio

The number of complimentary rooms or tickets a venue grants per number booked.

How it works in practice

A comp ratio is a concession: for every so many paid units, the venue gives one free. Hotels apply it to room nights in a room block; some apply it to meals (one complimentary plate per so many paid) or to meeting space. Attractions and theatres do the same with group tickets. The ratio is negotiated, not fixed, and it usually counts paid units actually picked up, not the number you held.

Comps are most useful for the people who make the event work but are not paying guests: the planner, the stage manager, a performer travelling from out of town, the speaker. Each comp is money that stays inside the budget.

Worked numbers

At a $289 group rate, the difference between those rows is a few hundred dollars. On a large conference it adds up, and it is easier to negotiate before signing than at the end.

How to handle it

1. Ask for comps in the RFP so every hotel answers the question.
2. Negotiate the ratio and whether comps are earned per night or cumulatively.
3. Ask that comps be applied to specific rooms (staff rooms, a suite) or as a credit on the master bill.
4. Track pickup; if it drops, your comps drop too.
5. Check the final invoice. Comps are frequently missed on the first version of a bill.

Questions to ask

• Is the comp based on room nights picked up or the original block size?
• Can comps be converted to a credit if we do not need the rooms?
• Do comps cover taxes and fees, or only the room rate?
• Are there meal or meeting-room comps at this spend level?

Comps also interact with attrition. Some contracts count comp rooms toward pickup; others do not. If you are close to the attrition line, that detail matters.

For small social events, comp ratios rarely come into play. For corporate retreats and conferences with out-of-town attendees, put the ratio on your negotiation list next to rate, cut-off and attrition.