Hotel AV Cost Trap #3: Signing Before You Even Know What You’re Agreeing To

One of the most surprising — and frustrating — hotel AV cost traps we see is when clients are asked by the in-house A/V company to sign their "rules and regulations" documents before they even know what the in-house AV company may or may not be providing.

Imagine this: You’ve just booked your event at a hotel. You’ve already put down a non-refundable deposit for the event space. Before you even receive a proposal, scope of work, or pricing, you get an email with a long list of “Production and AV rules.” embedded within a contract that you’re expected to sign acknowledging agreement. No scope. No costs. No context.

Why This Is a Problem

1. Pressure Without Transparency

These documents are crafted by the in-house AV company and presented as if they were hotel policy. They hide expensive requirements like mandatory “AV supervisors,” exclusive rigging control, and costly electrical connection fees — all buried in fine print and revealed only after the client is already committed.

2. The Non-Refundable Deposit Trap

This tactic is especially deceptive because by the time clients see these rules, they’ve already committed thousands of dollars in non-refundable deposits for the venue. If the in-house AV costs turn out to be far higher than expected, switching venues is no longer an option. This tactic allow the in-house AV partners to hold clients hostage with inflated charges.

3. The “Concession” Illusion

Hotels sometimes try to smooth things over by offering a small concession — maybe a discount on meeting space or a minor credit. But clients should be aware that in most hotels, this is rarely genuine. It’s well known in the industry that hotels share in the revenue generated by their in-house AV providers. Any “concession” given up front is quickly recaptured — and then some — once the padded AV charges hit the final bill.

4. Who Really Wrote These Rules?

Despite being presented under hotel letterhead, these “rules and regulations” are actually generated by the in-house AV provider. The hotel, in many cases, is not even aware of the details. The first clue? The document often carries two letterheads — one for the hotel and one for the AV provider — but no reference to any actual person, department, or division within either organization.  A legitimate legal/contractual document should have a clear signatory and contact information. Many hotels allows this to pass unchecked, effectively endorsing the AV company’s self-serving terms.

5. Limitless Insurance & Shifting Liability

These rules typically require the client and their outside AV partner to carry extremely high insurance coverage, naming every hotel affiliate and employee as “additional insureds.” In practice, this shifts nearly all liability onto the client and the outside AV vendor — even if the incident may be caused by hotel staff.

The hypocrisy is clear: if the hotel hires a subcontractor to change carpet, move furniture, or hang décor, no AV liaison is required, and no excessive liability transfer is imposed. Yet when a client hires a qualified outside AV company, suddenly the hotel “requires” costly supervisors and inflated insurance. This is not hotel safety policy — it’s the in-house AV company protecting its monopoly, while the hotel chooses to look the other way.

6. Blurred Lines of Authority

Because these documents lack a responsible signatory, clients are left guessing: is this truly a venue requirement, or simply the in-house AV company dictating terms? The truth is usually the latter.

7. Restricting Client Choice

By slipping these documents in early, in-house AV companies create the impression that everything is “standard.” In reality, these rules are designed to make it harder for clients to hire an outside AV company — even if that outside partner offers better pricing, higher-quality equipment, and more personalized service. Many hotels tolerate this arrangement because they profit from it.

What Clients Should Do

• Don’t sign blindly. Always ask: Who wrote this document, and under what authority?

• Separate true safety requirements from business tactics. Fire codes and insurance are legitimate. AV liaison fees, exclusivity clauses, and inflated insurance requirements are business practices designed to benefit the in-house provider.

• Insist on full disclosure first. Before signing, demand to know exactly what the in-house AV company is providing, what it will cost, and what alternatives you have with outside AV vendors.

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✅ Quick Checklist for Clients

Before signing any hotel AV “rules and regulations,” ask these five questions:

1. Who authored this document? Is it a true hotel policy, or something written by the in-house AV provider?

2. What are genuine safety requirements vs. business tactics?

3. What liability am I accepting? Why am I being asked to carry unlimited insurance or assume responsibility for things outside my control?

4. Why is this applied only to AV vendors? If the hotel hires subcontractors for other services, do they face the same requirements?

5. What happens if I don’t sign? Can I still use an outside AV vendor with proper insurance and safety compliance?

Use this checklist to protect yourself from one of the most common hotel AV cost traps.

Our Perspective

As an independent AV company, we believe true partnership means transparency, not hidden agreements. The fact that hotels allow their in-house AV partners to impose these rules — while profiting from the outcome — makes this one of the most deceptive practices in the industry.

By recognizing these hotel AV cost traps, you can make more informed decisions, protect your budget, and ensure your event is produced by the team you actually want — not the one you were pressured into.