I’ve noticed a trend creeping into our sector: the introduction of meeting & event service charges. These charges can sometimes be found tucked away in the small print, or as a surprise for clients on the final invoice. This leaves them in the uncomfortable position of paying an unwanted fee or asking for them to be removed.

Right now, less than 10% of venues are applying service charges – hardly an epidemic. But we all know how quickly these things can spread. Once something is labelled ‘standard practice’ it tends to stick. Before long, what was once ‘optional’ could soon become ‘expected.’

The trouble is, the charges are so varied and inconsistent. Some are very low, others very high. One venue adds 2% to food and beverage, another adds 10% to the entire bill. For a £400,000 event, even a modest 5% means £20,000 suddenly appearing where nobody planned for it. That’s a huge sum. Clients see it and quite rightly ask: why wasn’t this in the delegate rate to begin with?

At Conference Care, we see this first-hand. Clients come to us for clarity and cost certainty. A late-added service charge might seem like a small thing, but it’s amazing how quickly it can delay payments, create awkward conversations, and chip away at the trust between venue, agent, and client.

It’s important to consider where we’re at in the industry right now. Understandably, venues are looking for more ways to support and grow their teams. Service charges are an effective way to do this, and if managed correctly, could lead to better conditions and pay. We all want to see the hospitality industry thrive, but let’s do it with transparency, not hidden costs.

There are other questions too:

What happens if there is a complaint about service? What happens if the venue runs into financial difficulties? Is the service charge the first thing to reduce? Or, do you make adjustments to the event costs? If venues are looking to support staff pay, then it shouldn’t be the first casualty when something goes wrong.

I sometimes think about it this way: imagine if your AV supplier, your web developer, or your PR agency added a 5% “service charge” at the end of their invoice. You would question the cost and most likely refuse to pay it. They quote what it costs to do the job properly, and they stand by it. Why should venues be any different?

Our industry runs on trust – not hidden extras. Adding a service charge might give a short-term lift to the bottom line, but it risks eroding what keeps our clients coming back: transparency, consistency, and respect.

I predict that in the not-too-distant future clients will start asking their agents to ensure discretionary service charges are removed from the bills. Business owners and event planners are savvy, they will spot hidden costs and circumvent them. Once trusted venues will start losing business.

So yes, service charges might offer a short-term boost, but they threaten long-term decline. If we’re serious about fairness – for both clients and staff – then let’s build those costs into the rate. Call them what they are and move forward honestly. That’s how we keep trust alive, and in this industry, trust is everything.

A recent LinkedIn survey I conducted underlines the point. When asked about venue service charges:

• 76% of respondents said they were not happy to pay them
• 12% were unsure
• 12% were willing to accept them

That is a clear signal from the marketplace: clients do not want these additional, discretionary fees. The message is simple – if our industry is serious about transparency and building trust, service charges should be included in the rate or removed altogether.