The Hotel AV Commission: What It Costs Event Planners (And How to Avoid It)

If you have ever planned a corporate event at a hotel and felt the AV bill was high, you were not imagining it. There is a structural reason. The in-house AV provider at most hotels — Encore being the largest — keeps 30 to 50% of every invoice as a commission paid back to the property. That commission is baked into your quote before anyone turns on a light.

This is not speculation. It is on the record, in Encore's 2026 SEC filing, in their own words:

“These exclusive contracts do not preclude outside providers, and event planners retain the option to use outside providers.”

Translation: exclusivity prevents another company from being permanently installed in the building. It does not require you to use the house vendor for your event.

But the way most hotel contracts are written, planners don't know that. They get the in-house quote, see the price, and either accept it or push back a little and accept it. Meanwhile, the hotel has already made the decision that an outside provider isn't welcome.

Here is what is actually happening to the money, what you can do about it, and how to bring in an outside AV company without getting a “liaison fee” for the trouble.

The math on a typical ballroom event

Let's walk through a real example. Three-day, 300-attendee corporate conference with an awards gala. Standard gear: projector, line array sound, LED video wall, lighting wash, 4 techs.

The in-house quote (Encore-style)

Line item	Cost
Projector and 9x16 screen	$3,690
Stage light wash	$3,305
Wireless microphones (8)	$558
House audio system	$567
20-amp power (3 drops × 3 days)	$844
Tech labor (3 days × 4 techs × $4,195)	$12,587
Outside-vendor liaison fee (3 days × $1,000)	$3,000
Subtotal	$24,551
24% service charge	$5,892
Total planner pays	$30,443
Hotel commission baked in (40% × $30,443)	~$12,000

That is $30,443 the planner hands over. The hotel walks away with roughly $12,000 in commission, the in-house provider keeps the rest, and the planner got AV at 2 to 3× what the same gear would cost on the open market.

The HPS outside quote (same event)

Line item	Cost
Full JBL SRX line array × 3 days	$2,490
Midas M32 console × 3 days	$600
Shure ULX-D wireless (8) × 3 days	$1,320
Epson 4K projector + 9x16 screen × 3 days	$1,350
LED wall (8 panels + processor) × 3 days	$4,275
Lighting wash + console	included
3 techs × 3 days × 8 hours × $65	$4,680
Delivery + strike (50 mi)	$390
Subtotal	$15,105
NJ sales tax (6.625%)	$1,000
Total planner pays	$16,105

Same gear. Same scope. Same venue. The planner saves $14,338.

The hotel does not lose the booking. In fact, the hotel gains it — because the planner was about to look at a different property that had a lower AV quote. With an outside provider, the hotel gets a smaller rev-share ($1,510 if we do 10% with you) but the planner books the room block.

Where the commission comes from

Encore's SEC filing describes their revenue model in plain English. They “book that revenue on the gross basis, with commissions paid to venues recorded as a cost of revenue.” So the 30 to 50% commission is real, recurring, and disclosed to investors.

It is not a one-time referral fee. It is a structural part of the in-house model. And the in-house provider has to inflate their prices to cover it. That inflation is what shows up in your invoice.

The “outside vendor liaison fee”

Most hotels will charge you a separate fee if you bring your own AV. Common names: “outside vendor fee”, “liaison fee”, “house engineer fee”, “patch fee”. Industry-standard rate: $500 to $1,000 per day. Some hotels waive it. Most don't. Some will, if you push.

A $1,000/day liaison fee is a 5% add-on to the in-house quote. It exists to make the outside option look worse. Which is the opposite of what's good for the planner.

The Encore SEC filing says the exclusivity prevents another company from being permanently installed in the building. It does not say the planner has to use Encore. So the liaison fee is a hotel policy, not a contract term you have to accept.

How to bring in outside AV and not get the surcharge

Three things that work:

1. Ask for the AV exclusivity language in writing

Before you sign the hotel contract, ask: “Can you send me the section of the contract that addresses exclusive AV vendors?” If they can't produce it, you have leverage. If they can, the language probably says “exclusive” for the building, not for your event. Read carefully.

2. Get the outside quote first, every time

Have a real production company quote the same scope. Use the number as a benchmark. Hotel AV quotes drop 20 to 40% when the planner has a real outside number. That is not a threat — it is a market check.

3. Negotiate the liaison fee into the room block

This is the move that works. “We are booking 120 room nights and $40K in F&B. The outside-vendor liaison fee is $3,000. Can we waive it as part of this contract?” The hotel is making $50K to $80K on the room block. They will waive the fee. Just ask.

What to ask the hotel

• Is there an in-house AV provider, and is its use mandatory or preferred?
• What does the exclusivity actually cover — the building, or my specific event?
• If I bring an outside production company, what fees apply? Get the full list in writing: patch fees, house engineer fees, rigging fees, power, internet, supervisor charges.
• Will you waive or cap those fees as part of the room block and F&B agreement?
• Will you put every concession in the signed contract or banquet event order, not just in an email?

Get the answer in writing. Verbal approvals from a sales manager do not survive staff turnover. If a fee is waived, it lives in the signed document.

What to ask the in-house AV provider

• What is your commission to the hotel? (They will not tell you. The number is in the SEC filing for the public ones.)
• Can I get an itemized quote, line by line, for the same scope as the outside provider?
• If the outside provider is cheaper for the same gear, will you match it?

The third question is the one that closes the gap. If they say no, you know exactly what you are paying for.

What to ask the outside AV company

• Will you itemize the quote line for line, so I can compare to the in-house number?
• Do you have a list of recent events at this property or comparable properties?
• Will you handle the liaison fee negotiation with the hotel, or do I?
• Will you be onsite for load-in, show, and strike? Who is the lead tech?
• Do you have backup gear on every job? What failsafe if a wireless mic dies mid-keynote?

The right outside provider answers all of these in writing, in one document, before you sign anything.

The bottom line

The hotel AV commission is a structural cost, not a service fee. It is real, it is on the SEC record, and it adds 30 to 50% to your invoice. You do not have to pay it. The Encore filing confirms you have the option to bring an outside provider. Most planners just don't know.

If you are planning a multi-day event at a hotel this year, get an outside quote. Use it as leverage. Negotiate the liaison fee into the room block. Bring in the provider that gives you better gear, better service, and a line-itemed invoice.

The hotel still gets the booking. The planner saves $14K. The event runs better. That is the entire math.

— Harris Production Services, Atlantic City NJ and West Chester PA. Call (609) 439-4800.