Hotel Attrition and Cancellation Penalties Assistance, apply penalties to a future meeting,re-sell rooms,no cancellation clause,meeting cancellation

Attrition and Cancellation Assistance (4)

12. Ask the hotel to apply any penalties to a future meeting. Hotels always want to re-book business and to maintain client relationships. You will have to pay the penalties as outlined in the contract but the hotel may be willing to consider those penalties (or a portion thereof) as a cash deposit on a future meeting if it is booked within a certain period of time - usually a year. If you are willing to sign a contract immediately, the penalty may be waived entirely. In rare cases with chain properties, they may make some type of allowance as long as you book something into a chain affiliated property.

13. Simply offer to settle with the hotel. Some organizations do not have the budgets or financial means to support large scale attrition penalties. Be truthful with the hotel and let them know what you can afford to pay. You might be surprised at the result. Hotels are generally not interested in taking legal action unless they feel they have no other option and the amount involved is substantial.

14. If you know you are going to be in an attrition penalty situation, take it upon yourself to try and re-sell the rooms. It is not easy to do but it can be done. You might have to do it at a substantial discount but if successful, it will help mitigate your loss. Let other divisions in your organization know about your situation. Use your business contacts and your membership in any professional organizations to spread the word. Make sure the hotel knows you are trying to help re-sell the rooms, especially if you don't have a re-sell clause.

In addition, companies like ours can be a resource for you in an attrition situation. We book a substantial number of meetings throughout the year and are always looking for extra value. It is part of what we do. If we know in advance about these situations, we will notify our representatives and clients of your specific opportunity - while keeping your name out of it - in hopes that we can uncover an opportunity that will be beneficial to all parties.

Before Contract is Signed

As is the case with attrition, it is best to address cancellation issues prior to signing a contract. Here are some things you can do to address a cancellation situation before it occurs. Please note that meeting cancellations are much more severe in nature and difficult to address so your options are limited.

1. Ask for no cancellation clause at all. Make sure clause states there are no penalties for cancellation. In some cases, contracts without cancellation clauses have been found to be binding for all revenue commitments outlined in the contract.

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