Disclaimer
The strategies and tactics discussed here regarding attrition and cancellation have been developed as part of our best practices as a hotel site selection company. We are not attorneys and these ideas are offered only as recommendations based on our experience in the hotel industry. Hotel contracts are legal documents and any questions that are legal in nature should be referred to your legal counsel.
The strategies and tactics discussed here regarding attrition and cancellation have been developed as part of our best practices as a hotel site selection company. We are not attorneys and these ideas are offered only as recommendations based on our experience in the hotel industry. Hotel contracts are legal documents and any questions that are legal in nature should be referred to your legal counsel.
Attrition and Cancellation Assistance (6)
6. Anticipated revenue clause - see point #6 in the attrition section.
7. Any negotiation involving a cancellation clause will usually involve the term "liquidated damages". See point #7 in the attrition section. In terms of cancellation, this is an important point as the dollar amounts will usually be significantly higher than what would be typical in an attrition situation. As in the case with attrition, always seek to replace the term revenue with profit.
After Contract is Signed
8. If you have a re-sell clause in your contract, then you are only going to be obligated for whatever rooms have not been re-sold. See point #9 in attrition section.
9. If you have a re-sell clause and have not previously negotiated a sliding payment scale - do it now. Hotels know they have an obligation regarding last-room sold status and this is an excellent way to keep all parties engaged.
10. Ask the hotel if the penalties (or some portions thereof) can be applied to a future meeting - see point #12 in the attrition section. Hotels are often open to this proposition. They value your business and would prefer to keep a happy customer. If you are booked into a chain property ask about applying the penalty revenue to another chain affiliate. While hotels may be open to this idea - after the fact - they will not include it as part of an initial contract negotiation - nor should they.
11. Offer to settle - see point #13 in the attrition section.
12. If you are paying for the space, you own it. Try and re-sell the space. This option is discussed in point #14 of the attrition section. However, with cancellations you generally have much more lead time than you do with attrition. Let the hotel know you are going to try and help them re-sell the space. It will be very helpful for them to understand your part in the re-sell process, especially if the contract does NOT have a re-sell clause in it.
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