Leaving So Soon? Early-Departure Fees
Clause: Please Don't Go!
In the event that any Group guest checks out prior to the reserved check-out date, the hotel will charge an early-departure fee of $X.
Effect: Take Away the Sting
Early-departure fees are part of a hotel's strategy to maximize occupancy. If a guest makes a reservation for four nights and leaves after only two, the hotel might have already turned away business that it could have accepted.
Depending on whether meeting attendees are paying for their own room nights or the group is paying for all or some of the room nights on a master account, this is a contract clause that could affect the group, the attendees, or both.
If the meeting attendee/hotel guest is not aware of the early-departure fee, having to pay it may leave the attendee upset with both the hotel and the group. To minimize the negative impact of early-departure fees on the group or its attendees, the group should do the following:
Make sure the clause allows the guest to verify and change the departure date at check-in, so that the early-departure fee is charged only if the guest changes his departure date after check-in.
Make sure the early-departure fee can be waived if a guest must check out before the verified departure date because of an emergency. The hotel may request documentation of the emergency.
Disclose early-departure-fee policies to attendees on the housing reservation form, Web site, or meeting registration materials so that attendees are aware of it up front.
Consider negotiating a waiver of the early-departure fee for staff, VIPs, and speakers.
If early-departure fees are collected by the hotel from group guests, those amounts should be documented and credited to the group's pickup for the purpose of calculating attrition. After all, it is still revenue received by the hotel from the group's attendees.
Tyra W. Hilliard, J.D., CMP, is an associate professor of meeting and event management at The University of Nevada — Las Vegas. She can be contacted at tyra.hilliard@gmail.com.
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