CLAUSE & EFFECT
ONE OF your attendees made his reservation before the cut-off date and guaranteed for late arrival with a credit card. He arrives at the hotel and is told that while the hotel has his reservation in the system, it does not have a room for him and will be sending him across the street to the ABC Hotel for the night.
In an effort to maximize their revenues, hotels regularly sell more hotel rooms than they have for a given night. This concept of “yield management” is based on sound business principles. Principled or not, this is no comfort to the meeting planner whose attendees are “walked” to another hotel.
NO CLAUSE, NO RECOURSE
If no clause is in the contract, the meeting planner should add one. One negotiation tack is to specify in the contract that the hotel will not overbook over the meeting dates and that, if it does, it will pay the group a set amount of money per room for any group room that it walks. The hotel may still overbook and walk guests, but is likely to walk attendees from other groups (or transient guests) before they will walk your attendees.
An alternate plan is to add a clause that explains what reparations the hotel will offer to a group or group attendee if the hotel does have to walk a group guest, including
Consulting with the group's on-site contact to prioritize group attendees that are walked,
Making sure the hotel maintains the name of any walked guest on a special list so that anyone who calls for the walked guest can be referred to the guest's new hotel,
Providing or reimbursing transportation for the attendee between the original hotel and the new hotel during the meeting,
Providing one or more long-distance telephone calls so the attendee can inform their family and/or office of the change.
Perhaps most importantly, be sure that any walked rooms are credited to the group's pick up for purposes of calculating attrition damages.
Tyra W. Hilliard, Esq., (tyra@sumnerassociates.net) is an attorney at Sumner & Associates, P.C., Suwanee, Ga.
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