By the time you reach this section of the contract, you are often eleven pages deep; your eyes are a bit fuzzy and details like this may seem like something you can accept. And you may but consider this before you agree to the fees. Not all of our ‘101 things to consider when signing a hotel contract’ make the final document as there are clauses that are low risk and others that are simply deal breakers. Each contract is different even for the same program, year over year.
To follow our ‘fair and logical’ thinking one has to consider how leaving early impacts the hotel? With many of our clients, they run their own practice or business and there is a possibility that they would be called back to their office. Maybe 2%. The instances when the gala dinner is on the final night and folks leave early, has a higher possibility of financially impacting the pickup as you may have upwards of 10-25 delegates who leave early.
Location also makes a difference in determining the impact on the hotel. If you are in Montreal during Formula 1 or in a resort destination such as Banff, the resell of these two rooms would be much different. It is just simply harder to resell a room when you don’t have the ‘walk up’ traffic of a metro destination. Island locations like Hawaii and Prince Edward Island also have micro climates and most folks know to have a confirmed reservation before stepping on to the island as you risk not finding availability. Reselling these rooms in these markets do not tend to ‘flip’ as frequently and so the hotel would also expect a discussion on compensation for early departures. This is when knowing your delegate patterns and itinerary becomes key to evaluating your risk.