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Hotels should give credit for re-sold rooms!


Posted on May 03, 2006

Planner Peeve -- Why should I pay full price for rooms that the hotel didn’t pick up when it has resold those rooms to others?

There is something that feels inherently unfair to a planner when they are asked to pay damages for the rooms that they were unable to pick up when they are sold to other guests of the hotel. They reason, “Is it fair for the hotel to get paid twice for a guest room? If the hotel is not ultimately damaged, why should they reap a financial benefit at the planner’s expense?”


Many hotels point to two items:

First, the planner signed a contract and is obligated to fulfill it.

Second, there is a cost involved in re-selling the room (which many times is sold at a lower price because of the short lead time) so the hotel should reap the benefits of their efforts.

Is there a middle ground that would satisfy everyone’s needs?

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Comments

meetingmavin

It feels wrong because it IS wrong. The term is frequently known as double dipping. With that said, It is the planners responsibility to protect their group's interest by including appropriate language in the agreement in order to avoid these types of occurences. Without the protective contract clauses you may believe the hotel's actions to be unfair but more often then not they are perfectly within their rights (presuming their contract language is in tact). The same holds true for any contract within any transaction whether it is meeting planning or widget making: Know what you are signing and what your potential risks are. Make every attempt to minimize that risk by using some foresight. Deal with possible issues on the front end so that your not caught off guard on the back end with virtually no leverage to negotiate after the contract has already been signed.

Val Johnston

Perhaps hotels can ask for the difference in the price of the room. Contract price versus the actual sold price. Something is better than nothing. I have been able to avoid attrition, most often. I've paid twice in almost 10 years. Hotel relationships are the key!

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