Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: January 13, 2004

Meeting planners are always looking for ways to minimize liability for cancellation or attrition. Rebooking the meeting can often reduce or possibly eliminate anticipated charges altogether. One of Conferon’s Senior Account Executives, Bill MacDonald, has had success with his groups in this area and the following is a summary of his remarks.

Securing acceptance by hotels of a contract clause for rebooking is more common for cancellation than for attrition. In both scenarios, it is more palatable for hotels to negotiate rebooking after the fact than in the original contract. Rebooking is most common with corporate or smaller groups because these meetings have a higher likelihood of cancellation and are usually booked on shorter notice. Many large corporations have meeting planning departments with databases where meeting information is posted, permitting flexibility in juggling meetings. Large associations may find that rebooking works successfully for them if they hold many smaller regional or educational events.

A typical contract clause for cancellation is:
In the event of cancellation by Group, Hotel agrees to waive or refund the cancellation fee if Group is able to book a meeting at Hotel of comparable size and revenue to occur within one year of the canceled room block dates.

When a cancellation does take place, hotels will often take a loss over the original dates, which that may not help your negotiating stance for the rebooking. You may not get your preferred dates, concessions or meeting space. Rebooking a large meeting or several smaller meetings within one year from the time of cancellation are variations that a hotel may find acceptable. Hotels may require that the rebooked meeting take place in the same fiscal year, be no more than one meeting of the same size, or require that the cancellation charge be paid up front and then credited back at the time of the rebooked meeting. Normally, rebooking must occur at the same hotel or ownership group. Rebooking within the same chain or management company is becoming less and less common

Rebooking is a handy device to keep available in your liability fix-it toolbox. Be persistent - you can make it work in contracts or negotiations after the fact

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all legal issues.)