Cvent

Here are a couple of simple ideas for planners to put in place to reduce cost liability related to room block costs from lack of attendance and registration.


1. Get a Mitigation Clause in the Contract— Make certain you get credit for any “re-sold rooms” at the hotel.  Every good hotel contract should contain a provision crediting your organization for room nights resold by the hotel.  

2. Get Credit For No Shows — if the  hotel is collecting lost deposits for no showsspeak to the hotel and make sure those funds are credited against the attrition obligation.

3.  Limit Off Site Catering — Move off property Food & Beverage events back into hotel.  This provides an alternative unexpected revenue stream to help offset the room shortfall.

4.  Bring Attendees Back to Contracted Hotel — move attendees that have booked outside the block into the contracted hotel(s) and pay the rate difference.  This will be less expensive than paying full attrition on unused rooms and is a winning proposition for everyone.

5.  Convert Attrition Expense To Gift Certificates — Attrition is converted to gift certificates and then sold to the attendees to giveaway as incentives, etc. Every time a gift certificate is used – a proportionate reduction is made to the attrition obligation.

6.  Book Future Events at the Attrition Hotel — If your organization is able to place other future business into the affected hotel, then you should be able to negotiate a reduction of the attrition obligation based upon that event’s projected value.  This arrangement is most effective if you are able to provide new business during the same calendar year.