Event Services

In October, insurance giant American International Group (AIG) made headlines by cancelling a corporate retreat to the Ritz Carlton Half Moon Bay resort in California, along with over 160 other planned conferences and events. Though AIG was not your typical cancellation scenario—the company was notoriously rescued from bankruptcy by a $85 billion loan from the Federal Reserve—their need to cancel a meeting (or hundreds) is certainly a familiar one. Maybe the turnout was lower than expected, or perhaps new budgetary restrictions resulted in a loss of funds. Whatever the reason, the decision to cancel can be a costly one. Here are a few ways to mitigate the damage:

• Get cancellation insurance. Many reputable companies offer insurance against your event going bust. More affordable than a complete cancellation, insurance can refund your costs in the event of cancellation, postponement, interruption, relocation or an enforced reduced attendance. Generally, event planners are able to return funds to attendees and exhibitors while paying expenses, and possibly even keeping some of the profits.

• Postpone for a later date. While it won’t save all the incurred costs, moving the date to a later time can help you save face (and money) with your venue and service providers. Event suppliers are aware of the economic conditions, too—use this to your advantage. Negotiate a waived cancellation fee by promising future business.

• Cancel early. If there’s just no room in the budget for another attempt, be sure to cancel as soon as you find out. Don't waste time hoping for the "What if?" possibility to play out. Early cancellation is the easiest way to avoid incurring fees.

As AIG and many other organizations know, meeting cancellations are inevitable in a tough economic climate. With the right planning, however, you can successfully put off your meeting until brighter days, and not pay dearly for it.