BMI Publications

Follow our step-by-step guide to avoiding cancellation charges at venues by focusing on the contract T&Cs

The credit crunch is having many ramifications for business, not least with low attendances at conferences. While cancelling a conference is the last thing a company wants to do, companies do need to play it safe by protecting the contractual agree-ments they have or plan to put in place with conference venues. “It doesn’t do any harm to be prepared for any potential negative impacts arising from the credit crunch,” says Karen Tocher, business tourism manager at Dundee & Angus Convention Bureau. Read on for her step-by-step approach to avoiding unnecessary extras.

Step 1: It’s worth reviewing contracts with venues to ensure that you are protected should the event have low attendance or have to be cancelled altogether. Any discounts or discount rates should also be included in the contract.

Step 2: The gold standard is to deal with venues or suppliers which are members of the Meetings Industry Association (MIA) as it is the cornerstone for professionalism and quality, with all members abiding by a code of conduct. MIA venue members will provide booking terms and conditions which are simple and clear to understand. Make sure any contract has specific references to all arrangements, charges and payments, confirmation of the booking details, charges, cancellations, arrival and departure times.

Step 3: Basic information should be included in the contract, such as the date of the conference and the contact details of the person making the booking. Also, account details for making payments, the invoice terms, purchase order numbers and credit approvals. The contract may also detail a breakdown of the fee payable to the venue as well as money due and the dates instalments are payable. Being specific about the costs will ensure there is no confusion and payments are settled in full and on time.

Step 4: The name of the event should be included in the contract as they will use that as a reference point. Also detail the name of the person managing the conference on the day, along with any facilities required such as AV support or catering. If the conference is being held in a hotel, an additional section should be included for delegate accommodation. Clearly state the required allocation of rooms for delegates, arrival dates, number of nights and type of room required.

Step 5: If your event requires break-out rooms or additional facilities, these details should be discussed as part of the contract. Communicate dates and times of access and departure, the number of delegates expected, how the room should be laid out and whether there is a requirement for set up the previous night or for equipment or items to be held overnight.

Step 6: Build in a specific budget for event catering. Agree a cost per head with the venue and try to negotiate on price. Establish where the refreshments will be served and list this in the contract too.

Step 7: According to the MIA, should a client have to cancel a booking, commission will only be payable on the amount of the cancellation charge levied by the host venue on the client. Venue cancellation policies are often 90 per cent on contracted accommodation and room hire and 65 per cent on contracted food and beverage revenue, being potential loss of profit. If the event is cancelled, the venue has the option to re-sell the facilities on your behalf. Let the host venue management know as early as possible if the event is likely to be cancelled, then, if confirmed, follow up with confirmation of cancellation by letter.

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