The conversations surrounding cancellations and attrition with your suppliers and event providers have always remained critical and crucial. Given the current global influences and pandemic impact, these discussions are especially paramount and essential. Business event strategists need to understand the implications and impact of special agreement provisions relative to their respective organizations and attendees during these unprecedented times.
While the full scope of total risk assumptions and financial obligations are not always specifically realized by the organization initially, the meeting professional can and should work with their suppliers to minimize the negative impacts as it relates to cancellation and attrition and other contract performance
Have You Reviewed the Clauses in the Event Contract?
A first step in the process of evaluating your current existing and/or future program would be to review the clauses in the event contract(s). It is critical to process the cancellation and attrition terms, as well as review of the force majeure clause to understand the financial and performance implications of the agreement. Contracts may or may not have specific clauses, which includes language that provides for the alleviation of certain obligations or mitigation, and event professionals will need to be aware of the agreement commitment.
Identify Re-Negotiation Opportunities
Opportunities exist for meeting professionals to re-negotiate and to conduct discussions with your hotels/venues regarding your agreement and performance implications. Based on specific market conditions and nature of the program, there may be an option to discuss an addendum to an existing agreement to facilitate the program to meet contractual obligation and performance clauses in a modified way. Every event and program has a different value to the hotel, and it is imperative to understand how the hotel evaluates the specific program and its impact on that venue/facility
Are You Familiar with Re-Selling Attrition?
Understanding the performance of your room block agreement will assist in the conversations surrounding possible attrition. Given the impact of unforeseeable events to possible reduced performance of the agreement, event professionals will need to understand ways, if possible, to mitigate any shortfall or damages owed. Market conditions, program’s value, and business impact will facilitate a discussion relative to re-sell opportunities to impact attrition.
Relationships and open communication with transparency matters. During the current climate, it is especially critical to have these honest and timely communication and dialogues with your sales representatives from the hotels and venues, including your global/regional chain contacts, to ensure visibility and transparency of your event status and to provide essential updates. Each hotel or venue evaluates the event summary and scope differently. Meeting professionals must be able to understand the position and perspective of the supplier to understand how they are viewing one’s specific program or event. Event professionals also must share their position and situation, and together with the supplier, hopefully, find a mutual resolution.
To learn more about other best practices that will help define the success of your meetings, check out more of our blog posts on best practices for meetings success:
- Supplier Optimization Best Practices that will Define the Success of Your Meetings
- Workflow Best Practices that will Define the Success of Your Meetings
- Data Best Practices that will Define the Success of Your Meetings
- Policy Best Practices that will Define the Success of Your Meetings
Now more than ever, corporations are looking for easier, more efficient, and cost-effective meetings management strategies to navigate through this period of uncertainty and into the future.
To learn more about the new normal and how to prepare for the changes in travel, meetings, and events worldwide, download the complimentary titled, Prepare for a Changed World, which delivers timely peer to peer advice from leading travel managers, meeting planners, procurement, TMCs, and industry partners.
To learn more about how Groupize helps organizations simplify meeting management, please visit www.groupize.com or call +1-508-232-7719.