September 7, 2020

Tips for Negotiating with Hotels and Venues in the New Normal – An AMI Executive Update

Learn how negotiating with hotels and venues has changed drastically in the last few months. More agreeable cancellation terms, deposit schedules, and no attrition are just a few of the tips that AMI President, Todd Bludworth shares in this AMI Executive Update.

Force majeure

Allows a client or venue to cancel the contract with no penalty due to acts of God, natural disasters, or civil unrest. This clause is now likely to include an outbreak of disease, quarantine restrictions, and epidemic amongst another verbiage that now exist because of this pandemic.

Several hotel brands have already implemented these changes as they understand the concerns their clients and travelers feel as we navigate this pandemic. Including these specific terms as a part of fundamental negotiations will become standard practice.

Ask for no attrition

This clause allows for the client to block a certain number of rooms without being held financially liable for the ones that were not booked or used during their program or event. This is especially important as we face more travel restrictions and new quarantine orders that can affect the event’s attendance.

Rebook Clause

Don’t forget to ask for a re-book clause. This allows the client to cancel their event regardless of the reason and utilize the cancellation fees towards a future event within a specific period of time. Cancellation fees will still be owed to the hotel but will not be lost. Those funds are applied towards the future meeting as a deposit or final balance.

Gathering Law Clause

And finally, make sure to include a gathering law clause. These relate to the hotel venue being fully aware of what is happening with local and national laws, social distancing restrictions, and being able to comply with those If they can’t accommodate or won’t the client can cancel the agreement without penalty.

We hope you find these tips helpful as you negotiate future contracts with your hotel or venue.

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