Page 12 - MRN Winter 2018
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Military Reunion Network | WINTER 2018 | #militaryreunionsmatter
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happens when things don’t go according to plan. when analyzing the numbers,. Perhaps you will
The attrition clause states what is going to happen see consistent numbers when reunions are held in
when you don’t secure all of the rooms you said you September, or when they are on the west coast.
would. As stated earlier, hospitality industry attorneys
we have spoken to state, removing the clause will Armed with the knowledge of your group and
increase planner vulnerability because there is no good historic data, use both to contract realistic
specific contract language to guide contract signers room blocks. Planners sometimes fall into the trap of
as to what should happen next. securing larger blocks because everyone, “said they
were going to be there” when the upcoming reunion
Many hotel contracts are templated forms where was discussed the last time you were together.
unique information such as dates and contacts are TRUST THE DATA over good intentions. If the data
mail merged into the existing document. The “fine shows an original block was for 50 rooms and 35
print” does not change from group to group. The were consistently picked up, then back off to 40.
attrition clause will include something like this: “Group Staying conservative in the initial request significantly
agrees to pay, as liquidated damages, the difference reduces attrition vulnerabilities.
between ninety percent (90%) of the Anticipated
Room Revenue and the Group’s actual usage based The most important part of attrition is being
upon lost room revenue. The amount will be posted comfortable about the clause language. It needs
as a charge to the Group’s master account, plus to be FAIR to both parties. If the hotel waives their
applicable taxes and service charges.” Stated more interest in seeking attrition damages, then that is the
plainly, if the hotel was expecting $25,000 for guest language of the attrition clause. If the hotel wants
rooms and only received $12,000. The planner would 100% of the revenue of the rooms, you did not use.
be on the hook for $22,500 (90% of $25,000) less Change the language and negotiate the terms down
$12,000 which equals $10,500. No wonder reunion to 30% of the revenue of the rooms you did not
planners want to go somewhere else! use. BE SPECIFIC with the verbiage in the clause.
As an example, “the reunion will pay the room rate
There are a few considerations to reduce of $109.00 plus state and local tax of 4% ($4.36) for
vulnerabilities when it comes to attrition: 30% of the rooms that were not utilized”. Be sure
the clause states you get credit for all reservations
1. Know your group connected with the reunion regardless of if they are
2. Keep good history in the block or not. Perhaps one of your attendees
3. Contract realistic blocks booked through Expedia. You should request credit
4. Negotiate the clause language for that reservation even though they did not book
through proper channels. I would also stress a
Know your group means just that. Reunion direct communication to reunion attendees that
planners that have been planning for a while know reservations made outside the block will have a
who will attend the reunion and the factors that can negative impact on the reunion as a whole. Kindly yet
change attendance numbers. Geography, price, sternly direct them NOT to do this.
accessibility and event date all play a role. If reunions
normally take place in September does attendance When I learn planners moved to another location
go down if you move to November? Probably, so it is just because of the attrition clause, the initial
important for your room block to reflect the decrease response is, “Why?”. If you have found the perfect
when you contract the rooms initially. hotel for your reunion with the right dates and rates,
why go somewhere else? When you know your
This is in line with keeping good history. I enjoy group, the historic data, secure realistic blocks and
seeing the long list of places where organizations have fair clause language. Why start over? Book the
have held reunions in the past. Knowing where you hotel and enjoy your reunion!
were is an excellent start. More important are the
details of what the contracted block was and how
many rooms were used. Trends will begin to emerge
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