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Family Reunion Forum

Re: hotel contracts and guest room block

Hi Ann,
I think it varies with hotels. I have seen where a "Guest Room Attrition" Clause was added to a contract which basically stated that if the family or organization did not block at least 85% of their room block, the family or organization will be financially responsible...in wording like "the Group will pay as reasonable liquidated damages an amount equal to the difference between 85% of the minimum guest room revenue set forth above and the actual guest room revenue of the Group, less the guest room revenue (at an agreed upon resale value equal to the full group rate for each day that rooms are resold) resulting from any rooms resold by the Hotel."

Check your hotel contract to see if there's such a clause. If there is, then yes your group may be financially responsible for what has not been booked. If not, talk to your salesperson to make sure you won't be charged. I would say that if it's not in the contract, then your family won't be liable. But double check. The hotel we used in Atlanta did not give us such a clause and informed us that we will not be held responsible if we didn't meet our room block. However, another family that I am aware of are using a hotel that included the above clause in their contract.

Also, the last hotel we used was very cooperative. They extended the room block deadline until a week before the reunion versus the typical month or so before the reunion. They also increased the room block. We started out with a conservative number of rooms and gradually increased the room block as we monitored the bookings. Luckily, we ended up getting twice as many rooms as we had in our original room block.

Family reunions are big business for hotels. On my reunion alone, the last hotel made over $10,000, and that does NOT include the rooms that family members booked. Get a calculator...63 rooms at $89.00 per night for two nights. That's an additional $11,000 right there!! Therefore, don't be afraid to negotiate what you want. The hotel will still make a lot of money in the end.

Good Luck On Your Reunion!
Melvin


18 Dec 2002 :: 14 Nov 2008
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