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Rebook Clause and Why It’s Important

REBOOK CLAUSE

In the unlikely event that Group must cancel this event, or incurs any attrition charges, Hotel agrees to allow Group to utilize 100% of any fees paid as a one-time credit towards a future program to be held within 12 months of original meeting dates.  Outside of 12 months, Hotel agrees to allow Group to utilize 50% of any fees paid as a one-time credit.

The Rebook Clause is a clause that 20 years ago was just a given based on the relationship between client and hotel.  The client would need to cancel or reschedule a definite meeting at the hotel that they booked and the hotel sales person would just move their dates or reschedule their meeting for another available date at no cost.  OH HOW TIMES HAVE CHANGED!  Even strong hotel relationships can’t save you when needing to cancel or change dates for a definite hotel meeting which is where this Rebook Clause becomes vital!  This clause allows you to use your cancellation or attrition dollars (once paid to the hotel) towards a future meeting at the same hotel or it basically becomes a “deposit” for a future meeting or group.  The average is typically being able to use 100% of your dollars within 12 months and 50% outside of 12 months but that changes based on the hotel you are dealing with. 

Cancelling or dealing with hotel attrition is not fun but having a fair Rebook Clause in your contract will at least make sure that you don’t have to waste money when dealing with this situation.  Also, having a reputable partner and hotel consultant such as myself on your side will give you much more leverage and knowledge based on my extensive hotel experience and strong hotel relationships.

If you have any further questions regarding this clause or if you have any additional “TIPS” that you would like to share, feel free to contact me at mdallman@hpnglobal.com.

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