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Hotels are going after attrition at the cut-off date and are also pushing more and more for daily attrition. Remember to include attrition clauses into your contracts that cover the following areas:

• Do not forget to ask to apply penalties to future business.
• Ask for a clause that states that if the hotel represents itself as sold out anytime during your program, then there will be no attrition for the group.
• Include contract terms allowing the meeting planner to replace canceled room names both before and after the cut-off date. In this case, any rooms not resold means that the group pays for them.

The law does not require damages to be based on profit rather than revenue—damages can be calculated using on revenue so long as the amount is reasonable. This means having the right attrition contract clause protecting you is very important. Also, under the law of liquidated damages, credit for mitigation or resale is not required. Planners should know that this is not legally required and but is often a concession we negotiate for our clients.

Make sure you have someone on your side!

Call me anytime. I’m here to help!

MARK DALLMAN
HPN Global
Regional VP Sales
13825 N. Northsight Blvd, Suite 201
Scottsdale, AZ 85260
Cell: 612-432-1397
Email: mdallman@hpnglobal.com