Event Crisis

[TFNONE]

AIBU to expect some flexibility from a major chain hotel when it comes to a big event Im hosting in two weeks? Due to Corona Virus we are around 50 people down on a ticketed event. We have asked the hotel if they will reduced our numbers, which were 180, to 150, which would help us out alot. They have refused and said we signed the contract (which we did, April 2019) and they have every right to charge us, at an addition cost to my small business of £2000.

Should they be more accommodating due to the news?

Honestly I don't know. Yes perhaps they should be more flexible. I'm having the same issues. I run a training company and people are dropping like flies. However if I let everyone cancel for free I'll go bust v quickly, like in 6 weeks or so. I have 10 members of staff to pay.

I'm finding venues strict about cancellation policies. I can't let everyone cancel for free and I dont suppose the venues can either.

I keep being told that it is 'unprecedented' yes I know it is. But that doesn't change that if you choose not to attend an event that is still running it is your choice.

Do you not have a cancellation policy for your event.

I'm sorry. I feel for you I really do.

A lot of businesses are going to go bust over the next few months, big and small. Just because they are a chain doesn't mean this situation isn't putting them under financial pressure too.

Do you have insurance that will cover this?

Well it would be nice if they could be more flexible, but they are running a business too.

I own a business, 8 staff. I've got increased costs from the impending home working, and two of our major clients are in different bits of the travel sector and taking a major hammering (eg one of their household name major clients has just said 'stopping everything until May). If they both go under, we might too. The economic impact is very real.

Writing that, I realise that there are two more big clients for us who must be having major problems, as they are part of hospitality supply chain. Fuck.

So they should lose money so you don't have to?

You've had a year to sell your tickets.

If they are part of a large chain check out their parent company's view on refunds due to Covid. They are often quite sensible as they are trying to retain future business and are not bothered about loosing the one off event fee.

Thank you for the replies.

We have not had a year to sell our tickets, we have had 4 months. This has been going on and in the news since January.
The hotel will not be losing money, we are still going to be paying for the people who are attending, but really dont see why we should have to pay £48 for the 50 who aren't.

I have spoken to our insurance company who have said no one is covered for this, this is unprecedented.

Chances are you won't be able to run the event at this rate surely ?

We’ve just had to cancel an event - £24k deposit gone. Not to mention all the hotel rooms.

@tfnone how much did you agree to pay the hotel? Are you expecting to pay less than the agreed figure? If so, they will be losing money.

Will people be buying drinks etc? I know it sounds cheeky but could you ask them to charge a bit more behind the bar and make some money back that way?

They will need to meet a minimum spend and have probably turned away other events based on the agreement they have with you.
I used to be an events manager in hotels and they are very strict on things like this.
I'd imagine they have several upcoming events who are all trying to drop numbers, cancel or reschedule and they simply can't afford to take the hit. They still have their own bills and wages to pay.

We agreed with the hotel, when we booked last April to pay for 180 meals, including wine. We will need 135, and asked the hotel if they would split the difference, they will not actually be making any of the additional meals, just charging us for them. This is what I have an issue with. The hotel will make a full £48 pure profit due to people not booking out of fear.

The contract terms were presumably clear?

Your event insurance will cover this.

Are you refunding the people who have cancelled? If not there isn’t an issue, surely?

@tfnone how about offering to cover the purchase cost of the food for the extra meals - so they're not losing any money, just not making a profit? They've probably already ordered it.

I see our local event costing £149 PP in 2 months time has been cancelled. They are not refunding people quoting force majure. Bloody shocking. Check your contract. I am assuming it has a force majure clause.

A major hotel chain should not impose the penalty, it's not like they are a small business.

I have spoken to our insurance company who have said no one is covered for this, this is unprecedented.

That's not on, everybody else is taking the hit and the insurance companies sit there and watch the cash rolling in.

Particularly if the hotel is part of a chain, they will be under strict instructions to hold people to their contracts otherwise the knock on effects could be catastrophic for their business.

Unfortunately that's why you should always build in 'attrition' clauses into contracts that are signed so far out that allows you to drop x% of your numbers without charge at 2 months, 1 month and then 2 weeks out.

Have you got anything in your contract about final numbers / force majeur etc that you can use??

If they refuse to let you out of the original nunbers, insist they make the extra meals and offer them to homeless/food insecure or something.

They are being unreasonable. They aren't losing money from the people not going and should be aware that they are losing any future business by being so unflexible.

Simple case of contract law, morals don’t account for much at times of crisis sadly, every business is suffering large & small.

I can't help thinking that in another 2 weeks time, hotels may have to close due to staff shortages and self isolation. Will they still expect to be paid then?