Meetings cancellations give buyers an edge in supplier negotiations
By Susan Avery -- Purchasing, 4/9/2009 2:00:00 AM
It's becoming a buyer's market for meetings and events.
As the economy forces some companies to cancel or postpone meetings and events, purchasing professionals may be gaining an edge in negotiations with hotel properties and other suppliers.
Now's the time for buyers to attempt to negotiate less severe penalties for cancellations occurring within 30 days, according to new research published by Carlson Wagonlit Travel in Minneapolis. In fact, the February release of CWT North America reports that buyers may even be successful at negotiating a 45-day cancellation cause, rather than the usual 30 or 60 days.
Typically hotel contracts have hefty penalties and fees for companies that cancel planned meetings and events.
For companies canceling meetings and events now, a hotelier may allow the travel buyer to apply a cancellation fee toward future meetings or events at the property, says CWT. Some hoteliers may be willing to apply the fees against room nights used by the buyer's transient travel program. Or, the hotel chain may allow the buyer to apply cancellation fees from one property toward a meeting held at another property within the chain.
Forty-six percent of purchasing professionals responding to a new Purchasing reader survey have responsibility for the meetings and events buy at their companies.
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