Sage Journals: Discover world-class research

Abstract

Attrition clauses in hotel group sales agreements are potentially contentious issues for hotel operators and meeting planners. However, an analysis of the classic case of Hyatt Corporation v. Women’s International Bowling Congress, Inc. shows the pitfalls of a poorly drawn agreement. Based on that analysis, the most effective attrition clauses would, among other things, balance the competing needs of the hotel and its clients. Such an agreement would specify the cutoff times for cancellation of the room block and permit slippage of the block. It would also provide for liquidated damages for the loss of business to the hotel for rooms not picked up. While the agreement would allow the hotel to sell rooms not picked up, it would at the same time reduce the attrition charges by whatever profit the hotel realizes from those sales. Likewise, if the hotel shortcuts the block, damages would be reduced. Finally, the contract should address compensation to the group if the hotel must walk group members due to overbooking.

Keywords

meeting and convention sales Hyatt v. WIBC hotel attrition clauses room blocks

Get full access to this article

View all access options for this article.

References

Breiter, Deborah , Cynthia Vannucci , Sheryl Kline , and Susan Gregory. 2004. The attrition condition: What hotel sales people need to know. Cornell Hotel and Restaurant Administration Quarterly 45 (2): 158-69.

Bureau of Economic Analysis. 2003. Travel and tourism satellite accounts. Washington, DC: U.S. Department of Commerce.

Cassedy, K. 1998. Negotiating rates in a hotel seller’s market . Association Management 50:61-63, 68.

DeKay, Frederick , Barbara Yates , and Rex S. Toh. 2004. Non-performance penalties in the hotel industry. International Journal of Hospitality Management 23:273-86.

Edelstein, L.G. , and C. Benini. 2001. The most contentious clause. Meetings and Conventions 46:48-52.

Hyatt Corp. D/B/A Hyatt Regency Buffalo v. Women’s International Bowling Congress, Inc 80 F. Supp. 2d 88 (W.D.N.Y. 1999).

McConnell, J.P. 1983. Room-block reservations: When an agreement is a contract . Cornell Hotel and Restaurant Administration Quarterly 24 (2): 76-81.

Roysner, Mark. 2000. Hotel contracts: A road map to successful hotel negotiations . Calabasas, CA: Roysner and Associates .

Square 345 Limited Partnership v. District of Columbia, 927 A.2d 1020 (D.C. App. 2007).

10.

Toh, Rex S. 2008. Guests’ meetings and hotel group room reservations . In Tourism management: Analysis, behavior, and strategy , ed. Arch Woodside and Drew Martin , 302-17. Cambridge MA: CABI Publishing.

11.

Toh, Rex S. , and Frederick DeKay . 2002. Hotel room inventory management: An overbooking model. Cornell Hotel and Restaurant Quarterly 43 (4): 79-90.

12.

Toh, Rex S. , Frederick DeKay , and Gail Lasprogata . 2005. Attrition clauses: Outstanding issues and recommendations for meeting planners. International Journal of Hospitality Management 24:107-19.

13.

Toh, Rex S. , Frederick DeKay , and Barbara Yates. 2005. Independent meeting planners: Roles, compensation, and potential conflicts. Cornell Hotel and Restaurant Administration Quarterly 46 (4): 431-43.

14.

Toh, Rex S. , Dean Peterson , and Terry Foster. 2007. Contrasting approaches of corporate and association meeting planners: How the hospitality industry should approach them differently. International Journal of Tourism Research 9:43-50.

15.

Weatherford, L.R. , and S.E. Bodily. 1992. A taxonomy and research overview of perishable asset revenue management: Yield management, overbooking, and pricing . Operations Research 40 September-October, pp.831-44.

Hyatt Corporation v. Women’s International Bowling Congress,Inc

Abstract

Keywords

Get full access to this article

References