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Editor: D. A. Jeremy Telman
Valparaiso Univ. Law School

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Wednesday, May 14, 2014

The Costs of Cancellation

Conference hotel
Conference Hotel (not subject to boycott)

Yesterday's New York Times features a story about the costs associated with hotel boycotts when an organization has booked a hotel to host a conference or meeting long in advance.  This issue ought to be a familiar to anyone who attended the 2011 annual AALS meeting in San Francisco, for which the conference hotel was a Hilton whose workers were on strike.

The article details the costs involved in cancellations.  Often the organization is contractually obligated to pay hundreds of thousands of dollars to the hotel even if the conference ulimately takes place at a different venue.  According to the Times, if the cancellation is on short notice, the organization is typically obligated to pay 90% of expected room costs and 90% of expected banqueting services.  And then there are, of course, the costs of finding an alternative venue in proxity to the original choice on relatively short notice.   Major conferences can be booked years in advance.  

Sometimes it is possible to mitigate the harm -- by booking at a related hotel or by promising to return to the original hotel if the policy that causes offenese is revoked.  The former is unlikely in cases where the problem is with the entity that owns the hotel.  But it is more likely in cases like those that arose in connection with anti-immigrant legislation passed in Arizona.  Organizations could punish the state by moving to related hotels in states that did not have similar legislation.

 

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Conferences, In the News, Travel, True Contracts | Permalink

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