M3:01 Solving Problems and Making Decisions
Unit 301 – Solving Problems and Making Decisions
In the following pages I will discuss the nature, scope and impact of problems that can arise within the industry, what can be done to resolve the issues, and how we can evaluate the final outcome.
A common problem that is faced within my industry, and the problem which I have chosen to concentrate on in this document, comes in the form of clients cancelling events after signing a formal agreement or contract with a venue.
There are numerous reasons that cancellation of an event may be necessary. These include: Changes in the clients financial situation; issues that have arisen between the client and the venue or the venue’s affiliates; a decrease in the number of attendees meaning that it is no longer feasible to run the event; an increase in the number of attendees meaning that the venue is no longer suitable; a venue may encounter an issue which means that they are no longer capable of holding the event (therefore the event is cancelled by the venue). These are just a small number out of a myriad of reasons that I have encountered in the past. I will be concentrating on cancellations made by the client in this discussion.
Agreements or contract include clauses which state the penalties involved in cancellations. These terms are there to protect both the client and the venue. By signing these contracts, the client are agreeing to honour the terms described. Many venues will show flexibility with these terms as a gesture of good will, however this is not always the case and is completely at the discretion of the venue.
Dependant on the amount of notice of cancellation provided by the client, cancellation charges that are incurred can vary greatly. The notice periods required can also vary greatly from venue to venue. For example, the following has been taken from the terms and conditions provided by a chain of UK hotels:
Date of cancellation
Cancellation payable as a percentage of Revenue for all
In the following pages I will discuss the nature, scope and impact of problems that can arise within the industry, what can be done to resolve the issues, and how we can evaluate the final outcome.
A common problem that is faced within my industry, and the problem which I have chosen to concentrate on in this document, comes in the form of clients cancelling events after signing a formal agreement or contract with a venue.
There are numerous reasons that cancellation of an event may be necessary. These include: Changes in the clients financial situation; issues that have arisen between the client and the venue or the venue’s affiliates; a decrease in the number of attendees meaning that it is no longer feasible to run the event; an increase in the number of attendees meaning that the venue is no longer suitable; a venue may encounter an issue which means that they are no longer capable of holding the event (therefore the event is cancelled by the venue). These are just a small number out of a myriad of reasons that I have encountered in the past. I will be concentrating on cancellations made by the client in this discussion.
Agreements or contract include clauses which state the penalties involved in cancellations. These terms are there to protect both the client and the venue. By signing these contracts, the client are agreeing to honour the terms described. Many venues will show flexibility with these terms as a gesture of good will, however this is not always the case and is completely at the discretion of the venue.
Dependant on the amount of notice of cancellation provided by the client, cancellation charges that are incurred can vary greatly. The notice periods required can also vary greatly from venue to venue. For example, the following has been taken from the terms and conditions provided by a chain of UK hotels:
Date of cancellation
Cancellation payable as a percentage of Revenue for all