Q: Every hotel has standard group, meeting and incentive contracts. Would you say that most of these standard contracts are fair and reasonable? Even if they are generally fair, there must be some exceptions. What are some really one-sided and objectionable clauses that hotels put in their group contacts? What can we do about these clauses?

A: I have compiled what I call "Pestronk's Top 10 Obnoxious Hotel Group Contract Clauses." In David Letterman order, they are:

10. No-Show and Early-Checkout Charges: If the hotel gets an extra payment for a no-show or an early checkout, the hotel is getting a double payment for the unused room, as the group is already contractually committing pay for all rooms in the room block.

9. Individual Reservation Cancellation Charges: If the hotel gets one night's room and tax if a guest cancels within 24 hours before arrival, the hotel would again be getting a double payment, since the group is already responsible for all rooms in the block.

8. Discretionary Walk Policies: If a hotel is "unable" to accommodate a guest due to overbooking or any other reason, the hotel reserves the right to transfer some or even all the guests to a "comparable" property and to pay for one or more nights at the other hotel.

7. Force Majeure With No Refund: If the hotel does not have to perform its duties if prevented by causes beyond its control such as floods, then almost without exception, there is no provision for a refund.

6. One-Way Force Majeure: While the hotel may be excused from performing its duties, the group is not. This means that the group still owes the money if it must cancel due to terrorist incidents, for example.

5. Penalty for Late Rooming List: Every group contract has a "cutoff date"; i.e., the date by which you must submit the rooming list. 

In some cases, the hotel can terminate if the list is late, which makes no sense, since the contract requires you to pay for all rooms in the room block.

4. Right to Increase Rates at Hotel's Discretion: The basic concept of the group contract is that the hotel is fixing the rates in return for the group's promise to pay. Clauses allowing the hotel to increase the rates should be unacceptable, regardless of the reason.

3. Acceptance of the Hotel's Condition "As Is": The group is required to accept the property "as is" with no recourse in case there are dangerous conditions or unfinished details.

2. Waiver of Claims for Injury to Business and People: The group is required to waive all claims against the hotel for any injury to the group's business or personal injury to the group's guests, even if caused by the hotel.

1. Indemnification Against the Hotel's Own Acts or Omissions: In case a guest of the group sues the hotel, the group must indemnify the hotel against any losses.

I have found hotel sales departments to be remarkably willing to roll back or delete some of these clauses, even for groups as small as 10 or 15 rooms, especially when you point out their unfairness.

source : travelweekly