Case Study: The Case of the Disastrous Conference (25 points)

In 2000, a major Philippine university hosted a three-day international conference on

environment and urban renewal with the Manila Hotel as official venue. It was hoping to attract 500 to
700 participants. The university paid the 50% required down payment for the banquet meals. The hotel
earmarked 6 complimentary guestrooms for the conference organizers. A total of 50+ foreign delegates
and 350+ Filipino delegates were pre-registered. The organizers were also hoping for a good turnout of
walk-ins. On the eve of the conference, Manila was besieged by a strong typhoon causing major streets
and avenues to be flooded. At exactly 8:00 am, on the first day of the conference, invitations committee
chair Isay Bradley started to call many speakers and registered local participants confirming their
attendance on the first day despite the inclement weather. Half of the foreign participants were already
checked-in at the Manila Hotel. Less than 50 local and foreign participants showed up on the first day.
The hotel had prepared food good for 400 people.

Questions to Answer:

1. Should the organizer be required to pay the full amount of the first day banquet meals? Why,
why not?
 It depends on what they desire since it has been stated that the university has paid the
required down payment of 50% meaning they have the choice to either pay in full or in
half.
2. What concessions can the event organizer request from the hotel?
 Allowable attrition since and effective attrition clause is an assurance policy against a
last-minute downturn in your attendees showing up at the event or meeting.
3. Can the hotel legally charge the organizers the full amount?
 Yes, they may.
4. What are the obligations of an event organizer?

 Ensure you secure appropriate approval/permits from the venue, prior to selling
tickets.
 Clearly list the contact details of the organiser, so that consumers can communicate
directly if needed.
 Regularly meet with all of those assisting with the planning and organisation of the
event, to make sure it is all going sufficiently and successfully
 Provide a thorough brief to food and drink vendors to ensure numbers will be catered
for adequately, at appropriate times.
 Ensure the quality and quantity of facilities on site, particularly with regards to the
number of attendees.
 Ensure that any promised merchandising stock will arrive in a timely manner and in
adequate quantities to supply all consumers.
 Ensure there are adequate staffing levels to manage crowds on the day.
 Develop a plan of action for extreme weather events.
 Consider the conditions under which you would provide a refund and ensure your
ticketing agent is part of that process, in case of significant problems prior to or
during the event.
 Thoroughly brief all event staff working during the event to ensure they are all aligned
regarding event management procedures and contingency planning
  Ensure event staff can communicate effectively with each other as well as event
managers and local authorities during the event.
5. What are the obligations of a venue host?

 Welcome guests to the venue

 Provide accurate wait times and monitor waiting lists
 Manage reservations
 Escort customers to assigned dining or bar areas
 Provide menus and announce Waiter/Waitress’s name
 Greet customers upon their departure
 Coordinate with wait staff about available seating options
 Maintain a clean reception area
 Cater to guests who require extra attention (e.g. children, elderly)
 Answer incoming calls and address customers’ queries
 Assist wait staff as needed
6. What could be a possible consequence if the organizer refuses to pay for the excess banquet
meals and insists only on actual consumption?

 The agreed prices have to be understood including taxes and local dues, valid at the point
of time of the contract´s conclusion. In case legal turnover tax changes or local dues with
regard to the object of performance will be newly introduced, will be altered or abolished,
after the contract was concluded, the prices will accordingly be adapted. For contracts
concluded with consumers this is only valid, if the period between conclusion and
fulfilment of the contract exceeds 4 months.