Clear Understanding of the Commission Policy

The hotel policy regarding payment of commission and terms of such payment must be clearly indicated and agreed upon by the travel agent before or at the time of the confirmation.

Information regarding commission policy should normally include:

- whether a commission will be paid and on which services;

- the rate(s) of commission;

- whether commissions are payable on any extension of stay agreed by the hotel and/or on reservations effected by the client during his stay, for a further period where the payment is guaranteed by the travel agent.

Definitions of Groups and Individuals

a. The group

A group is a minimum of fifteen (15) persons arriving and departing together, considered by the travel agent and the hotelier as one entity. Allotments, congresses, conferences, seminars, incentive tours, exhibitions, etc. may require specific written agreement. The group confirmation from the hotelier shall specify identical services for each member of the group. The total charge shall be presented in one invoice. If, after the confirmation, the group is reduced to less than fifteen (15) persons, the hotelier must notify the travel agent whether he/she still considers this party as a group.

b. Individual

An individual client is the person who cannot benefit from group conditions.

Questions

1. What currency shall the hotelier abide by the agreed contractual rates in?

2. What does the hotelier usually request before rendering the services?

3. What may the hotelier require as a condition of his/her acceptance of the order?

4. In what case will the reservation fee not be reimbursed?

5. When must the hotelier acknowledge receipt of the advance payment?

6. What document are the services payable by the travel agent specified in?

7. In what case is the travel agent not responsible for payment of the specified services?

8. What credit cards will the hotelier accept for direct payments?

9. When should the hotel policy regarding payment of commission and terms of such payments be indicated?

10. What does the information regarding commission policy normally include?

11. What entity is considered as a group?

12. In what case should the hotelier notify the travel agent whether he/she still considers the party as a group?

13. Who is considered to be an individual client?

Cancellations – General Terms

The terms and time-limits governing total or partial cancellation of the hotel contract, together with the amount of any possible compensation due in case of late cancellation, shall be agreed upon at the time of confirmation. The hotelier shall clearly define his/her cancellation policy for the concerned period. The client shall be informed of this cancellation policy. Cancellations shall be signified in writing and dated.

Cancellation of Groups

a. Cancellation time-limits:

In the absence of agreement to the contrary, the travel agent may cancel a group reservation without having to pay compensation, according to the following rules:

· The entire group (100%) may be cancelled validly up to thirty (30) days prior to the arrival date.

· A maximum of 50% of the initial reservation may be cancelled at least twenty-one (21) days prior to the arrival date.

· A maximum of 25% of the initial reservation may be cancelled at least fourteen (14) days prior to the date of arrival.

B. Cancellation fees

1) Cancellations made outside the above-mentioned time-limits shall entitle the hotelier to the following compensation:

· a fee fixed in advance;

· in the absence of such an agreement: two/thirds (2/3) of the price of the reserved services (minimum one night per cancelled client);

· in case of cancellation within the three (3) days preceding the arrival date three quarters (3/4) of the price of the reserved services;

2) If the hotelier covers the loss by sub - letting the room(s), he/she will not be entitled to such compensation. The hotelier may be required to prove that he/she did not sub-let the room(s).

Cancellations for Individuals

A. Cancellation time-limits

In the absence of contractual conditions to the contrary, the minimum periods of notice that shall be observed by the travel agent to notify a cancellation to the hotelier, are as follows:

· fourteen (14) days before the date of arrival, in low season;

· thirty (30) days before the date of arrival, in high season.

B. Cancellation fees

In the absence of contractual conditions to the contrary, cancellations notified after the above-mentioned time-limits shall entitle the hotelier to the following compensations:

· For any stay of one or two nights, in low or high season: the equivalent of services ordered for a one-night stay.

· For any stay of three nights or over, in low season: the equivalent of services ordered for a one-night stay.

· For any stay of three nights or over, in high season: the equivalent of services ordered for a three-night stay.

Questions

1. What cancellation provisions should be agreed upon at the time of confirmation?

2. In what case may the travel agent cancel a group reservation without having to pay compensation?

3. What compensation is the hotelier entitled to for cancellations made beyond the time-limits?

4. In what case is the hotelier not entitled to such compensation?