Omni Debuts Standard Meetings Contract, Hyatt Revises

A pair of hotel companies recently changed the tools with which they negotiate meetings, including the introduction of a standard meetings contract by Omni Hotels and the revision of Hyatt Hotels Corp.'s standard meetings contract, which contains a sharp reversal of Hyatt's policies on dispute resolution.

Hyatt's new standard contract, introduced last month after a four-month salesperson training effort, stipulates the use of independent arbitration to resolve disputes between buyer and hotel, a real change from the previous contract.

"We think arbitration is a great way to settle a dispute," said Hyatt vice president of sales Ty Helms. "We live in a sue-happy world."

The new contract was designed to simplify and shorten the negotiating process, he added. "The basic clauses stayed in, a lot of clauses that cover each and every little thing that could happen went out," Helms said. "It covers the nuts and bolts—dates, rates and space. There are not a lot of other changes other than deletions. We get to the point where everyone gets too picky with minutiae that is not necessarily relevant. Some of it was almost vague minutiae. It doesn't relate well and it's not friendly."

The new contract will be used in all chain properties in the United States, Canada and the Caribbean, Helms said, and all property-level salespeople were trained before it was introduced.

Omni's new contract, also implemented last month, will be used by all 40 of its North American properties, said senior vice president of sales and marketing Tom Chevins. The contract allows meeting planners to receive rebooking credit at any Omni property in the event of a cancellation, and ensures that any cancellation or attrition damages paid to properties are calculated based on lost profit margins, rather than lost revenue. "Our view is that attrition fees are an insurance policy," Chevins said. "If business is harmed, they should pay. If we can resell, then it's no harm, no foul. We want to recover the opportunity to resell. A contract with a customer does not absolve us of the need to sell rooms."

The impetus for the contract development was the chain's customer advisory board, Chevins said, which noted difficulty closing contracts and expressed a desire for explicit cancellation and attrition remedies. "I think we came up with something fair and equitable," he said.

Omni also has instituted procedures to approve credit nationally, allowing planners to avoid repeating credit application processes at each Omni property.