By Charles tan
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To mitigate financial risk and minimize Opportunity Cost, the hotel must implement a transparent and strictly enforced policy:
1. Cancellation Procedure
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Verbal & Written Requirements: While a cancellation can be initiated via phone, it must be followed by a “written confirmation” (email or official letter). This serves as a vital legal record.
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Immediate System Update: The system administrator must change the status from Confirmed to Cancelled immediately. This reopens the venue for the sales team to secure a new booking.
2. Cancellation Charges (Tiered Schedule)
Fees are typically assessed based on the notice period provided (Standard Industry Examples):
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60 Days Notice: Full refund of the deposit (a small processing fee may apply).
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30 Days Notice: 50% of the deposit is forfeited.
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15 Days Notice: 100% of the deposit is forfeited.
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7 Days Notice or No-show: The guest is billed for the full estimated value of the event as per the Banquet Event Order (BEO).
3. Approval Authority
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Sales Manager: To receive the request and verify all contractual terms.
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Financial Controller (FC): To audit the deposit amounts and oversee any potential refunds.
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General Manager (GM): To provide the final authorization (particularly in cases where fees are waived to maintain key accounts or long-term partnerships).
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