Case Study

Case Analysis
Caren Valenzuela Rubio

Hospitality and Tourism Events Management, MSHTM
Doc. Maria Teresa Bernabe,
December 5, 2020
The Case of the Disastrous Conference
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 has 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 turn-out of walk-ins.
On the eve of the conference, Manila was besieged by a strong typhoon causing major
streets and avenues to be under water. 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 has prepared food good for 400 people.
Questions:
1. Should the organizer be required to pay the full amount of the first day banquet
meals?
Answer:
A signed contract or agreement between the organizer and the hotel
was arranged prior the issuance of the 50% down payment. The Force
Majeure clause should be included in the agreement or contract wherein
fortuitous event or an event of natural or human origin that could not have
been reasonably foreseen or expected and is out of the control of the
persons concerned (as parties to a contract) would decide whether the
organizer is required to pay the full amount of the first day banquet meals.
(Usually, the agreement always stated that banquet meals must be paid in
full amount)
Same incident happened in the resort where I used to work, A day
before the event proper, there was a sign of an inclement weather. We
decided to ask the organizer if they will push through with the event and
they have confirmed their arrivals. The venue, the facilitators and the first
day banquet meals were prepared for them. Unfortunately, because of the
flooded streets, the participants were not able to make it to the venue.
A Force Majeure clause in our agreement stated that in the event of
the fortuitous event, the organizer should pay the full amount of banquet
meals from first day up to the last day of the event. But they would only pay
50% of the rooms and function room rate for the number of days and nights
reserved for them.
2. What concessions can the event organizer request from the hotel?
Answer:
The organizer may request for a discount in room accommodation and in
other facilities included in the package like the function hall where the event
is supposed to be held. Remember that Force Majeure or fortuitous event
is unexpected or is out of control.
3. Can the hotel legally charge the organizers the full amount?
Answer:
I guess it depends on what is stated on the signed agreement or contract
between the hotel and the organizers. The hotel and organizers should
abide with what is written on the agreement when we talked about legalities.
If the agreement stated that organizer should pay in full amount then the
hotel can legally charge the organizer the full amount.
4. What are the obligations of an event organizer?
Answer:
The organizer is obliged to pay all the damages the event may have caused
in the hotel including payment for banquet, rooms, and function room
reserved for them.
5. What are the obligations of a venue host?
Answer:
The venue host must give some considerations for the organizer. They
could give discounts or freebies or whatever they could offer that would lead
to win-win solution for both parties. Another question here is why the
venue prepared food good for 400 persons instead of food good for 500-
700 persons? Unless the contract stated to prepare banquet meals for 400
pax only.
6. What could be a possible consequence if the organizer refuses to pay for

the excess banquet meals and insists only on actual consumption.
Answer:
If the signed agreement stated that Banquet Meals should be paid in full
amount even in fortuitous event then the hotel has the right to sue the event
organizer for refusing to pay for the excess banquet meals.

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Case Study

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Case Analysis

Caren Valenzuela Rubio

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

6. What could be a possible consequence if the organizer refuses to pay for

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