Sometimes, events get cancelled. It’s just a fact of life. However, the financial losses for event venues can be substantial without the proper precautions. Thankfully, suffering a huge loss when you or a client cancels isn’t inevitable.
TCFLinen is here to help you understand event cancellation costs for venues and how to protect yourself from large losses. With this information, you can make sure a cancellation doesn’t deal a fatal blow to your business.
What Are Potential Event Cancellation Costs For Venues?
You just got the call or email that no venue wants to receive: The one that lets you know a client has cancelled their event with you. Or maybe you just found out that you have to cancel an event that a client has booked. A lot of thoughts probably run through your mind:
- Why did the client cancel (or how will they react when you tell them you have to cancel)?
- Can you find another event to take its place?
- And how much money do you stand to lose if you can’t find an event to replace the one that’s been cancelled?
This final question is a big one because event cancellation costs for venues can be substantial. Not only do you stand to lose what your client paid to secure your event space, but you can also take a hit in several other areas:
- Loss of hours for your employees
- Loss of food and beverage revenue
- Vendor's fees that can’t be cancelled or rescheduled
- Loss of ticket sales and other types of sales
While all of these losses may not apply in your specific situation, at least a few of them will. Without the proper precautions, you could be left dealing with these event cancellation costs for venues on your own.
How Can You Protect Yourself From Event Cancellation Costs?
Up until now, you might think the outlook for an event cancellation is bleak. It doesn’t have to be that way, though. As an event venue, you can take steps to protect yourself and your employees. Let’s take a look at some of the best protections available to venues.
Contract Clauses
As an event venue, it’s essential to have a contract in place for every event you book. In fact, this is one of the best ways to protect yourself from event cancellation costs for venues.
However, a contract is only as good as its wording and clauses. When it comes to event cancellations, two clauses are important: A force majeure clause and a cancellation clause.
The conditions and penalties in a cancellation clause should be clearly outlined in your contract. As an event venue, the cancellation clause in your contract should include the following:
- Notice period: When you or your client needs to inform the other of the cancellation.
- Procedures and communication: How to notify the other of a cancellation.
- Cancellation fees: Any fees that must be paid after cancelling an event.
- Consequences of cancellation: Whether there’s a duty to transfer or replace the event, or pay compensation or damages.
- Dispute resolution: A way to resolve any disagreements about this clause.
Event Cancellation Insurance
In addition to having an event contract, you also need event insurance as a venue. This insurance should cover more than just liability. It should also cover event cancellations.
Note that this type of event cancellation coverage is different from insurance that clients can get to protect themselves.
Negotiation
Finally, you and your client can sometimes come to an agreement with a little negotiation. For example, you and your client may agree that instead of cancelling an event, it can occur on a different date. You may agree to another type of arrangement that’s beneficial for both parties.
When you do this, be sure to get the final agreement in writing so that everyone understands it and has protection. This is key when making any type of agreement as an event venue!
Get the Decor and Support You Need From TCFLinen
In addition to being a great source of information for event venues and planners, TCFLinen is also famous for selling a stunning selection of event decor, including table linens, dinnerware, lighting, tabletop decor, artificial flowers, backdrops, and even furniture. These essentials and extras can take any event to the next level!
As the wholesale arm of Tableclothsfactory, TCFLinen offers industry professionals access to bulk pricing on the same high-quality products loved by individual customers.
TCFLinen also has a Preferred Partner Program that gives members special benefits:
- Expert Guidance and Support: From selecting the perfect event decor to placing large and complex orders, our experienced team is here to help with it all!
- High Quality and Low Prices: Our wholesale pricing allows you to save on stylish event decor because you save more when you buy more.
- Speedy and Secure Shipping: Tight deadlines are no match for our fast and reliable shipping options. We even offer overnight delivery!
Knowing how to protect yourself from event cancellation costs for venues (and having access to our gorgeous event decor) can help you impress your guests and thrive!
