When the organization defaults, the attendees pay?
This is a new one on me: When an organization failed to pay its meeting tab on time, the facility started to charge the attendees. From an article in the ReviewJournal.com:
- The Coaching Center of Austin, Texas, was delinquent to the Westin Casuarina on payment of nearly $57,000 in unpaid food, beverage and associated costs. Dible, and other conference attendees and speakers recently began receiving charges on their credit card statements for a “pro-rated amount per attendee” from the hotel.
“We told (the Coaching Center) we would have no recourse but to charge the attendees,” said Hud Englehart, spokesman for the Westin’s owner, Crestview Hills, Ky.-based Columbia Sussex. “That still didn’t cause them to bring payment forth so we began charging the attendees.”
What?? I’ve never heard of this one before.
Related Topics: Business stuff, Hospitality news
April 8th, 2008 at 12:29 pm
Two wrongs don’t make a right.
Based on the facts reported, and assuming there is no legitimate dispute, the original problem is that The Coaching Center didn’t pay its catering bill. The slogan on their website is “Inspire Greatness.” Stiffing suppliers isn’t my definition of greatness.
But the Westin Casuarina’s action makes a bad situation worse. Would it be logical to receive a bill from Exxon because I flew on an airline that is delinquent on its fuel bill? Of course not. Likewise, the attendees paid the event organizer for attendance at the sessions and meal functions.
I assume all 85 attendees will report the charges as fraud to their credit card issuers as Mr. Dible has done. The hotel would not be in business long if its merchant accounts were shut down due to 85 fraudulent transactions.
The fact that this story is reported in event planning media and the associated press is a P.R. disaster for the property and the Westin brand. In a competitive market and slow economy, this will not help to attract business.
I realize this hotel is independently owned, but it is flying a Westin flag. So what does Starwood have to say about this? I would think they would care about preserving the reputation of their brand.
I would like to see a follow up story with comment from executives at Visa, Mastercard, American Express, Starwood, and the Nevada Attorney General.
April 8th, 2008 at 12:36 pm
Thank you for your thoughtful comments. I know our group plans to follow up on this story, and I’m sure my colleagues at other meetings industry publications will be, too.
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