The UK’s largest serviced office operator Regus Plc has commissioned market research company BDRC Group to explore the cost of meeting cancellations to UK businesses. Findings revealed that companies are wasting more than 119m a year on cancellations when booking meetings through Hotels.
The main cause for the wastage was blamed on cancellation charges which were found to be significant. Hotel companies are, on average, charging a massive 82% for cancellations up to 15 days before the event and 59% for up to 30 days before. Looking at a variety of small meeting venues of between 10 up to 20 delegates, the study showed that Hotels offer companies a very rigid structure when booking venues with very little room for flexibility.
Regus CEO Mark Dixon commented: “At a time when businesses are struggling to survive, such blatant profiteering is remarkable. One well-known national provider charges 90% of the booking fee for a cancellation with 60 days notice! The average cost of cancellation up to 30 days is 59% and 43% for 60 days notice.“
BDRC uncovered that the average cancellation cost for meeting room hire is now costing UK businesses an average of ~26.40 per staff member; a superfluous cost afforded by few at any time but particularly when facing such a tough economy.
Dixon continued: “Thirty years ago this might have been acceptable practise but in today’s market there is simply no justification. Recessions bring such archaic, unethical and inefficient business practices to the surface and force their resolution. A great product or service at a good price with fair terms and conditions should be the bedrock upon which all businesses are built.“
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