Dealing with cancellations in the hotel, restaurant and catering industry
Dealing with cancellations in the hotel, restaurant and catering industry
Note
Due to the dynamic situation, the situation can change quickly! Current info is available for example at the Dehoga Bundesverband or at the Bundesregierung.
Cancellation at the hotel
Since 16.03.2020 a worldwide travel warning of the German Foreign Office is in effect. The travel warning is valid until at least the end of April and can be extended if necessary. Some federal states, such as Schleswig-Holstein, have even imposed an entry ban for tourists. And also in general, overnight stays for tourist purposes are not allowed in the current situation. Therefore, guests who have booked a stay at your hotel can currently cancel it free of charge - hoteliers are not allowed to charge cancellation fees and must refund any deposits already made.
This circumstance naturally represents a considerable burden for the industry. Therefore, offer your guests discounted rebooking conditions or a voucher. In this way, the trip may not be canceled, but merely postponed to a later date. However, your guests do not have to accept this offer. If they insist on a refund and cancellation, you must comply with this request.
Note
Travel for non-tourist purposes is still allowed. If such overnight stays are cancelled, you may be charged cancellation fees from a legal perspective. However, you should carefully consider how you want to deal with this issue. If necessary, you can also offer your guests a voucher for a later stay and thus accommodate them.
Cancellation of travel prior to the travel warning
For stays that were supposed to take place before the travel restrictions and were cancelled by your guests due to the Corona crisis, you can charge appropriate cancellation fees. However, again, prefer to offer your guests rebooking offers or vouchers. If you accommodate your guests in this difficult situation, they will certainly be happy to visit your hotel again after the crisis.
Cancellation of overnight stays in a few months
Many guests are concerned about booked hotel stays that are scheduled to take place later in the year. Here, as long as they fall outside the travel warning period, guests are not entitled to a cancellation free of charge. Hotels can therefore charge appropriate fees here. Here, too, however, it can pay off to be accommodating to guests and reschedule the booking for a later date or convert the amount of the trip into a voucher.
Note
Under certain conditions, guests who cancel a trip that is scheduled to take place later and pay the fees can claim them back later! If the travel warning of the Foreign Office is extended until the time when the trip should take place, you must refund the cancellation fee to your guests. The information from the DEHOGA Federal Association on the subject of cancellation can be found here.
Cancellation of catering orders
Due to the imposed contact and event bans, many trade shows and events are cancelled. Private celebrations such as weddings, birthdays and funeral services are also affected by this regulation and are currently not allowed to take place. As a result, catering orders and reservations are being cancelled. The following applies here: If the event was planned for the prohibition period, your guests can usually cancel the booking free of charge. As a caterer, you are not able to fulfill the order according to the booking due to the legal requirements in this situation. Check your contracts for expenses already incurred: You can still charge for menu planning or rehearsal dinners. If you have not yet signed a contract with your clients, you are not entitled to charge for work already performed. Here you are dependent on the goodwill of your clients.
However, many celebrations are not completely canceled, but only postponed. Therefore, look for suitable alternative dates with your guests. Since many locations and catering companies are already well booked next year, you can also offer dates during the week or in winter if necessary. The advantage here: The chance that other already booked service providers such as photographers, bands or DJs are still free on such dates is great. Thus, the celebration can often be easily rescheduled to a later date without your guests having to completely reschedule their party.
Cancellation of events before the ban came into force
Even before bans were imposed, many larger events were cancelled for fear of contagion from guests. You are allowed to charge cancellation fees for such orders in accordance with your contractual agreement. However, weigh carefully whether you should actually charge the fee or prefer to work with your guests to find an alternative date.
Cancellation of events that take place at a later date
The following also applies to events that are to take place later in the year: If the cancellation takes place at the request of your guests, you may charge cancellation fees. Talk to your guests and find out if they want to cancel the party altogether or just postpone it. If the latter is the case, you can be accommodating here as well to keep the guests warm for the following orders.
Where can I find more information about cancellations?
Currently, no one can estimate how long the current situation will last. In addition, the requirements may differ depending on the region or federal state. You can find more information on the topic of cancellations at your DEHOGA regional association.
Legal noticeDespite careful examination of the contents, we assume no liability for the accuracy, completeness and timeliness of the information. It is intended to serve as an initial guide for businesses in the catering and hotel industry. However, the information does not constitute legal advice and is in no way a substitute for legal advice from a lawyer in individual cases. An overview of legal questions can be found on the website of ETL Rechtsanwälte, which is specifically geared towards the hospitality industry.
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