By Stephen C. Barth
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Extra info for Hospitality Law: Managing Legal Issues in the Hospitality Industry
Hospitality managers should train their reservation agents to explain that guests will be given a confirmed reservation only if they agree, in advance, to guarantee that reservation. Three major points should be clearly explained to the guest before agreeing to the guaranteed reservation contract: 1. The hotel or restaurant will honor the reservation and will never knowingly offer to rent space for which it already has valid, guaranteed reservations. 2. The cancellation policy of the hospitality facility will be explained at the time of the confirmed reservation so it is clearly understood by the guest.
The Uniform Commercial Code (UCC) was developed to simplify, modernize, and ensure consistency in the laws regulating the buying and selling of personal property (as opposed to land), any loans granted to expedite those sales, and the interests of sellers and lenders. The rules of the UCC, first developed in 1952, were designed to add fairness to the process of transferring property, to promote honesty in business transactions, and to balance the philosophy of caveat emptor by giving buyers, sellers, and lenders a measure of protection under the law.
3. Put all policies related to making guaranteed reservations and the billing of no-shows in writing. Follow these written policies. 3, which MasterCard distributes to hospitality operators. 3 MasterCard guaranteed reservations best practices. 3 ESSENTIAL HOSPITALITY CONTRACT CLAUSES Since contracts can cover a variety of offer and acceptance situations, their form and structure will vary considerably. That said, all hospitality contracts should contain certain essential clauses, or stipulations, that a manager should identify and review carefully before entering into the contract relationship.
Hospitality Law: Managing Legal Issues in the Hospitality Industry by Stephen C. Barth