You own the Motivate You Event Company and booked a 300-person sold out event in UNLV Student Union Theatre for October 16. Less than 48 hours before your event, you learned of a letter sent out by the UNLV President to University students and staff regarding a threat made to campus. Although the FBI/Police have stated that an investigation found no credibility to the threat, you have attendees e-mailing scared to attend. On the other hand, you also have attendees e-mailing to state that they have flown in for the event and expect it to go on as scheduled or they will sue for a refund of their travel expenses.
What would you have done? Would you have hosted the event or canceled? As you make this tough decision, please consider the following:
Attendees paid $75 per person for the event. Once expenses are paid, you are expecting to earn $8,500 in profits (before taxes).
The Student Union is willing to rebook your event for another date with a 25% rebooking charge ($1,000)
The motivational speaker you hired does not have an issue speaking and is expecting to be paid her $10,000 speaker fees regardless of whether the event is held or not. She is willing to schedule a second speaking engagement for a later date (her soonest availability is June) with a 50% deduction of her fees for that visit.
You are a small budget operation with no insurance to cover event cancellations.
You advertise a 100% service guarantee for all of your events.
Assignment – Two paragraphs needed for optimum credit consideration.
Paragraph One
Would you hold the event as planned or cancel? Provide rationale for your decision.
Paragraph Two (select one of two options based on your answer to paragraph one).
If your decision is to hold the event as planned
What provisions would you put in place to ensure guest safety (for those who choose to attend)?
What provisions would you put in place to ensure guest satisfaction for those who choose not to attend)?
If your decision is to cancel the event
What provisions would you put in place to ensure guest satisfaction?
What provisions would you put in place not to take a substantial loss on this event?
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