How To Structure Cancellation Fees At a Conference

When it comes to the cancellation fees that attendees must pay when they can no longer attend your event, there is no such thing as a one-size-fits-all cancellation policy. Companies must strike a tricky balance: On one hand, there are advantages to a more punitive policy. No one wants to lose money and resources due to cancellations, and the more a customer has to lose over a cancellation, the less likely they are to cancel. On the other hand, a policy that is too strict may damage essential relationships, especially if the company is unwilling to accommodate extenuating circumstances. 

Ultimately, the cancellation policy should protect both your company and your client relationships. Here are some tips for creating the ideal policy: 

1. Communicate clearly

No matter what kind of cancellation policy you create, clarity and communication are key. It’s important to state your cancellation terms on your event website and during the registration process. Then, restate your terms in the confirmation email sent to registered attendees. Being clear and forthcoming helps to protect your relationships and ensure that registrants and exhibitors are not surprised if they must cancel and do not necessarily receive a full refund. 

Clear communication can also help prevent some cancellations by reminding attendees of what is at stake. Sending email reminders that describe the upcoming event and also reiterate the cancellation policy in the months and weeks leading up to your event may reduce the rate of cancellations at the last minute. 

2. Set boundaries and customize when needed

When writing your cancellation policy, ask yourself these crucial questions:

What kind of refund can you provide, and when?

Many cancellation policies have changed since 2020. Due to the COVID-19 pandemic, more teams became more willing to provide a full refund to attendees who could not make it to their event in person. Others may offer a partial refund with different time frames set to define the refund amount. For example, they may offer up to 75% back for those who cancel more than a month before the event. To maintain smooth relationships and lessen the effects of a no-refund policy, consider offering to apply the attendee’s registration fees to future events. 

Do you need to create different policies for fees for registrants, sponsors, and exhibitors?

While attendees’ registration fees add up, the financial loss of one attendee cancellation is far lower than that of a sponsor or exhibitor. When drafting up your cancellation policy, be sure to delineate the amount each group would be refunded. If a sponsor or exhibitor cannot make it to your event, consider discounting them the amount of a virtual package instead for financial reasons and to preserve the relationship. In general, keep relationships in mind when deciding between different policies. 

How far before the event do attendees need to inform you of their cancellations?

Can registrants to contact you 24 days before to cancel? 72 hours? A week? Think about your contracts and commitments with the venue and vendors, and base your cancellation policy on your own deadlines.

3. Collect and use available data

Finally, to create the best policy and prevent future cancellations, it’s important to understand why people cancel. Always track cancellations and their reasons, and see if there are trends. Are registrants canceling last-minute, or months in advance? If your registrants and exhibitors cancel primarily because of unanticipated circumstances, then a more punitive policy will likely backfire. On the other hand, if you’re getting cancellations because your registrants were unable to accommodate the date in their schedule, you may need to re-evaluate your event communication strategy. Cancellation reasons can provide a range of valuable feedback that can serve to continually improve your events.