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Frequently Asked Questions on AIHce’s New Registration Discount Why is there a registration discount for registrants/exhibitors who stay in official AIHce hotels? The success of AIHce depends on attendees and exhibitors using the AIHce contracted hotels to offset the sizable costs of meeting and exhibit hall rental and other costs such as tables, chairs, air conditioning, heating and lighting that we take for granted. AIHce cannot fill the contracted room obligations if attendees and exhibitors book non-AIHce contracted hotels. The risk of incurring hundreds of thousands of dollars in financial penalties (attrition fees) increases with each non-AIHce hotel room that is booked. We hope that by offering a registration discount for staying in the official hotels along with a wide choice of hotels and rates, attendees / exhibitors will choose to stay in one of the official conference hotels. How did you decide to offer the new registration/hotel discount? Substantial research, benchmarking, and investigation occurred. We closely followed the latest information on this subject and used the solutions and recommendations of many professional organizations and their leadership in the convention industry experiencing the same challenges. Elaborate on the reason that AIHce might be charged attrition fees. Attrition fees are not new to the conference scene and hotels have charged them for some time. These fees will be applied if conference groups cannot cover 80% of the contracted number of rooms that hotels typically require groups to guarantee. Good conference sites are in demand and groups like AIHce often make arrangements with hotels six to eight years out to remove rooms from their inventory to guarantee enough space in the block for conference attendees. Attrition fees are compensation to the hotels for the rooms that might have been sold had they not been removed from the market under contract for conference attendees. How does AIHA decide how many hotels and hotel rooms to book? Past attendance and registration figures from recent AIHce conferences are evaluated. Future sleeping room estimates are based upon those used in the past, the popularity of the site if AIHce has visited the city before, and our best projections for an increase or decrease in attendance. It is not an exact science. We build in as much flexibility as possible in our contracts so adjustments can be made as we draw closer to the actual meeting. Once these determinations are made, AIHce books a convenient group of hotels near the convention center and headquarters hotel, securing the best possible rates and terms. Why is attrition suddenly an issue since it never surfaced in prior years? Over the past few years, a substantial change in the business environment for conferences has made filling AIHce hotels (per contract) more difficult than ever. Early in 2001, the U.S. economy weakened, business travel trended downward, and consumers grew increasingly dependent on the Internet for booking hotel rooms. September 11 exacerbated this crisis. Suddenly, it became very difficult for event organizers to meet their contract obligations to hotels for room bookings. Hotel management indicated that their overall poor market performance demanded seeking attrition fees from even their most valued clients. In the past, they were more willing to negotiate or even waive this fee! Has AIHce ever paid attrition fees? Yes. Over the past several years, AIHce has been liable for hundreds and thousands of dollars in attrition penalties. Fortunately, AIHA has paid a substantially reduced penalty. Because of the help of AIHA contractors, we have been successful in negotiating most of these fees away. However, relying on contractors is a thing of the past since they get “hit” from many other groups with the same problem. What is AIHce’s risk for attrition fees? In 2005 and beyond, AIHce has the very real potential of being faced with well over $500,000 annually in hotel attrition penalties. It is impossible for AIHA and ACGIH to sustain this type of financial loss. Why not avoid contractual obligations to hotels? AIHce guarantees thousands of hotel rooms years in advance to ensure the available space for all conference participants along with the required meeting and exhibit space to support the conference. A common practice is for the city to sell the convention center as a “package” with various hotels. Without a contract, the hotel is free to sell the rooms to anyone, leaving AIHce unable to offer conference participants a convenient place to stay at a reasonable rate. If another large conference or event takes place during AIHce, hotel rooms would be scarce or offered at higher rates. Contracting with hotels protects rooms and rates against future price increases. This was very important prior to 2001, when hotel demand exceeded supply and rates rose substantially each year. AIHce negotiates the best possible rates for convenience, quality and size of the required facilities. Why not reduce the contracted room block to avoid attrition penalties? AIHce has revisited all future contracts and has been successful in both reducing the contracted number of rooms and re-negotiating rates. However, without guaranteeing a certain number of hotel room bookings, AIHce will not receive sufficient meeting rooms and exhibit space to support the education, meeting, and exhibit opportunities required for our conference. Will this pricing plan apply at future conferences? Yes, for the foreseeable future unless something happens to change the business environment that makes this pricing plan unnecessary. There is no current evidence to suggest such a change is imminent. Many groups are working to persuade participants to stay in contracted room blocks to protect the conference and association. This is the best way to avoid future potentially onerous actions such as significantly increased conference fees or membership dues. What if I find a less expensive hotel? Hotel rates, like airfares, vary greatly. There are many influencing factors based upon typical economic laws of supply and demand. AIHce negotiated group rates are the lowest rates available for the required number of rooms to house all conference participants. AIHce has taken great care to book a variety of hotels offering competitive rates and amenities to suit everyone’s taste. Still, cheaper hotel rooms will always be available. If you find a less expensive hotel rate, take care to compare it to an AIHce contracted hotel to insure that your expectations are met. Many hotels are located further from the conference site, lack certain amenities that make your stay comfortable, or are not in the best locales. Occasionally, we find that hotels were not in existence when AIHce booked the city for the conference. What are the advantages of AIHce hotels?
Besides cost and convenience, is there any other reason I should select an AIHce contracted hotel? AIHA and ACGIH greatly appreciate your support in controlling AIHce liability. Sustaining a healthy financial future for AIHce means ensuring that both attendees and exhibitors have a quality, meaningful event that reaps benefits for you and the profession for years to come.
For more information on these FAQs, contact Carol Tobin at ctobin@aiha.org or (703) 846-0745 or Peter O'Neil at poneil@aiha.org or (703) 846-0760. Last updated on June 23, 2005 |
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