Why is there a discount for registrants and exhibitors who stay in official AIHce hotels?

The success of AIHce depends on registrants and exhibitors using contracted AIHce hotels to offset the sizable costs of producing the meeting and expo. AIHce cannot meet contracted room obligations if registrants and exhibitors reserve rooms in non-AIHce hotels. The risk of incurring hundreds of thousands of dollars in financial penalties (attrition fees) increases with each registrant who stays outside an AIHce hotel. We hope that by offering a registration discount and a variety of hotels and rates, participants will choose to stay in an AIHce hotel.

How did you decide to offer a registration discount?

Substantial research, benchmarking, and investigation were conducted. 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. We first offered the new registration discount at AIHce 2005 in Anaheim and found that the policy worked; we achieved our goal of meeting AIHce contractual obligations with all official hotels.

Elaborate on the reason that AIHce might be charged attrition fees.

Attrition fees are not new to conferences and hotels have charged them for many years. Attrition fees are applied when a conference group cannot fill 80% of the contracted number of rooms. Good conference sites are in demand and groups like AIHce contract with hotels six to eight years in advance to remove rooms from inventory to insure enough hotel rooms for conference-goers. Attrition fees are compensation to the hotel for the rooms that might have been sold had they not been removed from inventory by AIHce.

How does AIHce decide how many hotels and hotel rooms to book?

Future sleeping room estimates are based upon past registration figures, expected popularity of the site, and our best projections for attendance. Once these determinations are made, AIHce books the headquarter and secondary hotels near the convention center, securing the best possible dates and rates. This is not an exact science. We build in as much contractual flexibility as possible so adjustments can be made as the conference draws closer.

Why is attrition an issue since it never surfaced in prior years?

Recent, substantial changes in the convention industry business environment have made filling hotels more difficult. Due to various economic factors and the law of supply and demand, it has become difficult for event organizers to meet contract obligations. When a group performs below contract, hotel management seeks attrition fees from even their most valued clients to mitigate losses.

Has AIHce ever paid attrition fees?

The past several years, AIHce has been liable for thousands of dollars in attrition penalties. Fortunately, with careful monitoring and the help of contractors, we have been successful in reducing these fees. However, there is no guarantee that AIHce will always be able to negotiate a settlement rather than pay the fees in full. In 2008 and beyond, AIHce has the very real potential of facing over $500,000 annually in hotel attrition penalties. It is impossible to sustain this type of financial loss.

Why not avoid contracting with hotels?

Contracting with hotels protects the AIHce room supply and future rate increases. AIHce guarantees thousands of hotel rooms in advance to insure meeting room and sleeping room availability for all conference participants. Without contracts, the hotels are free to sell rooms to anyone, potentially leaving AIHce short on rooms and meeting space. If another large conference were to take place during AIHce, hotel rooms would be scarce or offered at much higher rates.

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 that a certain number of hotel rooms will be filled, AIHce will not receive sufficient meeting rooms and exhibit space to support the conference.

Will this pricing plan apply at future conferences?

Yes, for the foreseeable future. Many groups are working to persuade participants to stay in contracted hotels to protect the association. This course of action is preferable to the alternatives of increasing conference fees or membership dues.

What if I find a less expensive hotel?

Hotel rates, like airfares, vary greatly. AIHce negotiated group rates are the lowest rates available, given the number of rooms required to accommodate all conference participants. AIHce has taken great care to book a variety of hotels offering competitive rates and amenities. Still, less expensive 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, or are not in the best locales.

What are the advantages of AIHce hotels?

• A timesaving, one-stop process allows you to register for the conference and reserve a room at an AIHce hotel.
• Prepayment of the entire stay is not required when using the AIHce hotel reservation bureau, unlike third party travel and hotel websites.
• No penalties apply if reservations are cancelled in a timely manner. The AIHce hotel reservation bureau offers flexibility in making changes when plans change.
• You are guaranteed a room. Hotels, like the airlines “overbook” to compensate for a percentage of cancellations. Occasionally, people with reservations might be “walked” to another hotel, but AIHce has contracted with host hotels to insure that you will have a room.
• Rely on the AIHce “seal of approval.” All AIHce hotels have been inspected by AIHce staff for quality and safety.
• Networking is easier and enjoyable because AIHce hotels host a large number of AIHce participants.
• AIHce offers complimentary door-to-door shuttle service to those registrants reserving accommodations in official hotels.

Besides cost and convenience, is there any other reason I should select an AIHce hotel?

AIHA and ACGIH greatly appreciate your support. Sustaining a healthy financial future for AIHce means ensuring that both conference registrants and exhibitors have a quality, meaningful event that will reap benefits for you and the profession for years to come.