Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: April 7, 2003

What would motivate Mr. Average Attendee to book a room within his group’s block of hotels when he can get a lower rate on the Internet at a hotel outside the block? This is the burning question plaguing meeting planners and hoteliers alike. Attrition costs are burgeoning. An informal Conferon survey of five of the largest hotel chains in the country showed that one out of five associations incurred attrition liabilities in 2002, and that is expected to increase in 2003. An in-depth analysis of the issue can be found in the cover story of Conferon’s latest issue of Meeting Mentor, at www.conferon.com, Solution Center.

Fortunately, efforts are underway by the entire industry to find solutions to the problem. One such initiative is The Convention Industry Council (CIC)’s Project Attrition. Their web site explains:

The six-month project will include a research study and integrated public relations and education campaign. This will include:

• An industry-wide study of attendee behavior to answer questions such as: What are the factors that influence how someone makes a hotel reservation when attending an event? And, do some factors influence that decision more than others?
• Monthly electronic newsletter to deliver timely news and information including "Tips for Successfully Managing Attrition".
• A dedicated section on the CIC web site. The section will include links to related organizations, success stories and strategies to avoid attrition.

For more information, see http://www.conventionindustry.org/news/pr_032003b.htm

Conferon has also actively been working with industry leaders to develop choices and tools that an association can consider to reduce or eliminate the problem. We are searching for best practices for member, attendee and exhibitor communications that encourage attendees to stay at the contracted hotels. As we receive these best practices we will communicate proven best practices to help our collective client base. If you have any suggestions or need additional information, please contact your Account Executive or reply to this email.

Newsletters also provide helpful information and links to other sources relevant to this issue. These newsletters include the Meetings Net Extra Newsletter at MeetingsXtra@newsletters.primediabusiness.com and USAE-MAIL: Latest News of Associations, CVBs and Hotels at usaemail@reply.mb00.net.

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)