CONTRACTS CORNER: Reducing Attrition Fees through Concessions

Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: October 5, 2004

Very few attendees (about one-fifth) are aware that their groups could suffer attrition fees if they choose not to stay at the hotels in the group block, according to a poll taken by the Convention Industry Council for Phase II of Project Attrition. Further, only a similar few, once enlightened, said they would help their groups by booking within the block. A third would do so if inducements were given, which supports the survey's finding that cost is the main drawback for attendees when making that important decision.*

Survey respondents revealed that money-saving concessions were high on the list of inducements that would encourage them to use the group hotels. We have drawn upon the experience of two of our Conferon Account Executives, Deirdre Bourke, CMP, and Mariana Gallo, CMP, to gather their most useful concessions, many of which can be written into the hotel contract:

  1. Discount off of registration fee. (We recommend at least $100. It is actually a higher fee for those outside the block, but incentives work better than penalties.)
  2. Attendees earn points for Association services or products.
  3. Exhibitors earn points toward more advertising/sponsorship exposures.
  4. Drawings for amenities, special bed, upgrade to a suite at the host hotel, roundtrip airport transfer, cruise.
  5. Double or triple hotel points if staying within the block.
  6. Complimentary web site development to help promote destination, hotel and meeting.
  7. Complimentary e-mail marketing blast to attendees, or to attendees who have registered and not booked housing, or who have done neither.
  8. Hotels honor integrity of the housing service by not relocating the reservations within the block if hotel is oversold.
  9. Complimentary drinks, coffee, restaurant coupons, use of health club, parking, Internet and phone access.
  10. Early bird room rate: discounted room rate until a certain date or a certain number of rooms are sold, whichever comes first.
  11. Discounted coupons or free coupons (for coffee/dessert) to area restaurants, attractions, entertainment.
  12. Complimentary keys with group logo to be used on shuttles.
  13. Hosted reception for those staying inside block (need coded key).
  14. Waive surcharges such as resort fees, early departure fees, telephone/Internet access, fitness center, faxing fees, room service delivery fee.
  15. Express services (i.e. check in and out).
  • Concessions such as these are win-win money savers for all parties: individual attendees, the group, and the hotels too since more rooms will be booked.

    *For the most complete version of the survey results, go to http://www.conventionindustry.org/projects/Project_Attrition_PhaseII.pdf.

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