Line | The expenses related to sponsoring a |
(2) | conference can be immense. An organization |
(3) | sponsoring a conference can recoup these |
(4) | expenses through registration fees and |
(5) | partnership with the host hotel. As part of the |
(6) | partnership, the host hotel sets aside a block |
(7) | of rooms for conference attendees, with rooms |
(8) | available at a slightly higher-than-normal rate. |
(9) | While most conference attendees prefer to |
(10) | stay in the host hotel, they often follow an |
(11) | alternate strategy to avoid the extra cost of |
(12) | reserving a room within the block at the host |
(13) | hotel. Some attendees reserve rooms outside |
(14) | the host hotel—the ROHH strategy. Others |
(15) | reserve rooms outside the block— the ROB |
(16) | strategy. |
(17) | Conference sponsors have succeeded in |
(18) | countering these strategies by increasing the |
(19) | conference registration fee by a fixed amount |
(20) | and then offering an equivalent registration fee |
(21) | discount to attendees who reserve rooms in the |
(22) | block. A study has shown that if this registration |
(23) | discount is equal to at least half the potential |
(24) | savings of an attendee's particular cost-saving |
(25) | strategy, the attendee is much more likely to |
(26) | reserve a room within the block. |
Line | Ten conferences are scheduled for the same |
(2) | weekend in City X. For each conference, the |
(3) | table lists the conference sponsor, the |
(4) | registration fee, the discounted registration fee |
(5) | (if any), the host hotel, the rate for rooms in the |
(6) | block at the host hotel, and the lowest rate for |
(7) | an available room in the host hotel during that |
(8) | same weekend. Conference attendees will |
(9) | require two nights lodging, and all room rates |
(10) | are per guest, per night, assuming two guests |
(11) | per room. The lowest rate for an available room |
(12) | in City X on this same weekend is $65. |
Sponsor | Registration fee | Discounted registration fee | Host hotel | Block rate | Lowest rate in host hotel |
---|---|---|---|---|---|
AMG | $225 | $150 | Garden Inn | $120 | $65 |
CC | $720 | $620 | Hilton | $110 | $70 |
CDA | $450 | $400 | Asiawest Center | $190 | $185 |
FFNA | $325 | $275 | Hilton | $140 | $70 |
HMHPA | $600 | $575 | Holiday Inn | $104 | $79 |
PPOA | $550 | $400 | Hilton | $105 | $70 |
PNDA | $425 | $400 | Bard Inn | $125 | $125 |
QRTA | $325 | no discount | Asiawest Center | $195 | $185 |
RCD | $995 | $895 | Asiawest Center | $195 | $185 |
WWLOP | $475 | no discount | Perry Pavilion | $155 | $155 |
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