As a planner, you might have heard the terms “piracy” and “poaching” when it comes to meetings, but perhaps you haven’t taken a hard look at what it means. Room block piracy and poaching is a real problem in the industry. In a report about room block “poaching,” ABTS Convention Services estimated that of the 20 associations they service, more than $50 million in revenue is lost annually due to around-the-block booking.
Room block piracy occurs when a fictitious reservation company takes an attendee, exhibitor or speaker’s personal and credit card information and confirms a reservation has been made. However, upon arrival at the location, there is no reservation in the system, meaning personal information was given to an unauthorized source. This is a clear case of fraud and should be reported to the authorities immediately upon discovery.
Room block poaching is similar to piracy but falls a little more within the boundaries of the law. Reservation companies that focus on poaching often actually make a reservation for the attendee; however, they book the attendee outside of the group’s rate block at the hotel, leading to larger attrition fees. Or the company can entice attendees away from the room block by providing a great rate on a room at another hotel altogether. These rooms usually come with exorbitant cancellation fees and terms, so even if a room is identified as “poached,” cost-prohibitive penalties lead to limited courses of action.
In order to protect yourself, your bottom line and your attendees, it’s recommended to check in with your hotel group sales manager often. Match your registrants with the hotel’s rooming list. If you know everyone who attends your conference is spending two nights and you have 300 registered for the conference but only 200 registered for room nights under the block, you know something is wrong. Ask for assistance from your hotel sales person. They may find your attendees are booking rooms at another venue around the block. This not only affects the attrition on your contract, but could affect your attendees’ event experience as well. They may be unaware of negotiated items or scheduled events that were included for those staying at the hotel. It’s best to catch this as soon as possible to avoid disappointed, unhappy attendees during the event.
Additionally, set a calendar reminder to release room blocks, if necessary, before attrition rates set in. This is a common misstep for planners—many want to hold on to the block in hopes of last-minute registrants, but this can be quite costly if the additional room nights fail to materialize.
There’s also a new player in town—properties that are not professionally owned or managed hotels or apartments. These homeaway-from-homes are popular with budgetconscious travelers and can truly threaten a conference or meeting room block.
To combat all of these issues, a meeting planner’s mission should include communicating the benefits of staying at the hotel. Make certain you choose a location that can provide a fun and personalized stay for your attendees at the right value point. To entice attendees to stay on-site, use these tips:
» Host multiple networking events. Attendees crave the opportunity to meet more people in their industry, and by staging events at various locations within the hotel, it will encourage them to stay on-site for convenience.
» Determine the right price point for attendees. Many times, attendees look outside the block because the cost difference is significant. If this is the case, work with the group sales professional and venue to determine the season, day of the week or time period that will offer the best value. Remember, this means you may need to be flexible regarding your event dates.
» Offer incentives. By offering discounted early-bird room rates and communicating the benefits of staying on-site, it will encourage attendees to take advantage of the block. You’ll then have more time to react to issues, and the hotel will be more flexible with requested changes.
