Host Hotels Sell-Out Quickly

In 2006 and again in 2007, the association had their largest events ever, including a record number of exhibitors and attendees. The dramatic growth is a reflection of an industry benefiting from a stable funding source. But with growth comes issues. One issue is hotel space and room blocks. The hotels for the 2006 and 2007 annual conferences were contracted for in mid- 2004, prior to the zero subsidy compromise late that year. Since we review the room block after each conference, we used our room block history through 2003 as the basis for contracts for 2006 and 2007. The 2004 conference was held pre-compromise, and we did not pick up our entire room block that year at the San Diego Marriott. As a result, we did not adjust the room block for the 2006 conference in Phoenix. Then came the 2005 annual conference––and a 20 percent growth from the previous year that created the need for overflow hotels. We did increase the block at the 2006 host hotel (JW Marriott DesertRidge Resort). Even so, it wasn't enough and the block sold out even before the cut-off date for reservations. While this is a 'good problem', it is still a problem. We apologize for any inconvenience the room block issue may have created. Contracting with hotels is a significant financial risk for the association. In mid- 2004, we simply could not foresee this growth. Hotels want to know that we are going to use the rooms we block and do this through attrition clauses. Hotels require an 80-90 percent pick up of the rooms blocked––or NAGGL pays the difference. That difference is for both the unused rooms and for food and beverage up to the required level. In short, it can be very expensive for the association if we over-block rooms.