Booking Around the Block
Ed Harris, President, International Travel Service

For as long as meetings have been conducted, a percentage of participants have sought hotel accommodations using something other than the "official" room block. This phenomenon, while not new, has been exasperated today by three factors: Excessive available hotel inventory; the convenience of the Internet distribution channels: Current economic conditions.

This problem impacts each meeting, at each venue in a singular fashion. As there is no single factor that determines attendees' behavior….nor is there a single solution to mitigate the problem of "Booking Around the Block".

Below is a list of some practical actions that may be helpful in motivating meeting participants to support the meeting planners housing program or in capturing information to receive credit for some of the rooms booked outside the block.

1. Ask for the business…brochure, website, phone exhibitor service kit, client website, client newsletter, etc. Educate the participant. Emphasize on client website. Point out the benefits of booking within the block.
2. Combine registration and housing to offer one-stop shopping.
3. E-mail marketing..upon opening and post reservation for those who have not initially requested hotel accommodations.
4. Maximize rooms available..open up shoulder rights in the block..be smart but aggressive. With registration you often get the first shot at the customer, but if you do not have what he/she wants, you have lost the booking.
5. Allow hotel wait list on the Web and use strategic wait listing in the call center.
6. OPEN earlier and CLOSE later..consider opening housing even prior to registration. Extend booking/registration dates as late as practical.
7. Gather more information as a part of the registration process (what they are doing, where they are staying) about persons who do not request a hotel reservation…on the Web and on the Phone and on the Form as a part of on-site registration.
8. Do selective hotel audits with the major hotels comparing registration data to the hotels records.
9. Permit "return to the Internet" to add hotel rooms…encourage this in the registration confirmation and in the follow-up email marketing.
10. Check competitive web sites or 800 numbers and enforce rate integrity through the hotel contract negotiation.
11. Include clause in contract that discourages hotels from taking group business directly.
12. Telemarket to top exhibitors and email market to all other exhibitors.
13. Relax terms for exhibitors..be more exhibitor friendly.
14. Post show surveys asking why you booked around the block so we can improve the next year
15. Negotiate better hotel contracts..rates and attrition and audits..small block of Internet rates.
16. "Right size" your block ..increase block to meet demand later.
17. Value added features-Bus Transportation, Continental Breakfasts, Double Points, etc.
18. Raise registration fee and then offer a discount if book inside the block
19. SELL housing to phone registrants
20. Provide on-site rebooking service for exhibitors for the following year
21. Incentives: raffle, exhibitor points, etc.
22. If hotels overbook, insist that rooms outside the block are walked first.
23. Joint e-marketing with the hotels.
24. Offer special handling to groups who stay inside the block
25. Provide live, on-line monitoring capability for the hotels.

Looking Ahead

There are a couple of factors that may help lessen the severity of this problem in the future.

Historically low occupancy rates have resulted in considerable excess room inventory being marketed at distress rates over the Internet. With hotel construction at a standstill, and an improving economy, demand will eventually catch up with supply. This will reduce the number of rooms competing with the official room block at discount rates.

Hotels have expressed an interest in regaining more control over their marketing and distribution channels. This may mean that fewer rooms will be sold over third party websites as hotels improve the functionality of their own websites. In the future, just as has happened with the airlines, the lowest Internet rates will only be available over the hotels own websites. This will provide a better opportunity for the meeting planner to negotiate a "most favored rate clause" in their contracts that minimizes the number of rooms available at rates lower than those in the official block.

The public is also learning that the proliferation of the Internet hotel room sales has resulted in some service problems including:

Reservations not found
Full prepayment required
Difficulty in making changes
Substantial cancellation penalties
Loss of frequent traveler points

Reasons to Book IN the Block:

One Stop Shopping
Receive full Frequent Traveler Benefits
Convenient Customer Service
No Full Prepayment
Easy to Change - Phone, e-mail
Easy to Cancel if necessary
Support Sponsoring Organization
Convenient Shuttle Bus
Reasonable Rates
Secure Reservation Backed by Meeting Sponsor
On-Site Hotel Service Desk
Added Value Features
Networking Opportunities

Some Reasons Attendees Book Outside the Block

Lower Rates
Government Rate Requirement
Softer Terms (Cancellation penalties, CC Guarantees)
Frequent Traveler Points
Preference for a Specific Brand
Package Deals (Wholesaler or foreign travel group)
Exhibitors--- Get better group terms directly
Exhibitors--- Able to get more rooms at the same hotel
Use of regular travel agent or corporate travel office
Choices unavailable inside the block
Booking too late to use the block

Courtesy of Ed Harris, President, International Travel Service