Frequently Asked Questions
on COMMON's registration and housing
pricing policy
Below are some questions we frequently receive on COMMON’s pricing
policy for conference registration and housing. We hope the answers provided will be both helpful and informative.
Q: Is this a registration fee increase?
A: Yes. Increased registration rates are now in effect beginning with COMMON's Fall 2005 IT Education Conference and Expo in Orlando. Conference attendees have seen no rate increase since Spring 2003 except for the Guest Fee. Unfortunately, the time has come for COMMON's registration rates to align with increased conference costs in areas such as audio/video equipment and services, food and beverage, drayage, labor, etc. Our continuing goal is to provide relevant, high-quality, real-world education and best practices related to the implementation of IBM iSeries. The new registration rates are posted on the Conference Pricing page of this site.
Q: Why is the registration rate higher for attendees
who aren’t staying in an official conference hotel?
A: Staying in rooms at our conference hotels helps COMMON offset
the costs of meeting space, exhibit hall rental and many other costs
associated with our meetings, from tables & chairs, to power, air/heat
and lighting. These are sizeable costs to the organization that must
be covered. Attendees who stay in other non-official COMMON conference
hotels do not help offset these expenses. Additionally, low sleeping
room usage at our contracted hotels increases COMMON’s exposure to financial
penalties. We hope that $200 or $300 in savings for attendees who stay in a
conference hotel will provide added incentive to attendees to stay in COMMON's official
conference hotel(s).
Q: How can I get the lowest conference registration
rate?
A: To get the best price, register before August 25, 2005 and you'll
get a lower registration rate.
Q: Does the Registration Rate include the price
of the hotel room?
A: No. Registration rates and hotel rates are separate.
Q: Will this pricing plan apply at future conferences?
A: Yes. At every future conference destination, we have contracts
with official conference hotels. For convenience and as a show of support,
we ask you to stay in official COMMON hotels. For individuals who elect to stay at non-conference hotels, a higher registration
rate will apply. This pricing structure has been a significant factor in protecting our general financial well-being while successfully minimizing increases to membership dues and conference fees.
Q: Are other organizations instituting similar
pricing plans?
A: Yes. Assuring that attendees use contracted hotel rooms in order
to avoid attrition or other financial penalties has become an industry-wide
issue. As a result of the economic
downturn and changing trends within the travel and meeting industry since
9/11, many groups have had to find creative solutions in order to continue
serving members while protecting the assets of their organizations.
Q: Why do hotels charge attrition?
A: Attrition or "performance" clauses have become part of
standard hotel contracts as a way for hotels to ensure client organizations
fulfill their contracted obligations. If an organization contracts to
use 500 rooms over a four-day period, and then only uses 200 rooms over
those dates, the hotel suffers a serious shortfall of revenues. As in
any other business, hotels have operating costs, overhead, employee payroll
and benefits to fund as well as owners and bankers to answer to. Their
budgets and property upkeep are contingent upon meeting their financial
goals. An attrition penalty is charged when promised/contracted business
falls below an agreed upon level of performance. The hotel applies the
penalty fees toward offsetting those losses. A group is responsible for
using a minimum number of sleeping rooms per contract. If those minimums
are not met, attrition penalties or meeting room and exhibit hall charges
could apply. To avoid paying attrition charges, organizations are working
proactively and cooperatively with their members and the hotels to assure
that as many contracted rooms as possible are used.
Q: Can I get a cheaper room somewhere in the area?
A: There are always going to be "cheaper hotels" available
in some of our conference destinations. COMMON has made great efforts
to book its conferences in convenient locations that can provide the
extensive meeting and exhibit space we need. Over the dates of our meeting,
COMMON has negotiated the best rate possible for the convenience,
quality and size of facilities COMMON requires. Along with a number of
other factors, our negotiated hotel rates are based on the amount of
the meeting and exhibit space we require, the food and beverage revenues
we generate, the time of year in that destination, and the overall size
of our conference.
Q: Why are the hotel room rates so high?
A: Hotel rates, like airfares, vary greatly. There are many influencing
factors that determine group rates. For example: the type of hotel property,
i.e. a resort, convention hotel, economy property; the amount of meeting
space/services required by the group. Does the group bring significant
amounts of other revenues to the hotel, i.e. catered food and beverage,
or through the use of hotel restaurants, bars, shops, etc? Are the conference
dates over a very busy time period for the hotel? Is the meeting during
prime travel/tourist season? Group rates are additionally based on typical
economic laws of supply and demand. Given the above variables, COMMON
negotiates the best rates possible for the convenience, quality
and size of facilities COMMON requires.
Q: How does COMMON decide how many hotels—and
hotel rooms—to book?
A: COMMON reviews hotel usage and registration figures from recent
COMMON conferences (past 2-3 years) as well as attendance figures from
meetings previously held in a particular city – if COMMON has met there
before. We estimate the number of sleeping rooms needed for the future
based on the number of rooms used in the past, the popularity of the
site and our best projections for the increase or decrease of attendance
for that site. It is not an exact science by any means! We try to build
in as much flexibility as possible in our contracts so adjustments can
be made closer to the actual dates of the meeting. COMMON then tries
to book a convenient grouping of hotels immediately adjacent to the convention
center or HQ hotel, securing the best possible rates and terms.
Q: Why does COMMON book conference hotels and
facilities so far in advance?
A: COMMON contracts with conference hotels and convention centers
approximately four to five years in advance, basing its plans on past attendance
and projected needs for the future. There are numerous requirements and
site selection criteria that must be met. To name a few, we need to:
1) find spring and fall dates that avoid major, religious and Canadian
holidays; 2) identify one or a grouping of facilities that can provide
us ample meeting and Expo space, and enough sleeping rooms for our needs
at reasonable hotel rates; 3) choose a popular site that is easily accessible
and affordable for air travel; and 4) that it is a package that does
not require busing – if at all possible.Commitments are monitored and
revised periodically. We can sometimes decrease or increase the number
of sleeping rooms or the amount of meeting space we are holding, but
we must work within the parameters set forth in each contract with each
hotel. (In some cases, we may be able to reduce the number of hotel rooms
by 5% or 10%— if the change is made two years prior to the conference.).
In general, we have found that in order to secure the kind of space,
convenience, preferred dates, hotels, and favorable terms, etc. required
by COMMON, these arrangements must be confirmed within the 4-6 year-in-advance
timeframe.
Q: Can’t COMMON cancel hotel rooms if too many
have been contracted?
A: Sometimes it is not possible to drastically reduce or cancel a
contract without incurring a large cancellation fee. Hotels sell their
sleeping rooms and meeting space as far in advance as possible. If the
hotel had their inventory reserved and "off the market" for
COMMON, they may have turned away other business. A cancellation may
leave them unable to replace the business in the amount of time left
before the dates of the meeting. If there is low demand by other groups
or tourist business in the city, unused rooms could result in serious
revenue losses to the hotel. Or, the hotel may have to sell rooms at
extremely low rates -- also resulting in significant lost revenues. As
a matter of course in the industry, COMMON could, consequently, be liable
for a large portion of these losses incurred by the hotel as a result
of default on our agreements.
