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Rate Integrity in Convention Cities

Kansas State University, bogerc{at}ksu.edu

Je’Anna Abbott

University of Houston, jabbott{at}uh.edu

Li-Chun Lin

University of Tennessee, lin{at}utk.edu

Amy Heinemann

Kansas State University

Potential hotel guests who are not participants in a convention are many times able to negotiate their rates whereas convention participants pay higher fixed rates. Convention participants may begin representing themselves as nonconvention participants to obtain these lower rates. This will reduce the number of rooms that can be counted toward a convention-room block and may reduce the hotel’s average daily rate or occupancy percentage. It is in the best interest of convention organizers and hotel executives if rate integrity exists among hotels in convention cities. This study compares the rate integrity between convention cities and provides suggestions on how convention organizers and hotel executives can avoid convention participants’ obtaining nonconvention rates.

Key Words: yield management • rate integrity • pricing • positioning

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