The expenses related to sponsoring a conference can be immense. An organization sponsoring a conference can recoup these expenses through registration fees and partnership with the host hotel. As part of the partnership, the host hotel sets aside a block of rooms for conference attendees, with rooms available at a slightly higher-than-normal rate.
While most conference attendees prefer to stay in the host hotel, they often follow an alternate strategy to avoid the extra cost of reserving a room within the block at the host hotel. Some attendees reserve rooms outside the host hotel-the ROHH strategy. Others reserve rooms outside the block-the ROB strategy.
Conference sponsors have succeeded in countering these strategies by increasing the conference registration fee by a fixed amount and then offering an equivalent registration fee discount to attendees who book rooms in the block. A study has shown that if this registration discount is equal to at least half the potential savings of an attendee's particular cost-saving strategy, the attendee is much more likely to reserve a room within the block.
Ten conferences are scheduled for the same weekend in City X. For each conference, the table lists the conference sponsor, the registration fee, the discounted registration fee (If any), the host hotel, the rate for rooms in the block at the host hotel, and the lowest rate for an available room in the host hotel during that same weekend. Conference attendees will require two nights lodging, and all room rates are per guest, per night, assuming two guests per room. The lowest rate for an available room in City X on this same weekend is $65.