For event organizers and hotels, attrition and attrition fees are one of the most significant problems in the meetings, conventions and exhibitions industry.

To remedy that issue, Par Avion Meetings & Conventions (PAMC), one of the world's leading conference housing, travel and registration companies, and Active International, the world's largest corporate trading company, today announced a new program called Attrition Solutions that will reduce or eliminate financial risk and alleviate the strain between event organizers and their hotel partners.

Through the joint venture, Par Avion and Active International’s program can provide a potential solution for up to 100 percent of the liability for the attrition costs of hotel room blocks.

“Attrition fees create undue stress on the relationship between event organizers and hotels. They also create direct financial hardships for both parties,” said Toby Brenner, president and CEO of Par Avion Meetings & Conventions. “To help remedy attrition fee difficulties, Par Avion is pleased to partner with Active International to present this innovative financial solution to the industry, which offers many benefits to the hotelier and the event organizer or association.”

According to a survey report by the Convention Industry Council (CIC), the percentage of those who have been assessed attrition fees rose dramatically to 32 percent in 2002/2003 from just over four percent in 1998. In 2003, 32% were assessed fees and 41% of groups with a multiple hotel block were assessed fees. Only 52 percent of respondents have a formal organizational policy to cope with attrition, according to the study.

“Active International’s unique trading abilities can provide a solution to a high-profile problem within the conference and travel industry. Combined with Active’s proven ability to generate incremental revenues and introduce new clients to hotels and convention centers, this new solution creates a unique proposition within the travel marketplace,” said Dominic Bencivenga, Active’s senior vice president Worldwide Travel Services.

Key Benefits

While research shows that attrition fees are an escalating problem, Par Avion and Active International’s new Attrition Solutions program is the answer.

The hotel benefits by:

• Potentially collecting 100 percent of the liability upfront
• Avoiding steep litigation expenses
• Maintaining client goodwill
• The event organizer or association benefits by:
• Significantly reducing or eliminating attrition fees
• Satisfying contractual obligations with the hotel
• Maintaining goodwill with the hotel partner

According to David Korse, president and CEO of IDG World Expo, this new solution is an important new opportunity for the industry. “As an experienced event organizer of conferences and exhibitions for technology markets, we believe we have a strong business understanding of the attrition issue. A program like this has the potential to provide an important sense of security and reduced financial risk.”

“I only wish this program had existed a few years ago, “said Scott Welker, chief operating officer of the Specialty Coffee Association of America (SCAA). “It would have saved us quite a bit of money when our association had to pay attrition fees.” 

To inquire about the Attrition Solutions program from Par Avion and Active International, call Par Avion at 800-826-5977 or e-mail attrition@paravion-inc.com.