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Every convention that uses function space is paying for that function space somehow, even if it doesn't appear in their budget anywhere. They can do this in several ways:
In the US we tend to prefer the hotel rate solution, because it is effectively sliding scale. Those less well off can share rooms or stay in cheaper offsite lodging that's not supporting the cost of function space. Regionals especially prefer this because so many of their attendees have the option of commuting, so the hotel room is really a convenience tax. In fact we like this answer so much that it's not unusual to raise the rates even more and have the hotel provide a cash payment to the convention. Albacon, for instance, for years got $10 per room night from the hotel. Overseas, smaller hotels and different economic patterns make this less desirable or effective.
Running a convention in function space is a financial risk, both to the convention and to the facility. The convention doesn't know what its income will be and risks falling short, and sometimes doesn't know how much space it will need either and risks overbuying. The facility for its part doesn't know how much associated food-and-beverage, parking, wifi, etc business it will do, or how much hotel-room or sales-tax supporting revenue there will be. The convention and the facility will each want the other to assume the risk. Of course each party has a different view of how much risk there is, which plays into the negotiations. And some negotiators are better at getting their partners to assume risk, or sometimes at hiding how much they are getting their partners to assume.
If you have ever worked in theatre, you will know that Disney's negotiators are *excellent* at getting their contract partners to assume risk. Cue ominous music...
So let's look at the three bids and what their function space is going to cost them.
( Helsinki )
( Spokane )
( Orlando )
- Build the cost into the hotel room rates (as Arisia does). Typically 30% of the room rate counts towards function space cost.
- Build the cost into the catering budget (as most hotel weddings do). Typically 50% of catering expenses count towards function space cost.
- Build the cost into tax revenue from conventiongoers (as some cultural festivals held in government owned facilities do). Amounts here are a little opaque.
- Build the cost into associated revenue from attendees and/or payments from captive contractors. Amounts here are completely opaque.
- Pay cash (as most Worldcons do). The least opaque option.
In the US we tend to prefer the hotel rate solution, because it is effectively sliding scale. Those less well off can share rooms or stay in cheaper offsite lodging that's not supporting the cost of function space. Regionals especially prefer this because so many of their attendees have the option of commuting, so the hotel room is really a convenience tax. In fact we like this answer so much that it's not unusual to raise the rates even more and have the hotel provide a cash payment to the convention. Albacon, for instance, for years got $10 per room night from the hotel. Overseas, smaller hotels and different economic patterns make this less desirable or effective.
Running a convention in function space is a financial risk, both to the convention and to the facility. The convention doesn't know what its income will be and risks falling short, and sometimes doesn't know how much space it will need either and risks overbuying. The facility for its part doesn't know how much associated food-and-beverage, parking, wifi, etc business it will do, or how much hotel-room or sales-tax supporting revenue there will be. The convention and the facility will each want the other to assume the risk. Of course each party has a different view of how much risk there is, which plays into the negotiations. And some negotiators are better at getting their partners to assume risk, or sometimes at hiding how much they are getting their partners to assume.
If you have ever worked in theatre, you will know that Disney's negotiators are *excellent* at getting their contract partners to assume risk. Cue ominous music...
So let's look at the three bids and what their function space is going to cost them.
( Helsinki )( Spokane )( Orlando )
