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"It doesn't have to do with supply" is fairly obviously false. There isn't a supply problem in the sense that there are enough hotel rooms to fit everyone atten
by plorkyeran 2y ago
"It doesn't have to do with supply" is fairly obviously false. There isn't a supply problem in the sense that there are enough hotel rooms to fit everyone attending the con. However, there is insufficient supply for the hotels to have to compete to fill rooms. ComicCon doesn't have negotiating leverage because the hotels know that they'll sell out (or be close enough) even if they don't participate in the discounted blocks, which wouldn't be the case if there was a surplus of hotel rooms.
- toomuchtodo 2y agoComicCon needs to find a distressed property, obtaining financing (based on their annual convention P&L and attendance numbers) to buy it, and manage it. While this sounds extreme, it is no different than buying a property to live in because you are unwilling or unable to be exposed to volatile rental markets where your rent increases can outpace your income, or you are unable to find a rental entirely. Same thing for DefCon (Caesars abruptly terminated their contract). In negotiation, the party with the most power wins, and currently these conventions have no power over the lodging industry (who is attempting to maximize revenue and profits).