Point/Counterpoint
Should shows use exclusive service providers?
In April, Hospitality Financial and Technology Professionals (HFTP) announced “plans for preventing pirate exhibitors (suitcasers)” at its 2008 Hospitality Industry Technology Exposition and Conference (HITEC), which sparked debate in the industry about the use of “official” and “exclusive” vendors and suppliers.
Point: Frank Wolfe
Exclusive service providers know your show and its attendees
Using exclusive and preferred service providers is the best method - at least for HFTP and HITEC. Our conference is an extremely complex event, and the products displayed there require very specific and technical services. Our service providers have to provide proof of insurance, be a "legitimate" company, and comply with state and federal laws.
Because our exhibitor showcase is open over a three-day period for a maximum total of 14 hours, customers might only pass an exhibitor's way once. Exhibitors can't afford to hear that their products can't be delivered as promised because [unreliable and/or inexperienced suppliers were used].
HITEC tries to ensure that exhibitors are purchasing services from suppliers who know the difference between an HD signal and a cable signal; a dedicated T-1 line and a shared T-1 line. While there are never any guarantees that our exhibitors will get exactly what they order, we can assist them if they are using businesses we have already vetted.
Negotiating with exclusive suppliers also helps us leverage our exhibitors' buying power and build relationships to ensure the best possible service - and renegotiate prices if previously new technology becomes cheaper. Because we've been around for 50 years, we can secure long-term contracts and pass the savings to our exhibitors. We can also ensure that suppliers aren't "marking up" their fees once they become exclusive, because there are agreements in advance. HFTP is a not-for-profit professional association; unlike at many "for-profit" shows, our exhibitors are not indirectly paying a large "kickback" for the privilege of doing business with an "exclusive" provider.
Frank Wolfe is CEO of Hospitality Financial and Technology Professionals (www.hftp.org), which produces HITEC, the world's oldest and largest hospitality technology conference.
Counterpoint: Candy Adams
Exclusive service providers make exhibiting more expensive
As exhibitors, we are trying to do the same thing that Mr. Wolfe says HITEC is doing by appointing exclusives: leverage our buying power, build relationships, and have the vendor gain familiarity with our particular show. We, too, want to work with vendors who understand our business and exhibit program based on our long-term relationships that allow us to negotiate and leverage our buying power. But HITEC's posture mandating the use of their exclusives doesn't let us do that!
I'm not a proponent of suitcasing, outboarding, or pirating. But I'm not sure how allowing exhibitors to choose their own vendors contributes to these problems. It is part of the show manager's job to control access to the hall. Other shows routinely do this through their EAC (exhibitor-appointed contractor) process without stifling an exhibitor's right to select their vendors. Don't throw out the whole barrel of apples because of a few rotten ones! Basically, HITEC is doing what many convention centers have done to enhance their revenue - "partnering" with service providers (AV rentals, computer rentals, cleaning services, etc.) to create a monopoly that raises the cost of exhibiting for all exhibitors.
As an exhibitor, I resent being told I can't choose my own exhibitor-appointed contractors, but instead must use those "official" ones who must double their prices to be able to pay for the honor of being named "official," getting the exhibitor list to solicit our business, and putting their order form in the exhibitor services manual. If the pricing of the official show contractors wasn't so out-of-hand, exhibitors wouldn't want to hire non-official (independent) contractors with whom they can negotiate product pricing and service.

