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Outlaw Service Providers Going Against the Grain

By Vanessa VanderZanden -- Tradeshow Week, 11/3/2003

From housing to handling freight, tradeshow exhibitors have plenty of options when it comes to selecting service providers. And lots of those service providers advertise. However, occasionally there are questions concerning how ethical some tactics they use to drum up business have become.

Perhaps most annoying are companies that market their services to exhibitors as though they are official service providers to participants in a particular show when in fact they are not. Show organizers then receive complaints from exhibitors who cannot decipher which service provider they have already agreed to use as part of their package deal and which is masquerading as the official company. Some view this as simply a case of clever entrepreneurs looking for new business, others as a costly deception.

"It confuses the exhibitor more than anything else," said John Schoener, national tradeshow manager at Roadway Express. He explained that most often, in the case of transportation carriers, post-show arrangements are made before the exhibitor even sets foot in the convention center. However, the service has not yet been paid for, and the exhibitor on the show floor is typically not the person in charge of making freight arrangements. The exhibitor may not be aware of who the service provider is and, in his or her haste to leave the show, may agree to have freight transported via a competing carrier.

This results in chaos at the loading dock when the two carriers — the one with the pre-arranged contract and the new provider that was signed on by the unsuspecting exhibitor at the show — arrive to move out the freight. By this time, Schoener said, the exhibitor is often already on a plane headed home, and the general contractor is left to figure out which carrier has jurisdiction over the freight.

"Registering customers is everyday business but, if you go under the guise of being the preferred service provider, I think that is wrong," Schoener said. "Putting on that impression, that's not right."

"I think show organizers need to be talking with exhibitors about who are good freight carriers and let it go from there," said Michael D. Lynn, director of marketing communications, exhibitions, events and protocol business development for L3 Communications, noting that his group never uses the carriers selected by show organizers.

Freight carriers, while the most obvious service necessary as a tradeshow winds down, are not the only companies exhibitors complain about. Advertisements via fax and e-mail that are deceivingly labeled can infuriate busy exhibitors. "I think it's a pain," said Arthur Veale, the tradeshow manager for XN Technologies. He recently opened an e-mail marked "government video information," believing it would be important details regarding the upcoming Government Video Technology Expo. Instead, it was an advertisement for exhibit booths. "I don't have time for a sales pitch," Veale complained.

Frequently, he receives faxes from housing and booth vendors trying to hock their wares, sometimes noting deep in the text that they are not affiliated with the show, but mostly leaving it ambiguous. As a board member of the Trade Show Exhibitors Assn., he believes it is a problem worth discussing. "Everyone needs to make a living, but they don't need to misrepresent themselves," Veale said.

 

IAEM Fights Expo! Expo! Housing Ads

One recent example of housing "poaching" was so egregious the Intl. Assn. for Exhibition Management sent an e-mail to every one of its members telling them to ignore the company's marketing efforts.

According to Steven Hacker, president of IAEM, a travel group called Events Plus Travel got the association's directory and faxed or called members in such a way as to suggest that they were responsible for housing arrangements for IAEM's upcoming Expo! Expo! in Las Vegas. Bruce Peterson, president of Events Plus Travel and an IAEM member, said his company sent to clients, who happened to be members of IAEM, advertisements with a disclaimer attached clearly stating that his group was not the official housing supplier of the organization.

That disclaimer was not good enough, according to Hacker. "When they introduce our event into the discussion, that's where we draw the line," he said. Hacker went on to say he is used to third-party groups attempting to offer better rates to convention participants — IAEM's group rate for Expo! Expo! at Caesar's Palace is $139 — but the IAEM endorsement implied in Events Plus Travel's pitch was too much.

Consequently, IAEM sent its members a memo that read in part, "Please be advised that IAEM has not authorized any third party to handle our housing requirements. All reservations for Expo! Expo! are being processed directly by Caesar's Palace reservations department."

"We have a contractual agreement with the hotel," explained Hacker. "We've set aside a room block which we're committed to fill."

IAEM's lawyers also sent Events Plus a letter stating, "Your actions in trying to solicit our members are interfering with our contract with the hotel. We'll hold you responsible for any cost we've incurred due to your tortious interference."

Peterson said his company did immediately end its marketing effort, but not before receiving 150 phone calls from IAEM members interested in the cheaper hotel room rates.

"Just because they come to IAEM events, does this mean they are owned by them?" Peterson asked. He claimed his company did no harm by advertising cheaper housing and services to clients it had worked with in the past. "There's no law that says you have to go through the show organizers. Why not go through me?"

"The real funny thing was people look at us as a bad guy here when the housing mold is broken," Peterson noted, saying the high attrition rates of late are not the fault of outside advertisers, but people willing to search a little further for cheaper hotel rates than those offered by show managers.

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