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CES Vendors Kicked Out of Hotels For Showcasing Wares in Room

An anonymous reader writes to mention that a number of companies attempting to stretch their dollars by showing their new gear in hotel suites around Vegas during CES were kicked out of the rooms they paid for by CES organizers and hotel staff. According to sources as many as 30 small electronics companies may have been kicked out of The Venetian and The Palazzo on Thursday. One anonymous vendor claims they were coerced into paying $10,000 to the CEA lest they be kicked out of their (paid for) suite and barred from exhibiting or meeting with clients. 'States our source, "I asked the hotel staff if there were any limitations for using the suite. They said the only limitations were how many people were at our parties. They didn't say there were any limitations on displaying product. We set up our product on the first day. Then on Wednesday a cleaning person came in and reported what they saw to management. From there we got kicked out on Thursday."'

14 of 285 comments (clear)

  1. So... by XPeter · · Score: 5, Interesting

    To sum up TFA:

    1. CEA buys out Vegas for a week, attracting technology enthusiasts and large companions from across the globe.
    2. Said organization is holding the balls of local buisness so tight, that they must bend over to anything the CEA demands.
    (In this instance it was having The Venetian, The Palazzo kick out small/medium tech buisnesses who couldn't afford a CES floor spot onto the streets unless they paid the hefty fee of $10,000)
    3. ???
    4. Profit!

    Another evil coorperation fucking over the little guy, nothing to see here folks.

    --
    "The difference between genius and stupidity is that genius has it's limits" - Albert Einstein
  2. It's like by MikeyinVA · · Score: 2, Interesting

    Wi-fi and tables are available at the bookstore but they don't expect you to run your business, host clients, create displays on the tables (seen this done before!). CES and Vegas in general benefit from having a formal process and presenteres paying a fee and going through a process. Of course the hotel (and Vegas and CES) wouldn't want this.

  3. Lawsuit, anyone by mtrachtenberg · · Score: 3, Interesting

    Monopolistic practices. Interference with trade. Lost and unrecoverable revenue opportunities. General fuckedupness.

  4. Re:And this is news why? by Unequivocal · · Score: 2, Interesting

    I agree, but remember this is Vegas. Normally to get kicked out of a hotel room, there is a "guests bill of right" which you list pretty effectively.

    But Vegas runs by Vegas' rules. I think the concept that a Vegas hotel will ask a business or person to leave the premises b/c a more important patron doesn't want them there is time honored. Regardless of whether the first party is a customer or not. In that sense I don't think this story is new information on the underlying problem, but it's still aggravating.

  5. Re:That is positively asinine. by Unequivocal · · Score: 2, Interesting

    These vendors are probably registered at CES as customers rather than getting a booth. They probably have staff wandering around on the floor picking up clients and taking them back to their hotel room. Kind of like high-tech hookers, I guess.

    CES doesn't like customers stealing other customers - they want those customers on the floor looking at the booths that bigger vendors paid big dollars for.

  6. Re:You've hit the nail on the head by BobMcD · · Score: 2, Interesting

    Except they asked and the hotel answered. This would make the hotel a party to the crime, and puts them on dubious ground in making an 'unlawfulness' claim.

    Also, if no money changes hands, there could be a grey area of what 'commercial activity' actually means. If all conduct of business is forbidden, then many of those rooms would be empty and they likely wouldn't have desks in them.

  7. Contracts anyone? by Wardish · · Score: 3, Interesting

    Since I am not a lawyer, take all this with a block of salt.

    It's all about the room contract. I assume the room contracts were between the small companies and the hotel. If so a review of the contract is in order.

    It's possible that CEA had a contract with the hotel, but unless the hotel rewrote the contracts the small companies signed it's still a moot point.

    It's also possible that CEA bought blocks of rooms (not reserved, purchased) and sold them directly to the small companies. If so the contracts between CEA and the small companies are probably in force. A good reading is still in order as it's hard to tell if there's anything in there about it.

    If the contracts don't go your way then you might consider getting into he said / he said with hotel staff. And get out your wallet.

    --
    Ward

    . Silence! Be thankful thy species is unpalatable! .
  8. Re:And this is news why? by beh · · Score: 2, Interesting

    I mean I'm not a show vendor and I even know that doing such things is not ok with hotel management.

    A lot of the vendors claim they had informal conversations with management who said it was okay:

    I think the mention of them claiming to have had informal conversations is not really relevant to it - if anyone renting a hotel room asks are there any limitations - is the person they're talking to expected to mind-read that you would like to turn it into a sales-stand? ...or should he, to be safe, simply respond:
      You must not destroy any fittings and furniture, you may not repaint the room, take out and/or put in new carpeting/flooring, ... You must not murder anyone in the room, rape anyone in the room, ...., kidnap, take hostages, ... (insert-endless-list-of-things-that you should NOT do - simply based on them either being illegal, or simply not being seen as desirable by management).

    The simple question are there any limitations is most likely seen as 'obvious/unexpected limitations'. Most hotels rent out separate conference rooms for sales pitches and the like, and therefore would not - by default - expect anyone asking about limitations in using the room to use the normal room for sales pitches...

    So, unless they explicitly asked management "are you fine with us using our room for displaying some of our goods to potential clients, and possibly trying to close deals with said clients?", I do not think that the management was out of line in saying there weren't any (unusual) limitations.

    If you think the behaviour of the hotel was wrong here, expect your life to get an awful lot of more small print for anything from grocery shopping to using a public toilet, just so that the 'vendor' can introduce you to all possible limitations to your stay...

  9. Maybe CES will go the way of COMDEX by t0qer · · Score: 5, Interesting
    I sort of remember at the end of the 90's comdex was grabbing for straws and overstepping its power much the way CES is now. From Wikipedia;

    Following COMDEX Fall 1999 (in Las Vegas), organizers made major changes to their criteria for admission of media, rejecting nearly all but those who were on editorial assignment from a handful of "acknowledged" trade papers. Though offered regular "public" attendance, this left hundreds of regular, long-standing press attendees from magazines and newspapers around the world with bad feelings toward the show. As press credentials were necessary to gain the level of access necessary to make the expensive trip worthwhile, most refused to go and many told vendors that they would disregard product announcements made at or in relation to COMDEX.

    History repeating?

  10. Re:And this is news why? by shark72 · · Score: 2, Interesting

    "The Las Vegas Convention Center is not a hotel, so there is no "swindling viewers up to their private quarters" - in fact, the hotels that rent the largest number of suites to companies (Venetian, Bellagio, Wynn, etc) are no where near the convention center."

    The Wynn is reasonably close to the LVCC; that's why many companies have suites there.

    "Many of these companies have no presence at the convention, so how are they "swindling away" anyone? Many of the meetings/demos are private, have no interest/intention of showing their products in public yet, and have been set up between various parties well in advance, so it's not even taking away revenue from the CEA."

    Ah, but many companies are fleeing the LVCC and moving to suites. Revenue is being taken away from the CEA. Logitech quit renting booth space a couple of years ago and moved to a cheaper meeting room in the LVCC. Creative Labs downsized their booth dramatically and held their meetings in a suite at the Wynn. XM/Sirius moved from the show floor to the Bellagio last year. These are just some examples in the industry I'm familiar with, but there are many, many more. This is why you probably noticed that the LVCC was a bit lonelier this year than it was last year, and if the trend continues, will get even more sparsely populated. There's still traffic at the LVCC, to be sure, but CEA sees the writing on the wall.

    There's a secondary effect: as buyers get more used to visiting hotel suites, rather than going to the show floor, traffic to the LVCC is further reduced and creating even less incentive for vendors to place booths there. I didn't even need to buy a show pass this year.

    --
    Sitting in my day care, the art is decopainted.
  11. Re:That is positively asinine. by Maniacal · · Score: 3, Interesting

    I can't believe what I said is so controversial. Some folks are downright mad (it's my first flamebait mod). I guess I see this differently.

    If you don't have a booth at the show, how are you getting people up to your suite to look at your products? My guess is your walking around the show floor, handing out cards or fliers and inviting people up. If you're smart, you focusing on people who seem interested in your competitors products. So you're drawing people away from the vendors who paid to be in the show. Sounds like a free ride to me.

    Now, if you setup in a hotel that had nothing to do with CES (wasn't hosting any part of the show) and you sent a mass email to your 40-50 customers saying, "hey, while at CES come down to the Rio, we've got a suite. We'll liquor you up, show you some of our new products and we'll party". I think that's a good idea. Like you said, good bang for the buck.

    When I read it my immediate thought was that these people were down on the floor trolling for customers. Didn't sit right with me.

    --
    MG
  12. Because it isn't that unusual by zogger · · Score: 2, Interesting

    It's just as common as not, at least from my experience, as full time trade show worker for fifteen years before I semi retired back to farming. I have helped set up displays and product and arranged tables of literature and swag in any number of hotel rooms before, with the main action down in the exhibit halls or in the larger conference rooms, and I have always known it to go on and really..vendors meeting with clients in hotel rooms? Oh hey, look, I have the widget we are selling right here in my case... This is as common as anything, all over the planet, like as long as there have been hotels. A lot of times people make some contacts then they go back to the more private rooms to work out deals, etc, and they might still be looking at the products then. It just widely varies, and unless the show management and the hotels actually denied this practice in advance, and they can prove it, those folks got at least semi shafted. (guessing based on lack of more detail in TFA, it is all hearsay. Even if it was just coattail riding and they paid ces nothing, they still paid the hotel, and the hotel should have that restriction in some contract and be upfront about it in advance.)

  13. They agreed to the terms at check-in by mbstone · · Score: 3, Interesting

    I have stayed at the Venetian/Palazzo many times. When you check in, there is a four page agreement that appears on a little LCD screen that you have to sign. It specifically says you agree not to display merchandise or conduct business in your suite.

    So this entire thread is in the category of Whining.

  14. seems like a standard breach of contract lawsuit by Uzik2 · · Score: 2, Interesting

    Should be easily dealt with in court.

    --
    -- Programming with boost is like building a house with lego. It's a cool but I wouldn't want to live in it