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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."'
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
Vendors have been showing their products in hotel hospitality suites for decades. I've never been to any trade show yet where this wasn't the case. I don't know what the hell CES management is thinking if they consider this any kind of a problem.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
AVN holds the porn convention at the same time in vegas. do they have the same rules about not working in your rooms? maybe the demo was a rogue AVN guest and not CES?
I guess they really want to tighten up their grasp at other companies money.
I've always heard about these types of 'parties' from all the shows, especially CES and EEE.
Even Microsoft and Sony (among many others) do these for some stuff.
The smaller vendors have utterly relied on being able to do this.
Having a small booth in a 'busy' place like that can make it really hard to do a presentation of your product, not to mention restricting access when you want to keep it limited.
Seems a bit odd (or greedy) for them to start cracking down on it now.
The CEA can institute whatever rules it wants on its own show property, but it has no business or right to interfere with anything (ahem) going on in local Las Vegas hotel rooms.
Similarly, unless the hotel informed them of some restriction, and as long as they abided by all of their usual rules, they have no basis for throwing them out, at all. I hope these companies fight this. At the very least, there's remedy in small-claims action. And obviously they should dispute any credit card charges from the hotel.
They're probably desperate from the declining numbers, and revenue, and are in financial trouble.
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:
More importantly, the vendor's chief representative reports that they had contacted the hotel management before the show and asked if there were any limitations on showing product in the suites. The hotel management at The Venetian reportedly said there were not.
But then someone at the hotel said:
A security guard at The Venetian confirmed these reports further, saying he had been involved with "solving" a "lot of problems" at CES. When we inquired what these "problems" were, he stated, "The problems aren't with CES itself, but with people who didn't go through the proper channels to display the products and hold their business meetings."
So there's your news, it's a he said/he said sort of thing at this point unless you can find the rules to CES that explicitly address this. You know, it could be spun one way saying that the hotel management knew it wasn't going to fly but wanted the moneys and so they lied and kicked them out only after they had the money in their pocket. Should have got it in writing if that was the case. The other way to spin it is that these guys did more than they asked was okay and that bothered management.
I particularly enjoyed this statement:
If the vendors can't pay, they can't pay. One smaller company was already kicked out we witnessed today, likely more have been or will be as well. Is this really good for CES, an industry flagbearer? And is it really good for the Las Vegas economy, so dependent on the show?
It's pretty obvious to me that if you're paying a premium for showing your product at that show, you don't want 2 bit operations setting up in the hotel rooms above you trying to swindle your viewers up to their private quarters. You're there for those people to see your flashy setup. That's why you pay, isn't it? Management and CES could very well have been protecting the interests and quality of the show. Also, I don't think if CES moved it would hurt Vegas all that much. They have some other industries around there that do pretty well despite recessions or any sort of economic downturn.
And even if it is, why wasn't the CEA and hotel management more clear about restrictions on exhibits and meetings in Las Vegas hotels this week?
Agreed, brace yourself for a forty page contract written in legal speak to be signed next year before your exhibit and hotel room is inspected and okayed for entrance into the hotel and showroom floor.
My work here is dung.
Monopolistic practices. Interference with trade. Lost and unrecoverable revenue opportunities. General fuckedupness.
CEA probably could have saved a lot of grief by warning these vendors ahead of time that it was going to do this sort of thing. Sure a number of the vendors would have worked around the rules, but that'll happen next year despite the crackdown. The vendors will just be a bit more clever.
Further, this just reeks of bad communication and incompetent handling by CEA and the respective hotels. If I were involved with the decision, I'd be worried about breech of contract suits from the affected vendor firms. Just from my extremely crude reading of the article, this doesn't sound like CEA or some of the hotels did due diligence in upholding their side of the exhibition contracts.
Finally, these sorts of antics show up when an organization is tight on money and starts ignoring long term costs and harm. One wonders if the CEA will go bankrupt in a few years.
"I mean I'm not a show vendor and I even know that doing such things is not ok with hotel management."
you didn't RTFA: "the vendor's chief representative reports that they had contacted the hotel management before the show and asked if there were any limitations on showing product in the suites. The hotel management at The Venetian reportedly said there were not.... "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. ""
I think the real lesson here is not to stay at The Venetian. If I want to get a hotel, then invite a few people over to view a new laptop, what business is that of CES? I know CES doesn't want to lose money, but really these small businesses are just moving out of the way for the big guys to get more booths. Intel isn't going to bring people back to a hotel room, and the more companies you have in Las Vegas that week the bigger CES will be, whether they're in their room or on the floor.
my karma will be here long after I'm gone
... no competition is allowed ;-)
It's pretty obvious to me that if you're paying a premium for showing your product at that show, you don't want 2 bit operations setting up in the hotel rooms above you trying to swindle your viewers up to their private quarters. You're there for those people to see your flashy setup. That's why you pay, isn't it? Management and CES could very well have been protecting the interests and quality of the show. Also, I don't think if CES moved it would hurt Vegas all that much. They have some other industries around there that do pretty well despite recessions or any sort of economic downturn.
You sir, are an idiot.
The small companies (such as Zalman) that were evicted from the hotels, paid for the room in full without signing any unique agreements. Unless the parties violated the following conditions set forth by many hotels, then they had no right to be kicked out.
Standards:
* Disorderly conduct
* Nonpayment
* Using the premises for an unlawful purpose or act
* Bringing property onto the premises that may be dangerous to others
* Failing to register as a guest
* Using FALSE PRETENSES to obtain accommodations
* Being a minor unaccompanied by an adult registered guest
* Violating federal, state, or local hotel laws or regulations
* Violating a conspicuously posted hotel or motel rule
* Failing to vacate a room at the agreed checkout time
Vegas is STARVING, akin to what Dubai just endured...They need everything they can get. CEA handed the town a nice lump sum, and with that they became the new sheriff in town (obviously abusing their powers).
"The difference between genius and stupidity is that genius has it's limits" - Albert Einstein
Its not unclear.
What it is not is confirmed by any source who doesn't have a vested interested in presenting things in a particular light.
There is a difference between a claim and a fact.
"Intel isn't going to bring people back to a hotel room, and the more companies you have in Las Vegas that week the bigger CES will be, whether they're in their room or on the floor."
Also once these small time players become larger companies thanks to hotel rooms at CES, do you think they're going to want to associate themselves with the small time players peddling wares out of a hotel room? This is like selling TVs off the back of a truck, if you become successful eventually you'll want to get your own store, and eventually these companies will move out of their rooms and down to CES floor.
If you don't do this, these smaller companies might band together and get one hotel for themselves that week and do their own thing. Sure 10 grand ain't much to a Vegas hotel, but you get several dozen 10 grands together and some of the smaller hotels might take notice.
my karma will be here long after I'm gone
I've seen this happen with Siggraph. The contract that Siggraph had with the hotels said that no vendor suites would be allowed for display of products or meetings with actual or prospective customers without explicit written permission from Siggraph management. All vendor suites had to be booked through Siggraph.
In, I think 1994, several vendors had such suites and publicized them at the exhibition. Siggraph management charged the hotel the standard suite fee for each of those vendor suites. Collected it too. I don't know if the hotels managed to get it back from the vendors or not.
We are proud to announce that we will be holding a similar event in Lost Springs, WY and that there will be absolutely no restriction on what participants may do. Also, the fees we are going to charge will be ridiculously low compared to what it costs in Vegas.
Stay tuned for updates.
You can look here for directions :
http://en.wikipedia.org/wiki/Lost_Springs,_Wyoming
http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=Lost+Springs&sll=37.0625,-95.677068&sspn=32.252269,72.158203&ie=UTF8&hq=&hnear=Lost+Springs,+Converse,+Wyoming&ll=42.863886,-105.314941&spn=0.93208,2.254944&z=9
Everything I write is lies, read between the lines.
What we see here is the overreaching arrogance of an organization blinded by the belief that they "own" something that can't be owned: others' right to share their products with an audience. Ironically, the show exists precisely because of all these big and little companies make an effort to show up, pay up, and display their products to an audience.
Now, the middlemen suddenly believe that they own the process of doing so, and not just the real estate of the showfloor.
It is crucial how the bullied companies react to this insanity. Ideally, big headlines revealing the evilness and stupidity of CES management, and appropriate lawsuits will provide CES with enough incentive to refrain from bullying their own (potential) clients in the future.
I can see how scared CES may be of the possibility of a parallel tech expo which they can not monetize on. Wouldn't that be a great idea? Lower participation threshold, more indie companies, diversity, and the possibility of fun with fewer constipated uptight suits in the room.
It's pretty obvious to me that if you're paying a premium for showing your product at that show, you don't want 2 bit operations setting up in the hotel rooms above you trying to swindle your viewers up to their private quarters. You're there for those people to see your flashy setup. That's why you pay, isn't it? Management and CES could very well have been protecting the interests and quality of the show. Also, I don't think if CES moved it would hurt Vegas all that much.
That's a pretty crazy exaggeration/analogy. You are practically comparing the 100's of small startup tech companies who rent suites at CES to hookers or swindlers. Nice.
Further, your description is not very accurate. 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. 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.
In fact, much of the reason the companies schedule these meetings at CES not to "steal" from the CEA, but simply because that's when all of the executives, press, etc who they want to meet with are in one place at the same time. They save a lot of money and time not having to inefficiently fly everyone around the world for weeks holding one painful meeting at a time. I suppose that is now stealing from the airlines, though...
As I understand it, these were Suites. Suites as in designed to have guests, business guests.
I know lots and LOTS of business folks that rent suites to conduct business in all the time. I know other trade shows do this all the time as well, it is part of the trade show mechanism. This is typical short term thinking. If the meetings in suites prove successful, those same companies will hopefully grow big enough to need a booth next year.
Sorry, this looks like nothing more than a CES shakedown. I would definitely question the legality of CES being able to kick you out of a hotel suite for having business meetings. I could maybe understand it if you had a standard room, but if you got a suite, then IMHO, the hotel is completely in the wrong and caved to CES threatening them.
Both parties should be taken to court.
Crikey, hotel suites exist for two purposes. 1, Folk with money who want space, and 2, business people who need space to meet clients without inviting them into their bedroom.
Journalists book suites to conduct interviews, senior business people use them to conduct large transactions. I'd guess in most hotels, suites are used more for business than they are for ordinary guests.
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! .
High end audio was in the Venetian for at least 2 years and that meant people had open rooms with the furnature moved to show off speakers and gear. That practice has been going on for decades in hotels and I can't imagine why they would suddenly kick people out unless it was an individual stupidity.
History repeating?
This has been common business practice for a really long time at most trade shows I went to in Vegas in the 90's.
The trade show producer doesn't offer a way for smaller companies to get into most shows. Even if they did, a good idea would be knocked off in months in most cases.
Smaller vendors don't have the budget for a booth and meet their customers anyway they can. It's hard to blame them.
http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
Is anyone REALLY surprised? This is the place that embraces the exploitation of others. If you don't want to get shaken down then don't go to Vegas. I sure as hell don't.
>Most states have no specific laws on the books whatsoever in regard to race or >anything else. In general, a hotel management can deny service to anyone for >pretty much any reason
States don't need one because there is a Federal law:
Its called Federal Public Accommodation Law:
http://public.findlaw.com/civil-rights/civil-rights-enforcement/public-accommodation-discrimination-enforcement.html
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.