HOSP3077 Convention Centers Management

Convention centers are typically located near several hotels. Often, the convention center management will bid on a convention which requires rooms in many of the hotels. The convention center management will send out a request for the hotels located near the convention center to commit to housing a certain number of rooms related to convention.

Some hotels adopt a strategy of NOT participating in these housing commitments – in other words, they tell the convention center management that they won’t accommodate any convention attendees. Do you think this strategy is wise or not, and why?