ACCC RULES ON BESYD’S TERMS
THE Australian Competition and Consumer Commission (ACCC) has granted authorisation in a draft determination for 20 years to allow Business Events Sydney member hotels to provide a common set of minimum terms to event organisers in a bid to lure more int’l events to Sydney.
The deal covers largescale events with more than 2,000 international delegates expecting to result in bookings of ten or more of the members’ hotels for accommodation.
Common hotel terms are a major drawcard when it comes to selecting a host city.
Swift Senior Relationship Manager David Bridgeman, who manages the 7,500 pax global financial services congress Sibos, wrote in his submission that “a city that is able to provide the benefits will have a clear competitive advantage over cities where this is not available – it makes the process of selecting a city and delivering a major event a more seamless experience”.
“Sibos required in excess of 25 hotels in Sydney,” Bridgeman explained.
“As the event organiser, Sibos must sign an individual agreement with each hotel which stipulates the amount of rooms to be offered to delegates, commercial terms and any benefits or penalties involved in booking or releasing accommodation rooms,” he said.
“I commend BESydney on initiating this application as it will help to drive continued success for Sydney.”
The consumer watchdog wrote in its draft determination “the agreement does not restrict or remove the ability for member hotels to compete against other hotels on price, service standards and facilities in the supply of hotel services for international business events”.
Submissions in relation to the draft determination are currently being sought and final determination will be revealed by the ACCC later this month.