The Situation
Each year, the Medical Group Management Association (MGMA) — a membership association for professional administrators and leaders of medical group practices — holds an Academic Practice Management (APA) Conference for three days in April. With an economic decline running its course, this year’s attendance was dropping well below that of prior years. As their room block pickup peaked, MGMA realized they were 45% below last year’s numbers, setting them up for attrition charges of $100,000.
The Solution
The Maritz account representative for MGMA immediately began working with the hotel on how to reduce MGMA’s liability. Taking a unique approach, he utilized Maritz’s sales database and worked with his colleagues to identify other opportunities with other clients holding future events in this area that could possibly book at this property. He was able to identify one client in particular who had recently had negotiations with this property but was considering choosing another. The two client account representatives began working together with hotel management to find a favorable solution for both clients. It was agreed that another client’s event of equal value could be booked at this property within a determined window of time, which in turn helped reduce MGMA’s attrition liability.
The Results
Finding and securing another client’s event at this property left MGMA with only half of their initial attrition liability—a savings of $50,000. In addition, the new booking worked out in the other client’s favor—who, along with MGMA, experienced firsthand the collaborative benefits of being a Maritz client. Because of a great relationship, an eagerness to help offset MGMA’s liability, and the ability to strategically work together, what could have been devastating to MGMA turned out to be a win-win-win situation.
Finding and securing another client’s event at this property left MGMA with only half of their initial attrition liability – a savings of $50,000.
