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Why are rooms so expensive at the host hotel when there are cheaper hotels down the street?

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Why are rooms so expensive at the host hotel when there are cheaper hotels down the street?

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Room rates are negotiated with host hotels to include extras that everyone benefits from (shuttle transportation, reduced rates on food/beverage, use of meeting room space, etc.). When people stay at other hotels, they are essentially letting those who stay at the host hotel subsidize their participation at the NAI National Workshop. It is critical to fill our room block at the negotiated rate or NAI is charged substantial penalties.

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