Larger AV companies having to do shows for hotels at a loss; ethical question.

Jan 14, 2011
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San Francisco, CA
This is a question about something that allegedly happens in the Pro AV world, but since my perspective is from the JV world, I thought I should post here.

I've been supervising AV production for a string of shows taking place at all-inclusive resorts in popular vacation countries closer to the equator. These shows are beyond the scope of the hotel's audio-visual department; they are serviced by a larger company that operates in many countries and is responsible for handling all of the convention-center type productions at these hotels.

On the most recent show, the project manager from this larger AV company told me that the productions I'm working on (branded, promotional events with live music) are done at no cost to the hotel in the interest of keeping a good relationship.

Could this really be happening--that a show that requires an A1, an A2, lots of stagehands and lighting guys for a whole day, a 20x12 of staging, and plenty of LED intelligent lighting--is being produced at a loss the AV company, just to keep the hotel happy? In other words, according to this one PM the hotel is saying to them, "Hey guys, we've got this small thing going on, do you think you could just take care of that real quick? Thanks, you guys are great." Something akin to the "come in on Saturday" joke in Office Space.

This was mentioned to me in the context of why, when my superiors make last minute requests for additional plasmas or things of that nature (the result of poor planning and lack of consideration for how much logistical strain a small change can make), the project managers are doing their best to hide how reluctant they are to do more than what was originally requested.

This was a significant revelation to me, not because I thought the project managers were ever being unhelpful, but because I don't know if my superiors (one of whom is the daughter of the hotel owner and and his proxy on-site) realize the circumstances in which the AV company has ended up. If they did, they might be more thorough with their planning and temper their last-minute requests somewhat. Or at least I would, because I respect the work the techs are doing. I'm not sure if I should even bring it up with my bosses.

Thanks for everyone's input in advance.
 
Re: Larger AV companies having to do shows for hotels at a loss; ethical question.

...

On the most recent show, the project manager from this larger AV company told me that the productions I'm working on (branded, promotional events with live music) are done at no cost to the hotel in the interest of keeping a good relationship.

Quite possibly the project manager was told this when asking for a pay increase or other perks.

I wouldn't worry about the change orders, as I'm not a fan of lowballers of any size. They made their deals, they can accept the corresponding responsibilities.
 
Re: Larger AV companies having to do shows for hotels at a loss; ethical question.

I'm unsure how you weren't aware of this happening. Keep in mind that there are always 40 starving AV companies looking to snatch the contract out from under your feet the second that you say "no" to any of the Hotel's money losing requests. The world of rental AV is based on incredibly slim operating margins with the promise that one day in the "future" you can actually make some money. The reality is that an AV rental company lives by borrowing against the future by losing money every day they are in business in hopes that there will one day be a big payoff. You have just had a glimpse into the everyday workings (or losings) of a corporate AV rental company. Get used to it.