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"NH was promoted to MD and PGC as a recreation destination for locals too, not only as a meeting place for out of town guests."

Bianchi, They would have been foolish to not say they are going to be a recreation destination for locals when they went for zoning approvals and tax breaks and all that good stuff. It's just good business sense for them to say all that, it makes it easier for the politicians to get voter approval for the zoning changes and the tax breaks. But all one need do is look at other National Harbor sites and it is very very obvious that their business model is to have a 'stranded convention goer' who'll have little choice but to spend their money in NH's restaurants and bars during their free time. Remember this is a convention complex. Companies book conventions there for their employees, association members, etc. and the activities and events are held right in NH's own buildings. NH probably charges "under market" for providing these facilities. And probably can easily do so considering the costs for building in PG are far far below what they would have been for building in downtown DC ... or in Old Town. THEN they overcharge the convention participants for their meals and drinks. (I'd bet if you looked, their prices are far higher than comparable restaurants and bars in DC and Old Town.) This is a very very profitable business model. Buy your inputs low, sell your outputs high, and keep your clientel isolated so that they must buy from you and now one else. Think of movie theaters. It's the same business model in regards to their concession stand. And that's why a small drink costs $4.

by Lance on Jun 9, 2009 12:08 pm • link • report