I am too often surprised when I see a setup like this.
Why do meeting planners put up with bad decisions from venues? Certainly everyone in this meeting knows they can't see the face of the presenter, the props or award winners brought to stage.
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Why do venues continue to falsely promote room capacity specs? The answer is in why does a car dealer steer you to one particular car that does not represent what you asked for.
THAT IS ALL THEY HAVE TO SELL
Meeting planners need help to demand competitive rates from venues, on AV, video, audio and staging, along with a fair price for power, rigging and internet.