Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e John R. Walker Meetings, Conventions, and Expositions Chapter 12 Development of the Industry • People have gathered to attend meetings, conventions, and expositions since the ancient times – Mainly for social, sporting, political, or religious purposes Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Development of the Industry • Associations go back many centuries to the Middle Ages and before – The guilds in Europe were created during the Middle Ages to secure proper wages and maintain work standards – Associations began in the United States at the beginning of the eighteenth century, when Rhode Island candle makers organized themselves Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Development of the Industry • Meetings, incentive travel, conventions, and exhibitions (MICE) represent a segment of the tourism industry that has grown in recent years • MICE tourists spend about twice the amount of money that other tourists spend Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Size and Scope of the Industry • According to the American Society of Association Executives (ASAE) there are about 90,908 trade and professional associations. • Associations spend billions holding thousands of Ameetings and conventions that attract millions of attendees Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Size and Scope of the Industry • Associations are the main independent political force for industries such as hospitality, offering the following benefits: – Governmental/political voice – Marketing avenues – Education – Member services – Networking Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Players in the Industry • The major players in the convention industry are convention and visitors bureaus (CVBs), meeting planners and their clients, the convention centers, specialized services, and exhibitions • CVB’s are major participants in the meetings, conventions, and expositions market. – The IACVB describes a CVB as a not-for-profit umbrella organization that represents an urban area and that tries to solicit business or pleasureseeking visitors. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Players in the Industry • Enhance the image of tourism in the local/city area • Market the area and encourage people to visit and stay longer • Encourages associations and others to hold meetings, conventions, and trade shows in the area it represents • Assists associations and others with preparations and lends support • Encourages tourists to partake of the historic, cultural, and recreational opportunities the city or area has to offer Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Players in the Industry • Primary outcome of the bureau is to generate and increase revenues of a city • A number of bureaus have offices or representatives in many cities or a sales team to make follow-up visits to the leads generated in trade shows • The sales manager will invite the meeting, convention, or exposition organizer to make a familiarization (FAM) trip for a site inspection Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Key Players in the Industry Convention Center Utilization Figure 12-1 Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Destination Management Companies • Service organizations within the visitor industry that offers a host of programs and services to meet clients’ needs • Initially, a destination management sales manager concentrates on selling the destination to meeting planners and performance improvement companies (incentive houses) Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Destination Management Companies • DMCs work closely with hotels; sometimes a DMC books rooms, and another time a hotel might request the DMC’s expertise on organizing theme parties. • A DMC does everything, including airport greetings, transportation to the hotel, VIP check-in, arranging theme parties, sponsoring programs, organizing competitive sports events, and so on, depending on budget. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Meeting Planners • May be independent contractors who contract out their services to both associations and corporations as the need arises or they may be full-time employees of corporations or associations • According to the International Convention Management Association (ICMA), about 212,000 full- and part-time meeting planners work in the United States. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Service Contractors • The individual responsible for providing all of the services needed to run the facilities for a trade show • Hired by the exposition show manager or association meeting planner • The service contractor is a part of the facilities management team, and, to use the facility, the sponsor must use its service contractor. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Meetings • Clinic: Workshop-type educational experience in which attendees learn by doing • Forum: An assembly for the discussion of common concerns • Seminar: A lecture and a dialogue that allow participants to share experiences in a particular field • Symposium: An event at which a particular subject is discussed by experts and opinions are gathered • Workshop: A small group led by a facilitator or trainer Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Meetings • The purpose of a meeting is to affect behavior • Meetings are set up according to the wishes of the client. The three main types of meeting setups are: • Theatre style: – Large audience that does not need notes • Classroom setup: – Meeting setup is instructional – Workshop style • Boardroom setup: – Small numbers of people – Meeting takes place around one block rectangular table Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Association Meetings • Every year there are thousands of association meetings that spend millions of dollars sponsoring many types of meetings, including regional, special interest, education, and board meetings • Things at the top of the list of places for an association meeting planner to choose from include the destination’s availability of hotel and facilities, ease of transportation, distance from attendees, transportation costs, and food and beverage Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Conventions and Expositions • Conventions are larger meetings with some form of exposition or trade show included • The majority are held in large hotels over a 3-5 day period • A number of associations have one or more conventions per year. These conventions raise a large part of the association’s budget Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Conventions and Expositions • Expositions are events that bring together sellers of products and services at a location where they can show their products and services to a group of attendees at a convention or trade show • Exhibitors are an essential component of the industry because they pay to exhibit their products to the attendees. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Associations • An association is an organized body that exhibits some variety of volunteer leadership structure, which may employ an activity or purpose that the leadership shares in common. • The association is generally organized to promote and enhance that common interest, activity, or purpose Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Associations • The Middle Ages found associations in the form of guilds, which were created to ensure proper wages were received and to maintain work standards. • Many of today's associations have their roots in ancient times: – – – – – Trade association Professional association Medical and scientific association Religious organizations Government organizations Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Types of Meetings • Annual meetings • Board, committee, seminars and workshops, professional and technical meetings • Corporate meetings, conventions, and expositions • Social, military, educational, religious, and fraternal groups (SMERF) • Incentive meetings Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Meeting Planning • Meeting planning includes not only the planning but also the successful holding of the meeting and the post-meeting evaluations • Before a meeting planner can start planning a meeting, a needs analysis is done to determine the purpose and desired outcome of a meeting Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Meeting Planning • Needs analysis • Budget • Request for proposal • Site inspection • Selection • Negotiation • Contracts Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker • Pre-meeting activities – Plan agenda – Set budget – Negotiate contracts • On-site activities • Post meetings © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Contracts • The contract is a legal document that binds two or more parties • Essential elements: – Offer – Consideration – Acceptance Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Conference Event Order • A conference event order has all the information necessary for all department employees to be able to refer to for details of: – – – – the setup (times and layout) the conference itself (arrival, meal times) what food and beverages are to be served and the cost of items so that the billing can be done. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Venues for Meetings, Conventions, and Expos • City Centers • Convention Centers • Conference Centers • Hotels and Resorts • Cruise Ships • Colleges and Universities Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Sustainable Meetings, Conventions, and Expositions • The meetings industry is becoming more responsible in its environmental stewardship, and it makes economic sense to do so. • Companies that choose to do so are reporting higher gross margins, higher return on sales, higher return on assets, and a stronger cash flow within its own organization • Convention centers are going green by reducing the heat, light, and power consumption Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved Trends • More people are going abroad to attend meetings • Some international shows do not travel very well (i.e., agricultural machinery); thus, organizations such as Bleinheim & Reed Exposition Group airlift components and create shows in other countries • Competitiveness has increased among all destinations Convention centers will expand and new centers will come online • The industry needs to be more sophisticated—the need for fiber optics is present everywhere • Compared to a few years ago, large conventions are not as well attended and regional conventions have more attendees Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved The End Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 • All Rights Reserved