Rob Davidson Centre for Tourism University of Westminster THE M.I.C.E. INDUSTRY AN INTRODUCTION

Rob Davidson Centre for Tourism University of Westminster THE USES OF BUSINESS EVENTS EDUCATE EDUCATE DEBATE DEBATE NEGOTIATE NEGOTIATE INITIATE INITIATE MOTIVATE MOTIVATE CELEBRATE CELEBRATE

Rob Davidson Centre for Tourism University of Westminster TYPES OF BUSINESS EVENTS Individual business travel Individual business travel Meetings Meetings Exhibitions Exhibitions Incentive travel Incentive travel Corporate hospitality Corporate hospitality … but two or more of these elements can be combined in a single event: concentives ! … but two or more of these elements can be combined in a single event: concentives !

Rob Davidson Centre for Tourism University of Westminster TERMINOLOGY M.I.C.E. ???? M.I.C.E. ???? Business tourism Business tourism Business events. Business events.

Rob Davidson Centre for Tourism University of Westminster Meetings and Conferences 1 Demand

Rob Davidson Centre for Tourism University of Westminster DEMAND FOR CONFERENCES The demand for meetings is very varied in terms of: - sizes - length - purpose But the objective is usually: - - To educate, to motivate, to provide opportunities for networking.

Rob Davidson Centre for Tourism University of Westminster CORPORATE DEMAND Dominates in terms of numbers of meetings WHY hold meetings outside company offices ? Internal meetings - - Training sessions - - Strategy meetings External meetings - - Shareholders meetings Internal AND external meetings - - Product launches

Rob Davidson Centre for Tourism University of Westminster CORPORATE DEMAND Main sectors =   Oil, gas and petrochemicals   Medical and pharmaceuticals   Computing and telecommunications   Engineering and manufacturing   Financial and professional services   Retail and wholesale distribution   Travel and transport

Rob Davidson Centre for Tourism University of Westminster ASSOCIATION DEMAND (societies, clubs, federations ….) Professional / trade associations Local / regional / national / international

Rob Davidson Centre for Tourism University of Westminster OTHER TYPES OF DEMAND Government Trade unions Hobbies Religious The S.M.E.R.F. market: Social, Military, Educational, Religious, Fraternal

Rob Davidson Centre for Tourism University of Westminster ASSOCIATION DEMAND COMPARED WITH CORPORATE DEMAND Generally larger Of longer duration Lower daily spend per delegate More likely to encourage partners to attend

Rob Davidson Centre for Tourism University of Westminster ASSOCIATION DEMAND COMPARED WITH CORPORATE DEMAND More likely to change destinations A more complex decision-making process More likely to use the bids system

SUMMER INSURANCE & REINSURANCE DAYS SOPOT. 15 – 17 JUNE 2009 Rob Davidson Centre for Tourism University of Westminster

EDEN 2009 Annual Conference: INNOVATION IN LEARNING COMMUNITIES,10-13 June 2009, Gdansk Rob Davidson Centre for Tourism University of Westminster

4-5 June 2009 GDYNIA hosted the international conference: “Always Active” – promoting a healthy lifestyle for elderly people Rob Davidson Centre for Tourism University of Westminster

THE IMPACTS OF CONFERENCES ECONOMIC IMPACTS ECONOMIC IMPACTS SOCIAL / CULTURAL IMPACTS SOCIAL / CULTURAL IMPACTS ENVIRONMENTAL IMPACTS ENVIRONMENTAL IMPACTS KNOWLEDGE TRANSFER KNOWLEDGE TRANSFER THE EXPERIENCE ECONOMY THE EXPERIENCE ECONOMY Rob Davidson Centre for Tourism University of Westminster

Rob Davidson Centre for Tourism University of Westminster ECONOMIC TRENDS A buyers’ market: over-supply of meetings venues and destinations Planners negotiating harder: to get more value for their money Economic uncertainty means shorter lead times (corporate market)

Rob Davidson Centre for Tourism University of Westminster SOCIAL TRENDS Conferences have changed from this

Rob Davidson Centre for Tourism University of Westminster to this:

Rob Davidson Centre for Tourism University of Westminster TECHNOLOGY TRENDS Use of the Internet: - - For site selection - - For destination and venue promotion - - For enhancing the conference experience Wireless everywhere: free Wi-Fi Radio Frequency Identification

Rob Davidson Centre for Tourism University of Westminster Meetings and Conferences Supply & Intermediaries

Rob Davidson Centre for Tourism University of Westminster Purpose-built conference centres

Rob Davidson Centre for Tourism University of Westminster Purpose-built conference centres ADVANTAGES ADVANTAGES Space for large events Space for large events Technology Technology Expertise Expertise Room for exhibitions Room for exhibitions DISADVANTAGES DISADVANTAGES Growing number of smaller events Growing number of smaller events

Rob Davidson Centre for Tourism University of Westminster Hotels

Rob Davidson Centre for Tourism University of Westminster Hotels ADVANTAGES ADVANTAGES Everything under one roof Everything under one roof All-inclusive quotes All-inclusive quotes Airport hotels: time- saving Airport hotels: time- saving American preference American preference DISADVANTAGES DISADVANTAGES Mixing business and leisure guests Mixing business and leisure guests Can appear too luxurious Can appear too luxurious Unsuitable for very large events Unsuitable for very large events Lack of flexibility Lack of flexibility

Rob Davidson Centre for Tourism University of Westminster Academic venues

Rob Davidson Centre for Tourism University of Westminster Academic venues ADVANTAGES ADVANTAGES Good value-for- money Good value-for- money Learning ambience Learning ambience Everything on site Everything on site Ancient/modern Ancient/modern Range of sizes of meetings rooms Range of sizes of meetings rooms DISADVANTAGES DISADVANTAGES Lack of comfort and facilities Lack of comfort and facilities Limited to vacation periods Limited to vacation periods Large sites: problems of orientation Large sites: problems of orientation

Rob Davidson Centre for Tourism University of Westminster Management training centres

Rob Davidson Centre for Tourism University of Westminster Management training centres ADVANTAGES ADVANTAGES Businesslike ambiance Businesslike ambiance Few distractions: more focussed Few distractions: more focussed DISADVANTAGES DISADVANTAGES No grading scheme No grading scheme

Rob Davidson Centre for Tourism University of Westminster Unusual venues

Rob Davidson Centre for Tourism University of Westminster Unusual venues ADVANTAGES ADVANTAGES Memorable Memorable Novelty value Novelty value Cruise ships: all-in- one price Cruise ships: all-in- one price DISADVANTAGES DISADVANTAGES Restrictions due to primary function Restrictions due to primary function Unlikely to be used several times by the same client Unlikely to be used several times by the same client

Rob Davidson Centre for Tourism University of Westminster INTERMEDIARIES

Rob Davidson Centre for Tourism University of Westminster Intermediaries working on behalf of buyers Professional conference organisers Help in defining objectives Advice on taxation liabilities Sponsorship Registration processing systems Meetings with organising committees

Rob Davidson Centre for Tourism University of Westminster Intermediaries working on behalf of buyers Venue Finding Agencies Help in identifying suitable venues Shortlist Work on commission

Rob Davidson Centre for Tourism University of Westminster Intermediaries working on behalf of buyers Destination Management Companies “A professional services company, possessing extensive local knowledge, expertise and resources, specialising in the design and implementation of events, activities, tours, transportation and programme logistics” Association of Destination Management Executives (ADME)

Rob Davidson Centre for Tourism University of Westminster DMC services Creative proposals for special events within the meeting Guest tours, pre- and post-conference tours VIP amenities and transportation Shuttle services Meet and greet Entertainment Accommodation (housing) Registration services ET CETERA

Rob Davidson Centre for Tourism University of Westminster Intermediaries working on behalf of buyers Destination Management Companies INBOUND Extensive and detailed knowledge of the destination Can be in competition with PCOs

Rob Davidson Centre for Tourism University of Westminster Intermediaries working on behalf of buyers Conference production companies For high-profile or technically-elaborate events Build the conference set AV support and special effects Writing scripts and training speakers

Rob Davidson Centre for Tourism University of Westminster.

Rob Davidson Centre for Tourism University of Westminster Destination Marketing

Rob Davidson Centre for Tourism University of Westminster Convention & Visitor Bureaux (CVBs) Intermediaries working on behalf of suppliers Exist at different geographical levels: local, regional, national … Partnerships between public sector and private sector, and funded by both

Rob Davidson Centre for Tourism University of Westminster CVB funding Public sector contributions (taxation) Private sector membership fees: The CVB must be able to demonstrate to its members a significant return on investment

Rob Davidson Centre for Tourism University of Westminster CVB services: 2 types - Marketing activities, to raise the profile of the destination Services for conference planners who choose the destination as the location for their event

Rob Davidson Centre for Tourism University of Westminster CVB marketing activities Advertising in the trade press Attending specialist exhibitions: EIBTM, IMEX, Confex Organising familiarisation trips and press trips Running ambassador programmes Producing promotional videos, CD- ROMs, brochures, leaflets …

Rob Davidson Centre for Tourism University of Westminster CVB marketing activities Running direct marketing campaigns (direct mail) Dealing with media enquiries Public relations

Rob Davidson Centre for Tourism University of Westminster Business tourism marketing and leisure tourism marketing compared Marketing activity Business tourismLeisure tourism Advertising campaigns Aimed at decision- makers: PCOs, Incentive Houses, etc Aimed at tour operators, travel agencies and consumers ExhibitionsAttended by intermediaries: corporates/associations. ‘Hosted buyers’ Attended by tour operators, travel agents and consumers Familiarisation /press trips For decision-makers (buyers) and the trade press For travel agents, the trade press and the general press

Rob Davidson Centre for Tourism University of Westminster Business tourism marketing and leisure tourism marketing compared Marketing activity Business tourismLeisure tourism Familiarisation /press trips For decision-makers and the trade press For travel agents, the trade press and the general press Ambassador programmes For university academics, prominent scientists, & members of the business community Not used

Rob Davidson Centre for Tourism University of Westminster CVB services for conference planners A ‘one-stop shop’ for the destination Impartial advice and assistance (but…) Bid documents Venue selection Accommodation booking for delegates Coordination of services (with DMC)

Rob Davidson Centre for Tourism University of Westminster CVB services for conference planners Provision of ‘welcome services’ at major points of entry Promotional and PR support to maximise delegate numbers Civic welcome/reception Provision of tourist information

© Rob Davidson + Rachel Ley Conference budgeting Effective financial planning is key to a successful conference Effective financial planning is key to a successful conference A conference planner must be able to: A conference planner must be able to:  Prepare and work to financial budgets  Operate control systems to ensure the viability of a congress  Maximise revenue and minimise cost.

© Rob Davidson + Rachel Ley Conference budgeting To understand a budget, the financial philosophy and objectives of the client organisation must be understood. To understand a budget, the financial philosophy and objectives of the client organisation must be understood. Corporate:  Conferences = a cost to the business  Objectives are business related  Costs not to exceed Budget Association:  Income to be > or = to expenditure.

© Rob Davidson + Rachel Ley Conference budgeting Establish areas for potential expenditure and sources of income Establish areas for potential expenditure and sources of income Create a monitoring framework Create a monitoring framework Set a control mechanism to maximise revenue and minimise cost Set a control mechanism to maximise revenue and minimise cost Client or planner can set and control the budget Client or planner can set and control the budget Budgetary constraints should be shared Budgetary constraints should be shared There should be no surprises! There should be no surprises!

© Rob Davidson + Rachel Ley 8. Conference budgeting Factors influencing the budget: Size and scope of the congress Size and scope of the congress History History Location Location Dates Dates Programme content and structure Programme content and structure Food and beverage Food and beverage Audio visual requirements Audio visual requirements Social programme. Social programme.

© Rob Davidson + Rachel Ley Conference budgeting Key budgeting skills Ability to use experience or intelligent ‘guesstimates’ to project costs Ability to use experience or intelligent ‘guesstimates’ to project costs Ability to secure competitive costs from suppliers Ability to secure competitive costs from suppliers Ability to conceive the ‘Big Picture’ to project contingency allowances. Ability to conceive the ‘Big Picture’ to project contingency allowances.

© Rob Davidson + Rachel Ley Conference budgeting Core elements of the budget Fixed costs = things that the congress has to have Fixed costs = things that the congress has to have Variable costs = per person cost Variable costs = per person cost Revenue : from various sources Revenue : from various sources

YOUR ASSIGNMENT The Polish Dental Society (POLSKIE TOWARZYSTWO STOMATOLOGICZNE) will hold its 2010 conference in Gdansk. You are in charge of planning the budget for this event The Polish Dental Society (POLSKIE TOWARZYSTWO STOMATOLOGICZNE) will hold its 2010 conference in Gdansk. You are in charge of planning the budget for this event What are the FIXED costs and VARIABLE costs for this conference? What are the FIXED costs and VARIABLE costs for this conference? What are the possible sources of revenue for this event ? What are the possible sources of revenue for this event ? What difficulties do you anticipate, in managing the budget for this event? What difficulties do you anticipate, in managing the budget for this event? Rob Davidson Centre for Tourism University of Westminster