© 2011, Educational Institute Chicago’s Loss is another Orlando Gain

© 2011, Educational Institute Chapter 4 Selling the Association Market Convention Management and Service Eighth Edition (478TXT or 478CIN) Courtesy of Inverness Hotel and Conference Center

© 2011, Educational Institute Importance of the Association Market Associations fill 30 to 40 percent of the rooms annually at major hotel chains The annual association convention typically includes a trade show and generates considerable revenue for the host hotel and city (multiplier effect) Associations derive 32 percent of their annual income from conventions, exhibits, and meetings Associations receive income from convention registration fees, subleasing space to exhibitors at a profit, and by selling advertising space to exhibitors in publications and programs 2

© 2011, Educational Institute Importance of the Association Market Associations seek sponsors within the exhibitors for breaks / receptions / key cards / lanyards / other stuff The association market is the most frugal and many properties prefer to book a limited number of association meetings. Association meetings can be flexible with dates and often sales will try to book them to fill in gaps between corporate business. (Summer / Holidays) Often do not produce significant F&B revenue and this has an impact on hotel / local outlets. 3

© 2011, Educational Institute 4 The Meetings Market by Total Expenditures Total Direct Spending: $ Billion While corporations provide a larger market in total number of attendees and meetings, the spending of associations is about two times that of corporations, mostly because associations generally include a trade show as part of their conventions.

© 2011, Educational Institute 5 The Meetings Market by Number of Meetings

© 2011, Educational Institute 6 The Meetings Market by Attendance

© 2011, Educational Institute 7 What Association Meeting Planners Look For Adequate meeting space (prefer to use only one property) General sessions Breakout sessions Workshops and committee meetings Food functions Enough guestrooms (continued)

© 2011, Educational Institute 8 What Association Meeting Planners Look For Adequate exhibit space—Should be close to housing Attractive location Convenient for travel Convenient for doing other business Resort/recreation location Service Reassurance that whatever problems arise during a group’s stay, the property will be able to handle them (continued)

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10 Kinds of Association Meetings Annual Conventions Most held with trade shows or exhibits Usually include general session(s) with breakout and concurrent sessions Usually include food functions Several hotels may host them State and Regional Conventions May be sponsored either by national association or by state/regional associations (continued)

© 2011, Educational Institute Importance of the Association Market Recent Groups: American Foundry (12,000) American Locksmiths Association (5,000) US High Speed Rail (500) Florida Pre-Paid Legal (1,200) Benevolent Association of Elks (5,500) AREMA (1,200) ADA (October 2011 = 70+ Affiliates) NOTE: All produced very little banquet F&B but did have positive financial impact on outlets. 11

© 2011, Educational Institute Factors Important to State and Regional Associations 12

© 2011, Educational Institute 13 Kinds of Association Meetings Conferences Supplement the annual convention with a program on new developments Seminars/Workshops For training or continuing education Usually repeated in several locations Board and Committee Meetings Often held in premier properties to reward members (continued)

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© 2011, Educational Institute 15 Cycle and Pattern Conventions are held on a regular time cycle (annual, biennial, semiannual) Cycle often supplemented by regional conventions Usually held in Sunday–Wednesday or Thursday–Sunday pattern Most events held in September, October, or April–June

© 2011, Educational Institute 16 Daily Meeting Pattern of Associations Starting Day of MeetingPercentage of Total Market Sunday21.1% Thursday17.5% Friday16.0% Wednesday15.0% Monday12.6% Tuesday9.5% Saturday8.3%

© 2011, Educational Institute 17 Monthly Meeting Pattern of Associations Five months with the most conventions: 1.October 2.May 3.April 4.June 5.September Five months with highest convention attendance: 1.October 2.September 3.March 4.February 5.January

© 2011, Educational Institute 18 Geographic Restrictions, Lead Time, and Kinds of Sites Geographic Restrictions Groups sometimes limited to region or state by constitution Interests of program may further narrow location options Lead Time Conventions are usually planned 2 to 5 years in advance Booked yes … Planned … ?? The larger the convention, the longer the lead time (continued)

© 2011, Educational Institute 19 Geographic Restrictions, Lead Time, and Kinds of Sites Kinds of Sites Depends on group size, complexity, and tastes and members’ affluence Accessibility is important Site should have a reputation as a vacation destination (continued)

© 2011, Educational Institute 20 Courtesy of Crowne Plaza Hotels

© 2011, Educational Institute 21 Voluntary Attendance, Convention Duration, and Price Voluntary Attendance Properties can help promote the event Promoting spouse attendance means double- occupancy revenues, increased length of stay, and additional spending in the facility Convention Duration National conventions average 3 to 5 days Smaller events last 2 to 3 days Seminars and committee meetings last 1 to 2 days Auxiliary events before and after conventions When exhibits are part of convention, convention lasts at least 3 days (continued)

© 2011, Educational Institute 22 Average Duration of Association Meetings Duration of MeetingPercentage of Total Market 1 Day4.4% 2 Days16.5% 3 Days36.2% 4 Days22.6% 5 Days12.8% 6 Days4.5% 7 Days2.0% 8 Days1.0%

© 2011, Educational Institute 23 Voluntary Attendance, Convention Duration, and Price Price Guestroom rates are the planner’s main price concern; planner wants reasonable rates to attract attendees Align prices to attendee profile Past attendance is key to future selections (continued)

© 2011, Educational Institute 24 Association Meeting Decision-Makers Association director Association president and officers Committee chairperson Board of directors

© 2011, Educational Institute 25 Association Director, President, and Other Officers Association Director Screens all suggestions and solicitations Smaller associations are often serviced by association management firms Meeting professionals are often employed by larger associations Executive director is a key person for initial screening Site selection committee often appointed by executive director May hire Association Management Companies (continued)

© 2011, Educational Institute 26 Small associations often cannot afford the services of a full-time executive director Many outsource the management to a multiple-association management company These companies have the potential of bringing several convention bookings to your hotel Association Management Companies

© 2011, Educational Institute The Association Management Companies

© 2011, Educational Institute 28 Association President and Other Officers President’s power varies greatly among associations Mostly involved in the final decision Vice presidents, secretaries, and treasurers often become presidents in the future, so relationships with such officers should be carefully cultivated (continued) Association Director, President, and Other Officers

© 2011, Educational Institute 29 Committee Chair, Board of Directors, and Local Influences Committee Chair Sometimes gets involved in initial suggestion/screening Board of Directors Usually have power of approval Local Influences Local chapters often bid for national events Salespeople can appeal to local members’ civic pride Hotels often cover expenses for local delegate to present bid to national board Emphasize hotel staff’s expertise and desire to execute meeting properly

© 2011, Educational Institute 30 Time for a break…