Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Meetings, Conventions, and Expositions Chapter 12 John R. Walker Hospitality, Lodging and Food Services Operations 1

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Chapter Objectives 1. Know about the major players in the convention industry 2. Describe destination management companies 3. Describe the different aspects of being a meeting planner 4. Describe the different type of meeting 5. Know the various venues for meeting Introduction to Hospitality, 2

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Outline 1. MICE Industry and components 2. Development of the Industry 3. Size and Scope & Key Players 4. Convention and Visitors Bureaus 5. Destination Management Companies 6. Meeting Planners and Service Contractors 7. Types of Meetings, Conventions, and Expositions 8. Types of Associations and Meetings 9. Venues 10. Industry trends 3

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 4

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved MICE Industry Meetings, incentive travel, conventions, and exhibitions (MICE) Meetings, incentive travel, conventions, and exhibitions (MICE) represent a segment of the tourism industry that has grown in recent years MICEtwice MICE tourists spend about twice the amount of money that other tourists spend 5

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 6

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Meeting Meeting – is a conference, workshop, seminar or other event designed to bring people together for the purpose of exchanging information. Meetings do not include exhibits. M.I.C.E. Industry Components Incentive TravelIncentive Travel – is a travel that is given to employees as a reward for outstanding performance 8

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Convention Convention – is an event in which meetings are combined with exhibitions. Exhibition Exhibition – is an event designed to bring together providers of products, equipment and services in an environment in which they can demonstrate their products and services to a group of participants in a convention or trade show Event important occurrence Event – is anything that happens or a very important occurrence. Events can range from local, national, regional and international. Industry Components M.I.C.E. Industry Components 9

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 10

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 11

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Economic growth of the region as a whole gets a boost accommodation and air services. elaxation, shopping and sightseeing The elements of relaxation, shopping and sightseeing are usually included in MICE trips. leisure travellers Hence, most MICE travellers can be converted into leisure travellers who would spend money on sightseeing and shopping.

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved companionIt is quite common for delegates to bring along a companion. foreign exchange generated region’s economyThus, MICE tourism is a powerful revenue earner and the foreign exchange generated goes straight to the core of the region’s economy, ultimately generating income for other parts of the country. increase awarenessMICE events increase awareness of the host country, create employment and income. brand value destinationMICE tourism strengthens the brand value and profile of the country as an international tourist destination

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved transport network Efficient transport network, connections and airport arrival processes. airport Proximity of MICE facilities to airport and public transport facilities Hotels Hotels with good MICE facilities (conference and meeting rooms) Cultural attractions Cultural attractions in the city (theatres, churches, museums) Shopping sightseeingexcursions Shopping (souvenirs, fashion, local delicacies, handicrafts), sightseeing and excursions in the MICE environment.

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved The Role of M.I.C.E. in the Tourism Industry $ 300 billion $ 300 billion global MICE Market & 50 million trips 50 million trips each year worldwide for MICE purposes 15

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved The Role of M.I.C.E. in the Tourism Industry $ 300 billion Of the $ 300 billion global M.I.C.E market 280 billionMeetings and conventions account for $ 280 billion 8.5 billionIncentive travel on $ 8.5 billion severalExhibitions for several billions more 16

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved  Stable source of foreign visitors  Most resilient (flexible) sector price fluctuations seasonality- lean months  Less susceptible to price fluctuations & seasonality- increase hotel occupancies even on lean months  Quality Visitors Higher disposable income Large users of tourism facilities  Require massive manpower support  Boost retail sales in the region  Increase tax revenues M.I.C.E 17

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Global MICE Market Main Source Markets. The main source markets are the main industrial countries in Europe and North America. However, there is significant growth from emerging markets as followings. Main Markets United States Germany United Kingdom France Italy Spain Emerging Markets Brazil Russia India China

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Associations People have gathered to attend meetings, conventions, and expositions since the ancient times social, sporting, political, or religious – Mainly for social, sporting, political, or religious purposes 19

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Associations Associations Associations go back many centuries to the Middle Ages and before Middle Ages – The guilds (small professional societies) in Europe were created during the Middle Ages to secure proper wages and maintain work standards Rhode Island candle makers – Associations began in the United States at the beginning of the eighteenth century, when Rhode Island candle makers organized themselves 20

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Types of Associations association 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. association The association is generally organized to promote and enhance that common interest, activity, or purpose 21

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Types of Associations form of guilds As mentioned before, 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 22

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Association 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 23

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Size and Scope of the Industry 90,908 According to the American Society of Association Executives (ASAE) there are about 90,908 trade and professional associations. billions holding thousands attendees Associations spend billions holding thousands of meetings and conventions that attract millions of attendees American Society of Association Executives 23,000 members 6,000 associations at national level Introduction to Hospitality 24

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Size and Scope of the Industry Associationsindependent political force 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 25

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Convention Centers Professional Congress Organizers Professional Event Organizers Destination Management Companies Event Management Companies Meeting and Event Planners Tradeshows and expositions Hotels Convention and Visitor Bureaus Incentive Travel Key Players in the Industry 26

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Key Players in the Industry 27

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Key Players in the Industry convention and visitors bureaus meeting planners convention centers, specialized services exhibitions 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. not-for-profit umbrella organization – The IACVB describes a CVB as a not-for-profit umbrella organization that represents an urban area and that tries to solicit business or pleasure- seeking visitors. 28

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Key Players in the Industry Enhanceimage Enhance the image of tourism in the local/city area Market Market the area and encourage people to visit and stay longer Encourages Encourages associations and others to hold meetings, conventions, and trade shows in the area it represents Assists Assists associations and others with preparations and lends support tourists Encourages tourists to partake of the historic, cultural, and recreational opportunities the city or area has to offer 29

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Key Players in the Industry increase revenues of a city 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 FAM The sales manager will invite the meeting, convention, or exposition organizer to make a familiarization (FAM) trip for a site inspection 30

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Destination Management Companies Service organizations Service organizations within the visitor industry that offers a host of programs and services to meet clients’ needs destination management Initially, a destination management sales manager concentrates on selling the destination to meeting planners and performance improvement companies (incentive houses) 31

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Destination Management Companies workwith hotels 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. airport greetings, transportation check-inpartiessponsoring competitive sports eventsbudget 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. 32

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Meeting Planners independent contractors full-time employees of corporations 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 (ICMA), According to the International Convention Management Association (ICMA), about 212,000 full- and part-time meeting planners work in the United States. 33

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Service Contractors a trade show The individual responsible for providing all of the services needed to run the facilities for a trade show show manager meeting planner Hired by the exposition show manager or association meeting planner service contractor team The service contractor is a part of the facilities management team, and, to use the facility, the sponsor must use its service contractor. 34

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Types of Meetings Clinic Clinic: Workshop-type educational experience in which attendees learn by doing Forum Forum: An assembly for the discussion of common concerns Seminar Seminar: A lecture and a dialogue that allow participants to share experiences in a particular field Symposium Symposium: An event at which a particular subject is discussed by experts and opinions are gathered Workshop Workshop: A small group meeting led by a facilitator or trainer 35

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Types of Meetings purpose The purpose of a meeting is to affect behavior wishes of the client. Meetings are set up according to the wishes of the client. The three main types of meeting setups are: 1.Theatre style: – Large audience that does not need notes 2.Classroom setup: – Meeting setup is instructional – Workshop style 3.Boardroom setup: – Small numbers of people – Meeting takes place around one block rectangular table 36

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 37

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 38 Theatre style

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Association Meetings millions of dollars 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 39

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Conventions and Expositions Conventions are larger meetings with some form of exposition or trade show included large hotels 3-5 The majority are held in large hotels over a 3-5 day period conventions A number of associations have one or more conventions per year. large part of the budget These conventions raise a large part of the association’s budget 40

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 41

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Conventions 42

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Conventions and Expositions Expositions conventiontrade show 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 Exhibitors are an essential component of the industry because they pay to exhibit their products to the attendees. 43

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Expositions 44

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 45 Expositions

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 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 46

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 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 47

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Meeting Planning Needs analysis Budget Request for proposal Site inspection Selection Negotiation Contracts Pre-meeting activities –Plan agenda –Set budget –Negotiate contracts On-site activities Post meetings 48

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Contracts The contract is a legal document that binds two or more parties Essential elements: – Offer – Consideration – Acceptance 49

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 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. 50

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved 51

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Venues for Meetings, Conventions, and Expos City Centers Convention Centers Conference Centers Hotels and Resorts Cruise Ships Colleges and Universities 52

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Expectation of attendees when attending conventions or events a)They expect the event to be productive b)Attendees expect that they will do serious business and at the same time allow them to grow personally c)They expect the convention or event to provide high level of service. 53

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Sustainable Meetings, Conventions, and Expositions environmental stewardship, The meetings industry is becoming more responsible in its environmental stewardship, and it makes economic sense to do so. gross margins, higher return on sales return on assetsstronger cash flow 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 going green the heat, light, and power consumption Convention centers are going green by reducing the heat, light, and power consumption 54

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved Industry Trends going abroad to attend meetings More people are going abroad to attend meetings Organizations create shows in other countries Competitiveness Competitiveness has increased among all destinations Convention centers will expand and new centers will come online sophisticated— the The industry needs to be more sophisticated— the need for fiber optics is present everywhere large conventions Compared to a few years ago, large conventions are not as well attended and regional conventions have more attendees 55

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights Reserved End of Chapter Slides 56