1. Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] It’s Tourism: Concepts and Practices John Walker Business Travel: Meetings, Conventions, and Expositions Chapter 9

2. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Objectives After reading and studying this chapter, you should be able to: –Know about the major players in the convention industry –Describe destination management companies –Describe the different aspects of being a meeting planner

3. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Objectives (cont’d.) –Describe the different types of contractors –Explain the different types of meetings, conventions, and expositions –Know the various venues for meetings, conventions, and expositions

4. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Meetings, incentive travel, conventions, and exhibitions (MICE) –Segment has grown –Very profitable Average MICE tourist spends about twice the amount of money that other tourists –Existed since ancient times Development

5. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Industry itself consists of a number of associations, including: –American Hotel and Lodging Association –National Restaurant Association –American Culinary Federation –International Association of Convention and Visitors Bureaus Size and Scope

6. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] –Hotel Sales and Marketing Association International –Meeting Planners Association –Club Managers Association of America –Professional Convention Management Association Size and Scope (cont’d.)

7. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Associations are the main independent political force for industries, offering: –Governmental/political voice –Marketing avenues –Education –Member services –Networking Size and Scope (cont’d.)

8. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Key Players Figure 9–1 Major Players in the Convention Industry Source: Walker, John R., Introduction to Hospitality Management, 3rd, © 2010. Electronically reproduced with permission of Pearson Education, Inc., Upper Saddle River, New Jersey.

9. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Convention and visitors bureaus (CVB) –Major participants in meetings, conventions, and expositions market –Industry sectors: Transportation Hotels and motels Restaurants Attractions Suppliers Key Players (cont’d.)

10. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] CVB responsibilities: –Enhance image of tourism in the area –Market the area –Encourage associations and others to hold meetings, conventions, and expositions in the city –Assist associations in preparations –Encourage tourists to partake in the areas opportunities Key Players (cont’d.)

11. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Destination management company (DMC) –Service organization within visitor industry –Offers client programs and services Initially concentrates on selling the destination to meeting planners and performance improvement companies Key Players (cont’d.)

12. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Sales managers associated with DMCs obtain leads from: –Hotels –Trade shows –Convention and visitors bureaus –Cold calls –Incentive houses –Meeting planners Key Players (cont’d.)

13. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] DMC sales manager staff includes: –Special events manager –Accounts manager –Theme-events creative director –Audiovisual specialist –Operations manager Key Players (cont’d.)

14. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Meeting planners –Independent contractors Contract out services to associations and corporations as need arises –Fulltime employees of corporations or associations –Role varies from meeting to meeting Includes premeeting, on-site, and post meeting activities Key Players (cont’d.)

15. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Service contractors –Provide all of services needed to run facilities for a trade show –Must be multitalented and equipped –Hired by exposition show manager or association meeting planner –Part of the facilities management team Key Players (cont’d.)

16. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] An association is a organized body –Exhibits some variety of volunteer leadership structure –May concern a common activity or purpose Promotes and enhances it –Big spender when it comes to conventions and meetings Associations

17. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Trade associations –Generally a public relations organization –Founded and funded by corporations that operate in a specific industry –Purpose is to promote that industry through public relations (PR) activities –Largest source of post-graduate professional development Associations (cont’d.)

18. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Professional association –Professional body or organization –Usually nonprofit –Exists to further a particular profession, to protect the public interest, and interests of professionals Associations (cont’d.)

19. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Medical and scientific associations –Often based on a specific specialty –Usually national, often with subnational or regional affiliates –Offer conferences and continuing education –Serve in capacities similar to trade unions and takes public policy stances on issues Associations (cont’d.)

20. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Religious organizations –Include groups of individuals that are part of churches, mosques, synagogues, and other spiritual or religious congregations Come together to further develop their faith, become more aware of others with the same faith, organize and plan activities, recognize their leaders, raise funds, etc. Associations (cont’d.)

21. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Government organizations –Thousands in the U.S. –Made up of numerous public bodies and agencies –Can be federal, state, and local organizations Associations (cont’d.)

22. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Meetings –Conferences, workshops, seminars, or other events –Designed to bring people together to exchange information –Formats include clinic, forum, seminar, symposium, and workshop Types

23. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Main types of meeting setups: –Theater style Intended for a large audience that doesn’t need to make a lot of notes or refer to documents –Classroom setup Used when meeting format is more instructional –Participants need to take notes or refer to documents –Boardroom setups Made for small numbers of people Types (cont’d.)

24. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Annual meetings –Held every year by to inform members of previous and future activities Board meetings –Held annually and most corporations hold meetings monthly or four times a year Committee meetings –Generally held at place of business and occasionally in hotels Types (cont’d.)

25. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Seminars –Frequently held in hotels, as are workshops and technical meetings Corporate meetings, conventions, and exhibitions –Mostly held for reasons of educating, training, decision making, research, sales, team building, etc. Types (cont’d.)

26. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Social, military, educational, religious, and fraternal groups (SMERF) –Often price conscious –Majority are paid for by the individual –Flexible to ensure spending falls within the budget limits Types (cont’d.)

27. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Incentive meetings –Continues to experience rapid growth Incentive travel programs for corporate employees to reward for reaching targets –Participants must perceive the destination and the hotel as something special Types (cont’d.)

28. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Association meetings –Important factors: Destination’s availability of hotel and facilities Ease of transportation Distance from attendees Transportation costs Food and beverage costs –Attended voluntarily Types (cont’d.)

29. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Conventions –Generally larger meetings –Some form of exposition or trade show is included Expositions –Bring together sellers of products and services at a location (usually a convention center) Types (cont’d.)

30. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Types (cont’d.) Figure 9–2 Average Expenditure per Delegate per Stay by the Convention Type. The significance of these amounts is that given an attendance of several hundred to thousands of guests the economic impact quickly adds up and benefits the community in a variety of ways. Source: Walker, John R., Introduction to Hospitality Management, 3rd, © 2010. Electronically reproduced with permission of Pearson Education, Inc., Upper Saddle River, New Jersey.

31. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Types (cont’d.)

32. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Needs analysis –Determines purpose and desired outcome –Key to a productive meeting is a meeting agenda Provides framework for making meeting objectives (e.g., budget, site, facility, etc.) Meeting Planning

33. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Budget –Not a simple task –More successful if meeting planner is involved from the beginning –Knowing how much there is available to spend will help set parameters –Working budget is used as a guideline Meeting Planning (cont’d.)

34. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Request for proposal –Written request for proposal/quote Site selection –Several factors evaluated (e.g., location, service, room availability, etc.) Site inspection –Meeting planner is shown all facets of the hotel Meeting Planning (cont’d.)

35. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Negotiation with the convention center or hotel –Includes negotiating room blocks and rates –Most important interaction is normally with catering/banquet/conference department Frontline associates can make or break a meeting Meeting Planning (cont’d.)

36. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Components that make up an enforceable contract: –An offer Exactly what the offering party is willing to do, and what is expected in return –Consideration Payment exchanged for contract promise(s) –Acceptance Unconditional agreement to terms Meeting Planning (cont’d.)

37. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Contract must be made by parties who are legally able to contract –Activities specified in the contract must not be in violation of the law Contracts should include clauses on “attrition and performance” –Protects facility if organizer’s numbers drop below an acceptable level Meeting Planning (cont’d.)

38. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Organizing and preconference meetings –Average lead time for organizing a small meeting is about three to six months Larger meetings take much longer –Conference event order Includes all information necessary for set up and conference itself –Postevent meeting Held to evaluate the event Meeting Planning (cont’d.)

39. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] City centers –Convenient to reach by air and ground –Plenty of action Convention centers –Compete to host the largest exhibitions –Variety of exposition and meeting rooms –Additional revenue generated by food and beverage sales Venus

40. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Conference center –Specially designed learning environment Distraction-free –Support small to medium-sized meetings (20-50 people) Hotels and resorts –Offer a variety of locations –Many accommodate groups of various sizes Venus (cont’d.)

41. It’s Tourism: Concepts and Practices John Walker Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] Cruise ships –Provide a unique experience Many traditional challenges are still applicable –Advantages include discounts, complimentary meals, less distraction, etc. Colleges and universities –Know the nature of the target audience –Less expensive Venus (cont’d.)