1. Selling Cities & Venues Today

2. Four Themes 1.Power Shift 2.Conventions & Tradeshows 2.0 3.Convention Centers 5.0 4.Selling Cities & Venues

3. Part One: Power Shift Attendees Exhibitors Show Producers/Contractors

4. Power Shift Attendees Exhibitors Show Producers/Contractors Faster, better, cheaper information “Attendees are well informed due to information available on the Internet.” “They are further along in the buying process when they get to the show.”

5. Attendee Power Shift Site-selection: Where’s the built-in attendance base? Site-selection: Which city will draw? Attendees not staying as long Booking outside the block Confused exhibitors

6. Buyers Have Powerful Tools

7. Less control

8. Part Two: Conventions & Exhibitions 2.0

9. Show Producer Trends 5% gross revenue growth forecast Focus on cost containment Hard to launch new B2B shows Exhibitor product cycles don’t fit show schedules Empowered attendees/buyers Closer focus on site-selection How to add more value beyond the show days?

10. Challenges Consolidation on attendee and exhibitor side Growing high-quality attendance levels Competition from other show producers Competition from Web and other media Containing costs while raising experience quality; Travel and hotel costs

11. Opportunities International show launches Co-location Targeting new related market sectors E-marketing Working more closely with exhibitors/sponsors Global economy

12. Tradeshows 2.0 What’s the next version of conventions and tradeshows? Let’s look at retail: –Data-driven customization/segmentation and new store layout –More staff training –Services beyond merchandise and warranties –High end or low end

13. Either High End or Low End

14. Can you be both a price competitor and standout customer service provider?

15. How Real is Venue Management Commitment to Customer Service? Source: Tradeshow Week Venue Management Survey August 2005 Percentage of Convention Center Managers

16. Tradeshows 2.0 – The Next Version of Shows Associations continue to evolve More specialization; more segmented floor layout Enhanced data and information collection Additional services; custom event management Linkage with Web sites, i.e., eBay Live show Smaller or larger? Shorter or longer? Next version of exhibit booths?

17. More value

18. Part Three: Convention Centers 5.0

19. Annual Growth Rates Supply and Demand Growth

20. Total Convention Center Space Square Feet

21. Number of Convention Centers & Exhibit Halls 1.8% compound annual growth rate (1995-2005)

22. Average U.S. & Canadian Venue 2000 & 2005 Average Meeting Rooms 2000: 25 Average Meeting Rooms 2005: 26

23. Convention Center Size Breakout Square Feet

24. August 2004 to July 2005 Building 1.8 million square feet of exhibit space

25. In-Process New Venues and Expansions  29 new venues in-process; 41 expansions; 8.2 million square feet of exhibit space

26. Are you studying or building a new venue or expansion? Is a major competitor?

27. When Expanding or Building New Venue… What does our city’s tourism, corporate and convention brands stand for? How can new venue investments link all three of these distinct aspects of the community? What does our current venue’s brand stand for? Are the key stakeholders and decision-makers in the development process up to speed with trends in the national convention, exhibition, hotel, travel and media industry?

28. When Expanding or Building New Venue… What will the convention and meetings industry in our city and competitive set look like in ten and twenty years? How can we develop new services to become the best of class venue in our competitive set and to compete at the highest level among North American venues? Are we hoping to compete mainly by building a new facility? Are we committed to investing in marketing and new service development to compete and better service event planners, exhibitors and attendees?

29. Venue Evolution Civic Icons, Super Hotels Contemporary Convention Centers, Resort Meeting Facilities Civic Centers and Box-Like Convention Centers Fairgrounds, Coliseums, Hotels

30. Today’s State of the Art Convention Centers Market RequirementSolutions Cater to corporate clients - High-tech auditoriums - Large ballrooms with high finish - Hotel-quality food, decentralized food service - Ample number of meeting rooms Cater to local community events - Large multipurpose rooms with upscale finishes - High-tech auditoriums - Efficient transportation options Increase attendee productivity - Minimize walking distances - Ample number of meeting rooms - Wireless Internet access - Efficient transportation options, movable sidewalks - New technologies (e.g., electronic badges, kiosks) Speed tradeshow turnover rates - Ample storage areas - Portable equipment (e.g., stages, risers, lighting) - Dedicated create storage on-site - Plenty of dock space - Comfortable environmental conditions Source: Building Design & Construction

31. Remarkable 20-year transformation High-tech, high-profile, award-winning design Complex businesses -- important to communities and political structures Differentiation is gone; discounting and incentive funds increasing Facing commoditization again Venues Today

32. Tomorrow: Design for Individuals More functionality More intimate feel, less overwhelming, stark spaces Better integration, connection with city elements Board rooms; small breakout rooms Lounges – “Admirals Club” Comfortable chairs and sofas

33. Institutional

34. Quality battle

35. Part Four: Selling Cities & Venues

36. How to Respond? TrendIssueResponse Power ShiftLess controlLearn how shows market to attendees; co-market with them; focus city and venue brands to attendee experience Conventions & Tradeshows 2.0 More valueAccommodate new service offerings; partner with shows to offer more service – learn their particular industry issues Convention Centers 5.0Quality battleContinue to raise the bar; offer new services to shows, exhibitors and attendees – and the local community; design not so institutional

37. Power Shift Site selection – prove your drawing power Focus brand to attendees and exhibitors Attendance marketing: –Harness all state and local resources and expertise (from Governor’s office, to labor department, to sports teams, to universities…) –Hire marketing managers to work solely with shows –Offer marketing payments, partnering –Earlier signage… not just welcoming signs in airport but signs marketing the shows four to six weeks out

38. Convention Centers 5.0 – New Services Consulting on venue and hotel usage best practice Research Help exhibitors reach attendees Web services Entertainment Learning labs Full-time marketing staff Market to groups that launch shows

39. Show Producers with Recent Launches Advanstar Communications Inc. ASI Show, Inc. Centric Events, Inc. Clear Channel CMP Media, LLC ConvExx Conferon Expositions Cygnus Expositions Diversified Business Communications dmg world media EH Events & Education Hanley Wood Exhibitions IDG World Expo

40. JD Events Karel Exposition Management M|C Communications Macfadden-Protech McLaughlin Associates Corporation Messe Frankfurt, Inc. Motor Trend Auto Shows, Inc. National Trade Productions, Inc. Offinger Management Company Oxford Publishing, Inc. PennWell Corporation Penton Media, Inc. Pulvermedia Questex Media Group Reed Exhibitions RJ Promotions Spargo (J.) & Associates, Inc. Unicomm VNU Expositions, Inc. The Woodworking Shows Show Producers with Recent Launches

41. Sales, Marketing and Service Sensory marketing, music, etc. Higher level customer service Differentiation –Become the “attendee marketing venue” –The “customer service venue” –“They’re not a facility. They are our indispensable partner”

42. Venue Evolution Partner Civic Icons, Super Hotels Contemporary Convention Centers Resort Meeting Facilities Civic Centers and Box-Like Convention Centers Fairgrounds, Coliseums, Hotels

43. Most events, service providers and venues/hotels Winners over next decade Guest Transformations

44. Q&A

45. Associate Publisher & Director of Research Services, Tradeshow Week As head of Tradeshow Week’s Custom Research, Michael produces proprietary research, consulting and marketing projects for leading exhibition industry organizations around the world. He works closely with exhibition industry leaders, corporate exhibitors, entrepreneurs, investors and real estate developers to provide high-value strategic information, analysis and recommendations. His client’s include nearly all industry leaders in every segment of the industry as well as leaders in the investment and consulting community. Michael is frequently quoted by major newspapers and national magazines such as The Chicago Tribune; The Los Angeles Times; Newsweek; The New York Times; and The Wall Street Journal. In January of 2003, he was selected as a “Person to Watch” by min’s btob newsletter. Since 1999, Michael has been a presenter at over 40 industry conferences. He is also the research director and editor of Tradeshow Week’s syndicated Executive Outlook research surveys. Tel: (323) 965-5317 Email: mhughes@reedbusiness.com About Michael Hughes