© 2011, Educational Institute Chicago’s Loss is another Orlando Gain.
-
Upload
michael-owens -
Category
Documents
-
view
217 -
download
0
Transcript of © 2011, Educational Institute Chicago’s Loss is another Orlando Gain.
© 2011, Educational Institute
Chapter 4 Selling the Association Market
Convention Management and ServiceEighth 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
3
© 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.
4
© 2011, Educational Institute 5
The Meetings Market by Total Expenditures
Total Direct Spending: $122.31 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 8
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 9
What Association Meeting Planners Look For
Adequate exhibit space—Should be close to housingAttractive 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)
© 2011, Educational Institute 11
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.
12
© 2011, Educational Institute 14
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)
© 2011, Educational Institute 16
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 17
Daily Meeting Pattern of Associations
Starting Day of Meeting Percentage of Total Market
Sunday 21.1%
Thursday 17.5%
Friday 16.0%
Wednesday 15.0%
Monday 12.6%
Tuesday 9.5%
Saturday 8.3%
© 2011, Educational Institute 18
Monthly Meeting Pattern of Associations
Five months with the most conventions:1. October2. May3. April4. June5. September
Five months with highest convention attendance:1. October2. September3. March4. February5. January
© 2011, Educational Institute 19
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 20
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 22
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 23
Average Duration of Association Meetings
Duration of Meeting Percentage of Total Market
1 Day 4.4%
2 Days 16.5%
3 Days 36.2%
4 Days 22.6%
5 Days 12.8%
6 Days 4.5%
7 Days 2.0%
8 Days 1.0%
© 2011, Educational Institute 24
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 25
Association Meeting Decision-Makers
• Association director • Association president and officers• Committee chairperson• Board of directors
© 2011, Educational Institute 26
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 27
• 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 29
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 30
Committee Chair, Board of Directors,and Local Influences
Committee Chair• Sometimes gets involved in initial suggestion/screeningBoard of Directors• Usually have power of approvalLocal 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