Download - MARKETING STRATEGIES AND TACTICS MARKETING STR S ….… · marketing strategies and tactics strategies and tactics exhibi exhibi tion planning tion sales oper at ions housing and

EXHIBITION PLANNINGV

ENU

E FA

CIL

ITY

CO

NS

IDER

ATIO

NS

EXH

IBIT

ION

MA

RK

ETIN

G

EXHIBITION SALES AND OPERATIONS

CONTRACTED SERVICES

CO

NS

IDER

ATIO

NS

CONSIDERATIONS

BU

DG

ET M

AN

AG

EMEN

T

FINANCIAL MANAGEMENT STRATEGIESEDUCATION ON THE EXHIBITION FLOOR

FACILITIES

FACILITIES

FAC

ILIT

IES

FACILITIESSHIPPING

GEN

ERA

L M

AR

KET

ING

PR

AC

TIC

ES

MARKETING STRATEGIES AND TACTICSS

PO

NS

OR

SH

IP A

ND

PR

OM

OTI

ON

AL

OP

PO

RTU

NIT

ES

BOOTH STAND SALESHOUSING AND REGISTRATION

ON

SIT

E O

PER

ATIO

NS

OFF

ICIA

L A

ND

SP

ECIA

LTY

SER

VIC

E C

ON

TRA

CTO

RS

EXHIBITION TECHNOLOGY

AU

DIO

VIS

UA

L S

YS

TEM

S O

N T

HE

EXH

IBIT

ION

FLO

OR

FOO

D A

ND

BEV

ERA

GE

SHIPPING EXHIBITION MATERIALS

TRANSPORTATION

HO

TEL

AN

D V

ENU

E C

ON

TRA

CTS CRISIS MANAGEMENT

BU

DG

ETM

AN

AG

EMEN

T

BU

DG

ET M

AN

AG

EMEN

T

MARKETING STRATEGIES AND TACTICS

STRATEGIES AND TACTICS

EXHIBITION PLANNINGEXH

IBIT

ION

SA

LES

OP

ERAT

ION

S

HOUSING AND REGISTRATIONFACILITIES

CO

NS

IDER

ATIO

NS FOOD AND BEVERAGE

EXH

IBIT

ION

SA

LES

AN

D O

PER

ATIO

NS

FINANCIAL MANAGEMENT STRATEGIES

TRANSPORTATION

EDU

CAT

ION

ON

TH

E EX

HIB

ITIO

N F

LOO

R



HOUSING AND REGISTRATION

FACILITIES

FACILITIES

STRATEGIES


VENUE FACILITY CONSIDERATIONS

EXHIBITION PLANNING

VEN

UE

FAC

ILIT

Y C

ON

SID

ERAT

ION

S

EXHIBITION PLANNING

CRISIS MANAGEMENT


VENUE FACILITY CONSIDERATIONSVENUES

VENUES

ON

SIT

E O

PER

ATIO

NS

ON

SIT

E O

PER

ATIO

NS

VEN

UES

VEN

UES

FACILITIES

EXH

IBIT

ION

S

EXHIBITIONS

EXHIBITIONS

EXH

IBIT

ION

S

FOOD AND BEVERAGE

FOOD AND BEVERAGE

MANAGEMENT

MANAGEMENT

MANAGEMENT

MANAGEMENTSHIPPING EXHIBITION MATERIALS

TRANSPORTATION

TRANSPORTATION

TRANSPORTATION TRANSPORTATION

ONSITE OPERATIONSO N S I T E O P E R A T I O N S

EXHIBITIONSFOOD AND BEVERAGE

FACILITIES

SHOW FLOOR

SHOW FLOOR

PLANNING

PLANNING

PLANNING

AUDIOVISUAL SYSTEMS

AUDIOVISUAL SYSTEMS

AUDIOVISUAL SYSTEMS

SHOW FLOOR

FLOORSHOW

STR

ATEG

IES

STRATEGIES

STR

ATEG

IES

STR

ATEG

IES

STRATEGIES

STRATEGIES


Lead EditorsJanet Sperstad, CMPAmanda Cecil, PhD, CMP

InternationalAssociation ofExhibitions and EventsTMEXHHIIBBIITTIION PLANNING

VEN

UE

FAC

ILIT

Y C

ON

SID

ERAT

ION

S

EXH

IBIT

ION

MA

RK

ETTIN

G


CCONTRACTTEED SERVICESB

UD

GEETT

MA

NNAA

GGEEMM

EENNTT

FINANCIAL MANAGEMENT STRATEGIESEDUCATION ON TTHE EXHIBITION FLOOR

TIN

G P

RAA

CTI

CES

MARKETING STRN

AL

OP

PO

RTU

NIT

ES

BOOTHH STAND SALESHOUSING AND REGISTRATIOON

ON

SSIIT

E O

PER

ATIO

NS

RV

ICE

CO

NTR

AC

TOR

S

EXHIBITION

HE

EXH

IBITT

ION

FLO

OR

SHIPPING EXHIBITION MATERIALLSS

TRANSPORTATIONNCRISIS MANAGEMENT

GEM

ENT



EXHIBITIOONN PPLLAANNNNIINNGEXH

IBIT

ION

SA

LES

OP

ERATT

IION

S

HOUSSING AND REGISTRATIONFACILLITIES FOOD AND BEVERAGEE

EXH

IBIT

ION

SA

LES

AN

D O

PER

ATIO

NS

IBIT

ION

FLOO

OORR

EXHIBITIONN SSAALLEESS AANNDD OOPERATTIIOONNSS

HHOUSING AND REGISTRATION

STRATEGIESSEXHIBITION PLANNINNGG

ON

SID

ERAT

ION

S

CRISIS MANAGEMENT

VENUE FACILITY CONSIDERATIONSAT

ION

S

ON

SIT

E O

PER

ATIO

N

EXHIBITIONS

BIT

ION

S

TRANSPORTATION


PLANNING

AUDIOVISUAL SYSTEMS

AUDIOVISUAL SYSTEMS

S

SHOW FLOOR

STR

ATEG

IES

STRATEGIES

S S

SSTTRRATEGIES

STRATEGIES


Le EdBI

BI

InternationalAssociation ofExhibitions and EventsTM

ARTSHOWOF THE

THE

EditorsCathy Breden, CMP, CAEMarsha L. Flanagan, M.Ed.

5TH EDITION

AN INTRODUCTION TO THE STUDY OF EXHIBITION MANAGEMENT

®

The Art of the Show An Introduction to Exhibition Management, Fifth Edition. Copyright © 2019 International Association of Exhibitions and Events. All Rights Reserved.

International Association of Exhibitions and Events®

12700 Park Central Drive, Suite 308Dallas, Texas 75251 USA+1 (972) 458-8002 • www.iaee.com

Amanda Cecil, PhD, CMPProfessor Indiana University – Purdue University Indianapolis

Janet Sperstad, CMPProgram Director, Meeting and Event ManagementMadison Area Technical College

Lead Editors

Cathy Breden, CMP, CAEExecutive Vice President and Chief Operating OfficerInternational Association of Exhibitions and Events (IAEE)Chief Executive OfficerCenter for Exhibition Industry Research (CEIR)

Marsha L. Flanagan, M.Ed.Vice President of Learning ExperiencesInternational Association of Exhibitions and Events (IAEE)

Editors


This book is printed on acid-free paper and contains 10% post-consumer recycled content as defined by the Sustainable Forestry Institute (SFI).

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior permission of the publisher. Requests for permission should be directed to the Administration Department of the International Association of Exhibitions and Events®, +1 (972) 458-8002 or 12700 Park Central Drive, Suite 308, Dallas, TX 75251 USA.

All rights reserved.

Copyright 2019 International Association of Exhibitions and Events®

Copyright 1997, 2001, 2006, 2013 International Association of Exhibition Management™ (IAEM),an imprint of IAEM Services, Inc.

Cover Design: Thomas Creative Solutions

Cover photo credits from left to right:Oscar Einzig & Associates, Expo! Expo! IAEE’s Annual Meeting & Exhibition 20182018 bauma CONEXPO INDIAWorld of Concrete 2019, Informa ExhibitionsINTERMODAL 2018, UBM Brazil

Library of Congress Cataloging-in-Publication Data

Names: Cecil, Amanda, lead editor. | Sperstad, Janet, lead editor. | Breden, Cathy, editor. | Flanagan, Marsha, editor.

Title: The Art of the Show An Introduction to the Study of Exhibition Management Fifth Edition.

Description: International Association of Exhibitions and Events, 2019 | Summary: The Art of the Show, an Introduction to the Study of Exhibition Management textbook, explores the world of exhibitions and events. The fifth edition focuses on the requirements for planning and holding a successful exhibition, both business-to-business and business-to-consumer events; what must be done leading up to the exhibition, during the exhibition and post-event, to create a marketplace for buyers and sellers that fosters engagement and offers a synergistic environment. Written by a broad spectrum of industry experts, this body of knowledge is a standard resource in university and college classrooms around the globe and provides an up-to-date resource for the experienced professional. | Includes bibliographical references and index.

Identifiers: ISBN 97809895833 | LCCN 2019936968 (print)

Subjects: Exhibition management. | Event management.

LC record available at https://lccn.loc.gov/2019936968

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1


i

TABLE OF CONTENTS

FOREWORD ...............................................................................................................................................................iii

PREFACE ....................................................................................................................................................................iv

ACKNOWLEDGEMENTS .............................................................................................................................................vii

ABOUT THE EDITORS .................................................................................................................................................ix

LIST OF FIGURES ......................................................................................................................................................xii

LIST OF TABLES ....................................................................................................................................................... xvi

SECTION 1: INTRODUCTION .................................................................................................................................... 19

CHAPTER 1 – Industry History & Overview ........................................................................................................ 21

CHAPTER 2 – Exhibitions Defined ...................................................................................................................... 47

CHAPTER 3 – Careers in the Exhibitions and Events Industry ............................................................................. 57

SECTION 2: EXHIBITION PLANNING ........................................................................................................................ 65

CHAPTER 4 – Strategic Enterprise Management: Process and Outcomes .......................................................... 67

CHAPTER 5 – Project Management: Managing Successful Exhibitions ............................................................... 81

CHAPTER 6 – Budget Management ................................................................................................................... 95

CHAPTER 7 – Financial Management Strategies .............................................................................................. 117

CHAPTER 8 – Learning Experiences on the Exhibition Floor ............................................................................. 129

CHAPTER 9 – Sustainability ............................................................................................................................. 139

CHAPTER 10 – Evaluation ............................................................................................................................... 145

SECTION 3: VENUE/FACILITY CONSIDERATIONS .................................................................................................. 157

CHAPTER 11 – Request for Proposal ............................................................................................................... 159

CHAPTER 12 – Destination Marketing Organizations ....................................................................................... 175

CHAPTER 13 – Facilities .................................................................................................................................. 191

CHAPTER 14 – Site Selection .......................................................................................................................... 203

CHAPTER 15 – Developing Floor Plans ............................................................................................................ 223

SECTION 4: EXHIBITION MARKETING ................................................................................................................... 239

CHAPTER 16 – General Marketing Practices .................................................................................................... 241

CHAPTER 17 – Marketing Strategies and Tactics ............................................................................................. 259

CHAPTER 18 – Sponsorship and Promotional Opportunities ............................................................................. 273

CHAPTER 19 – Booth/Stand Sales ................................................................................................................... 283


ii

SECTION 5: EXHIBITION OPERATIONS .................................................................................................................. 297

CHAPTER 20 – Housing and Registration ......................................................................................................... 299

CHAPTER 21 – On-site Operations .................................................................................................................. 313

CHAPTER 22 – Official and Specialty Service Contractors ................................................................................ 325

CHAPTER 23 – Exhibition Technology .............................................................................................................. 345

CHAPTER 24 – Audiovisual Systems on the Exhibition Floor............................................................................. 361

CHAPTER 25 – Food and Beverage .................................................................................................................. 371

CHAPTER 26 – Shipping Exhibition Materials ................................................................................................... 383

CHAPTER 27 – Transportation ......................................................................................................................... 399

SECTION 6: LEGAL, RISK, SAFETY AND CRISIS MANAGEMENT ........................................................................... 413

CHAPTER 28 – Basics of Hotel and Venue Contracts ........................................................................................ 415

CHAPTER 29 – Exhibition Insurance ................................................................................................................ 439

CHAPTER 30 – Exhibition Security, Risk and Crisis Management ..................................................................... 453

CHAPTER 31 – Business Ethics ....................................................................................................................... 471

GLOSSARY ............................................................................................................................................................. 479

WORKS CITED ........................................................................................................................................................ 519

INDEX .................................................................................................................................................................... 527

TABLE OF CONTENTS


iii

FOREWORD

Since the release of the first edition of The Art of the Show, an Introduction to the Study of Exhibition Management in 1997, the profession of exhibition management has changed dramatically. Three factors driving this change include: rapidly changing and accessible technology, globalization, and major changes in the workforce.

Advancements in technology have created great opportunities for organizers, exhibitors, facilities, contractors and other stakeholders. We are now able to engage with our audiences in ways that were not possible just six years ago when the fourth edition of this textbook was published. Artificial Intelligence, among other technologies, is now beginning to impact how information is consumed. The constant information exchange and immediacy of technology and social media have created unique challenges and opportunities to promoters and organizers of exhibitions and events.

Concurrently, we live in a truly global marketplace. With the rise of emerging economies in Asia and South America, international trade has a significant impact on trade shows. Exhibitors participate in global exhibitions to sell their products and services in overseas markets, and attendees from around the world visit trade events to purchase those products.

Many seasoned exhibition management professionals will be retiring in the near future, and an influx of young professionals is entering the workforce. The new workforce comes with a different set of skills and expectations for work-life balance. As the association representing the exhibitions and events industry, it is critical that the International Association of Exhibitions and Events provides the tools and knowledge for new generations so they can be successful in exhibitions and events management, and commit to a long-term career in the business.

Launched in 1928 as the National Association of Exposition Managers, the International Association of Exhibitions and Events (IAEE) has focused on a mission to provide its constituency with time-critical education, advocacy efforts and resources. Exhibition organizers, exhibiting companies, facilities, destinations, and contractors rely upon IAEE for guidance to effectively position their exhibitions and brands. This consistent support has assisted the membership in performing and excelling in the ever-changing business environment.

From its initial publication, The Art of the Show has explored the world of exhibitions and events. The fifth edition focuses on the requirements for planning and holding a successful exhibition – what must be done leading up to the exhibition, during the exhibition and post-event, to create a marketplace for buyers and sellers that fosters engagement and offers a synergistic environment.

Written by a broad spectrum of industry experts, this body of knowledge is a standard resource in university and college classrooms around the globe and provides an up-to-date resource for the experienced professional. IAEE is proud to publish the fifth edition of The Art of the Show, an Introduction to the Study of Exhibition Management. Our goal is to give you, the reader and learner, a leading edge in understanding the value and importance of the exhibitions and events industry, as well as the knowledge of how a successful exhibition is produced.

Kind regards,

Daniel McKinnon, CEMExecutive Vice President, Exhibitions and EventsMaterial Handling Industry2018 Chairperson, Board of Directors IAEE

Ryan Strowger, CEMChief Events and Industry OfficerThe Optical Society2017 Chairperson, Board of Directors IAEE

Julia W. Smith, CEM, CTASenior Vice President, Exhibition SalesGES2016 Chairperson, Board of Directors IAEE


iv

The first edition of The Art of the Show was published in 1997 as a foundation for the professional-in-training who was about to enter the world of exhibitions and events. It provided students with essential practical knowledge grounded in theoretical concepts and best practices. Twenty-one years later, the fifth edition has a greater emphasis on foundational theory and 21st century best practices. In addition, special emphasis is paid to the globalization of the industry, safety and security, ethical considerations, and the importance of sustainability initiatives.

This publication is a compilation of the experiential knowledge of more than 50 experts in the field. Each of the 31 chapters is the creation of a seasoned professional (or experts writing and editing collaboratively) with extensive experience in a particular area of exhibition planning and management. We believe this multiple authorship is invaluable, for it provides the reader with various points of view and a range of voices, from scholars and practitioners with both global and national expertise. With a few exceptions, the authors are new to this edition and the content has been rewritten and updated to include essential topics extending from the initial development of a concept for an exhibition to the ongoing and evolving exhibition over time.

Scope of Content

Intended to be comprehensive, this textbook will function as a core resource for those educators and their students who anticipate a career in this dynamic and expanding field. Its inclusive length suggests the highly complex, layered, and interwoven nature of this field of study and practice, covering the pragmatic and the esoteric, with each chapter providing management principles as well as relevant actual examples or case studies.

While many exhibitions are held as stand-alone trade shows or consumer shows, many are held in conjunction with or as a part of a larger event, such as a convention or congress. Regardless, the process and logistics of managing an exhibition, whatever its context, remain relatively similar. Each exhibition and event has specific needs for the attendee and exhibitor. Maintaining a history of previous exhibitions and events is the best way to minimize errors and correct ideas that were tried and may not have had worked so well. In addition, even while encouraging the exhibition organizer relying on the known and the familiar, this textbook recognizes that it is important for exhibition organizers to take risks and to consider novel and innovative approaches in their continuous effort to infuse the exhibition with creativity.

Overview of Chapter Format

This edition has been organized into six sections with 31 chapters arranged to explore in depth and expand knowledge in specific areas. Each chapter is organized in the following order.

Title – a clear representation of the chapter content as related to exhibitions.

Quote – a philosophical thought relevant to the chapter content.

Introduction – a brief synopsis or overview introducing chapter content.

Learner Outcomes – statements outlining what you, the student, should be able to do or achieve after thoughtfully reading and studying the chapter.

Body of Knowledge – content relevant to the topic combined with examples that enhance learning and application.

Summary – concluding statements that bring closure to the topic.

Key Words – words or phrases are key concepts of chapter content, identified in boldface type.

Discussion Questions – questions/statements to enhance discussion within the classroom setting or guide the reader in further exploration of the topic.

PREFACE


v

PREFACE

Glossary of Terms – alphabetical listing of keywords and definitions, including Events Industry Glossary references.

Works Cited – references cited within the chapters compiled by chapter and located on pages 519-526.

Index – a reference for the reader to locate the topic or concept needed during study by page number(s) listed, using key words.

Challenges in Writing

The highly contemporary, ever-changing nature of the exhibitions and events industry makes it a challenge to stay abreast not simply of current applied technology, but of the profession’s fluid, international character.

In addition, a major challenge has been to standardize the terminology used in the profession, being ever cognizant that professionals in the everyday work environment may use terms interchangeably or attach meanings that may differ from organization to organization and country to country.

For ease of reading by a worldwide audience and the subsequent translations, a decision was made to use the United States currency as the standard in calculating monetary aspects in fiscal planning as well as the “foot” unit as the standard measure for dimensions.

The Events Industry Council Industry Insights initiative has become the global clearinghouse for standardizing industry terminology. While Industry Insights and the Events Industry Glossary is a work in progress, to the extent possible, global terminology of the exhibitions and events industry has been incorporated.

For the most part, in this edition we have grouped the terms “events” and “exhibitions.” Although distinct, they often overlap. Within the context of an event, an exhibition may be a stand-alone consumer show or trade show, or it may be held in conjunction with a large and more comprehensive event such as a convention, congress, conference or meeting. The Events Industry Council defines “event” as “an organized occasion such as a meeting, convention, exhibition, special event, gala dinner, etc. An event is often composed of several different yet related functions” (Events Industry Glossary). The term “exhibition” is defined as “an event at which products, services or promotional materials are displayed to attendees visiting exhibits on the show floor. These events focus primarily on business-to-business (B2B) relationships” (Events Industry Glossary).

Another significant change in terminology has been the use of “exhibition organizer” which is defined to mean “a company or a person who owns, organizes, produces, or manages an exhibition” (Events Industry Glossary). Under the auspices of the exhibition organizer, there are several job titles that can be delineated to better describe functionality. Depending on the size of the exhibition, some job titles more exactly define actual performance of the tasks involved in planning and executing an exhibition, such as exhibition manager, trade show manager, or floor manager. These highly specific job titles have been eliminated from the textbook to allow the reader latitude in developing the organizational structure specific to the needs of a particular exhibition.

The Professional Audience

The International Association of Exhibitions and Events® (IAEE) and the Center for Exhibition Industry Research® (CEIR), the standard bearers in this field, have contributed a vast array of invaluable resources for this textbook. By producing and delivering research-based information, they have significantly advanced the growth, awareness, and value of exhibitions and other face-to-face marketing events.

In addition to the textbook being a primary resource for the industry at the college level, the Certified in Exhibition Management™ (CEM) professional designation also uses this publication to build a foundation of broad technical


vi

knowledge and demonstrated industry experience to support the working professional. This detailed treatment can help the professional meet the changes and challenges of a demanding industry with confidence and professionalism.

Moreover, for the educator, adopting the textbook provides access to the Faculty Resource Center (FRC), an online compilation of additional educational resources for use in the classroom or in the online environment for students. No teacher merely assigns pages for reading; instead, the instructor prepares to engage the students with the information covered in the textbook, rendering it meaningful and relevant. To this end, the FRC offers test questions, exercises, additional readings, IAEE and CEIR resources, forms, models, and even an opportunity to communicate online with colleagues.

PREFACE


vii

ACKNOWLEDGEMENTS

The fifth edition of The Art of the Show: An Introduction to the Study of Exhibition Management represents the collaboration of a multiplicity of expertise and talent from exhibition industry experts. The industry has significantly changed since the first four editions. Many people influenced and inspired the efforts of authors and contributors in previous editions. The imprint of these individuals on the 5th edition is visibly present, although seemingly invisible. IAEE takes pride in celebrating those who have previously contributed to the body of knowledge that has stood the test of time.

However, as the industry changes, the body of knowledge changes in order to support and educate future professionals. Probably the two most dominate changes for the exhibition organizer continue to be globalization and technology. The following list of individuals has freely given of their time and talent to write or revise content to be most valuable to current faculty and students. A special thanks is extended to these professionals:

• Corbin Ball, CSP, CMP, MS

• Carina Bauer

• Randy Bauler, CEM

• Susan L. Bennett, CEM, CASE

• Doreen Biela, CEM

• Amy Blanchard

• MaryAnne Bobrow, CAE, CMP, CMM, CHE

• Nicole Bowman, MBA

• Cathy Breden, CMP, CAE

• Susan E. Brower, CMM, CCP

• Chris Brown

• Jack Buttine

• Denise Capella, CEM

• Gia Carunchio, CEM

• Anthony Caterina, CHE

• Amanda Cecil, PhD, CMP

• Jannat Choudhury

• Tom Cindric, CEM

• Jonathan “Skip” Cox

• Scott Craighead, CEM

• David DuBois, CMP, CAE, FASAE, CTA

• Douglas L. Ducate, CEM, CMP

• Jeff Ducate

• Barbara Dunn O’Neal, Esq.

• Al Dyess, CEM

• Marsha L. Flanagan, M.Ed.

• John Galante

• Karen M. Gonzales, CMP

• David Grindle

• Steven Hacker, CEM, CAE, FASAE

• Mark Haley

• Alynne Hanford

• Mark Herrera

• Cynthia Herring

• Jennifer Hoff, CEM

• Carol Ingersoll

• Peggy Johnston

• Jim Kelty

• Mike Kovac

• Bruce Lemmon, CEM

• Angela Marini, PMP

• Charlotte Martins, MBA, BA, Dip IPR

• Jason McGraw, CTS, CAE

• Daniel McKinnon, CEM

• Nancy Milani, CEM, CMP

• B. Murphy, CEM

• Charlotte Pearson, CEM

• Terri Phillips, CEM

• Frank Poe

• Jennifer Potter

• Glen C. Ramsborg, PhD, CMP

• Kathy Rasmussen, CMP

• Leslie Rauscher, CMP

• B.J. Reed, PhD, CMP

• David Saef, CTSM

• Donna Sanford


viii

ACKNOWLEDGEMENTS

• Susan L. Schwartz, CEM

• Wes Scott, PhD

• Stephanie Selesnick, CEM

• Shay Sibley

• Dennis Smith

• Julia W. Smith, CEM, CTA

• Janet Sperstad, CMP

• Scott Stanton, MBA, CEM, CAE

• Richard Stone

• Mary Tucker

• Nancy Zavada, CMP


ix

ABOUT THE EDITORS

Cathy Breden, CMP, CAEExecutive Vice President and Chief Operating OfficerInternational Association of Exhibitions and EventsChief Executive OfficerCenter for Exhibition Industry Research

In her role as EVP/COO, Cathy Breden oversees marketing and communications, conventions and events, membership, education, and administration of the association.

In addition, she currently serves as CEO of the Center for Exhibition Industry Research (CEIR) whose primary purpose is to promote the growth, awareness and value of exhibitions

and other face-to-face marketing events by producing and delivering research-based knowledge tools. In her role at CEIR, Breden provides strategic direction and manages the day-to-day activities and business operations. CEIR houses an online library of primary, exhibition-related research studies to help exhibition stakeholders with evolving norms, shifting marketing trends, and other issues that can have an impact on the channel itself or how to use it effectively in light of trends. Report topics include digital/technology, attendee/exhibitor engagement, attendee acquisition and retention, generational workforce shifts, economic performance and impact, and exhibitor studies evaluating motivations for use of the exhibition marketing channel. She has been working with CEIR since 2006.

She is a frequent presenter on the areas of exhibition industry trends and the power of exhibitions in face-to-face marketing. She began her association management career in 1984 and currently serves on the Events Industry Council Board of Directors. Breden earned the Certified Meeting Professional (CMP) designation in 1990 and the coveted Certified Association Executive (CAE) designation in 1995. She is a graduate of Florida State University, Tallahassee, Florida, USA.

Amanda Cecil, PhD, CMPProfessor Indiana University – Purdue University Indianapolis

Dr. Amanda Cecil is in her 18th year on the Indiana University’s Tourism, Event and Sport Management faculty. As a Professor, she teaches several courses in event management and international tourism. Dr. Cecil’s professional career started in association and corporate event planning prior to joining the IU faculty. She also spent time working in areas, including business travel, exhibition management, customer service, destination marketing, collegiate sport management, and convention and special events planning.

Her research interest involves linking business travel and tourism trends to the convention/meeting market.

Additionally, Dr. Cecil has scholarly interests in the development of competency-based curriculum models and the impact of experiential learning, specifically service learning pedagogies. She has consulting experience in instructional design for educational programs in customer service, business travel management, strategic meeting management, sports travel management, and event management.

Dr. Cecil has published in many tourism journals, including The Journal of Convention and Event Tourism, The Journal of Teaching in Travel & Tourism, The Journal of Sustainable Development, The European Journal of Tourism Research, and Tourism Today. Additionally, she serves as managing editor for the Journal of Convention & Event Tourism. She is actively involved in Global Business Travel Association (GBTA), Meeting Professionals International (MPI), Professional Convention Management Association (PCMA), International Association of Exhibitions and Events (IAEE), and the Council on Hotel, Restaurant and Institutional Education (CHRIE).


x

ABOUT THE EDITORS

Her industry involvement includes 2017 Chair of the IAEE Faculty Task Force, 2007-2008 President of the Indiana Chapter of MPI, the chair of the 2009-2010 MPI Body of Knowledge Task Force, and the 2008 chair of the Professional Convention Management Association’s (PCMA) Research Task Force. Dr. Cecil has been awarded the 2012 PCMA Foundation’s Educator Honoree, 2012 “Member of the Year” RISE Award from MPI, 2011 Indiana Trustees’ Teaching Award, 2010 MPI Chairwoman’s Award for her leadership in developing the Meeting and Business Event Competency Standard (MBECS), the 2010 MPI Indiana Chapter President’s Award, the 2006 PCMA “Educator of the Year,” and was named to the Indiana Chapter of MPI’s Hall of Fame in 2008.

Marsha L. Flanagan, M.Ed.Vice President of Learning ExperiencesInternational Association of Exhibitions and Events

Marsha Flanagan is currently the Vice President of Learning Experiences at the International Association for Exhibitions and Events (IAEE), where she is responsible for all educational initiatives and CEM learning programs in the U.S., Canada, China, India, Thailand, Korea, Mexico, Portugal, Singapore, Spain, Saudi Arabia, UAE, and Taiwan. She works with various committees, executive leadership and boards to identify member needs, to design and execute learning experiences. She also oversees all membership activities for the organization.

Flanagan began her career with Meeting Professionals International (MPI) and spent 12 years in various roles including Executive Vice President of Professional Development where she oversaw operations, including all strategic partnerships, the design and delivery of all professional development offerings, and meetings management.

She was named one of the “25 Most Influential People in the Meetings Industry” by Successful Meetings in 2017 and recognized by BizBash as one the of the “Top 500 People in Events” in 2018. She serves as co-chair on the Events Industry Council Career Landscape task force and co-chair of the Richland College HEEM (Hospitality, Exhibition and Event Management) curriculum committee.

Flanagan received her bachelor’s degree from Texas Christian University and her Master in Education from the University of Arkansas specializing in Meeting, Tourism and Recreation Management.


xi

Janet Sperstad, CMPProgram Director, Meeting and Event ManagementMadison Area Technical College

Janet Sperstad’s professional history reflects her lifelong vocation: driving excellence in meeting and event management execution and education. She has dedicated her career to defining the competencies and career pathways that articulate meeting planning as a design discipline separate and distinct from hospitality – requiring skills in the social sciences, executive leadership, and the cognitive sciences.

Her contributions are global in scope and rooted in over 25 years as a meeting professional and executive leader in the corporate and non-profit sectors. Sperstad has been employed by a Fortune 500 global company, a statewide association, and has owned a professional event management firm.

She currently leads Madison Area Technical College’s Meeting and Event Management Associate degree program, which she founded in 2002. This award-winning program is recognized for its stringent requirements that faculty demonstrate direct meeting planning experience and credentials; the program currently offers the highest number of meeting and event management credits in the United States and has served as a model for other programs at colleges and universities in North America and Europe.

ABOUT THE EDITORS


xii

LIST OF FIGURES

Figure 1.1. Exposition of Univerelle in Paris 23

Figure 1.2. Automobiles Show Program Cover 24

Figure 1.3. Cincinnati Industrial Exposition 26

Figure 1.4. Mid-late 30’s Cincinnati Auto Show 27

Figure 1.5. The Exposition: Technology’s Showplace 27

Figure 1.6. Emerging Technologies 28

Figure 1.7. The Exhibition: A History Lesson in Marketing 29

Figure 1.8. Expositions: An Ever-evolving Industry 30

Figure 1.9. Signs of the Times 31

Figure 1.10. Expositions: Change Agents Through Innovation 32

Figure 1.11. Modular Displays 33

Figure 1.12. Expositions: Then and Now 34

Figure 1.13. The 1990s Exposition 35

Figure 1.14. Turkey Pavilion at Automechanika Johannesburg 42

Figure 2.1. CEIR Index Report, 2017 Data 49

Figure 2.2. Super Pet Expo, Edison, N.J. 50

Figure 2.3. 2017 Fort Lauderdale Boat Show 51

Figure 2.4. Association of Equipment Manufacturers (AEM) CONEXPO-CON/AGG 2014 54

Figure 4.1. Various Enterprise Plans 69

Figure 4.2. Various Management Plans in Business 69

Figure 4.3. Vision Model for Strategic Planning 70

Figure 4.4. Issues Model for Strategic Planning 70

Figure 4.5. Alignment Model for Strategic Planning 71

Figure 4.6. Scenario Model for Strategic Planning 71

Figure 5.1. SMART Objective 83

Figure 5.2. Project Management Template 84

Figure 6.1. Three Perspectives of Budgeting Philosophy 97

Figure 6.2. Sources of Budgeting Information 99

Figure 6.3. Typical Exhibition Expense Categories 101


xiii

LIST OF FIGURES

Figure 6.4. Typical Exhibition Revenue Items 101

Figure 6.5. Calculating the Registration Fee – Number of Attendees Known 106

Figure 6.6. Calculating the Registration Fee – Registration Fee is Known 106

Figure 6.7. Cubic Content Inclusion 108

Figure 6.8. Wants and Needs of Potential Sponsors 110

Figure 6.9. Sustainable Meeting Standards 111

Figure 6.10. 15 Tips for Greening Exhibition Budget 112

Figure 7.1. Currency Considerations 123

Figure 8.1. CEIR Floor Engagement Study, Part 7, 2017 131

Figure 8.2. Learning Theater on the Exhibition Floor 133

Figure 8.3. Seating for Education in Booth/Stand 135

Figure 10.1. Focus Group 150

Figure 10.2. EAC Committee Meeting 152

Figure 11.1. Overview of RFP Process 160

Figure 11.2. Industry Insights RFP Workbook Tabs, 2018 161

Figure 11.3. Industry Insights RFP Workbook 162

Figure 11.4. WeChat 171

Figure 12.1. Primary Destination Marketing Organization Responsibilities 176

Figure 12.2. Primary Sources of Public and Private Funding 177

Figure 12.3. DMO Advertisement 178

Figure 12.4. DMO Sales Function 180

Figure 12.5. Las Vegas Convention and Visitors Authority 183

Figure 12.6. DMO Services 186

Figure 13.1. McCormick Place 193

Figure 13.2. Melbourne Convention and Exhibition Centre 195

Figure 13.3. Green Industry and Equipment Expo 197

Figure 13.4. Messe Frankfurt 198

Figure 13.5. Catering at Expo! Expo! IAEE’s Annual Meeting & Exhibition 200

Figure 14.1. Site-Selection Committee 207


xiv

LIST OF FIGURES

Figure 14.2. Loading Dock with Trucks 210

Figure 14.3. Facility Features to Check During Site Visits 212

Figure 14.4. Quick List for Hotel Site Visits 214

Figure 14.5. Marshaling Yard Security Checkpoint 216

Figure 14.6. Quick List for Exhibition Hall Site Visits 217

Figure 14.7. Quick List for Outdoor Spaces Site Visits 219

Figure 14.8. Quick List for Subsequent Visits to Exhibition Sites 220

Figure 15.1. Mathematical Formula for Conversions 224

Figure 15.2. Poster Session 226

Figure 15.3. Example of a Peninsula Booth/Stand 230

Figure 15.4. Sequential Numbering 232

Figure 16.1. Face-to-Face Interaction 246

Figure 16.2. Timeline Example for Expo! Expo! 251

Figure 16.3. Key Marketing Messaging and Effectiveness in Driving Attendance 256

Figure 16.4. Expo! Expo! Key Messages 256

Figure 17.1. The 4 Ps of Marketing Mix 260

Figure 17.2. The 7 Ps of the Marketing Mix 261

Figure 17.3. Marketing and Public Relations Activities in Perspective 265

Figure 17.4. Press Conference 266

Figure 18.1. Sponsor Recognition 276

Figure 18.2. Digital Sponsor Recognition 277

Figure 19.1. The Sales Cycle 285

Figure 19.2. Unique Value Proposition of Exhibitions Not Fulfilled by Other Marketing Sales Channels 289

Figure 19.3. An Outdoor Exhibition 291

Figure 20.1. Exhibitor Badge with Scan Code 308

Figure 20.2. Registration Personnel 310

Figure 22.1. Sample Rendering of Registation Area for Expo! Expo! IAEE’s Annual Meeting & Exhibition 2017 328

Figure 22.2. Scissor Lift 331

Figure 22.3. Exhibition Services Manual (ESM) Content 334


xv

LIST OF FIGURES

Figure 22.4. Exhibit Hall Rigging 335

Figure 22.5. Post-Exhibition Activities 337

Figure 23.1. Sample Mobile Reponsive Site from Expo! Expo! IAEE’s Annual Meeting & Exhibition 2017 347

Figure 23.2. Sample Home Page from Expo! Expo! IAEE’s Annual Meeting & Exhibition 2017 347

Figure 23.3. Features of Mobile Apps for Exhibitions and Events 349

Figure 23.4. Sample WeChat Screen Shots 351

Figure 23.5. Benefits of Wayfinding or Indoor Mapping 354

Figure 23.6. Benefits of Livestreamed and Captured Content 355

Figure 23.7. Tips for Creating a Video 357

Figure 23.8. Uses of Tablets On-Site 358

Figure 24.1. Gobo Effect 364

Figure 24.2. Touch-Screen Station 366

Figure 24.3. Image of 135-foot Projection Screen 367

Figure 25.1. Catering in the Exhibition Hall 373

Figure 25.2. Food Display 379

Figure 26.1. Label Information 391

Figure 26.2. Loading Dock 393

Figure 26.3. Components of an ATA Carnet 395

Figure 27.1. Sponsor Message on a Bus 404

Figure 27.2. Shuttle Schedule and Staging Area 405

Figure 28.1. Elements of a Legally Binding Contract 417

Figure 28.2. Calculating Exhibition Hall Rental Fees 429

Figure 28.3. Elements of an Exhibitor Contract 432

Figure 29.1. Principles of Risk 440

Figure 29.2. Face-to-Face Education 445

Figure 30.1. Crisis Management Team 454

Figure 30.2. Basic Principles of a Comprehensive Crisis Management Plan 464


xvi

LIST OF TABLES

Table 6.1. Budget versus Actual 97

Table 6.2. Budget Philosophies in Comparison 98

Table 6.3. Fixed Cost 99

Table 6.4. Variable Cost 100

Table 6.5. “What If” Analysis of Booth/Stand Space Fees 108

Table 6.6. “What If” Analysis of Attendee Registration Fees 108

Table 6.7. “What If” Analysis – Tiered Attendee Registration Fees 109

Table 6.8. “What If” Analysis – Tiered Booth Fees 109

Table 6.9. Budget versus Actual – Four Months Prior to Exhibition 113

Table 6.10. Sample Exhibition Budget – Revenue 114

Table 6.11. Sample Exhibition Budget – Expenses 114

Table 7.1. Sample Income Statement – Prior Year Comparison 120

Table 7.2. Master Account Reconciliation Table 122

Table 7.3. Cash Flow Statement Table 125

Table 7.4. Investing Funds When Inflows Exceed Outflows 126

Table 10.1. Common Sources of Evaluative Information 147

Table 10.2. Types of Research Typically Used 154

Table 11.1. Types of RFPs Issued by Exhibition/Event Organizers 161

Table 11.2. Safety, Security, and Medical Considerations 164

Table 11.3. Exhibit Space RFP Considerations 165

Table 11.4. Information for the Official Service Contractor RFP 167

Table 11.5. Registration and Data Management RFP 167

Table 11.6. Considerations for the Registration and Data Management RFP 168

Table 11.7. Considerations for Using a Destination Management Company 169

Table 11.8. Typical Services of the Professional Congress Organizer 170

Table 11.9. Chief Interpreter RFP Specifications 170

Table 11.10. Social Media RFP Considerations 171

Table 11.11. Major Areas of the RFP Review Process 172

Table 11.12. Scoring Matrix to Evaluate Proposals 172


xvii

LIST OF TABLES

Table 14.1. Rank Order for Hotel Selection 205

Table 16.1. The Role of Marketing 243

Table 16.2. Case Study: IAEE Expo! Expo! Case Study Outline 245

Table 16.3. Vision, Goals, Objectives, and Unique Value Proposition of Expo! Expo! 247

Table 16.4. SWOT Analysis 248

Table 16.5. Advertising Objectives 249

Table 16.6. Examples of Outcomes Measured for Expo! Expo! 252

Table 16.7. Exhibitor Prospectus Contents 254

Table 29.1. Typical Limits of the Commercial General Liability Policy Table 443

Table 29.2. Typical Insurance Policies 449

Table 31.1. Examples of Ethical Issues 476


This page left intentionally blank.


19

SECTION

1INTRODUCTION

CHAPTER 1Industry History & Overview

CHAPTER 2Exhibitions Defined

Through the years, periods of growth and decline in the exhibitions and events industry have been impacted by economic, political, and geographic trends. Shifts in structure, philosophy, and culture have redefined the exhibition industry. However, the purpose has remained constant – connecting the buyer and seller in a face-to-face setting. By far, the most remarkable change resonates with globalization and an expanding international marketplace. This section will provide a historical look at the formation of the exhibitions industry and introduce the industry from a global perspective and focus on the ever-changing landscape of exhibitions through the lens of history. This section will end with an overall landscape of the careers available in the exhibitions and events industry.

CHAPTER 3Careers in the Exhibitions and Events Industry


21

CHAPTER

1

“The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.” – Marcel Proust

LEARNER OUTCOMES

Upon completion of this chapter, the learner should be able to:

1. Uncover the history of exhibitions starting in the Middle Ages through the 21st century

2. Examine the critical factors contributing to the growth and decline of the exhibition industry

3. Explore the impact of the global economy on the exhibition industry

4. Explain the effects of globalization on the future of the exhibition industry

5. Recognize the significant geographical trends in the global marketplace for exhibitions

6. Describe how significant geographical trends in the global marketplace affect the exhibition industry

INDUSTRY HISTORY & OVERVIEW

Cathy Breden, CMP, CAEExecutive Vice President and Chief Operating Officer

International Association of Exhibitions and Events (IAEE)and

Chief Executive OfficerCenter for Exhibition Industry Research (CEIR)

Steven Hacker, CEM, CAE, FASAE,Principal

Connect Meetings


22

CHAPTER 1 Industry History & Overview

HISTORY OF EXHIBITIONS

Throughout recorded history, whenever and wherever goods were conceived and produced, some variant of what is today called an exhibition existed to bring buyers and sellers together for mutual benefit. The Egyptian, Greek, and Roman marketplaces were the first examples. In fact, trade fairs are mentioned twice in the Bible’s Old Testament.

Fairs became commonplace in the European Middle Ages. They featured agricultural products, arts and crafts, and hand-made specialties. Churches used them to celebrate religious holidays and liturgical seasons. Several European countries, including Germany and France, claim to have hosted the first western trade fairs. Records show that Leipzig, Germany had a fair in 1165. In 1259, Cologne, Italy began holding trade fairs twice each year, and the Champagne region of France hosted a major fair during the same period. In Germany, Frankfurt’s Book Fair, which is still held today, became famous following Gutenberg’s invention of the movable type letterpress in 1445. A historical anecdote from 1530 finds the intellectual Erasmus of Rotterdam complaining about his need to meet publishing deadlines for an upcoming Frankfurt Book Fair, proving some things never change. (Morrow)

During the European Renaissance when goods were still made by hand, examples of handicrafts were presented in “Sample Fairs,” where orders were taken for later delivery. Daniel Defoe, author of Robinson Crusoe, wrote an essay about attending a fabric fair in the early 1700s. (Morrow)

Exhibitions in Europe gained prominence during the Industrial Revolution. Mass production of goods in the 1750s gave birth to capitalism, as well as intense competition to find buyers for these new goods. Improved transportation enabled more buyers and sellers to attend exhibitions in diverse geographic areas, generally in or around transportation hubs.

In 1798, the newly-formed French Republic mounted an exhibition of clocks, ceramics, chemical products, and other manufactured goods. These were displayed in temporary buildings constructed along the Seine River. As in certain trade shows today, nothing was for sale at the event, and the main purpose was to boast of French product superiority, which the maker no doubt hoped would lead to future sales.

The 19th CenturyIn the U.S., the first recorded fair was in Pittsfield, Massachusetts in 1814. The Berkshire Agricultural Society hosted a showcase of agricultural and regional products, particularly the handicrafts and furniture of the local Shaker religious group.

London’s Great Exhibition of 1851 was created to showcase Great Britain’s industrial, military, and economic superiority. Queen Victoria’s German husband and Consort Prince was the genius behind the event, held in London’s Hyde Park in a specially designed “Crystal Palace.” Made of over one million feet of glass and containing over 13,000 exhibits from around the world, this huge, iron-


23

Industry History & Overview CHAPTER 1

framed structure was considered the first modern exhibition facility. More than six million people attended, making it so profitable that it provided the initial funding for several current London landmarks including Albert Hall, the Science Museum, the Natural History Museum, and the Victoria and Albert Museum.

The Exhibition of the Industry of All Nations opened in New York City two years after the event in London with its own Crystal Palace – a somewhat smaller version – housing several thousand exhibits. It was also a highly successful event. In the 1980’s a real estate developer named Trammel Crow built a replica of the Crystal Palace in Dallas, Texas, U.S. called the Infomart to house wholesale showrooms and exhibitions, primarily in the hi-tech industry.

In 1876, The International Exhibition of Arts, Manufactures and Products of the Soil and Mine opened in Philadelphia, Pennsylvania, U.S. This celebration of the United States’ 100th anniversary showcased American intellectual and material progress through successes in science, industry, and culture. It introduced Alexander Graham Bell’s invention, the telephone.

Figure 1.1. Exposition of Univerelle in Paris (Source: The Exhibition Industry: The Power of Commerce)


24


Figure 1.2. Automobiles Show Program Cover (Source: The Exhibition Industry: The Power of Commerce)


25


The Typewriter Show was launched in Madison Square Garden in New York City, New York, U.S. in 1903. One of the hidden purposes of the exhibition was to prove that women could operate this new invention, a fact that business and industry leaders (all male) found hard to believe. One of the first exhibitors to sign up for the exhibition was a desk manufacturer who cleverly realized that these new typewriters had to be placed on something to be operated. Renamed The Business Show in 1908, the exhibition was later managed by the Business Equipment Manufacturers Association as the BEMA Show.

To celebrate their Revolution’s centennial, the French produced the Exposition Universelle de 1889 in Paris. It showcased their industrial and cultural achievements, with one central attraction: the Eiffel Tower. Intended as a temporary structure with no other purpose than to present the engineering genius of Alexander Eiffel, this marvel of iron was hailed as the world’s tallest structure. More than 80 other structures surrounded the Tower on the Champ de Mars. The most impressive was the Galerie des Machines, a 1,452-foot-long/442 meter structure with the largest open floor area of any building ever constructed, designed to showcase the latest heavy power machines and technology. Lit by new electric lights, it had overhead traveling walkways, which allowed visitors to look down to the exhibits. All the nations of Europe, South America, the United States, and the French Colonies were represented, showcasing their cultural specialties and industrial achievements. The French government commissioned August Rodin to create his famous sculpture, The Kiss, for the event.

The decorative style Art Deco was derived from the title of the Exposition Art Decoratifs et Industriels Modernes held in Paris, France in 1928. It was not so much a design movement, but rather a shared approach to styling. The interplay of geometric forms, abstract patterns of zigzags, chevrons and sunbursts, rendered in brilliant colors, as well as the use of bronze, ivory and ebony, were some of its characteristics. It was inspired by non-Western art, particularly that of Africana d Egypt, which was enjoying a swell of popularity after the discovery in 1922 of Tutankhamun’s tomb. The cubist paintings of Picasso and Braque captured the imagination of the designers, and the I’Esprit Nouveau pavilion, designed by Swiss architect le Corbusier, was touted as the model of Modernism.

As the Gay Nineties brought the century to a close, 54 cities on every continent had hosted major exhibitions. The importance of exhibitions in the economic growth of nations and industries was firmly established. This would serve as a launch pad for the startling advances about to take place in the 20th century.


26


The 20th CenturyIn 1895, some 15 years after the Photographers Association’s exhibition, a Detroit, Michigan, U.S. journalist proposed that various businesses join together to attract exhibition business to Detroit in much the same manner as a Chamber of Commerce. After the very successful World’s Fair in St. Louis, Missouri, U.S. in 1904, the St. Louis Convention Bureau was formed. Likewise, following the Democratic National Convention in Denver, Colorado, U.S. in 1909, the Denver Convention Bureau was launched.

By 1914, approximately 15 cities had created agencies to attract convention business to their cities. They formed the National Association of Convention Bureaus (NACB) in 1914. It is interesting to note that the word visitor was not added to the names until the 1970s. It is not a coincidence that NACB was created the same year Henry Ford opened the first assembly line manufacturing plant in the world that led to making the automobile affordable for the middle class. A more mobile America promised great things for a national convention market.

Figure 1.3. Cincinnati Industrial Exposition, which was probably one of the five largest shows in the U.S. at the time. Note the exhibit booths; George Fern is credited with being the creator of the uniform exhibit booth, beginning with the Ohio Valley Exposition in 1910. The Ohio Valley Expo was also a top five show in the U.S. at the time. (Source: Fern)


27


Figure 1.4. Mid-late 30’s Cincinnati Auto Show. Fern serviced this show for around 100 consecutive years with the exception of some war years when the show wasn’t produced. (Source: Fern)

After a pause during World War One, the U.S. convention business took off during the “Roaring 20s.” For the most part, these events were large meetings that, like political conventions, were primarily held in hotels. In 1927, however, an auditorium was built in Minneapolis, Minnesota, U.S. to host these large events. Soon after, in 1935 the Kansas City Municipal Auditorium opened in Kansas City, Kansas, U.S.

Figure 1.5. The Exposition: Technology’s Showplace (Source: Brede Exposition Services, Minneapolis, MN)


28


Figure 1.6. Emerging technologies have always found a ready home at expositions. Advances in technology are evidenced in these photographs. (Source: Oscar & Associates)

Another significant event occurred in 1927 that was an important part of the development of the U.S. exhibition business. The Palmer House Hotel in Chicago, Illinois, U.S. was opened, offering, in addition to the traditional guest rooms and meeting space, two floors of dedicated show rooms. These rooms were leased to traveling salesmen, enabling them to invite their customers to come to them to view products instead of them going to each customer. The hotel provided services such as electrical power, draped tables, food and beverage, nightly cleaning, security services, and bell staff to carry the merchandise to be displayed to and from a guest room. That model was replicated by facilities and contractors some 40 years later when the first convention centers were built.


29


Figure 1.7. The Exhibition: A History Lesson in Marketing. 1993 Frankfort Auto Show. (Source: Kelsey-Hayes, Livonia, MI)

The Great Depression took its toll on the U.S. convention business during the 1930s, and World War II further depressed the events market. In fact, the industry did not begin to recover until well after World War II ended in 1946. When the industry finally did begin to recover, exhibition organizers suddenly had to compete with returning soldiers for hotel rooms in virtually every major city.

The displacement of conventions led to a summit meeting of four industry associations: the IACVB (International Association of Convention & Visitor Bureaus, now called Destinations International), ASAE (American Society of Association Executives), AH&MA (American Hotel & Motel Association, now called American Hotel & Lodging Association), and HSMAI (Hotel Sales & Marketing Association International). The Convention Liaison Council, now called Events Industry Council (EIC), was formed soon thereafter, and produced the Group Room Booking Model and the Housing Reservation Service – both under the aegis of IACVB. That was the early beginning of a national meetings market and targeted sales campaigns by hotels and local convention and visitor bureaus.

Another significant event followed World War II when, in 1947, then U.S. Secretary of State George C. Marshall introduced the Marshall Plan to rebuild Europe. This commitment of some $20 billion had a caveat that American-made goods would be bought and shipped on American flag vessels to Europe. This had two impacts that affected the exhibition industry. Some of the money was used by France, Italy, and West Germany to build fair grounds with exhibition centers to establish a base for future commerce. Second, Europeans got exposed to American-made products. The giant trade fairs held in Europe (many of which are still in existence today) became the model for the business-to-business (B2B) exhibition industry in the United States.


30


War-torn Germany’s 1947 economy was characterized by industrial ruin and chronic food shortages. However, the Marshall Plan called for Germany to become economically self-reliant as soon as possible. The British occupation authorities, working with the commander-in-chief of the American zone, organized the first Export Messe Hannover.

It was set up in the outskirts of the Hanover Fairground in five enormous halls where aircraft wings were manufactured during the war. The fair opened on August 18th and closed on September 7th, 1947. Thirteen hundred exhibitors, with exportable post-war products bearing an official “Made in Germany” sticker, were visited by 736,000 attendees from 53 nations during those 21 days. Many buyers were flown into Hanover on military planes (both British and American), and were quartered in a nearby British transit camp at the government’s expense. Almost 2,000 export agreements were signed, having a combined value of $31.6 million U.S. dollars. In the ensuing years, the Hanover Fair was the symbol of Germany’s economic miracle, becoming the largest trade fair in the world. Its logo, the profile of Hermes, the God of Trade, is recognized around the globe.

During the 1950’s, two significant events completed the platform necessary to create a national convention market. First, the National Interstate Highway System in the U.S. was completed in 1956, offering a network of roadways connecting the entire country. Second, the commercial introduction of the jet airplane made short-term cross-country travel feasible.

Figure 1.8. Expositions: An Ever-evolving Industry. (Source: Brede Exposition Services, Minneapolis, MN)


31


Figure 1.9. Signs of the Times – The evolution of the sign from an information source to an integral part of the exhibit design. (Source: Freeman, Dallas, TX)

The first convention and exhibition center designed to attract national events, McCormick Place, was opened in Chicago in 1964. First-generation “boxes with docks,” like this huge building was called, began being built in various cities that already had airlift and a reasonable inventory of hotel rooms. A Hotel Occupancy Tax (HOT) was created by various taxing entities across the country, effectively taxing visitors and dedicating the revenue to servicing the bond debt incurred to build these facilities. The facilities themselves were seen as “loss leaders,” because the economic benefit to the region came from the money visitors spent while they were in the local area, rather than facilities profiting financially. Because these facilities allowed destinations to compete for this lucrative regional and national exhibition business, new facilities began to spring up across the United States.

Professional societies saw the enhanced value an exhibition could add to their annual meeting programs, and trade associations saw the value exhibitions offered by producing flagship events for their industries. The competition to attract attendees and sell booth space to exhibitors was intense because of the many new opportunities arising, and the market exploded overnight.


32


Pipe and drape is the mainstay of the U.S. exhibition industry. Reportedly the brainchild of Bill Brede, founder of Brede Exposition Services, pipe and drape was created in the early 1930s for a client with a traveling pet show who needed a way to delineate exhibit booths that did not involve building expensive, labor-intensive hard wall structures. Brede’s initial invention used interlocking brass railings and machine-sewn draperies. Following World War II, less expensive aluminum was substituted for the piping.

Although Brede patented his innovative method, he allowed the industry to use it for exhibitions throughout North America. This drastically reduced the time required for exhibit installation and dismantling, allowing facilities to schedule many more exhibitions during a calendar year. In effect, Bill Brede’s pipe and drape invention permitted the exhibition industry to enjoy its phenomenal growth during the 20th century.

In spite of burgeoning growth, and although considered by those participating to be a viable marketing alternative, conventions did not have the greatest of reputations. Convention organizers chose exotic locations to hold their events, hoping the location would attract exhibitors and attendees. Trips to exotic destinations, however, were thought to be frivolous in those days when most still took vacations by automobile, and many business people viewed them as more entertainment than business. By the mid-1970s, the previously fast-growing exhibition industry had slowed and was struggling with challenges ranging from not being considered a serious marketing endeavor, to not even showing up on marketing managers’ radar screens.

Figure 1.10. Expositions: Change Agents Through Innovation. (Source: Brede Exposition Services, Minneapolis, MN)


33


Figure 1.11. The ever-changing demands of creating a marketplace that reflects the latest in trends and technology is best exemplified on the exhibit floor where custom-designed modular displays now dominate, having replaced the standard pipe and drape display system. (Source: Freeman, Dallas, TX)

In 1978, a small group of industry leaders got together and developed a strategy to combat the “entertainment versus business” image problem, and raise awareness about the exhibition industry. They asked the National Association of Exposition Managers (which is now IAEE) to create an event at which to unveil their plan. The result turned out to be the largest gathering of hospitality industry associations held to date: the 1988 NAEM Annual Meeting in Las Vegas, Nevada, U.S.

The idea was simple and not particularly original. The group knew that there were agencies created to promote marketing dollars being spent with their industry. Two of the largest and most well-known were the Radio and Television Bureau, and the American Newspaper Bureau. The proposal was simply to create the Trade Show Bureau (TSB), now known as the Center for Exhibition Industry Research (CEIR), to promote the use of trade exhibitions to bring products to market. The idea received enthusiastic approval, and TSB was launched.

From the outset, TSB faced a major problem. Before the organization’s founding, there had been no definitive work done to document the industry, or prove the industry’s claims. Print media had well-established circulation audit practices, and the radio and television market had Nielson and other rating systems to document their claims of listeners and viewership. TSB was faced with the daunting task of promoting the use of exhibitions, a marketing medium with no track record and no data to support its claims of marketing success. As a result, before TSB could begin to promote the industry, its first mission had to be conducting research.

Commercial publishers were also alert to the fast-growing meetings and exhibitions business, and several vertical publications were introduced to serve the market. Some of them took on the task of publishing schedules of events, and even quantifying the industry as to the number of exhibitions held each year.


34


In 1986, Bob Black, the publisher and founder of Tradeshow Week presented a paper at Cornell University that was the first scientific work designed to quantify the industry. The paper reported that there were 2,733 events with 10,000 or more net square feet of exhibit space sold. The author also suggested that there were probably another 2,000 events with fewer than 10,000 net square feet. Black’s work allowed the industry to move forward with a general estimate that there were some 4,000 to 5,000 events with exhibitions held each year in the United States.

Between 1986 and the end of the 20th Century, the exhibition industry in the United States flourished. By 2000, the modern industry had survived several economic recessions in the U.S., and demonstrated that it was both resistant and resilient when it came to economic recovery.

Figure 1.12. Expositions: Then and Now. 1927 Industry-only exposition. (Source: Brede Exposition Services, Minneapolis, MN. The 1990s exposition.)


35


Figure 1.13. The 1990s Exposition (Source: Oscar & Associates)

Modern TimesDuring the late 20th century, significant changes were also taking place in the international community. The Cold War had ended, and trade was beginning to open up among countries that had previously refused to trade for political reasons. Many of the “controlled economy countries,” such as China and Russia, were accustomed to doing business with other countries, not companies. Most of the trade exhibitions produced in those countries were hosted events sponsored by another government. For example, China would host an exhibition of Yugoslavian or French goods. That country in return would host an exhibition of products made in China. Since these events were government sponsored and organized, the products exhibited covered a very broad range.

When China opened its doors to the United States in 1977, entrepreneurs saw many opportunities to produce events in China. However, it was not until the first U.S. event was produced in Beijing in 1979 by the U.S. Department of Commerce that private requests were considered. The approval process was frequently based upon the Chinese need for products proposed to be shown. In 1981, the U.S.-based Society of Petroleum Engineers produced an exhibition in Beijing displaying equipment used in exploring for and producing oil and gas. That event was significant in that it broke through three separate barriers simultaneously. First, it was produced by an organization instead of the government. Second, the exhibits applied to a single industry. Third, it was truly an international event with companies from ten different countries.

During the last 25 years of the 20th century, further expansion of the international exhibition industry occurred with the advent of developing countries. As the world entered an extended period of relative peace, aid poured into countries who suffered from famine, disease, and a poor standard of living. The countries began to build their own economies, and seek improvements in the quality of life. The two early


36


signs of a developing nation became the launch of a national airline, often with only a few aircraft, and the building of an exhibition center to host international events.

That model still exists today, as exhibitions continue to demonstrate that they are the fastest, most efficient way to bring products to markets. Even in countries that do not trade with one another, exhibitions are sometimes permitted to bring goods related to basic human needs, such as health care and food to market. Several medical and agricultural themed U.S. exhibitions that took place in Cuba are examples of this practice.

HISTORY OF EXHIBITIONS IN CHINA

The history of China’s exhibitions can be traced back to the ancient bazaars held more than 2,000 years ago. Originating from a religious gathering first held during the Western Zhou Dynasty (1100-771 B.C.), an annual, three-day bazaar was held in the Fengchushan Village Temple Fair in the Qishan area of the present Shanxi Province.

In addition, Dadu had more than 30 bazaars during the Yuan Dynasty (1271-1368 A.D.). Regular fairs were held at local temples, including Chenghuangmiao, Longfusi, Huguosi and Baiyunguan. State-controlled bazaars were also held with the participation of nomadic tribes in the North.

When China entered into the Qing Dynasty (1644-1911 A.D.), the temples of Baitasi, Longfusi and Huguosi had become the three most famous fair sites in Beijing. Some specialized bazaars based on the traditional model, such as the rice bazaars in Wuxi (Jiangsu Province) and Wuhu (Anhui Province), emerged. Another typical specialized bazaar was the medicine fair in Anguo (Hebei Province), which was held twice a year – once in the spring, and again in the autumn. These specialized medicine fairs represented the trade exhibition of today in its embryonic form.

In 1905, the Ministry of Industry and Commerce of the Qing Dynasty set up The National Exhibition Hall of Industrial Development at Qianmen in Beijing to showcase the industrial products from different provinces. Meanwhile, the business promotion marketplace was established for the sale of commodities.

Many regard this as the earliest exhibition in China. It was divided into various specific-use areas, including a provincial hall, textile hall, tea hall, arts and crafts hall and national defense hall. The exhibition lasted three months, and hosted over 200,000 visitors.

In 1912, in the early days of the Republic of China (1912-1949 A.D.), the Beijing government changed The National Hall of Industrial Development of Qing Dynasty at Qianmen into the “Commodities Hall.” Later changed into a trade fair venue, China’s earliest exhibition hall became a marketplace.

In August 1921, the Shanghai General Chamber of Commerce set up the Commodities Display Hall. Held in the autumn once a year, the Shanghai General Chamber of Commerce held the China Pod Silk Fair in Shanghai for the first time in October of 1922.

In 1925, Wuhan Expo was held, followed by the Sichuan Homemade Products Expo in 1928. In 1929, the Xihu (Westlake) Expo was held for the first time in Hangzhou, which was the largest scaled exhibition in China’s history. In 2000, the Xihu Expo was resumed and is now held once every year. Before the Sino-Japanese war (1937-1945), some other trade fairs were also held in other parts of China.

From the 1950s to the early 1980s, except for some domestic trade fairs, the exhibitions in China were mainly solo foreign national exhibitions serving a diplomatic purpose. In the mid-1980s, China’s exhibition industry started to develop international trade shows with market orientation. Especially due to the rapid development of China’s economy in the latter part of the 20th century, China has become a leading market for the exhibition industry in Asia.


37


GLOBAL ECONOMY’S EFFECT ON EXHIBITIONS

Sellers and buyers are doing business around the world. Some companies manufacture in their home market, and export and sell their products in other countries to serve global customers. Others import from other countries to sell in their home market. Buyers are now able to purchase products globally, with decreasing difficulty. Thousands of products and services continually crisscross the world. As businesses and their customers have become more international, the exhibition industry – which brings buyers and sellers together in a temporary marketplace – reflects this trend and provides buyers and sellers with new opportunities.

For a business that has sometimes been called an “invisible industry,” exhibitions now play an extraordinarily large role in the global economy. Since the launch of the world’s first niche trade fair, exhibitions have served as remarkably reliable mirrors of the industries and market sectors they serve. These exhibitions and events bring buyers and sellers together, and almost always reflect the underlying conditions of their industry sectors.

For example, if a particular segment of commerce is doing well, expect to see many exhibitions competing aggressively with each other for the attention of key buyers and sellers. Typically, one will also see the launch of new exhibitions and the expansion of existing events – including the cloning of successful exhibitions, the creation of regional exhibitions, and the introduction of related exhibitions that broaden the scope of an existing event’s market coverage. Another sign of industry health occurs when exhibitors use exhibitions for objectives besides marketing and sales. Testing consumer attitudes, building brand awareness, and gathering market intelligence about what competitors may be doing are all common functions that often take place in addition to sales promotion.

Likewise, when economic circumstances are particularly harsh in an industry, one expects to see plummeting attendance, exhibitors reducing their participation and sometimes, in the case of weaker exhibitions, the collapse of the event.

In summary, this ebb and flow of exhibition industry activity over time is nothing more than the predictable fluctuation of supply-and-demand economics at work. Economic setbacks and geopolitical events that have negatively impacted exhibitions also demonstrate the remarkable resilience of the industry. In nearly every instance, the exhibition industry rebounded, usually at a faster pace than the global or national economies that were affected.

Despite a series of economic recessions – including a relatively severe downturn in the late 1980s – the U.S. exhibition industry averaged about six percent growth annually from the mid-1970s through the early 1990s. At the close of the 20th century, the American exhibition industry seemed virtually immune to market fluctuations and changing economic cycles. The ravages of the Great Recession of 2008 that will be discussed later, however, dispelled this belief.

Many industry observers attribute the remarkable growth and expansion of the U.S. exhibition industry during the latter half of the 20th century to the introduction of purpose-built exhibition halls like McCormick Place in Chicago,


38


and dozens of others around the globe. New construction focused on large exhibitions, providing new platforms to launch new exhibitions. Concurrent with this development was the extraordinary expansion of the U.S. economy, and the launch of entirely new industries such as telecommunications, information technology, and consumer electronics.

Adding additional power to the surging growth of the global exhibition industry was the introduction, in 1960, of jet-powered passenger aircraft. The availability of low-cost international travel options opened the door to bringing buyers and sellers together in unimaginable ways.

These three catalysts allowed corporations and businesses to fully engage exhibitions as a unique and powerful way to introduce new products and services, measure competition, meet existing customers under favorable circumstances, launch new advertising and public relations campaigns, and build corporate image.

Despite this incredible period of growth and expansion, the laws governing economics inevitably came into play in the latter portion of 2000. The convergence of a seriously slumping global economy, and the dramatic and nearly catastrophic collapse of the dot.com economy began a downturn in the exhibition industry.

The terrorist acts of 9/11 brought nearly 40 years of growth to an immediate halt, bringing with it the exhibition industry’s first serious contraction. Measured by the Center for Exhibition Industry Research (CEIR), the industry took four years to fully recover. The exhibition industry’s recovery from the effects of the serious global economic recession of 1999-2001, the collapse of the information technology industry beginning in 2000, and the impact of the terrorist attacks of 2001 would have been more robust had it not been for the presence of additional factors (CEIR Index Report 8).

The revenues generated from the more than 11,000 exhibitions conducted each year in the U.S. were reduced as a result of the many corporate mergers and acquisitions that occurred in the early years of the 21st century. Among the casualties of this trend were millions of buyers whose jobs were eliminated – buyers who would otherwise have attended exhibitions. This same trend among Fortune 1000 companies also helped to decrease the number of exhibitors during the same period.

Just as the global economies began to regain some real forward growth momentum, a series of setbacks occurred in 2007, triggered by the sale of trillions of dollars of under- and non-performing home mortgages. These repackaged mortgages severely impacted investment instruments throughout the world, and began what has since been labeled “The Great Recession.” According to the CEIR Index Report, the impact upon the exhibition industry was very substantial and resulted in a broad industry contraction of 14 percent from 2007 to 2010, the most serious contraction ever recorded. After hitting bottom in 2010, the industry began an upward trend in the third quarter of 2010. It outperformed year-over-year gross domestic product (GDP) growth for two of the first three quarters in 2011. Between 2011 and 2016, year-over-year growth fluctuated,

Purpose-built exhibition halls

CATALYSTS FOR GROWTH & EXPANSION

(latter 20th Century)

Expansion of U.S. economy

Jet-powered aircraft

Economic recession

ECONOMIC DOWNTURN IN 21ST CENTURY

9/11 terrorist acts

Collapse of dot.com industry


39


ranging between 2.3 percent in 2013 and 3.3 percent in 2015. In 2016 year-over year growth was 1.2 percent, a result of deceleration of the U.S. economy. The outlook through 2019 is generally positive for the industry overall and for business sectors that are faring well.

GLOBALIZATION OF THE EXHIBITION INDUSTRY

Driving change in many industries, especially in the manufacturing sectors, has been China, whose economy expanded by seven to ten percent annually (“China GDP”) until it suffered its own real estate collapse, bringing China GDP down by half in 2011. The economy has expanded, and if the trend continues, 2017 will have the highest growth rate since 2010. India comes in as a close second, with dozens of other emerging economies across Asia and the Pacific Rim expanding rapidly. Future economic growth is shifting to the east.

Exhibition organizers are now recognizing the opportunities that exist in Asia and the Pacific and are expanding in that direction. Organizers in the U.S. trail far behind their colleagues in Europe, where several important exhibition organizers, led by the German Trade Fairs (called “messes”), established operations in the region beginning in the 1980s and 1990s. Many believe the expansion of European Messes into Asia was spurred by the saturation of consumer markets in Europe, where the American consumer market continues to expand, thus depressing the need and interest of U.S. exhibition organizers to look overseas for new revenue opportunities.

EXHIBITION INDUSTRY CHALLENGES

As corporate marketers have had to demonstrate a more robust return on investment (ROI) to senior management, more demands have been put upon exhibition organizers to develop metrics that illustrate the value of exhibitions. This presents interesting challenges to the industry. What metrics are available currently? Are current metrics enough to determine ROI effectively? What is the demand on business resources for ROI metrics, in terms of development, application, analysis and reporting? What can ROI metrics tell a company? Does the company need more information than is currently available?

In the past, using tools like circulation numbers and Nielsen ratings, business-to-business and consumer media (e.g., trade publications, print advertising, broadcast television, or radio) easily measured frequency (how many times an ad was seen or heard) and reach (how many people potentially saw or heard an ad) of advertisements. With the rise of digital media, new metrics are now used by brand marketers that track the performance of digital marketing activities, including email open rates, click-through rates of links embedded in emails, online ads and other digital promotions; and metrics for social media efforts including number of “likes” and “shares.” An increasing number of marketers are installing marketing systems such as Marketo that enable them to track marketing efforts on a per customer or per prospect basis. This trend will hasten more rigorous analysis of marketing outcomes. Every marketing channel, including exhibitions, will be held to a higher standard of proving ROI.


40


Though what is the ROI for exhibiting? CEIR research documents that the face-to-face marketing channel is used to achieve a range of sales and marketing objectives, with the most popular important objectives including: new sales lead generation, brand awareness efforts, and relationships management with customers and prospects. Metrics are used to tie back to overall goals for exhibiting. Since sales cycles vary for exhibitors, in addition to those using sales revenue generated at a show compared to the cost of exhibiting, others use intermediary performance metrics. These include estimating sales revenue potential compared to the cost of exhibiting, whether number of sales lead or face-to-face meeting goals were met, or whether branding metrics such as positive impact on key performance indicators (e.g. Net Promoter Score, pre and/or post awareness, social media metrics) were achieved. Exhibitions perform best in helping exhibitors achieve their sales revenue and sales leads metrics in particular. Though exhibitions are well-regarded for brand awareness efforts, fewer use specific metrics to assess the outcomes of these activities.

As more companies connect their marketing and customer relationship management systems in a way that enables marketers and sales teams to more precisely evaluate the outcomes of their marketing and sales campaign cycles, metrics used to evaluate exhibiting and other channel marketing activities will become more precise. This will inevitably place more pressure on organizers to assure they are delivering the right attendee audiences and that their exhibitors are achieving their specific goals to maintain the viability and growth of their events.

THE FUTURE FOR EXHIBITIONS

Despite fluctuations in industry growth, the forecast for the future of the exhibition industry remains promising for several reasons. Business-to-business exhibitions continue to capture the majority of marketing dollars among companies that use this channel. In a survey of exhibitors by CEIR in 2017, the allocation of marketing spend for business-to-business exhibitions has remained high, 41 percent in both 2016 and 2017 (“The Spend Decision” 1).

“The Changing Environment of Exhibitions” study from 2016 also indicated that 24 percent of executives surveyed will continue to add exhibitions to the schedule over the next several years. (“The Changing Environment of Exhibitions” 1) CEIR Index results have documented consistent, positive growth in the exhibition industry. At the same time, digital continues to grow in use as a marketing and sales tactic. This study monitors exhibitors’ use of the exhibition channel, its positioning in the marketing mix, and perceptions of exhibitor executives on key issues that can impact the use of exhibitions today and in the future.

The value companies derive from exhibiting is in line with the most common high-priority marketing and sales objectives companies are striving to achieve today. The most prevalent marketing objectives in today’s fiercely competitive business climate are to reach and identify new customers to generate sales leads (95 percent) and build or expand brand awareness (94 percent).

High-priority sales objectives include: the ability to see a large number of existing

Evaluate

EXHIBITION EFFECTIVENESS

Compare

Shop


41


and prospective customers over a short period of time (59 percent), and to hold face-to-face meetings with prospects and customers, developing the relationship (48 percent). Roughly 97 percent identified one or more unique value propositions of exhibitions not fulfilled by other marketing or sales channels (“The Changing Environment of Exhibitions” 1).

Buyers who come to today’s exhibitions typically have specific objectives in mind before arriving at the event. While the number of corporate buyers attending events from any one company are typically fewer in number than before 2000, more decision makers are attending. CEIR attendee profile data published in 2011, based on a survey conducted by Exhibit Surveys, Inc., reported that 80 percent of exhibition attendees have buying influence for their companies (“Exhibitions Attract Market of Visitors with Buying Authority” 1). Approximately three quarters of all qualified attendees represent a new potential customer for exhibitors (“Exhibitions Attract New Prospects” 1).

“The Role and Value of Face-to-Face” marketing study conducted by CEIR in 2012 indicated some concern about the rising number of proprietary corporate marketing events – such as technical conferences with exhibitions, road shows held by a single corporation, mobile truck exhibits, and permanent briefing and demo centers. For attendees, the exhibition setting is the top rated concern, with nearly one-half, 48 percent, ranking it first over all other listed options. No other option comes close; in-person sales calls is a distant second at 26 percent. This is probably because, of all the venues being evaluated, an exhibition presents the buyer with the broadest range of seller selections. Exhibitions remain the most effective way to evaluate, compare, and shop for products.

At the same time, many exhibition organizers have increased the size of their exhibitions by enhancing their conference and educational offerings. This has been a particularly effective strategy for industries such as pharmaceuticals and health care, in which there is a requirement for certification or continuing education credit and recertification. As the buyers’ time has been reduced and travel costs have increased, the opportunity to co-locate events (known as co-location) becomes a more attractive and viable option for exhibition organizers. Co-locations occur when two or more exhibitions are held over the same dates and in the same location. The events may be vertical in nature and not compete with one another; however, economies of scale for both the organizer and the attendees are realized. For instance, a kitchen and bath exhibition could co-locate with an interior design exhibition. This trend is likely to accelerate as time and expense continue to be critical issues.

DIFFERENCES AROUND THE WORLD

For all outward appearances, an exhibition in Turkey looks very similar to one in Munich or Orlando or Sao Paulo. The inscription on the header or fascia at the entrance to the exhibition may look strange or different, but globalization has rendered trade shows inherently similar and familiar. However, many differences still exist in structure, philosophy and culture.


42


Figure 1.14. Turkey Pavilion at Automechanika Johannesburg (Source: Messe Frankurt USA)

OrganizationIn some countries, especially in Europe, the exhibition venue is owned by quasi-government agencies, and the hall owner also serves as the exhibition organizer. In the past, these situations blocked outside organizers from renting or using the facilities, but guest events are now welcomed at all the venues.

CultureCultural differences come into play as sellers and buyers conduct global business. In Asia, colors take on more significance and traditions can have an impact on the success of an exhibition. For example, in keeping with the environmental theme and to liven up the hall at an environmental exhibition in Taiwan, the exhibition organizer flew in a planeload of bright yellow forsythia blossoms. Although they had been carefully arranged throughout the exhibition space on the night before opening, a local partner noted that yellow is the color of mourning in Taiwan. As a result, all the blossoms had to be removed and discarded. This might also illustrate the value of having a local partner or advisor involved in the planning when considering whether to venture into the international arena.

GOING GLOBAL: INBOUND OR OUTBOUND?

When positioning an exhibition in the global marketplace, careful consideration and planning must take place. Some considerations include understanding the market conditions in a particular country and whether the geographical location is conducive to drawing an audience. The options are not mutually exclusive; going one way does not preclude going the other. As a part of the strategic planning process, organizers will need to determine which options make the most sense for their exhibition.

Structure

GLOBAL DIFFERENCES

Philosophy

Culture


43


InboundInbound refers to bringing exhibitors and visitors from outside the host organization’s country into an exhibition. This requires structured sales, marketing, and promotional programs similar to those in place for domestic sales and marketing. Establishing a strong global sales network of agents is critical to securing the number of companies necessary to globalize an exhibition that results in an event with a relatively high-profit margin. To accomplish this, a sound strategy is required.

Identify the key markets. Knowledge of the key markets is important when the export of goods and services to the home market is of sufficient size that companies from other countries need to be there, since their buyers are attending.

Select sales agents. Selecting the right sales agents is critical to working effectively in key markets. Two types of individuals need to be considered: agents selling exhibit space across many sectors and specialist agents selling in only one industry sector.

Develop a packaged program. The global exhibition requires a sales promotion program and package with a global look and feel. Use current market data to understand the marketplace in the country or region, as well as the needs and interests of exhibitors, and attendees.

Develop an integrated sales effort. Perhaps most important, the global sales team should be an integral part of the total sales effort. Map out a sales plan with the global sales agents, providing each agent with all team messages, adequate sales tools and frequent communications. The company hiring these sales agents should promote them on the event’s website as global sales contacts. Some buyers are more comfortable working with a local sales agent than working with a foreign corporate office. Make every effort to keep the goals of the exhibition evident at all times.

Communicate with local officials. Another part of the sales strategy is to contact the embassies and commercial offices about the exhibition’s targeted markets and to increase awareness of the event. Locate key contacts who can disseminate information to corporate offices and company visitors. Concurrently, encourage agents to make direct contact with their counterparts. This cross-communication can result in organizing a pavilion (see fig. 1.2.), representing many different countries in the exhibition, which is sponsored by the various governments and associations.

Focus on attendees/visitors. When considering attendees and visitors, focus on a few key markets. Develop contacts in the key markets with the embassy and commercial offices to assist in identifying associations and government organizations that could potentially sponsor a buyer group, as well as provide lists of potential visitors. U.S. organizers may consider applying for the International Buyers Program or the Trade Show Certification Program through the U.S. Department of Commerce. As with exhibitor promotion efforts, develop materials that will entice international buyers and provide special incentives.


44


OutboundOutbound refers to developing a global business by taking an exhibition and its exhibitors to other geographic markets and/or developing a new portfolio of exhibitions outside the host organization’s country. This strategy requires a much greater commitment than bringing exhibitors and visitors to a country-specific exhibition; however, the rewards can also be greater. The focus with this strategic approach is on long-term growth of a business, which becomes an integral part of the organization’s strategic plan. Taking an event into the global marketplace adds value to customers by providing new sales and marketing platforms, and offering well-known and established brands.

GEOGRAPHIC TRENDS

New venues are continually being built throughout the world. Trends in the exhibition industry vary by geographic location; however, those trends may have an impact on the growth of the exhibition industry in those locations.

North AmericaMany cities in North America continue to update and improve, or rebuild venues to remain competitive.

While all the major U.S. destinations continue to host significant events, the truly international exhibitions take place in cities where organizers know they will attract a global audience. The North American exhibition industry continues to grow; however, the perceptions and requirements of visitors attending an exhibition have changed. The venue must offer peripheral forms of entertainment to augment an exhibition in order to continue to draw large numbers of people and attract a global audience.

EuropeEurope continues to expand its exhibition market by building new venues, but not on the scale of the U.S. and Asia. Growth for the major global exhibitions in Europe has been flat in recent years, and, in many cases, those brands have been moved to Asia where they are gradually beginning to rival the European brands. This has resulted, for example, in the German exhibition industry’s trend to move large numbers of people and resources primarily into the Asian marketplace.

South AmericaSouth America has seen spectacular changes of fortune during the past ten years and will likely maintain its current growth pattern as more of its large populations are lifted above the poverty level. Sao Paulo remains the center of the Brazilian market, where a major portfolio of established exhibitions and events continues to grow. While there are other major cities in South America with established exhibition markets, the likelihood is that Brazil will experience the most significant future growth.

Asia and ChinaSoutheast Asia venues continue to expand and replace older facilities, thus creating some of the finest exhibition spaces in the world. China, Hong Kong, Bangkok, Macau, Singapore, and Thailand are ambitiously creating ideal conditions for an exhibition marketplace and are significant competitors.

North America

GEOGRAPHIC TRENDS

Europe

South America

Asia and China

India

Russia

Middle East


45


The continued building of exhibition space in some parts of China has created a massive space surplus and lower occupancy rates, resulting in increased competition between cities. The massive building programs in the Pearl River Delta and other parts of China have introduced millions of square feet/meters of available exhibition space into a quite small geographic area. Despite a 20 percent growth in the exhibition market, and challenges connected to a lack of regulation and dual pricing policies, exhibiting companies view cities in China and Southeast Asia as vital destinations which cannot be ignored.

IndiaWhile many similarities exist between India and China, the development of India’s exhibition industry is not parallel to China’s growth. India lacks the same level of government support and infrastructure compared to China, and the exhibition industry in India has had difficulty reflecting growth similar to that of its general economy.

RussiaThe Russian market has experienced growth in recent years; however, it is limited by a lack of available venues. The discovery of spectacular resources of oil and gas is now transforming Russia into a capitalist economy where exhibitions are seeing growth. However, just like in other countries, when oil prices drop, the economy of the country is impacted.

Middle EastDespite a tenuous political climate in some parts of the region, the Middle East continues to expand on the colossal cash surpluses generated by oil resources with ambitious plans to make it a world center for the exhibition industry. Dubai and Abu Dhabi are both seeking to create a marketplace, which, they believe, is ideally placed between North America, Europe, and Asia, where safety, weather, hotels, air transportation, facilities, and all the other ingredients for a successful industry are present.

UNPREDICTABLE FACTORS

Exhibitions, in particular, are very vulnerable to a number of geopolitical issues which can discourage buyers from traveling such as terrorism and natural disasters. However, the resilience of the marketplace continues to defy the long-term effects of some of these influencers. Global industry growth depends on the ability of organizers to promote the medium, control costs, and deliver ROI to both exhibitors and visitors.

SUMMARY

Despite the issues that potentially threaten to impede the exhibition industry’s future growth, and the many challenges and uncertainties the industry must face, the long-term forecast remains bright with promise and opportunity. For future success, exhibition organizers will need to understand and be able to identify the opportunities and challenges of the sectors their events serve. They must be adaptable and able to change rapidly as does the global marketplace.


46


KEY WORDS

attendees

auditorium

buyer group

co-location

convention

corporate marketers

economies of scale

European Messe

exhibition

exhibitor

exhibition organizer

frequency (in advertising)

gross domestic product (GDP)

inbound (event)

outbound (event)

pavilion

pipe and drape

reach (in advertising)

return on investment (ROI)

ROI metrics

specialist agent

supply-and-demand economics

trade fair

visitors

DISCUSSION QUESTIONS

1. What do you think a village fair in Medieval Europe was like? Describe who the buyers and sellers were, the types of products they offered for sale, and the location of the fair.

2. What do you think George Eastman (founder of Kodak) was doing when he visited the Professional Photographers Association show in 1880? What was he looking to gain from attending the exhibition?

3. Are you surprised to hear that there is a history of exhibitions in China?

4. Why is the geographic location of a venue important consideration for planning an exhibition today?

5. When considering whether to outbound an exhibition, what factors must be considered? Which of these considerations would be similar and which different for an inbound exhibition?

6. Describe at least three challenges of positioning an exhibition in the global marketplace.

7. Name some of the reasons why a company might participate in an exhibition other than selling product/services? Explain the importance of each.

8. If you were to launch an exhibition in another nation, what are some of the measures that you would take to ensure its success?

9. What are some strategies that you would employ to increase the number of overseas/international exhibiting companies at an exhibition you would produce?


47

CHAPTER

2

“Expositions are the timekeepers of progress. They record the world’s advancement. They stimulate the energy, enterprise and intellect of the people, and quicken human genius. They go into the home. They broaden and brighten the daily life of the people. They open mighty storehouses of information to the student. Every exposition, great or small, has helped this onward step.” – President William McKinley, 1901

LEARNER OUTCOMES


1. Describe the value of the CEIR Exhibition Industry Census and CEIR Index Report

2. Compare and contrast business-to-business and business-to-consumer exhibitions

3. Explain the role of the exhibition organizer, attendee, and exhibitor at an exhibition

4. Identify the purpose and target audiences for corporate private exhibitions and events

5. Discuss the utilization of replication, verticalization, and international expansion on the growth of an exhibition/event

EXHIBITIONS DEFINED




Douglas L. Ducate, CEM, CMPPresident and CEO

Ducate Tradeshow Solutions

Steven Hacker, CEM, CAE, FASAEPrincipal

Connect Meetings


48

CHAPTER 2 Exhibitions Defined

The social, cultural, and economic impact of exhibitions is far greater than was ever imagined by McKinley in 1901, as mentioned in the quote that begins this chapter. The Center for Exhibition Industry Research (CEIR) estimated that the total number of business-to-business and business-to-consumer exhibitions held in the U.S., Canada and Mexico was 13,447, accounting for just over 107 million attendees and 1.9 million exhibitors. (Exhibition Industry Census 2015, 9). For U.S. companies that exhibit, on average, business-to-business exhibiting is the number one marketing expenditure.

The term exhibition is recognized globally to describe face-to-face marketing events that bring buyers and sellers together. These events are created specifically for the purpose of displaying products and services with the goals to advance the sales process within a particular market segment and provide a time-sensitive, temporary marketing environment where the buyer and seller come together in an acceptable location. An exhibition organizer, also referred to as a show manager or show producer, is the specific person responsible for all aspects of planning, promoting, and producing an exhibition.

The Trade Show Bureau (TSB), created in 1978, changed its name to the Center for Exhibition Industry Research (CEIR) in 1994 to more accurately reflect the primary mission of the organization. CEIR houses the world’s largest collection of primary, exhibition-related research studies. Hundreds of reports are available to help better understand the world of face-to-face marketing. CEIR provides industry-leading research on the exhibitions and events industry.

The CEIR Exhibition Industry Census identifies the number of exhibitions held in U.S. and Canada. The 2010 edition added events held in Mexico. A companion product to the CEIR Exhibition Industry Census is the CEIR Index Report. Unlike the Census, which is a snapshot in time, the CEIR Index Report was designed to measure continuing changes and performance of exhibitions in four industry metrics (attendance, number of exhibitors, net square feet and revenue) for business-to-business (B2B) events, creating an exhibition industry-specific version of the Dow Jones.

In order to have sufficient history to clearly identify trends, data collection began in 2000, but was not published until 2004. The CEIR Index Report is published annually to compare year-over-year results and tracks actual growth. The CEIR Index Report is published for the industry as a whole and then divided into 14 industry sectors. Figure 2.1. illustrates the CEIR Index Report data.

The process of garnering support for the project included the necessary step of defining what was to be counted, with 12 industry associations originally participating. For example, the associations agreed that, for the purposes of the study, an exhibition would be defined as an event with ten or more exhibiting companies utilizing 3,000 or more net square feet (279 net square meters) of exhibit space.

In the U.S., associations, entrepreneurs, and media companies own (or host) exhibitions. Approximately two-thirds of the exhibitions held in the U.S. and Canada are owned by associations, with most associations producing only one exhibition

Net square feet/meters of space sold

INDUSTRY METRICS

Number of exhibiting companies

Number of professional or qualified attendees

Revenue generated


49

Exhibitions Defined CHAPTER 2

a year. The largest single owner of an exhibition controls less than four percent of the market, which makes the task of gathering industry data very difficult.

Figure 2.1. CEIR Index Report, 2017 Data (Source: Center for Exhibition Industry Research)

On a global basis, the task is even more daunting. Definitions of key words vary among organizers and countries. While converting square feet to square meters is relatively easy, the task is more difficult when discussing what qualifies an attendee as a legitimate buying influence or who can validate the attendance numbers that the exhibition organizer releases.

THE EXHIBITION BY MANY NAMES

Like many industries, the exhibition industry is casually referred to by many different terms, e.g., trade show, exposition, trade fair, and consumer show. Exhibition is the preferred term globally.

TYPES AND SCOPE OF EXHIBITIONS

• Business-to-business exhibitions (B2B) are those produced primarily for a business audience and are generally not open to the public.

• Business-to-consumer exhibitions (B2C) are open to the public and usually charge an admission fee These types of exhibitions may also be referred to as public exhibitions or consumer shows. Examples include automobile, boat, and lawn and garden shows

Both types of exhibitions may be horizontal or vertical in scope.

Trade show

EXHIBITION (GLOBAL TERM)

INCLUDES:

Exposition

Trade fair

Consumer show


50


Figure 2.2. Super Pet Expo, Edison, N.J. (Source: Andrew Darlow, 2012)

Horizontal exhibitions tend to have a broad range of products and services that have an application to an industry. For example, the Consumer Electronics Show displays a huge variety of products from audio and video equipment to home security systems. At a horizontal exhibition, the single attendee or buyer is rarely interested in all products displayed.

A vertical exhibition usually isolates a tight focus on an industry and produces a smaller, more boutique event with almost all attendees sharing a common interest, e.g., a coffee or tea expo as opposed to a restaurant mega-show that displays all the different equipment, products and services for the industry. Additionally, information technology (IT) and health care are industry segments that prefer vertical exhibitions.

Classifications of Business-to-Business ExhibitionsB2B exhibitions are classified as selling events or non-selling events.

• Selling events are exhibitions of finished goods at which orders are written and commitments made by buyers for future product delivery, e.g., apparel, gifts, promotional products, hardware and housewares. Sometimes buyers can pay for and remove product from the show floor, e.g., ASD Market Week. The buyers usually represent retail and online stores that sell to their customers

• Non-selling events are exhibitions of goods and services that are displayed to advance the sales process or orders are written with delivery promised in the future. However, either due to their nature or the audience composition, a final sale is not consummated, e.g., scientific, engineering, and health care events

The sales process includes those persons classified as buyers that specify and recommend, as well as those actually responsible for placing the order. The purchase of a product may be subject to approval, e.g., a university employee

Horizontal

SCOPE OF EXHIBITIONS

Vertical


51


having to obtain budget approval to buy a new microscope for a laboratory. Faculty can do the research and select the desired microscope; however, the budgeting and purchase process may actually delay the purchase for a year or more. Capital items costing millions of dollars also require various levels of approval. Some companies restrict actual purchasing to a procurement process or department.

Non-selling exhibitions that may prohibit sales during the event are as equally important as the order-writing events. Although an order may not be placed while at the exhibition, a purchase of goods or services following the event still happens as a result of the business representative attending the event.

Figure 2.3. 2017 Fort Lauderdale Boat Show (Source: Informa)

Business-to-Consumer ExhibitionsB2C exhibitions are open to the general public. Exhibitors are typically retail outlets, manufacturers, or local providers of business services looking to bring their goods and services directly to the end user. Consumer exhibitions play a prominent role in consumer product marketing. In fact, many companies use consumer exhibitions as a testing ground for new products and a forum for expanding positive public relations efforts. For example, popular B2C exhibition goods and services include automobiles, boats, home furnishings and interior design, sporting goods and recreation, landscape and garden supplies, cooking and wellness and health care (see fig. 2.3.). Newer players in the market are the Comic-Con and fan-based conventions with an exhibition hall.

Attendance at B2C exhibitions is unrestricted; however, an entrance fee is often charged. Like their B2B counterparts, many consumer exhibitions now offer educational programming, seminars, panel discussions and other entertainment as part of the overall package. Consumer exhibitions comprise approximately 24 percent of the exhibitions produced in the U.S. (Exhibition Industry Census, 36).

Business-to-Business (B2B)

TYPES OF EXHIBITIONS

Business-to-Consumer (B2C)


52


HOW EXHIBITIONS ARE ORGANIZED

The exhibition owners or hosts typically organize the exhibition with their own staff; however, sometimes the process is more efficient to outsource planning and managing of the event to a specialized third-party event organizer. A highly experienced third-party event organizer can purchase services at discounted prices based on a volume of business, in addition to bringing a high level of professionalism to the organizing process.

An exhibition organizer deals with many different constituencies, e.g., attendees, and exhibiting and sponsoring companies. Each group has multiple reasons for participation – without them, no event would exist. The attendee is usually searching for new products, services, and sources, and spends time with current exhibiting suppliers. The event also provides an opportunity for education, networking, and gathering intelligence from industry leaders. From the exhibitor’s perspective, an exhibition provides the ideal environment to introduce new products and services. It represents a three-dimensional environment where a product’s features can be demonstrated in real time and permits the attendee to use the traditional human senses (sight, hearing, taste, smell and touch) to inspect and learn about the product or service. Exhibiting company representatives usually benefit from the same offerings and experiences as the attendee.

Many other entities are essential to producing a successful exhibition. First among them is the facility, which may be a purpose-built convention center, hotel, fairgrounds or other facility suitable for hosting an exhibition. Exhibition organizers tend to be very creative, innovative people.

The more barren a facility, the greater the need for a services contractor to handle materials, add decorating touches, provide carpet and furniture, and other items that might be needed by the organizer and the exhibiting companies. Other companies that may be needed to produce an exhibition include electrical contractors, organized labor involving many skills and crafts, registration and an audiovisual company.

Private Exhibitions and EventsCorporations (for profit) and associations (not-for-profit) sometimes produce conferences with exhibitions. Many of these exhibitions are not open to the public; thus, they are called private events. They are usually designed for user-groups, best customers, dealers or franchise operators. In other words, the attendees are invited to the event and must meet eligibility criteria to register and attend.

Some manufacturers have contract requirements to advise their best and largest customers of new product plans. For example, a computer manufacturer selling thousands of units to an airline frequently schedules a meeting of all major users, and reveals future development plans and timelines to all of them at the same time. This approach enables the customer to make more informed buying decisions about ordering replacement or additional units. These events frequently include a small exhibition by original equipment manufacturers (OEM) that permit the biggest end-users to speak directly with a component supplier.


53


Power buyers. This practice has expanded to other industries that have power buyers. For example, major retailers such as Walmart or Home Depot may demand advance information on new products. They do not want to be surprised by a new product being introduced by one of their major suppliers at an industry exhibition. They require advance notice and may even have ordered the new product and have it warehoused simply waiting for the product announcement at the industry exhibition to distribute the product to their stores.

Dealer and franchise operators. Events for this group serve a different purpose. First, they provide an opportunity to hear from the company executives regarding future sales and marketing plans and new product development. Second, most corporations develop approved supplier lists. These suppliers then exhibit their products for the purpose of selling to the attendee. In this case, events can be very large and may last over a period of weeks, especially if the company brings in franchise operators in waves. For example, the biennial McDonald’s franchise meeting usually has four waves over four weeks. Exhibits include approved suppliers of items needed to outfit a McDonald’s store, from paper goods to kitchen equipment.

Another example is a dealer/jobber event conducted by an oil and gas company, which may show three car wash options, four gas-pump styles, and even franchise food and convenience store options. These closed events are examples of how exhibitions advance the sales process and how products are brought to market.

EVENT GROWTH MANAGEMENT

A successful event frequently reaches a point of maximum size, which could be limited by facility capacity, ratio of attendees to exhibiting companies, or it is just too large to effectively and efficiently manage. Organizers then look for alternative ways to manage the event through replication or verticalization. Additionally, organizers may want to grow an event, and may use one of those methods, as well as internationalization of the event.

ReplicationOne technique is to replicate the event in another location, which can be accomplished by a simple bi-coastal event or a more complicated series of regional events. Regional exhibitions tend to be smaller and draw a regional audience. Bi-coastal events may remain national or international in scope. Another option is to split the show into two or more events and market the individual event to a specific part of the audience. For instance, attendees might be separated on the basis of job category, product use, purchasing power, purchasing frequency, or other criteria. This could be quite useful if marketing tactics utilized by the exhibition organizer or by the exhibitors are specific to attendee type. In the end, the marketplace will ultimately determine how much expansion it will tolerate.

Replication

GROWTH MANAGEMENT

Verticalization

Internationalization


54


Figure 2.4. Association of Equipment Manufacturers (AEM) CONEXPO-CON/AGG 2014 (Source: Oscar & Associates)

VerticalizationAs mentioned earlier in this chapter, vertical events can be created out of mega horizontal events. Spinning out such events, however, can result in a negative impact on the mega event and the event organizer. Vertical events, though, can be beneficial for the attendees. When the attendees, for instance, want to network effectively with other attendees, a smaller event can make the task of connecting with each other easier. When attendees need significant time one-on-one with exhibitors, the smaller show can make that interaction possible. When attendees have limited time for an exhibition due to other demands, such as workshops and training sessions, the smaller event might be useful. Vertical events can also be useful to exhibitors.

InternationalizationSome exhibition owners seek to extend their reach and brand internationally. The exhibition is a very effective means to achieve that goal. Moving into the international arena is a daunting task; organizers are wise to search for a partner already active in the new location to help achieve their goals. Internationalizing may increase the audience, increase the number of potential exhibitors, and may require replication or verticalization to be successful.

SUMMARY

Exhibitions were and still are the building blocks of face-to-face marketing. The traveling salesman is a historic footnote of the last century. In today’s business environment, suppliers are in constant digital and telephonic communication with their customers, but that kind of impersonal contact does not convey how the customer is actually feeling about the relationship. Successful companies want to have conversations with their customers. Nothing substitutes well for the face-


55


to-face experience and nothing can compete with the efficiency of seeing many customers and potential customers in just a few days at an industry exhibition. Exhibitions are simply the most efficient way to bring products to market.

KEY WORDS approved supplier

association

business-to-business (B2B)

business-to-consumer (B2C)

buyer

capital item

closed event

corporation

exhibition

exhibition organizer

horizontal exhibition

internationalization

non-selling event

original equipment manufacturer (OEM)

power buyer

private event

public exhibition (consumer show)

replication

selling event

third-party event organizer

trade show

vertical exhibition

verticalization

DISCUSSION QUESTIONS1. Compare and contrast business-to-business and business-to-consumer

(customer) exhibitions.

2. What purpose do non-selling business-to-business exhibitions serve?

3. Why should the exhibition organizer understand the roles of attendees and exhibitors, as well as their reasons for attending and exhibiting?

4. What are some elements essential to producing a successful exhibition?

5. List advantages and disadvantages for managing an event using replication, verticalization, and international expansion.


57

CHAPTER

3

“Leadership and learning are indispensable to each other.” – John F. Kennedy

LEARNER OUTCOMES


1. Identify the variety of jobs that are available in the exhibition industry

2. List the skills and characteristics required for a successful career in the exhibition industry

3. Discover paths that prepare future event professionals

4. Discuss the average compensation

CAREERS IN THE EXHIBITIONS AND EVENTS INDUSTRY




Marsha Flanagan, M.Ed.Vice President of Learning Experiences

International Association of Exhibitions and Events (IAEE)

Janet Sperstad, CMPProgram Director, Meeting and Event Management

Madison Area Technical College


58

CHAPTER 3 Careers in the Exhibition Industry

INTRODUCTION

A career in the exhibitions and events industry can be rewarding, challenging and ever-changing. There are opportunities for world travel, and working with different people and cultures, which can be very exciting. But it is certainly not a normal nine-to-five position as show organizers often work long hours in advance of an event, at the show site, and post show. Each year, organizers must reinvent their exhibitions to stay ahead of the competition and strategically position their show to grow. In his book, The World is Flat, Thomas L. Friedman points to technological advances and the increased competitiveness of emerging markets. For the exhibitions industry, this means that there will be ongoing challenges and opportunities for the industry and the people employed in it. As the saying goes, “You are only as good as your last show.”

What Jobs Are Out There?Virtually every continent has a market where opportunities exist for career development in the exhibition industry. Europe has an established exhibition industry, and emerging markets for exhibitions such as the BRIC nations (Brazil, Russia, India and China) all hold exhibitions. Future career opportunities will be plentiful, especially for people who can speak a local language.

Exhibition Organizer Jobs The industry is comprised of the show organizers who create and manage the exhibitions, and suppliers who provide products and services to support the exhibitions. Suppliers that serve exhibitions include convention centers and other exhibition facilities, hotels, housing and registration service providers, transportation companies, official services contractors, audio-visual companies, technology companies and specialized advertising and insurance agencies. Some industry professionals begin their careers in the industry as suppliers, gaining valuable experience, and then move into a position as an exhibition organizer. But the reverse is also true. It is possible to enter the industry as a show organizer, and then move to the supplier side.

Exhibitor Jobs There are also jobs within the companies who exhibit at shows. Common job titles often include the words marketing/communications/advertising manager, specialist or administrator. These people, depending on their positions within the company, may manage trade show logistics and operation, handle the advertising or administer the public relations programs for a few or a large number of events. They may be involved in setting strategy, determining which events they are going to exhibit in, and monitoring budgets and developing methods for determining the return on investment resulting from their participation in all marketing channels. Other possible positions in an exhibiting company may include people who have operational and logistical responsibilities. Individuals in these positions may provide input into developing strategy, organizing pre-show sessions or post-show meetings, planning special events, supervising the booth set-up on-site, attending and working the event.


59

Careers in the Exhibition Industry CHAPTER 3

The detail work of managing and implementing an organization’s exhibiting program requires someone who is very detail-oriented, and also has the ability to work with outside vendors. Individuals in these positions are responsible for working with freight companies and service contractors; keeping track of where their exhibit booth(s) may be at any given time; making sure the booth will arrive on time; ensuring that all the collateral and promotional giveaways arrive on time; ordering furniture and carpet, telephone lines or Internet access; ordering refreshments; and scheduling staff and training them to work the booth. Some organizers may participate in 50 events in one year, resulting in a lot of travel!

Supplier Jobs There are many other paths to take when beginning a career in the exhibition industry, including gaining valuable experience with event registration companies, convention centers, local convention and visitor bureaus and hotels. Hotels often have entry level positions that require no previous experience in the business and often promote from within. For example, one prominent hotel executive started her career as a secretary in the catering department of a large hotel and rose through the ranks.

Official services contractors provide exhibition management and exhibitors with a wide range of services. In addition to designing and setting up the show floor, the official services contractor coordinates all the services provided to exhibitors, including pipe and drape and carpeting, and coordinates move-in and move-out procedures. They may also provide the signage, installation and dismantling of booths, and work with labor unions in the U.S. to provide the labor for setting it all up.

Because every event normally has an official services contractor, there are many entry level opportunities for people in sales, account management and operations. Some common titles include operations director/manager, account executive, exhibit service manager, and sales director/manager. Positions with a service contractor, as with most suppliers, generally require a moderate amount of travel.

What Skills Does It Take to be an Exhibition Professional?Opportunities abound for persons seeking a dynamic and challenging career in the exhibitions and events industry. Employers are looking for individuals who are enthusiastic, creative, have a good attitude, and are team players. Having an entrepreneurial mindset – the ability and interest to constantly look for opportunities in the marketplace for the organization – is also helpful.

By their very nature, all jobs in the exhibitions industry require that the people employed in the industry:

• Be detail-oriented

• Have the ability to develop and follow timelines

• Be able to effectively manage multiple tasks

• Be customer-focused

• Be enthusiastic

• Have a good attitude and “can-do” spirit


60


• Be team-oriented

• Creative thinker

It would be unrealistic, however, to expect that one person on staff will have all the key characteristics; that is why team orientation is so important throughout the exhibition industry. Each person on the team will have his or her own unique set of skills and characteristics and complement someone else’s. Understanding that someone is really good at analyzing the details, buy may not be very good at interacting with customers, is what makes a team effective.

Sales positions often provide a way for college graduates with degrees in business-related disciplines to gain entrance into an organization that produces exhibitions. People with good selling skills are always in high demand. A person who sells the exhibit booths for events must have a good telephone voice, be enthusiastic, able to understand and articulate the value proposition to exhibitors, build relationships with exhibitors, have a good customer service focus and be able to close a sale.

Marketing majors are also in demand, with the most important skill set being the ability to create and implement a marketing strategy. Marketing staffs also need to be able to understand targeted and one-on-one marketing, as well as be able to keep abreast of new advancements and how people want to receive information. As technology advances, blogs, podcasts, and other methods of digital marketing will become outdated, and new ones will take their place. After entering the job market in a marketing position, and learning as much as possible about a specific exhibition, the industry it is in, and the marketplace it represents, new opportunities will become available.

Advancing to an exhibition director or group exhibition director position requires an advanced set of knowledge and skills. These positions usually direct and manage the support staff, and the event itself. In addition to having the ability to see the big picture as well as the minutiae, the director must have a positive attitude, outstanding communication skills, and the flexibility to effectively supervise and motivate his or her team to produce an outstanding event. Although the director needs to be strong and assertive, it is still important to be open to discussing issues, thoughts and new ideas. The director also needs to be able to think and act quickly, if necessary, and communicate effectively in difficult situations, such as when an exhibitor is not pleased with the customer service, has a problem on-site, or expressed displeasure with the outcome of their participation in the show itself. The key to a good show director is having business skills such as communication and creativity, along with the ability to analyze long term opportunities and threats to the event.

In 2015, the U.S. Department of Labor (DOL), Employment and Training Administration (ETA) convened an advisory group composed of technical and subject matter experts to update the Hospitality, Tourism, and Events Industry Competency Model. One of the significant changes that emerged from the group’s deliberations was the redesign of the Tier 5 (industry technical) competencies to include competency groups by industry sector. One of the


61


new sector blocks is exclusively focused on meetings, events, and exhibitions management. From a national perspective, the outlook for meeting, convention, and event planners is strong. According to projections from the Bureau of Labor Statistics, employment in this occupation is projected to grow by 11 percent from 2016 to 2026, faster than the 6.5 percent average for all occupations. As businesses continue to recognize the value of professionally planned meetings, demand for the knowledge and ability to run successful meetings and events is projected to continue to grow based on the Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2016-2017 Edition.

One of the subject matter experts who worked with ETA on the competency model update is Janet Sperstad, Certified Meeting Professional (CMP) and Program Director, Meeting and Event Management, Madison Area Technical College. “In the past, event planning had generally been embedded in the hospitality sector and was not recognized as a separate specialty with its own skills and knowledge requirements,” says Sperstad. “Working with ETA’s advisory group helped to define the event management profession and put ETA’s competency model in the hands of practitioners. I’ve been working with organizations, academia and the event industry to adopt the model, which has been received with great enthusiasm and appreciation.” Sperstad provided ETA with an array of resources to document the body of knowledge required by event professionals. As a result, Tier 5 of the updated competency model reflects the specific meetings, events, and exhibitions management industry standards delineated in these resources, including strategic planning, risk management, financial management, sustainability, human resources, event design and marketing.

Source: www.careeronestopshop.org/competencymodel

“In the past, event planning had generally

been embedded in the hospitality sector and was not recognized as a separate specialty with its own skills and knowledge requirements.” – Janet Sperstad, CMP


62


“The meetings, events, and exhibitions management competencies are embedded in our curriculum at Madison,” says Sperstad. “Students can use ETA’s competency model to demonstrate to employers what they have achieved. The model provides a conceptual framework for crafting job descriptions, working with teams and getting promotions.” The International Association of Exhibitions and Events (IAEE), another industry champion that worked on the model update, is developing a workforce readiness assessment using industry resources such as the Events Industry Council’s Industry Insights tools; DOL Hospitality, Tourism, and Events Industry Competency Model; IAEE’s The Art of the Show and career center resources to test a student’s working knowledge of the exhibition industry.

“This tool will benefit students, practitioners and faculty,” says Sperstad. “It will enable us to map career pathways for students from exhibit and event coordinator to exhibit and event manager to project director.”

“IAEE is excited to be a part of this ETA initiative,” says Marsha Flanagan, M. Ed., Vice President, Learning Experiences, IAEE. “The updated competency model is assisting in the creation of many tools and services to further demonstrate that the meetings, events, and exhibitions industry is one of choice.”

What is the Expected Salary in This Field?Salaries for jobs on the exhibition organizer side of the industry vary depending on a variety of factors, including geographic location, organization type (corporate show producer, independent show producer, and not-for-profit association show producer), industry served, size of show and revenue generated, years of experience, gender, and job title.

As might be expected, independent show producers tend to earn a higher salary and make larger bonuses than the not-for-profit association show organizer, given the fact that salaries for those working for associations tend to lag behind market. The gender gap still exists with men earning 41.5 percent more than females. Experience plays a big part in earnings, with the median salary for persons with less than three years of experience earning a median salary of $40,000. However, salaries increased 44 percent during the first ten years in the industry, and 51.9 percent over the next ten years.

Where to LookMany of the major associations have job boards on their websites, with positions listed ranging from entry level to experienced mid-management level positions. Many also list opportunities for internships to obtain hands-on experience, and to help determine if the exhibitions and events industry is a good fit for the job-seeker.

Finding a job in the exhibitions industry is just like any other industry. A good place to start is to review the professional certification programs offered by each organization. Most have student membership rates and student chapters. Get involved. Join one or more, and become engaged in the work of the association. Sixty to 70 percent of all jobs are found by networking. Once employed by an organization, keep the following thoughts in mind:

“The updated competency model

is assisting in the creation of many tools and services to further demonstrate that the meetings, events, and exhibitions industry is one of choice.” – Marsha Flanagan, M. Ed.


63


• Salary surveys indicate that people working toward or completing an advanced degree earn more money

• Organizations will reward employees with a higher salary or a bonus for attaining professional certifications

In fact, many employers will view advanced degrees and professional certifications as professional development, and may cover all or part of the expense.

Why Join Professional Organizations?Although knowledge and credentials will go a long way toward getting into the exhibition industry, joining a professional membership association will provide access to a lifetime of learning and leadership skills. It can also aid in the hiring process by providing networking connections with influencers and decision-makers. Finding a job is made a lot easier if connections and relationships are made. The International Association of Exhibitions and Events (IAEE), Professional Convention Management Association (PCMA), Exhibition Services and Contractors Association (ESCA), Destinations International (DI), and American Society of Association Executives (ASAE) are some of the key organizations supporting the exhibition industry.

SUMMARY

For thousands of people worldwide, a career in the exhibition industry provides opportunities that other more traditional business careers do not provide. Planning, producing and selling products and services relating to exhibitions provides endless opportunities to learn about new industries and products, to meet new people, to travel to new places and to confront new challenges and gain new skills. There are many routes to the top for the enthusiastic and ambitious person in the exhibition industry.

KEYWORDS Events Industry Council’s Industry Insights tools

Events Industry Council

Hospitality, Tourism, and Events Industry Competency Model

professional membership association

QUESTIONS FOR DISCUSSION1. Do you think employees should value degrees, professional certifications,

and life experience equally?

2. What would be the best job you could imagine in the exhibitions industry?

3. What might be the very first step in getting your dream job?


65

SECTION

2EXHIBITION PLANNING

CHAPTER 4Strategic Enterprise Management: Process and Outcomes

CHAPTER 5Project Management: Managing Successful Exhibitions

Planning for an exhibition is a multi-faceted, multi-layered process that continues throughout the various stages of planning, opening the exhibition, monitoring it in progress, recording the outcomes, and evaluating. This section focuses on the process of exhibition planning and the development of evaluation methods.

The strategic plan must be carefully articulated to align with the organization’s mission, vision, goals, and objectives, along with well-articulated plans to guide stakeholders, including staff. Budget and financial management goals must be addressed early in the process, again aligning with the strategic plan. With a focus on both exhibitors and attendees, education in the exhibition hall provides everyone with opportunities to learn and focus on the “take-aways” from the experience.

Finally, evaluation! It is often thought of as the last step in the process, after everyone has gone home or back to the office. While somewhat true, evaluation is much more than this simple explanation. Evaluation begins with analysis of data from the previous exhibition and should continue through each step in the exhibition management process.

CHAPTER 6Budget Management

CHAPTER 7Financial Management Strategies

CHAPTER 8Learning Experiences on the Exhibition Floor

CHAPTER 9Sustainability

CHAPTER 10Evaluation


67

CHAPTER

4

“Strategic management is not a box of tricks or a bundle of techniques. It is analytical thinking and commitment of resources to action. But quantification alone is not planning. Some of the most important issues in strategic management cannot be quantified at all.” – Peter Drucker

STRATEGIC ENTERPRISE MANAGEMENT: PROCESS AND OUTCOMES

LEARNER OUTCOMES


1. Define strategic enterprise management

2. Compare and contrast the various models of strategic planning

3. Identify and define the major components of a strategic plan

4. Describe a basic strategic planning process

5. Differentiate between strategic enterprise management and the strategic planning process

6. Explain the benefits of strategic planning and management

Steven Hacker, CEM, CAE, FASAEPrincipal

Connect Meetings

Nancy Milani, CEM, CMPVice President, The Building Show & Expositions

Informa Canada

B.J. Reed, PhD, CMPProfessor, Department of Media Studies

Director, Teaching & Learning CenterUniversity of Wisconsin – Platteville

Stephanie Selesnick, CEMPresident

International Trade Information, Inc.


68

CHAPTER 4 Strategic Enterprise Management: Process and Outcomes

INTRODUCTION

Strategic enterprise management (SEM) has been around for decades and has become a fundamental process in corporations, not-for-profit associations, and government agencies. Most organizations engage in some kind of strategic planning. What many organizations fail to do is transform the way they conduct business through strategic planning.

The deliverable in SEM is the strategic plan. A strategic plan is often confused with a business plan, a project plan or a marketing plan. However, strategic planning at the enterprise level is much more than any one of these plans (see fig. 4.1.). In fact, a strategic plan is more than the total of all of these plans added together. Then, what is a strategic plan?

For the large, complex enterprise, a strategic plan is a document that defines the organization, directs all other plans and associated activities, and provides a strategic concept map to guide employees in all they do for the organization (Palmatier 30). SEM is an approach by senior management to direct the organization’s staff and functions through:

1. Analysis of the existing enterprise’s resources, initiatives, capabilities, and product or service

2. Allocation of resources

3. Assessment of the enterprise’s activities; and

4. To fulfill the enterprise’s mission and accomplish goals on behalf of owners and/or stakeholders

If the enterprise hosts one exhibition per year among many other activities and services (a not-for-profit association, for instance), the exhibition itself would be planned through a project management plan. If the enterprise hosts numerous exhibitions in a year (a for-profit business that manages exhibitions of many types, for instance), the organization will likely have a separate unit for the marketing function and that unit will follow the marketing process. Either kind of enterprise will have an enterprise-wide model for strategic planning, and that strategic plan will determine if the organization should host exhibitions and, if so, how many it should host each year. Exhibitions would be seen, in either scenario, as activities selected on the basis of how well they might utilize resources and meet enterprise goals, as described in the strategic plan. If the enterprise exists solely to host a single exhibition, that enterprise could use a strategic plan focused solely on the exhibition itself, but many organizations have multiple activities besides one exhibition.


69

Strategic Enterprise Management: Process and Outcomes CHAPTER 4

Figure 4.1. Various Enterprise Plans

STRATEGIC PLAN

PUBLICRELATIONS

UNIT

MARKETINGUNIT

EXHIBITIONPLANNING

UNITPROCUREMENT

ENTERPRISE ENVIRONMENT

PRCampaign

MarketingPlan

ProjectManagement

Plan

Policies&

ProceduresBUSINESSPLAN

STRATEGIC PLANNING MODELS

Various models exist for strategic planning, and each model has advantages and disadvantages (see fig. 4.2.). Typically, the model is selected based on the personal preference of senior management, or by a consultant or consulting firm hired to conduct the enterprise’s strategic planning process. A critical situation the organization faces may also suggest one model over another. The models fall into two categories: linear planning, which includes the vision, issues, alignment and scenario models; and non-linear planning, which includes the systems, real-time and hybrid models (Texas 15-18; McNamara, sec. 1-6).

VARIOUS MANAGEMENT PLANS IN BUSINESS

Strategic Plan: This is a systematic analysis of an existing enterprise, focused on a vision or other significant concept, and it is used to direct management decisions for that enterprise.

Business Plan: The business plan describes the business, its internal organization of resources, its product or service, customers, and its potential market niche and share. The business plan is utilized to establish or reorganize a business and to solicit funding.

Project Management Plan: The project management plan is used to guide a specific project from concept to delivery; it focuses on the project team capabilities, resources and deliverables.

Marketing Plan: Used to guide marketing staff activities, use of resources, and measurement of achievement; the marketing plan is based on sound goals and objectives set specifically for this business unit. This plan should align with the strategic plan for the enterprise.

Figure 4.2. Various Management Plans in Business


70


Linear Planning A traditional approach to strategic management, linear planning models engage in a careful, step-by-step process to develop enterprise strategy. Linear planning has a well-established body of evidence to support efficacy. It is well accepted by stakeholders, since the approach is relatively easy to explain, understand, adopt, monitor and measure.

Vision model. The linear planning model commonly used by small organizations is known as the vision model (see fig. 4.3.) and it offers a three-to-five-year plan. This model is based on a vision communicated by senior management, and often board of directors, and identifies the purpose and mission of the organization. Brainstorming by all stakeholder categories provides the goals, objectives, and activities for this plan. Assessment of the plan begins with implementation and continues as long as the plan is in place (Texas 15; McNamara, sec. 1).

Figure 4.3. Vision Model for Strategic Planning

VISION

MISSION & PURPOSE

GOALS & OBJECTIVES

STRATEGIES & ACTIVITIES

IMPLEMENTATION & ASSESSMENT

Issues model. When an enterprise is quite sensitive to issues that arise in its environment, the issues model (see fig. 4.4.) for strategic planning is appropriate. In this approach, the organization begins with identifying and articulating the most significant issues the organization faces. Representatives from each stakeholder category are solicited to brainstorm ideas for addressing the identified issues. The focus in this approach is typically short term – one year or less. The strategic plan is a compilation of the issues and the ideas for addressing each, and should include the implementation plan and assessment strategies (McNamara, sec. 2). The plan is adjusted as needed, based on assessment data. The issues model is useful for enterprises in a dynamic environment to re-focus or re-direct on an issue currently occurring. An example of using this model would be if an event had to be suddenly cancelled.

Identifyissues

Planactivities

Implementthe plan

Assessactivities

Figure 4.4. Issues Model for Strategic Planning


71


Alignment model. The alignment model (see fig. 4.5.) is used when the enterprise needs to align resources with a new articulation of mission and programs. Even highly complex enterprises with thousands of employees can utilize this model to increase operational efficiencies. The enterprise appoints a team to review the mission and to identify key programs or initiatives. Once selected, the programs are prioritized. Other teams will identify enterprise resources and, working together, the teams allocate those resources according to established priorities (Texas 16). If a company downsized, or reorganized, and a new leader was brought in, this model may be used to realign staff and duties.

REVIEW

PRIORITIZE

ALLOCATE

Mission

Program 1 Program 2

Resources Resources Resources

Figure 4.5. Alignment Model for Strategic Planning

Scenario model. When an enterprise is influenced significantly by outside forces, the scenario model (see fig. 4.6.) for strategic planning is a viable approach. With this model, the strategic planning team identifies external forces and develops potential scenarios regarding how these forces might change. The scenarios should be worst case to best case, with about three scenarios for each significant external force. The team then considers how the organization might respond to each scenario and examines these potential responses for trends or commonalities. The trends and commonalities suggest the best use of resources and the most likely scenarios given the information presented at this point in time. The scenario model helps an organization think critically about available options in a dynamic environment, instead of making quick decisions in a high-pressure time frame (Texas 16; McNamara, sec. 4). This style is commonly used for risk management.

SCENARIO 1SCENARIO 2

SCENARIO 3

ResourceA

ResourceB

ResourceF

ResourceH

ResourceDResource

C ResourceE

ResourceG

ResourceI Resource

J

Figure 4.6. Scenario Model for Strategic Planning

Vision

LINEAR PLANNING MODELS

Issues

Alignment

Scenario


72


Non-linear PlanningNon-linear planning allows the organization to approach strategy from multiple perspectives, and is particularly valuable in the large, complex organization that must survive in a volatile environment. This approach to strategy also allows for multiple stakeholder groups to undergo the strategy planning process with an approach that fits their role in the enterprise, and then merge their results with those from other stakeholder groups. Non-linear planning can be difficult to manage and may take more time than linear planning. It may be more difficult to explain to the stakeholder groups involved in the process and may cost more in resources to undertake. Non-linear planning is typically an ongoing process which is never complete. The advantage of the process is its elasticity, its responsiveness, and propensity for a long lifecycle, with modifications as needed.

Systems model. A systems model (known by a variety of titles) is based on the theoretical work introduced by Bertalanffy (Bertalanffy Center), which suggests that organizations are systems, much like the human body, where all parts are connected and each system is unique. With this approach to strategic planning, the enterprise creates a process that fits different units within the enterprise. Key stakeholder units must be identified so each has the opportunity to develop a vision, priorities and needs: “The decentralization characteristic of the post-bureaucratic organization clearly has merit in contemporary environmental settings. Distributed decision authority improves organizational effectiveness in dynamic industries” (Andersen 1290). The systems approach to strategic planning tends to be ongoing, over years, and is clearly a shared analytic and decision-making model. It requires patience and commitment by stakeholders to achieve success (Texas 17).

Real-time model. In a dynamic external environment, the enterprise might need to approach strategic planning in real time, so that decisions are made strategically, but quickly. Highly flexible and responsive to current conditions, the real-time model relies on continual monitoring of status. This model could be quite useful in enterprises that utilize the project management approach to business, where resources are allocated to projects and programs (a collection of projects), and reallocated quickly and appropriately, as projects move through their lifecycle. Some managers and key stakeholders may see real-time strategy as a lack of planning rather than a dynamic process that responds quickly to changes in the business environment, but this approach may work well for the organization in a state of flux or sensitive to rapid environmental changes (McNamara, sec. 6). Real-time planning is often used on the show floor when decisions have to be made quickly.

Hybrid model. The inevitable hybrid model was developed by enterprises that have a need for more than one of the common models to strategically manage operations. While the tendency to blend models is strong, the enterprise using a hybrid model is best served by carefully constructing the model before engaging it, so commitment to the process is evident across stakeholder units. A linear model and non-linear model could be blended successfully, but utilizing two or more linear models is common (Texas 18).

Systems

NON-LINEAR PLANNING MODELS

Real-time

Hybrid


73


STRATEGIC PLAN ELEMENTS

The strategic plan begins with directional statements, such as the mission, purpose, vision statement, and a slogan. Goals and priorities will be included in the strategic plan, as well. Some plans will articulate underlying assumptions to inform all stakeholders of ideals and values as well as concepts that drive strategy. The time frame of the strategic plan must be stated, as well as why the timing was appropriate for the strategic planning process.

Directional StatementsDirectional statements for the enterprise include several types, from simple phrases to lengthy paragraphs. The organization’s purpose statement and mission statement are not synonymous. They are unique and complementary statements that serve as general guidelines for the organization’s activities. The vision, mission, and purpose statements are focused on the entire organization, not single departments, projects or activities. They are part of the organization’s strategic plan; as such, the strategic plan may adjust the mission and purpose statements to communicate more clearly with stakeholders, but the basic purpose and mission tend to stay relatively stable, even in an increasingly changing business environment. The slogan, however, may be stable or change annually.

Purpose. The purpose statement defines the organization’s reason for existing – the why of its existence – and it tends to be brief, often just one sentence. A sample purpose statement for a corporation that hosts numerous events might be: “We exist as a full-service exhibition and event management company with capabilities throughout the world.”

Mission. The mission statement explains what the organization does in terms of its target audience, its service or product, and expected long-term outcomes. Mission statements may be quite long, but clear and simple can be effective. A sample mission statement for an association that hosts one exhibition per year could be: “We exist to provide educational and networking opportunities for our members through multiple delivery mechanisms. Our priorities are to advance the professional status of our members through knowledge and skill acquisition, setting industry standards, and supporting research that serves as a foundation for ethical and effective practice.”

Vision. The vision statement defines the long-term effect the organization’s leadership hopes to achieve. The vision statement tends to change with leadership and should change more frequently than the mission or purpose statements do. It may be one sentence or a lengthy essay. A sample vision statement for a small corporation that is poised for growth and increased market share could be: “We will become the industry standard for hosting face-to-face exhibitions that appeal to the Latin America mass market, attract global business exhibitors, and gain extensive media coverage. Our brand will be known worldwide as the leader for exhibition management and will be emulated by our competitors.”

Slogan. Many organizations also spend a great deal of resources to craft a meaningful and appealing slogan, or sometimes referred to as a tagline. That slogan is used most often in branding the organization, and its products or services.

Purpose

DIRECTIONAL STATEMENTS

Mission

Vision

Slogan


74


The slogan is not a suitable substitute for the mission, purpose, or vision for the organization, but may be used to express these concepts eloquently. Slogans are rarely complete sentences and may be only five or fewer words. Typically, slogans in the U.S. are protected by trademark licensing to prevent their use by competitors within the same geographic reach or copyright law internationally. A sample slogan for an entrepreneurial venture in exhibition management is, “Making your vision a reality!” Exhibitions tend to have their own slogan, which should be complementary to the enterprise slogan, if one is in place.

Goals and PrioritiesGoals and priorities must be set in the strategic plan to direct the organization’s strategies and activities. Goals are broad statements of achievement. Objectives are specific benchmarks that enable the achievement of the ultimate goal. Goals and objectives are typically one sentence. Goals are general, but objectives cover time, audience, and a specific activity or outcome that can be measured. Goals should be motivating, whereas objectives are challenging, yet achievable. Objectives are the tactics that allow the attainment of goals. Use the SMART method when defining goals: Specific, Measurable, Attainable, Realistic, Time sensitive.

For the strategic plan, the goals are focused on the organization as a whole, rather than individual units. According to management consultant George Palmatier, “Strategic goals are recognized as ends to which efforts are to be directed. Strategic goals require significant changes in the way in which the business operates and may take several years to implement” (31). When goals have been set, the organization must prioritize them, and resources are typically allocated in part on those priorities. Resources are also allocated on the basis of return potential, as well as need.

Underlying AssumptionsUnderlying assumptions are values, ideals, or concepts held by stakeholders that influence the strategic plan. One underlying assumption for some organizations is that all stakeholders should have a voice in strategic planning and that voice will result in a more achievable, effective, and motivating enterprise strategy. Underlying assumptions are common, but may be somewhat risky, beliefs about human behavior, economic systems and future conditions. These assumptions may not be stated in the strategic plan, but careful analysis can reveal their influence on the plan’s development. The risk in not stating the underlying assumptions clearly is that stakeholders may have different assumptions and may not agree with the assumptions of others, which could lead to ineffective strategies, goals and enterprise performance. When possible, the strategic plan should state underlying assumptions. If evidence is not readily available to support the assumption, the organization should strive to investigate it further, before building strategy on a less than ideal foundation. In times of rapid change underlying assumptions that may have been traditionally correct can often be overwhelmed by new and very different circumstances. A company, for example, whose business model relies upon the underlying assumption that most households will have a landline telephone may find itself compromised as more and more households abandon their landline telephones in favor of cellular phones.


75


TimingThe timing of strategic planning depends upon the organization, the type of strategic planning undertaken, and many other factors. Two types tend to be prevalent: formal and adaptive strategic planning (Andersen 1272). In the formal process, strategic planning is undertaken on a predictable pattern: every year, every three years, or a similar pattern. In the adaptive process, an internal or external event prompts the strategic planning process. A significant change in senior management, or an emerging trend in technology that threatens or alters the way an organization’s services are delivered might prompt adaptive strategic planning.

Another consideration for timing is the duration of the strategic plan itself. The duration should be stated, even if the statement simply suggests that the strategic plan will be updated annually or periodically. The model followed and the specific situation for the exhibition organizing enterprise will determine the duration of the strategic plan.

STRATEGIC PLANNING PROCESS

The process of strategic planning looks much like the process used for marketing and project management, since these functions are based on the same business model. The difference in SEM, though, is one of scope, as well as depth. Strategic planning supersedes all other subordinate forms of business planning such as marketing and project management. A common technique often used at the onset of the planning process is the SWOT Analysis: determining the Strengths, Weaknesses, Opportunities, and Threats of your organization or event.

Stakeholder ParticipationThe development of a strategic plan requires input and deliberation from the appropriate stakeholders within the organization. A stakeholder is any individual who has an interest in the enterprise. Stakeholders may include employees, customers, media, elected public officials and/or stockholders to name just a few. When the stakeholder group is quite large – exhibitors, for instance – the organization may select a representative sample of that group to participate in data provision (many times creating a mix of small, medium and large companies to ensure appropriate input is gathered). Some stakeholder groups may be divided into categories – the attendees, for instance – and each category is represented in the collection of data. Other stakeholder groups – board members, for instance – will participate as a “group of the whole.” Stakeholder groups may include vendors, sponsors, media, and both current and prospective exhibitors – again, anyone with an interest in the enterprise.

In a study of strategic planning, researcher Torben Juul Andersen discovered that when the process is linked to shared decision making, the enterprise will realize a significant benefit: distributed decision authority, i.e., the ability of lower-level managers to take initiatives without formal approval, has a significant positive relationship to economic performance in dynamic environments” (1287). Without the evidence provided by Andersen and other researchers investigating the topic of shared decision making in business, the underlying assumption could be that senior management should make all decisions and shared decision


76


making is nonproductive. With Andersen’s study, that shared decision making utilized during the strategic planning process not only leads to shared vision, but positive economic performance in the long term. Distributed decision authority is especially important due to multiple generations in the workplace.

Data Collection and AnalysisData is collected across these groups to answer specific questions, which may be determined before or during the data collection process. Then the data is analyzed to determine patterns, solutions to problems and recommendations. Data collected will be about programs, initiatives, projects, assets, liabilities, capabilities, responsibilities and outcomes. Data may be quantitative (numerical, with analysis based on sophisticated formulas) or qualitative (descriptive, such as comments or focus group opinions). Primary data (data collected on a specific question, and this question is relevant to the strategic planning process and usually gathered directly by the enterprise) or secondary data (on a related, though not precisely connected question and often secured from another source) may be used in the strategic planning process. The quality of strategic planning is based upon the credibility of collected data and appropriate analysis of that data.

Numerous questions may be asked during the data collection period of strategic planning, though these questions depend somewhat upon the approach utilized for strategic planning. Some typical questions might include:

1. Where is the enterprise at the moment?

2. Where do we want to go?

3. When do we intend to get there?

4. How do we get there?

5. How will we monitor progress?

6. How will we measure success?

The process of strategic planning is itself useful to the organization, in that stakeholders must communicate with each other and understand the motivations, vision, strengths, and weaknesses that meld human resources into a meaningful unit. The process also highlights assets and liabilities, and that helps the organization determine future development or growth-driving activities. Going through the strategic planning process allows the organization’s stakeholders to develop a common commitment to the organization’s long-term welfare. Researchers Poister and Streib stated “Strategic planning blends futuristic thinking, objective analysis, and subjective evaluation of goals and priorities to chart a future course of action that will ensure the organization’s vitality and effectiveness in the long run” (46).

Consensus and CommitmentStrategic planning for the enterprise involved in hosting exhibitions rarely proceeds in linear fashion from one step to the next. It is a creative process, and fresh insight or current events may alter previous analysis of data and decisions. Poister and Strieb found in their study of strategic management that effective use of the process resulted in a strong influence on budget requests, a connection to

Stakeholder participation

STRATEGIC PLANNING PROCESS

Implementation

Assessment

Data collection & analysis

Consensus & commitment


77


resource allocations, and a capital budget that reflects priorities in the strategic plan (53). Since strategic planning involves anticipating the future business environment, including economic forecasts for mid-to long-term in the industry served, staying abreast of changes and trends is imperative for an effective strategic plan. Being responsive to significant changes in forecasts is a challenge for the nimblest of businesses. A commitment to the strategic plan by all stakeholder groups, and strong leadership are necessary for enterprise success.

ImplementationPoister and Strieb cautioned that simply prioritizing goals and completing internal and external analyses are not sufficient for an effective strategic plan: “Strategic planning is an action-oriented type of planning that is useful only if it is carefully linked to implementation – and this is often where the process breaks down” (46). To maintain consensus and commitment all stakeholders should have a role in strategic plan implementation. They should also have a role in monitoring, whether that means determining what to monitor, how to monitor, conducting the monitoring activities, or analyzing the monitoring data for assessment. Implementation is the action part of the strategic plan and it makes the plan have life, as well as usefulness.

However, stakeholder groups often do not have identical experiences with the implementation of a strategic plan. According to researchers Jarzabkowski and Balogun, stakeholders in units of the business with high levels of power will be more dominant in their communication tactics and will see their roles as exclusive, whereas stakeholders in less powerful units will see their roles as inclusive and their communication tactics will be more subordinate. To integrate these positions, the enterprise needs to provide high levels of involvement for the less powerful groups, and the enterprise must encourage co-determination of strategic priorities across groups: “Strategic planning thus must be varied in the way that it is rolled out across different business units, in order to have integrative effects on the organization as a whole” (1282).

An action plan is part of the strategic planning process and is utilized during the implementation phase. The action plan usually follows these guidelines:

• Initiatives are broken into manageable parts

• Interdependent activities are set up sequentially, as needed

• Human and material resources are aligned strategically and coordinated appropriately

• Schedules of up to one year (or more) are established in advance

• The action plan is communicated to key stakeholders

AssessmentThe analysis of monitoring data and measurement of achievement comprises the assessment activities that must take place during strategic management. This analysis is conducted to determine what the data can tell the enterprise stakeholders about Return on Investment (ROI), tangible and intangible results, and whether objectives have been met or exceeded. Return on Investment (ROI) is


78


a calculation that assesses the ratio between an investment made by an enterprise and the value it receives as a result. This analysis leads to more strategic decisions, may result in a reallocation of resources, and may also lead to changing priorities. To keep the commitment of stakeholders strong, data and analysis must be timely, quickly completed, and transparently shared. The assessment procedures are much like the data collection procedures undertaken when strategic planning began. In fact, the enterprise typically integrates assessment procedures in daily operations to keep monitoring data fresh and applicable to management decision-making.

Generally, measurement matrixes are maintained through software for strategic management of resources. The software tracks a variety of data, including:

• Processes related to human performance

• Processes related to product (project) performance

• Internal and external stakeholder feedback; and

• Quality measurements: error rates, efficiency, effectiveness, etc.

BENEFITS OF STRATEGIC PLANNING AND MANAGEMENT

The benefits of the strategic planning process, regardless of the model followed, are almost always worthwhile for the successful enterprise. The process forces the organization to carefully develop and articulate the mission, purpose, and vision (when appropriate) for the organization. It involves all stakeholders and broadens the data and analysis available to the organization. It can lead to more responsiveness towards customers and other stakeholder groups, including employees.

Strategic planning typically increases efficiency in business while assessing all of its activities. Strategic planning tends to increase accountability and may increase transparency. An effective strategic plan provides the basis for performance management, and it provides a decision-making platform. Strategic planning can improve internal communications and employee morale (Texas 13).

In a research paper on strategic planning in dynamic environments, Andersen reported, “Strategic planning processes are positively associated with economic performance across industrial environments. Furthermore, strategic planning seems to have a somewhat higher positive effect on economic performance in dynamic industries” (1288). The benefits of strategic planning, then, are associated with a positive bottom line in business, even in dynamic business environments.

The benefits of management through strategic planning are also numerous. This management approach leads to competitive survival, as it focuses on results, benefits and assessment. It may help mitigate crisis exposure and/or damages, as it projects future outcomes and events. Strategic management anticipates change, often forces change, and encourages adaptability to change. When the process effectively involves stakeholder categories, management gains from a culture of commitment (Texas 13).

Of course, these benefits are not realized without costs. Strategic management requires human resources, time, and an appropriate allocation of other resources.


79


Strategic management can be perceived as inflexible, non-inclusive, and overly reliant upon compliance. Resistance to the strategic planning process can reduce its effectiveness and employee commitment to the outcomes. However, the benefits tend to be dramatic and useful to the enterprise and strategic management continues to be a popular tool for organization leaders.

Without a clear strategic plan, the organization will have departments that compete, centers that send out contradictory messages, and employees without direction, satisfaction, or dedication to quality in the organization’s product or service. The business will suffer. When employees are not focused, though they may be tremendously productive, goals will remain unmet. If an organization wants to devote resources effectively, to targeted outcomes, a strategic plan is essential.

SUMMARY

The enterprise engages in numerous planning processes, including project management planning for exhibitions, marketing, public relations, risk, and many other types. Most of these plans are for specific units or activities within the company, but strategic planning operates across the entire enterprise. It will influence these other plans, and the other plans must be aligned carefully with the strategic plan.

Strategic planning is the basis for strategic management and numerous models are available. The models tend to fall into a linear or non-linear format and include vision, issues, alignment, scenario, systems, real-time and hybrid models.

Strategic plans include:

1. Analysis of internal and external situations as appropriate

2. Direction statements, e.g. purpose, mission, vision, and slogans

3. Short and long-term goals and their priorities

4. Implementation or action plans; and

5. Assessment plans.

The process of strategic planning depends much on the model utilized, but generally includes establishing the process, involving stakeholders, collecting data, analyzing the data, making decisions, setting goals and priorities, communicating the plan and implementation. Monitoring and assessment follow these steps.

Most will agree that the benefits of strategic planning are numerous. Typically, strategic management is seen as a worthwhile exercise to align company resources with strategic goals, and to coordinate human resources and activities. The disadvantages are the length of time needed to conduct the process and the tendency to have a plan that is somewhat inflexible when the business environment is dynamic and evolving.


80


KEY WORDS

accountability

action plan

adaptive strategic planning

alignment model

business plan

concept map

directional statement

distributed decision authority

formal strategic planning

goal

hybrid model

issues model

linear planning

marketing plan

mission

non-linear planning

primary data

priorities

program

project

project management

project management plan

purpose

purpose statement

qualitative (research)

quantitative (research)

real-time model

Return on Investment (ROI)

scenario model

secondary data

senior management

slogan

SMART method

stakeholder

strategic enterprise management (SEM)

strategic plan

strategic planning

strategic planning process

systems model

tagline

targeted outcomes

transparency

underlying assumption

vision

vision model

DISCUSSION QUESTIONS1. Select a specific business and a strategic planning model for that business.

Provide a rationale for why that model fits that business.

2. What are the advantages and disadvantages to linear vs. non-linear models of strategic planning?

3. Why would multiple models of strategic planning evolve in enterprises across the world?

4. What are the stages of the strategic planning process?

5. Describe the various benefits strategic planning can deliver to an organization apart from the plan itself.


81

CHAPTER

5

“Delivering a project isn’t difficult. What’s difficult is delivering a project without first taking the time to plan properly.” – James Leal

LEARNER OUTCOMES


1. Identify the major elements in the project management process

2. Demonstrate the role of project management in development of goals and objectives

3. Create a project charter

4. Identify the elements in a work breakdown structure

5. Identify the requirements to effectively manage and motivate a project management team

PROJECT MANAGEMENT: MANAGING SUCCESSFUL EXHIBITIONS

Chris BrownManaging Member

Collaborative Project and Meeting Management, LLC

Angela Marini, PMPDirector, Project Management

Experient, a Maritz Global Events Company

Nancy Milani, CEM, CMPVice President, The Building Show & Expositions

Informa Canada

B.J. Reed, Ed.D., CMPProfessor, Department of Media Studies

Director, Teaching & Learning CenterUniversity of Wisconsin – Platteville

Dennis SmithPresident & CEO

Messe Frankfurt North America


82

CHAPTER 5 Project Management: Managing Successful Exhibitions

INTRODUCTION

Project management originated in the engineering and building construction industries, thousands of years ago. An understanding of workflow and the practical science of identifying logical steps form the basis for developing project management as a tool to achieve important outcomes even if with limited resources. Project management plays a significant role that leads to the creation of successful exhibitions.

Project management offers a number of tools and techniques that are easily adaptable for projects of any type, including exhibitions and events. The developmental stages of planning, executing, evaluating, and closing are brought together in project management.

THE EXHIBITION ORGANIZER AS PROJECT MANAGER

Exhibition organizers are managers of a project. A project manager (PM), who, in many event planning organizations, is the exhibition manager, leads an exhibition team, or operates independently, to plan and manage a successful event. According to Harold Kerzner, the PM is a relationship manager, managing relationships between project team members, between those members and functional units within the enterprise, between the team and senior management, and between the team and project stakeholders, whether internal or external to the exhibition host organization. While PMs may have management and technical skills, the PM may have a full-time position managing the relationships specified for an exhibition. In that case, the PM would work closely with various units in the exhibition host organization, including the event planning unit.

The role of project management is to plan, execute, and finalize projects according to the purpose, goals, and scope, determined by set deadlines and budgets. The PM coordinates the efforts of team members and contractors.

The PM is guided by two key documents: the scope statement, a document created and agreed upon by the project originator (also referred to as project sponsor, stakeholder, manager or customer) and the project charter. The scope statement describes the project with specific reference to the deliverables that must be achieved. The scope statement guides the PM throughout the project’s life cycle. The project charter includes the business needs, current understanding of the customer’s needs, and the new (project)… that is intended to satisfy” those needs (PMBOK: A Guide to the Project Management Body of Knowledge). The project charter provides the purpose of the exhibition/event, the measurable objectives, related success criteria, a project description and requirements (scope statement), risks, a summary milestone schedule, a summary budget, approval requirements, identification of the project manager and that person’s responsibilities, and specifies the sponsor and/or authority for the event (PMBOK Guide). Typically, a project charter is required by the enterprise before approval, or a green light is given for the project. Then, the detailed planning begins.


83

Project Management: Managing Successful Exhibitions CHAPTER 5

Projects begin with the development of short-term and long-term goals and measurable objectives specific to the exhibition. Written goals and objectives must be achievable and clearly framed. Goals are broad statements applied to a new project. Goals are what is to be achieved during the process. Effective objectives are based on SMART criteria. In other words, they must be specific, measurable, attainable, realistic, and time sensitive (see fig. 5.1.). An example of a SMART objective would be a statement that says, “The host venue for the exhibition will be determined on or before the 15th of September.” There is no ambiguity in a statement like this as contrasted to a non-SMART statement that might instead say, “We will secure a host venue for the exhibition in the autumn.”

Using SMART objectives and involving appropriate stakeholders from the beginning, the PM can select appropriate strategies and tasks that align with goals and objectives. The PM can also establish evaluation techniques that will help determine whether goals and objectives have been met by the project.

S pecific

Measureable

A ttainable

R ealistic

T ime sensitiveFigure 5.1. SMART Objective

Milestones are key deliverables that mark the completion of a significant phase or accomplishment, and become part of the objective-setting process. Milestones are set by the PM to motivate and evaluate the process of project implementation, and the success of the project management team’s efforts.

The major benefits of using project management in the exhibitions industry include:

• Promoting open communication, collaboration, and effective utilization of skill sets, i.e., the strengths of the PM and team members

• Utilizing tracking and planning systems that optimize enterprise resources

• Creating opportunities for cross-training team members; and

• Increasing the likelihood of success while driving team members to outperform established behavioral norms

The result can be summed up in two words – competitive advantage. This process keeps team members sharp and aware of their contributions. Wise decisions translate into satisfied exhibitors, attendees/visitors and financial supporters.

Send five tweets per potential exhibitor

by deadline

EXAMPLES OF MILESTONES

Deploy the first marketing email blast

by deadline

Launch the registration Web page by deadline

Develop the exhibitor directory and distribute

to key stakeholders by deadline


84


FUNDAMENTAL PHASES OF PROJECT MANAGEMENT

Five traditional elements form the framework of most projects and are applicable to the exhibition utilizing project management techniques. The five elements are diagramed in fig. 5.2. and provide the template for developing a project management plan. (PMBOK Guide)

Figure 5.2. Project Management Template

InitiatingPhase

PlanningPhase

ExecutingPhase

ClosingPhase

Monitoring & Controlling Phase

Initiating PhaseDuring the initiating phase, the exhibition is formally established with the following components:

1. Develop an initial project management plan. This plan includes the exhibition’s objectives, risks, deliverables, and scope of work (i.e., future course of action) once a decision is made to proceed with the exhibition (project)

2. Estimate needed resources. Explore potential sources and ascertain initial commitments

3. Complete a feasibility study. Determine how realistic and necessary this exhibition is. For example, conducting a feasibility study will help in determining whether a newly launched exhibition will be successful

4. Create a business plan. Clarify business problems needing a solution, identify stakeholder benefits and list project assumptions

5. Develop a budget. Identify initial funding sources, technology requirements, ethical and legal issues

6. Create a formal evaluation process. Determine how the exhibition plan can be evaluated, how evaluation will continue through implementation, and what will be evaluated at the end of the exhibition

7. Assign team members. Schedule a team meeting to review goals and provide the project owner an opportunity to outline the project, build enthusiasm, and generate excitement


85


Planning PhaseThe planning phase follows the formal affirmative decision for the management of an exhibition. A refinement of the tasks or action steps, resources, and time ensures each involved person understands the roles of the project manager and team members, as well as the sources of technical, monetary, and human resources. The team will layer this information into time frames. The budget forms the backdrop of the planning stage, and during this stage the critical path is established, which is the longest course of time from beginning to a successful end. This critical path determines the date of launch, milestones, and the earliest date for completion of the project.

Planning time frames vary depending on management style, the skill set of the manager and team members, and budget constraints. A new exhibition in a new market may have a lead-time of 12-15 months, or longer, when market research and case studies are thoroughly developed. Exhibitions occurring every year may take less time and require fewer team members.

The scope statement initially defined during the initiation phase is described in more detail, to include the complex tasks required. This detail becomes part of the project plan, which contains every document created for the management of this project.

Project plan. The five traditional elements of initiation, planning, executing, monitoring and controlling, and closing are all elements that should be included in a project plan. A project plan is a formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost, and schedule baselines. The person serving as the PM owns the creation of the project plan as well as its execution, although all functional units involved in the project will participate in the development of the project plan. Kerzner explains, the project plan answers the following questions:

• What will be accomplished?

• How will it be accomplished?

• Where will it be accomplished?

• When will it be accomplished?

• Why will it be accomplished?

To answer these questions, the project plan will contain several documents.

Work breakdown structure. The work breakdown structure (WBS) is a hierarchical decomposition of the work to be executed by the project team to achieve the project objectives. The purpose of the WBS is to:

• Identify the work to be done

• Identify the types of resources required for the work; and

• Develop cost estimates for each work element. (PMBOK Guide)


86


Each level of the WBS represents an increasingly defined part of the project. This delineation clearly defines the technical and human resources necessary to complete each subproject. Resources, time, and money can be saved during the development and implementation phases using a thorough WBS.

Project schedule (timeline). The project schedule is a mutually agreed upon document outlining deliverables associated with the project and has a vital role in the successful delivery of a project. A timeline, unlike other project specific documents, is often owned and updated by several members of the project team. Creating and maintaining schedule information serves two purposes: 1) it forms a written history of the exhibition, and 2) it provides a visual presentation of content for future exhibitions.

PROJECT SCHEDULE EXAMPLEACTION ITEM DATECritical path coordination October 3

Initial floor plan drawn November 2

Exhibition colors confirmed (drape, carpet, marketing materials)

November 2

Site inspection November 2

Move-in/move-out schedule confirmed with facility November 2

Submit kit preparation form November 2

Send kit proof to exhibition management November 12

Kit approved by exhibition management December 22

Exhibition look approval, structures, & graphics January 3

Initial exhibitor list submitted January 3

Kit delivered January 3

Exhibitor services kit online January 3

Submit aisle carpet floor plan January 31

Updated exhibitors list submitted January 31

Fire marshal floor plan approval March 2

Exhibition management shipping coordinated March 17

Exhibitor target appointments set March 17

Updated exhibitors list submitted March 17

Management projects list initiated – structures March 17

Completion times determined on all projects March 17

Confirm production team March 17

Coordinate travel & housing March 17

Management projects list submitted – furnishings & graphics

March 17

WITHIN A 30-DAY WINDOW ACTION ITEM DATECleaning order April 1


87


Update management projects list – all April 1

On-site operations production plan submitted April 1

Package orders submitted April 1

Proof graphics April 1

Move-in/move-out schedule re-confirmed with facility April 1

Updated exhibitors list submitted April 17

Tie down meeting held April 17

Update package orders April 17

Pre-exhibition meeting April 21

ID sign request April 24

Final floor plan review and approval April 24

Updated exhibitors list submitted April 28

Exhibition opens May 1

Planning resources. A budget, in project management terms, is used to manage limited resources. Budget assumptions provide the exhibition leadership with data and the source of the calculations. Creating a budget for a new exhibition presents a challenge, since historical data is nonexistent from which to draw fair assumptions. However, an examination of budgets from similar events, industries, specific market segments, and identifying the types of attendees/visitors, and their purchasing power and buying influence, helps to shape a budget. Exhibitions are generally for-profit ventures, where organizers of the exhibitions anticipate either a break-even or deficit outcome, but the exhibition may take two or three years to make a profit when launched. However, some exhibitions are planned by other entities such as a non-profit association, and are expected to make a profit for the host organization. These organizations often rely on exhibitors and sponsors to cover expenses requiring careful budgeting and smart sales relations.

Human resources. Exhibition organizers recognize that one person alone is unable to do all work required to start and close a successful exhibition. It requires the efforts of team members to perform the majority of work and apply skills to specific strategies and tactics so objectives are achieved. Asking and answering the following questions will help guide the leadership in acquiring a team to accomplish the goals and objectives of the exhibition.

• How many people are required, either full time or part time?

• What characteristics or basic skill levels are appropriate to each team member?

• How will team members effectively communicate, interact, work independently and/or as subgroups, and achieve their goals and objectives?

Some standard, functional positions result in more effective exhibition management. These include project leadership (primary direction-setter) and managers in strategy and communication; finance, budget and purchasing; marketing and sales; and operations. Successful PMs succeed in developing a


88


culture of accountability and ownership for the project shared by all participating members. Setting clear expectations and agendas means hearing and viewing proper oral and written communication from all team members. This helps the team keep to a schedule, increases the likelihood of team members contributing significant information to the project manager, and helps eliminate ineffective meetings. Constant communication is key to ensuring success.

During the initial planning phases of an exhibition, assessing the training needs of all team members and establishing appropriate sessions for selected team members is critical. During this assessment process, exhibition organizers determine the skill sets of team members, select which member is suited to achieve specific goals and objectives, and make appropriate assignments.

Executing PhaseThe executing phase is the process of completing the work defined in the project plan, which satisfies the project specifications. During project execution, results may require planning updates and re-base lining which considers changes to expected activity durations, changes in resource productivity and availability, and unanticipated risks. The executing phase will be determined by the project management team, and may be defined as when the exhibition occurs, or when contracts, negotiated during the planning phase, are fulfilled. Flexibility may be critical during the executing phase, as changes occur, unpredicted issues arise, and risks are realized. Re-base lining is defined as information that has either developed or changed sufficiently to warrant updating assumptions, issuing a revised schedule, revising the WBS, or otherwise altering the project plan. Any changes to the project plan occur because a simultaneous phase has been in motion – the monitoring and controlling phase.

Monitoring and Controlling PhasePlanning and executing are measured by monitoring task completion – on time and within the established budget. The two basic types of evaluations are formative (i.e., on-going assessments during the life of the project, used to check progress and redirect resources as needed) and summative (i.e., accomplished at the end of a project, used to determine how well the goals and objectives were met and to make recommendations for future projects). Formative evaluation tends to occur during the late planning phase and early execution phase; summative evaluation tends to occur during the late executing phase and early closing phase.

A methodic review of the financial performance of an exhibition is a critical aspect of monitoring the financial health of the exhibition and allows for adjustments if the financial goals are not being met.

Controlling task progress and outcomes influences how the audience, leadership, and stakeholders perceive the exhibition. Assessments during a project are focused on tasks and accomplishments, not on personnel performance. The purpose of monitoring and controlling is to determine if enterprise resources are being utilized advantageously and to adjust the project plan as needed.

Periodic team meetings are scheduled for all team members. Meetings can

Use accepted accounting principles

and practices, e.g., processing credit

card transactions in a secure e-commerce

environment

EXAMPLES OF MONITORING FINANCIAL

PERFORMANCE

Record incoming checks before disbursement

Reconcile checking and merchant accounts in a timely manner

Create financial statements, balance

sheet, and cash flow analysis for leadership review


89


be divided into strategic (essential elements of direction), tactical (methods to accomplish goals), or action oriented (tasks to achieve objectives), e.g., quarterly, monthly, or weekly, respectively. Taking the pulse of the project routinely helps to determine task progress, obstacles, timeline adjustments, impacts to other tasks, and solutions.

The project’s quality requirements and outcomes are jointly managed at the same time. Standards, checklists, templates, or forms outlining project deliverables should be established at the beginning during the planning phase. These tools will provide data about:

• Branding (purpose, image persona) for an organization, sponsor, exhibitor, visitor

• Audience analysis

• Design (methods, colors, fonts, graphic elements)

• Authority needed to move tasks forward; and

• Testing (new product or service development, SWOT analysis)

Acknowledging performance and managing less than acceptable results. One of the fundamental roles of the exhibition PM is knowing when and how to praise a team member for work well done, and when and how to question, coach, mentor, and change unacceptable results into a successful outcome. To have the most beneficial effect on the enterprise, this PM function must occur in the planning and executing phases, and not just during the closing phase. Exhibition PMs must complete the following steps:

• Identify challenges and obstacles quickly

• Schedule time for review with the team member(s)

• Conduct an audit of results compared with expectations

• Insert training where needed

• Remove obstacles or reallocate resources where needed

• Redirect the team member to achieve desired results

• Recheck results using established norms

Part of managing in today’s environment is understanding the different styles of work ethic in the generations and being able to adapt the leadership to lead them all.

Risk ManagementThe exhibition PM needs to be aware of the risks that he or she may encounter through the process of organizing a show. Risk management planning for the exhibition PM is vital to ensure project success during both challenging and positive business cycles. This section will focus on how the PM should implement risk management into the planning process.

“Planning for risk management is the process of defining how to conduct risk management activities for a project.” (PMBOK Guide). “Planning is important to provide sufficient resources and time for risk management activities, and to establish an agreed-upon basis for evaluating risks.” (PMBOK Guide)


90


Considerations for risk management planning include:

1. Plan Meetings and Analysis: Hold meetings to discuss risk management cost elements. Schedule event activities to be included in the exhibition budget and event schedule

2. Recorded Plan: All risk management plans should be recorded to include details of possible risks identified and details of how the risks will be structured and performed in the event of their existence. Within the details, the PM assigns resources and estimates the funds needed to either mitigate or proactively avoid the risks

3. Timing: During the planning phase, how often the exhibition PM will review the risks and report to the stakeholders of upcoming or inherent risks in the project needs to be defined and agreed upon

4. Risk Categories: Risks of varying sizes and implication factors need to be categorized and a structure provided to identify each risk with an effective and quality plan for handling each risk

5. Definitions of Risk Probability and Impact: The quality of the risk analysis process relies on being able to write the definition of each risk and the probability and impact of each. The exhibition PM reviews the entire risk management plan and identifies risks that are active in each stage of the event process. Once identified, the exhibition PM records a unique definition and probability percentage and impact amount to the project. It is important for all the stakeholders to review and understand these risks and the probability of them occurring

6. Probability and Impact Matrix: Once each risk is prioritized, the exhibition PM creates a matrix that prioritizes each according to its potential implications and probability. The exhibition PM, together with the guidelines of the exhibition organization, rates each risk in one of three categories: high, moderate or low

7. Stakeholders Tolerances: Stakeholders may see the risks differently than the exhibition PM and therefore should be ready to accommodate the stakeholders wishes regarding the varying degrees of risk management

8. Reporting Formats: The outcome of the risk management process will be documented, analyzed and communicated. It describes the content and format of the risk register as well as any other risk reports required (PMBOK Guide)

9. Tracking: This is how the exhibition PM will record the risk for the benefit of the project. After organizing several events the exhibition PM may use their own way of adjusting the tracking process to benefit the project

Closing PhaseGreat energy is applied to initiating, planning, and monitoring an exhibition. The same intensity should continue through the closing phase. This phase includes the exhibition’s actual completion, recognition of approval by the exhibition organizer or owner, and an analysis of the success (or failure) in achieving (or not achieving) objectives by the team. To synthesize lessons learned during all


91


previous phases, the project team will:

• Develop written evaluations by each team member relative to their tasks, contributions, and effectiveness as a team member

• Review the scope of the project, including objectives

• Examine major functions such as marketing, sales, operations and management

• Review the results from internal and external communications, surveys and comparative studies

Documenting this data provides the exhibition organizer or ownership with a unique summary for future planning and resource allocation. (ASAE Center)

Evaluate team contributions and effectiveness. Team effectiveness can be measured in numerous ways. Instead of a performance review in terms of personnel retention or promotion, this evaluation is focused on the effectiveness of team members in relation to the exhibition and tasks assigned. The following questions help to understand management’s perspective of contributions by team members:

• Were the milestones, subprojects, and tasks assigned to the right person?

• Would there have been different results with different team members? (Suggests potential areas for improvement in matching skills and knowledge to appropriate tasks.)

• What types of cross-training activities were planned and subsequently implemented? What were the results, and how can the next implementation be more successful? (Suggests improvements for training, cross-training, and building collaborative relationships across the enterprise.)

• Were the activities’ outcomes successful? If not, why not? If so, were all aspects equally thriving? (Suggests improvements for the tasks assigned and the process of determining task scope, where tasks were either unattainable, given the resources available, or were lacking in challenge, given the skill set applied to those tasks.)

• Was the project quality maintained in all pre-determined areas of quality management? (Suggests improvements for quality standards, allocation of resources, training or task scope.)

• What suggestions, new ideas or technologies could we incorporate for future events?

Recommendations for future projects. The post-exhibition period is a time to review plans and evaluate the time and resources allocated to each component of the project and adjust the plan for future exhibitions. Many exhibition organizers are excellent at making an exhibition successful. An often-missed opportunity to improve an exhibition is failing to learn from prior challenges, temporary solutions, and inappropriate decisions. Seasoned PMs gather information after


92


each exhibition, assemble lessons learned, and review this data with team members, preferably when the information is fresh. It is good practice to have stakeholders making notes throughout the whole planning and executing process so ideas for improvements can be discussed and perhaps added to future plans.

Additionally, findings need to be analyzed, prioritized, and include a human resources assessment, which results in the application of the final lessons learned to the next exhibition. Putting recommendations into writing is an important step. Categorizing recommendations is also helpful. For instance, some challenges recognized during implementation of this project could be situational or broad in scope, temporary or long-term, and related to project planning or existing enterprise processes. Numerous categories exist; the PM is responsible for identifying these categories and relating the recommendations to appropriate members of the organization’s management. Failing to disseminate recommendations appropriately represents a missed opportunity for enterprise improvement and growth.

PROJECT MANAGEMENT TOOLS

The primary roles of the exhibition PM are to track multiple tasks and corresponding deliverables, and relationship management. Various methods exist to fulfill these roles, including the use of sophisticated project management software, graphs and charts. The exhibition PM should elect appropriate method(s) and share them with the team members. Training may be necessary to help team members gain skills with these project management tools.

The critical path is best managed by a close examination of interdependent, independent and dependent tasks. The longest chain of dependent tasks with zero float time represents the critical path. The float time is the amount of time a task can be postponed without affecting the timeline. To utilize the Critical Path Method (CPM) thoroughly, four times must be noted: the earliest time an activity can start and finish, and the latest time an activity can start and finish, without extending the deadline for the project (Kerzner 482).

Independent activities are those without reliance on other tasks or milestones. A dependent activity relies on other tasks or milestones to be initiated or completed before the dependent activity can be initiated or completed. Interdependent activities must be achieved so the project can be achieved within budget and by deadline. All of these relationships are indicated on the CPM chart.

Project Management SoftwareThere are several project management software systems available for purchase and online. Whatever system is chosen, it should be accessible and simplified for all team members to clearly understand and use effectively.


93


SUMMARY

Project management is a set of processes, systems, and techniques for the effective planning and control of a project. Most projects are a temporary endeavor with a defined beginning and expiration date, constrained by schedule, deliverables, budget, and other business and environmental factors. The project is managed by a team and the team is led by a project manager.

Project management solves problems, difficult situations and challenges. Project management also brings team members together to both run and successfully change exhibitions. Fundamental project management fits securely into the daily routine of exhibition organizers, operations and/or production managers, and sales managers. Management personnel become more focused on results and processes, which can make the exhibition more successful for the enterprise.

Exhibitions involve the five basic project management components, i.e., initiating, planning, executing, monitoring and controlling and closing. Risk management planning is a key component of planning as it helps the organizer to identify risks to the project plan, and perhaps more importantly, creates methods for evaluating risks. The project plan, scope, schedule, and work breakdown structure come together to form the basis of a well-run exhibition. The budget is the financial planning tool, a living document requiring an understanding of basic accounting and financial management principles.

Several fundamentals in good human resource management, i.e., job descriptions, training considerations, and setting expectations, are essential to achieving success. Equally important is the assembly of post-exhibition data for analysis and recommendations.

The application of sound project management skills is vital to new business development and maintaining/growing existing exhibitions.


94


KEY WORDS

budget assumption

closing phase

critical path

critical path method (CPM)

cross-training

deliverable

executing phase

formative evaluation

initiating phase

milestone

monitoring and controlling phase

planning phase

project

project charter

project leadership

project management


project manager (PM)

project plan

project schedule

project sponsor

re-base lining

risk management planning

scope statement

SMART objective

summative evaluation

work breakdown structure (WBS)

DISCUSSION QUESTIONS1. Describe the importance of the fundamental phases of project management.

2. Why is it important to be flexible in the executing phase of project management?

3. Discuss formative and summative evaluations and how each approach can be used.

4. Discuss examples of dependent and interdependent activities that could affect or jeopardize a project if not executed in a timely manner and the repercussions to other activities.


95

CHAPTER

6

“Budget: a mathematical confirmation of your suspicions.” – A.A. Latimer

BUDGET MANAGEMENT

MaryAnne Bobrow, CAE, CMP, CMM, CHEOwner

Bobrow & Associates



Scott Stanton, MBA, CEM, CAEChief Financial Officer


LEARNER OUTCOMES


1. Identify budget types and discuss the advantages and disadvantages of each

2. Discuss with specificity revenue and expense items essential to the development of an exhibition budget

3. Develop and recommend registration and exhibit fee structures that meet the financial objectives and budget philosophy of the organization

4. Construct a detailed exhibition budget


96

CHAPTER 6 Budget Management

INTRODUCTION

Research is conducted. Competitors are assessed. Market analysis is performed. Venues are identified. The exhibition organizer consents to the exhibition, but wants evidence that the exhibition will meet or exceed financial objectives. This chapter provides the tools and information necessary to execute budget management responsibilities. The knowledge and competencies necessary to fulfill this essential role in the exhibition’s success adds value to the exhibition and the organization as a whole. In an era of transparency and accountability, the budget and financial management work of the exhibition organizer also contributes to the value proposition of the organization. The exhibition organizer will develop a projected budget, based on estimates of costs and revenue, using the most relevant information available.

TYPES OF BUDGETS

Each of the various types of budgets listed in this section can be created to serve different purposes. The type of budget dictates how the budgeting process is started and whether the budget will be developed with or without historical information.

Zero-BasedA zero-based budget begins without funds to spend; expense items are proposed with justification for each, based on future predictions and alignment with current organization goals and objectives. The budget does not have a historical perspective from which to draw information. While the process is time-consuming, it serves the organization by the careful and appropriate allocation of resources.

IncrementalAn incremental budget is prepared using a previous period’s budget or actual performance as a basis, with incremental changes for the new budget period. While much quicker to prepare than the zero-based budget, it fails to make adjustments for other external factors, by only reviewing the prior period’s performance.

HybridA hybrid budget uses elements of the zero-based and the incremental budgets. It allows for incremental budgeting of more predictable revenues and expenses, while incorporating any unique factors or circumstances which differ from previous events using the zero-based method (i.e., change of venue). Combining the two approaches requires justification for each item’s change from previous levels, based on historical data, justification for any new items added to the budget, and analysis of external factors that could influence the budget. The hybrid budget approach is ideal for exhibitions that change venues or destinations, and in times of economic uncertainty.

BUDGET FORMATS

Budgets can also be formatted differently to suit the needs of the exhibition organizer.

Zero-based

TYPES OF BUDGETS

Incremental

Hybrid

Monetary calculations in this chapter are based

on U.S. currency


97

Budget Management CHAPTER 6

Line ItemA line-item budget is commonly used and can be zero-based, incremental, or hybrid. Each category of activity is included and aligns with a chart of accounts. Advantages include ease of preparation and a means for comparing performance from one fiscal period to another. For example, table 6.1. consists of two line items – food and beverage, and pipe and drape.

Performance/FunctionA performance/function budget focuses primarily on the functions and outcomes for each item or event and is useful in determining the performance of an activity.

The budget is an important financial tool for the exhibition organizer and provides estimates of expected revenues and expenses in producing the exhibition. Financial software has the ability to create financial statements in whatever format is most useful to the end-user- budget to actual expenses, variances, percentage of differences, etc.

The statement in table 6.1. shows the amounts budgeted, the actual amount spent, and the variance. In this example, food and beverage increases by $6,000 because of a higher number of participants than expected. One would expect to see an increase in revenue line items, e.g., exhibitors purchasing more booth/stand space, which would equate to increased exhibitor badge fees. The pipe and drape or shell scheme line item demonstrates a lower than projected expense because more exhibitors use custom booths that do not require the use of pipe and drape or shell scheme.

BUDGET VERSUS ACTUALExpense Budgeted Amount Actual Amount Variance NotesFood and beverage

$75,000 $81,000 $<6,000>Catering guarantees increased due to higher than anticipated number of participants

Pipe and drape

$4,000 $3,750 $250 More custom booths used than projected

Table 6.1. Budget versus Actual

BUDGET PHILOSOPHY

The organization’s financial objectives and budget philosophy for the exhibition must be considered before developing the budget. Figure 6.1. describes the three perspectives of budgeting philosophy, while table 6.2. demonstrates the comparison in terms of revenue, expenses, and net profit/loss.

1. PROFIT-BASEDINTENT 2. BREAK-EVEN

INTENT 3. DEFICIT-BASEDINTENT

revenue exceeds expenses

revenue and expenses are equal

expenses exceed revenue

THREE PERSPECTIVES OF BUDGETING PHILOSOPHY

Figure 6.1. Three Perspectives of Budgeting Philosophy


98


An organization may intentionally choose to have a break-even exhibition or even to operate at a deficit, although this is unlikely. For example, when the purpose for the exhibition is not profit-based, a break-even budget philosophy could be appropriate, if it contributes to the overall (non-financial) objectives of the organization. When a start-up exhibition proposal projects more than one business cycle to realize profitability, a deficit-based philosophy would be appropriate in that proposal. It is not uncommon to have start up shows that need up to three cycles to turn a profit.

BUDGET PHILOSOPHIES IN COMPARISONProfit-Based Break Even Deficit-Based

Revenue total $300,000 Revenue total $300,000 Revenue total $150,000

Expense total $150,000 Expense total $300,000 Expense total $200,000

Net profit/loss $150,000 Net profit/loss $0 Net profit/loss $<50,000>

Table 6.2. Budget Philosophies in Comparison

BUDGET DEVELOPMENT PROCESS

Unless the exhibition is a first-time event, the exhibition organizer should gather all available documents from prior events held by the organization that contain financial information essential to preparing the current budget. When the exhibition is new, the organization may have previous exhibitions or events that could help guide the budget process, or the exhibition organizer might have colleagues in another organization with expertise and a willingness to share budgeting information. Sources for budgeting information are numerous (see fig. 6.2.).

Expense CategoriesBefore forecasting revenue, the exhibition organizer must identify expenses and then develop sufficient revenue to achieve the event objectives. For each product or service, the exhibition organizer should provide a request for proposal (RFP), soliciting proposals or bids, with cost estimates, from potential vendors (see fig. 6.3.).

The expenses for exhibitions are many and vary with the type of exhibition held. In preparing a budget, the exhibition organizer must identify all anticipated expenses that may be incurred. Many people believe the budgeting process begins by forecasting revenue. However, identifying expenses first is common and then calculating revenue items (e.g., registration fees) based on covering expenses. In addition to the expenses, financial goals of the organization should be identified including desired profit from the exhibition. Also, contingency expenses need to be included for the unexpected which adversely affects actual results when contractual obligations are not achieved. For instance, fees may be assessed as part of a hotel contract for sleeping rooms contracted but not used (e.g., attrition), and should, therefore, be considered in the budget.


99


Figure 6.2. Sources of Budgeting Information

SOURCES OF BUDGETING INFORMATION

HISTORICAL PLANNINGDOCUMENTS

REFERENCEDOCUMENTS

PRICING LISTS

• Housing records• Registrations• Food and beverage

contracts or bills• Transportation bills• Speaker/entertainer

bills• Marketing and

promotion bills• Tips/gratuities• Taxes• Incidentals/

miscellaneous bills• Printing records• Photocopying records• Audiovisual bills• Postage and shipping

records

• Prior event history (summary)

• Meeting agenda• Speaker agreements• Hotel contract

(or proposal)• Menus• Proposals received in

response to RFPs

• Tours• Entertainment• Transportation• Off-site meals

Exhibition expenses can be described as fixed costs, variable costs, or indirect costs. As illustrated in table 6.3., fixed costs do not change depending on the number of attendees, while variable costs do. Indirect costs can be either fixed or variable. An indirect cost is one that is incurred in the process of doing business, but is not easily identified or directly attributed to the exhibition.

FIXED COSTItem x Anticipated attendees = Fixed Cost Variance

LCD projector x 750 = $1,250

LCD projector x 850 = $1,250 no change

Table 6.3. Fixed Cost

For example, a fixed cost would be the amount being charged for the audiovisual equipment. Whether there are 750 or 850 attendees, the need for audiovisual equipment does not change.


100


VARIABLE COST

Inclusive Item Cost xAnticipated Attendees

=Variable

CostFood & beverage $19 per person x 750 = $14,250

Food & beverage $28 per person x 750 = $21,000

Table 6.4. Variable Cost

An example of a variable cost is the cost of food and beverage. As illustrated in table 6.4., if lunch on day one costs $19 per person inclusive of tax and gratuity, then that number is multiplied by the expected number of attendees to arrive at the total variable cost for that expense line item. Should the cost of the lunch cost $28 per person, the difference between the two lunches would be $6,750. In this example, the cost per person and the number of attendees are both variables.

An example of an indirect cost is staff wages. To calculate the true performance of an event, certain costs may be allocated. Example: A staff person processes registrations on-site, so a portion of their wages may be allocated to the event. This is also referred to as overhead.

In addition to the expenses listed in figure 6.3., other budgeting factors need to be considered. For example, event and digital technology continues to evolve at a rapid rate, along with price points. These and other new trends and supplies may have a positive or negative impact on the budget or actual revenue and expenses. Assessment of economic threats and opportunities must be determined so that an accurate total expense figure can provide the basis for calculating revenue.

Revenue CategoriesOnce reasonable projections for total anticipated expenses have been determined, the projected cost or the minimum amount of revenue to either break even or make a profit is also known. Then the budget builds the anticipated revenues from a number of different sources to determine how that total can be achieved. Various methods are used to determine fees to charge exhibitors, attendees, sponsors and advertisers. Revenue sources are also varied, including the mentioned fees and possibly others (see fig. 6.4.).

Fixed costs

EXHIBITION EXPENSES

Variable costs

Indirect costs


101


TYPICAL EXHIBITION EXPENSE CATEGORIES

AWARDS

CREDIT CARD PROCESSING FEES

EVENT INSURANCE

EVENT TECHNOLOGY/AUDIOVISUAL

• Projection equipment• Telecommunications• Screens• Extension cords• Projector cards• Microphones• Speaker system• Teleprompter• Monitors• Computers• VCRs/DVDs • Laser pointers• Blackboards/whiteboards• Flip charts and markers• On-site communications, e.g, two-way radios• Technician and operator services

ENTERTAINMENT• Sound systems• Stage crews

FACILITY AND OTHER FEES

• Rental• Parking• Permits• Janitorial• Waste Removal

FOOD AND BEVERAGE• Continental/full breakfast• Breaks• Lunch• Reception• Dinner• Serving station fees• Bar service (hosted or cash)• Bartender fees• Gratuities and/or service charges

MARKETING AND PROMOTION• Graphic designer• Application development• Website development• Printed materials

SIGNAGE

SPECIAL EVENTS

SECURITY AND SAFETY

PHOTOGRAPHY/VIDEOGRAPHY

POSTAGE AND DELIVERY

PRINTING AND REPRODUCTION• Exhibitor prospectus• Onsite programs• Attendee registration• Save the date

OFFICIAL SERVICE CONTRACTOR (OSC)

• Material handling• Power distribution• Equipment• Floor plan design• Pipe and drape

REGISTRATION

• Badges, ribbons, lanyards• Equipment rental• Online registration fees• Registration staff

WEBSITE DESIGN AND MAINTENANCE• Taxes on all items listed

DESIGN AND DECOR

SPEAKER EXPENSES• Speaker fee/honorarium• Speaker lodging and travel

STAFF EXPENSES• Staff lodging and travel

TRANSPORTATION• Airport transfers• Shuttles

ADVERTISING AND PUBLIC RELATIONS• Media office

Figure 6.3. Typical Exhibition Expense Categories

Figure 6.4. Typical Exhibition Revenue Items

TYPICAL EXHIBITION REVENUE ITEMS

ADVERTISING SALES

SPONSORSHIPS

SPECIAL EVENT TICKET SALESBOOTH CANCELATION FEES

BOOTH SALES• Islands and peninsulas• End caps• Standard• Additional exhibitor badges

REGISTRATION FEES FOR ATTENDEES (IF ANY)

• Early• Advance• On-site


102


POTENTIAL EXPENSE CALCULATIONS

Besides identifying the expense items for the budget, the exhibition organizer must calculate costs using one of the budget approaches mentioned above. Calculations for expenses may seem relatively simple, but just taking information from contracts or previous actual expenses is insufficient. Understanding how a venue arrives at rental fees, for instance, can be complex and changes by venue. In addition, large international exhibitions that may not be tax supported typically have additional issues that make budgeting more complex.

Rental Costs for Exhibit SpaceFee structures vary depending on the type of venue, e.g., convention or conference centers, hotels, or other large facilities. Regardless of the venue, exhibition rental space is based upon the number of move-in/move-out days and exhibition days. Some venues charge full fees for move-in/move-out, while others may charge a percentage of standard day rental fees. Often this discount involves a reduction of some services, e.g., air conditioning in the exhibit hall when access doors from the loading dock remain open. Additional meeting space may be offered on a complimentary basis, depending on the amount of exhibit space used. In the proposal generated in response to the RFP, the facility should provide details about additional costs/expenses, and include the center’s rules and regulations that may be beyond the space-rental agreement.

While the proposed venue agreement for exhibit space will detail the rental fees and the manner in which they are calculated, the exhibition organizer must understand how the fees are calculated.

In each of the examples below, the exhibition will consume one move-in day, four exhibition days, and one move-out day. Note: The following examples are calculated in U.S. currency.

Example 1: Facility rental is based on the amount of gross square feet (GSF)/gross square meters (GSM) rented, minimum daily rental the facility will accept to obtain the business versus their quoted rate per square foot/meter, whichever is greater. The minimum daily rate is $9,000, and the rate per GSF/GSM is $0.30. Move-in/move-out days are not discounted.

GSF/GSMRental Rate (GSF/GSM)

Facility Rental Fee per Day

28,000 x $0.30 = $8,400

In this example, the calculated rate of $8,400 is less than the minimum rental rate of $9,000. The minimum rate will be used to determine total costs.

Rental Fee per Day

Number of Days

Total Facility Space Rental Cost

$9,000 x 6 = $54,000


103


Example 2: Facility rental is inclusive of all move-in/move-out and exhibition days. The minimum rate vs. an expressed rate, whichever is greater. The minimum rental rate is $40,000. The rate per GSF/GSM is $1.50.

GSF/GSM Cost

Rental Rate (GSF/GSM)

Total Facility Space Rental

28,000 x $1.50 = $42,000

The calculated rate is higher than the minimum rate of $40,000, so the total space rental cost, in this case, is $42,000.

Example 3: Facility rental is based on $2,000 per exhibition day, or $0.10 GSF/GSM, whichever is greater. Move-in and move-out days are charged at half the exhibition day rate.

GSF/GSM

Rate/GSF/GSM

Rental Fee per Exhibition Day

DaysExhibition

Days28,000 x $0.10 = $2,800 x 4 = $11,200

GSF/GSM

Rate/GSF/GSM

Rental Fee per Move-in/Move-

out DaysDays

Move-in/Move-out Day Fees

28,000 x $0.05 = $1,400 x 2 = $2,800

Total Facility Rental Costs = $11,200 + $2,800 = $14,000.

Value-Added Tax and International MeetingsValue-added tax (VAT) is an expense that may be factored into budgets if the exhibition is held in a country other than the United States. The differences in VAT depend on the country where the exhibition is to be held and what tax rates and exemptions exist. Rates vary by country and generally range between five and 25 percent of the taxable goods and services. VAT rates in Asia range from five percent in Taiwan to ten percent in South Korea. In Latin America, rates also vary, while in Mexico, 16 percent VAT may be waived for international conferences and other qualified events, including trade shows. The exhibition organizer should consult with experts in each country to ensure appropriate compliance with regulations and to realize complete VAT refunds, where applicable.

POTENTIAL REVENUE CALCULATIONS

Four major sources for exhibition revenue exist: attendee registration, exhibit booth/stand space sales, sponsorships, and advertising. Additional sources for revenue are possible, but tend to be unique to the situation and bring in less total revenue than these four major sources.

Many factors should be considered when deciding what to charge for exhibition fees. A fee structure developed during the budgeting process should define


104


the different categories, assign timelines, and align with marketing/promotion strategies. For example, a discount may be offered for advance purchase of booth/stand space if booked during the current exhibition, while a different fee may be charged earlier in the selling process, before the pre-established deadline. Generally, a premium fee is charged for on-site registration, thus encouraging attendees to register prior to the deadline instead of on-site.

Depending on the type of organization and its budget philosophy, the exhibition may charge attendee registration fees or additional exhibitor badge fees. The price of registration fees might decrease the likelihood of participation. The amount charged may also be a critical factor in the decision to exhibit or sponsor.

Attendance Fee This source of revenue covers a broad spectrum of participatory events that the attendee may select and for which the attendee pays a fee, e.g., professional development sessions, social events, special events, food and beverage functions, and the exhibition. Attendees pay an admission fee to receive a ticket, without requiring personal data, such as name and contact information, and is usually only done at business-to-consumer events. A registration fee allows entry to the exhibition/event, but requires personal data, such as name, title, affiliation (company), contact information, industry sector, etc. When setting the registration fee for attendees, all other fees should be considered and what the attendance fee includes must be clearly defined.

Registration rate structures. When attendance revenue is generated through a registration fee process, typically online, various rate structures may be applied.

• Early registration. This category implies a promotional discount for registration early in the registration period and within a given time frame

• Advance registration. The time between the end of early registration and when on-site registration fees apply

• On-site registration. The on-site fees are higher and encourage registrants to take advantage of reduced fees in the registration process before the exhibition begins

• Single-day registration. If applicable, procedures should be established to ensure attendees participate only on the day they are registered, since allowing attendees to register for one day but participate fully in the event negatively impacts the budget

• Discount fee. The discount fee structure must be determined for multiple registrations from the same company or organization. Consider a full fee for the first registrant and discount the remaining registrants

• Complimentary registration. The exhibition organizer may give speakers, media, bloggers, special guests, and others complimentary registration. When communicating complimentary registration, the exhibition organizer should indicate whether ancillary functions and special events are included and which events must be purchased separately. An expense line item should be added to the budget for complimentary registrations. It would be included at cost, not at the

Attendee registration

FOUR MAJOR SOURCES FOR

EXHIBITION REVENUE

Exhibit booth/stand space sales

Sponsorships

Advertising


105


revenue amount, e.g., if the cost of one attendee’s registration is $245, and 25 complimentary registrations are extended, the line item entry would be $6,125. Remember, this is the expense calculated for one attendee, not the registration fee charged to the attendee

Refund policy. The exhibition organizer must determine and provide a written refund policy. Some organizations allow a full refund up until a certain date, while others charge an administrative fee and refund the balance after the fee is deducted. Some also have a declining scale of refunds available by certain dates, e.g., some allow for a 75 percent refund if requested by Date X, 50 percent if by Date Y, and so on.

• The refund policy should be included on the website, on all registration materials, including any receipts for payment issued, and at the on-site registration desk

• Requests for refunds should be in writing and received by a specified date.

• A written policy for crises and emergencies should be developed

• The exhibitor refund policy should include what percentage of booth/stand fees, additional badge costs, and other exhibitor charges will be reimbursed, if at all. A date when refunds will no longer be honored is essential

Registration fee calculations. When calculating an attendee registration fee, it should be constructed to the break-even point. Two methods are commonly used to calculate an attendee registration fee: (1) when the number of attendees is known or projected, but the fee is not known (see fig. 6.5.), and (2) when the fee is known or projected, but the number of attendees is not (see fig. 6.6.).


106


CALCULATING REGISTRATION FEE – EXAMPLE 1

Calculating the Registration Fee – Number of Attendees Known (Estimated at 1,000)

STEP ONE: Calculate fixed costs

Fixed Costs

Audiovisual Equipment $ 15,700.00

Exhibition Website Development 25,000.00

Marketing Expenses 48,000.00

Event Signage 11,300.00

Total Fixed Costs $100,000.00

STEP TWO: Calculate variable costs

Variable Costs

Food and Beverage $ 75,000.00

On-site Attendee Program 25,000.00

Speaker/VIP Lodging (75 people, 3 days, 225 sleeping nights @ $200) 45,000.00

Total Variable Costs $145,000.00

STEP THREE: Add Fixed Costs and Variable Costs

Total Fixed Costs $100,000.00

Total Variable Costs 145,000.00

Total $245,000.00

STEP FOUR: Divide

Total Costs by # of attendees = per person cost

$245,000.00 ÷ 1,000 = $245.00/person

Figure 6.5. Calculating the Registration Fee – Number of Attendees Known

CALCULATING REGISTRATION FEE – EXAMPLE 2

Calculating the Registration Fee – Registration Fee is Known

STEP ONE: Using the same calculations we used in Example 1, we know the following:

Registration Fee break-even = $ 245.00

Variable Costs per person = 145.00

Total Fixed Costs = $100,000.00

STEP TWO: Subtract the per person variable cost from the registration fee to arrive at the contribution margin.

Registration fee – Per person variable cost = Contribution Margin

$245.00 – $145.00 = $100.00

STEP THREE: Divide total fixed costs by the contribution margin.

Total Fixed Costs ÷ Contribution Margin = # of Attendees

$100,000.00 ÷ $100.00 = 1,000

Notes:

1. Not all contribution margin figures equal whole dollars.

2. The registration fee break-even point is just that – a break-even point and not the lowest registration amount to be charged.

Figure 6.6. Calculating the Registration Fee – Registration Fee is Known

Exhibit Sales Exhibit booth/stand sales constitute the largest portion of the trade exhibition’s revenue. Booth/stand fees can be divided by type, e.g., island, peninsula, end cap, corners, and in-line booth/stand spaces. Rates can also be set based on the date the exhibit contract is processed, i.e., early, advance, and on-site sales. Additionally, discounts can be utilized to encourage sales, based on criteria such as loyalty (repeat business), being a new exhibitor, or being an exhibitor/advertiser (with an organization publication or website).

Informed decision-making process. Determining booth/stand space fees paid by the exhibitors involves more than simple financial calculations. An informed decision includes the following considerations.

• Establish exhibition and financial objectives

o What is the desired profit?

o If the exhibition is calculated at a financial loss, how much loss is acceptable?

• Identify participants/potential participants

o Who are the potential sponsors and what kind of support can they offer (e.g., in-kind, service, or cash sponsorships)?

o Who are the potential exhibitors and what are their expectations for


107


costs and value?

o Who are the potential attendees and how many are anticipated at the event?

o What other stakeholder groups exist for this exhibition (e.g., suppliers, media)?

• Research competitive exhibitions and fee structures

In the process of gathering information for an informed decision, the exhibition organizer should note the similarities and differences between proposed and competitor fee structures. The results from the investigation should clarify whether food and beverage and other complimentary items are included in the exhibit fees. While these items are not necessary to the calculation of exhibit space fees, they are relevant to the development of the exhibition-marketing plan. The organizer should also research economic and other trends that may affect whether exhibitors will participate, as their decisions will become critical to the estimated number of booth/stand spaces sold (CEIR Index Report 7). Further, economic and other trends may indicate how many attendees are likely for the exhibition, as well as how much media attention might be generated by marketing and holding the exhibition.

Formula calculations for exhibitor fees. Use the same types of formulas for calculating exhibition fees as illustrated in calculating registration fee examples (see fig. 6.5. and fig. 6.6.). Fixed costs will include items such as security and facility rental. Variable costs include items such as the cost of pipe and drape/shell scheme and electricity.

“What if” Analysis for Registration and Booth/Stand FeesThe exhibition organizer then conducts a “what if” analysis on the anticipated fees to determine actual registration and booth/stand fees. The purpose of this exercise is to determine what would happen if the projected number of attendees or the projected number of booths/stands fell short of actual experience and what impact that would have on the budget.

Island

EXHIBIT FEES BY TYPE

Peninsula

End cap

Inline

Standard


108


CUBIC CONTENT INCLUSION

To maximize sale of booth/stand space, the exhibition organizer must decide in advance whether to include cubic content into linear exhibit space, which adds the dimension of height and depth to the sellable space. Common in countries outside the U.S., cubic content allows use of the entirety of the exhibit space, without any setbacks. This is an important factor in determining booth space as allowing cubic content may restrict sight lines for neighboring exhibitors, thus potentially decreasing the value of the space for that exhibitor and potentially inhibiting sale of booth/stand space. (Refer to the IAEE White Paper: Evaluating and Implementing Cubic Content into Linear Exhibit Space for additional information.)

For exhibition organizers who follow the traditional IAEE Guidelines for Display Rules and Regulations, an individual has an unobstructed view from an established start point to an end point. For example, the unobstructed view is down the length of an aisle of linear booths above 4ft. in the front one-half of each booth/stand (4).

Figure 6.7. Cubic Content Inclusion

“WHAT IF” ANALYSIS OF BOOTH/STAND SPACE FEES

Booth Fee# of Exhibit

SpacesDesired Income

Actual Income

Variance

$895 300 $268,500 $268,500 $0

$895 275 $268,500 $246,125 $<22,375>

$895 250 $268,500 $223,750 $<44,750>

Table 6.5. “What If” Analysis of Booth/Stand Space Fees

“WHAT IF” ANALYSIS OF ATTENDEE REGISTRATION FEES Registration

Fee# of

AttendeesDesired Income

Actual Income

Variance

$245 1,000 $245,000 $245,000 $0

$245 900 $245,000 $220,500 $<24,500>

$245 800 $245,000 $196,000 $<49,000>

Table 6.6. “What If” Analysis of Attendee Registration Fees

The tiered registration approach anticipates a certain number of attendees will register for the exhibition at early, advance and on-site registration rates. As demonstrated in table 6.7, at the $1,000-attendee rate, the exhibition receives an additional $22,500 over the flat fee (see table 6.6.).

In reality, the exhibition organizer would never charge the break-even registration fee, but would use that as a starting point to determine the lowest registration fee to be charged. Then, the budget calculations incrementally increase the advance and on-site rates accordingly.


109


“WHAT IF” ANALYSIS – TIERED ATTENDEE REGISTRATION FEESRegistration Fee Amount # of Attendees Actual IncomeEarly $245 650 $159,250

Advance $295 250 73,750

On-site $345 100 34,500

TOTALS 1,000 $267,500

Table 6.7. “What If” Analysis – Tiered Attendee Registration Fees

The same analysis can be applied to exhibit fees. Using a base of an anticipated 300 exhibit spaces and a fee of $895, a similar and increasingly negative result occurs as fewer exhibit spaces are sold. Using tiered exhibit fees (see table 6.8.) results in an increase over the flat fee approach (see table 6.5.) of $19,625.

“WHAT IF” ANALYSIS – TIERED BOOTH/STAND FEESRegistration Fees # of Exhibit Spaces Exhibit Fee Actual IncomeEarly 200 $895 $179,000

Advance 75 $995 $74,625

On-site 25 $1,095 $34,500

TOTALS 300 $288,125

Table 6.8. “What If” Analysis – Tiered Booth Fees

The exhibition organizer, depending on the level of detail desired, could also determine using the tiered exhibit fees and lower attendance numbers, the variance between using the flat fee approach and the tiered approach.

Sponsorships Sponsorships can be a major source of revenue for the exhibition, if properly packaged and aligned to sponsor needs. On the exhibition organizer side, asset management is a necessary function that identifies exhibition assets (what can be sponsored), determines asset availability (how many assets exist), sets asset value (what the sponsor should pay and what is included in the asset), and promotes assets to potential sponsors. On the sponsor side, the value of the sponsorship is based on what incentives the exhibition organizer makes available as part of the asset package. In other words, will the sponsor get free space in the promotional packet, signage at the exhibition, a logo on the show website and other printed materials, such as carry bags, or other promotional opportunities? The sponsor often needs to know the profile of the audience exposed to this asset, and the logistical details of the asset. Some sponsors may ask to be part of the planning process, so the sponsor can help control the costs of the asset, as well as setting parameters for composition and delivery of the asset, if applicable. For example, supplying badge lanyards, with logos.

The exhibit organizer must control the types of exhibition assets so that necessary sponsorship opportunities are not replaced by unnecessary amenities. For instance, a sponsor may offer to underwrite the cost of a special stakeholder or VIP (often called a VIP for “very important person”) reception and dinner the day before the exhibition opens, or hosted buyer program. However, if that was not a planned


110


special event, underwriting it provides less support to the exhibition organizer than sponsorship of a required function, such as lunch on the day of the exhibition.

Setting sponsorship fees requires research into several areas, such as what competitors offer, what the exhibition’s financial goals are, and, most importantly, how to match the needs of potential sponsors with those financial goals (see fig. 6.8). In Is Sponsorship Right for My Company, Susan Friedmann describes sponsorship as a “financial or in-kind support of an activity, used primarily to reach specified business goals” (1). Ensure that in setting fees for sponsorships, some method for determining sponsors’ return on investment is in place. It may end up being a tipping point as to whether a sponsorship is obtained. Assessing the sponsor’s reputation helps with the decision as to whether a potential sponsor is a right fit for the exhibition.

WANTS AND NEEDS OF POTENTIAL SPONSORSSponsor’s reason for becoming a sponsor varies.Sponsor’s measurable objectives include many options.

• Enhancing image • Driving sales• Increasing visibility with positive publicity• Improving corporate responsibility• Differentiating from competitors• Enhancing business, consumer, and VIP relations

Sponsorship opportunities may be highly competitive – take action quickly if only two or three premier spots are offered.Sponsorship benefits should be flexible – ask the exhibition organizer to accommodate your plan.

Figure 6.8. Wants and Needs of Potential Sponsors (Friedmann)

Understanding the points noted in figure 6.8. aids the exhibition organizer to establish appropriate levels and fees for sponsorships. Appropriate benefits in sponsorship packages should match the sponsor’s own financial and marketing objectives. Typical benefits include such things as sponsor acknowledgement, exclusive networking events, opportunities to meet key individuals at VIP receptions, and sponsor visibility in the exhibition’s marketing materials.

AdvertisingRevenue may be generated through advertising in publications provided by the organization, even those not directly related to the exhibition, as well as websites, kiosks, mobile media apps, and other digital options. Advertising may also be available on signage and via televised promotional space in the headquarters hotel or hotel block. Apparel may also be an option that adds revenue to the exhibition’s budget. Speaking directly with potential advertisers about their needs and interests may generate advertising opportunities and watching trends at other exhibitions can be a great source for brainstorming.

Determining rates for advertising opportunities is somewhat complex and is based upon multiple factors. The cost of advertising includes design, as well as costs such as supplies and printing or generation of the advertising delivery


111


vehicle (e.g., website). Beyond production costs, the exhibition organizer should consider the value offered by reaching a targeted audience, the loss of utilizing the space for the organization’s own promotion needs, and competition. Setting the advertising rate is similar to asset management for sponsorships.

Research into what competitors’ charge is valuable information when setting advertising rates. The exhibition organizer can obtain rates from competing exhibitions to determine advertising rates for the exhibition, and then assess the value of the competition’s advertising in terms of attendees, size of exhibition, and other factors. Formulas exist for assessing the value of advertising rates based on number of readers, frequency of advertising, and other factors but those formulas do not work with a one-time publication.

The exhibition organizer should price advertising rates to be consistent with the competitive analysis and other internal and external factors. Advertising rates can be tiered based on position in the program (e.g., inside front cover, outside back cover, inside back cover, first five pages of the program, with right page positioning, and run of press, which is left to the discretion of the publisher), although sponsors may insist on the highest profile pages as part of their sponsor package.

OTHER BUDGET CONSIDERATIONS

Depending on the situation, other considerations for budgeting will influence how, when, and what to include for the exhibition budget. The options are so numerous; they simply cannot be listed in a single text. Budget options are influenced by country of origin and destination, the nature and purpose of the exhibition itself, the type of host organization (corporation, association or government agency), and trends common in the exhibition host’s business environment. One example of budget influences is the trend for environmentally sustainable meetings and the impact that strategic initiative may have on expenses and revenue. How the budget is monitored throughout the exhibition planning process is another important consideration for the exhibition organizer.

Social Responsibility and Green ExhibitionsThe Events Industry Council with ASTM International, created the ASTM Environmentally Sustainable Meeting Standards. These standards are identified in fig. 6.9 and provide a roadmap for exhibition organizers charged with incorporating social responsibility and green initiatives into events and exhibitions.

Figure 6.9. Sustainable Meeting Standards

Standards

Audio Visual

Accomodation

Communications

Destinations

Exhibits

Food & Beverage

Meeting Venue

On-Site Office

Transportation

Inside front cover

POSITION OPTIONS IN PRINTED MATERIALS

Outside back cover

Inside back cover

1st five pages with right page positioning

Run of press


112


In the past decade, exhibition organizers have been integrating corporate social responsibility (CSR) or sustainability initiatives into the master exhibition plan. These initiatives may mean additional expenses, but can also represent a cost savings, as well. Therefore, sustainability initiatives should be determined in advance of developing the budget (see fig. 6.10.).

15 TIPS FOR GREENING THE EXHIBITION BUDGET

1. Select hotels and suppliers with green policies

2. Host all multi-session meetings at a central location to limit transportation needs

3. Minimize paper with Web-based invitations, online event registration, and electronic follow-up

4. Use double-sided printing for all collateral and meeting-related materials

5. Give recycled materials precedence when making meeting supply purchases

6. Choose a venue with an in-house recycling program and encourage recycling

7. Decrease the usage of paper and plastic by using real china for all food and beverages

8. Select buffet style menus and donate leftovers to eliminate waste

9. Coordinate with venues to use bulk dispensers for all food and beverages

10. Encourage speakers to use electronic tools for presentation

11. Recycle conference bags

12. Green practices and long-term sustainability goals should not take a backseat to the exhibition’s bottom line

13. Incorporate green and corporate social responsibility practices, which can be beneficial both for establishing the company as a good corporate citizen and for saving money

14. Leverage green efforts by referencing the current economy

15. Beware of “greenwashing” (the practice of spinning the company’s products or policies as environmentally friendly, when no evidence exists to support the claim) – also called “green whitewash”

Figure 6.10. 15 Tips for Greening Exhibition Budget (Spatrisano and Wilson)

Monitoring the BudgetWhether the exhibition organizer is solely responsible for development and maintenance of the exhibition budget, financial statements that provide budget versus actual performance must be examined on a periodic basis. Determine whether modifications need to be made during the current budget cycle and then record those modifications in a comments or narrative field on the budget (sometimes called a budget diary) to assist with forecasting future year’s budgets. Table 6.9. demonstrates where income is reported four months prior to the exhibition.


113


BUDGET VERSUS ACTUAL – FOUR MONTHS PRIOR TO EXHIBITION

INCOMEActual –

Jan.-Oct., 20xxBudget % of Budget

Exhibition IncomeBooth sales

Islands and Peninsulas $125,800 $125,800 100%

Standard booths 287,100 308,850 92.96%

Additional exhibitor badges 800 3,000 26.67%

Booth cancelation fees 850 3,625 23.45%

Total, Booth Sales $414,550 $441,275 93.94%Sponsorship 124,500 150,000 83%

Total, Exhibition Income $539,050 $591,275 91%Exhibition Expenses

OSC booth setup $3,876.50 $4,080 95.01%

Signage/decorations 5,764 4,000 144.10%

Licenses, permits, fees 35 400 8.75%

Exhibit hall food & beverage

Morning/afternoon breaks 42,000 0%

Lunch 73,500 0%

Total, Food & Beverage $115,500 0%Marketing expenses $2,382.02 3,945 60.38%

Security 3,645 7,290 50%

Lead retrieval 9,000 35,500 25.35%

Janitorial 0 2,000 0%

Total, Exhibition Expenses $24,702.52 $165,715 15%NET INCOME OVER EXPENSES $514,347.48 $425,560 120.09%

Table 6.9. Budget versus Actual – Four Months Prior to Exhibition

With at least a three full months’ selling window remaining prior to the exhibition, being less than seven percent below budget on booth sales is not a cause for concern. For sponsorship income, the window for selling sponsorships is closing. Overall income performance is good. On the expense side, three items need close review. The first is the booth setup fee, where two questions arise. First, why is almost 95 percent of the booth/stand setup fees paid more than three months prior to the exhibition? Second, with the substantial amount of income from booth/stand sales and the low amount of expense for booth/stand setup, one would believe that a majority of exhibitors will be shipping custom booths/stands. Here, the exhibition organizer should investigate whether (a) overtime hours from the Official Services Contractor (OSC) staff will be required to deliver and set up the hall, and (b) whether additional security hours will be required for exhibit hall setup.

Third, the cost for signage/decorations is considerably over budget well in advance of the exhibition. Why? Will additional expenses be incurred? Are any of these expenses on a cost-recovery basis (some other entity will reimburse these expenses through sponsorships or other revenue source)?


114


SAMPLE EXHIBITION BUDGET

A simplified exhibition budget is shown in tables 6.10 (Revenue) and 6.11 (Expenses), based on 1,000 attendees, 75 VIPs and speakers, 250 booths, 10 sponsors, and 50 additional exhibitor badges. No group discounts, special or ancillary events are factored into this budget. The sample is not representative of all revenue and expense items one might expect to find in a typical exhibition budget.

While at first glance this may appear to be a break-even budget, in reality, it is not. With the incorporation of expense line items for desired profit and contingency expenses, it is a profit-based intent budget. Should the exhibition use all of the contingency expense but otherwise meet all other financial goals, it will realize $180,000 in profit. Should it consume none or only part of the contingency expense, the exhibition will make up to an additional $40,000 in profit.

SAMPLE EXHIBITION BUDGET – REVENUE

Exhibition Income

Standard, in-line booths/stands

100 @ $900 = $90,000

Corner/Peninsula booths/stands

100 @ $1,100 = 110,000

Island booths/stands 50 @ $1,300 = 65,000

Additional exhibitor badges

50 @ $150 = 7,500

Sponsorship income = 100,000

Total Exhibition Income $372,500

Attendee Registration

Early registration 500 @ $245 = $122,500

Advance registration 400 @ $295 = 118,000

On-site registration 100 @ $345 = 34,500

Total Attendee Registration Income $275,000

TOTAL REVENUE $647,500

Table 6.10. Sample Exhibition Budget – Revenue

SAMPLE EXHIBITION BUDGET – EXPENSES

Fixed Costs

Desired profit $180,000

Contingency expense 40,000

Exhibition space rental 57,000

Marketing 50,000

Security 8,000

Audiovisual equipment 15,700

Exhibition Website development 25,000

Event signage 11,300

Total, Fixed Costs $387,000

Variable Costs

Food and beverage $75,000

On-site attendee program 25,000

Speaker/VIP lodging 225 nights @ $200/night 45,000

Exhibit hall pipe and drape

300 booths @ $15/each 4,500

Lead retrieval equipment 300 units @ $200/each 60,000

On-site registration staff 3,000

Total, Variable Costs $212,500

Indirect Costs

Staff wages 45% of $100,000 = $45,000

Telephone charges = 3,000

Total, Indirect Costs $48,000

TOTAL EXPENSES $647,500

Table 6.11. Sample Exhibition Budget – Expenses

SUMMARY

The role of the exhibition organizer in the area of budgeting and finance has expanded and elevated the expectations of exhibition organizer qualifications. Responsibilities for development and monitoring the budget, along with financial management duties, increase the value of the exhibition organizer to the organization. The development, monitoring, and management of the


115


exhibition budget are essential to the sustainability of the organization, its brand, and its corporate image. Effective budget and financial management not only differentiates the exhibition from its competitors, but also facilitates the organization’s ability to fulfill its corporate social responsibility role.

KEY WORDS

accountability

admission fee

advance registration

asset availability

asset management

asset value

attrition

break-even

budget diary

budget management

budget philosophy

chart of accounts

complimentary registration

corporate social responsibility (CSR)

cubic content

deficit-based

discount fee

early registration

exhibition assets

fixed cost

hybrid budget

incremental budget

indirect costs

line-item budget

official services contractor (OSC)

on-site registration

overhead

performance/function budget

profit-based

refund policy

registration fee

run of press

single-day registration

sponsorship fee

transparency

value-added tax (VAT)

variable cost

“what if” analysis

zero-based budget

DISCUSSION QUESTIONS1. Identify and discuss the factors which could impact the major sources of

revenue for an exhibition.

2. Why is it important for the exhibition organizer to understand an organization’s financial goals and budgeting philosophy prior to developing an exhibition budget?

3. Describe the challenges exhibition organizers encounter when establishing fees for registration.

4. On what factors might an exhibition organizer base a different exhibition fee scale, that takes into account customer loyalty, longevity, and appeal to attendees?


117

CHAPTER

7

“The surest way to ruin a man who does not know how to handle money is to give him some.” – George Bernard Shaw


MaryAnne Bobrow, CAE, CMP, CMM, CHEOwner

Bobrow & Associates

Scott Stanton, MBA, CEM, CAEChief Financial Officer


LEARNER OUTCOMES


1. Identify key elements in financial statements used by the exhibition organizer

2. Interpret financial statements to demonstrate the value of the exhibition

3. Discuss payment methods and currency considerations

4. Manage the master account

5. Prepare and manage cash flow statements; manage and control cash

6. Calculate return on investment


118

CHAPTER 7 Financial Management Strategies

INTRODUCTION

The exhibition budget is prepared. The outcome depends on the expertise of the exhibition organizer to develop financial strategies that ensure adherence to the budget and adjust the budget when unforeseen opportunities and obstacles arise. From understanding financial statements to interpreting them, and from managing cash flow to understanding currency fluctuations, this chapter provides the tools and information necessary to manage and execute financial management responsibilities.

ACCOUNTING AND FINANCE FUNDAMENTALS

Two primary accounting methods are common – cash and accrual. The cash method records revenue at the time the cash is received and expenses when disbursed, while the accrual method records revenue and expenses when earned or incurred, respectively.

To illustrate the difference, consider a fiscal year that runs from January through December. An exhibitor submits a contract for booth space in January. The event takes place in April. The exhibitor pays for the contracted booth space in January. Under the cash method, the revenue from the booth space fees appears on the financial statements in January. Under the accrual method, the revenue is recognized in the April financial statements, when the revenue is earned.

Expenses are treated in the same manner. Contractual obligations to pay exhibition hall rental fees are often paid in installments. For example, a deposit is typically required at the time the contract is signed with installments due on predetermined dates. Assume the deposit and second installment are paid in the prior fiscal year and two installments are made during the current fiscal year. Under the cash method, the installments made in the prior fiscal year are reflected on the financial statements of the prior year and the installments made in the current fiscal year are recorded during the current fiscal year. The accrual method records all four installments during the current fiscal year. In the prior year, the two installments are considered prepaid expenses and are moved, through a journal entry process, from a prepaid expense to exhibition hall rental fees. In this example, the two prior year installments are shown on the first statement of the fiscal year. Installments during the current fiscal year become accounts payable and are moved to exhibition hall rental fees upon payment.

Assets and LiabilitiesAn asset is anything of value owned by or due to the organization, while a liability is anything the organization owes. In other words, an asset is a right, while a liability is an obligation.

Accounts Payable and Accounts ReceivableAccounts payable are classified as liabilities and are the amounts an organization owes for purchased goods or services on credit from a supplier or vendor. Accounts receivable are assets and refer to amounts due to an organization for the sale of goods or services on credit to a customer.


on U.S. currency

Cash

ACCOUNTING METHODS

Accrual


119

Financial Management Strategies CHAPTER 7

Break-Even Analysis/Break-Even PointBreak-even analysis is a process where revenue and expense items are adjusted until a break-even point is reached, i.e., revenue equals expenses. Break-even analysis is based on two types of costs: fixed costs and variable costs. Fixed costs are constant and do not change as the level of output changes. Variable costs are not constant, change with the level of output, and are frequently stated on a per-unit basis.

Chart of AccountsThe chart of accounts is an organized numbering system used to identify each line item of the budget by a specific account name and/or number, allowing deposits and expenditures to be posted to the correct accounts.

Contribution MarginA contribution margin is the difference between total sales revenue and total variable costs. The term is applied to a product or product lines and generally is expressed as a percentage. For example, after subtracting total variable costs from sales, the contribution margin would be calculated as 42 percent. In other words, for each U.S. dollar of sales, 42 cents would be contributed toward fixed costs and profit.

FINANCIAL STATEMENTS

Several financial statements illustrate the financial health of the organization.

Balance SheetThe balance sheet is a snapshot of the organization at a given point in time and reflects the assets owned, liabilities owed, and residual net assets. For not-for-profit organizations, this is called a statement of financial position.

Income StatementThe income statement (also known as a profit & loss statement) shows financial activity over a period of time, reporting revenue generated, expenses incurred, and results in net profit/loss; it is used throughout the exhibition’s life cycle. Not-for-profit organizations call this a statement of activities.

Statement of Cash FlowA statement of cash flow (or cash flow statement) is a financial statement that shows the changes in balance sheet accounts, and income cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and cash out of the business.

As an analytical tool, the statement of cash flow is useful in determining the short-term viability of an organization, particularly in its ability to pay bills. Exhibitions realize substantial income far in advance of the actual event. Effective use of the statement of cash flow affords the organization the opportunity to make substantial revenue-producing, short-term investments until the funds are needed to pay expenses.

Fixed costs

BREAK-EVEN TYPES OF COSTS

Variable costs


120


The income and cash flow statements are important financial tools for the exhibition organizer. Financial software creates income statements that compare budget to actual amounts, illustrating variances in actual amounts, percentage differences or both. These statements can be presented in various formats, including showing the status for a current month, for year-to-date, and year-over-year comparison.

Table 7.1. illustrates that the current year’s performance, compared to the prior year, is positive, with a substantial increase in net income over the prior year. A careful examination of the line items, however, may raise questions as to the reason for a significant decrease in marketing expenses. It may signal issues or may simply result from cost-effective marketing efforts. The exhibition organizer must be prepared to discuss the variances and provide reasonable explanations.

SAMPLE INCOME STATEMENT – PRIOR YEAR COMPARISON

Income This Month Year-to-Date Prior YearActual Change

Registration Fees

$10,000 $75,000 $65,000 $10,000

Exhibit Sales $50,000 $125,000 $110,000 $15,000

Sponsorship Sales

$15,000 $25,000 $15,000 $10,000

TOTAL $75,000 $225,000 $190,000 $35,000

Expenses This Month Year-to-Date Prior YearActual Change

Official Service Contractor

$1,000 $35,000 $32,000 $<3,000>

Food and Beverage

$0 $75,000 $72,000 $<3,000>

Marketing and Promotion

$25,000 $40,000 $50,000 $10,000

TOTAL $26,000 $150,000 $154,000 $4,000

NET INCOME $49,000 $75,000 $36,000 $39,000

Table 7.1. Sample Income Statement – Prior Year Comparison

POST-EVENT (EXHIBITION) ANALYSIS

The primary purposes of post-event (exhibition) analysis and reporting are to wrap up details of the exhibition, and to make informed assumptions for future exhibitions based on current performance. The budget diary, if correctly maintained, provides valuable information, as does a reconciliation of the master account. Once the evaluations are complete, reports, including the post-event (exhibition)


121


report (PER), are prepared, complete with successes, recommendations for improvements, and potential revisions to policies and procedures.

CALCULATION OF RETURN ON INVESTMENT

Return on Investment (ROI) is defined as a financial ratio indicating the degree of profitability (Events Industry Glossary). The basic calculation for determining the ROI of an exhibition is net profit divided by the cost of investment (expenses). This should not be confused with the ROI that exhibitors and sponsors calculate for justification of participating in the exhibition. Attendees and other stakeholders will also want to measure ROI. In some cases, organizations also measure return on objectives (ROO), where the measurement is the degree to which participating in the exhibition met the stated objectives (non-financial).

Understanding the ROI for sponsors and exhibitors is essential. Sponsors and exhibitors primarily focus on the exhibition marketing activities, sales promotions, advertisements, and other expenses driving sales. A simple calculation is gross sales, resulting from exhibition sales leads divided by total expenses to complete the sales strategy, with the results expressed as a ratio. For example, if a company generates $800,000 in gross sales and spent $225,000, the result would be expressed as:

($800,000 – $225,000) ÷ $225,000 = $2.56

This means that the exhibitor or sponsor profited by $2.56 for each dollar invested.

Jack Phillips, a pioneer in creating methodology for calculating ROI for meetings and events, stated, “Organizations of all types want value for their investments” (Phillips 1). An ROI tool kit is a simple tool to measure ROI from exhibiting at the average show; this tool assists exhibitors in planning for the exhibition. The toolkit is available on the Center for Exhibition Industry Research (CEIR) website, www.ceir.org.

BILLING AND INVOICING

Exhibition organizers typically manage bills from the exhibition facility via a master account, reconciliation, and credit process. The process is relatively simple, but requires due diligence in entering, verifying, and monitoring charges, and equitable settling of disputes.

Master AccountA master account, also called a master bill, is a record of transactions during an event, where the resulting balance is paid directly by the group. It may include room, tax, incidentals, food and beverage, audiovisual, décor, etc. Proper management of the master account is important to the financial success of an exhibition. Whether the exhibition organizer personally supervises the exhibition’s master account or delegates the function to a staff member, policies and procedures for establishing, reviewing, and reconciling the master account must be in place. Ensuring that simple controls are in place on the master account


122


will help to control costs and remain within budgetary guidelines. These controls include the following:

• List eligible charges for posting to the master account.

• Identify authorized signatures for master account charges.

• Develop budgetary guidelines each authorized individual agrees to follow.

• Develop guidelines for extraordinary charges requiring a higher level of approval.

• Schedule daily review of the master account charges.

• Request detailed documentation to support the master account.

Payment ReconciliationsThe master account is reconciled upon receipt of the final bill. Each item should be carefully reviewed to eliminate duplicate charges. Before remitting payment, the exhibition organizer must dispute and resolve any problems within the time allotted for remitting payment. Whether the final billing is large or small, reconciling may be like looking for a missing penny when balancing a checkbook.

Technology Tips and ToolsIn an Excel spreadsheet, the first worksheet in the file is set up to replicate the master account summary. The summary might look like the example in table 7.2.

MASTER ACCOUNT RECONCILIATIONAudiovisual Equipment $10,000

Food and Beverage $85,000

Lodging $45,000

SUBTOTAL $140,000Less Room Rebate $<1,200>

BALANCE DUE $138,800

Table 7.2. Master Account Reconciliation Table

Additional worksheets for each category should be set up, e.g., lodging, food and beverage and audiovisual. All charges are then plotted to the respective category, verifying each charge against the exhibition’s own records. Charges should be authorized and verified, then carefully reviewed for duplication of charges, inappropriate charges, and unacceptable charges. Sorting the data by function and date will readily reveal any duplicative charges.

When all charges have been entered, each worksheet should be totaled and compared to the master bill. If discrepancies are identified, the disputed charges are located and entered in a disputed charges section on the first worksheet for accessibility. The exhibition organizer and facility discuss any disputed charges and resolve them quickly. The same procedure should be followed in paying all exhibition-related invoices to ensure accuracy and timely payment.


123


MANAGING AND CONTROLLING CASH

How the receipt of cash and other funds is handled depends on anticipated revenues from their sources. The exhibition organizer may wish to transfer funds from one bank account to another, a higher yield account if the forecasted revenues are significant and will be held for months at a time. This is particularly advantageous when registration options include online registrations, with fees directly deposited to a bank account.

Cash handling procedures may already be in place within an organization and may be adaptable for the handling of cash before, during, and after the exhibition. If not, the exhibition organizer must ensure the responsible handling of cash, checks, credit cards, and other methods of payment. Best practices dictate that anyone responsible for handling receipts should be bonded, particularly the person in charge of reconciling monies received on-site during the exhibition. Best practices also prescribe that pre-numbered receipts be used, with a minimum of two copies and more if other departments within the organization require copies. Written procedures for cash management should state that all pre-numbered receipts must be retained – especially any that are voided.

PAYMENT METHODS AND CURRENCY CONSIDERATIONS

The exhibition organizer will have numerous currency considerations for the international meeting (one held in a country other than the one in which the exhibition organizer resides) or the exhibition hosting numerous international visitors. These currency considerations include, but are not limited to, the following items as listed in fig. 7.1.

CURRENCY CONSIDERATIONS

Figure 7.1. Currency Considerations

• Foreign currency exchange contracts

• Foreign currency futures

• Foreign currency hedging strategies

• Requirements for multiple currencies

• Foreign exchange rates knowledge

• Rounding and local regulations

• Number text generation for check (cheque) writing

• Separators (grouping, fractional, list)

• Currency placement, name, symbol, size and 3-letter ISO codes, e.g., “USD” for United States dollars or “CHF” for Swiss francs

• Formatting for euro quantities

Exhibition organizers may elect to establish bank accounts in jurisdictions where the exhibition is held, thus facilitating ease of managing accounts payable and receivable. Account establishment typically does not cause problems; however, when the jurisdiction is outside one’s own country, complications may arise. Questions to consider when the event is held outside the country of origin include:


124


TIP

• How will payables be made and in what currency?

o Additional expenses incurred in addition to currency fluctuations

• Will registration and exhibition fees will be accepted in multiple currencies?

o Additional online processing fees associated with transacting in multiple currencies

• What is the process is to remove/transfer currency from foreign bank accounts back to your home country?

During the budget development phase, the exhibition organizer must determine the currency(ies) to be used throughout the life of the exhibition. When the exhibition is held outside the exhibition organizer’s country of origin, and, if the exhibition organizer or other staff is not qualified to deal in foreign currencies, consultation with currency exchange professionals is strongly advised.

Managing Cash FlowOnce the budget has been developed and approved, the next step is to chart the flow of cash in (inflows) and out (outflows) of bank accounts. Using the information acquired while developing the budget, determine the amount of inflows and the month of receipt and the approximate month of distribution for outflows. Once all information is entered, look for months when inflows exceed outflows and the frequency of the situation. Transferring monies into high-yield accounts is an added revenue source that, in healthy economic times, can generate sizeable amounts of interest. Conduct the same test for months when outflows exceed inflows. If prior months’ inflows exceed outflows, the excess should be retained to cover upcoming outflows and, in some instances, monies may need to be transferred from high-yield accounts to cover the outflows.

TECHNOLOGY TIPS AND TOOLSReports from accounting software produce cash flow reports. The work product, combined with the current budget, become excellent tools for forecasting future budgets.

Facts for Simple Cash Flow StatementThe following list provides guidance for the potential revenue and expense items to be considered in developing the cash flow statement table (see table 7.3.).

• The event takes place in November.

• At least 200 booths/stands should be sold, each priced at $1,500

o In March, April, and May, 50 should be sold

o In June, 25 booths/stands should be sold

o In July, 15 booths/stands should be sold

o In August, 7 booths/stands should be sold

o In September, 3 booths/stands should be sold

• Attendee registration fees are set at $200.


125


• The following pattern is set for an anticipated 2,000 registered attendees

o In June, July, and August 500 attendees should register

o In September, 300 attendees should register

o In October, 150 attendees should register

o On-site, an anticipated 50 attendees should register

• Sponsorships should all be paid in March.

• Three speakers are booked, each at $1,500, including fee and travel costs.

• Marketing expenses are projected at $85,000, spread over several months.

• Food and beverage costs are $100,000.

• Official service contractor charges for pipe and drape are $4,000.

• Security costs are $3,250.

• Program printing and development costs are $35,000.

CASH FLOW STATEMENT TABLE

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. TOTAL

REVENUE

Booth sales 75,000 75,000 75,000 37,500 22,500 10,500 4,500 300,000

Attendee reg. fees

100,000 100,000 100,000 60,000 30,000 10,000 400,000

Sponsorship 75,000

TOTAL REVENUE

150,000 75,000 75,000 137,500 122,500 110,500 64,500 30,000 10,000 775,000

EXPENSE

Speakers 4,500

Marketing 5,000 5,000 10,000 10,000 15,000 15,000 10,000 15,000 85,000

Food & beverage

25,000 75,000 100,000

Exhibits 4,000 4,000

Security 3,250 3,250

Program 5,000 10,000 20,000 35,000

TOTAL EXPENSES

14,500 5,000 10,000 10,000 15,000 15,000 45,000 35,000 82,250 231,750

REVENUE OVER EXPENSES

135,500 70,000 65,000 127,500 107,500 95,500 19,500 <5,000> <72,250> 543,250

CASH FLOW CUMULATIVE

135,500 205,500 270,500 398,000 505,500 601,000 620,500 615,500 543,250

Table 7.3. Cash Flow Statement Table

The example in table 7.3. indicates outflows do not exceed inflows until one month prior to the event, leaving the exhibition organizer and/or chief financial officer with a decision as to how much to invest and for how long. Depending on interest rates and term, and taking a conservative investment approach, $250,000 could be invested in May for a six-month period.


126


INVESTING FUNDS WHEN INFLOWS EXCEED OUTFLOWS

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total

REVENUE OVER EXPENSES

135,500 70,000 65,000 127,500 107,500 95,500 19,500 <5,000> <72,250> 543,250

CASH FLOW CUMULATIVE

135,500 205,500 270,500 398,000 505,500 601,000 620,500 615,500 543,250

INVESTMENT <250,000> 250,000

REVISED CUMULATIVE

20,500 148,000 255,500 351,000 370,500 365,500 543,250

Table 7.4. Investing Funds When Inflows Exceed Outflows

Conceivably, a second investment of $250,000 could be made at the beginning of August for a three-month period, as noted in table 7.4, with the monies returned from investment in November.

SUMMARY

The role of the exhibition organizer in the area of financial management has expanded and elevated the expectations of the exhibition organizer qualifications. Responsibilities for financial management duties increase the value of the exhibition organizer to the organization. Effective financial management not only differentiates the exhibition from its competitors, but also facilitates the organization’s ability to fulfill its corporate social responsibility role.

KEY WORDS

accounts payable

accounts receivable

accrual method

asset

balance sheet

break-even analysis

break-even point

budget diary

cash method

chart of accounts

contribution margin

fiscal year

fixed cost

gross sales

income statement

inflow

journal entry

liability

master account

outflow

post-event (exhibition) report (PER)


return on objectives (ROO)

statement of activities

statement of cash flow

statement of financial position

variable cost


127


DISCUSSION QUESTIONS1. Which kind of organization – a corporation or association – is most likely to

work within a break-even budget and why?

2. Describe a scenario where an organization with a break-even budget would make a 15 percent profit on an exhibition.

3. How does an exhibition organizer determine the cost to exhibitors for a booth/stand?

4. Will the cost of the booth/stand be affected by a raising or lowering of the registration fee for attendees? Will the cost of the registration fee for attendees be affected by raising or lowering of the booth/stand fee? Explain your answer to both questions.

5. How is sponsorship cost determined?

6. What items in the budget could have logical sponsorship potential and why would a sponsor want that asset?


129

CHAPTER

8

“The whole purpose of education is to turn mirrors into windows.” – Sydney J. Harris

LEARNING EXPERIENCES ON THE EXHIBITION FLOOR

Randy Bauler, CEMCorporate Relations & Exhibits Director

American Association of Critical-Care Nurses (AACN)

Marsha Flanagan, M.Ed.Vice President, Learning Experiences


LEARNER OUTCOMES


1. Explain the value of offering learning experiences as part of the exhibition experience

2. Identify ways to foster adult learning in the exhibition environment

3. Identify challenges to delivering successful exhibition floor learning experiences


130

CHAPTER 8 Learning Experiences on the Exhibition Floor

INTRODUCTION

In the digital age, the art of face-to-face education and adult learning has new challenges that exhibitors must understand and master. The goal of this chapter is to explain the key role that learning experiences on the exhibition floor plays in creating a successful face-to-face experience in the exhibition hall. Successful exhibitors educate and demonstrate, so attendees learn how and why they will benefit from their invested time at an exhibition.

EXHIBITION HALL AS A LEARNING EXPERIENCE

Every exhibition is like a vibrant university – an experiential learning environment waiting to help attendees and exhibitors grow with every interaction. Everyone who participates in an exhibition or marketplace event is exposed to new ideas and perspectives with every encounter and exchange.

Exhibition attendees have the opportunity to learn about new products and services, new product applications and new uses. Exhibition visitors learn about companies they never knew existed but might improve their professional and personal lives. Attendees are able to learn through active engagement with an exhibition representative or just spending a few seconds examining a display to determine the merits of further time and exploration.

Exhibitors have the opportunity to learn about present or potential customers. Every person walking by an exhibition display can help exhibitors learn the value of a product or service that results in answering a customer’s question or solving a challenge. When an attendee stops and interacts, even just to ask a quick question or experience a brief demonstration, the exhibitor gains insights into customer wants or needs, what the customer is thinking, and what influences that customer to purchase a product or service.

Some exhibitions focus more on the buyer-seller exchange. Some view themselves as a modern-day marketplace. Others view themselves as an extension of an educational conference or event, where the learning on the exhibition floor is as important as the educational sessions and classroom presentations.

Exhibitions are trending more toward adding interactive workshop areas, hands-on demonstrations, product theaters or showcases, and educational stages or learning pavilions. A study released by the Center for Exhibition Industry Research (CEIR), documents that an important driver of repeat attendance is access to learning opportunities on the show floor. (“CEIR Attendee Floor Engagement Study, Part 7, 2017”) (see Figure 8.1.). Exhibitors, who wish to attract and engage event attendees, recognize they must educate and/or engage them to earn the attendee’s time and interest.

Interactive workshops

LEARNING EXPERIENCE TRENDS IN EXHIBITION HALL

Interactive demonstrations

Product theaters

Educational stages and learning pavilions


131

Learning Experiences on the Exhibition Floor CHAPTER 8

Figure 8.1. CEIR Floor Engagement Study, Part 7, 2017

FACTORS FOSTERING ADULT LEARNING EXPERIENCES

One of the key concepts in adult learning is that adults learn best from one another. The adult learner wants to hear, see, and learn from what their peers and other adults have experienced. When adults gather as a group with similar interests, there is an abundance of experiences – positive and negative – from which others can learn. Exhibition organizers and exhibitors who foster, encourage, and celebrate the positive exchange of such experiences will earn loyal customers who want to return again and again – whether it is an annual event or a company’s exhibition display. Many attendees like to hear solution based problem solving ideas that can be immediately implemented within their job.

Engaging exhibition attendees and making them feel comfortable in a public environment – perhaps in front of hundreds of other attendees – is challenging. The experience has to be personally appealing and fun, safe and rewarding. It should strive to encourage an open exchange – sharing either what has already been experienced – or reacting to and sharing a new real-time experience. Creating an environment where it is safe to share, where every experience is valid, and has value, is the key challenge of creating a learning experience in the exhibition environment.

One approach exhibition organizers should consider is promoting the exhibition hall as an extension of the formal education program. When attendees feel that spending time on the exhibition floor adds to their personal growth, the exhibition floor will be a place to which they naturally gravitate and willingly remain.

Conversely, the attendee who perceives the exhibition hall as just a marketplace or 3-D catalog, where the sellers (exhibitors) are simply competing for their sales and not their minds or personal growth, will probably avoid the exhibition experience and spend time elsewhere.

FOSTERING AN EDUCATIONAL ENVIRONMENT

In order to promote the exhibition hall as an extension of the educational program, the exhibition organizer must emphasize the concept with exhibitors. Exhibitors participate in the exhibition hall primarily to educate customers and potential customers – with the earnest belief that an educated customer is one who values

Adults learn best from one another


132


the relationship with the exhibitor and is willing to spend more time with exhibitors who are concerned with the attendee’s intellectual growth and welfare, or solve their problems. The Association for Talent Development estimates that organizations spent 1.7 percent more on employee learning in 2015 over the previous year so integrating education within your show floor experience makes sense.

Exhibition organizers must work with exhibitors to create an educational environment on the exhibition floor – one that features knowledge centers, interactive displays, hands-on demonstrations, and adult learning experiences where attendees can learn from other attendees, and not just the booth/stand sales representatives. Exhibition organizers must allocate floor space to such learning experiences – and/or likewise encourage exhibitors to allocate some exhibition space to such experiences. Stages, learning pavilions, product theaters, interactive demonstration rooms, and contest areas with prizes can foster and build an educational environment throughout the exhibition and marketplace.

Exhibition organizers can help encourage exhibitors by offering incentives, e.g., priority points, for presenting education as part of the display or participating in the sponsoring organization’s educational program. All marketing materials, beginning with the event prospectus and continuing with exhibitor communications and updates, should emphasize the role of education on the exhibition floor. Marketing materials, promotional opportunities, exhibitor training programs, and exhibitor evaluations must stress that education on the exhibition floor is an essential and integral part of the exhibition experience.

The key to any show floor educational experience is no different from any other learning environment. Ask for feedback from the audience before the event. Look closely at who is expected to attend and identify the ideal target attendee. By gathering this information, a customized learning experience can be created. As stated previously, what is developed must be relevant, personal, must pertain to their job, deliver a solution and should be an experience.

Offering Continuing Education CreditIf the industry or profession allows, the organization or association that produced the event should explore offering continuing education units (CEUs) to encourage attendees to participate in the exhibition’s educational experiences. Despite recent efforts to separate commercial presentations from educational experiences, some exhibition organizers have found creative and innovative ways to offer various types of educational opportunities. Some offer educational credits and others offer educational experiences without credits attached.


133


Case Studies

Pri-Med, a medical education company, builds relatively sound-proof presentation theaters on or near the exhibition floor, featuring presentations by medical experts and professional thought-leaders. While these are not continuing medical education (CME) presentations, they are popular with attendees. Other organizations offer product theaters, sponsored by exhibitors, which offer non-credit clinical training and hands-on demonstrations (see fig. 8.2.). Still others offer lunch-and-learn presentations in exhibitor booths/stands or nearby learning pavilions where participants gain clinical updates.

Figure 8.2. Learning Theater on the Exhibition Floor (Source: National Teaching Institute and Critical Care Exhibition)

The Association of periOperative Registered Nurses (AORN) uses a third-party vendor to manage their exhibition educational program. Offerings include printed case studies and abstracts that offer credit to attendees whenever they choose to read the material and answer credit-related questions. AORN’s third party manager coordinates exhibition presentations as well as satellite symposia presented by exhibitors.

Another organization, the American Association of Critical-Care Nurses, developed and managed its own credit system called continuing education recognition points (CERPs). Nurse attendees can earn CERP credit by attending educational presentations on the exhibition floor, either in theaters located in exhibitor booths/ stands or on educational stages located in the exhibition hall. The CERP credit system, known as ExpoEd, has replaced an earlier system, known as Exhibit CE, that allowed nurse attendees to earn actual continuing education, i.e., CE or CNE, credit from exhibition hall presentations that were monitored and checked for valid clinical information, rather than commercially influenced education or proprietary product pitches.


134


Exhibitors found CERPs to be popular with nurse attendees while providing exhibitors the flexibility to educate the healthcare professionals with valid clinical information. Nurses like earning CERP points in this type of forum and have been successful in submitting the educational experience as part of their ongoing license-renewal requirements.

OFFERING ADULT EDUCATION IN THE EXHIBITION

Many individuals have entered into a store or sales environment, e.g., purchasing a car, an item of clothing or a piece of furniture for a home, and the customer is approached by a salesperson who is prepared to explain everything he or she knows about the product, regardless of whether the customer asked for assistance. This assertive behavior by the salesperson might surprise, or even annoy the customer, while the salesperson proceeds to describe every feature, benefit, and reason why the product should be purchased. The customer may have preferred to be asked if he/she needs assistance, and then perhaps would like to take the time to ask some probing questions and listen to the answers. Most people are more inclined to do business with someone who seems interested in their circumstances and why they stopped by to evaluate the store’s offerings.

In the exhibition hall, exhibitors should consider approaching the individual as a product educator as opposed to approaching the person as a sales person (see fig. 8.3.). Listening to the customers or potential customers, rather than attempting to impress the individuals with product knowledge and inventory, is sound behavior. This concept is validated in a study conducted by the Center for Exhibition Industry Research (CEIR). The significance of having booth/stand personnel who have the knowledge and skills to conduct product demonstrations has grown in importance over the past decade. The study found that attendees like informal product presentations consisting of fewer than five attendees and want more one-on-one exchanges, as the content can be customized according to audience interaction.

Adult education, where adults learn from one another, fosters relationships built on trust and mutual respect, and encourages a sales environment where the exchange of information and customer experiences naturally leads to a positive sales interaction (“An Analysis of Changes in Key Factors Affecting Exhibit Recall in the Last Decade” 9). Design presentations that work the way the brain works. The brain likes information to be delivered in small pieces.

SELECTING AND SCHEDULING TOPICS AND SPEAKERS

Selecting the right topic to present is equally as important as the person presenting. Without the right topic, the best educator in the industry will struggle to connect with the audience. Without a strong presentation, the audience may not easily recall the key points of the most appropriate topic. Both topic and presenter are key elements – but it is the topic that generally attracts the largest audience even if the speaker is relatively unknown – for both exhibition organizers and exhibitors.

Exhibitors should educate rather than sell


135


Both exhibition organizers and exhibitors should spend time conducting research to identify relevant topics that resonate with the target audience. Topics that are highly relevant and well-known industry phrases, i.e., best practices or cutting-edge solutions, help attract the right audience. Adding a recognized industry leader or well-known expert as the session presenter will almost guarantee filling the seating area.

Scheduling sessions is another key component of a successful exhibition floor educational program. The audience has limited time. Exhibition floor sessions should be limited to no more than 30 minutes with 20 minutes of content and time to address questions from the audience, although more and more exhibitions offer TED-style sessions of 10 to 20 minutes total. Be sure and schedule time with presenters before the presentation to fully prepare them on the session space and the audience who will attend.

It is important to also note the different learning methods preferred by generations. Baby Boomers, those born between 1946 to 1965, prefer the traditional classroom setting. They want to hear from noted experts and have the budget and are willing to pay for quality education.

Generation X, those born between 1965 to 1981, learners seek education to solve problems. They are flexible with learning environments but can struggle without clear instructions. They are very competent in using technology. Generation Y/Millennials, born between 1981 and 2000, are very tech dependent, enjoy interactivity and have the shortest attention span. Think of these people as wanting small pieces of learning that includes the key points and not desiring the traditional lecture type of learning. They also like gamification and instant gratification. Generation Z are those who were born after 2000. These are the future learners and attendees to trade shows and exhibitions. They do not know a world without social media and instant sharing of content. They are fine with e-learning programs as well as gamification.

Figure 8.3. Seating for Education in Booth/Stand (Source: National Teaching Institute and Critical Care Exhibition)


136


Some exhibitors like to offer as many sessions as possible, changing the topic and speaker as soon as one session ends and the seats refilled. Conversely, others prefer a little more time between sessions by allowing post-session interaction with attendees, or perhaps a demonstration of the products and amplification on the message explained during the session. If the goal is to maximize the number of in-booth theater presentations, organize the materials and speakers in advance and allow some flexible time to accommodate audience questions and participation.

CHALLENGES TO SUCCESSFUL EXHIBITION FLOOR EDUCATION

The exhibition environment contains challenges that need to be overcome to maximize attendee learning. Some major logistical challenges require attention and management to provide a successful education event in the exhibition environment, e.g., noise, exhibition hall lighting, and audiovisual equipment designed for the traditional classroom setting rather than the exhibition environment.

NoiseExplore the amount of ambient noise that is created in the exhibition hall. Be prepared for significant crowd noise, machinery operating nearby, competing theaters/public address systems, overhead exhibition announcements, and the like. Despite the additional expense, some exhibitions and individual exhibitors add personal headphones for each attendee to ensure the message and presentation are clearly heard. Some exhibition organizers enforce noise requirements, limiting display noise to a predetermined decibel level. The exhibition organizer should determine the acceptable noise level factor for each exhibition and communicate that standard to exhibitors.

LightingDuring exhibition installation and set-up, determine the level of exhibition lighting above and near educational theaters. The exhibition organizer should request that overhead lighting be turned off or adjusted, realizing that additional time and expense may be incurred. The organizer will coordinate with the facility manager to determine what facility lights can be adjusted or eliminated, while maintaining safe levels of lighting and adequate light for display elements, as well as neighboring booths/stands. A type of canopy or shading device over screens may be necessary to ensure the visual elements of the presentation can be seen and clearly read.

Audiovisual EquipmentTesting the audiovisual equipment in advance will help to ensure it has sufficient power to overcome exhibition hall lighting, unexpected shading from display elements, while eliminating blinding or disturbing neighboring displays. Again, some type of overhead shading device may be worth the investment to ensure projectors and exhibition display screens are easily visible and readable to the audience.

Noise

CHALLENGES TO EXHIBITION FLOOR

EDUCATION

Lighting

Audiovisual equipment


137


EDUCATION AND THE EXHIBITION OF TOMORROW

Exhibition education continues to have a significant impact and role in the events and exhibitions of the 21st century. Customers who easily check product information and features online will place high value on exhibitions and events that provide useful insights and education. Hands-on demonstrations and interactive displays will continue to increase in popularity when the event provides attendees opportunities to learn from other attendees. A study conducted by CEIR found that 76 percent of attendees preferred to have a face-to-face conversation with exhibition personnel, while 69 percent of attendees prefer to have one-on-one product demonstrations. Exhibitors who take the time to listen to customers and prospects and provide useful information that solves end-user challenges will continue to thrive in the years ahead (“The Role and Value of Face-to-Face Interaction”).

SUMMARY

Exhibitions are vibrant classrooms – bringing together attendees and exhibitors – in a dynamic environment where hands-on demonstrations, user-friendly instruction and face-to-face interactions lead to a memorable learning experience. Exhibitors who view the exhibition floor as an educational experience – not just an order taking or sales process – will build strong relationships with loyal customers who appreciate what can be learned from the time invested at the exhibition.

KEY WORDS

adult learning

ambient noise

continuing education recognition points (CERPs)

continuing education units (CEU)

continuing medical education (CME)

experiential learning environment

hands-on demonstration

interactive display

knowledge center

learning pavilion

product demonstration

product theater

DISCUSSION QUESTIONS1. Discuss the different ways adults learn. What style of learning do you prefer?

2. Why should the exhibition organizer consider offering education on the exhibition floor?

3. Discuss some best practices on fostering a learning environment on the exhibition floor.

4. What are some considerations when designing the learning space on the exhibition floor?


139

CHAPTER

9

“If we each take responsibility in shifting our own behavior, we can trigger the type of change that is necessary to achieve sustainability for our race or this planet. We change our planet, our environment, our humanity every day, every year, every decade, and every millennium.” – Yehuda Berg

SUSTAINABILITY

Carol IngersollVice President, National Sales

GES

Nancy Zavada, CMPFounder & President, MeetGreen

Co-Founder, Green Meeting Industry Council

LEARNER OUTCOMES


• Discuss the importance of sustainable exhibitions and events

• State the business case for sustainable initiatives

• Identify the first steps in producing a sustainable event

• Implement green event tips into an exhibition and/or event

• Provide a basic overview of sustainable standards and certifications

“Those who serve supreme causes must not consider what they can get but what they can give.” – Sir Winston Churchill


140

CHAPTER 9 Sustainability

INTRODUCTION

The exhibitions industry has traditionally had a significant impact on the environment and exhibition professionals have the opportunity to make wise choices to minimize that impact. The choices that exhibition organizers make as part of the planning process will make a noticeable difference in the environmental footprint of an event.

Below is an example of the footprint results from an actual 500 exhibitor, 50,000 participant trade show that implemented sustainability initiatives:

• 106,985 feet (32,609 meters) of shrink wrap was used for freight. Of this, the majority (1,450 pounds/658 kilograms) was recovered and recycled.

• 50,130 square feet (4,659 square meters) of graphics were used. By choosing sustainable substrates that would have been wasted they can be reused and recycled into a reusable product or, if refurbished, the product could be upcycled to create other products. Donated products contributed less than nine percent of the total that went to landfill.

• 189,197 square feet (17,577 square meters) of carpet on the show floor. By reusing carpet, 40 metric tons of landfill were avoided.

(Source: MeetGreen data for actual 500 exhibitor trade show, Meet Better, May 2015)

The Importance of Sustainable EventsSustainability can be defined in many ways but the basic ideas and concepts remain the same: balancing a growing economy, protection for the environment, and social responsibility. Together they lead to an improved quality of life for ourselves and future generations. Sustainability in event planning is just as important as any other aspect of business.

Sustainability has been embraced more in the meetings and trade show industry in the past decade and continues to increase in momentum as people take an interest in the planet and preserving its resources.

The options for holding an event with sustainability at the forefront have improved. The city infrastructures have gained traction and cities now have detailed guidance and metrics for sustainable infrastructure projects of every size and type. For instance, two consistent and current options being offered by venues are recycle bins for waste, paper and bottles, as well as catering options with food that is sourced locally.

Organizers have also seen an increase in the demand for more sustainable events as sponsors, exhibitors and attendees are aligning with corporations and associations known for being good corporate citizens. Corporate Social Responsibility (CSR) is highly valued in today’s business world and events are now considered “windows to a company’s soul.” The increase of social media and transparency hold organizations accountable, as just one photo of a harmful practice going viral can cause significant damage to the event’s reputation. [For example, an organization whose commitment is to reduce waste but then


141

Sustainability CHAPTER 9

produces an event with all disposable service ware, with no recycling, and overflowing waste cans, is not so committed.]

GETTING STARTED

Often getting started is the hardest part; sustainability can be daunting and highly complex. By taking small steps and understanding the rewards of each along the way, producing sustainable events becomes much more manageable. Depending on the scope of the exhibition and the time and resources available to allocate in the beginning, it may be easier to choose one or two initiatives to concentrate on. The list below provides a checklist of 11 sustainable event initiatives:

1. Ask for recycling at the facility including cardboard, paper, glass and plastic utensils

2. Request no bottled water be served on the show floor and water dispensers be used

3. Ask for all condiments and beverages to be served in bulk at concession areas/outlets

4. Produce online exhibitor service manuals

5. Request carpet be made from recycled product and/or recycled after the event

6. Ask if there is electronic signage in the venue especially for directional signs

7. Reuse signage and create signage using sustainable substrate material

8. Reduce printed material and use recycled content, when possible

9. Reduce conference promotional products and use a sustainable source for any products

10. Minimize packaging on all purchased products

11. Find a donation stream for left over materials. For instance, left over registration bags could be donated to a local charity

Because waste is often the most pressing issue from an exhibition, many organizers select items that target this challenge. Recycling is only one component of the waste management system. Making an event sustainable requires rethinking the way things have always been done, reducing the number of items ordered (packaging, transportation, etc.), reusing (signage, carpet, booths), and a last resort, recycling.

THE CRITICAL PATH

Listed are a few ideas for the key areas of the event planning process to assist in working to make an exhibition as sustainable as possible (Florida Atlantic University).


142


Exhibition PlanningThe initial planning for the exhibition is the perfect time to think about the sustainability of the event. The key to this is writing the environmental statement for the event. Publicize this statement in all materials leading up to, and during the event, as well as communicate it to all sponsors, presenters and participants. Obtaining buy-in from the beginning from everyone involved in the exhibition makes it much easier to fulfill the goal of a sustainable event.

Exhibition Venue Selection When deciding on a venue, look for one that already has adopted sustainability policies and practices and has achieved certification or recognition for achieving sustainable practices. There are organizations who certify or recognize buildings for their sustainability efforts, e.g., BRE Environmental Assessment Method (BREEAM) and Leadership in Energy and Environmental Design (LEED), and, also recognition for service providers meeting certain sustainability guidelines including Green Seal and iCompli. A location that already is making efforts that coincide with the event goals can only serve to benefit in achieving what is desired.

Identify venues that are easily accessible from public transportation. Event locations that can be accessed on foot, by bus or train will ease not only the strain on the environment caused by car pollution, but also can be cost beneficial if the venue charges for parking. Another consideration in selecting a site is to look for venues that offer areas using natural light and plan the event accordingly to minimize the cost of electricity.

Event Materials Technology today offers the ability to disseminate information quickly, simply and efficiently. Using event apps, Chatbots, websites, downloadable presentations and online registration all reduce the consumption of paper and waste.

It is important to review which materials will be needed for participant packets. If information must be offered in print format use environmentally sound ink and paper, and be sure to print double-sided.

Some plastic badge holders are now made of material that breaks down and are recyclable. Ask attendees and exhibitors to return badge holders at the end of the event by providing a recycling bin. Encourage and provide presenters dry erase boards with non-toxic markers instead of paper flip charts.

Work in tandem with all the service providers; from the venue, caterer, audio visual company, cleaner, official service contractor and florist (e.g., Instead of using cut flowers for decorations, consider using potted plants).

The exhibition’s service providers can help support goals to hold a sustainable event.

Catering When planning food and beverage choices, share the sustainability goals with the caterer. Ask if they currently offer local organic and seasonal sources of food and beverages, sustainable seafood sources, vegetarian/vegan meals, etc. Plan


143

Sustainability CHAPTER 9

the food order carefully to avoid unnecessary waste. Have the caterer provide beverages, salt, pepper, cream, etc. in bulk dispensers rather than providing individualized packages, cans, or bottles. Inquire if the caterer can utilize and clean reusable plates, flatware, table linens, etc.

At the Venue Ask the facility to provide visible and accessible reduction, reuse and recycling services for paper, metal, plastic and glass. Place recycling bins in prominent locations and make announcements during the event reminding attendees to recycle and direct them to bins. Avoid using dates on signage so that they can be used again for other events. Create opportunities to educate the participants by placing information about sustainability throughout the event space.

THE NEXT STEPS: STANDARDS AND CERTIFICATIONS

Standards can be very valuable in building a sustainability framework for exhibitions. Likewise, third-party certifications will assist with due diligence when making wise choices. There are many organizations that provide resources. For example, LEED certification in the U.S. is an important certification in choosing a venue built to environmentally efficient standards. Green Seal certification on cleaning products used at the facility will assure that products are ecologically friendly. Event industry specific organizations include the Green Meeting Industry Council (GMIC), now merged with the Events Industry Council (EIC), whose standards were developed from the Exhibition Industry Council’s Industry Insights and ASTM International’s (An ANSI – American National Standards Institute) certified international standards. Hence the standards are referred to as the ASTM Environmentally Sustainable Event Standards. These standards have been crafted and commented on by industry professionals around the globe and by more than 200 non-industry stakeholders. These voluntary standards will help guide actions to hold a more sustainable exhibition.

Purpose of the StandardsThese voluntary standards are a management system written to inform the process of organizing an event. Standards provide definitions of specific operational actions with a key performance matrix and scoring of actions that comprise a sustainable event. The standards will work well independently or in collaboration as frameworks for sustainable events and sustainable meetings.

The standards:

• Are measurable

• Available in a tiered system to allow for different levels of engagement

• Address policies

• Hold both the supplier and planner accountable for implementation

• Are intended to be complimentary to other meeting industry recognized standards


144


SUMMARY

Exhibition organizers have a unique opportunity to have a lasting impact on the destinations, venues, and vendors by making good business decisions both for the environment and for the economy. By including sustainability initiatives in every aspect of the planning phase from request for proposals, to contracts, to on-site communications, to show move-in and move-out, organizers can produce environmentally responsible events without considerable extra work. As an added benefit, participants who attend sustainable events can also learn about sustainable practices and often take those practices with them when returning home.

KEY WORDS

American National Standards Institute (ANSI)

ASTM International

Corporate Social Responsibility (CSR)

Green Meeting Industry Council (GMIC)

Leadership in Energy and Environmental Design (LEED)

Recycle(d)

Reuse

Sustainability

Sustainable events

Upcycled

DISCUSSION QUESTIONS1. What are the benefits of producing a sustainable event?

2. Which three checklist items would be the easiest to incorporate into your event?

3. When is the best time to get started planning a sustainable event?


145

CHAPTER

10

“Companies should measure their success not by the fact that they are still around and making money, but how many opportunities they have missed.” – Gary Hamel, qtd. in Crainer 200

EVALUATION

Jonathan “Skip” CoxPresident

Exhibit Surveys, Inc.

Jason McGraw, CTS, CAE

LEARNER OUTCOMES


1. Build a comprehensive evaluation program that assesses all key elements and aspects of producing a successful exhibition

2. Identify and collect all relevant sources of information and data required for comprehensive evaluation

3. Discuss survey items that effectively measure attendee and exhibitor needs, expectations, results/value received, and provide feedback to identify strengths and weaknesses

4. Use evaluation to measure success in achieving exhibition objectives, refine sales and marketing strategies and plans, improve performance, and plan for future exhibitions/events

5. Benchmark performance against exhibition industry metrics


146

CHAPTER 10 Evaluation

INTRODUCTION

Successfulexhbition organzers continuously analyze their exhibitions/events. They rely on many sources of information and data to provide a comprehensive evaluation to determine if internal goals and objectives are being met. This data is also invaluable for identifying ways to maintain and increase value for their attendee and exhibitor constituents. Without consistent, reliable, and detailed information, the organizer is ill equipped to make adjustments and improvements essential to ensure that the exhibition remains healthy, vibrant and growing.

Post-event (exhibition) surveys in concert with an exhibition’s metrics provide insight and year-over-year comparisons to benchmark performance. Savvy exhibition organizers can use exhibition metrics, feedback, and research results to track trends, test assumptions, and determine attendee and exhibitor satisfaction levels with a number of exhibition elements.

EVALUATION PROCESS

The evaluation process involves an in-depth look at all aspects of planning, marketing, and production of an exhibition. Too often, evaluation is simply thought of as a post-exhibition wrap-up – a report card of performance. However, evaluation should be thought of as a continuous process to monitor progress towards current goals and objectives to enable, if necessary, course corrections. The previous year’s evaluations should be used to provide insight into refining strategies and setting realistic goals and objectives for the next exhibition. In general, the overall objectives of the evaluation process are:

• Determine whether the goals and objectives of the exhibition are being met from the perspective of exhibition management, as well as the exhibition’s attendees, exhibitors, sponsors and suppliers

• Assess the strengths and weaknesses of all exhibition tactics and program elements (e.g., education, exhibits, networking, etc.) among all key constituents to identify areas for improvement in the future

• Provide feedback from constituents to use in planning future exhibitions

o Refine the exhibition’s strategy (e.g., identify growth opportunities for attendee and exhibitor segments, and relevancy to the marketplace)

o Plan and refine the exhibition’s marketing strategy (e.g., value proposition for attendees, exhibitors, and sponsors, exhibition’s brand perception, attendance promotion, exhibitor and sponsor sales)

o Test new ideas (e.g., new product or country pavilions on the exhibition floor, city, venue or date changes, etc.)

• Provide ability to benchmark the exhibition’s results against other similar exhibitions in the industry by using exhibition industry standard metrics

The source of industry standard metrics is the Center for Exhibition Industry Research (CEIR). The CEIR Index Report provides key economic indicators.TIP


147

Evaluation CHAPTER 10

This chapter is primarily about evaluation of the exhibition by gaining data from attendees, exhibitors and sponsors. Conducting surveys of attendees who registered, but then did not attend the exhibition, and surveys of attendee or exhibitor prospects that did not register or exhibit may provide very valuable insight to the evaluation objectives.

SOURCES OF EVALUATION INFORMATION

Various sources of evaluation information are readily available for exhibitions. Evaluation can be broadly classified as either formative or summative. Formative evaluation for exhibitions can include both formal and informal evaluation methods that provide direction to design, develop, and/or improve the exhibition. Summative evaluation is generally more quantitative than qualitative in nature and, for exhibitions, includes measurements of intended outcomes of the exhibition (e.g., attendance, number of exhibitors, amount of space sold, revenue, profit, satisfaction ratings of attendees and exhibitors).

Table 10.1. lists a summary of some of the most common sources of evaluative information used by exhibition organizers.

ATTENDEE DATA AND FEEDBACK

Attendee registration statistics and idemographic information collected.

Attendance auditQuantitative surveys of a irepresentative sample of attendees, usually excluding exhibitor personnel.

Qualitative focus groups to explore issues in more depth, test ideas, understand changes taking place in the marketplace, not usually projectable to all attendees, but good for gaining insight.

Education session evaluations.

EXHIBITOR DATA AND FEEDBACKExhibitor statistics, e.g., number of exhibitors, total space sold, etc.

Quantitative surveys of all exhibitors.

Qualitative focus groups.

Exhibitor Advisory Committees (EAC).

Lead retrieval data.

Lead engagement data.

FEEDBACK FROM STAFF, SUPPLIERS, AND OTHER STAKEHOLDERSQualitative focus groups with staff to determine where strengths and weaknesses are from their perspective.

Mixed-methods research with suppliers to explore where they perceive opportunities for improvement and potential cost savings.

Other stakeholders may include the media (press clippings data), board members (focus group or interviews), stockholders (surveys or focus groups), and many other options.

FINANCIAL REVIEW

Table 10.1. Common Sources of Evaluative Information

Formative

EVALUATION CLASSIFICATIONS

Summative

Attendance

SUMMATIVE EVALUATION

MEASUREMENTS

Numbers of exhibitors

Amount of space sold

Revenue

Profit

Satisfaction Ratings


148


Attendee Data and FeedbackAttendees are the fundamental component of any successful exhibition. They are the primary reason companies buy exhibit space. Their attitudes about an exhibition, and the value they receive from attending, are critical to the exhibition’s success and longevity.

Attendee Registration Statistics and Demographics. For exhibitions that register attendees, information gleaned from well-planned exhibition/event registration forms will assess the demographic profile of the attendees. This is the first step in determining whether the exhibition attracted the targeted attendees. This information will also help organizers to identify key attendee segments that may require more attendance promotion focus in the future. This demographic information can be appended and/or additionally collected through post-exhibition surveys.

Noting trends over at least a five-year period is valuable for monitoring exhibition growth or decline. Trends in attendance can indicate changing demographics, new niches, and a need for different marketing strategies.

Attendance Audit. Attendee registration demographics also provide a marketing tool for selling to exhibitors, and identifying new segments of exhibitors who may benefit from key attendee segments being attracted to the exhibition. In this case, the exhibition organizer should consider a third-party audit of the attendee registration data to independently certify data, which is similar in concept to a publication circulation audit. An independent audit provides assurance to exhibitors that the data being reported by the exhibition organizer is factual. UFI – The Global Association of Exhibitions headquartered in Paris, France has a requirement that their members’ exhibitions are audited.

On-site Personal Interview. Personal interviews are another source for quantitative data. Held on-site at the exhibition, personal interviews are often used when a sample of attendees is unavailable to conduct a survey or when immediate feedback on an issue or aspect of the exhibition is desired. On-site interviews have limitations in terms of the overall evaluation of the exhibition as attendees are interviewed during the entire exhibition/event. Most of the questions are close-ended and, with a large enough number of attendees (generally a minimum of 200 to 300 individuals), the findings are statistically projectable to the audience.

Quantitative Attendee Surveys. Most exhibition organizers use post-exhibition attendee surveys to provide more in-depth feedback from their attendees than the basic attendee registration information can provide. Typical research objectives for these types of attendee surveys are:

• Determine motivations, reasons, and expectations for attending; measure the value of the exhibition in meeting their expectations; and identify ways the value can be improved

• Provide feedback to develop future attendance promotion (use of promotional channels like websites, publications, social media, etc.) and to understand the needs of specific target audience segments


149


• Measure the activity level of attendees, such as the hours and days spent at exhibits and in the conference sessions, their attendance history, and which locations in the exhibit hall attract the most attendees

• Rate operational elements of the exhibition to identify specific areas for improvement, including the registration process, food service and shuttle buses

• Test new ideas for future exhibitions, such as a new venue or product pavilion

• Quantify buying power and quality of attendees to be used in future exhibit space sales efforts

• Evaluate the educational component of the exhibition/event, and obtain feedback for improvement on topics and issues of importance and scheduling

• Assess the competitive landscape. What other exhibitions have attendees patronized? What are attendee perceptions of exhibitors? What sources of information do attendees prefer (e.g., websites, social media, publications)?

• Obtain direct feedback by asking open-ended questions from attendees; write-in comments are extremely valuable in gauging attendee and exhibitor sentiment about various exhibition/event attributes and their overall experience, i.e., Return on Investment (ROI), whether they would recommend the exhibition/event to a friend or colleague, food quality, what areas of the event they liked the most or least, and the likelihood of future participation

Generally speaking, the attendee survey is best conducted immediately following the event. In some cases, a pre-exhibition survey is warranted. For example, pre-exhibition surveys are used to test a new idea, address an immediate issue or problem, or to benchmark event brand perceptions before the exhibition in order to assess change in that perception by utilizing a post-exhibition survey.

The vast majority of post-exhibition surveys today are conducted online. However, some exhibitions will also use a telephone interview or mail surveys. The above research requires that the attendees have experienced the entire event before responding. However, a personal interview or self-administered electronic survey on-site are viable options, depending upon the survey objectives.

Post-exhibition attendee surveys can be conducted in house, or by using a professional research firm specializing in exhibitions. The advantages of using a professional research firm are elimination of potential bias in questionnaire design and analysis, credibility with exhibitors when using the information for marketing purposes, professional assistance in survey sampling, methodology and execution. Additionally, some professional research organizations maintain key performance benchmarks, which can be of value in comparing the exhibition’s performance to previous years’ results or results from other events.


150


If the survey is relatively simple and the advantages of using an outside research organization are not critical, a number of online survey tools exist that are free or very inexpensive.

The attendee survey is generally conducted with all or a random sample of attendees, excluding exhibitor and sponsor personnel, organizer staff, and exhibition contractor personnel.

Lead Retrieval Data. Lead retrieval systems capture the attendee’s badge identification when they walk into an exhibitor’s booth stand. If the exhibitor rents the lead retrieval system from the organizer’s vendor, all the data collected can be accessed by show management for evaluation following the event. Lead retrieval is discussed in more depth in Chapter 23, Exhibition Technology.

Lead Engagement Data. The data gathered using lead engagement technology is valuable to the exhibition organizer. The technology is collecting data on attendee behaviors in real-time during the event, providing predictive analytics that will be valuable following the event.

Qualitative Focus Group. In some cases, exhibition organizers may want to explore specific issues or new ideas in more depth. Qualitative research techniques, like focus groups (see fig. 10.1.) or one-on-one in-depth interviews scheduled during the exhibition, are an excellent method for accomplishing these research objectives. Qualitative research techniques can be done informally, but depending upon the use of the information and decisions being made, event planners are advised to use a professional organization or facilitator with the skills for defining and recruiting the target audience, developing the focus group guidelines, and summarizing the findings. If major investment decisions are being made based on what is learned from the groups, the findings should be tested in a follow-up survey to ensure that findings are relevant across the intended target audience.

Figure 10.1. Focus Group (Source: Oscar & Associates)


151


Education Session Evaluations. For exhibitions where the education conference sessions are important to delivering value to a large and/or important segment of attendees, evaluations of each session should be considered. These evaluations can be conducted using paper forms collected at the end of each session or various electronic methods available for delivering and collecting attendee responses to individual sessions. Primary areas of evaluation include speaker skills and knowledge, content, value received, and prediction of application. Electronic options for collecting the information are often preferable because they are a green option, but generally at the expense of the amount of data collected, especially for mobile options. The response rates of paper evaluations, completed at the end of each session, usually increase response rates by a factor of two to three times what is realized when digital methods are employed.

Many factors influence response rates, not just delivery method. Attendees who believe their input is valued, who readily share perceptions, and who have a strong opinion may respond in greater numbers. Having time between sessions is another factor – if the attendee is in a rush to get a seat at the next session, that attendee is less likely to fill out an evaluation form.

Exhibitor Data and FeedbackAttendees are the fundamental component required for a successful exhibition. However, exhibitors are generally the primary revenue source for exhibition organizers. Therefore, exhibitor evaluation is a critical step in the evaluation process.

Basic Exhibitor Data. Exhibitor evaluation begins internally by the organizer. It begins by analyzing and trending basic exhibitor data, such as the total number of exhibitors, total exhibit space sold, product and service categories, and sponsorship and promotion opportunity or sales. Other key performance indicators are exhibitor attrition rates (i.e., the number of exhibitors lost from previous events), change in space purchased by individual exhibitors (i.e., how many increased, decreased or remained the same), average net square footage or meters per exhibitor, number of first-time exhibitors, and reassignment of space for the next exhibition. All of these are indicators of the health of the exhibition from the exhibitor perspective (rather than the host’s or attendees’ perspective).

Quantitative Survey of Exhibitors. A post-exhibition exhibitor survey is a valuable tool to assess exhibitor satisfaction and to identify ways to improve future exhibitions. Typical measurement objectives for exhibitors include:

• Determine objectives for exhibiting and assess the value of the exhibition in meeting those objectives, including ways to improve value

• Rate and evaluate specific aspects of the exhibition to identify areas for performance improvement such as audience quantity, audience quality, number and quality of leads generated, attendance promotion efforts, exhibition marketing, labor, official service contractor and venue

• Determine profiles of attendees who are most important to reach, and rate their satisfaction with the exhibition in delivering these market segments


152


• Test ideas for future exhibitions such as new venues, product pavilions, and pricing packages

• Establish plans for future exhibitions, such as the likelihood of exhibiting and amount of space needed

• Determine marketing channels, techniques, and methods used by exhibitors to promote their involvement with the exhibition

• Assess the competitive landscape (e.g., other exhibitions attended and perceptions of competitors)

As with attendee surveys, exhibitor surveys are best conducted post-exhibition. The same survey methodology options and guidelines, mentioned for attendees earlier in the chapter, apply to exhibitor surveys. The exception for exhibitor surveys is that generally only the key contact person(s) from the exhibiting company should be surveyed, rather than all exhibitor personnel who register to attend the exhibition to staff the exhibits.

Qualitative Focus Groups. Focus groups, held during the exhibition with a small cross section of exhibitors, chosen according to exhibit size and product mix, can also be effective in obtaining immediate feedback on the exhibition, especially if any issues should be addressed on-site. Similar to attendees, they can also be used to test ideas and gain more in-depth insight on specific issues.

Exhibitor Advisory Committee. One of the most valuable tools available to exhibition organizers in planning exhibitions/events is the Exhibitor Advisory Committee (EAC) [not to be confused with Exhibitor Appointed Contractors (EAC)]. Create a steering committee of ten to twelve representatives from a select group of senior-level decision makers of key exhibiting companies; the selection should include a range of exhibit sizes and industry product categories. Conduct periodic teleconference and in-person meetings with this group (see fig. 10.2.). Share marketing, sales, promotion, sponsorship, and operational plans with the Exhibition Advisory Committee members. Solicit feedback from this group and use their expertise and knowledge to test new ideas, future exhibition venue-rotation patterns, exhibit policies, and the like. Often consulting directly with Exhibition Advisory Committee members on sensitive issues before implementing changes helps to smooth transitions and adoption of new policies.

Figure 10.2. EAC Committee Meeting (Source: Lagniappe Studio, Inc.)

Does a future exhibition need

revision based on the assessment of what was and was

not accomplished at previous exhibitions?

DISCUSSION QUESTIONS FOR

FUTURE EXHIBITION DECISION-MAKING

What changes need to be made in the overall

plan, the business plan, and the critical path?

What strategies and tactics need to be

refined or re-defined in order to make the exhibition run

more efficiently and effectively next time?

Were target markets saturated or is there

room for improvement?

What new ideas need to be incorporated?


153


In-depth Interview. In-depth interviews may be with either attendees or exhibitors. Generally, in-depth interviews are conducted among a much smaller sample group, (e.g., 15 to 30 individuals). The sample group to be interviewed can be carefully selected based on the anticipated outcomes or information being queried. For example, the organization may be looking for perspectives from industry visionaries, c-level/executive-level individuals, or other subject matter experts. The questions posed to the participants are completely open-ended and exploratory in nature (similar to a focus group). The results of this research technique are not statistically projectable to any segment of the audience due to the respondent base.

Feedback from Suppliers, Staff, and Other StakeholdersFeedback should be gathered not only from exhibitors and attendees, but also from all the companies, representatives, and contractors involved in producing the exhibition. Meetings with the official service contractor and specialty contractors, facility representatives, hotel, and catering personnel should be carried out immediately after the exhibition. Such post-exhibition meetings are a great time to review processes to evaluate what worked and what did not. Contractors who had to implement planned tasks are the best source of information on improving processes for subsequent exhibitions/events.

An in-house debriefing with all staff should be conducted as the final step in the evaluation process. Staff members are the hands-on experts who execute and oversee all the planned activities associated with the exhibition. Working on the frontlines provides an up-close and personal view of what worked and what went wrong. Staff members are committed to the success of the exhibition, because it is a reflection of their work. Their input is important and should be heeded. Conducting an internal staff survey and asking internal stakeholders/departments to conduct their own debriefing meetings and share their post-exhibition notes with the exhibition organizer are very effective steps in gathering a broad perspective on an exhibition/event’s performance.

Financial ReviewThe evaluation process is incomplete without a comprehensive financial review. The budget, in conjunction with the exhibition’s profit and loss statement, provides the basis for evaluating financial success. However, the financial analysis should involve more than simply identifying bottom-line success, or reviewing line items that are over or under budget. Focus should also be placed on identifying opportunities for cost-cutting, unproductive revenue sources, and new or increased revenue opportunities such as sponsorships and promotions.

Important year-over-year financial performance insights can be gleaned from comparing revenues, expenses, and profit margins at the cost center and project level. Tracking such financial data is also useful when planning future exhibitions/events, especially when comparing to previous cities/venues. For example, if an exhibition/event rotates every other year to the same city, the exhibition organizer can look back at the prior exhibition’s financials held in the same city to use as a benchmark for planning the next exhibition/event at that venue.

One key financial exercise is to track attendee promotion expenses and determine


154


the cost of acquisition per attendee type. How much did it cost to recruit returning attendees and first-time attendees, etc.? Similarly, an organizer should determine exhibitor acquisition and retention costs (i.e., what is the cost of sales?).

Performing a thorough post-exhibition financial data analysis can be quite illuminating and may assist in making sound program adjustments for future exhibitions, especially when benchmarking against past exhibition/event financials.

Summary of Research MethodologiesResearch with various exhibition constituents was previously mentioned. Table 10.2. summarizes the types of research typically used for each constituent group.

METHODOLOGY ATTENDEES EXHIBITORSEDUCATION

SESSION ATTENDEES

SUPPLIERS, STAFF, AND OTHER

STAKEHOLDERSQuantitative Research (pre- and/or post-exhibition)

Online survey

Paper and mail surveys

On-site personal interview and questionnaires

Electronic self-administered surveys

Qualitative ResearchFocus groups

In-depth interviews

Table 10.2. Types of Research Typically Used

ANALYSIS OF COLLECTED INFORMATION

Once the evaluation process is complete, what happens to all the information gathered? The best exhibition organizers go back to square one – the planning framework. The mission statement, aims, and objectives are reviewed. Addressing key questions about previous exhibitions raised during analysis of evaluation serves as a guide in discussions and future decision-making. Answering these key questions leads to better and even more successful exhibitions in the future.

From a strategic perspective, post-exhibition data and survey analysis aids in determining whether the right mix of exhibitors, attendees, and product categories are in place for the exhibition. For example, an organizer could compare the profile of current exhibitors’ product offerings with the results of attendee post-exhibition survey questions, such as “Which products would you like to see more of at next year’s exhibition?” Likewise, asking exhibitors what additional type of attendees they would like to see at future exhibitions can also be important information when compared to the current exhibition’s attendance demographics.


155


SUMMARY

Every exhibition is an ecosystem of attendees, exhibitors, sponsors, the exhibition organizer, and providers of exhibition services (i.e., contractors, venue, hotels, labor, and the like). Like any ecosystem, exhibitions have a symbiotic relationship among all constituents, where a good balance exists between value being delivered and received. Exhibition organizers who want to keep their exhibitions healthy, vibrant, and growing have to monitor continuously and evaluate all aspects of their exhibitions to maintain, and where necessary improve the value for all constituents. The only way to ensure sufficient feedback is to build it into the planning process, as with all other aspects of exhibition management.

KEY WORDS

attendance audit

audience quality

audience quantity

bias (in research method or analysis)

demographic information

exhibition metric

Exhibitor Advisory Committee (EAC)

focus group

formal evaluation method

formative evaluation

green option (in collecting data)

industry standard metric

informal evaluation method

lead (generated by exhibiting)

marketing channel

performance benchmark

post-exhibition meeting

post-exhibition survey

pre-exhibition survey

publication circulation audit

qualitative research

quantitative research

registration form

representative sample

sampling

specialty contractor

standard metrics

statistics

summative evaluation

targeted attendees

DISCUSSION QUESTIONS1. How can the evaluation process be utilized to monitor the progress toward

goal achievement before, during, and after the exhibition?

2. Why is it important for the exhibition organizer to analyze evaluation data? How can the conclusions drawn in the analysis of the data be used in strategic planning?

3. Compare quantitative and qualitative data. Give an example of each.

4. After the exhibition has ended and all debriefings have concluded, how should the exhibition organizer use the data collected?


157

SECTION

3VENUE/FACILITY CONSIDERATIONS

CHAPTER 11Request for Proposal

CHAPTER 12Destination Marketing Organizations

Concurrent with planning at the organizational level, finding a destination, venues, and facility(ies) to accommodate the exhibition’s needs is a task for the exhibition organizer. First, the request for proposal (RFP) process, developed over time, identifies a set of parameters required for a destination to host the exhibition. Destination marketing organizations (DMOs) represent the many available venues and facilities at a destination and serve as a significant resource to the exhibition organizer. Contacts and arrangements for a site-inspection and site-selection visit, working through the DMO, provide the exhibition organizer with a consolidated approach to maximize time, effort, and efficiency. As part of the RFP, the development of a floor plan is an essential component for consideration in reviewing destinations, venues, and facilities. The exhibition organizer generally delegates the development of a floor plan to the official service contractor, which demonstrates the relationships among involved individuals throughout the planning process.

CHAPTER 13Facilities

CHAPTER 14Site Selection

CHAPTER 15Developing Floor Plans


159

CHAPTER

11

“Trust, honesty, humility, transparence, and accountability are the building blocks of a positive reputation. Trust is the foundation of any relationship.” – Mick Paul

REQUEST FOR PROPOSAL

MaryAnne Bobrow, CAE, CMP, CMM, CHEPresident

Bobrow & Associates

Denise Capello, CEMHead of Business Development

RAI Amsterdam Convention Centre

Anthony Caterina, CHE Facilities General ManagerAramark Facility Services

LEARNER OUTCOMES


1. Research, construct, and issue requests for proposals (RFP) to a variety of vendors

2. Compose a comprehensive list of needs, wants, requirements and concessions for each RFP

3. Formulate criteria and a selection process for vendors

4. Analyze and evaluate RFPs for the final selection of vendors


160

CHAPTER 11 Request for Proposal

INTRODUCTION

The Request for Proposal (RFP) is a valuable and versatile toolused by exhibition organizers to solicit information and bids for services necessary for a successful exhibition. This chapter provides an overview of the RFP process, the types of RFPs, and the components in the RFP. It briefly reviews the Events Industry Council’s Industry Insights initiative as it relates to the RFP process. The chapter then moves to the development of selection and evaluation criteria and concludes with creating a simple scoring matrix to determine the successful bidder based on a fair and impartial scoring matrix.

REQUEST FOR PROPOSAL DEFINED

A RFP is defined as “a document that stipulates what services the organization wants from an outside contractor and requests a bid to perform such services” (“Events Industry Glossary”). In an era of transparency and accountability, the RFP process serves as validation that the exhibition organizer acts properly in soliciting services for the exhibition. Figure 11.1. gives an overview of the process.

Figure 11.1. Overview of RFP Process

OVERVIEW OF RFP PROCESS

IDENTIFYNEED

DEVELOPSPECIFICATIONS

DRAFT THEPROPOSAL

(electronic or written)

REVIEW ANDAPPROVE DRAFT

DISTRIBUTETO POTENTIAL

VENDORS

SCHEDULEQUESTION AND

ANSWER PERIOD

SIGNCONTRACT

EVALUATESUBMITTEDPROPOSALS

NEGOTIATETERMS

MAKE ADECISION

RFP TYPES

The exhibition organizer uses RFPs to solicit products and/or services from vendors. The most compelling reason is that the exhibition organizer and staff generally lack the expertise and/or resources to handle all of the tasks internally.

The exhibition organizer understands that many facets of the exhibition are successful because of the expertise of outside contractors selected by the exhibition organizer. Many services can be outsourced through the RFP process.


161

Request for Proposal CHAPTER 11

TYPES OF RFPs ISSUED BY SHOW ORGANIZERSExhibition space

Official service contractor (OSC)

Registration and data management

Hotel RFPs, including headquarters hotel

Convention center

Citywide and multi-venue

Single facility

Event technology

Audiovisual

Destination management company (DMC)

Transportation

Professional congress organizer (PCO)

Virtual event platforms

Security

Social media

Website design and management

Table 11.1. Types of RFPs Issued by Exhibition/Event Organizers

INDUSTRY INSIGHTS INITIATIVE AND THE EXHIBITION PLANNING PROCESS

The Industry Insights is an industry-wide initiative that is managed by the Events Industry Council (EIC), conceived to standardize routine tasks, including those of the exhibition organizer, to allow greater focus on strategic issues. Although voluntary, use of the initiative and its tools benefits the exhibition organizer through time and cost savings, ease of communication and sharing of data, enhanced customer service, streamlined systems and processes, less duplication of effort and increased operational efficiency, and better-educated, more professional employees. In addition to these benefits, standardization of forms and templates makes the cost/benefit analysis data easier to locate and assess.

INDUSTRY INSIGHTS RFP WorkbookThe Workbook, created in Microsoft Excel, is the most current tool to assist the exhibition organizer. Using Excel’s spreadsheets, the workbook is separated into tabs. Figure 11.2. illustrates the eight tabs currently in the RFP Workbook.

RFP WORKBOOK TABS

Instructions for Use General Information Single Facility Citywide or Destination

Event Technology/AV DMC and Transportation Official Service Contractor Release Notes

Figure 11.2. RFP Workbook Tabs, 2018


162


RFPs for events and exhibitions contain a significant amount of duplicate information. The RFP Workbook streamlines the process of RFP preparation by organizing the most common RFPs for meetings, conventions, events, and exhibitions in one convenient location. The application is free and found on EIC’s website. The home page of the workbook is found in fig. 11.3. The user enters repetitive information such as the profile, into a General Information worksheet, which in turn populates information on the RFP-specific worksheets. The benefits of this tool include time reduction, auto-calculation features, better organization, and professional appearance of the documents.

COMPONENTS AND DEVELOPMENT OF THE RFP

The RFP, properly constructed, yields the best responses from prospective vendors and enables the exhibition organizer to accurately forecast the exhibition’s budget. The compilation of information ascertained through appropriate questions and clarifications, yields sufficient data for general information, corporate social responsibility initiatives, and specific service requirements to enable the exhibition organizer to make informed decisions as to which vendors will be selected.

Figure 11.3. RFP Workbook (Source: Events Industry Council, 2018)


163


The identification of organizational information precedes the drafting of the RFP. The exhibition organizer must define the scope of services required of the vendor or contractor. Here, the exhibition organizer distinguishes between wants and needs and creates a beginning budget for each service. More importantly, the exhibition organizer must spend quality time researching what is needed so that when questions from proposers arise, answers have already been formulated. The exhibition organizer must decide how, when, and to whom the RFP will be distributed. Generally, an RFP should be distributed to a minimum of three prospective vendors to promote fairness and transparency in the process. In some cases, the minimum of three prospective vendors may be required by organizational policy or law (e.g., state governments in the U.S., for instance, often require public employees to secure three proposals from vendors to gain approval for the expenditure). Consider an open RFP process that identifies opportunities for diversity among suppliers (e.g., minority-owned businesses).

General Information. Regardless of the product or service sought, some information common to all RFPs is classified as general information.

Contact Information. The first section lists contact information and details for the host organization, the third-party vendor (if used), and the key contact person (in this instance, the exhibition organizer).

Exhibition Profile. The second section provides a profile of the exhibition, and includes such details as the market segment, total anticipated attendance, an overview of the organization, and an overview and description of the exhibition, exhibition goals and objectives, theme (if any), attendees (including exhibitors) demographic profile, and accessibility and special participant needs.

Exhibition History. The third section provides the exhibition’s history including historical post-event (exhibition) reports (PERs) and a list of facilities previously used, location, start and end dates, total attendance, total room nights, and total food and beverage spend.

Submission Instructions. The fourth section describes the RFP process, special requirements, and submission instructions.

Description of RFP Process. A brief description of the RFP process is recommended, followed by special requirements unique to the exhibition, including sustainable and corporate social responsibility initiatives adopted for the exhibition, and special needs, e.g., security clearances or required payment terms. Conclude this section by providing clear and concise submission instructions, including a proviso that all responses to the RFP are required to be delivered electronically as a part of the exhibiting organization’s sustainable initiatives.

Event Space Requirements. The fifth section should set forth all event space requirements, noting for each the date and time of the event, the function setup, the anticipated number of attendees, start and end times, and whether a 24-hour hold on the space is needed.

General information

EIGHT SECTIONS OF THE EIC RFP

TEMPLATE

Contact information

Submission instructions

Exhibition profile

Description of the RFP process

Event space requirements

Confidentiality statement

Statement of cost


164


Confidentiality Statement. The sixth section sets forth a confidentiality statement on use and dissemination of the RFP.

Statement of Cost. The final section under general information is a simple statement of cost that puts the exclusive responsibility for costs and expenses incurred in preparing a response to the RFP on the responding party.

SAFETY, SECURITY, AND MEDICAL INFORMATION FOR RFPs

The safety, security, and availability of medical treatment is essential to exhibition attendees and thus deserves consideration in the general information requested in RFPs for both venue and hotel selection. Table 11.2. provides an overview of the major areas to include in the RFP.

SAFETY, SECURITY, AND MEDICAL CONSIDERATIONSActions taken by the facility for fire, weather, food, terrorism, and other bodily harm threats

List and location of emergency and safety equipment maintained by the facility (video surveillance of public areas, automatic external defibrillators, sprinklers, lighting, smoke detectors, backup power generators)

Evacuation, alarm, and food safety procedures

Table 11.2. Safety, Security, and Medical Considerations

The safety and security standards may differ per country. While facilities may not be willing to share their complete and detailed safety, security, emergency, evacuation, and/or medical plans, the exhibition organizer is entitled to have assurances that sufficient processes are in place to manage any emergency situation. The site visit provides additional information so that the exhibition organizer has the best data possible to make an informed decision on the final selection. See Chapter 29 for more information.

INFORMATION FOR SPECIFIC RFPs

From this point forward, the remaining information to be included in the RFP is specific to different types of RFPs issued, with the exception of concessions the show organizer seeks to gain from the vendor. Each RFP may include requested concessions. For a hotel RFP, a concession could be complimentary upgrades; for the official service contractor (OSC), the concession could be complimentary material handling for the exhibition organizer. The exhibition organizer needs to decide in advance what the desired concessions should be and include a request for the concession in the appropriate RFP.

Information Specific to the Exhibition Space RFPSelecting space for the exhibition requires an accurate profile of past exhibitors, including the types of booths historically used; include remarks addressing other considerations such as those found in table 11.3.


165


EXHIBIT SPACE RFP CONSIDERATIONSHanging signs and graphics

Towers

Multi-story exhibits

Canopies and ceilings

Flammable and toxic materials handling

Electrical

Lighting

Storage

Demonstrations

Sound/music

Accessibility• Americans with Disabilities Act (ADA) for exhibitions held in the U.S.• United Nations International Convention on the Rights of Persons with

Disabilities, translated into Arabic, Chinese, English, French, Russian and Spanish

• Canadian Human Rights Commission

Feature areas

Free built (space only)

Shell scheme/hard wall

Table 11.3. Exhibit Space RFP Considerations

IAEE’s Guidelines for Display Rules and Regulations provides detailed information for each of the areas highlighted in table 11.3., including measurement specifics in both feet and meters. IAEE’s White Paper: Evaluating and Implementing Cubic Content into Linear Exhibit Space is an essential tool for experienced exhibition organizers when framing the right questions to ask of exhibit space representatives and OSCs.

The exhibition organizer should provide specifics regarding the anticipated size of the exhibition, any additional meeting space required, and the anticipated attendance for the exhibition. For example, for a single property, such as a hotel, the RFP should also include information regarding desired room blocks and the food and beverage spend. If the response is from a convention center, the RFP should request a copy of the facility’s rules and regulations, as it may contain charges, such as waste disposal, not otherwise specified in the bid.

The exhibition organizer should also provide a technology profile of the exhibitors based on historical data from past events. The organizer should indicate whether the exhibitors are heavy technology users, if wireless technology is required on the exhibition floor and how much bandwidth is required by the exhibition.

Dates. When entering dates for the exhibition, the RFP should include all dates for which the facility is required. Respondents should be asked to specify whether discounted or complimentary move-in and move-out dates are available.


166


Local Regulations. The RFP should inquire about the existence of local, municipal, or other government rules requiring specific performance by the exhibition based on the anticipated number of attendees or size of the exhibition. For example, emergency personnel and equipment may be required when attendance reaches a specific number.

Proposed Layout. Include a request for respondents to provide a proposed layout of the exhibition, allowing the exhibition organizer to see whether the space is contained in one room or hall (or multiple halls combined as one), or whether the proposed space is in multiple, walled spaces. At this juncture, the exhibition organizer will not have an OSC in place, but should be poised to issue that RFP quickly so the OSC can verify the accuracy of the information provided regarding the proposed layout.

Official Service Contractor (OSC) RFPMany factors influence the selection of an OSC. The organization may have a long-term relationship with a contractor who knows the exhibition, its exhibitors, and its needs. Local and national resources, reputation, and recommendations may impact the decision. Pricing is certainly a factor, as is creativity, attention to detail, and other capabilities. A thorough RFP is essential to ensure an educated and informed decision results from the selection process. The RFP for an OSC includes, at minimum, the items found in table 11.4.

INFORMATION FOR THE OFFICIAL SERVICE CONTRACTOR RFPExhibition dates and times

Move-in and move-out dates

Anticipated size of exhibition

Number and profile of exhibitors

Anticipated attendance

Exhibitor packages, if any

Special events

Previous year’s floor plan

General session décor

Anticipated number of signs

Required aisle carpet

Meeting room requirements

Exhibition organizer freight needs

Exhibitor services needed

OSC experience

OSC references

OSC company information

Rules and regulations for the handling of exhibitor appointed contractors (EAC)

Insurance coverage

Financial health of the company

Floor plan and drafting capabilities

Sample floor plans


167


Sample designs

Sample exhibit service manual

OSC services to be outsourced, if any

Exhibition organizer services cost estimates (response to the RFP specifics)

Biographies of key staff; organizational charts

Table 11.4. Information for the Official Service Contractor RFP

The role of the OSC has expanded in recent years to include specialty contractors and ancillary services such as floral, photography, custom booth designs, furniture rental, videography and marketing. Many of these services are outsourced; some may be provided by the OSC. These services are traditionally contained in the exhibitor service manual (ESM) or exhibitor tool kit.

When organizing outside of the U.S., organizers also have the option to work with stand construction companies instead of an OSC. International venues often have a list of preferred partners for the additional services. The choice for one or the other is often based on budget, complexity of the show and familiarity with the destination.

Information Specific to the Registration and Data Management RFPRegistration and data management companies offer full-service operations. In reality, some may fall short of expectations for a variety of reasons, (e.g., lack of experience, understaffing, and additional services). In addition to the general information identified earlier in this chapter, the registration and data management RFP should include the information noted in table 11.5.

REGISTRATION AND DATA MANAGEMENT RFPPre-registered and on-site attendee numbers, demographics, and history

Event move-in and move-out dates, registration hours, and future dates

Exhibitor application processing/payments and reporting

Pre-registration processing (secure online transactions, mail registrations, call center hours of operation and methods of contact)

On-site registration management and staffing

Financial management and reporting• credit card types• fees charged by credit card companies• attendee and exhibitor reports• financial reports

Badge and/or event tickets• holders, inserts, and lanyards desired• information to be included on badges and tickets

Membership verification (if a membership-based organization)

Equipment required for exhibition (including computers and printers)

Post-exhibition reporting, including attendance details and financial reports

Table 11.5. Registration and Data Management RFP


168


RFP responses for registration and data management include not only the typical information found in the general information section above, but information about the business itself, including their experience with exhibitions within the last three years, the year the company was founded, the entire scope of services available, a list of industry organizations in which the company maintains membership, services provided directly and through outsourcing, services available to exhibitors, proposed expenses to the exhibition organizer, staffing and equipment lists, insurance coverage, references, any other requirements, and any additional attachments (e.g., lead order forms, carpet sample colors). Table 11.6. provides additional considerations for inclusion in the registration and data management RFP.

CONSIDERATIONS FOR THE REGISTRATION AND DATA MANAGEMENT RFPA list of pre-, on-site, and post-exhibition capabilities, including customization and additional fees

Management and control of the pre-registration process, including the provision of sample forms for use with attendees and exhibitors

Registration capabilities for ancillary events, including ability to track continuing education credits

Timeline for deployment of services

Value-added services (product locator, message center, Internet café, lead-retrieval services)

Integration of or collaboration between registration program and housing services

Detail costs provided in the response and those not included (e.g., hotel, airfare, supplies, shipping)

Table 11.6. Considerations for the Registration and Data Management RFP

Additional RFPsDepending on the size of the exhibition or event, the exhibition organizer may be responsible for other types of RFPs. If the size of the exhibition demands, the exhibition organizer may use convention center, citywide and multi-venue, and headquarters hotel RFPs. If the exhibition is small, the exhibition organizer may use only a single facility. A variety of sample RFPs are available at the EIC website.

Event Technology and Audiovisual. The evolution of event technology and audiovisual has changed the exhibition landscape, including virtual and hybrid exhibition and event production. Even though the LCD projectors may still be used by some, how information is delivered has been greatly enhanced through bandwidth, high-speed Internet (HSI), mobile apps, virtual events, intelligent lighting, I-MAG projection, on-site event technology, power distribution and rigging. The speed with which technology has progressed may have outdistanced the exhibition organizer’s ability to remain conversant in every area. In selecting an event’s technology and audiovisual needs, the exhibition organizer must be specific about the expectations of the organizer, exhibitors and attendees. For example, 95 percent of an audience of 500 may expect internet access for their iPads, smartphones, and other devices. Because the capabilities and uses of event technology quickly change, the event organizer should seek advice and

Event technology/audiovisual

ADDITIONAL RFPs

Destination management

company

Professional congress organizer

Interpretation services

Social media

Transportation


169


counsel from event technology companies. Request historic usage reports from technology providers to understand the technology requirements of the event and help predict new technologies that would be useful to the users.

Destination Management Companies and Transportation. Depending on the size of the exhibition, either a destination management company (DMC) or a transportation company may be required to handle the logistics of the exhibition. For larger exhibitions (multi-venue and citywide), the exhibition organizer may realize cost savings by outsourcing certain aspects of the exhibition to a DMC. For example, the multi-venue or citywide exhibition normally includes bus routes from hotels to the exhibition venue, special treatment for VIPs, and other services that not only could drain staff resources, but also could increase costs for staff lodging and other expenses. Additional considerations are shown in table 11.7.

CONSIDERATIONS FOR USING A DMCSave time and money Deliver staffing services

Offer local knowledge and expertise Arrange meet and greet

Possess vendor relationships Organize custom tours

Select transportation Extend VIP services

Provide airport transfers Staff hospitality desks

Table 11.7. Considerations for Using a Destination Management Company

The smaller exhibition may not require the scope of services offered by the DMC. The exhibition organizer would instead issue a transportation RFP for limited services directly to local bus companies. The local convention and visitors bureau may be asked to provide recommendations for reputable companies.

Professional Congress Organizer. Exhibitions that are organized at regular intervals in different countries often employ the services of a Professional Congress Organizer (PCO), especially in countries where the exhibition organization’s staff or volunteers are not located. A PCO differs from a DMC in that the PCO provides a broad spectrum of planning services, as distinguished from the narrower scope of services offered by the DMC. PCOs provide local expertise to assist the exhibition organizer in producing an excellent exhibition. PCOs who are members of the International Association of Professional Congress Organizers (IAPCO) must meet precise criteria to become a member, including organization of at least 10 international meetings, five of which must have more than 400 participants, and submission to inspection of offices and audit of procedures. The IAPCO also defines a core PCO as one who provides services to an organization for multiple events or over multiple years. In the PCO RFP, the response to the RFP is called a tender and the respondents to the RFP are called tenderers. Specific services provided by the PCO are listed in table 11.8.


170


TYPICAL SERVICES OF THE PCOAbstract handling Venue selection

Speaker management Lodging

Marketing and promotion Ancillary programs

Financial management and budgeting Tours

Exhibition Transportation

Sponsorship Administration

Registration General requirements

On-site management

Table 11.8. Typical Services of the Professional Congress Organizer

Chief Interpreter Services. Exhibition organizers who produce exhibitions in different countries are faced with a decision as to the number of languages in which the exhibition materials will be translated. The exhibition organizer (or the designated PCO) must determine the host country’s regulations regarding language translation and decide which translations are necessary based on the demographics of the exhibition’s participants. According to the STEPES blog series 2016 (blog.stepes.com), the most common business languages translated from English to another language include, Mandarin, Spanish, Russian, Arabic and Portuguese. Should the exhibition organizer consider translation to the host country’s language? Who is responsible for coordinating these efforts and ensuring the exhibition’s collateral materials are accurately translated into the designated languages? Similar to criteria and qualifications for other RFPs, Table 11.9. lists specifications necessary for the acquisition of a chief interpreter.

CHIEF INTERPRETER RFP SPECIFICATIONSScope of services required

• identification of all interpreters• logistical requirements • preparation of final project• interpreter’s travel and accommodation requirements• daily interpretation requirements• submission and criteria guidelines

Contract Terms

Time Frame for Tender Process

Table 11.9. Chief Interpreter RFP Specifications

Social Media. Prior to issuing a social media RFP, the exhibition organizer should conduct a needs assessment to determine the objectives of the project and the needs of the primary audiences. Table 11.10. delineates some of the questions requiring answers during the needs-assessment process.


171


SOCIAL MEDIA RFP CONSIDERATIONSMethodology for measuring success

Social media channels to be used

Return on investment to measure costs

Table 11.10. Social Media RFP Considerations

Specific information solicited from social media vendors should include services provided, proprietary tools or products of the vendor, and communication media, (e.g., blogs, Twitter accounts, SnapChat, WhatsApp, YouTube and Facebook groups). When issuing a social media RFP for an international event, it is good to be aware of the fact that other countries may use other social media tools. For example, WeChat and Weibo are used in China.

Figure 11.4. WeChat (Source: IAEE)


172


Selection and Evaluation CriteriaThe development of evaluation and selection criteria prior to issuing an RFP is essential. Likewise, the event organizer must establish appropriate methods to evaluate the responses received. Table 11.11. shows the three major areas involved with the review process.

MAJOR AREAS OF THE RFP REVIEW PROCESSTechnical expertise of the vendor

• Past performance/experience• Availability• Reputation

Management criteria• Vendor qualifications

Cost/Benefit criteria

Table 11.11. Major Areas of the RFP Review Process

The show organizer should clearly delineate the process and criteria for vendor selection in the RFP; a timeline for the expected decision should also be included. Additionally, the process by which vendors will be judged and the weight assigned to each criterion should be mentioned. Based on the assignment of a numerical value for each criterion, the scoring metrics should be explained. It is important to note that cost, just like other criterion in the RFP, is just one factor to be considered. The selection should not be based solely on cost.

Analysis and Evaluation of ProposalsOnce responses to proposals are received and the time to respond has expired, a simple weighted matrix to evaluate the criteria can be utilized.

SCORING MATRIX TO EVALUATE PROPOSALSCriterion Weight Score Weighted

ScoreVendor provision of service 5 3 15

Vendor qualifications 5 3 15

Past performance/experience 4 2 8

Availability 1 3 3

Reputation 5 2 10

Familiarity and experience in the local area

3 2 6

Total Score 23 15 57

Weight Meaning Score Meaning5 – Very high importance 3 – Completely satisfies

4 – High importance 2 – Substantially satisfies

3 – Medium importance 1 – Partially satisfies

2 – Low importance 0 – Does not satisfy

1 – Very low importance

Table 11.12. Scoring Matrix to Evaluate Proposals


173


In table 11.12., scoring is determined by first assigning a weight to each criterion. A weight of five means a very high importance is placed on that particular criterion and one equals very low importance. Next, weight is assigned to each score, ranging from a three that signifies completely satisfied to a zero that is unsatisfactory. For each criterion, the weight is multiplied by the score to arrive at the weighted score.

For example, the vendor in table 11.12. scored 57 out of a possible total of 69. Each additional responding vendor is scored using the same metrics. Based on the scores received, the exhibition organizer (or an established selection team or committee) selects the preferred vendor. The process then moves on to the next stage: negotiation and contracting.

SUMMARY

Whether the exhibition organizer prefers to use the Industry Insights Workbook or create an individual RFP, the information provided and its presentation will impact the quality of the responses received. A complete and concise information request yields a higher response rate and a superior quality. Following a transparent course of action throughout the RFP process supports the accountability of the exhibition organizer and the credibility of the final selection process.

KEY WORDS

accountability

chief interpreter services

concession

core PCO

corporate social responsibility

destination management company (DMC)

exhibitor service manual (ESM) or “exhibitor tool kit”

official service contractor (OSC)

outsourcing


professional congress organizer (PCO)

request for proposal (RFP)

sustainable

tender

tenderer

transparency

DISCUSSION QUESTIONS1. How can the exhibition organizer use the RFP to identify qualified vendors for

outsourced products and services?

2. List and describe the components of an RFP.

3. What are concessions and what value can they provide?

4. What advantages does a weighted matrix add to the decision-making process?


175

CHAPTER

12

“You cannot be a marketplace hero unless you build a culture in which everyone chooses to go beyond the basics to deliver something that makes you distinctive.” – qtd. in Pennington 54

DESTINATION MARKETING ORGANIZATIONS

David DuBois, CMP, CAE, FASAE, CTAPresident and Chief Executive Officer


Karen M. Gonzales, CMP Director of Partnership Relations


LEARNER OUTCOMES


1. Describe the role and functions of destination marketing organizations (DMOs)

2. Articulate the history of DMOs

3. Explain the organization and funding of DMOs

4. Relate DMO marketing and sales activities to the exhibition and events industry

5. Explore DMO services for exhibition organizers


176

CHAPTER 12 Destination Marketing Organizations

INTRODUCTION

Destination marketing organizations (DMOs), often referred to as convention and visitors bureaus (CVBs), are predominantly not-for-profit organizations charged with marketing and representing their destination and assisting with the long-term development of communities through hospitality industry growth strategies. Many countries conduct these activities through government-supported organizations referred to as ministries of tourism or national (or state) tourism offices. Additionally, some cities include these activities within their own departments or within the existing chamber of commerce.

HOSPITALITY INDUSTRY OVERVIEW

The hospitality industry includes DMOs, as well as hotels, event facilities, restaurants, transportation providers, audio/visual installation companies, entertainers, professional speakers and decorators. Destination management companies (DMCs) and professional congress organizers (PCOs) are part of this vast industry too. As towns and cities grow, aand more people move into the area, the hospitality industry evolves because the services provided by these companies contribute significantly to the quality of life in the area. Once the hospitality industry is established, it benefits from a collaborative approach to sales and marketing, which led to the development of DMOs. They provide this collaborative approach and serve as a relatively unbiased resource for potential clients of these established hospitality providers.

DMO ResponsibilitiesBesides tourism, hospitality industry growth strategies include attracting exhibitions, meetings, and events to a geographic area.

SALESThe DMO will solicit organizations to hold exhibitions, meetings, and events in their represented venues and destination. The DMO does this by developing business relations with established and potential clients. Client relations are developed face-to-face, online, through other technologies, and at trade shows targeted to exhibition and event organizers.

MARKETINGThe DMO creates collaboration between hospitality industry providers in the area, and develops promotional material online, in print, and through other communication technologies.

SERVICEThe DMO provides exhibition organizers with information and services that assist them with identifying the best facilities and suppliers that will enhance and support the success of their programs and activities. The DMO also assists exhibition and event organizers with promotion of their activities, thus supporting attendance generation.

Figure 12.1. Primary Destination Marketing Organization Responsibilities

DMO PartnersDMOs are like a key to the city that represents a relatively unbiased resource and serves as an official point of contact for exhibition organizers and meeting planners while planning exhibition or event logistics. In contrast, destination management companies (DMCs), under contract with an exhibition/event organizer, work closely with DMOs, by providing local knowledge, expertise, resources, and assisting in the design and implementation of the exhibition.


177

Destination Marketing Organizations CHAPTER 12

Their services might include arranging special events, transportation and tours. Likewise, professional congress organizers (PCOs) are companies that provide most of, if not more than, the services provided by DMCs. However, PCOs are found predominantly outside of the U.S. and often supplement the management staffs of the exhibition organizer.

Financial SupportGenerally, DMOs are funded by governments through a combination of hotel occupancy taxes, improvement districts, and/or membership dues as represented in fig. 12.2. In some cases, the DMO is funded by the government and not taxes. In contrast, DMCs and PCOs propose a pricing structure based on services or work plans to be rendered. Fees for services proposed and/or rendered are negotiated and agreed to between the client and the individual company.

PRIMARY SOURCES OF PUBLIC AND PRIVATE FUNDING

The pie charts below show the primary sources of DMO public and private funding. Of all reported public funding, 79% came from hotel room tax, with assessments a distant, but growing, 6%. Membership dues remain a prevalent form of private funding, at 23%, and advertising (print and other sources) are combined at 20% of funding.

Public Sources of Funding as a % of Total Public Funding Dollars (All Respondents)

Private Sources of Funding as a % of Total Private Funding Dollars (All Respondents)

Hotel Room Tax,79.3%

Assessments,6.1% Special

Restaurant Tax,2.6%

Other CityTax Funds,

1.9%Secondary

County Funding,1.9%

SecondaryCity Funding,

2.1%

Other CountyTax Funds,

1.3%Other*,5.3%

*INCLUDES:

Other Public Funding 3.1%

Public Funding Less than 1.3%:

Sales Tax 0.8%

Secondary County Funding 0.6%

Other State/Province Tax Funds 0.5%

Donated (non-cash) Products & Services from Public Sources 0.2%

Car Rental Tax 0.1%

Secondary National Funding (grants, special allocations, etc.) 0.1%

Other National Tax Funds 0.0%

*INCLUDES:

Other Private Funding 16.2%

Private Funding Less than 5%:

Visitor Information Center(s) 4.8%

Corporate Sponsorships 4.3%

Promotional Participation 4.2%

Publication Sales 2.8%

DMO Website/Advertising Links 2.2%

Investment Income 1.7%

Service Fees 1.4%

Convention Registration 1.0%

E-Commerce 0.9%

Building Revenue 0.5%

Chamber of Commerce 0.1%

MembershipDues,23.1%

Other*,40.0%

Cooperative Advertising,11.2%

Print Advertising,9.0%

Donated (non-cash)Products & Services from Private Sources,

6.7%

Event Hosting,5.1%

Convention CenterRevenue (does NOT

include Building Revenue),6.7%

Print Advertising Revenue: Primarily organizations buying ads in DMO publications, e.g., Visitor Guide, Meeting Planner Guide, etc.Cooperative Advertising: External advertising, specific advertising programs where the DMO will act as the organizer and collector of monies.

Figure 12.2. Primary Sources of Public and Private Funding (Source: 2011 DMO Organizational & Financial Profile)


178


A majority of services provided by the DMO are complimentary. In some cases, the DMO may charge for services that are typically sold at cost, with little to no profit. The DMO typically does this to present significant savings to the exhibition organizer. For example, if the DMO purchases nametags in large quantities, say 30,000 at one time, the savings would be significant to the exhibition expecting to utilize only 3,000 nametags. They would need to order 10 times the number of nametags needed to realize the same savings. The buying power of the DMO for such services can be much greater than the buying power of the single exhibition, but this is not always the case and the exhibition organizer should carefully consider options when purchasing supplies through the DMO. While the DMO does not expect to generate significant revenue through sales, it will avoid losing money by providing services that could be obtained through other sources by the exhibition organizer.

DMOs and local businesses may pool advertising funds in a cooperative advertising program to increase the marketing reach for the co-op participants. For instance, an advertisement for a destination might appear in a major international publication. Each participant pays a fee to the DMO to be the organizer of the ad creation and placement. Pooling together available funds for this type of advertising can often make the difference in whether a small business can afford to advertise at all. Substantial financial resources are expended by the destinations and venues on staffing, sales, marketing, and services departments. The charge is to create effective advertising, marketing, and service programs that gain a competitive advantage (see fig. 12.3.). In other countries, DMO’s may be organized differently than in the U.S., and it is important to consult the DMO in the local destination.

Figure 12.3. DMO Advertisement (Source: Visit San Antonio)


179


Competitive and Complex EnvironmentCompetition is fierce among first-tier and second-tier destinations around the world. Many destinations have large hotels and exhibition venues available and constantly compete for global exhibition, meetings and events business.

Exhibition organizers have many destination and facility choices and are constantly solicited by DMO and facility sales and marketing representatives charged with securing future business and contracts. To sort through this marketing message traffic, the exhibition organizer develops criteria that must be met by the many destinations vying for their business, and will develop positive business relations with the viable DMOs and facilities that meet those criteria. The others are simply monitored for future changes that may make them potential destinations. Criteria could include net square feet/meters of exhibit space, hotel accommodations, parking availability, air transportation accessibility, audiovisual supplier availability, catering potential, and many other supplier or service options. Geographic location may be a top priority in potential destination criteria.

Destinations consider their exhibitions and events venues as a perishable product, much like hotels consider their rooms that go unsold on any given night. Marketing this perishable product to exhibition/event organizers is vitally important to the financial success of the destination and its venues, as well as the other hospitality industry partners at the destination.

DMO ManagementThe typical DMO in the U.S. is a not-for-profit association, managed by a chief executive officer (CEO), and a board of directors. The board may be comprised of local government representatives, leaders in the hospitality industry, and general citizens interested in the DMO’s purpose and success. The CEO usually answers to the board of directors and works in consultation with the president of the board. A large DMO will have departments for sales, services, and support functions, such as marketing and community relations. If membership is a key component of the DMO’s makeup, a department for member relations is common. Some DMOs have invested in volunteer coordination and have a well-staffed volunteer department. These volunteers support large and repeat business clients, such as public events for amateur sports competitions. The DMO will often have a chief financial officer (CFO), and may have a lobbyist for local, state, and national lobbying efforts on behalf of the hospitality industry in the area represented.

Some DMOs are quite dependent upon memberships, so they have developed a robust department that provides member services. These services can include training in hospitality, new trends, and understanding the exhibition organizer function. The DMO may help guide the marketing efforts undertaken by the members, and may lead in collaborations such as group advertising ventures that make high-end advertising affordable for even the smallest of hospitality providers in that area. Providing marketing tools such as the online meeting planner’s guide is an additional service to members; it is not just a service to exhibition organizers. Without this marketing tool, some of the suppliers at the destination would have little opportunity to promote directly to potential clients.


180


The DMO also has a responsibility to keep the local and broader government agencies informed of the industry’s status in the area. This information helps guide the government agencies when developing and enforcing regulations and legislation. Rather than being viewed as lobbying, this source of information is viewed as an essential exchange for the benefit of using taxpayer dollars (in the form of hotel occupancy taxes, for instance). Making annual, if not more frequent, presentations to government agencies is usually a task that falls to the CEO or the CFO.

DMO SALES FUNCTION

DMOs frequently divide staff tasks into specific marketing segments, (e.g., exhibitions and events, business travel, leisure group travel, and individual vacation travel). Of these segments, exhibitions and events generally command the most sales and marketing dollars from DMOs. However, the most successful destinations are those that not only have a solid market share of exhibitions and events, but also attract individual tourists and group vacations (see fig. 12.4.).

Figure 12.4. DMO Sales Function (Source: Visit Anaheim)

Lead GenerationRegardless of the exhibition and/or event size, DMOs serve as the initial resource in the venue review process. When an exhibition/event organizer contacts a DMO, the director of sales assigns a sales manager to assist in obtaining the essential information and specifications to ensure that a successful exhibition/event becomes a reality. The initial contact may begin with a request for proposal (RFP), or may begin with a profile of previous events hosted by this organizer. Through analysis of the RFP or profile, the sales manager can determine if the destination

Sales

DMO FUNCTIONS

Marketing

Service


181


is compatible with the exhibition/event organizer’s needs. (See Chapter 11, Request for Proposal.)

Most DMOs use a database system to track RFPs in process and to respond to open RFPs in a timely manner. The proposal generated in response to the initial contact may take hours or days to complete, and is generally returned to the potential client electronically. In some cases, a formal presentation in a face-to-face format is also an option.

The DMO sales manager is the primary conduit between the exhibition organizer and representatives of required venues and services to ensure the information is appropriately disseminated, received and understood. Additional inquiries can be addressed and answered through communication with the sales manager. The exhibition organizer is strongly encouraged to personally visit and explore the destination and venue options, should the proposal have sufficient information to warrant such an investment of time and resources.

Site SelectionWhen the exhibition organizer is confident in a proposal, a thorough inspection of the destination and venue options is critical to ensure the requirements of the exhibition can be met and how they will be accommodated. The DMO is the central and most trusted source for guidance and advice during the site selection process; this service is provided at no cost or obligation to the exhibition organizer. DMO representatives also have the knowledge to provide up-to-date data about the destination, as well as planned future developments.

Throughout the site inspection, the exhibition organizer, the DMO representative, and the venue staff will be taking notes. The inspection visit typically has a follow-up process, where questions are answered and more information exchanged. This process may lead to a positive selection of specific venues at the destination. Exhibition organizers may visit three or more potential destinations before a decision is made; therefore, careful notes are essential throughout the process. Photos are useful in this process, as are tablets, and other electronic means for capturing essential information.

Besides waiting for RFPs to be submitted, the sales manager will engage in personal sales, where a visit is paid to the exhibition organizer’s place of business. Sales representatives also attend numerous trade shows targeted to exhibition/event organizers, such as those hosted by the International Association of Exhibitions and Events (IAEE). At these shows, the sales representative can present information directly to potential customers, generate leads that need to be followed up by venue sales representatives, and may even generate unexpected RFPs. Generally, these trade shows simply improve the sales relationship by allowing the potential clients and suppliers to interact in a setting that is conducive to exchanging critical information. While face-to-face interaction on the client’s turf is important, the exhibition bringing the marketplace players together in one setting is critical for the DMO sales budget. Few DMO sales departments have sufficient staff to visit all potential clients face-to-face, one at a time. Exhibitions play a critical role in fostering beneficial relationships between clients and suppliers in the exhibition industry.


182


DMO MARKETING FUNCTION

Another correlating function of DMOs is the coordination of the sales and marketing efforts of the destination’s hotel, convention, exhibition, and other hospitality partners when soliciting business. If the DMO is membership based, these organizations join the DMO as members to further promote and coordinate the business process.

Through websites, where a meeting planner’s guide is typically presented, the DMO provides a thorough list of the available suppliers at the destination. Links will send the potential exhibition organizer directly to those vendors, where the visitor can see virtual tours and specific data about square footage/meters, number of rooms, availability and amenities. This is often the first point of contact for a potential client who does not have a long-term working relationship with the DMO. If this is the case, the exhibition organizer will have to find the sales director’s contact information and can start the RFP process through that contact.

DMOs also offer brochures, in print and electronic formats, which can be sent upon request. These are less common as the Internet has captured the bulk of promotion activity with its low cost and updating capabilities. However, print advertising is still suited to reaching many potential clients, broadcast advertising continues to reach millions at a time, and other traditional forms of advertising are still in use, including outdoor advertising options. Since the traditional media advertising options are priced above the budgets of many hospitality providers, the DMO offers a unique service of collaborative advertising contracts and increased buying power.

In addition to these services, DMOs serve as a liaison with governing agencies and country tourism departments, in an effort to enhance the effectiveness of common goals. At times, these larger hospitality-related agencies can improve the marketing options available to hospitality providers. They may host trade shows, peninsula or entire rows of booth space at a trade show, or may disseminate marketing information through their varied outlets around the country, region and world.

DMO SERVICE FUNCTION

The DMO offers service directly to the potential and contracted client in four basic phases: before contract signing, after contract signing yet before the exhibition, during the exhibition, and after the exhibition. Since most, if not all, of these services are offered free of charge to the exhibition organizer, taking advantage of most, if not all, of these services makes good financial sense for the exhibition. Generally, these services are clearly stated on the DMO’s website, but the sales manager will also recommend the services as appropriate when working with the potential client, before contracts are signed with venues and suppliers at the destination.


183


Before Contract Signing Services offered to the potential exhibition/event organizer include the following:

• Relatively unbiased information across all aspects of the destination

• Information database providing one-stop shopping

• Lodging options and potential room blocks

• Exhibition and event space statistics;

• Dining options outside the exhibition hall, and

• Off–site venues, if needed

Site Selection. The DMO can be of significant assistance during the personal site selection process by arranging appointments to visit the venue options and with the appropriate suppliers. A complete itinerary is developed and, in most cases, the sales manager accompanies the exhibition organizer throughout the site tour. The DMO can also provide the exhibition organizer with information on local laws or ordinances and regulations that may impact the exhibition. For example, union requirements in the U.S., taxes, alcohol serving laws, and other venue specifics can be reviewed and discussed. Information about required permits can also be obtained through the DMO (see fig. 12.5.).

Figure 12.5. Las Vegas Convention and Visitors Authority (Source: Oscar & Associates)

Formal Presentation. Should the exhibition organizer desire a formal presentation from the destination to the organization’s governing body, the DMO assists in coordinating the final proposals and/or the actual contracts from the destination stakeholders. In some cases, the DMO may be asked to present the total destination package at a meeting of the destination selection decision makers. Since the DMO has the goal to provide service to the exhibition organizer and ensure all details have been accommodated to make the destination attractive and appealing in the final approval process, this final presentation is a standard part of the selection process.


184


After Contract Signing, Before the ExhibitionMany exhibition organizers focus on the services provided by the DMO after contracts are signed. In fact, if the exhibition organizer does not start the RFP process with the DMO, but goes directly through the sales representatives at the exhibition hall, the DMO may not even be brought into the process until contracts are signed. Again, since the DMO has the purpose of supporting the exhibition organizer and a successful exhibition, the DMO will still provide services whether they generated the lead and proposal or not. However, the exhibition organizer loses out on the free services to be had before contracts are signed. During the next stage, the DMO may still offer many beneficial services for the exhibition organizer, the exhibitors, attendees and other stakeholders:

• Reduces time, energy and money in the planning stages by organizers

• Recommends pre- and post-exhibition activities, e.g., off-site special events

• Assists in creation and distribution of destination collateral materials

• Assists with corporate social responsibility (CSR) programs and sustainable exhibitions and events

Attendance Building. Building attendance for an exhibition is a top priority for exhibition organizers. The DMO can partner with the exhibition organizer to maximize promotion efforts for the destination and attendance. Important links may also be available with country economic development offices, regional or local chambers of commerce, or educational institutions that offer programs that connect with local industries related to the exhibition.

In addition to the DMO’s responsibilities to increase the number of hosted exhibitions and events, the tourism market is another major goal. Advertising and promotional programs created to attract individual or group tourism are equally effective in assisting exhibition organizers with attendance building.

Materials available will include descriptive language that builds a visual perspective of the destination, photos, videos, social media and websites that visitors will find attractive. Some visitors like to shop at unique destinations, visit museums and art galleries, take in local attractions, or visit natural wonders. All of this information can be made readily available to the exhibition organizer to attract attendees to this destination and exhibition.

Transportation Logistics. DMOs not only know their local suppliers very well, they also understand the best transportation options provided to/from and within the area. They will be invaluable when the exhibition organizer needs to provide transportation information to potential attendees. In some cases, the DMO can become involved in negotiations with these transportation providers, to the benefit of all stakeholders.

Planning Guide and Local Contacts. Most DMOs publish a planning guide providing exhibition organizers with information on the destination’s services such as venue specifications, lodging options, event facilities, specialty service contractors, suppliers, attractions, and other hospitality services. Additionally,


185


DMOs support the exhibition organizer by providing information on public safety and transportation, parks and recreation offerings, and other venue services. For example, a venue may have planned a public festival or parade that includes street closures that may adversely affect an exhibition’s shuttle bus plan.

Similarly, an exhibition may have a need to close a street that accommodates a special shuttle bus plan. In either situation, the DMO can serve in an advocacy role on behalf of the exhibition’s interests.

The destination will likely have high-profile business and political leaders who are supporters of the DMO. These important contacts can be asked to write letters of welcome to attendees of the exhibition, arrange for personal appearances of dignitaries at a ribbon cutting or an opening general session, or participate in other important functions at the exhibition. In turn, government officials and other dignitaries welcome these opportunities, especially if the media is present. As a result, the exhibition can receive additional, free publicity.

During the EventWhile many exhibition organizers are familiar with the services provided before the event, some DMOs also have valuable services that enhance the exhibition while attendees are on-site. These during-the-event services include:

• Support on-site logistics, such as connecting with local suppliers in emergency situations

• Support on-site daily meetings with key suppliers

• Suggest or provide registration assistance and personnel

• Provide local information booths, kiosks and/or personnel

• Provide trained tour guides or recommend a company with this service

After the EventWhile DMOs often assist on enhancing pre-exhibition planning and on-site execution, the DMO may also offer follow-up services. Typically, the DMO staff orchestrates the post-exhibition/event meeting with key suppliers and the exhibition/event organizer to reconcile accounts, review successes, and to determine potential improvements for future exhibitions/events. DMOs may have evaluation systems of their own, to determine how the sales process worked, whether services provided for attendees were well-received and sufficient, and if the exhibition/event organizer received a satisfactory level of services. Before the exhibition/event organizer leaves the destination, the DMO sales staff may make arrangements for the next contact, whether that be additional follow-up for the past exhibition/event, or intended as a sales call for a future exhibition/event.


186


Figure 12.6. DMO Services (Source: Visit Baltimore)

The DMO also meets separately with venue representatives and other suppliers in the area to determine how they evaluated the exhibition/event. This sets the stage for future proposals on business with the exhibition/event organizer. This phase of evaluation leads not only to improvement for services with the particular exhibition/event organizer, but for all future business at the destination. Being well-prepared to meet the needs of exhibition/event stakeholders, from organizers to attendees, is critical to the success of a destination. In the political arena, DMOs maintain close relationships with local and national government officials and other political dignitaries. This part of the DMO responsibility is important to help government officials recognize the economic impact of the hospitality industry as a whole and, in some cases, the value of individual exhibitions/events to the local economy.

ADDITIONAL DMO SERVICES

Many DMOs have developed listings for speaker, entertainer, and educational options for their area. The DMO also has contacts throughout the area and can make useful connections, given the exhibition organizer’s specialized area. Some DMOs have developed unique services for the area, often to overcome disadvantages to their location. One DMO may provide free shuttle transportation to their city, located at a distance from the regional airport, when the venues do not provide that service. A DMO may provide media attention on a local cable channel, and another might provide the opportunity to join a radio talk show.


187


DMOs concentrate on the differentiated advantage they can offer in comparison to competing destinations, and the exhibition organizer needs only to ask about other services to see what sets one DMO apart from another. In addition, exhibition organizers can request specialized services to see if they can be made available, even when that service was not offered on the DMO’s website or other marketing materials.

ADVOCATES FOR THE EXHIBITION INDUSTRY

DMOs are often the industry’s principal advocate from the local to the international levels, working in conjunction with other industry organizations and advocacy groups. For example, issues primarily include working at the political level to gain approval of an exhibition complex, reduce crime in a central business district, address the issue of homelessness and panhandling in the proximity of an exhibition venue, or the use of taxes within the local community.

One may wonder the reason why an exhibition organization should be concerned about a destination’s issues or problems with local government? The answer is actually twofold.

1. Many exhibitions need to be in specific cities for the industry markets, so it is incumbent upon cities to maintain an attractive and successful environment to attract exhibitions/events and attendees.

2. Local government officials belong to professional organizations and frequently discuss issues and search for common solutions to governance problems, as well as serving as the host destination for meetings and events of the organization.

The use of hotel occupancy taxes has relevance in the global arena. Some cities use these taxes for purposes that are not related to the promotion of future exhibitions/events and tourism business. Some cities will use the occupancy taxes to supplement operating funds and other non-visitor industry-related programs.

As advocates of the exhibitions and events industry, DMOs have an important and expressive role in lobbying and working with governing and regulating bodies with regard to the proper and limited use of such taxes. Additionally, DMOs are the primary lobbying entity for effective programs on the care of the homeless, drug and rehabilitation, clean streets and sidewalks, safety and security and transportation improvements. DMOs also are influential in other government or private development programs that enhance the attractiveness of the destination.

As the industry advocate in performing these roles, DMOs collaborate with other industry organizations who produce exhibitions, as well as those organizations involved in restaurants and lodging. The power of these collaborative efforts is effective and government leaders, business communities, and citizens listen with greater interest. Exhibitions, events and tourism are tremendous economic engines that significantly contribute to the local and global economies. Millions of jobs have been created to support the industry and result in the generation of massive tax revenues.


188


INTERNATIONAL MARKETS AND IMPACT

The exhibition industry provides a global marketplace for bringing buyers and sellers together. Major exhibitions and events attract a growing percentage of both exhibitors and attendees from international destinations. The role of the DMO in the global environment is simple – adapt to the expanding international marketplaces and special needs of international attendees in order to remain competitive.

Destinations International (DI), the global professional association for DMO executives, annually supports many exhibitions and events that attract organizers from around the world.

These specific exhibitions bring together international representatives from country and local tourist and exhibition offices, DMOs, major hotel companies, airlines, service providers, trade associations, and other international hospitality industry executives.

Regardless of whether a host destination is an international gateway or simply a favorable local or regional exhibition destination, DMOs take a leadership role in the representative communities to ensure international guests are welcomed and accommodated. Thus, it is extremely important that exhibition organizers work closely with DMO counterparts to identify the international trends and realities that result in the continued success and growth of the host destinations.

SUMMARY

DMOs have major roles and responsibilities in a destination’s exhibitions, events, and tourism industry and serve as the centerpiece of marketing efforts to attract business and build attendance in the community. DMOs provide valuable services to exhibition and event organizers and act as advocates and industry partners, to provide ideas, services, and connection to suppliers. In general, most DMO services and support are complimentary or with a minimal charge to customers and visitors. More significantly, DMOs serve to ensure the success of the exhibitions and events that utilize the destinations and the growth of the hospitality industry within the area of representation.

Executives in the hospitality industry support the need to focus on providing memorable experiences versus the basic concept of being of service to guests or exhibition organizers. In other words, simply providing good service is insufficient when consumers demand more. Growing companies attracting the largest market shares such as Starbucks, Carnival Cruise Lines, Disney, and some major airlines, have built organizations that provide lasting memories through extraordinary service.

Likewise, DMOs are cognizant of the need to provide experiences that are noteworthy and lasting. The Internet is a significant equalizer in providing consumers with information about products, services, costs and availability. Nearly every destination has created a dynamic website, with links to potential products and services that could possibly be required by the exhibition organizer. The most successful DMOs have captured innovative features and highlights of the destination to differentiate products and services offered to gain a competitive advantage.


189


KEY WORDS

chief executive officer (CEO)

convention and visitors bureau (CVB)



destination marketing organization (DMO)

first-tier destination

hospitality industry

logistics

not-for-profit organization

perishable product


second-tier destination

DISCUSSION QUESTIONS1. What is the exact name of the DMO in your hometown or in the largest

destination in proximity?

2. Identify the funding options for DMOs.

3. Discuss the purpose of DMOs and how they, as service partners, can be beneficial to exhibition organizers.

4. Explain the phrase “relatively unbiased resource” and how it relates to the way DMOs represent suppliers in the designated area.

5. Discuss how DMOs build trust with their current and potential clients.


191

CHAPTER

13

“I have always believed in openness, flexibility and a sense of fairness with an understanding that you don’t always possess the best ‘wisdom,’ and then being pliable enough to buy and support your customers’ goal or vision.” – Frank Poe, Executive Director, Georgia World Congress Center, as qtd. in Baugus 3

FACILITIES

Anthony Caterina, CHEFacilities General ManagerAramark Facility Services

Frank PoeExecutive Director

Georgia World Congress Center

LEARNER OUTCOMES


1. Differentiate between the types of facilities that host exhibitions

2. Select an appropriate facility type based on the needs of the exhibition

3. Explain the similarities and differences between U.S. and non-U.S. facilities

4. Recognize the value of understanding and articulating the economic impact of the exhibition on the host city

5. Identify potential revenue streams for exhibition facilities


192

CHAPTER 13 Facilities

INTRODUCTION

The growth in the global exhibition venue market place provides expanded opportunities for meetings and exhibitions in a variety of markets. A key to the success of an event requires a thorough understanding of the destination, venue ownership and management structure, costs, policies, and availability of support services.

Understanding venue types suitable for an exhibition and the potential influence venue selection has on the financial success of that exhibition are important elements in the venue selection process. Key components that influence a venue’s ability to meet or exceed the exhibition organizer’s service expectations include booking policies, pricing structures, available services, organizational structure, capital funding, sales/marketing policies and governance commitment to the venue.

This chapter examines various venue types that host trade and consumer exhibitions. Most exhibition venues supporting the trade and consumer show industry have similar attributes (e.g., exhibition/meeting spaces, food, utility and technology services), but they also have unique characteristics that influence customer interaction. All of these attributes represent variables that exhibition organizers must identify and understand when negotiating the best business arrangement for the exhibition. Additionally, understanding the economic impact of the exhibition on the facility and surrounding community is a significant bargaining tool for the exhibition organizer, just as understanding the economic impact of operating the facility over time guides policy and strategy required by the venue owners.

TRADITIONAL EXHIBITION VENUE OPTIONS

A description of exhibition venue options includes venue type, ownership, and operational influences. The exhibition organizer must also consider the venue lease policies and costs when developing an exhibition business plan. Other important considerations when finalizing the lease include understanding the center’s financial goals/objectives and policies that govern management in areas such as venue rentals, services and procedures.

Throughout the world, exhibition organizers utilize various types of traditional venues: convention centers (publicly held or privately owned, in the U.S. and elsewhere), conference centers, hotels with exhibition space, fairgrounds and exhibition centers. Exhibition centers may also be known as expo centers.

Convention CentersModern convention centers in the U.S. had their origin as municipal civic centers, which were designed to support local community and consumer events. These venues typically included a large multi-purpose hall capable of hosting a variety of events, (e.g., local banquet to the traveling circus). In addition, some civic centers included an auditorium or an attached arena. The meeting space in these venues often lacked the amenities and finished quality expected by the conventions/exhibitions of today. Some communities rebranded their venues from civic center to convention center. However, most cities began to develop


193

Facilities CHAPTER 13

purpose-built convention centers (see fig. 13.1). These latter developments often reflected the collaborative work among exhibition organizers, suppliers, and venue operators. This collaboration resulted in improved facility functionality, amenities, and operational efficiency coupled with a stated objective for enhancing the customer experience.

Figure 13.1. McCormick Place (Source: McCormick Place)

Convention centers, regardless of ownership or management structure, have some commonalities. Pricing policies vary by center, but a common approach is to set a basic rental fee with additional charges. In some cases, the services available at the center may not be included in the rental fee. For example, additional charges could be electrical, plumbing, housekeeping, communication services, and dumpster hauling. Meeting and ballroom fees generally include one set-up for how the room will be laid out, (e.g., table rounds and chairs set in the room) for the duration of the show and use of permanent sound and lighting systems, with set-up changes resulting in additional fees.

Knowing the convention center’s financial mission and how it is managed will assist the exhibition organizer in the planning and budgeting processes. While venues can have common operational and service provider policies and procedures, local laws and restrictions can vary considerably. Most convention centers have rules and regulations documents that are considered part of the lease between the center and the exhibition organizer. During the site-selection process, the venue’s rules and regulations should be carefully reviewed. The exhibition organizer must identify rules or regulations that could diminish the exhibition’s effectiveness. In turn, some of these restrictions need to be built into the exhibitor contract for booth/stand rental.

For instance, an exhibition hall may prohibit the use of heavy machinery in setting up and tearing down exhibits; that could be a detriment if the exhibitors manufacture ambulances and fire engines. In turn, some of these restrictions need to be communicated to exhibitors and built into the booth/stand space rental agreement.


194


As an additional example, in the U.S., some cities operate with labor unions and often have strict regulations regarding who can do tasks related to exhibits. The electrical professionals union might require a certified union member to plug in any electrical display on the exhibition floor; the exhibition rental agreement might specify booth/stand set-up rules and require that exhibitors adhere to all union regulations.

Government-owned Convention Centers. The majority of convention centers in the U.S. today are publicly owned and constructed by a city, county, state, or tribal entity with the goal of providing a positive economic impact for the venue ownership. Outside the U.S., convention centers are generally owned by federal or regional government agencies or private enterprises.

The capital costs for convention centers in the U.S. have been supported principally by hotel taxes assessed by the public ownership within their taxing jurisdiction. However, as convention facilities expanded and amenities improved, additional revenues to support capital and operating costs were needed. For example, car rental taxes, additional hotel room taxes and surcharges, restaurant taxes, special taxing districts and alcohol beverage taxes provide additional revenue streams. Policies by which events would be permitted to lease the space often favored events with strong economic impact, while sales and marketing strategies emphasized priority status for conventions and/or exhibitions (assuming that these events had more economic impact than a sales meeting or professional development conference).

Besides outright ownership of a convention center by a government agency, another form of ownership and operations is an authority. Authorities can be formed by cities, counties, states, and tribal agencies in the U.S. The authority’s governance is often under an appointed board of directors or governors, who often have an entrepreneurial approach to business.

Beyond ownership, customers of the convention center should understand how the center is administered or managed. Some publicly owned centers are administered as a department of the government entity, while others have management agreements with third-party organizations or private management companies.

The private management company staffs the center and receives a management fee, with the potential for incentives based upon criteria negotiated between the public ownership and the company. The management of other third-party vendors supplying goods and services to the venue, which may also produce events in the venue, can be a part of the business arrangement. Under these structures, one of the goals for the private management company is to create profitability for the third-party management group.

Privately owned convention centers. Privately owned and operated exhibition venues function under a different mission than publicly owned centers. For example, the Sands Expo & Convention Center in Las Vegas is a large, privately owned and operated convention center. Connected to the center is the 4,049-room Venetian Resort Hotel and Casino. The Sands Expo & Convention Center’s mission is to provide meeting/exhibition space to support maximizing the Venetian


195


Resort Hotel and Casino’s room night utilization. Gambling revenues generated in the casino also enter the equation in pricing considerations for exhibition hall rental and pricing for services.

International Convention Centers. International (outside of the U.S. and Canada) convention centers are often constructed for similar economic development goals. The physical characteristics of exhibition hall space, loading and unloading areas, and exhibitor services are also analogous to most U.S.-based venues. However, the amount of meeting and ballroom space may be more limited in comparison to U.S.-based venues.

The same criteria used in U.S.-based exhibitions can generally be applied for assessing the exhibition venues at international venues. Destination research, ownership structures, operating principles, and costs are important tasks. Some of these facilities are privately owned with a profit goal (see fig. 13.2.).

Figure 13.2. Melbourne Convention and Exhibition Centre (Source: MCEC)

Exhibit space pricing internationally is similar in nature to U.S. pricing structures. Options include either a daily flat-rate rental fee, or a per-net-square-meter fee, since exhibit space is advertised and sold according to the metric system, with additional charges for services such as electrical access, plumbing and lighting. U.S.-based convention centers may discount exhibition hall rental, but rarely advertise this option. In contrast, large convention and exhibition facilities in Asia actually promote a 20 to 40 percent discount of rental fees to exhibition organizers who lease exhibit space during low-demand periods or commit to a multiple-year contract. Refer to Chapter 6 – Budget Management for specific examples in calculating exhibition space rental fees.

A number of convention centers outside of North America own and produce the exhibitions occurring in that facility. Typically, exhibitions owned by convention centers promote the community’s primary industries and business interests. Also owning their own exhibitions ensures revenues and a higher occupancy rate.

Convention centers

TRADITIONAL EXHIBITION VENUES

Conference centers

Hotels with conference centers

Fairgrounds

Expo centers


196


Often the term trade fair is used to describe an exhibition with a strong emphasis on commerce and business-to-business selling.

Organizations like the International Association of Exhibitions and Events (IAEE), UFI – The Global Association of the Exhibitions Industry, International Congress and Convention Association (ICCA), The European Major Exhibition Centre Association (EMECA), and others have succeeded in creating industry standards and best practices for servicing exhibitions in the global marketplace. The adopted international standards of convention center management allow most facilities to be very similar in design and functionality, despite the location.

Conference CentersThe International Association of Conference Centers (IACC) defines conference centers as venues in “uniquely designed settings, providing superior services and support, through a dedicated, professional staff to give maximum results. A conference center may be a rustic mountain retreat or a luxurious resort by the sea. Many corporations own and operate centers for their own use as well as marketing to other non-company events. Religious and social organizations also own and operate conference centers that facilitate their primary mission.

Conference centers typically lack exhibition facilities or the amenities necessary to support exhibitions, (e.g., adequate electricity and plumbing). Appropriately sized loading docks and ramps to facilitate exhibitor move-in may be limited or non-existent. A conference center may include sleeping accommodations, or may simply offer meeting space. Generally, conference centers rent space and services for a flat fee: “According to the Quality Standards, every IACC-member conference center must offer and promote a package plan that includes conference rooms, guest rooms, three meals, continuous refreshment service, conference services and conference technology. Non-residential packages include conference rooms, lunch, continuous refreshment service, conference services and conference technology” (“Recommended Guidelines” par. 11).

Hotels with Conference CentersAs referenced in the preceding section, a conference center strives to provide unique settings with an experiential focus for their guests. Conference centers, with guest rooms or hotels that include conference center amenities, provide on-site-sleeping accommodations conveniently located near the conference meeting facility. These types of meeting facilities provide meeting planners with venues that can accommodate their event under one roof, minimizing an attendee’s movement from hotel room to meeting room to exhibition hall. Hotel conference centers principally focus on the corporate and convention meetings market.

Although the meeting and ballroom space in a hotel and conference center may be used as exhibition space, rarely does this type of facility have adequate exhibition hall space or the amenities necessary to successfully host a larger exhibition.

The meeting and ballroom space in a hotel conference center is typically rented on a daily basis. Hotel accommodations generally are required when using this type of event facility. Further, depending on seasonal demand, meeting and


197


ballroom rental may be reduced or waived, based upon room-night utilization and/or food and beverage revenues. Should meeting or ballroom space be used for exhibits, the daily rental fee likely will apply versus traditional exhibition hall or convention center pricing structures.

A hotel conference center will be most successful when the venue is matched with the physical needs and objectives of the event. The exhibition organizer should examine the goals and objectives of the event and compare those to the venue’s ability to help meet those goals and objectives. With this assessment, a hotel conference center is selected if that best addresses the exhibition’s needs.

Although conference centers lack exhibition facilities, they do have the capability to set up table-top exhibits. These table-top exhibits provide displays that fit in smaller spaces and do not require the amenities of the typical large exhibition with standard booth/stand spaces.

Fairgrounds In the U.S., many states and local municipalities own a fairground. Fairgrounds developed from county, regional, and state fairs emphasizing agricultural expositions and entertainment. Many of these annual events bring a huge boost to the local economy. Over time, these communities have built permanent facilities to house the annual exhibition.

Figure 13.3. Green Industry and Equipment Expo (Source: Steven Hacker, 2012)

A fairground exposition hall may be little more than a large barn-like structure designed to display livestock and heavy equipment. Other buildings at a fairground may include meeting rooms, banquet space and kitchens. Since fairgrounds rarely get used by the owning government agency more than once a year, some agencies rent the buildings located on the fairgrounds, primarily for consumer shows and local community events. Rental fees are typically assessed daily according to the size of the space occupied. On-site vehicle parking or public transportation is typically very accessible and affordable at fairgrounds, although the facility may lack nearby hotel accommodations.


198


Some non-U.S.-based exhibition venues refer to exhibitions as fairs, while in other locations the term fairground references a convention center. In contrast, some locations around the globe, fairgrounds refers to fun fairs, complete with rides, carnivals, and socialization opportunities, which are not conducive to an exhibition.

Figure 13.4. Messe Frankfurt (Source: Messe Frankfurt)

As the word fair obviously has different meanings in different cultures, the condition, appearance, and purpose of fairgrounds are quite varied. The selection process warrants considerable research and a site inspection of the venue to ensure it meets the needs of the exhibition.

Exhibition CentersThe term exhibition center is typically used to describe a facility that primarily hosts consumer shows or community events (see fig. 13.3.). An expo center may be either privately owned, or owned by a public or private partnership formed to spur economic development. Exhibition centers may have meeting space and hotel accommodations nearby, but may not offer the quality and services provided as standards in other convention centers (see fig. 13.4.). As with fairgrounds, exhibition centers should be accessible to public transportation or have ample parking and access to local vehicle transportation. Fees for the exhibit space are typically charged on a per-day basis.

ECONOMIC IMPACT

The value of the exhibition, from the facility’s point of view, typically is based on a concept called economic impact. The successful exhibition organizer knows the economic impact of the exhibition and will use the information to negotiate date availability and rental rates at the venue. This information is important to the venue when considering two potential exhibitions on the same date, to determine which show will generate the greater economic benefit to the community and the


199


venue; this information may change the decision in favor of the exhibition with a greater economic value rather than the size of the event. Additionally, the facility management will consider the economic impact of operating the facility over time (a year, a quarter or a month), which may influence policy decisions made by the facility’s ownership.

Economic impact for a single exhibition is best calculated by multiplying the number of hotel room nights (contracted by the event) times what attendees and exhibitors spend in the community each day they attend an exhibition. This is commonly referred to as the daily spend. Calculating the economic impact for a facility would be adding the numbers generated by each event held at that facility for the time specified.

Destinations International (DI) has a model for calculating exhibition economic impact. This model is used by most facilities and local convention/visitors bureaus and includes the key factors that contribute to an economic impact assessment. However, some additional items could contribute to an economic impact evaluation. These items include exhibitor spending for contractor services and hospitality events hosted, local employment and sales taxes. Consumer show producers often point to these factors as evidence of their value to the local economy, and as an argument for higher priority in obtaining prime dates at a venue. Additionally, the publicity generated by an event may be considered as part of the exhibition’s value. For instance, an event that results in a lot of positive attention by the media may not use a high number of hotel rooms, but the event could be considered a priority due to the media attention and public appeal.

OTHER REVENUE STREAMS FOR FACILITIES

Besides rental fees for use of the space, and additional fees for use of other infrastructure elements, such as electricity, facilities often have other revenue streams. As exhibition facilities and hotels seek additional revenue streams to improve or ensure profitability, many services traditionally handled by the official service contractor (OSC), are now provided by the facility. Some facilities act as labor dispatchers for contractors working within their exhibition halls, thus controlling who works inside their facilities. In addition, facilities may claim a portion of the revenue generated by the exhibition.

A few facilities within the U.S. require exclusive, in-house contracting relationships with potential exhibitors, either via their own company, or through an affiliated contractor. These venues may be able to offer potential exhibitors a contractor who knows the facility, and who may offer price breaks due to efficiencies gained through an in-house arrangement. However, many exhibition organizers prefer to work with OSCs and other contractors selected through a competitive bid process and who travel with the exhibition from city to city.

FOOD SERVICES

Food service is typically exclusive in all types of facilities, because the in-house company maintains a full time kitchen and staff within the facility. Catering


200


services, especially for large functions may, or may not, be an exclusive service of the in-house company. In addition, food service is generally a revenue generating enterprise.

Figure 13.5. Catering at Expo! Expo! IAEE’s Annual Meeting & Exhibition (Source: Oscar Einzig & Associates)

SERVICE PROVIDERS AT FACILITIES

Many facilities, such as large convention hotels or privately owned exhibition halls, have exclusive, preferred or recommended relationships with contractors, which may include a revenue-sharing component. When revenue sharing is part of the contract, the facility gains a specified percentage of the contractor’s revenue. As a result, the facility encourages clients who book the facility to select from the list of recommended or preferred contractors. When revenue sharing is not part of the provider contract, the status of exclusive, preferred, or recommended provider serves as a method for quality control. With these designations the facility can eliminate providers who do not have adequate resources to serve the facility’s customers in accordance with quality standards set by the facility.

An exclusive provider is a contractor appointed by a facility as the sole agent to provide specific services or products, which is the only provider of a given service that can operate in the facility. A preferred provider is given more consideration for securing the contract than other providers; generally, the facility has a positive relationship with this provider. Additionally, preferred providers may be the only one or one of a few providers in this category. Recommended providers are simply that – recommended by the facility when asked for a list of potential providers. Usually, the facility has a positive history with any recommended provider and the facility may list multiple providers in this category.


201


UNIQUE FACILITIES AND SERVICES

Beyond convention centers, conference centers, fairgrounds, and expo centers, the exhibition organizer has a variety of venues as options that could provide more than just space for exhibits. Selecting such a venue should be based upon the exhibition’s mission and purpose, as well as preferences of key stakeholders and the target audience. Putting an exhibition in an unusual venue can attract attendees, but an unsuitable venue might prove to be a detriment to the objectives set by exhibitors. Unique venues require careful consideration by the exhibition organizer.

Large Public VenuesSome large, public venues offer open and attractive space with special facilities or options within a facility, e.g., museum or sports complexes, universities and zoos. These venues provide a unique environment in which the venue serves as a background for a memorable event. This unique venue might provide an entertainment option: a sports demonstration by a resident team, instructional program by museum docents, or a tour of on-site art or artifacts of interest. A sports complex may provide sports coaching, or a zoo may provide a show and opportunity to interact with select animals.

Typically, these venues have facilities that are designed to accommodate large crowds with numerous and/or larger restrooms, sufficient parking space, and in-house security. Well-known public venues provide an opportunity to host an event that most individuals would be prohibited from booking and affirm priority status to a major event. A thoughtful pairing of a corporate event in a public venue can reinforce the host organization’s marketing message or corporate image.

Disadvantages exist to holding an exhibition in a public venue. One challenge is the venue may be open to the public during exhibition-related functions, where uninvited guests might appear. Depending on the environment or local ordinances, the venue’s management may limit activities that can take place at the site. For example, zoos may prohibit fireworks because the noise will scare the animals, and a museum might prohibit food due to the potential for damage to artifacts. Another consideration is that the space may be optimal for the public, as they stream in, but not optimal for a large group that congregates in one or two locations. Also, food service may be restrained by the condition or lack of on-site kitchens, thus requiring an outside catering contractor to work in less-than-ideal conditions.

Finally, unlike convention centers and hotels, public venues often do not provide the services an exhibition organizer requires. However, these venues may have exclusive or preferred contracts with third-party providers. Most likely, the hosting organization will be on its own to locate and identify the specialty providers it requires.

Private VenuesPrivate venues tend to be smaller in size, and as such, may not have the facilities and services that are available at large, public venues. Private venues include stand-alone facilities, banquet halls, private houses and ships. These venues provide a more intimate setting and may be suitable for smaller exhibitions and


202


events. Because of their size, private venues may have remedial facilities and services. The host organization may be left to finding and contracting with the specialty providers and, depending on location, those providers may be difficult to attract to the selected venue.

SUMMARY

Selecting the right facility to accommodate an exhibition may seem like a daunting task – it does not need to be. Success depends on understanding as much as possible about the demographics of the attendees and exhibitors. The first priority in the selection process is the response of attendees and exhibitors to the destination. A partnership should exist between the exhibition organizer, convention center, and the destination in order for a successful event to be created. Beyond the physical attributes of a facility, doing business in an environment with people who perform, and with whom exhibition organizers can have a good, working relationship, is key.

KEY WORDS

authority (in convention center ownership)

conference center

convention center

daily spend

economic impact

exclusive provider

exhibition center

exhibition economic impact

expo center

fair

fairground

hotel tax

preferred provider

private management company

purpose-built convention center

recommended provider

site inspection

trade fair

DISCUSSION QUESTIONS1. Some publicly owned venues have management agreements with third-party

vendors. What are the advantages and disadvantages of outsourcing the management of a venue?

2. How do the needs of an exhibition define the parameters for the selection of the exhibition venue?

3. How can the exhibition organizer use economic impact to negotiate competitive rates?

4. How can the facility management make a case for retention of the management company (to the facility’s owners) based on economic impact?


203

CHAPTER

14

“Perhaps, on a more serious inspection, something of its perplexity will disappear, some of its distinctive characters and deeper tendencies more clearly reveal themselves; whereby our own relations to it, our own true aims and endeavors in it, may also become clearer.” – Thomas Carlyle, 1795-1881, Scottish historian

SITE SELECTION

LEARNER OUTCOMES


1. Discuss the importance of both strategic and operational aspects of site selection

2. Integrate the value of stakeholder input, expectations, desired actions, and outcomes in the site-selection process

3. Identify members of the site-selection team

4. Evaluate the key aspects of the potential destination and site in terms of the initial site visit

5. Discuss the key components of conducting a site visit

6. Differentiate between the site-selection process and site inspections

Doreen Biela, CEMVice President, Engagement & Events

LightSpeed

Denise Capello, CEMHead of Business Development

RAI Amsterdam Convention Centre

Gia Carunchio, CEMExecutive Producer Vice President

FreemanXP

Mark HaleyPresident

Smart City Networks

Leslie Rauscher, CEMEvent Producer

George P. Johnson Experience Marketing

B. J. Reed, EdD, CMPProfessor Emeritus

University of Wisconsin-Platteville


204

CHAPTER 14 Site Selection

INTRODUCTION

Site selection is an integral step in delivering a successful exhibition. Decisions made by the exhibition organizer in the site-selection process create the foundation for the exhibition’s brand, the exhibitor’s loyalty, and a remarkable attendee experience. In the exhibition industry, site selection is often confused with site inspection, but, operationally, these are not the same activities. If pulling an exhibition together is like fitting the pieces of a large jigsaw puzzle, the exhibition organizer must envision what the completed puzzle looks like, and determine how each piece fits to make the puzzle complete. Starting with the request for proposal (RFP) and submitted proposals, the puzzle takes shape. The site selection visit will provide some of the puzzle pieces; subsequent site-inspection visits will provide other pieces. The process concludes with a successful exhibition and a profile of the facility for the post-event (exhibition) report (PER).

Site selection, simply defined, is the process of choosing a venue, both in terms of destination and a specific facility, for an event (“Events Industry Glossary”). The site-selection process is conducted to choose a specific site or multiple venues for a large exhibition. In the site-selection process, the exhibition organizer is not as concerned about where each function will be held, but that viable options exist at the facility, and the general layout is conducive to the exhibition’s prospective agenda. The focus at this time is on the venue’s suitability to the goals of the exhibition. The needs of the various stakeholders will be considered, but specific details will be arranged at a later time. For site selection purposes, a general sketch of the final scene is sufficient to begin the process.

Since many exhibitions are planned years in advance, with associations tending towards 10 years from site selection to the execution of the exhibition and corporations tending towards at least a year for planning, the exhibition organizer will need to visit the site again, after a decision has been made to contract with a specific venue. These are the site-inspection visits. For multi-year contracts, the exhibition organizer will visit several times, perhaps annually, until the event. Banquet event orders (BEOs) is a form most often used by a facility to provide details on food and beverage functions or room set-up, or the event specifications guide (ESG) shared between the exhibition organizer and interested stakeholders, is a comprehensive document outlining the complete requirements and instructions for an event.

The exhibition organizer can list all of the requirements from the RFP and rank them according to a variety of schemes. A simple system provides a scorecard for each facility to be viewed, and assignment of a rank for each feature (the higher the rank, the more important the feature). Then, a score is given to each property visited, on a simple scale of 1 (poor) to 10 (ideal). The rank is multiplied by the score, for a subtotal. These subtotals are added across all priorities listed for the property to determine the total score. Table 14.1. provides an example of how this system would work.


205

Site Selection CHAPTER 14

RANK ORDER FOR HOTEL SELECTION

Facility (Hotels)

Rank 5 Number of rooms

(Score)

Rank 4 Dining options

on-site (Score)

Rank 3 WiFi is free

(Score)

Rank 2 Distance from exhibition

hall in miles (Score)

Total score

Hotel A 300 (8) 40 No (0) 0 Yes (10) 30 1 mile (3) 6 76Hotel B 200 (6) 30 No (0) 0 Yes (5)

low capacity15 .5 mile (8) 16 61

Hotel C 350 (10) 50 Yes (10) 40 No (USD 15/day)

(5)

15 .5 mile (8) 16 121

Hotel D 100 (3) 15 Yes (5) 20 No (USD 5/day)

(2) low capacity

6 .1 mile (10) 20 61

Table 14.1. Rank Order for Hotel Selection

In the example provided by table 14.1., the exhibition organizer needs 300+ rooms for two nights. The attendees want breakfast and an evening meal available, and they insist on Wi-Fi access, preferably free. Many of the attendees will walk to the exhibition hall, but others will ride the provided shuttle. Which hotel(s) will be selected? Numerous questions need to be answered before a decision can be made. However, on the basis of this information, Hotel C has a good chance of being selected, partially on the basis of having adequate rooms, but also because dining options are available on-site and the walking distance is acceptable. The lack of free Wi-Fi may be a negotiable amenity. However, Hotels A and B could be used in combination. Hotel D has a relatively low score and may be skipped altogether. It is in proximity to the exhibition hall, but the sub-score did not exceed the other features (or lack of them). Such a system requires in-depth knowledge of the attendees, as well as the needs of the exhibition organizer.

When competition from properties is high for a specific exhibition, the exhibition organizer may need to utilize a number of relatively minor factors for differentiating properties. One organization may have preferred providers, while another will spread business around (giving preference to properties that have not been utilized before). One organization may insist that the property be a member of a specific national or international association, while another may insist on a specified number of references from previous customers. When competition is not particularly intense, the exhibition organizer still must take care to select the best property for the exhibition, considering the cost of investment and the potential outcomes in terms of objectives, goals, and brand quality. Therefore, the system for selecting an ideal property is rarely easy or simple.

When proposals are received, they may be perused by a site-selection team. This team may be comprised of staff or in the case of an association it may be the board of directors or a committee of the board. Usually, though, the site-


206


selection team is a small group of representatives who understand the needs of the exhibition and they will be, typically, the site-visit participants.

Site-Visit ParticipantsA site visit will ideally include representatives who understand the requirements and challenges of each stakeholder group. Participants on the site visit might include the exhibition planning team’s chair, and others who know the budget and financial policies, hotel accommodations and amenities, exhibition halls and their characteristics, as well as the official service contractor (OSC). The OSC may not be selected yet, so the exhibition planning team will select a representative who is familiar with the needs of exhibitors and perhaps be one of the potential exhibitors for this event. Since the OSC may have worked at the venue, that supplier may be able to provide valuable information based on experience.

If the exhibition organizer works with an exhibitor or attendee advisory committee, the chair of those groups should be invited to join the site-selection visit, as they will provide a perspective on the destination and facility that could prove valuable. However, the participants in the site visit must be weighed against the cost of getting all of the people to the site, particularly when the potential destination is in another country. Therefore, budget and time allocations will be taken into consideration when choosing the site-selection team.

While managing a larger group on a site visit can require extensive coordination of schedules and more, the benefits can outweigh the short-term challenges. Gathering detailed information is vital and utilizing tools such as exhibition floor plans to mark traffic flow, signage, and sponsorship opportunities will be necessary. Multiple perspectives can prove to be quite useful during the site visit.

Generally, when a team is participating and is going to multiple facilities at a destination, the site visit is planned through the help of the destination marketing organization (DMO) in the area. Of course, if a destination management company (DMC) or a professional congress organizer (PCO) is utilized, that company should be included in the site-visit and site-selection process.

PREPARING FOR THE SITE-SELECTION VISIT

Once proposals have been received, vetted by comparison to the RFP, and potential sites have been selected, the site-selection team is chosen (see fig. 14.1.). Then, a schedule is established with the sites for a site visit. The sites must be informed that this visit is to determine an appropriate site for the exhibition, in response to the proposal received. The site will then determine which staff members will provide the site’s hospitality and information during the visit. A thorough tour of the facility will be planned, based on the RFP.


207


Figure 14.1. Site-Selection Committee (Source: Greater Houston Convention and Visitors Bureau)

The site-selection committee will determine who will take notes at the various sites. Generally, two or more people take notes, so the notes can be compared. Some site-selection participants may prefer to write notes on paper or tablet, record notes on an MP3 player or tablet, while others will prefer to shoot photographs, using a camera, tablet, or phone. All of these devices should be provided for the site-selection committee by the exhibition organizer.

Before the visit occurs, the site-selection team will want to have a thorough history of the exhibition, should it be repeat business. Input from previous editions of the exhibition is useful in building the RFP, as well as preparing for the site-selection visit. If possible, the site-selection team may attend a current version of the exhibition, even if it is held at another destination and facility. This personal experience with the exhibition is excellent preparation for choosing a site. When previous exhibition records or a current version of the exhibition are not available, the site-selection participants might simply find a similar exhibition, preferably held at the potential site(s), to attend. Seeing the facility in action can be another valuable tool for selecting the best site for the exhibition/event.

Facilities will provide the names and contact information for previous customers. When seeing the site in action or examining historical records cannot be done, talking to customers of the facility can provide a perspective of strengths and weaknesses. However, the site-selection team should consider carefully the information provided by this source, as the perspective tends to be very biased in terms of how the previous exhibition was managed.

The site-selection team must also be aware of the tenets of inclusiveness for facilities. In the U.S., for instance, these tenets have been written into law through the Americans with Disabilities Act (ADA). To include all peoples, including those with disabilities, the ADA requires facilities to meet certain standards, such


208


as doors that can be triggered by an accessible button to open automatically and with a threshold that is easily overcome in a wheelchair. Doorways must be of adequate width to allow wheelchairs or to allow a person walking with a guide dog. The ADA might not be familiar to all international centers and should be explained when organizing an event outside of the U.S. While Europe permits dogs in many areas, such as public transportation, this is rarely true in the U.S., unless the dog is a registered and trained guide dog. In this case, the person with a disability should have documents to properly identify the dog. To host an inclusive exhibition, the organization should insist that site-selection team members prepare by reviewing the recommendations or laws that regulate accommodation for the attendees with disabilities. (In the U.S., review Title III of the American with Disabilities Act, Department of Justice)

In some cases, the exhibition may have risk management plans that suggest careful selection of the site. For instance, if a potential exhibitor has a product that is heavier than most – perhaps a dump truck manufacturer – the exhibition organizer needs to be both open with the facility and prepared well enough to check on the facility’s physical suitability for the exhibition. Will the truck fit in the door? Can the truck maneuver on the exhibit floor without harming the flooring surface? Is the floor load capacity capable of handling this heavy load without damage? Knowing the needs of the exhibitor, as well as pertinent details about the facility is an important function for the site-selection team.

The attendees may have needs that must be accommodated, as well. The media could attend the exhibition and that often requires an extensive information technology infrastructure. The bandwidth capacity of the Wi-Fi service may be an issue. Tablets and smartphones are making the need for computer stations unnecessary, but many exhibitions still provide such stations for attendees, especially when the event is a multi-day affair. According to Corbin Ball, author and meeting technology expert, “Meeting venues should provide detailed assistance to meeting planners to help them determine the Wi-Fi and Internet requirements. Many questions need to be asked, such as: Wireless Internet for how many people simultaneously? On what devices? For what apps? In what locations? How much bandwidth is needed?” The Events Industry Council has created an Industry Insights Bandwidth Estimator (“Industry Insights Initiative”) to help in calculating the amount of bandwidth needed for an event. It is important for organizers to understand how to manage Internet access to avoid lost efficiency, cost overruns and reduced effectiveness (“Events Industry Glossary”).

In preparation of the site-selection visit, each member of the site-selection team may have a different focus for the visit. One person might concentrate on the exhibition hall layout and access, while another focuses on catering options. A checklist may be a useful tool for keeping notes and reminding each member of the team what to look for during the visit. However, the ultimate decision will be made on the basis of the priorities set before the visit for each item on the checklists.


209


CONDUCTING A SITE VISIT

Site selection is a critical step in planning and delivering a successful exhibition, and can be a time-consuming process that requires pre-planning, teamwork, attention to details, and excellent note-taking strategy. Investment in the process can save time and money, as well as help to avoid potential problems during the exhibition. With care, the well-conducted site-selection process will increase potential for exhibition success. Visiting the destination and venue(s) being considered in person is critical to understanding what a participant’s experience will be like and choosing the best option in destination and venue(s) for meeting the exhibition participants’ and organization’s needs.

During the visit, the site-selection committee will document a lot of information. Some of this information is available on the Web, where many exhibition halls provide floor plans, sample exhibit layouts, and numerical data such as the hall dimensions. The experienced exhibition organizer knows, though, that photos are a “snapshot in time” and the personal visit is necessary to capture quality, ambiance, and a myriad of details that are not readily available online.

The information will be documented in numerous ways. A tablet, as well as other devices, will be useful to capture photos, voice memos and scans. The destination may have some materials in print form, as well. Generally, site-selection checklists are useful. While a customized checklist is probably necessary for the average exhibition, site-selection checklists are available from some facilities, DMOs, and on the Web. One useful document, created by Mike Lyon and titled “Site Inspection Handbook,” is available on Corbin Ball’s website. Putting the checklist in a database system would make the checklist more robust and useable for further study but using it as a word document is possible, as well. If the site-selection team is using tablets to record data, the software selected for the site-selection checklist must be compatible with a computer, as well as the tablet, which may limit some of the choices available.

Visiting the DestinationSince the site visit starts with reaching the destination, the site-selection team begins data collection from the moment they leave the office. If traveling to the destination requires air, coach, train, car, boat, or other conveyance, the site-selection team collects that data for future consideration of transportation providers. In some cases, the availability of transportation will be a highly ranked consideration for selecting the site.

If transportation is to be provided between hotels and exhibition venues, the shuttle route should be considered during the initial site visit. Details will be determined later, but selection of properties is often determined on a potential transportation route.

When proposals are reviewed prior to the site visit, the site team should note any questions they have about proposal contents. During the site-selection visit, these questions should be answered. Often the DMO representative can answer questions if the DMO was instrumental in developing the proposal for that destination. However, facility-specific questions should be saved for the facility’s representative during the site visit.


210


The DMO will be best at answering questions about customs and local laws that will affect the exhibition. They will provide information about currency exchange and should be able to answer questions about local suppliers, such as DMCs or PCOs. The DMO will be able to provide tourism information, suggestions for ancillary activities, and recommendations for pre- or post-event tours. The DMO should be available to answer numerous questions about their services, as well, that may enhance the marketing efforts for the exhibition.

Visiting a FacilityBeyond the destination’s strengths and weaknesses, the site-selection team will be focused on facility features, whether the facility is an exhibition hall, a hotel, or an outdoor venue. Some characteristics are shared in common across these general types of facilities, while many other features are dependent upon the facility itself.

Safety issues should be noted carefully during the site visit. Outdoor venues have unique safety issues that many facilities do not, including protection from inclement weather. However, all potential venues have some safety issues – fire, earthquake, negative events caused by humans, and many other potential problems. Simple first aid should be available at large facilities, as attendees can have a variety of minor problems on-site. How accessible more extensive medical care is, as well as other first responder options, should be checked on the initial site visit.

Safety issues start outdoors, where the site-selection team will inspect the facility’s access points, landscaping, and lighting (if the exhibition will open or close during dark hours of the day or night). Parking should be concentrated for easier control, and even with full parking areas, emergency vehicles should have full access to the facility.

The site-selection team should check that lamps are functional but making sure that is true during the event requires subsequent visits (at least a visit just before the event opens).

Figure 14.2. Loading Dock with Trucks (Source: Orange County Convention Center)


211


Since 9/11 in New York, security measures around the world have seen increased scrutiny. According to real estate expert Krisandra Guidry, “All security enhancements must meet local or state building codes in the U.S. However, security system design is not regulated, and no universal codes or standards apply to all public and private buildings.” On the site visit, some questions must be asked and answered about security measures, but the facility will not share all security measures with the exhibition organizer. Some security measures must remain private. During the conversation about security, the exhibition organizer should expand the security question to include other facilities that may be contracted, as well as the destination. This is particularly important in regard to first responder actions, evacuation possibilities, and reporting mandates by local authorities. The facility representative is a good place to start for this information, but may not be able to provide all of the information needed. The DMO will be a valuable partner in this part of the site visit.

While on the visit, the site-selection team should make record of any property damages or issues that should be fixed prior to the exhibition, or at least noted by the facility so the exhibition organizer is not inappropriately charged for those damages. Dated photos are quite useful when recording this kind of information.

While at any facility, the site-selection team should consider how attendees would move throughout the building. Will they use elevators, escalators, stairs and corridors? Are they well-lit and easy to find? Are they adequate to move the number of attendees anticipated during peak hours? Make note of these potential barriers to effective and efficient crowd movement.

Policies related to the facility’s operations may be available online, but during the site visit, these policies should be reviewed, clarified and verified. In some cases, policies can be negotiable. In other cases, the policy must be followed strictly to avoid penalties, hazards, and safety issues. During the site visit, the exhibition organizer should determine, with the facility representatives, which policies are required and which are flexible (see fig. 14.3.).


212


FACILITY FEATURES TO CHECK DURING SITE VISITS

The following items should be examined during the site selection visit at any type of facility used for an exhibition:

• All costs, billing procedures, payment procedures, taxes, and gratuities

• Tipping policies

• Local laws about taxes on gratuities and tipping (in the U.S.)

• Parking

• Shuttle route

• Location of alternative forms of transportation

• Dining options

• Green compliance

• Technology resources (e.g., Wi-Fi availability, bandwidth capacity, etc.)

• Safety inside and outside facility

• Emergency plan, including warning systems

• ADA compliance (a requirement in the U.S., but increasingly significant worldwide)

• Restrooms

• Insurance requirements

• Unanswered questions about the proposal

Figure 14.3. Facility Features to Check During Site Visits

Facilities rarely have adequate signage for large exhibitions or events. Welcome signs, informational banners, and directional locators are necessary to keep traffic flow at optimal levels and frustrations low. Attendees do not like being lost or wasting time. Noting some of the signage that will be necessary should occur during the initial visit, but most of the wayfinding details will be completed during subsequent visits.

Since many attendees, as well as exhibitors, rely on Internet connectivity, the site-selection team should determine the bandwidth load capacity at all facilities selected. The bandwidth load capacity is the maximum rate data can be transmitted. The technology should be tested for reliability, speed and accessibility. While the majority of attendees expect free Internet access, many facilities do not provide this amenity free of charge: “90 percent of organizers say yes while only 48 percent of facility managers replied favorably” to a survey question about their expectations for free Wi-Fi access (Ball).

Some additional questions exhibition organizers should ask the venue regarding their technology capabilities are:

• Is there a DAS or cellular antennae system that supports all major cellular carriers?


213


• Are there independent redundant circuits to the Internet?

• Are the circuits able to “burst” as needed for unexpected heavy bandwidth usage?

• Is there a 24-hour, seven days a week Network Operations Center that monitors the network?

• Does the facility have adequate on-site staff to support the event and respond quickly?

• What is the wireless capability of the facility for common spaces in addition to meeting rooms and exhibit halls?

• Does the facility have adequate bandwidth to support the event?

Inquire on union requirements when making a site visit to facilities, including when the union contracts are ending, which departments are in the unions, and if the property foresees any challenges affecting the exhibition. The DMO can provide some union information, but the site representative should be consulted, as well. The site-selection visit is not the time for negotiation, but it is a preliminary meeting for the negotiators. In other words, the site-selection team should determine what items in the proposal are negotiable, so they can be well prepared for the next step in the process – negotiating terms. Figure 14.3 provides a quick list of items to be examined during a site-selection visit to any facility.

Visiting the HotelDuring the RFP process, the site-selection team should have selected hotels to consider based on the exhibition organization’s policies regarding accommodations. For example, does the organization prefer primary, five-star hotels, or secondary properties; does the organization have a long-standing relationship with a specific hotel chain or ownership group; does the organization have policies regarding complimentary rooms, per-diem rates, or other price-related features? All of these details must be researched thoroughly by the team prior to the visit and they must review the proposals carefully to determine if the proposal addresses these policies adequately. If not, questions must be answered during the visit.

The site-selection team should make a personal visit to the front desk, tour the various types of rooms, determine how many of each type will be available to the group, and visit all public areas in the hotel, including any business areas that may be available for the exhibition organizer (if needed). One or two members of the site-selection team may want to arrive earlier than the scheduled site inspection appointment to observe and experience the property as a regular guest without the VIP treatment. Ask to see every room type that could be used by the group’s attendees to ensure the rooms are acceptable and in good repair.

The quality of the water is a consideration in many locations, as well as the type and quality of electrical service, restrooms (in and out of individual rooms), and dining services. The concierge area should be visited to determine the extent of services provided there; the DMO may be able to help with additional services for that destination if the hotel’s offerings are not up to the organization’s standards. Asking the hotel for a sample contract would be appropriate during the initial visit.


214


Simply asking about these services is not adequate. They should be tested. Is the dining of adequate quality? Is room service at a favorable cost and is delivery prompt? Is the Wi-Fi system slow or reasonably reliable? Is the housekeeping service of acceptable quality? What is the standard for space maintenance? All of these qualifications can be determined best in person and through use of the facility. However, the site-selection team may be challenged by time and cost considerations. Figure 14.4. provides a quick list for hotel site visits by the site-selection team.

QUICK LIST FOR HOTEL SITE VISITS

• Number of rooms

• Types of rooms

• Price

• Policy on complimentary rooms

• Amenities

• Fitness options

• Location near shopping, dining, tourism locations, etc.

• Location in relation to exhibition hall

• Availability of meeting rooms, if needed

• Availability of hospitality rooms, if needed

• Ambiance

• Quality of furnishings

• Maintenance standards

• Quality of staff performance

Figure 14.4. Quick List for Hotel Site Visits

Visiting the Exhibition HallFor the average exhibition, the hall is the primary focus of the site-selection process. The convention services manager (CSM), frequently known as an event manager (EM), is the convention center professional responsible for the exhibition’s operations. Request that the CSM, who will actually be assigned to the group, accompany the site-selection team on a portion of the site inspection, particularly when reviewing the function spaces. This person should not only answer questions and point out the strengths of the hall, the CSM should be able to suggest details the exhibition organizer needs to consider. The site-selection team should be prepared to answer questions from the CSM to facilitate communication and a clear understanding of the organizer’s needs and goals.

When the exhibition hall has competition, the site visit becomes even more important. Since each exhibition has unique preferences and requirements, a single site-inspection checklist is impractical. However, most exhibition halls have


215


some common features. To begin a visit to the potential exhibition site, the site-selection team should be prepared to review details provided in the RFP.

What is the estimated exhibition floor space needed, based on a few different floor plan configurations? In this regard, the OSC can be instrumental in determining the capabilities of the space. Knowing whether the venue has capacity to expand exhibit space is helpful in planning, especially when exhibit sales are higher than anticipated. Does the exhibition have an education component? If so, how many meeting rooms are needed? Many exhibition organizers and their exhibitors conduct education on the exhibition floor. The exhibition organizer needs to consider this when planning the configuration of the space. If the education option will be incorporated into the show floor, with other booths/stands surrounding the space, the OSC or exhibition organizer will need to consider how sound travels in the exhibition hall, how that sound might be “contained” to a location, and the audiovisual requirements for the education session (if it can be accommodated in this space).

Staging may be necessary, and the amount and type of seating must be considered in the floor plan, as well. While some of these details will be determined at a later date, the initial site visit should indicate if the potential site is suitable to such demands.

The site-selection team must know whether the exhibition floor will be set with pipe and drape or three-sided hard-wall booths/stands, as they tend to be in countries outside of the U.S. and Canada. This may make a difference in the space needed. The facility representative or OSC can answer these questions. Ceiling heights need to be considered, especially when exhibits are multi-level or signs will be hung from the ceiling. In some cases, the space may have very high ceilings and to reduce an “empty building” look, decorations may be hung. This is an added detail and cost, and it should be noted during the site visit.

If the exhibition hall has columns, the amount of usable space will be impacted. The floor plan must accommodate columns, so the exhibition organizer should make careful note of the size and location of these structures. Signage might be needed, as the columns could inhibit viewing certain areas of the hall. For example, if the hall has columns, the exhibition organizer may consider hanging drape to cover them. The OSC will work with the venue to ensure that any fire alarms or signals are not blocked.

The exhibition organizer should know the maximum floor load capacity of the exhibition floor and discuss concerns with the OSC and venue representative. Floor load capacity is the amount of weight a floor can safely withstand. Most modern floor-load factors are 300 pounds per square foot or higher, 136 kilograms per square meter. Upper floors are usually built to handle a minimum dead weight of no greater than 50 pounds per square foot or 22.7 kilograms per square meter. Floor composition is usually reinforced concrete, but may be covered with other materials such as carpet, especially on the upper floors. If the event being planned has heavy machinery or other high dead-weight components, the exhibition organizer and facility manager should perform a floor-load analysis before determining the layout.


216


During the initial site visit, the site-selection team should determine if the size and number of loading docks, freight elevators, and their locations fit the needs of the exhibition. For instance, a heavy equipment exhibition will require a large number of loading docks and the entrance doors must be large enough to accommodate the equipment size.

The marshaling yard is where the trucks that are moving exhibit freight will be staged to deliver freight to the venue (see fig. 14.5.). Locating the marshaling area should be done during this visit, and the site-selection team should determine how trucks gain access to the loading docks, as well as how they will be prioritized. The OSC or facility representative can provide this information.

Figure 14.5. Marshaling Yard Security Checkpoint (Source: Orange County Convention Center)

Many exhibitors will have expensive products to be demonstrated in their booth/stand. The exhibition organizer should consider what steps are necessary to secure the exhibition floor and these products. At the very least, all exterior doors should be lockable and entrance to the exhibition hall should require an approved badge for identification. In some situations, very high security measures are necessary and the site-selection team should be well versed in appropriate measures for facility security at this level (see fig. 14.5). If the facility cannot provide a high level of security measures, the exhibition organizer might consider hiring a contractor that can provide these measures at that facility. The CSM may have a list of preferred security providers.

The CSM and the OSC can provide information on the fire exits and what the requirements are for ensuring they are not blocked by exhibits or by other elements. Utilities and their location on the exhibition floor are important and should be discussed during the site visit. The site-selection team might determine whether the exhibition hall has water/gas service lines and hookups, including access to compressed air or flexible water service and drains and their locations. Another option to consider is the maximum electrical power available to the hall, and whether the site can accommodate special electrical/lighting hookups for entertainment stages in the exhibition hall. Most centers have reading-level


217


lighting in the 70-110 foot candles range, which is a measure of light intensity. The site-selection team may need to find out whether special fixtures, coloration, or controls will be necessary. These details may not be apparent during the site-selection process, but should come up prior to or during subsequent visits to the facility. Figure 14.6. offers a quick list of elements to examine during the site visit to a prospective exhibition hall venue.

Visiting Outdoor SpacesSome exhibitions occur outdoors or an exhibition may have a combination of spaces, utilizing an exhibition hall and an outdoor arena. Agricultural expositions commonly use a combination approach for hundreds, if not thousands, of exhibitors and many more attendees over a multi-day event. These expositions also offer education indoors and outdoors, as well as dining options in both locations.

Figure 14.6. Quick List for Exhibition Hall Site Visits

QUICK LIST FOR EXHIBITION HALL SITE VISITS

• Net square footage

• Measurement of doors (if a double door has a center bar, determine if it can be removed), access points, move-in and move-out points

• Exclusive vs. preferred suppliers

• Location in relation to hotel(s), attractions, shopping, etc.

• Audio visual

• Lighting

• Electricity access and capacity

• Other utilities

• Floor load-bearing capacity

• Wi-Fi accessibility and load capacity

• Charges for services to attendees

• Catering/food availability – sampling and corkage fees

• Availability of services, such as packing and shipping

• Garbage removal and pickup

• Fire regulations

Weather can be a concern for these expositions, but when the event offers demonstrations of new farm equipment, planting or harvesting techniques, and animals for show or purchasing, the event must utilize outdoor facilities, and weather is just one of the potential hazards. The exhibition organizer will visit the site for the expected reasons, but also to inspect a variety of unique features. Traffic flow, including automobile, mass transit, and walking, will be a key component of the site-visit checklist.


218


Locations for tents will be considered, where exhibitors can have temporary protection from rain and sun. Access to camping may be necessary for attendees and exhibitors, which requires electrical hookups, dumping stations for sewage and waste water, water access and showers. Fire regulations may be an important consideration with campers. If camping is popular with attendees, and the campers utilize recreational vehicles (RV), the campsites should be accessible by road, the camp site should be as level as possible, and access to service stations that specialize in RV repairs will be useful. Additionally, campers and exposition attendees will need access to portable relief stations (often called porta-potties in the U.S.).

The outdoor area may have unique requirements, as well, of the exhibition organizer. For instance, local government permits may be required, a waiver of liability may be necessary, and the landowner may require proof of insurance. Alcohol and food may be allowed or tightly controlled.

In some cases, the outdoor exhibition may allow campers to bring pets, so rules regarding pets may apply, such as a need for temporary pens, leashes, proof of ownership, veterinary proof of vaccinations, etc. Having an on-site veterinarian or one located nearby may be prudent. All of these arrangements can be investigated during the site visit.

When agricultural exhibitions are held outdoors, the site may have policies related to human or animal disease prevention or containment. The threat of diseases spread by humans to animals or vice versa may require special precautions and warnings. These policies can be determined during the site-selection process, but during subsequent visits and communication, the exhibition organizer should check on any recent changes to these policies. Figure 14.7. provides a quick list for site visits to outdoor spaces.


219


QUICK LIST FOR OUTDOOR SPACES SITE VISITS

• Unencumbered access to the site (e.g., road conditions)

• Policies related to disease (human or animal) prevention or containment

• Fire regulations and other safety issues

• Permits

• Camping options and numbers allowed

• Shelter from inclement weather

• Pets; access to vet care

• Access to food, if necessary

• Access to first aid

• Garbage removal and pickup

• Access to potable water, electricity, propane gas, firewood, and other “utilities”

• Portable relief stations

• Emergency management plan and warning systems

• Identity of insects or other pests that may be prevalent in the area (e.g., poisonous snakes or wild bears)

Figure 14.7. Quick List for Outdoor Spaces Site Visits

SUBSEQUENT VISITS FOR SITE INSPECTION

Subsequent site visits (after the site has been selected) may occur annually or monthly, as the event date gets closer. The initial site visit is to select appropriate venues, while subsequent visits are to conduct follow-up communication about questions raised during the initial visit, to fill in details, and to confirm arrangements as needed.

The Event Services Guide (ESG) provided by the Event Industry Council’s Industry Insights initiative is an excellent tool for determining what kind of details the exhibition organizer will need to verify with a facility. The lengthy ESG template will need customization to fit the needs of the average exhibition, but the document is thorough. Utilizing the ESG will guide the exhibition organizer on subsequent visits, as details that are known are communicated and details that are yet to be determined will be missing on the ESG.

If issues that were documented by photo or other means have been improved or altered substantially since the initial visit, the new information needs to be recorded and dated. The exhibition organizer should examine required improvements, such as safety-related improvements or ADA requirements. Since the initial visit, the exhibition organizer has probably entered into a contract with the facility. During subsequent visits, the exhibition organizer should check for contract compliance and potential addenda to the contract, if necessary.


220


Outdoor sites have unique requirements for subsequent visits, since land rarely sits idle, especially without human stewardship. The exhibition organizer will need to check the condition of the land, access points and vegetation. The exhibition organizer may need to arrange for mowing and other maintenance tasks. Figure 14.8 provides a quick list for site inspection visits to exhibition venues.

QUICK LIST FOR SUBSEQUENT VISITS TO EXHIBITION SITES

• Remodeling, refurbishing, changing facilities

• New staff contacts

• New or altered amenities

• New or altered policies and/or procedures

• More details (the first visit will leave unanswered questions)

• Placement of each function scheduled

• Details for each function scheduled (A/V, food and beverage, etc.)

• Traffic flow based on function placement and final floor plan

• Registration area(s)

• Coat-check area(s)

• Security area(s) and procedures

• Working, networking, and resting area(s)

• Attention to safety concerns, etc. that have been identified since first visit

Figure 14.8. Quick List for Subsequent Visits to Exhibition Sites

During site visits, the exhibition organizer has an ideal opportunity to build positive interpersonal relations with the facility’s representatives. With a strong partnership attitude and excellent communication skills, the exhibition organizer can form a relationship that is mutually beneficial and may even expedite the RFP and proposal-review process. Strong partnerships also make site selection more efficient. While building these relationships, the exhibition organizer can ask these questions and the answers should come up during site visits, so the discussion is in person:

• Can the exhibition organizer offer direction on maintenance issues at the facility?

• Can the exhibition organizer suggest facility improvements (e.g., landscaping at the outdoor site or the addition of more electrical capacity for the technology-intense exhibition)?

• What can the exhibition organizer do for the facility (e.g., promote the destination, serve as a reference to potential business, etc.)?

• What can the facility do for the exhibition organizer (e.g., recommend suppliers, recommend décor or decorations for branding purposes)?

• Can the facility make recommendations to enhance the exhibition experience (e.g., add AV options that increase brand awareness, as well as printed signs)?


221


SUMMARY

The evaluation process for site selection is quite complex and subsequent visits may be necessary to create a positive and memorable experience at the exhibition site. The process requires significant investment of time and knowledge to construct a useful system, beginning with drafting a thorough RFP, receiving well-constructed and detailed proposals, analyzing those proposals, and preparing for the site visit. Then, the exhibition organizer will collect a lot of data, with checklists, tablets, phones, and cameras, to develop a clear profile of potential properties. Based on the evaluation system employed, the site-selection team will make a decision that should result in a well-planned and executed exhibition that meets goals and objectives of the organization. By being prepared, relying on a well-constructed process for decision making, and documenting the right information, the site-selection team can examine the options and choose the best destination and facility for a successful exhibition.

KEY WORDS

amenity

Americans with Disabilities Act (ADA)

bandwidth load capacity

banquet event orders (BEOs)

convention services manager (CSM)

destination



event manager (EM)

event specifications guide (ESG)

floor load capacity

marshaling yard

official services contractor (OSC)

per-diem rate




site inspection

site selection

site-selection process

site-selection team

venue

DISCUSSION QUESTIONS1. Discuss the importance of the site-selection process.

2. The perspectives of site visits are different for not-for-profit associations and corporations. Discuss these different perspectives.

3. Discuss ways to make the exhibition floor a more engaging environment.

4. What are the unique attributes of the outdoor location for an exhibition or part of an exhibition? What are the challenges associated with such a venue?

5. Who should be included on site visits and why? If the budget is severely restricted, who are the critical members of the site-visit team?


223

CHAPTER

15

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.” – Seuss 1

DEVELOPING FLOOR PLANS

Julia W. Smith, CEM, CTA Senior Vice President of National Sales

GES

LEARNER OUTCOMES


1. Develop a floor plan to meet the needs of the audience and exhibitors.

2. Create a floor plan that incorporates the unique features of a venue or facility.

3. Evaluate technology options and tools to maximize sales and sponsorships.

4. Implement fire and safety codes and local regulations into the plan.

5. Measure the success of a floor plan.


224

CHAPTER 15 Developing Floor Plans

INTRODUCTION

A well-designed floor plan or layout is critical to the success of an exhibition or event. The floor plan is a schematic drawing of the exhibit hall or event venue that includes the booths/stands available for rent to the exhibitors, facility physical features, official areas such as registration, and other feature areas that become the exhibition marketplace.

In a rapidly changing business environment, a floor plan must meet the logistical needs of exhibitors and sponsors and the shopping and learning habits of attendees, with sufficient flexibility to adjust for growth or consolidation.

Not all nations use a common system of measurement. In the U.S., the system of measurement is called the U.S. customary or standard system, and length is measured in inches, feet, yards and miles. This system was based on the British Imperial system, developed from the earlier English System of Measurement Units, which was used in Great Britain and the countries of the British Empire when the U.S. was colonized.

The metric system replaced the British Imperial system in the British Commonwealth by the late 20th century, and is commonly used in many countries around the globe. For example, the Chinese market system is still used for some units, but the country has adopted the metric system for others, such as measuring distance. India converted to the metric system in the 1950s-60s. Canada adopted the metric system for most measurements in the 1970s, and Australia also began the process of conversion from the British Imperial system to the metric system in the 1970s.

Most of the hard wall or shell scheme systems used around the world are constructed in metric units, including those used in the U.S. While a raw booth space in the U. S. might be measured in feet, for example, 10ft x 10ft, the booth constructed within the space might actually be 3 meters x 3 meters.

The metric system is based on units of ten (10 mm equals one centimeter; 100 centimeters equals one meter and 1,000 meters is a kilometer).

USE THE FOLLOWING MATHEMATICAL CALCULATION TO CONVERT FROM ONE SYSTEM TO THE OTHER:

To convert from feet (British/Imperial) to Meters (Metric):

• Divide the number of feet by 3.2808

To convert from Meters (Metric) to feet (British/Imperial)

• Multiply the number of meters by 3.2808

Figure 15.1. Mathematical Formula for Conversions

EDITOR’S NOTE: In 1958 the United States

and countries of the

Commonwealth of Nations

(Canada, New Zealand

and Australia) defined the

length of the international

foot to be exactly 0.3048

meters (U.S. Department

of Commerce). For the

purpose of this chapter,

and recognizing other

countries use the metric

system in calculating space

for exhibitions, fig. 15.1

provides the conversion

of foot (ft) to meters (m).

For example, a 10ft x 10ft

is equal to a 3m x 3m

(approximately) booth/

stand. The corresponding

conversions for each

measurement within the

text of this chapter has

been omitted to make

reading easier.


225

Developing Floor Plans CHAPTER 15

MAKING A FLOOR PLAN WORK

A successful floor plan design considers the needs of all key stakeholders and the unique features of the venue. From initial design to the event production, the floor plan provides a road map for connecting exhibitors, sponsors, and attendees in a temporary marketplace. Determining whether a floor plan meets the exhibition organizer’s goals may require surveys, various types of measurement, traffic studies (evaluation of how attendees move throughout the exhibit hall), and other analyses.

Know the Industry, Attendees, and Exhibitors A successful event reflects a current understanding of the industry, the attendee, exhibitors, sponsors and other users of the space, such as presenters. For instance, the exhibition organizer needs to know how exhibitors showcase their products and services, or how much time attendees have to spend on the exhibition floor, based on time spent at an educational program, outside activities, or other event functions. An exhibition is created to meet the needs of particular industries, industry segments or special interest groups.

An event’s focus and format can become obsolete quickly, particularly in technology or another rapidly changing field, or when trends of sufficient magnitude affect the behavior of exhibitors or attendees. Understanding the industry, the changes that occur in that industry, and trends that affect exhibitors and/or attendees, contributes to a flexible approach to building the event’s format and the exhibition’s floor plan. Industry changes impacting an exhibition’s floor plan include industry consolidation (e.g., a merger of two companies can create a significant hole in an existing floor plan), new developments (e.g., invention of a surgical procedure or equipment can result in a pharmaceutical company needing expanded space), or market saturation and penetration.

Attendance at exhibitions can be impacted by local and world events. Very low interest rates and local disasters impact building materials exhibitions, and exhibitions servicing the home-sales market. When there is a national or global economic downturn, corporate travel budgets may be trimmed. Changing technologies can shorten the life-cycles of events based on those technologies.

Medical and scientific exhibitions have unique requirements. Professionals like doctors, nurses, and scientists often attend an aggressive schedule of educational sessions for recertification, so adding laboratory spaces, poster sessions (see fig. 15.2.), and other educational opportunities to the exhibition floor is a potential attraction

Industry consolidation or growth

INDUSTRY TRENDS IMPACTING

FLOOR PLANS

New developments

Market saturation and penetration


226


Figure 15.2. Poster Session (Source: American College of Genetics and Gnomics)

The mix of exhibitors also impacts the overall design of an exhibition. A horizontal exhibition is large in scope and includes many aspects of one industry, while a vertical exhibition limits participation to a targeted segment of the industry. A large horizontal exhibition may need to be sold by designated product zones (an area focusing on selected products or services) to minimize attendee frustration while searching through miles of aisles for comparison shopping.

As training and learning methodologies change, exhibitions are incorporating learning areas into the show floor, both to offer expanded programs, but also to enhance show traffic. There also are many types of hybrid events; for example, exhibitions that add a consumer element to a traditional trade event.

Demographics drive changes in the design of exhibitions, such as the incorporation of social media activities, gamification, attendee matchmaking, and appointment-driven, or hosted-buyer audiences.

An in-depth understanding of all stakeholders, and the industries or interests they represent, will assist in the design of a flexible, contemporary, and user-friendly floor plan.

Know the Venue/FacilityAn important step in developing a successful floor plan is to take part in a site inspection. Knowing the facility or venue and viewing the facility features first-hand is vital to developing a workable layout. A venue is chosen for many different reasons, including a preference for geographic rotation, cost, audience appeal, local population and potential for attendance, available space, available lodging, and transportation options. Physical features that typically become apparent during the site inspection might also influence a positive decision for site selection.


227


Identifying unique facility features, which may impact the event either positively or negatively, is important to the successful exhibition. A facility that draws quality attendees may conversely pose logistical challenges for the exhibition. The floor plan can be designed or altered to capitalize on the best features and minimize challenges. Better visual understanding can result from walking the space – while empty and occupied – and developing a floor plan that suits the space and meets the needs of exhibitors and attendees.

The official service contractor (OSC) is an excellent source of information and assistance with the design of the floor plan, and provides support through the revision process, resulting in a final, approved plan. Ideally, the OSC has experience with the facility and brings that knowledge to the planning sessions. The facility event coordinator and other support contractors provide information based on their experiences in the exhibit space as well. The exhibition organizer can contact exhibition organizers of other events that have been held recently at this venue to gain more advice about utilizing the facility advantageously.

The OSC can also provide an initial maximum floor plan (a standard plan for the exhibit space that demonstrates the maximum number of booths/stands available for sale, also referred to as a maxed out floor plan). Most exhibition organizers start the floor plan design for a new location using a maxed out plan, or adapting the configurations from a recent exhibition’s floor plan to the new space.

If an exhibition organizer is unable to visit a facility prior to producing an exhibition due to budget or timing issues, that organizer should use other resources to gather valuable logistical data.

Focus on Aesthetic and Visual AppealAesthetic and visual appeal are more than graphics and décor. A floor plan should make attendees feel comfortable while they are moving throughout the exhibition, without having to dodge obstacles or take circuitous routes around large exhibits or other focal points. Designing a floor plan often involves working with a one-dimensional drawing on a desk or screen; designing functional and attractive flow requires envisioning how the areas will be viewed when the attendee is walking around.Consider the following components in the design:

• Entrance(s) should invite attendees to explore the marketplace

• Traffic should flow logically to all spaces; and

• Sponsorship elements and décor should complement rather than impede traffic flow

Strategic placement of exhibitors will enhance the exhibition’s visual appeal. The placement of various sizes and types of displays must be carefully controlled, even with a priority placement program. Attendees may be met with a visual barrier when entering the hall if the largest exhibitors are assigned front line spaces. One solution is to design a setback (creating open space through a wider aisle) in the front of the hall. However, this may not be the most efficient use of space.

Geographic rotation

VENUE SELECTION CRITERIA

Cost

Local base of potential attendees

Audience interest

Available exhibit and meeting space

Hotel room availability

Modes of available transportation

Unique physical characteristics

at facility


228


ELEMENTS OF A SUCCESSFUL FLOOR PLAN

The successful floor plan is built on a number of careful steps that must be executed well before the exhibition’s opening. The exhibition organizer reviews existing (historical) plans as one of the first steps in developing a new one. As the plan comes together, the flow of traffic will be visualized, to make that flow effective and efficient, meeting the needs of the attendees and exhibitors. The number, size, and shape of exhibits must be considered and decisions made here will influence how the exhibit space is marketed. The floor plan will also dictate a numbering system for exhibit space, which is a critical factor for large exhibitions. The size, shape, and placement of aisles must be planned, as these decisions will impact traffic flow, exhibit placement, and the number of available exhibit spaces. If the program calls for unique features and/or presentation areas, these must be incorporated as the floor plan is developed. Entrances and exits must be carefully considered and clearly marked on the floor plan based on the placement of aisles and the direction of traffic flow. Other critical elements include safety issues, for all participants and security for exhibitors and the contents of exhibits, as well as other areas on the floor.

Review of Existing PlansThe exhibition organizer could become complacent about an existing plan, particularly if it seems to be working, or if the event/exhibition stays in the same facility year after year. A plan may no longer meet the needs of changing audiences or emerging industry trends that affect exhibitors. An industry undergoing change through consolidations or new product rollouts needs a fresh approach. A number of methods exist to determine the viability of an existing plan:

Walk the Show Floor and Public Areas. Take the time to walk the exhibition floor once the exhibition is open. Make notes of areas with slow traffic, crowded areas, and locations with line-of-sight challenges, if your exhibition rules follow the traditional IAEE Guidelines for Display Rules and Regulations. Note that the line-of-sight rule does not apply to exhibitions that sell space by cubic content. Cubic content is a unit of measurement allowing display materials and products to occupy 100 percent of the exhibit space purchased, regardless of sight lines, up to a height established by the exhibition’s rules.

Communicate frequently with exhibitors to obtain feedback. Look at how the exhibitors use their space and the impact on traffic patterns. Analyze the effectiveness of entrance treatments, registration, signage, and other areas that drive or distract traffic patterns. This information is recorded for review when the next exhibition is in planning stages and a floor plan is developed.

Get an Overhead View. Many facilities have the ability to view traffic patterns from above through office windows or on a catwalk. Strategically placed cameras may also offer an overhead view of the exhibition floor. Observe traffic flow from the attendees’ entrance to departure. Questions to ask during these viewings include:

• How do attendees turn or move forward when they enter the hall?

• Do they stop in the booths/stands up front or move towards other features?


229


• Are they heading straight to food-service areas and then proceed to walk the floor or do they proceed along an aisle and return to food service later in the show?

• Are areas of the floor avoided by attendees? What causes these unpopular areas?

• Are visual obstructions present?

• Does directional signage guide the attendee? What improvements are needed to make signage more effective?

Survey Exhibitors and Attendees. Gather information about the types of products or services attendees are seeking, as well as information about whether they are there to research or to purchase, the length of stay, and other goals. Query exhibitors about their exhibition successes and challenges, future plans, competition, and the exhibitor’s ROI objectives and evaluations.

Conduct a SWOT Analysis. The SWOT acronym stands for strengths, weaknesses, opportunities, and threats. This easily completed process helps to guide the exhibition organizer when taking a fresh look at the total exhibition layout.

Use Available Technologies. There are a number of developing technologies that can help a show organizer capture data about traffic patterns, attendee engagement, and the success of presentation areas, show management booths, lounges and other areas. These include RFID, beacons, video capture and analysis, and other technologies that capture attendee movement. Data capture and subsequent analysis can justify variable pricing of exhibit space and sponsorship placement, among other layout decisions.

Traffic Flow PatternsTraffic flow refers to the manner in which people move from place to place within a defined area.

Traffic flow is influenced by:

• Number, type and size of exhibits

• Exhibit layouts and activity within the booths

• Number of attendees

• Exhibit hours and competing events

• Attendee shopping habits

• Number and width of main and cross aisles

• Activity within exhibit spaces that stops, attracts or diverts traffic, i.e., demonstrations, learning areas, activations, or features

• Location of food service areas

• Placement and number of entrances and exits (access and egress points)

• Location of registration, meeting rooms, and other key areas; and

• Directional signs, barricades, product locators, booth numbers, and aisle signs

Strengths

SWOT ANALYSIS

Weaknesses

Opportunities

Threats


230


Number, Size, and Shape of Exhibit SpacesFundamental to floor plan development is the gross square feet/meters (gsf/gsm) available in the selected exhibit space and the net square feet/meters (nsf/nsm) needed for saleable booths/stands (after aisles and other features and space uses are subtracted from the gross square feet/meters).

U.S. Model Most exhibition floor plans in the United States are based on a 10ft x 10ft booth (3 meter) grid. A typical floor plan in a convention center would have aisles of 10ft x 10ft booths (3 meter) stands on either side of a 10ft (3 meter) aisle. One reason for the 10ft x 10ft (3 x 3 meter) grid is the placement of utility ports. Utilities accessed through floor ports are often placed on 30ft/9 meter centers, which means utility ports would be located on the backwall line, rather than in the center of a booth/stand or aisle, assuming that the aisle is also 10 ft/3 meter wide. Ideally, columns are also placed within the grid or exhibition hall footprint.

Exhibit booths/stands in a U.S.-based exhibition traditionally are laid out as standard (or linear) booths/stands, peninsula, and island (or bulk) spaces (see fig. 15.3.).

Figure 15.3. Example of a Peninsula Booth/Stand

Booths/stands can also be based on a grid that is 8ft/2 meter-deep and 10ft/3 meter wide. This configuration is sometimes used in smaller areas such as hotel ballrooms to maximize the space, particularly if utility placement is not an issue, and aisles can be approved at 8ft or 9ft. However, the 10ft width is standard to accommodate pre-fabricated booth/stand structures. Contractor equipment is also fabricated to work within these standard booth/stand grids.

Booths/stands laid out in 10ft x 10ft configurations are considered standard or linear booths/stands. Linear booths/stands have an aisle on one side (the front of the booth/stand), with the exception of corner booths/stands, which have aisles on two sides. Note that 8ft x 10ft booths/stands are sometimes used in smaller


231


spaces or to gain additional booths/stands – 8ft is the depth of the booths/stands, maintaining the 10ft width to accommodate existing booth/stand properties.

Selling and configuring a minimum of four spaces together for one exhibit, with aisles on all four sides, make island booths/stands. Islands can have one or more levels of display, depending upon the exhibition rules and the building regulations for two-story, or multi-storied, booths/stands. If island booths/stands are created within a linear layout (such as in a 20ft x 20ft or 20ft x 30ft), the amount of saleable space decreases, as more cross aisles are created. However, if island booths/stands are created by selling across existing aisles (conforming to fire regulations for the building), they can actually add to the amount of saleable space.

Peninsula booths/stands should be a minimum of 20ft x 20ft (or 16ft x 20ft if booths/stands are 8ft x 10ft), with aisles on three sides.

Occasionally, an exhibition organizer will permit a 10ft x 20ft configuration to be sold as a peninsula. This is called an end cap. Generally, it is not advisable to sell booths/stands in this configuration, because enforcing the line-of-site rules makes it difficult with this setup.

International ModelInternational exhibition booths/stands are laid out in meters, and often use hard wall, or shell scheme booth/stand walls that may be permanently installed in exhibition halls, or installed following individual client configurations. The hard wall booths/stands of international exhibitions typically have sidewalls the same height as back walls (without line-of-site rules), and may be sold to include cubic content. The standard unit is three meters wide by three meters deep (or nine square meters) (IAEE White Paper: Evaluating and Implementing Cubic Content into Linear Exhibit Space).

These booth/stand configurations may be sold with standard packages of furnishings or fixtures, or may be customized by the exhibitors.

Booth NumberingThe goal of assigning booth/stand numbers is to devise a system that is logical, intuitive, and easy to follow. Attendees should be able to locate a booth/stand with minimal effort and few aids since booth/stand numbers are not always visible once carpet and booth/stand displays are installed. Convention center exhibitions generally will have aisle signs or booth/stand signs depicting the booth/stand number, while those in a hotel or other facility may depend more on floor-based graphics.

Several numbering methods are used in floor plan designs. The most common is street-style numbering, similar to buildings on a city street with even numbers on one side of the aisle and odd numbers on the other.

Sequential numbering is occasionally used for smaller events in hotel ballrooms, where booths/stands may be placed and numbered consecutively around the perimeter wall. It may also be used in a particularly long convention center aisle to avoid using four-digit booth/stand numbers. For example, the


232


100 series would fall on the left side of the aisle and the 200 series on the right (see fig. 15.4.). Infrequently a small floor plan may use serpentine numbering, with numbers winding up one aisle and back down the next, rather than starting a new sequence in the front of each aisle. The following are some general tips about numbering.

• Skip number(s) in the sequence when numbering across a cross aisle or other open area(s) that could be used for exhibits. This allows for reconfiguration of the plan without creating odd numbers, i.e., 103a

• Use the lowest number in the booth/stand grouping when reconfiguring an island or peninsula, which gives numerical consistency

• Conversely, when island and peninsula spaces are included in the original plan, reserve the remaining numbers associated with the individual booths/stands that make up the island. If the island or peninsula exhibitor cancels, the booth/stand can be broken down and renumbered and sold as linear booths/stands

Figure 15.4. Sequential Numbering

Aisle/Gangway SizesAisle (also known as gangways outside of the U.S./Canada) widths vary depending upon the applicable fire codes, the facility, and the exhibition needs, but are typically 8ft to 10ft wide in the U.S.; and 2.5m to 3m outside the U.S. and Canada. Other factors that impact aisle width include anticipated attendance, special activities, move-in and move-out logistics and aesthetics.

Cyber cafes/wireless zones

EXAMPLES OF FEATURE AREAS

Charging stations for electronics

Association booths/stands

Food service stations/cafes/

seating

Bookstores

Poster sessions

Registration areas

New product displays

Product demonstration areas

Cooking demonstrations

Fashion exhibitions

Sports demonstrations

or activities

Prize drawing/ raffle areas


233


Local ordinances, fire codes, and facility rules may dictate aisle width of a standard aisle, set standards for total number of aisles, length and width of cross aisles (aisles perpendicular to main aisles), placement of aisles in conjunction with exits, and no-freight aisles. No-freight aisles must be kept clear even during move-in and move-out, for access during emergencies, for delivery of freight and removal of empty containers, and for other safety reasons.

Wider or additional aisles may be required depending on the volume and type of exhibit materials and freight, exhibition schedule, and type of equipment used in the set-up, such as forklifts, boom or scissor lifts, or cranes.

In general, an approved layout is essential before beginning to sell booth/stand space. In the U.S., any major reconfigurations impacting aisles require re-approval by the fire inspector/fire marshal and facility; the parties responsible for safety approvals will vary by country and venue.

Feature and Presentation AreasFeature areas draw traffic and keep attendees on the exhibition floor longer. However, these areas can be distracting and pull attendees away from the business being conducted by exhibitors.

Strategic placement of feature areas can draw traffic to traditionally slow traffic areas. The availability of food and beverages can keep attendees from leaving the exhibition for meals or refreshments and can be sponsored or for purchase.

Prize drawings and new products can draw interest to an exhibit. However, noise and other activities should not interfere with the business environment of the exhibition.

Many exhibition organizers are looking for ways to keep attendees on the show floor by offering interactive displays, assets like charging and media lounges, private meeting areas, presentation stages, and association and membership resources offered in non-traditional ways. These must be balanced with the need for saleable space and a focus on engagement with exhibitors and sponsors.

Entrances and ExitsThe location of entrances and exits are key drivers to the traffic patterns and the designation of prime space. Clearly identify entrances on the floor plan used in the exhibitor prospectus, online plan, and in other selling tools. At the exhibition site, identify entrances with customized combinations of directional signs, banners, and other entrance treatments. For safety and traffic purposes, exits should be easily located with illuminated exit signs.

Security and SafetyThe exhibition organizer is responsible for ensuring the floor plan meets all applicable safety and fire codes, and for enforcing codes and regulations on-site. From the initial plan design through all phases of reconfiguration, the goal is a workable plan that will receive local fire inspector/fire marshal and/or facility approval. The rules change by country, from city to city and facility to facility. Current information and guidance can be provided from the facility’s event coordinator, the convention bureau staff, and local service contractors.

Operation of working machinery

EXAMPLES OF REGULATED ELEMENTS

Preparation of food in a booth/stand

Preparation for display of vehicles

Display of live animals

Capacity of people in the hall

Accessibility of fire extinguishers, alarms, and hoses


234


In addition to starting the sales process with a plan that is approvable, an exhibition organizer must know if/when the plan is to be submitted for approval, and the types of changes requiring resubmission. The OSC can be of assistance in this process. However, the exhibition organizer is responsible for ensuring a final, stamped, and approved plan is available on the exhibition site the first day of move-in.

In general, the removal of booths/stands or feature areas from the plan does not require resubmission. However, the addition of items or significant changes may require resubmission. The more detailed the plan, the less likely that issues will arise at the exhibition site and create unpleasant surprises for the fire inspector/fire marshal, facility, exhibition organizer, or exhibitor.

A detailed floor plan is a visual guide that assists contractors and facility personnel to accurately setup exhibit areas. Failure to observe applicable rules, or to obtain and follow an approved plan, can result in fines for both the exhibition organizer and individual exhibitors and may even result in a delayed opening of the exhibition or premature closure.

FLOOR PLAN COMMUNICATION

Floor plans may be subject to a complex approval process, moving from the exhibition organizer to the OSC, from the OSC to the facility representatives, from the facility to the fire marshal, from the fire marshal to the event organizer, and on to exhibitors. To make this process efficient, appropriate automation of the floor plan design is desirable. When the floor plan has been approved, the technology makes conveying the plan to the exhibition sales team relatively easy, and updates received through sales efforts can be readily detailed on the computer-based file. How spaces are assigned and sold must be determined after the floor plan has been through the approval process; the exhibition organizer will also have a process for recording sales and updating the floor plan information for all key stakeholders, (i.e., the OSC, the facility, the sales team, etc.). Some facilities provide floor plan guidance, as do many OSCs. Floor plan design software may be purchased for one-time use, generally through an application service provider, or multi-purpose software programs may be a more prudent purchase.

Floor Plan Control TechnologyFloor plans produced by the OSC or selected venue are maintained using computer aided design (such as AutoCAD) software. Software systems and third party providers are available to help the exhibition organizer control and update floor plans. Many exhibition organizers offer exhibitors the opportunity to select exhibit space online, and a web-based program allows for live reconfiguration and other plan updates. Application service providers may be the most efficient resource for these added-value online options.

All elements of the floor plan should be visible and available for sharing in both printed and virtual formats. Exhibitors should be able to visualize columns, entrances, aisle widths, and other information key to their booth/stand selection and construction, including a legend with abbreviations and dimensions.

ELEMENTS OF A FLOOR PLAN

Columns – clearly marked with dimensions

Booth dimensions – clearly identified

Entrances and exits – identified with arrows

Legend – legible, with key abbreviations

and symbols

Utility access

Aisle widths

Scale – relationship of size in feet/meters


235


Whether the exhibition organizer or a third party maintains the plan, regular updates must be provided to the OSC to avoid confusion, especially when the OSC is responsible for obtaining fire and safety approvals. Some available systems allow exhibition organizers to build in exhibition-specific rules, which are automatically considered, and eliminate errors when changes are made. The OSC is able to identify changes that create problems and the facility representative may also be an invaluable resource as changes are made.

In general, systems maintained by OSCs are more robust than those used by exhibition organizers, and contain more detailed information, such as layers showing rigging or hanging points in the ceiling and utility grids (the sources of electrical, air and plumbing).

The exhibitor list requires frequent updating and communication to the OSC. Booth/stand assignments with dimensions to cross-reference against the floor plan for accuracy must be communicated to the OSC, the entire sales team, and other exhibition management team members.

Floor Plan Navigation TechnologyMobile applications are available to share information like floor plans, exhibitor lists, and other exhibition-specific information. Strategic placement of touch-screen floor plan directories will aid attendees as they navigate the exhibition floor. Attendee-exhibitor connection services can help attendees plot their time and plan meetings. Emerging technologies continue to be developed that match exhibitors and attendees and are available in a range of price points. These technologies provide sponsorship opportunities and potential revenue streams.

Educating the Sales TeamMany organizations have separate sales and operations teams. Both teams must be aligned with the goals of the exhibition plan. Sufficient operational understanding of the facility is important for the sales team to preclude placing an exhibitor with special logistical needs or booth/stand features in the wrong space. For example:

• A hanging sign requires an area with sufficient ceiling height and rigging points

• A complex booth/stand should not be placed in front of a freight door, since set-up and tear-down of such a booth/stand could inhibit use of the door

• A booth/stand requiring electricity should be in appropriate proximity to electrical outlets

• A booth/stand with a large vehicle as part of its display should be in proximity to doors that can accommodate the width and height of the vehicle

Knowledge of the facility features gives the exhibition organizer an opportunity to maximize revenue, drive visual impact, manage logistics effectively, and drive greater interaction between exhibitors, attendees, sponsors, and the organization.


236


Space Assignment SystemsMany established exhibitions use points or assignment systems when selling exhibit space. A priority-point system may be based on the years an organization has participated in an exhibition, the amount of space purchased, and other participation such as sponsorships and advertising monies spent. When designing a plan to work within a point system, the floor plan must:

• Accommodate the space requirements of the established exhibitors who typically take the same amount of space each year

• Meet the needs of new exhibitors, or established exhibitors who wish to grow their space

• Adjust to the fluctuations of the market

• Adapt to different facilities or halls

The model must be flexible enough to ensure that established exhibitors are satisfied, while allowing newer exhibitors an opportunity for good space and movement. The system must allow the ability to make changes for the good of the overall exhibition, to drive traffic, and keep an exhibition fresh and interesting. It must also work for the sales process, whether on-site, online, or a combination.

An infinite number of formulas exist that could be used for space assignment, including lottery and first-come, first-served systems. Regardless of the system used, consistent communication is necessary, along with easy-to-understand instructions, and floor plan adaptability.

SUMMARY

This chapter contains the basic premises used to design a working floor plan. Each exhibition has needs that are unique, and they continue to change as exhibitors, attendees, and industries evolve. When developing a floor plan for the next event/exhibition, the following tips should be applied:

• Visit other exhibitions/events for ideas

• Follow industry developments

• Survey exhibitors and attendees

• Design with options for reconfiguration

• Plan traffic flow

• Research security, safety, and other applicable codes

• Build-in features to enhance traffic

• Work closely with the OSC

• Review space assignment systems

• Highlight key details for the fire marshal approval process

• Make notes at the current event to influence the development of future exhibition floor plans


237


The strategy for developing a successful floor plan demands an in-depth understanding of the needs of exhibitors, attendees, and sponsors, as well as the logistical opportunities and limitations of selected venues. After analyzing the needs and setting goals for the exhibition, the exhibition organizer and the OSC should work closely together to develop the initial plan to begin booth/stand sales. Many changes take place before the doors open on the first exhibition day. The resulting floor plan should be interesting, flexible, safe, and workable for all parties.

KEY WORDS

access point

activation

aisle (gangway)

AutoCAD

booth/stand

cross aisle

cubic content

designated product zone

egress point

end cap

english system

fire marshal

floor plan

gross square feet/meters (gsf/gsm)

horizontal exhibition

imperial sytem

island booth/stand

legend

line-of-sight

linear booth/stand

maximum floor plan

meter (metre)

metric system

net square feet/meters (nsf/nsm)

no-freight aisle


peninsula booth/stand

priority-point systems

rigging

sequential numbering

serpentine numbering

street-style numbering

SWOT analysis

utility grid

vertical exhibition

DISCUSSION QUESTIONS1. Why should the exhibition organizer review the floor plan every year for an

annual exhibition?

2. What industry trends might impact the sale of exhibit space?

3. What should the sales team know about the event venue?

4. What kind of information does the exhibitor need on the exhibition floor plan?

5. How can facility features impact the placement of exhibitors?

6. Who should be included in a facility site visit?


239

SECTION

4EXHIBITION MARKETING

CHAPTER 16General Marketing Practices

CHAPTER 17Marketing Strategies and Tactics

Marketing operationalizes the plans by bringing all of the components together and developing the message to various stakeholders. The chapter on general marketing practices focuses on a foundation for messaging, and the chapter on marketing strategies and tactics provides an organized approach to a positive outcome. A creative approach to sponsorship and advertising can provide a generous revenue stream that will benefit the exhibitors and exhibition organizer, and, ultimately, the attendees. Part of the planning and marketing strategies centers on the sales of booth/stands for the exhibition hall and are integrally connected to the development of the floor plan.

CHAPTER 18Sponsorship and Promotional Opportunities

CHAPTER 19Booth/Stand Sales


241

CHAPTER

16

“Always bear in mind that your own resolution to succeed is more important than any other.” – Abraham Lincoln

GENERAL MARKETING PRACTICES

Nicole Bowman, MBAVice President, Marketing and Communications


Susan E. Brower, CMM, CCPFormer Vice President, Marketing and Communications


Amanda Cecil, PhD, CMPAssociate Professor

Indiana University-Purdue University Indianapolis

LEARNER OUTCOMES


1. Define marketing, explain the difference between the marketing and sales functions, and how the two functions support one another

2. Identify the elements of a marketing plan

3. Describe market segmentation, define target markets, and explain how to reach key audiences

4. List the key elements of a timeline or production schedule

5. Review event evaluation and discuss the importance of establishing benchmarks to measure goal attainment


242

CHAPTER 16 General Marketing Practices

INTRODUCTION

Marketing exhibiencompassea muitude of strategies and tactics that when implemented correctly and precisely, will yield positive results and generate long-term rewards. Marketingis no anexact siene. n ehibtio coes o lfe by developing a marketing plan and integrating core practices with new ideas, angles and perspectives. The ultimate goal is to bring buyers and sellers together, face-to-face, so they can transact business.

DEFINING MARKETING AND SALES

The lines between event marketing and event sales are often blurred; however, they are very different. Marketing is the 365-day/year process of communicating the value of the face-to-face medium through branding, promotion, experience, and confirmation from consumers. Hundreds of definitions exist for both terms, as they relate to the exhibitions and events industry. Consumers heed the call-to-action through effective messaging and respond affirmatively to the message.

Philip Kotler, Ph.D. defines marketing:

…the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and designs and promotes the appropriate products and services. (Kotler 1)

The American Marketing Association (AMA) defines marketing “The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

The AMA defines sales as “any of a number of activities designed to promote customer purchase of a product or service.” Sales can be done in person or over the phone, through email or other communication media. The process generally includes stages such as assessing customer needs, presenting product features and benefits to address those needs and negotiation on price, delivery and other elements” (“AMA Resource Library Dictionary”).

Mark Smock, President of the Business Buyer Directory, suggests marketing and sales functions are diverse, yet very interdependent. Typically, sales cannot exceed revenue objectives without an effective marketing plan and support, while marketing directives ultimately become useless without sales to implement the plan. In general, where marketing used to be more theoretical than sales, marketing is now driven more by data … and is more prescriptive in purpose than descriptive. Marketing involves micro- and macro-market analysis and is focused on strategic intentions. Sales, on the other hand, is driven more by tactical challenges and customer relations. Marketing and sales functions are deeply rooted in each other’s purpose and revenue growth intentions (Smock 1).


243

General Marketing Practices CHAPTER 16

THE ROLE OF MARKETINGMarketing responsibilities are distinct from sales in that marketing:

• Establishes and justifies a company’s best competitive position within a market

• Creates, helps sustain, and rigorously interprets customer relationships initially

• Locates and profiles potential markets and key participants

• Generates quality sales leads

• Develops effective selling tools

• Analyzes and tracks competitors’ business strategies and tactics

• Defines, prioritizes, and justifies new product or service improvements and developments

• Promotes an explicit company product or service image

• Facilitates information transfer from customers to the rest of the company; and,

• Simplifies the customer’s product or service procurement process

Table 16.1. The Role of Marketing

Gaining the trust of a consumer requires considerable time and effort with both the marketing and sales process. Marketers act like scientists by forming hypotheses, establishing a method for testing, evaluating the results, and repeating the process to achieve success, change behavior, and, ultimately, create champions who act on the organization’s behalf (see table 16.1.).

ELEMENTS OF THE MARKETING PLAN

The exhibition organizer needs to create a comprehensive marketing plan to effectively market an exhibition. This specialized and detailed plan serves as a map for the ever-present promotion of the exhibition. Many external factors are pervasive throughout the marketing plan and should be appropriately positioned and considered during the development of the plan. For example, political factors, economic indicators, social and cultural issues, religious calendars and holidays, technology options, the environment, and other issues impact the perception of an organizer’s exhibition.

A case study example of a marketing plan serves as a learning tool. This case study focuses on Expo! Expo! the annual meeting and exhibition for the International Association of Exhibitions and Events (IAEE). The standard outline of the Expo! Expo! marketing plan in table 16.2. includes the essential elements of a well-rounded marketing plan.

IAEE EXPO! EXPO! CASE STUDY OUTLINE1. Executive Summary

• Mission and vision• Goals and objectives • Unique market proposition


244


IAEE EXPO! EXPO! CASE STUDY OUTLINE (CONTINUED)2. Situation Analysis (Research)

• Internal environment; an tion s ltSWOT (strengths, weaknesses, opportunities, and threats) as related to:o Organizationo Customers (exhibitors and attendees)o Competitors/collaborators

• External environment• t ccAxinmtiPEST (political, economic, social/cultural, and

technology)3. Market Segmentation

• Attendees• Exhibitors• Description• Percentage of sales • Price sensitivity• Wants/needs• How to reach them

4. Marketing Mix (see Chapter 17, Marketing Strategies and Tactics)• Product

o Brando Scope of the offeringo Quality

• Priceo Registrationo Discountingo Bundling

• Place (Distribution)o Face-to-face evento Collateralo Correspondenceo Direct mail

• Promotiono Advertisingo Public relations (image building through a variety of methods)o Publicity (stories written about IAEE in mass media)o Internet/e-marketing/Website/social media

5. Resource Utilization Plan• Project management• Budgeting• Timeline and production schedule• Resource allocation • Sustainability/greening of event• Contractual agreements• Human resources (HR)• Technology resources


245


IAEE EXPO! EXPO! CASE STUDY OUTLINE (continued)6. Evaluation and outcomes measurement (return on investment or ROI)

• Based on objectives and benchmarks• Conduct throughout implementation phase of marketing plan• Involve key stakeholders • Adjust marketing tactics as necessary, based on evaluation outcomes• Utilize to develop next marketing plan

Table 16.2. Case Study: IAEE Expo! Expo! Case Study Outline

Executive Summary The core component of any exhibition, as represented in table 16.3., defines the vision, mission, goals, objectives, and unique selling proposition. A goal states direction and defines the expectations of the exhibition. Objectives are quantifiable and measurable against budgets, timelines, and specific needs. The exhibition organizer will be successful in delivering immediate and long-term value for the exhibition or event if the unique value proposition (UVP) is defined. Communicating the value of the exhibition to key audiences is a critical tactic.

For example, the mission of the exhibition is to bring buyers and sellers together face-to-face (see fig. 16.1). The vision for the organizer would be to increase the value and long-term profit for the organization by producing an event. Similarly, the exhibitor’s goals are most likely to increase the visibility. The goals and objectives of these audiences may vary – education, networking, certification, governance, scientific discovery, etc. However, the overall, unique value proposition of the exhibition/event, as a whole, permeates through all elements. The strategy statement defines the overarching purpose of the event and is the one place that all event management should refer to when deciding on new tactics and experiences to incorporate into an exhibition.

Through concentrated marketing and trade show communication efforts, individuals will perceive increased value in attending. Similarly, defining, understanding, and adhering to the strategy and UVP for an exhibition are imperative steps. The UVP drives an event’s brand recognition, messaging, and attendance value.

Education

AUDIENCE GOALS AND OBJECTIVES

Networking

Certification

Governance

Scientific discovery


246


one place that all event management should refer to when deciding on new tactics and experiences to incorporate into an exhibition.

Through concentrated marketing and trade show communication efforts, individuals will perceive increased value in attending. Similarly, defining, understanding, and adhering to the strategy and UVP for an exhibition are imperative steps. The UVP drives an event’s brand recognition, messaging, and attendance value.

Figure 16.1. Face-to-Face Interaction (Source: Oscar & Associates)

EXPO! EXPO! EXECUTIVE SUMMARY OVERVIEW Expo! Expo! Strategy StatementExpo! Expo! is a diverse, interactive experience that fosters an environment of thought leadership, best practices and innovation. Expo! Expo! is the industry’s foremost face-to-face network for exhibitions and events industry professionals and the gateway to the decision-makers for the $91 billion exhibitions and events industry, with 91 percent of attendees having a role in purchasing decisions. Attendees include owners, executives, directors and managers from organizations that organize a wide variety of events, including many of the largest exhibitions in North America and from over fifty countries worldwide.

Expo! Expo! Vision StatementExpo! Expo! is where the exhibitions and events industry connects, AND conducts business. As the global authority on exhibition management, IAEE’s Expo! Expo! fosters an environment of thought leadership, best practices and innovative solutions for the exhibition ecosystem to apply in real time for effective results. No other trade show in the industry brings such a diverse group of buyers and sellers together for face-to-face interaction.


247


Expo! Expo! Goals• Create a successful annual meeting for IAEE members with established

learning objectives• Create unique experiences for exhibitions and events professionals• Offer new education and certification options for exhibitions and events

professionals• Establish networking opportunities conducive to making business

agreements face-to-face

Expo! Expo! Objectives • Increase attendance over previous year by 3 percent• Emphasize thought leadership and best practices by providing

attendees with experts on a wide range of current topics, including leadership, strategy, design, marketing, management and technology, while creating unique learning environments to immerse attendees in experiences

• Design an environment with more than 60 product and service supplier categories coupled with the largest gathering of show organizers in one place worldwide to create a unique environment for the global growth of the exhibitions and events industry

• Partner with technology innovators to provide attendees with the latest tools to create new experiences that attendees may implement in their own shows

• Convert five percent of nonmember attendees to new members• Create a hosted buyer program to increase attendance by five percent

Unique Value Proposition (UVP)The UVP for Expo! Expo! is to bring decision-making buyers and sellers face-to-face to strategically learn and network with the brightest minds in the exhibitions and events industry.

Table 16.3. Vision, Goals, Objectives, and Unique Value Proposition of Expo! Expo!

Situation Analysis – InternalThe situation analysis data found in table 16.4. is typically received from the previous year’s post-exhibition surveys and subsequent feedback in the IAEE community and in secondary data, (e.g., industry studies, research and reports).

Both IAEE members and professionals in the industry are aware of Expo! Expo! and make plans to attend the event early in the year. Board and committee members realize that their groups may meet during this time and set their calendars accordingly. Even though IAEE has existed for more than 90 years and many consider the annual meeting a must attend event, IAEE is competing for attendees’ time and dollars; therefore, relevant educational sessions must be developed and beneficial networking opportunities must exist at this face-to-face event. Virtual events have entered the field, as well. Surveys to organizers, exhibitors, and attending associates reveal that individuals continually depend on IAEE to provide a face-to-face forum, which allows them to build new business relationships and reinforce existing ones, as well as provide useful education sessions for both industry veterans and newcomers. Other issues like


248


entertainment, location, housing, venue, and food and beverage are important to this market as well.

Strengths, Weaknesses, Opportunities, Threats Analysis (SWOT)Using the SWOT analysis technique, an internal review documented in fig. 16.4. is developed based on research of the current marketplace and competitive analysis, and it serves to accurately position the event to potential attendees and exhibitors.

EXPO! EXPO! SWOT ANALYSIS Strengths Weaknesses• Established meeting in the industry• Brings buyers and sellers together

for business• Offers relatively low cost to attend• Offers reasonable meeting length• Maintains strong social media

following

• Struggling world economy• Competing industry events• Limited marketing budget• Competing virtual events

Opportunities Threats• Recruiting members to serve as

champions• Showcasing new technology• Increasing membership base

• Less than anticipated attendance• World or economic disaster that

impacts attendance• Lack of sponsor or advertiser

support

Table 16.4. SWOT Analysis

Situation Analysis – ExternalPolitical, economic, social/cultural, and technology (PEST) analysis examines the impact of external factors on an exhibition or event. Once identified, the results can be used to examine opportunities and make informed decisions that strategically market the event. The key elements of the PEST analysis follow:

Political. When examining political issues, the exhibition organizer should consider the impact of any political or legislative changes that could affect the event. For example, an election year, travel and tourism regulations, visa legislation, and environmental policies should be communicated to the Expo! Expo! target audience.

Economic. Economic issues have a direct impact on the marketing plan. During times of recession or economic prosperity, the exhibition organizer must be sensitive to a downturn and offer discounts or package registration fees, which will communicate a sense of empathy to the Expo! Expo! audience.

Social/Cultural. Considering political issues, awareness and respect of social and cultural issues are key to avoiding potential embarrassment, despite the best intentions. The exhibition organizer should seek out a peer or colleague with an understanding of the values in specific countries and an understanding of simple rules for addressing promotions to executives versus mid- and entry-level professionals. The effort of learning simple business etiquette, both in written and

Strengths

SWOT ANALYSIS

Weaknesses

Opportunities

Threats


249


spoken communication, is generally well received by potential attendees.

Technology. Ensuring familiarity with technology and knowing the best tool suited for an audience is paramount. Groups of individuals share commonalities through the use of computers, social networks, text messages, blogs, video, like-interest sites, industry affiliations, or chapter networks, and they have a preferred method of communicating with each other. Capturing the audience’s tendencies and preferences makes a dramatic difference in relaying the unique value of the event.

Adding a technology component to the mix makes the process cleaner, simpler, and at times, automated.

ObjectivesObjectives are set once information from the situation analysis is collected and analyzed. However, objectives may be set and revised as more data is collected regarding the target audience(s) and other information key to developing a sound marketing plan. Samples of objectives for marketing the exhibition include the following options:

• Increase awareness of the exhibition to individuals who can make the decision to attend, or with the power to approve the attendance of others based on a two percent increase in registration and a five percent increase in media impressions

• Increase preference for the exhibition over other competitors as measured by post-exhibition survey results and registration motives

• Generate valid pre-registration for those qualified to attend, or pre-sale of group or individual tickets as evidenced by five percent increase in registration

• Increase awareness of the exhibition through defined target markets and activities, education and special networking opportunities for those target audiences

The key to a sound advertising campaign is research and planning. Advertising efforts made without clear objectives in mind are almost always efforts wasted. The efforts and budget devoted to advertising must complement the overall marketing goals and objectives and work in concert with other media directives (see table 16.5.).

ADVERTISING OBJECTIVESDevelop awareness of the exhibition among new potential attendees as evidenced by two percent increase in registration.

Introduce new features and benefits of the exhibition as evidenced by implementation of at least 10 promotional messages distributed to targeted audiences.

Political issues

EXTERNAL MARKETING

FACTORS

Economic indicators

Social and cultural issues

Religious holidays

Technology options

Environmental considerations


250


Expand the exhibition’s reach into new markets or geographical areas as evidenced by engaging at least three new target audiences and niches previously unknown to the exhibition organizer.

Reinforce the marketing message to past attendees as evidenced by at least 15 repetitive communications promoting varying aspects of the exhibition.

Generate at least 20 new sales leads based on contact information exchanged and new introductions made through existing relationships.

Table 16.5. Advertising Objectives

Marketing TimelineOnce the goals and objectives for the exhibition are established, goals, objectives, strategies, and tactics are developed for marketing. A marketing timeline that matches the list of tactics (deliverables) with the overall project deadlines will ensure that major milestones are met. Key elements of the timeline or production schedule for marketing materials are:

• Staff resources

• Deliverables

• Identifiable steps

• Budget constraints

• Time associated with each step

For example, when developing a print brochure to attract attendees, the marketing staff will start with the delivery date in mind, identify the necessary steps to achieve that delivery date, and create the timeline based on when brochure development must begin. Depending on the logistics associated with delivery, the staff will add time to ensure printing, comps (comparable sales), proofreading reviews, design and layout are all complete and given adequate time to review design options to eliminate shortcuts or rushed processes. Figure 16.2 provides an example of an annual timeline for strategic marketing of an event.

“In God we trust, all others must bring data.”

– W. Edwards Deming


251


TIMELINE EXAMPLE FOR EXPO! EXPO!

DECEMBER/JANUARY/FEBRUARY

• Audit results published• Production schedule development• Marketing plan development• Website development• Video development• Website launched

MARCH/APRIL

• Registration goes live• “Register Now” email blast • Promotion in newsletters• Website maintenance• Calendar listing sent to trade media• Meet with advisory group

MAY/JUNE• Distribution of teaser• Website maintenance• Promotion in newsletters

JULY• Promotion in newsletters• Magazine article• Promotion at IAEE events

AUGUST

• “Save-the-Date” email• Promotion in newsletters• Industry publications – coverage• Promotion at IAEE events

SEPTEMBER

• Registration brochure distributed • Website• Promotion in newsletters• Articles in industry publications • Media relations• E-Blasts• Distribution of registration brochure

OCTOBER

• Expo! Expo! e-letter to exhibitors• E-Blasts• Media calls with onsite confirmations• Press release distribution • Promotion in newsletters• On-site guide in development • Media alert distribution • Coice mail blast• Outlook reminder about early registration ending

NOVEMBER

• Promotion in newsletters• E-Blasts• Media calls with onsite confirmations• Media kit distribution• Voice mail follow up blast• Press conference onsite

DECEMBER

• 6-8 December – Expo! Expo!• Website• Post-meeting surveys to attendees and non-attending members

Figure 16.2. Timeline Example for Expo! Expo!

Marketing Evaluation Organizers not only need to evaluate the exhibition and/or event during and after, but also use benchmarks to measure outcomes of the marketing efforts. A registration audit following the event provides solid evidence of the progress toward an objective focused on attendees who registered and attended. Other outcomes to measure might include meeting budgeted revenue as evidenced by paid attendee registration or confirming all sponsorship and advertising opportunities were fulfilled based on sold levels and packages. The event organizer might track attendee motives for attending to determine which means of promotion were most effective. Tracking where attendees gained information about the event – such as, the website, direct mail, email, retargeting and social media – will also provide insight on the effects of promotional efforts. In addition, the sales efforts to gain exhibitor commitment could be measured. Figure 16.6. represents outcome measurement results for Expo! Expo!


252


EXAMPLES OF OUTCOMES MEASURED FOR EXPO! EXPO!Attendance at Expo! Expo! increased two percent as evidenced by meeting registration audit and comparison.

100 percent of budgeted revenue was met as evidenced by paid attendee registration.

100 percent of sponsorship and advertising opportunities were fulfilled.

All motives were tracked by the registration company to determine which means of promotion was most effective. This information was obtained from the registration form.

Table 16.6. Examples of Outcomes Measured for Expo! Expo!

DEFINING TARGET MARKETS

Each exhibition has two major marketing and sales efforts: The exhibition organizer must sell booth/stand space and deliver a sufficient number of attendees to the exhibitors. The marketing plan analyzes market segmentation, describes each target market, defines the percentage of sales and/or price sensitivity, details consumer wants and needs, and outlines how best to reach the key audience(s). However, target market identification can be done by other members of the organization, besides those in the marketing unit for the enterprise. For instance, a director of education for a large association will be quite interested in target market identification, as will the membership coordinator in that association. The marketing staff for a large exhibition needs target market identification data, just as the public relations coordinator will rely on such information. Defining target markets may be an important step in developing the marketing plan or may be a function for another part of the project management team or unit within the enterprise. No matter how this information is sought and documented by enterprise staff, the information gathered about target markets will be valuable during the event marketing efforts. The successful and efficient implementation of a marketing plan begins with all departments understanding the plan, and their roles in achieving the desired outcomes detailed in the plan.

AttendeesAn exhibition attendee is described as “an individual registered for or participating in an event” (“Events Industry Glossary”). They are professionals from organizations that utilize the products, services, or equipment displayed at exhibitions. Exhibition organizers tend to classify exhibition attendees into three categories: (1) buyer, (2) purchasing agent, or (3) research and development specialist. A buyer selects which types and brands of products to buy and makes final decisions. A purchasing agent may also make decisions but tends to order and re-buy products already in use within the company or organization. The research and development specialist, often an engineer or scientist, has the technical skills and knowledge necessary for product development, but often only recommends to others within the organization what products to buy. All of these attendee categories are important contacts for the exhibitor.

Senior level executives

FIVE IAEE MARKET SEGMENTS FOR EXPO! EXPO!

Show/event directors/organizers

Operations personnel

Sales and marketing professionals

Suppliers


253


Attendee Demographics. Knowing where the attendees come from is important for developing the attendee marketing campaign, and this part of defining the target market is known as attendee demographics. For example, an exhibition drawing a national or international audience will be marketed with a broad global approach, in comparison to the marketing campaign aimed at attendees from a regional or local jurisdiction. Additionally, trade (or industry) exhibitions and consumer exhibitions are marketed very differently from each other. Attendees vary greatly in terms of motivation, expectations and needs. Exhibition organizers must address these differences when developing marketing strategies and tactics.

Attendance at private industry exhibitions is limited to members of that industry only and usually requires pre-certification or proof of membership, (e.g., a relevant business card). Trade associations sponsoring this type of event may offer a variety of levels for the attendee to choose from when registering, (e.g., full-conference fee, multiple registrant rate, one-day pass, companion pass, or an early registration discount rate). Associations may also offer a non-member rate, which tends to be substantially more expensive than the membership conference rate.

Many exhibitions are part of a larger educational program, commonly referred to as a convention. The success of an industry convention depends on the exhibition organizer’s ability to present potential attendees with the right combination of valuable educational programming, networking, and problem-solving opportunities, as well as new ideas to take back to their job. Attendees also want to be guaranteed that the vendors they are seeking will be participating in the exhibition portion of the event, and that the educational programs are relevant to their needs. Documenting the success of previous exhibitions (sometimes with testimonials from past attendees) helps to convince those who did not attend that they missed an opportunity to gain some professional development skills and assist their companies in reviewing new products and services. Coming up with success stories is challenging for a new exhibition launch and can also be difficult for an industry event in distress.

Consumer Exhibitions. Contrary to trade events, consumer exhibitions are open to the general public, and attendees are the end users of the products or services. Attendees are either enthusiasts of the exhibition’s focus, or participants in the activity as a hobby or craft. Attendees may live in the surrounding area, and their motivation for coming to the exhibition is not professional development or purchases but range from seeking specific products or service information to just window-shopping.

Consumer exhibition organizers may charge an admission fee or sell tickets to the event. Although advance registration is not required, pre-sold tickets are usually offered at a discount. Group ticket sales are popular for some consumer events, and exhibition organizers tend to target local and regional organizations, such as sporting clubs, that may have an interest in the event. In addition, a small portion of a consumer exhibition’s proceeds is commonly donated as support for a local or regional charity or community effort.

CATEGORIES OF EXHIBITION

ATTENDEES

Research and development

specialist

Buyer

Purchasing agent


254


Consumer exhibitions sometimes offer seminars or demonstrations of interest to attendees (e.g., cooking demonstrations, golf swing clinics, and musical performances), as well as discounted merchandise priced significantly below retail (also known as exhibition specials) and promotional activities, such as raffles and drawings for free trips and cash prizes. Celebrity or notable icons appearing at the exhibition, either paid for by the exhibition organizer or individual exhibitors, tend to drive attendance and media interest in the event.

Targeted tactical marketing for consumer exhibitions typically starts later than for trade exhibitions, usually six to eight months prior to the event, with an aggressive marketing blitz utilizing local media starting only four to six weeks out. Major marketing efforts may center on new special programming additions, or the release of discount programs. Annual events tend to emphasize that there will be something past attendees have never seen before to generate repeat attendance.

ExhibitorsExhibitor marketing is a complex process that requires a sound strategic plan, including a timeline for creation of an exhibitor prospectus, advertising, public relations, e-marketing, direct sales, and international marketing objectives.

Exhibitor Prospectus. An exhibitor prospectus is a promotional direct mail piece or electronic document sent to current and prospective exhibitors to promote the benefits of exhibiting in a specific exhibition and encourage participation. This critical marketing piece provides potential exhibitors with the information, as listed in table 16.7., that is helpful in determining if this exhibition fits their company’s sales goals and objectives. An exhibitor prospectus can vary from a 20-page, full-color book (as for medical exhibitions), to a glossy foldout brochure (as for many privately-owned trade exhibitions), to a one-page information piece (as for a local consumer exhibition), depending on the norms and standards in each industry.

EXHIBITOR PROSPECTUS CONTENTSName of host organization and contact information

Logistical details

Eligibility requirements to participate

Cost of exhibition space

Floor plan of the exhibition

Exhibition rules and regulations

Statistics on the exhibition’s attendees or market survey results

Sponsorship and advertising opportunities

Travel and destination tips

Application for participation

Table 16.7. Exhibitor Prospectus Contents


255


Sponsors and Advertisers Sponsorship packages are developed collaboratively with exhibition organizers to meet the needs of a potential advertiser or sponsor for maximum exposure. Event sponsors provide monetary support or in-kind donations for exhibitions, while event advertisers purchase advertising space from the exhibition organizer. Sponsors and advertisers not only support the event and program financially, but also serve as advocates of the event and can exponentially increase promotion and awareness of the event. Some opportunities for sponsorships and advertising follow.

The Global AudienceOrganizers may need to consider building a multi-national or multi-cultural audience when planning for an exhibition. These audiences should be researched and strategies for reaching them integrated into the overall marketing plan. The exhibitions and events industry is a part of the global marketplace and international trade is important for generating commerce. Companies are now operated in different countries, and marketing efforts for those global businesses require extensive research, focused sales promotion, direct selling through local channels, and thoughtful customer cultivation and service.

To target specific global markets, exploring trade data and statistics will assist the exhibition organizer in selecting regional markets that have a high volume of export products suitable for the exhibition, high rates of growth, favorable trading conditions, and other key factors governing international trade. For instance, in the United States, the Industry & Analysis Office of the International Trade Administration (an office in the U.S. Department of Commerce), offers statistics and direction on international trade issues. When producing an event internationally, organizers should research the laws for international trade governing the country in which they are operating. Globally, organizers can contact the consulates of the countries in which they operate to understand the legal issues associated with organizing such exhibitions.

DEFINING KEY MESSAGES

Following a complete review of all internal and external factors, exhibition organizers can begin to craft messaging. Defining key messages is critical to the core of the marketing plan. The message is defined with a thorough understanding of the audience and carefully selected inclusive and actionable words that resonate with a targeted segment tapping into emotional triggers that may drive a decision to attend.

• Passion for profession

• Fear of missing out (FOMO)

• Excitement

• Fear of competitors

• Sense of belonging/Community

• Career ambition

• Desire for recognition

e-Registration brochure

EXPO! EXPO! SPONSORSHIP

OPPORTUNITIES

On-site guide

e-Blasts

On-site events (breakfasts, luncheons, networking sessions,

receptions)

Banner ads

Thank you sponsor

Summit club

Platinum circle

Transportation

Key on-site events

Defining key messages is critical to the core

of the marketing plan


256


Center for Exhibition Industry Research (CEIR) – How to Grow Attendance Series, Report Three: Messaging that Resonates and Delivers, 2018 – respondents to a survey rated the most effective messaging in growing attendance.

Figure 16.3. Key Marketing Messaging and Effectiveness in Driving Attendance (Source: Center for Exhibition Industry Research (CEIR), How to Grow Attendance Series, Report Three: Messaging that Resonates and Delivers, 2018)

Effective key messages typically rely on the skills and knowledge of experts, so message development is sometimes managed by outside consultants or in-house staff who are specialists in creating content and/or designing marketing materials (see fig. 16.4.) for exhibitions.

• Expo! Expo! is the premiere, face-to-face opportunity in the exhibitions and events industry offering a variety of interactive education sessions and networking opportunities designed to enrich your long-term career.

• With the resources at Expo! Expo!, you will develop business relationships that will benefit both you and your markets, and you will feel confident that you are providing the best service to them.

• Find out what is new and innovative in the industry

• Build strategic business partnerships with key decision makers

• Build your career resources by learning from seasoned industry veterans

Figure 16.4. Expo! Expo! Key Messages

SUMMARY

Marketing and sales are quite different functions when organizing events, but require total buy in from both parties. Marketing includes developing a marketing plan, implementing that plan and evaluating the results. Sales efforts focus on


257


gaining exhibitors for the exhibition, typically through person-to-person, face-to-face, email and telemarketing activities.

Defining key messages in the marketing plan is an important step for successful exhibitions. Frequently, this step is handled by consultants or specialists in message content and design. Other units in the exhibition organizer’s company might play a role in defining the target markets; regardless of how the target market information is collected and documented, the enterprise uses this information in a variety of ways. Defining the target markets appropriately is critical to successful marketing efforts.

Event marketing is focused on promoting the exhibition to exhibitors and attendees, some of whom may also be sponsors and advertisers. Depending on the type of exhibition, the exhibitors and attendees could be divided into several target markets, based on demographic and other characteristics. Marketing to exhibitors is a series of promotional tasks, one of which is the preparation of an attractive prospectus to create “buzz” among potential exhibitors and encourage them to participate in the exhibition. Marketing to attendees utilizes numerous methods, depending on the needs and characteristics of the audience.

KEY WORDS

attendee

attendee demographics

consumer exhibition

convention

event advertiser

event marketing

event sales

event sponsor

exhibition specials

exhibitor prospectus

market segmentation

marketing plan

PEST

situation analysis

SWOT

unique value proposition (UVP)

DISCUSSION QUESTIONS1. Describe the interdependent relationship existing between the marketing and

sales functions and provide an example of each function.

2. Explain the benefits of a marketing plan to an exhibition and to an organization.

3. Compare and contrast an internal environment situation analysis with external environment situation analysis.

4. Explain how to adapt messaging to defined audience segments, (e.g. attendees, exhibitors, sponsors, and advertisers), to communicate the unique value proposition.

5. How is a production schedule for marketing materials utilized to facilitate the successful implementation of an exhibition?


259

CHAPTER

17

“An education isn’t how much you have committed to memory, or even how much you know. It’s being able to differentiate between what you know and what you don’t.” – Anatole France, qtd. in Masters and Wallace 22

LEARNER OUTCOMES


1. Discuss the four P’s and explain how the marketing mix is applied to reach target markets

2. Identify five common tactics used in marketing plans to achieve marketing goals

3. Discuss the advantages and disadvantages of e-marketing and website marketing strategies

4. Explain the benefits of developing a social media marketing strategy and discuss related considerations

5. Summarize strategies for targeting and attracting global audiences


Nicole Bowman, MBAVice President, Marketing and Communications


Susan E. Brower, CMM, CCPFormer Vice President, Marketing and Communications


Amanda Cecil, PhD, CMPAssociate Professor

Indiana University-Purdue University Indianapolis


260

CHAPTER 17 Marketing Strategies and Tactics

MARKETING STRATEGIES

In marketing, four Ps are typically used to effectively develop marketing strategies that are on target and will yield intended results: product (the exhibition or event), price (setting registration fees, booth rental fees, sponsorships, advertising that is sold or sponsored, etc.), place (distribution mediums), and promotion (communicating the message). A marketing mix of the four Ps was created during a time when products, rather than services were the primary focus, and the combination of these options used to reach a target market for the product or product line. Figure 17.1. defines the marketing mix.

Figure 17.1. The 4 Ps of Marketing Mix

TARGETMARKET

PRODUCTwhat the organization

is offering

PRICEthe value exchanged for

that offering

PLACEthe delivery mechanism

used to make that offering available

to the target audience

PROMOTIONthe means of

communicating that offering to the target

audience

Figure 17.1. The marketing mix is what the organization is offering; price is the value exchanged for that offering; place is the delivery mechanism used to make that offering available to the target audience and promotion is the means of communicating that offering to the target audience. Several different tactics are used to implement the promotion part of the marketing mix. Exhibition organizers, to attract attendees to exhibitions, use the promotion tactics, media, and technologies explained below. These promotion tactics include advertising across the media, public relations, publicity, direct mail, and e-marketing.

The original marketing mix of 4 Ps (product, price, place and promotion) is defined as the “set of marketing tools that the firm uses to pursue its marketing objectives in the target.” Citation: Kotler, P., Marketing Management, (Millennium Edition), Custom Edition for University of Phoenix, Prentice Hall, 2000, p. 9.

In services marketing, an extended marketing mix is used, typically comprising 7 Ps, made up of the original 4 Ps extended by process, people, and physical evidence. Citation: Booms, Bernard H.; Bitner, Mary Jo (1981). “Marketing Strategies and Organization Structures for Service Firms.” Marketing of Services. American Marketing Association: 47–51.


261

Marketing Strategies and Tactics CHAPTER 17

Figure 17.2. The 7 Ps of the Marketing Mix

7 ‘P’sMARKETING

MIX

PRODUCT

PLACE

PRICE

PROMOTION

PEOPLE

PHYSICALEVIDENCEPROCESS

This extension to the marketing mix considers who the exhibition organizer’s customers (people) are and their needs, wants and preferences (i.e., the attendees and the exhibitors). As well as the unique value proposition (UVP) for participating in an exhibition (physical evidence) and the customer experience they will enjoy at the exhibition. Finally, what will be done to deliver on the promise of the UVP (process). These additional elements can be helpful when developing the marketing plan, as well as conducting a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, and competitive analysis for an exhibition.

Additionally, technology and changing demographics have complicated the evolution of the marketing and advertising industries. Traditional tools for marketing are being displaced by new and often experimental techniques. One of the most effective forms of marketing, engaging the buyer with the seller, typically through some form of electronic communication, is conducted in support of face-to-face interaction.

The growing adoption of digital media tactics has been viewed as complementary rather than competitive to the exhibitions industry, and digital media provide an opportunity for exhibition organizers to partner with exhibitors to achieve integrated marketing goals. Many exhibition organizers are exploring adding an online or virtual element to their established face-to-face event. Depending on the target market, timing, education, and message, online extensions may prove beneficial to reach a wider audience. CEIR’s Digital+Exhibit Marketing Insights 2010 report found, “There has been great anticipation, as well as apprehension, for virtual events and the impact they will have on live exhibitions. The data suggests that the industry views the benefits of virtual events as outweighing the potential risks. As might be expected, IT [information technology] industry respondents report the highest adoption rate of virtual events, with usage among those in the events space coming in a close second. The potential for significantly reducing travel and event management costs makes virtual particularly valuable to brand-side marketers. Using virtual to complement live events and attracting would-be attendees is what appeals most to exhibition producers (12).”


262


MARKETING PLAN DEVELOPMENT

Marketing the dates and locations to exhibitors and attendees should be an ongoing, year-round process and included in all pre-event publications and announcements. Often, while the current exhibition is occurring, marketing the next exhibition has already begun. Organizations secure locations and dates for future exhibitions and events three to 10 years in advance, so this information is readily available for publication as soon as dates and locations are confirmed. Industry professionals and association members who eagerly anticipate and regularly attend certain exhibitions and events often want to reserve the appropriate block of time on their calendar far in advance; therefore, early announcements are a benefit for many organizations.

The marketing plan is only worth developing and implementing within an established budget. An exhibition organizer for an association can accurately estimate revenue and expenses for a zero-based budget. Of course, most organizations hold exhibitions to generate revenue. Marketing an exhibition can be risky, but the effort is worthwhile if the event is well received by the target audience and it generates operating income for the upcoming year.

Business IntelligenceTo develop an effective marketing plan, the organization must identify and understand the target market utilizing data that is collectively known as business intelligence. Discovering behaviors and tendencies of attendees and exhibitors allows for more effective and precise messaging and positioning, thus creating a full experience for the target audience. Customer-centric marketing and a data-driven marketing plan will promote success. Starting with the results from the previous year, the organization will explore multiple technologies, ethnography, data mining, demographics, radio-frequency identification (RFID) generated data, personalization, customization, surveys, focus groups, and telemarketing options. Then, the organization will follow the investigation with the identification of preferences, cautions, and continual improvement before, during, and after the event. The key to business intelligence is making sure that the right data is being gathered from the onset and that all departments involved in the planning of the event are in agreement about what is to be collected and why.

AdvertisingPrivate exhibition organizers use targeted, niche advertising media to promote exhibitions and educational programs. Industry and professional publications, newsletters, journals, magazines, and selected websites are the advertising media of choice for most trade exhibitions. Because attendees must be pre-qualified or they must meet minimum criteria to participate in the private exhibition or event, few private exhibition organizers advertise or market to the masses. Instead, the media selected have an audience that is similar to the exhibition’s intended audience, so the media chosen for advertising are carefully selected on strict criteria or the demographics of their audience and how well that complements the demographics of the exhibition’s audience.

For consumer shows, advertising is forward facing to the public. The exhibition organizer may advertise on radio, billboards, and television.

Business intelligence

MARKETING PLAN DEVELOPMENT

Advertising

Public relations

Media relations

Direct mail

Email

Websites

Social media

Content marketing


263


While most companies consider advertising a tool, some companies have advertising departments and the advertising developed there may have either a marketing or public relations focus. Advertising for the first promotes sales and asks for the purchasing decision. Advertising for the second promotes the organization’s (or exhibition’s) image and may not have a call for action; still, persuasion to change perspective, awareness, or behavior may be part of the advertising message developed for public relations purposes.

Public Relations Public relations (PR) as a function within an organization may be part of the marketing unit or a stand-alone unit. Both PR and marketing use advertising as a communication tool, but for different reasons. PR includes relationship development, stakeholder monitoring and management, publicity, organization promotion, and related tactics. PR professionals focus on the organization’s image, with key stakeholder groups, whereas marketing focuses on promotion of the product to one or more target audiences. At times, marketing is focused on the immediate needs of the organization in terms of promotion, but the PR efforts tend to be more long-term focused.

PR professionals are often charged with media relations, so they can generate positive publicity for the exhibition or event, as well as for the organization in general. Available to exhibition organizers at no charge, the unique advantage of publicity is that it is perceived by the audience as an impartial view, primarily because it is a third party (the medium) communicating about the exhibition or organization. The readers of publicity placements assume that the publisher’s opinion is being expressed, and the message gains instant credibility based on the publisher’s reputation; however, exhibition organizers have little to no control over how the message is ultimately constructed and presented. In other words, publicity can be incorrect or negative. While marketing professionals covet positive publicity, negative publicity is the PR professional’s nightmare. Other uncontrolled media messages include news advisories, press releases, public service announcements (PSAs), and video news releases (VNRs), unless the medium uses the prepared message without editing, which is very rare.

Controlled media messages, though, are not publicity. These controlled media placements include advertising, but also include brochures, videos, websites, and other tools. These tactics are not free, as their production alone can be quite expensive, and the placement costs add to the overall promotion expense. Besides the use of traditional media opportunities, such as trade magazine advertising, social media offers an opportunity for controlled communication. However, social media can be uncontrolled exposure, and the viral effects of a negative message in social media can be devastating for an exhibition.

Social media has a unique perspective in that the promotion is often perceived as credible, like publicity, when in fact the publicity was planted by the organization. Many blog operators receive payment for the comments they make about an organization or its products, and some of those payments are for negative comments about competitors, as well as positive comments about the payee. These bloggers are under no compulsion to disclose they have been paid to make


264


these comments, whereas advertising is often obvious and even declared in a publication. Therefore, social media has a mixed reputation, where it may be seen as a credible source, though that reputation is undeserved. It may be controlled or uncontrolled, depending on the situation, and social media can be difficult to measure accurately. Nevertheless, social media has become an integral part of marketing and PR communications.

Putting together a comprehensive plan with specific objectives can direct public relations efforts to their most favorable end (see fig. 17.3.). PR efforts can easily overlap and should complement marketing efforts, and, if the organization is sufficiently large enough to have a separate communications staff, PR will overlap with that unit as well. This is the most critical reason for the use of integrated communication in business. These units, with their own focused plans or campaigns, must integrate their efforts to deliver complementary messages to overlapping and discrete audiences. A poorly integrated approach can expose the organization to unintended risks and negative consequences. Well-integrated efforts, though, optimize the use of enterprise resources and can enhance the effects of the marketing and PR activities.

In some organizations, the marketing staff does not have a complementary staff in PR and/or communication, and all of the communication activities will fall entirely within the marketing unit’s purview. The distinctions within a company between marketing, PR, and advertising, as well as communication in general, may blur, but these areas often are distinctly different in function, purpose, and intended audience.

Media RelationsMedia relations refers to the establishment and maintenance of relationships with identified media reporters, editors, publishers, broadcast producers, radio and television owners and managers. When dealing with the media, exhibition organizers must understand the nature of their roles. The reporters, for instance, often have assignments from their editors and can rarely generate their own assignments. Should the story idea be sent to the reporter or the editor? Reporters also typically have critical deadlines and these deadlines are not negotiable. The cut-off date/time for a news story is either observed or the story does not run. Additionally, the exhibition organizer must always observe a professional code of behavior when working with media representatives. For example, stories that are not perceived as newsworthy – in other words, the story will not be of interest to the medium’s target audience – will quickly be dismissed by media representatives.

While PR professionals are often asked to produce news releases to generate publicity, approximately 90 percent of all news releases are discarded (most without reading) by news outlet representatives. If, however, the organization has taken the time to develop media relations, the percentage of utilized news releases dramatically increases, as the PR professional learns to write the release in the appropriate style, by the appropriate deadline, to the medium’s target audience, and the news release is sent to the appropriate media representative. This development of positive relationships is critical to the success of PR efforts involving the media.


265


Figure 17.3. Marketing and Public Relations Activities in Perspective

PUBLIC RELATIONS

Increase awareness of an exhibition’s location, date, or other significant characteristic.

Increase attendance at educational programs or demonstrations.

Combat rumors spread by the exhibition’s competitors and/or other parties that disagree with the exhibition’s or an exhibitor’s product or practices.

Plan media training for the organization’s spokesperson.

Identify who is responsible for each element of the marketing plan and PR campaign.

Select a spokesperson or organization representative who will interact with editors, reporters, and writers.

Collect press and video clips and evaluate for accuracy, quality, quantity, and placements within media.

Survey for changes in attitudes and awareness of exhibition or exhibit organizer.

MARKETING

Generate inquiries by professionals for copies of the exhibition’s brochure.

Decide involvement of an outside firm to create an outside perspective and evaluation of a marketing plan.

Define the specific objectives for the organization’s PR campaign and marketing plan.

Track number of inquiries as a result of PR or marketing efforts.

COMMON TO MARKETING AND PUBLIC RELATIONS

Calculate a timeline to complete PR and marketing efforts.

Budget for PR and marketing efforts.

Plan outside services as needed for activities, such as artwork development, printing, mail services, photography, video production, travel and entertainment, mailing lists, and subscriptions.

Assess salaries and outside fees of targeted PR and marketing activities.

Establish evaluation methods to measure the PR campaign’s and marketing plan’s results.

Conduct technical review and policy review for all PR and marketing messages.

Conduct technical review and policy review for all PR and marketing messages.

Tips for Generating Positive Media Attention. Generating positive media attention challenges the developed marketing strategies. The following tips provide ideas to help increase the possibilities of garnering a positive outcome.

• Send the media a news advisory or fact sheet that clearly outlines the facts and highlights of the event

• Send a press release to newspapers, sometimes magazines, but never to broadcast stations. Send news advisories to any medium. Send PSAs in written and audio form to radio stations. Send only professionally developed VNRs to television and cable outlets

• Avoid favoring one reporter, news editor, or broadcast station over another. However, when a target audience matches the target audience of a medium, it may become a “favored” medium because of the results generated by message placement with that medium

• Write a tailored press release to reach the newspaper’s audience effectively

• Follow up appropriately, but do not harass reporters, editors, or station managers


266


• Provide media contacts with a media kit with details about the organization and exhibition. Include a recent press release, fact sheet, Q&A sheet, backgrounder (historical perspective), promotional brochures, photos and biographies of keynote speakers, celebrities or other notables, and camera-ready artwork.

• Sponsor a news briefing, news conference, or news reception to get acquainted with the media and make major announcements.

• Use terminology appropriately when working with media representatives; the word press traditionally refers to newspapers, but not to magazines, radio, television, cable, or Internet outlets.

• Invite the media to the exhibition with a guided tour and treat them as honored guests.

• Use PR and marketing experts when appropriate (see fig. 17.4.).

Figure 17.4. Press Conference (Source: Oscar & Associates)

Direct MailDirect mail, or promotional communication that is transmitted through the mail, is commonly used for industry and consumer exhibitions. According to the 2017 Data & Marketing Association Response Rate Report, letter-sized envelopes, for instance, had a response rate of 4.3 percent for a house list and 2.5 percent for a prospect list. Oversized formats performed higher than letter sized and postcard sized pieces performed for both house lists at 6.5 percent and prospect lists at 4.9 percent. Additionally, response rates for business-to-business (B2B) campaigns were generally higher than for business-to-consumer (B2C) campaigns. Lead generation also had higher response rates.

Considerable time and funds are spent on direct mail, which can include creating and mailing brochures and postcards, as well as printing and postage costs. The best direct mail pieces make a call-to-action for readers and usually include a process to register for the event, either by mail or online. Incentives, like discounted rates, may prompt immediate responses to this call.


267


Personalization of Direct Mail. Direct mail can be personalized and may allow for creative options to be added, such as sounds, videos, scents or holograms. In addition, it is a marketing strategy that can be measured for effectiveness by building in tracking methods. Return-on-investment for a direct mailing activity is measured by response rate. Evaluation of each marketing attempt is important to determine the most effective marketing tactics for a specific event.

Experts agree that mailing to targeted potential attendees is an important component for an effective direct mail activity. Creating, managing, and maintaining a targeted attendee mailing list is a challenging and necessary task for all exhibition organizers. In a sophisticated database of potential attendees, the marketing staff can send tailored direct mail pieces to various categories – frequent attendee, new attendee (has not attended before), or active buyer, for instance. The new attendee might need different encouragement and information to make the attendance decision, whereas the active buyer might need little incentive beyond the basic information. Direct mail allows specific message presentation and delivery to specific prospects by type.

The list of direct mail recipients is built using past sales or registration records, routine office correspondence, inquiries, referrals, lists from past direct mail campaigns, contest entrants, recommendations from others inside and outside the organization, directories, government sources, lists in trade magazines, and lists exchanged with other parties. The exhibition organizer can rent or purchase lists available through list compliers, list brokers, trade publications and associations. Typically, organizers prefer a combination of the two options, utilizing rented lists for prospecting and in-house lists for delivering the message to the core audience. The critical consideration is establishing some criteria for purging the list of false leads and indicating pertinent information that helps define the quality of leads in the list.

Development of the direct mail piece. The following questions help develop direct mail pieces that communicate with and persuade recipients to attend the exhibition.

• What type of exhibition is this? (private vs. public)

• Who is hosting the exhibition? (name the organization)

• Who are the exhibition’s organizers, supporters, and sponsors? (name them and, typically, use their logo)

• When and where is it being held? (provide details about travel, parking, hotels, etc.)

• What exhibitors are expected at the exhibition? (some names may need explanation, i.e., categorize by type of product or business)

• What educational programs and other features will be offered during the exhibition? (provide agenda, speaker identification, and associated costs, if any)

• What are the costs to attend? (prices and available discounts, including estimated costs of travel, parking, accommodations, etc. if appropriate)


268


• How do I register? (process identification; include potential for refunds if needed)

• What are the benefits of attending the exhibition? (focus on why the recipient should attend)

• Are there specialty sessions for specific audiences? (focus on a multi-point journey for a target group of attendees)

Drawbacks to direct mail. Even with good contact information, direct mail historically yields a low response. Plus, it can be an extremely time-consuming venture and lists are often built with attention to quantity, rather than quality. Compiling a good list of potential attendees, especially new prospects, can be difficult and costly. Rushing through the database creation process can increase the likelihood of problems, increasing costs, and compromising effectiveness. Mailing timelines and production schedules must be followed precisely. Postal restrictions and requirements are important and observing these is necessary for timely delivery of the direct mail piece. Any promotional piece that arrives too late for the attendee to make a positive decision about attendance is wasted time and money for an exhibition organizer.

Email and WebSitesExhibitions are increasingly relying on email, websites, and digital advertising, and online registration and ticketing to promote the exhibition. Email marketing can be used in many ways, from managing attendee communication, to keeping in touch with registrants, and promoting advance registration.

When using email, exhibition organizers should resist the urge to email too often, since email overload is widespread. Lists should be purged of bounce back responses after each transmission so as to avoid sending to non-existent addresses. Also, many marketing experts believe that the best email campaigns are those that utilize only opt-in marketing; in other words, sending only to recipients who have agreed to receive information from the organization. Another option is opt-out marketing, where email is sent without permission, but allows the recipient to request that he/she be taken off the list. Often major Web retailers utilize opt-out etiquette.

Email marketing is both cost effective and measurable. When comparing the cost of email with direct mail and telemarketing, email is clearly less expensive. In addition, email messages are often very effective because they are so much easier to personalize for each recipient. By including information about the recipient’s buying preferences and other pertinent information, exhibition organizers can maximize their ROI. For a combination of these reasons, exhibition organizers are devoting a larger percentage of their budget to email use.

However, as more sophisticated spam and junk-mail blocking software is introduced into the market, many messages may be lost even when using an opt-in system. Exhibition marketers who work in tandem with exhibition organizers need to be aware of all legislation regarding email spamming and ensure compliance with the law’s provisions. In the United States, marketers should note the CAN-SPAM Act, which details penalties for violations of deceptive commercial

Response Rates to Websites and Email

OPEN RATE

19.47%CLICK-THROUGH RATE

6.64%CONVERSION RATE

1.73%BOUNCE-BACK RATE

3.72%UNSUBSCRIBE RATE

0.77%


269


email. If marketing to residents of the European Union, marketers must ensure they are General Data Protection Regulations (GDPR) compliant or they may face significant fines. It is important to understand the laws and regulations of those countries in which the exhibition will be held or marketed.

Because the exhibition website is an important attendee-marketing tool, exhibition organizers should concentrate on innovative methods to enhance website content. Conveying the marketing story of the exhibition will help only those interested in attending the exhibition, or who may still be undecided.

In addition to good content, both exhibitors and attendees must be able to navigate the exhibition website without spending much time or effort finding dates, times, locations, educational sessions, and a preview of the floor plan. Limiting the number of clicks through the website and designing the site with the user in mind, will make the exhibition website most effective for all target audiences. Outsourcing to Web design talent may be necessary to keep up with the latest in Web design technology and strategy.

Accepting online exhibition registrations, educational programming reservations or special event ticket orders for banquets or other optional entertainment events from the website is standard practice for most exhibitions. This option is cost-effective and convenient for attendees, exhibitors, and exhibition organizers. Incentives for potential exhibitors and attendees include early-bird registration fees, discount to register online, securing booth space, eligibility for prize drawings, and value-added content and advance information. Exhibition organizers are attracted to the timesaving features of instant confirmation, customized reporting, the elimination of manual data entry, and the ability to combine the registration and ticketing functions.

Social Media As technology evolves and global communication becomes easier and faster, social media has created an entirely new business environment that has affected the way people communicate. In the realm of exhibitions and events, attendees and exhibitors will provide their opinions, thoughts and feedback. Regardless of the outlet posts, may not always be positive, so the exhibition organizer must carefully consider how and when to respond to any negative chatter. In this social context, the audience seeks confirmation, validation and connection.

Social media practices can benefit exhibition organizers in a number of ways including extending their exhibition’s brand in the marketplace, access to online member/customer networks, ability to deliver real-time customer service, opportunity to offer collaborative educational programming, advertising, promotion and public relations, potential reduction in marketing and communication costs, and opportunities to implement sustainable event practices.

Social Media StrategyRefining a social media strategy requires planning and implementation. The following questions should be considered when developing a social media strategy.

Brand extension

BENEFITS OF SOCIAL MEDIA

Networking

Customer service

Education

Advertising

Promotion

Public relations

Cost reduction

Greening of event


270


1. Who in the organization will be responsible for implementing the social media strategy?

2. Who is the audience and does this audience use social media channels, and if so, which ones?

3. What are the specific platforms that will be used to carry out the social media strategy?

4. How will the organization monitor ongoing conversations on social media channels?

5. What types of content (blog posts, tweets, webcasts) will be developed?

6. What and who is the organization’s “voice” on social media channels?

7. How often should content be pushed through social media channels?

8. How should content be produced (in-house, outsourced)?

9. Who will post content on social networks (bloggers, tweeters)?

10. How will content be shared?

11. Who will respond to inquiries that arrive via social networks?

12. How will the organization address negative, positive, and neutral comments posted on social networks?

13. What types of advertising, public relations, and incentives will be broadcast over social channels?

14. How will social advertising and promotion be aligned with offline media such as print?

15. What internal resources (hardware, people, capital, and processes) will be required to implement a social media strategy?

16. What methodology and tools will be utilized for measuring return on investment and return on effort?

Content MarketingContent marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience – and, ultimately, to drive profitable customer action.

Through the emphasis of content marketing, a show’s life may be extended year-round with case studies and interviews from past attendees about the event.

REACHING A GLOBAL AUDIENCE

Exhibition organizers often research global markets using government sources to compile export statistics. Partnering with trade associations, international trade magazine publishers, government offices that promote trade in the region, and mailing list compilers and brokers may be the best approaches to accessing contact information for prospective exhibiting companies. The availability and quality of the lists may vary a great deal, and an exhibition organizer may need to seek the services of a company specializing in direct mail. Additionally, language, business practices, culture, and laws and regulations regarding direct mail differ between


271


countries and even within countries. Consult with a local expert to avoid an illegal or unethical act, and to avoid unnecessary delays in mail delivery.

Exhibition organizers should realize the importance of researching advertising opportunities overseas to reach a global audience by confirming the following information.

• Study the destination of the advertising message to determine what media is available; international media vary by country, and changes in ownership and audience can occur rapidly

• Determine exchange rates and contract specifics before signing. Contract obligations and negotiable items vary by country and culture

• When focusing on magazine advertising, ensure the publication is a trade magazine, not consumer-oriented

• In the ad focused on a regional audience, list the local representative to be contacted with questions or to register for the exhibition

• Use a reputable translation firm to ensure correct translations

U.S.-Based Exhibitions and EventsOne way to persuade global companies to exhibit is by demonstrating that the exhibition is much greater than the number of buyers attending. The opportunity to exhibit at a U.S. exhibition will allow relationships with U.S. distributors and manufacturers to be developed, while selling products or services to attendees and other exhibitors. Great potential exists to establish long-term partnerships or agent’s agreements with other vendors. Direct mail can be a cost-effective and targeted method of international marketing, garnering considerable attention by overseas companies. This process should be measurable, assuming the markets and customer types are coded and tracked.

International Exhibitions and EventsThe exhibition organizer should attempt to “dominate the dominant media.” Because production of a translated or bilingual ad can be costly, the exhibition organizer should research publications with the largest target audience. Since many international journals tend to be customer versus industry oriented, the organizer should also inquire about the demographics of the publication’s audience. Exhibition organizers should also strive for good placement – such as the inside or outside cover in a printed edition – and request at least three appearances in the publication to emphasize frequency. If possible, listing a local contact for the international reader can be beneficial to answer questions in the native language and in the country’s time zone.

SUMMARY

Depending on the audience and the key marketing messages, defining marketing strategies and tactics is essential to the successful campaign. Marketers must be very savvy and willing to learn and understand the tools and technologies available to reach potential customers, change behavior, and satisfy consumer expectations. Marketing strategies are a combination of the marketing mix (product, price, promotion and place) in juxtaposition with the selection of target


272


audiences. The promotion part of the marketing mix utilizes many tools, including face-to-face interaction, print media, broadcast media, and a variety of digital media. The tools utilized can reach a broad audience (e.g., consumer media) or a specific target audience (e.g., direct mail). All tools used for marketing purposes have their strengths and weaknesses, and the exhibition organizer needs to be aware of these to select the best media option for the situation.

KEY WORDS

7 Ps Marketing Mix

advertising

agent’s agreement

bounce-back (rate)

business intelligence



call-to-action

controlled media message

digital media

direct mail

four P’s (of marketing)

house list (for mailing)

marketing mix

marketing plan

media relations

opt-in

opt-out

place

price

product

promotion

prospect list (for mailing)

publicity

public relations (PR)

public service announcement (PSA)

response rate

social media

uncontrolled media message

video news release (VNR)

DISCUSSION QUESTIONS

1. Consider the marketing mix and discuss how a marketing campaign could be affected by the incomplete development of one or more of the four P’s.

2. Review the key marketing plan tactics and identify the benefits of each. What are the disadvantages of each tactic?

3. Explain how to integrate e-marketing and website marketing strategies to capitalize on cost savings, convenience and customization.

4. Discuss why it is important to consider the questions listed in the development of the social media marketing strategy.

5. Identify and discuss other social media considerations that are not listed.

6. How can an exhibition organizer maximize global attendee-reach when planning for an international exhibition?


273

CHAPTER

18

“We have done so much partnering, in one form or another, it is hard to find anything we do that we do not consider a partnership.” – Orin Smith, CEO of Starbucks, qtd. in Segil 238

SPONSORSHIP AND PROMOTIONAL OPPORTUNITIES

John GalantePresident

AE Ventures

LEARNER OUTCOMES


1. Discuss the forms of sponsorships and promotional opportunities associated with exhibitions and events

2. Create a structure to package and present opportunities for exhibiting companies to maximize participation and revenues

3. Evaluate the strength of sponsorships and promotional opportunities supporting the core mission of the exhibition and event, such as exhibit sales and attendance promotion


274

CHAPTER 18 Sponsorships and Promotional Opportunities

INTRODUCTION

Sponsorships and promotional opportunities are an increasingly important aspect of the marketing mix offered by exhibition organizers to exhibitors. Most every way an organizer mediates exhibitor-audience messages (outside of interaction within actual exhibit space) falls into the sponsorship and promotional opportunities category. Exhibition organizers typically make sponsorships and promotional opportunities available before, during, and after the exhibition/event. The opportunities range from simple physical form factors (such as banners and outside advertising at the exhibit hall), to thought-leadership sponsorships (such as whitepapers distributed from the show website), webinars, and affiliations with educational content.

Whatever the form factor, sponsorships and promotional opportunities represent a growing revenue opportunity that averages greater than 20 percent of all exhibitor revenues, and it is a critical means of helping exhibitors achieve targeted sales and marketing objectives. This chapter includes a comprehensive review of sponsorships and promotional opportunities, explains the value proposition for major categories of sponsorships and promotions, and identifies pricing, packaging, sales, and operational and service techniques that will assist exhibition organizers to maximize sales and exhibitor satisfaction.

SPONSORSHIP AND PROMOTIONAL OPPORTUNITIES

Several types of sponsorships and promotional opportunities exist and are based on exhibitor objectives or form factors of the deliverables. The major categories are explained in this section.

Product-Centric Promotions & SponsorshipsExhibition research has demonstrated the primary reason for attendance is to view new products. A new product launch is one of the chief objectives to participate in an exhibition. Thus, it makes sense for most exhibitions to provide a number of new product sponsorships and promotion opportunities (CEIR Changing Environment of Exhibitions Study, Highlighting the Power of the Exhibition Marketing Channel, 2016).

New Product Award Programs. Award programs are common at exhibitions. The exhibition organizer, a media or association ally serves as the award program producer. Exhibitors and sometimes non-exhibitors are invited to submit new product entries, often with the opportunity for recognition in multiple categories. Programs often require an entry fee and provide a baseline level of promotional exposure for entered products that provides value equivalent or better to the entry fee. As a result, participating companies are assured of receiving baseline value, with an upside of exposure and prestige if their products win category or overall program honors.

Adding to the impact of award ceremonies or tours, photo opportunities with judges or program chairs can increase the impact of the program. New product programs can be solid moneymakers for exhibition organizers. They provide the

Product spots on Websites

FORMS OF EXPOSURE

Print marketing materials

Email marketing efforts

Media sponsor print and online

publications

Physical materials (can be used to

highlight entered, finalist, or winning

products at exhibitors’ displays and are often part of the program)


275

Sponsorships and Promotional Opportunities CHAPTER 18

additional benefit of amplifying a key attendee benefit (i.e., new products) in the advance promotion effort and keep the event brand prominent post exhibition as award winners promote their honors in ads, publications and online.

Less involved product-centric sponsorships and promotional opportunities include:

• Product preview or showcase brochures and online messages where exhibitors can place product images and descriptions of the products being promoted

• Video-based versions of the same that can be hosted on the event website

• Push promotion with email communications

• Physical product showcase areas

• Product showcase spots affiliated with exhibitor listings in online directories

• Product launch related media events

• Physical product messaging promotion for a specific product including utilization of outdoor and indoor advertising, window and floor graphics, and the like

Each of these options can be positioned as pay-to-play opportunities. Many exhibition organizers choose to bundle some product-centric promotional opportunities with exhibit space. These options create a sense of strong, integrated marketing value.

Corporate Image/Branding SponsorshipsFor some exhibitors, building awareness or creating an image for the company itself is a critical objective for participation. The goals can be as simple as name identity or as complex as communicating key brand attributes of the company. Exhibition organizers should offer sponsorships and promotional opportunities that are in sync with this objective.

A common offering from exhibition organizers is high-level corporate sponsorships that include a substantial brand promotion component. For example, the organization may develop a program using categories named for precious metals, such as platinum, gold, and silver or gemstone categories like diamond. Typically, these sponsorship categories are limited to a handful of sponsors to ensure a level of exclusivity. The brand will “pop” and create a real mindshare advantage for the sponsor.

To operationalize categories, for example, a platinum sponsor might have a benefit package that includes the appearance of their company logo on the event’s website home page, the front cover of attendance promotion brochures and/or a show-entry unit-display graphic. Additionally, a special page on the event website, advertising in the exhibition/event directory, or mobile app may be other options to offer. When a tiered corporate sponsorship program is offered, the level of exposure can decrease as the sponsorship ladder steps down from platinum to gold or silver (see fig. 18.1.).


276


Figure 18.1. Sponsor Recognition (Source: Freeman Companies, United Fresh 2012)

Exhibitor goals often reach beyond simple name identification. For example, if the exhibitor wants to communicate the company is a value or innovation leader, the form factor of the sponsorship needs to enable a longer form of messaging. In this case, the elements of advertising space, website sponsor’s page, and physical graphics at the exhibition, enable more substantial presence than a simple logo exposure.

Projecting an image of social responsibility within the context of the exhibition is a common goal among exhibitors. The exhibition organizer can provide opportunities to address industry-specific causes or broader matters of philanthropy, social justice, or corporate responsibility as related to areas of environment and sustainability. Forging a partnership with exhibitors, the exhibition organizer can create fundraising runs, auctions, and service projects. An important aspect of this example is that it builds loyalty and good will with exhibitors and attendees with minimal profitability to the organization.

Thought Leadership SponsorshipsThought-leadership sponsorships entail longer-form messaging opportunities with a more-subtle approach. An exhibitor with thought leadership goals is working to position the company as a trusted, expert resource with the ultimate goal of serving customer needs in a manner that reaches beyond the sale of a specific product or service.

Offering exhibitors sponsorship of an educational program track, paid and non-paid speaking opportunities, Webinars, and streaming or downloadable education content are examples of thought leadership sponsorships. Exhibitors can also promote thought leadership within their exhibit space. The organizer might counsel exhibitors to bring in top customers to present case studies at their booth/stand versus the more typical company product presentation. Exhibition organizers can offer to capture case study type content at the booth/


277


Space alone is rarely the sole solution to the

exhibitor’s needs; utilizing sponsorship and promotion opportunities enhances the dissemination of the right message to the right audience, and produces the right results

Figure 18.2. Digital Sponsor Recognition (Source: Oscar & Associates)

stand by video or reporting and post on the event website for play to a larger audience in an online video gallery or as a white paper.

Digital Sponsorships and PromotionA growing area of opportunity for exhibition organizers is the realm of digital sponsorships, promotion and advertising. The Center for Exhibition Industry Research’s Digital + Exhibiting Marketing Insights 2010 study shows a strong desire among exhibitors to leverage the digital realm; the exhibition organizer needs to create innovative offers to fulfill this interest and need (see fig. 18.2.).

Website Advertising. Most organizations focus on email and Web marketing for their core promotions to attendees and exhibitors. The result is substantial website traffic, at least for a portion of the year. Many exhibition organizers have also taken the step of making their websites a year-round online destination through the hosting of industry directories and educational content in streaming and downloadable forms. Either way, the market specific website traffic generated by an event can be monetized by offering site sponsorships and advertising. Rates are variable based on the industry and traffic, as well as the type of advertising and sponsorship spots offered. The host must structure and integrate these options early in the selling and fulfillment cycle for maximum efficiency. Pricing options and integrating those options in the total packages available, considering the industry environment, is an effective strategy. The exhibition organizer must look to the form factors, audience size, and rates of industry-leading online media. Accordingly, the exhibition organizer should carefully consider the relative value to the audience. Numerous factors influence the pricing of sponsorship opportunities, the types and number of sponsorship opportunities, and accessibility to sponsorship opportunities.

Email Sponsorships and Promotions. Most organizers send frequent email messages for audience development, including promotions in newsletters and informational alerts. Organizers frequently attach exhibitor sponsorship and advertising to their email marketing programs and offer exhibitors discrete exposure in product showcase type emails in advance of an exhibition, during exhibition email alerts and newsletters, and post-exhibition wrap-up communications. Many organizers offer paid dedicated email blasts to exhibitors, with the organizer typically throttling message delivery to ensure limited email fatigue.

Mobile Marketing. Mobile apps are increasingly common for exhibitions. Apps house the exhibitor directory and conference schedule information and allow for sponsorships and advertising. Banner ads are a common sponsorship opportunity. Organizers are beginning to offer text message sponsorships.


278


Experiential SponsorshipsPhysical events are the ultimate experiential marketing canvas, enabling marketers to connect to their target audience through the five senses of sight, sound, touch, smell and taste. Organizers often work with exhibitors to create experiences that engage attendees and help deliver key messages and brand attributes. Additional sponsorships of food and drink, comfort stations, and extending the related sights, sounds, and smell elements help to project the brand beyond the booth/stand.

SUCCESSFUL SPONSORSHIP STRATEGIES

The effective selling of sponsorships and promotional opportunities is dependent on developing winning offers, creating solid sales collateral and promotion, solid sales processes, and knowledgeable, creative approaches by sales executives.

Elements of Promotion ProgramFour key elements are essential in developing an effective well-rounded plan: pricing, packaging, marketing and selling. Considering each of these building blocks will enhance collateral and promotion materials to present to potential sponsors.

Pricing. Core pricing is set on a sponsorship opportunity and that core pricing can be enhanced by added value options. For instance, as an incentive for early booking, the sponsor may receive a discount on the core price. If non-exhibitors want to participate, an additional surcharge for non-exhibiting companies could be added to the core price, which serves as an additional incentive for exhibitors to act on sponsorship opportunities. Repeat exhibitors may be given early access to select sponsorship opportunities, while non-exhibitors are given later access to the sponsorship opportunities. Months or just days may separate these access points. The successful exhibition organizer will consider the following dimensions when establishing core pricing:

• Cost of production – including both out of pocket and staff time allocation

• Audience reach – considering both quality/value and size of audience

• Exclusivity

• Cost and availability of alternative means of producing similar results

• Value of the sponsorship – the core mission of generating attendance and filling exhibit space

Packaging. Both an a la carte menu of offerings and package deals are advantageous. Bundling sponsorships and promotions into “precious metal” packages that confer tier levels of exposure and status are highly effective selling strategies. For example, bundle elements around an objective like new product promotion. Often package deals, especially those that confer status on the sponsor, with limited availability.

Marketing. A well-organized catalog or brochure presentation of options is essential. Visual illustrations of sponsorships by photo or even video clips add impact to the marketing strategies. Benefits should be highlighted in short-phrased bullets, in addition to a full description of the sponsorship features.

Pricing

ELEMENTS OF A PROMOTION

PROGRAM

Packaging

Marketing

Selling


279


Reach should be quantified wherever possible. Details of the implementation support that the organizer’s exhibitor-services team provides to the prospective sponsor are an important part of the promotion content. Including the names and logos of past sponsors is an effective strategy to stimulate competition and demonstrate additional value by promoting past customers.

Sponsorship opportunities need to be marketed early and often. The marketing message should be carefully crafted to include incentives for booking sponsorships during the rebook process. The exhibitor should receive promotional messaging over the course of the year with special emphasis on the period of time between four and 14 weeks prior to the exhibition, during which time many exhibitors solidify exhibit plans and begin considering strategies to achieve competitive advantages. This is the key time to sell sponsorships and promotional opportunities. However, exhibitor timing may vary, so the exhibition organizer should know the audience well, and send promotional materials on a schedule that reaches potential sponsors at a time that is optimal to positive decision-making for their marketing objectives.

Selling. Sponsorships should be sold as exhibit space is being sold. The best exhibition/event sales people will consult with their prospects and customers to learn how their participation in the exhibition fits into a larger set of sales and marketing goals. Space alone is rarely the sole solution to the exhibitor’s needs; utilizing sponsorships and promotional opportunities enhances the dissemination of the right message to the right audience and produces the right results. The key to achieving this level of engagement is through building personal rapport and frequent interaction, while understanding the goals and plans for the exhibition/event. Sales people are most successful in selling sponsorships and promotional opportunities when they have a solid understanding of the client and their work and the necessary support exhibitor services and operations can provide the customer during implementation.

Post-sponsorship reports and metrics are a strong selling strategy for renewals. Additionally, create an effective resource dedicated to selling smaller-ticket sponsorships on an after-market basis, especially when the exhibit sales team is occupied with selling new customers during the peak season 14 to four weeks out.

Operations and Customer ServiceStrong plans and procedures for executing sponsorships and promotional elements are key to sponsor satisfaction. Personable, detail-oriented staff dedicated to follow-through, and task completion are necessary along with fundamentals like the following.

Contracts. All sponsorships and promotional opportunities should be codified in a contractual agreement, complete with payment terms and cancellation fees. A single contract can be used for both space and sponsorships/promotional opportunities.

Capturing/Confirming Deliverables. A contract addendum or post-contracting document should state and confirm all of the deliverables and the required inputs from the sponsor, along with a timeline. For more extensive


280


sponsorships, a timeline of teleconferences to review the implementation process may be required.

Touch Points. Specific touch points and timelines for sponsorship implementation on-site should be clearly delineated in written correspondence in advance and tracked on-site. A post-exhibition report recapping implementation steps and reporting on results helps to solidify customer satisfaction and set-up renewals.

Collateral Benefits of Sponsorships and Promotional OpportunitiesIn addition to being a great source of revenue and a key to achieving goals, sponsorships and promotional opportunities serve the core exhibition missions of generating attendance and exhibitor sales. For most exhibitions, the top driver for attendees is connecting with exhibitors on new products and programs. Most sponsorships and promotional opportunities bring that benefit to life and deliver the message in concrete, believable ways.

The bellwether approach to exhibitor sales is also well known. Bellwethers are the market’s leading companies. Organizers focus on category leaders for initial exhibit sales to get the follower companies in the category aboard subsequently. Sponsorships amplify the bellwether effect by prominently promoting leading companies and thereby driving follower company sales.

Sponsorships, Promotions, and Content MarketingContent marketing is one of the most important strategies in business-to-business (B2B) marketing. Content marketing is all about engagement by delivering high-quality, relevant, and valuable information to prospects and customers that drive profitable consumer action. Most exhibitors view an exhibition/event in terms of content generation opportunities – they present their most substantive product and company information at their booths and other forums. They connect with their best customers and draw success stories out of them, as the best and brightest people in the industry are on hand.

Organizers can take advantage of content marketing by offering exhibitors ways to capture and play the content created for and at events. Collateral video and whitepapers can be generated from exhibitor content and distributed by website or other online media operated by the organizer. This becomes a revenue opportunity and also another way to tell a compelling story about the value of the exhibition/event to prospective attendees.

SUMMARY

Sponsorships and promotional opportunities packaged with exhibit space command an increasing share of overall exhibition revenues and are keys to exhibitor satisfaction, as well as attendee and exhibitor marketing. This chapter provides a blueprint to offers and key implementation tactics.


281


KEY WORDS

bellwether effect

content marketing

contract addendum

digital sponsorship

email fatigue

new product program

pay-to-play opportunity

post-contract(ing) document

push promotion

thought-leadership sponsorship

touch point

value proposition

DISCUSSION QUESTIONS1. Exhibition organizers develop sponsorships and promotional opportunities

to offer to exhibitors. How can the exhibition organizer create attractive packages and opportunities to attract exhibitor participation?

2. Discuss the facts impacting the pricing of sponsorships and promotional opportunities.

3. Describe the techniques utilized by exhibition organizers to maximize sales.


283

CHAPTER

19

“You don’t close a sale, you open a relationship – if you want to build a long-term, successful enterprise.” – Patricia Fripp

BOOTH/STAND SALES

Tom Cindric, CEMSenior Vice President, Informa, Global Exhibitions, Infrastructure Events

Informa Exhibitions

B. Murphy, CEMNational Sales Manager

Fern



LEARNER OUTCOMES


1. Identify the key steps in the sales cycle

2. Describe the exhibition sales process

3. Explain the importance of relationship selling in the sales process

4. Identify different pricing strategies

5. Explain how telemarketing is utilized

6. Develop an international sales strategy

7. Explain the importance of providing exhibitors with measurable ROI


284

CHAPTER 19 Booth/Stand Sales

INTRODUCTION

With exhibitions, a common question takes on a twist: “Which came first, the attendee or the exhibitor?” Without attendees, there are no exhibitors and without exhibitors there are no attendees.

The answer to this question is probably not important since one cannot exist without the other. What is important is the process of selling exhibit space to ensure that plenty of exhibits are available for the optimal attendee experience.

THE SALES PROCESS

Sales management involves planning, implementation, and control of a large, organized sales effort. The first priority in managing sales is to detail where, how and at what cost sales must be made in order to meet the organization’s exhibit sales goals. In order to measure sales success, revenue goals and objectives must be clearly outlined in the sales plan and incorporated into the overall marketing plan for the exhibition.

A typical sales plan includes a strengths, weaknesses, opportunities, and threats (SWOT) analysis of the event, exhibitor growth strategies, sales incentive ideas, net square feet/meter (NSF/ NSM) and revenue targets/goals, new exhibitor initiatives, retention strategies, pricing incentives, and value-added programs.

Most organizations employ inside sales personnel who spend most of their time in the office selling via email and the telephone. Most companies use some kind of customer relationship management (CRM) system to manage the sales process and keep records of their conversations, show history and other data.

Some organizations engage the services of outside sales personnel who travel to face-to-face meetings, which can be a more expensive and time-consuming method of direct sales. However, this personal selling can be a focused, effective approach to contacting potential and returning exhibitors.

Ultimately, customers crave a personal, continuing relationship with organizations with which they do business. The exhibition’s sales force must recognize the power of this medium. A combination of inside and outside sales seems to be the best way to approach the sales process. A great way to foster personal relationships is to provide inside sales personnel the opportunity to visit customers in their offices or at other trade exhibitions.

THE ELEMENTS OF THE SALES CYCLE

The sales cycle can be different from one exhibition to another, based on the exhibition’s products or industry of each. Figure 19.1 outlines specific steps that are common when selling booth/stand space to potential exhibitors.

Inside sales

SALES PROCESS

Direct sales

Personal selling


285

Booth/Stand Sales CHAPTER 19

ProspectingQualifyingProspects

PresentationHandling

ObjectionsClosing Follow-up

Figure 19.1. The Sales Cycle

ProspectingThe purpose of prospecting is to identify potential exhibitors from referrals, industry publications, the internet, direct mail programs, telemarketing lists, and other tactics. The prospector must identify the key contact who makes decisions on exhibitions; this contact can range from the marketing person, to a product manager, to the president of a company. Key contact acquisition is a time-consuming process because it can be a challenge to find the key decision maker and then get their contact information.

Qualifying ProspectsIn the qualifying prospects phase of the sales cycle, the task is to research the prospect’s background and identify the potential needs of the particular prospect. Some exhibition organizers have sales research coordinators whose job is to find leads, identify potential need, and pass this information along, but usually this work is up to the individual salesperson. The salesperson or sales research coordinator will identify a potential need by looking at the type of business, whether any new products have been launched recently, and participation in similar events. Once the potential needs are identified, the salesperson can focus on the exhibition’s benefits and those that best match the prospect’s needs when preparing the presentation for this potential exhibitor.

To really understand a prospect’s needs, the salesperson must engage in a discussion either via phone or email with that prospect about the exhibition and the prospect’s expectations. During the process of qualifying a prospect, it may become apparent that the exhibitor is not a good match for a variety of reasons. For instance, an exhibitor’s products or services may not be a good fit for the exhibition. Adequate preparation for a sales call or introductory email helps to ensure a more productive discussion. If a sales research coordinator is utilized, that person and the sales representative work together to develop the sales presentation.

PresentationThe sales person should establish rapport with the prospect that helps build trust, determines needs, illustrates benefits through specific examples, and explains and translates the features of the exhibition during the presentation phase. Presentations typically take place over the phone or via an internet platform so the salesperson must provide quality and accurate information. A follow-up email communication should be provided to the prospect outlining the specifics of what was presented and discussed. It is important to get information in front of the customer in multiple formats. Face-to-face sales presentations are also possible and require detailed preparation which can include handouts and PowerPoint presentations. Since face-to-face sales, usually at the prospect’s place of business, is time consuming when travel time is added into the calculation it tends to equate to fewer calls being made by the salesperson. In most cases, this would be both time and cost prohibitive, so sales calls via phone are most common.


286


Handling ObjectionsOnce the presentation has been made, the prospect generally asks questions. The salesperson must overcome sales resistance or unwillingness to make a decision by providing additional information and addressing specific concerns during this handling objections phase. The effective salesperson will meet objections head on by knowing the common and unique objections regarding the event. Effective sales strategy includes communicating the unique selling proposition (USP) and quoting statistical information on the value of exhibitions/events in general and this one in particular, as well as specifically explaining the demographics of the exhibition’s buyers (attendees). The USP is what differentiates the exhibition from others in the marketplace. It is why a specific exhibition/event is, in many cases, one of a kind or the best solution for a potential exhibitor’s needs. The Center for Exhibition Industry Research (CEIR) has important information that should be in the hands of every salesperson. This information consists of general benefits and statistics about exhibitions, based on quantitative research. The credibility of this information is important when used to promote a specific exhibition to a prospective exhibitor.

ClosingThe object of the sales call is to obtain a commitment by asking for the order or getting to yes. Once the prospect has been identified and their need(s) identified, the salesperson will provide solutions and handle any objections. When those processes are completed, the sales representative should have a good understanding of whether a commitment is forthcoming. At this point, the salesperson must ask for a commitment; this is called the closing. When a negative response is given, it may be necessary to return to the beginning of the sales process or to effectively handle voiced objections.

Follow UpIt’s important to continue to foster the relationship with the client. Keep the exhibitor informed by confirming satisfaction, informing them of new services or changes, handling complaints, and selling or cross-selling additional services (e.g., sponsorship/marketing or advertising opportunities that meet their objectives). The sales representative should always remember to thank the customer for the business and the commitment made to the exhibition.

EXHIBITION SALES PROCESSES

The processes utilized for exhibition sales can vary, based on many factors, including industry, time of year and location. To further explain, common practices regarding the exhibition sales process are as follows.

On-site/Advance/Re-Sign/Rebook Sales Sometimes exhibition organizers offer future booths/stands for sale during the current exhibition. When this strategy is used, the organizer often has specific staff assigned to handle the process. Depending on the size of the exhibition, separate individuals may handle each of these tasks, or the exhibition manager or an assistant may handle all of the tasks.

Sales representatiives will have an easier time keeping a

customer than finding a new one


287


The advance/on-site process may include the housing company that concurrently takes requests for a future block of hotel rooms, but usually only for large shows.

Staffing this on-site sales process may include personnel from other departments; for most exhibitions, a dedicated sales staff, working to sell booth/stand space year-round, will handle the process, with some administrative support. Exhibitions that are in high demand often schedule specific appointments for exhibitors on a seniority or other priority basis. In this case, an exhibitor is obligated to appear at the appointed time to select the following year’s space, or that exhibitor will fall to the bottom of the priority list. Other exhibitions simply make the following year’s floor plan available by posting it in places such as the exhibition management office or exhibitor lounge. Interested exhibitors come to the exhibition organizer with questions or submit applications for future booth/stand space.

On-site Sales/Rebook Office More and more exhibitions that have a formal on-site resign/rebook at the show conduct the process in a sales/rebook office that is typically located on or near the show floor. This sales/rebook office could be inside a room at the convention center or built on the show floor by the contractor. Some organizers have large floor plans on display for exhibitors to view and make their selections while others use computers and other technology to do everything from printing and scanning contracts to collecting deposits. Exhibit floor sales/rebook offices are a great place to host your exhibitors during the on-site process and throughout the show by providing them with a comfortable place to sit (i.e., couches, sofas), refreshments, complimentary Wi-Fi, and charging stations.

Space-Draw Sales ProcessSome exhibition organizers conduct a space-draw process where exhibitors select booths/stands based on priority-point criteria. This strategy generally occurs three to four months after the conclusion of the current exhibition. The sales staff will notify exhibitors to submit a contract, with booth/stand choices and deposit, by a specified date, for inclusion in the space-draw process.

The floor plans are made available in advance for exhibitors to view and make booth/stand selections, which is generally through an online platform. Booth/stand assignments secured on-site are usually highlighted in some manner. Exhibition organizers expect to assign a significant amount of the booth/stand space during the space-draw process. However, during economic challenges, this is not always the case. Before and during the process, sales personnel should be in contact with all eligible exhibitors.

Post-Draw Sales ProcessThe most challenging sales period in exhibit space sales occurs in the post-draw process. These sales come from new exhibitors and previous exhibitors that did not secure space on-site or during the space draw; this space is typically assigned on a first-come, first-served basis. The post-draw process usually lasts about eight to nine months and generates the remaining 30 to 35 percent of booth/stand space, with sales personnel contacting prospects and previous exhibitors until all of the space is sold.

On-site/advance sales

EXHIBITION SALES PROCESS

Space-draw sales

Post-draw sales


288


RELATIONSHIP SELLING

Relationship selling is about building a personal relationship with potential and current exhibitors to better understand their needs and desires. If exhibitors feel a salesperson is sincere and concerned for their business, a level of trust is built. Those exhibitors will be customers for a long time. Relationship selling is about creating win-win solutions.

The effective salesperson will help exhibitors understand the value of pre- and post-exhibition sponsorship, marketing and advertising opportunities in addition to committing to booth/stand space. Some exhibitions have dedicated salespeople who sell nothing but sponsorships. Exploring and highlighting the value of pre-show and on-site sponsorships will help the potential exhibitor see the value of increased exposure to attendees. This increased exposure may assist in reaching the exhibitor’s objectives, while improving Return on Investment (ROI). Many exhibition organizers provide exhibitors with opportunities to promote their presence to attendees, prior to the opening of the exhibition, through advertisements in trade publications, promotion and on-site materials, online opportunities through the event’s website, and sponsoring education and awards programs. Additional opportunities for attendee contact are available during the post-exhibition period through lead follow-up programs.

Exhibitor Communication Touch Points

EXHIBITOR 1: “Have you heard from your sales rep?”EXHIBITOR 2: “They only call me when they want money.”

Regular communication with exhibitors is the best way to avoid this type of conversation. Once the sale is made, the successful exhibition organizer regularly updates exhibitors with important information about the exhibition/event, and goes beyond providing deadline dates for contracts and payments. Sales personnel can benefit and strengthen the exhibitor relationship with periodic updates regarding the exhibitor service manual (ESM) and program guide information, deadlines, sponsorship and marketing program information, educational opportunities, and general information about current affairs within the industry.

For example, a monthly newsletter or personalized email program from the sales team achieves a communication goal. Including sales team photos on the website or on personalized email headers helps connect the team with the exhibitors.

Personal Sales Calls or VisitsWhile most of a sales team’s interaction with customers can be via telemarketing, the team should take advantage of opportunities to personally visit customers. Visiting an exhibitor’s place of business is a good way to strengthen the sales relationship. Touring their facility and visiting with important team members, from their sales teams to accounting personnel, makes a strong statement to the exhibitor. These exhibitors typically understand the commitment in time and expenses that have been made by the sales team when personal visits are made (see fig. 19.2.).


289


COST EFFECTIVENESS OF EXHIBITION PARTICIPATION

A study released by the Center for Exhibition Industry Research (CEIR), The Changing Environment of Exhibitions, Exhibitions Deliver Unique Value Not Provided by Other Marketing Channels, 2016, revealed that 97 percent of exhibitor respondents indicated exhibitions provide unique value.

Figure 19.2. Unique Value Proposition of Exhibitions Not Fulfilled by Other Marketing Sales Channels (Source: Center for Exhibition Industry Research, The Changing Environment of Exhibitions, Exhibitions Deliver Unique Value Not Provided by Other Marketing Channels, 2016)

Social interaction with exhibitors is a great way to advance the professional relationship and to get the potential exhibitor out of their normal business environment. Organizing exhibitor events or social activities, such as a baseball game or golf outing, are great ways to foster those important relationships with customers and potential customers. Many associations do this on a regular basis, sometimes right before the exhibition and sometimes in a different city and time of year. Staying connected through business-to-business social media also helps keep the salesperson stay connected with clients.

TIP


290


Sale Management SystemsProper communication tools enhance communication with customers. Many organizations use a customer relationship management (CRM) system. These tools provide assistance in managing an organization’s interaction with customers and prospects. The tracking of conversations between sales personnel and customers is documented, as well as the amount of customer spending with the organization, the booth/stand size for previous exhibitions, and other important information. Many of these systems include lead-generation tools to assist with qualifying leads.

In addition to CRM tools, many organizations utilize commercial software programs as floor plan management tools to assist in assigning booth spaces.

ELEMENTS IMPACTING EXHIBIT SPACE PRICING

Many factors should be considered when pricing exhibit space. For example, the exhibition organizer will consider the market value of the exhibition, competitors’ exhibition rates, size of exhibition, exhibition history, success of exhibition, and overall economic conditions. In addition, knowing what the market will bear is an important consideration in pricing. A price that is beyond the budget of potential exhibitors could mean the difference between making sales goals or falling short of those goals.

IncentivesOne sales strategy to secure space within set pricing structures is to include incentives. Many organizers provide exhibitors with lower rates when assigning space on-site or in advance of the exhibition, for instance. Space booked for the future after the current exhibition may be at a higher rate. The sales manager will also consider offering expansion space savings or discounts when an exhibitor increases the booth/stand space over the prior year’s reservation.

Tiered PricingSome exhibitions provide tiered pricing based on the amount of space secured. The more space secured reduces the overall NSF/NSM cost. Typically, the goal of tiered pricing is designed to advance exhibitors to the next level while taking advantage of the savings. This is how country pavilions are typically sold. Another example is at a national tourism exhibition, the exhibition organizer might offer a special price for reserving an entire row or both sides of an aisle. In the agreement, the organization purchases the space and re-sells individual booth/stand space to individual tourism organizations or local destination marketing organizations. This way, the individual organizations get a lower rate, based on volume, and the regional tourism organization can promote the entire region as a tourist destination (the whole aisle could be decorated in a common theme). The sales manager benefits by selling a large section of the exhibition floor to one customer, instead of selling each individual booth/stand.

Alternate Booth/Stand LocationsSome exhibitions provide different pricing structures for lobby or outdoor booths/stands. Lobby booths/stands typically have exhibiting restrictions and


291


are usually good for associations and/or trade booths/stands with magazines. Outdoor booths/stands are very popular because the cost is usually lower and they offer greater flexibility regarding booth/stand displays and demonstrations. For example, the size and weight of an exhibitor’s machinery might be cost prohibitive because of material handling rates or the operation/demonstration of an exhibitor’s equipment and tools may not be permitted indoors.

First-Time ExhibitorsAnother strategy is to include cost savings for first-time exhibitors in the pricing structure. For example, some organizers create a first-timer’s booth/stand pavilion or other creative alternatives (see fig. 19.3.).

Figure 19.3. An Outdoor Exhibition (Source: Informa Exhibitions)

Variable PricingSome organizers have implemented variable pricing where the price varies based on the location of the booth/stand selected. With variable pricing, booth/stands near entrances and/or on main aisles of the show floor cost more than those toward the rear of the hall.

PRIORITY-POINT SYSTEMS

Most exhibition organizers have developed a priority-point system that is used as a guideline for assigning space. Most point systems reward exhibitors with points for participation. These systems can be as simple as receiving one (1) point per year of participation, to complicated formulas that take into consideration consecutive years of participation, booth/stand size, sponsorships purchased, and advertising in the organization’s publications. If space is limited and demand high, the priority-point system can determine which exhibitors actually get booth/stand space at the exhibition. If, on the other hand, the demand is for premium locations at the exhibition, they could be allocated based on a priority point system. Locations that face attendees as they enter


292


the exhibit hall, corner spaces, or space immediately adjacent to an attractive location (e.g., right across from a food station), could be worth paying premium fees (variable pricing model) to the experienced exhibitor. These priority-point systems should be transparent and communicated clearly to all exhibitors, including first-time exhibitors

TELEMARKETING

Telemarketing, although less personal than the inside sales approach, is a personalized mass marketing medium and is used by many exhibitions in their marketing campaigns. As a campaign strategy, telemarketing has positive and negative repercussions. Telemarketing can be very effective. Notably, a telemarketing campaign can be started and stopped very quickly based on its effectiveness in the marketplace.

On the other hand, a telemarketing effort’s costs are high compared to direct mail and other forms of advertising. Detailed below are several ideas to consider before dedicating resources to an extensive telemarketing campaign.

Goal of TelemarketingExhibit space sales may or may not be an appropriate goal of telemarketing. Telemarketing could be used for prospecting purposes, for setting appointments for a sales presentation meeting, or for follow-up contact. Typically, exhibitors are solicited by a sales team member using email, telemarketing, sometimes direct mail and occasional face-to-face visits. Face-to-face visits may occur on-site (in the case of on-site/advance sales), at another industry exhibition or meeting, or at the potential customer’s place of business. Another advantage to telemarketing is the timing of it, since the call can take place whenever the potential customer is available to talk on the phone, even after normal business hours.

Telemarketer QualificationsExperienced, qualified individuals or companies who are trained and familiar with the exhibition/event, the offer, the attendees, and the industry should handle telemarketing. This is not a task for part-time employees or students. Sales managers often work with a service bureau, with trained personnel using a formal script to execute this strategy.

Combined ApproachTelemarketing works best in combination with direct mail. Timing is critical. Calling prospects following a direct mail campaign can help reinforce the original contact. This is especially important in terms of exhibit sales. Telemarketing is also useful to follow up on personal visits. From an ROI perspective, recent research by the Data and Marketing Association (DMA) finds that direct mail has the third highest ROI. Email led with 122 percent, followed by social media at 28 percent, direct mail at 27 percent, paid search at 25 percent and online display18 percent. Thus, integrating the digital component along with telemarketing and direct mail may yield even greater results (Data and Marketing Association. 2016 DMA Response Rate Report. Washington, D.C.: DMA, 2016. Print.).


293


Reporting RequirementsSales managers expect and demand cumulative reporting of results throughout the telemarketing campaign. For example, hours spent, contacts made, incorrect information, sales completed, refusals, and potential leads are recorded by each caller for each call. Checking this information on a regular basis during the campaign helps the sales manager determine the need for personnel, the effectiveness of the sales message, and results from other forms of marketing; if the calls ask pertinent information about other promotional activities, such as “Did you receive our brochure?”

Follow-UpFollow-up to a marketing campaign is necessary for success. Lack of attention to follow-up may result in missed potential sales. An interested customer should be contacted within 24 hours of the initial contact (whether this is by phone, in person, or by other advertising means). This requires excellent communication between the prospecting staff and sales staff, as well as excellent communication between sales and advertising personnel.

APPROACH TO INTERNATIONAL SALES

Many exhibition organizers should have an international sales strategy to globalize their exhibitions and take advantage of the many new products and services being offered by companies from all over the world.

Agents are often used by exhibition organizers to sell exhibit space to international exhibitors and they are generally compensated through a booth/stand commission. Some organizers will extend an exclusive contract to the agent for sales in a particular region (for example, Europe) or a particular country (such as Italy). Other organizers prefer to hire many agents in a region in order to obtain better coverage. For example, in China, an agent may be hired who oversees the whole country and contracts sub-agents covering Shanghai, while another sub-agent covers Beijing.

Creating international pavilions is a common way to attract international exhibitors. These pavilions usually provide exhibitors a customized hardwall booth/stand package standard in most countries around the world. Larger pavilions will have lounge areas, translators, and provide other services.

Participating in foreign exhibitions is another opportunity to gain international exposure. Many organizers secure booth/stand space in industry events outside of their own countries, often trading booth/stand space with other organizers. These barter arrangements provide each organizer with a fully furnished booth/stand to showcase each other’s exhibitions/events. This is another form of marketing and getting an event in front of foreign exhibitors. With this promotion opportunity, the sales manager should consider distributing brochures and other collateral pieces that are translated into key languages. International agents can also use the materials.


294


A web page for international exhibitors to communicate important information on shipping, booth/stand construction, visas, translation services, local restaurants, and other topics of interest can help them be better prepared for the event.

CUSTOMER RETURN ON INVESTMENT

In times of economic uncertainty, the way that exhibitors evaluate results from exhibitions/events may be impacted. Organizers can no longer rely on just attendance numbers. Exhibitors require qualified leads and sponsorships that provide value.

Lead GenerationMany organizers offer matchmaking products that allow attendees and exhibitors to schedule appointments with each other. These online services capture the product demographics of registering attendees and then match them with exhibitors who offer products of interest. In most cases, attendees are provided lists of these exhibitors and the ability to set-up appointments via email or texting during the exhibition. Some exhibition organizers also permit the exhibitors to make appointments in advance of the exhibition/event with attendees who are matched to their product offerings.

Lead Capture TechnologyMany methods exist for exhibitors to capture leads at an exhibition. Most exhibitors prefer to utilize the lead-retrieval systems offered by the exhibition organizer. These systems capture the attendees’ badge identification (ID) when they walk into an exhibitor’s booth/stand. Typically, the attendee’s badge is scanned via a barcode or the badge contains a strip that is read by radio frequency identification (RFID) or Near-Field Communication (NFC). The lead retrieval devices are usually provided for a rental fee from the exhibition organizer’s registration company. Smart phones and tablets have given exhibitors even more flexibility in capturing leads. In addition, many lead retrieval systems allow the exhibitor to use their own lead-capture devices.

Lead Engagement TechnologyA new technology to watch is wearable solutions. Lead engagement technology uses proximity sensors strategically placed on the show floor, in exhibit booths and throughout the venue. Wearable beacons are attached to attendees’ lanyards or badges. The technology has the potential for providing exhibitors, organizers and attendees with real-time analytics for actionable insights from the data that is being gathered on behaviors occurring during the event. Exhibitors with sensors in their booths are able to receive proximity alerts when visitors who match a predefined set of criteria approach their booth and the attendee’s profile information is immediately made available. Exhibitors may get updates on booth and aisle traffic during and post-event to help with developing strategy for the next event.

Exhibitor EducationOrganizers can assist with improving an exhibitor’s exhibiting experience and ROI by providing them with exhibitor education via webinars or on-demand in the months leading up to the event. There are many professional trade show


295


experts that organizers can hire to conduct webinars or seminars on a variety of topics that may be important to the exhibitors for the event. Sample topics can range from improving impact, performance and results for exhibitors, building brand visibility and driving qualified booth traffic and improving trade show lead management. These webinars can provide exhibitors with a tool box for exhibiting by providing tips on managing costs, booth/stand staffing, product signage and messaging as well as pre-show and post-show marketing ideas like renting pre-registration lists, qualifying leads using lead retrieval systems and managing leads. Some organizers provide an exhibitor tool box tab/page on their websites that highlight tips and useful information, list the schedule of upcoming webinars and have links to on-demand content.

SUMMARY

An organized sales effort with goals and objectives is a critical component of the sales process. The sales strategies implemented should be incorporated into the exhibition’s marketing plan with careful deliberation and goal setting. Exhibition organizers must be knowledgeable, creative, and have sales processes in place to be successful. They must be proficient with the steps in the sales cycle and should implement the strategies to sell booth/stand space at appropriate times, using appropriate strategies and follow-up techniques. Exhibition organizers must build strong customer relations and maintain excellent communication with exhibitors and potential exhibitors, which requires technology and other tools.

Exhibition organizers should provide exhibitors with measurable ROI through unique programs and sponsorships, and use the necessary tools to capture leads and prospects. While the question, “Which came first, the exhibitor or the attendee?” will never be solved, exhibition organizers and their marketing personnel agree that both are important and the implemented sales processes and strategies are the keys to filling an exhibition with booths/stands that prove to be attractive to the attendees.


296


KEY WORDS

advance/on-site process

closing

cross-selling

customer relationship management (CRM)

direct sales

exhibition sales process

exhibitor education

exhibitor service manual (ESM)

floor plan management tool

handling objections

inside sales

lead engagement technology

lead-retrieval system

near-field communication (NFC)

personal selling

post-draw process

presentation

priority-point criteria

priority-point system

prospecting

qualifying prospects

radio frequency identification (RFID)

relationship selling


sales cycle

sales management

space-draw process

telemarketing

tiered pricing

unique selling proposition (USP)

wearable solutions

DISCUSSION QUESTIONS1. Who is the organizer’s customer – exhibitors or attendees?

2. How do you feel when a sales person you know calls you?

3. How is a sales call different from a telemarketing call?

4. If you had to sell someone something, would you prefer to do it over the phone or face-to-face? Why?

5. How important do you think ROI has become for exhibitors? How important is ROI for the attendees?

6. Why is an international sales strategy important?


297

SECTION

5EXHIBITION OPERATIONS

CHAPTER 20Housing and Registration

CHAPTER 21On-site Operations

This section focuses on interrelated operational areas of exhibition management. Exhibition housing and registration are connected to booth/stand sales from both a financial and accommodation perspective. Finally, in this section, on-site operations deal with the needs of all attendees, from staff for the exhibition host and facility, to exhibitors, suppliers, and other participants. The effectiveness of planning and efficiencies in operational management significantly contribute to stakeholder satisfaction and positive outcomes. This section also looks at the many individuals and organizations with specialized expertise that turn exhibition planning into reality. Each of the chapters identifies and explains a variety of different services and contractors needed to complete the exhibition organizer’s team. While these supplier/partners are in one area of this book, each service is selected, engaged, and integrated at different points and to varying degrees throughout the planning process.

CHAPTER 22Official and Specialty Service Contractors

CHAPTER 23Exhibition Technology

CHAPTER 24Audiovisual Systems on the Exhibition Floor

CHAPTER 25Food and Beverage

CHAPTER 26Shipping Exhibition Materials

CHAPTER 27Transportation


299

CHAPTER

20

“All business proceeds on beliefs or judgments of probabilities and not on certainties.” – William Hewlett


Susan L. Bennett, CASE, CEMVice President of Strategic Account Management


Kathy Rasmussen, CMPDirector of Housing, Client Services


LEARNER OUTCOMES


1. Analyze the housing needs and booking habits of exhibitors

2. Explain the relationship between exhibit space and hotel blocks

3. Demonstrate knowledge of the exhibitor’s financial and contractual commitments in order to secure room blocks

4. Create and manage an effective exhibitor registration and housing process

5. Design an efficient on-site exhibitor registration area

6. Identify technology methods for exhibitors to gather sales leads


300

CHAPTER 20 Housing and Registration

INTRODUCTION

Exhibitors have different housing and registration needs, expectations, and habits than attendees. The focus of this chapter is on the management of exhibitor housing (Part 1) and registration (Part 2) and the impact exhibitor decisions have on the host organization.

PART 1. EXHIBITOR HOUSING

ANALYZE THE HOUSING NEEDS AND BOOKING HABITS OF EXHIBITORS

Exhibitor participation can significantly impact the performance of the room block; therefore, policies affecting exhibitor blocks are often related to other aspects of an event.

Exhibitor housing needs, quantity, type and location, and requirement to use house booth/stand personnel, can vary by event. The following booking habits may vary as well: the maker of the reservations, the accuracy of initial investments, and the timeliness of finalizing the block. However, commonalities exist across events. This variety affects the process needed to create and control exhibitor blocks to achieve the best outcome, which is usually defined as meeting the needs and expectations of exhibitors, while providing the highest pick-up within the room block.

To begin the exhibitor housing process, exhibitor needs must be determined. The results of a review of booking habits might impact what may or may not work. In this section, a variety of methods to analyze the commonalities of exhibitor needs and booking habits are explored.

An analysis of the previous booking history can provide insight into future needs. Different types of historical data can be evaluated to provide information necessary for the development of the housing process. However, discretion must be applied to the analysis of the data collected, as booking needs and habits do change.

Size of Requested Room Block A review of an exhibition’s history should include both the size of the room block and the pattern of days. To accommodate set-up and teardown crews, determine the required number of rooms that will be needed for all the booth/stand personnel, including dates before, during, and after the exhibition.

Actualized Room Block An actualized room block is the result when comparing the number of rooms occupied versus the number initially requested. To avoid fluctuations in room inventory and a possible reduction of inventory within the room block wash later in the cycle, room block size should be directly related to historical performance. Allowing exhibitors to book as many rooms as requested in the initial request may result in last minute cancellations. Exhibiting companies often book more rooms than needed and later cancel unneeded rooms. Solutions to this dilemma


301

Housing and Registration CHAPTER 20

would be to limit the size of the room block based on historical data or allow a percentage increase over the previous year’s pick-up.

Additional analysis of the actualized room block should include the number and time frame of cancellations throughout the booking process. During the review process, consider significant timeline dates. For example, was there a non-refundable penalty that forced cancellations or was there a posted deadline? Exhibitors typically estimate the number of rooms required without specific names of personnel, particularly among their booth/stand personnel. Later, names are identified. Common practice is to set a deadline for submission of the housing list. However, exhibitors will often provide fake names in order to hold rooms if this date is set too early in the process. Setting a deadline date that will allow the exhibitors time to get as many real names as possible or at least to be able to confirm their final block is one of the timeline dates that needs to be considered carefully. Having the right dates for this process will reduce the amount of wash that will occur within the block and provide an opportunity for less financial penalties to the exhibitor.

Having the date to confirm the block specified at 60 days prior to the cut-off will force cancellations from the exhibitors and allow an opportunity to be able to resell any released rooms. After this date any rooms that are cancelled will be charged a penalty. The penalty can be determined by taking the average of one night room and tax across all properties. Having a flat fee for cancellations will make this process easier to manage for the exhibitor. If your average of one night room and tax is $224.86, then having a $225.00 per cancelled reservation can be established.

Having a separate deadline specified at approximately 30 days prior to the exhibition will allow the exhibitor the additional time to obtain real names. There will still be a lot of changes from your exhibitors but establishing some realistic dates will make this process much easier for the exhibitor to manage.

Types of Housing AccommodationsA review of hotel accommodations previously booked is important information to collect in the historical review process as well as the parameters established for open selection of a property or assignment to specific hotels. Additional data on preferences for hotel proximity to convention facilities, placement of rooms in one hotel or more, or economy vs. luxury properties, are significant considerations. Gathering as much historical information as possible will assist in developing an exhibitor profile and enable the host organization to make decisions that are mutually beneficial.

RELATIONSHIP BETWEEN BOOTH/STAND SPACE AND ROOM BLOCKS

Many factors are taken into consideration when linking booth/stand space and room blocks, while developing an exhibitor housing process. Reviewing different methods and motivating factors is an important step in creating a process that will be beneficial for the organization and exhibiting company.

Was there a non-refundable penalty that

forced cancellations or was there a posted deadline?


302


Linking Rooms to Booth/Stand SpaceSeveral methods are available to link the exhibitor room block to booth/stand space in a fair and equitable manner. The needs and expectations of the organization and the exhibitor should be considered when selecting the method.

Priority Points. The priority-point system is when a point value is given based on specific criteria. These points may then be used by the organization to determine how many rooms an exhibitor can be allowed at a specific hotel or may be used to determine when an exhibitor can request the room block. Using priority points to determine the number of rooms exhibitors can request can be based on several factors. Care must be exercised when deciding the point values for each factor. Consider the following factors for assigning points:

• Booth/stand size. A common point system for the size of the booth/stand is one (1) point for every 10 square feet (3 meters) of purchased space, and will equate to 10 points for the typical booth/stand size

• Number of years exhibiting. Use the number of years an exhibitor has been exhibiting at the event. Consider awarding each exhibiting company 10 points for each year

• Sponsorship. Provide a point value for the value of sponsorships for the event or other activities hosted by the organization. Sponsorship values may be based on cost or the value of in-kind donations

• Booking within the block. Provide a point value to the company that used the room block associated with the event for the previous year

Using Priority Points. Careful consideration is needed to determine the impact of points on the size of the room blocks. For example, consideration may be given to permit companies with the higher point value totals to request rooms earlier than other exhibitors, thus allowing the opportunity to obtain accommodations in choice properties along with an increased maximum number of rooms that can be requested.

Link Booth/Stand Space to Rooms. Another method commonly used is to directly link the size of the exhibitor booth/stand space to the number of rooms that can be requested. For example, the exhibitor could request up to five rooms for each 100 square feet or 30.48 square meters of booth/stand space.

Headquarter Hotel. Exhibitors may prefer to stay in the headquarter hotel. An incentive would be to award one (1) room for each 100 square feet or 30.48 square meters of booth/stand space purchased. Another idea would be to increase the number of rooms requested by adding the number of years exhibited at the event. This is similar to the point-value system, but this would be limited to only the number of years.

Motivating Factors for Linking Rooms to Booth/Stand SpaceAs the relationship between booth/stand space and hotel room blocks is considered, there are certain motivating factors for the exhibiting company in this arrangement. Leveraging this relationship is also an incentive to sell booth/stand space and block hotel rooms within the organization’s room block. Additionally, the inclusion of sponsorship opportunities may increase when additional points


303


are provided. Preferential treatment of priority exhibitors continues to be good sales strategy for both housing and sponsorship. Encouraging exhibitors to request room blocks early in the process is an additional incentive to capture additional room nights in the housing block. Offering a lower room rate is another technique to increase sales and fill the contracted hotel room block. However, an agreement to this potential opportunity would require the endorsement of the contracted hotels. Some organizers, particularly large shows, are now using a system where the rooms are less expensive further out from the show, and become more expensive as the block is filled.

SECURING ROOM BLOCKS

Important factors to consider in developing the best exhibitor housing process would be to review the various exhibitor financial obligations and contractual commitments to secure the room blocks before making a decision.

Financial ObligationsClearly communicating the financial obligations to exhibitors who want to have their own room blocks is important. Doing so protects both the organizer and the exhibitor from misunderstandings that might create bad will between the two.

Deposit. Securing a deposit for room blocks is an important consideration and several methods are available. Requiring a credit card guarantee for each room booked is one option. This option guarantees the reservation and holds the room; however, the exhibitor is not charged at the time of the reservation. The hotel may charge the credit card used for the guarantee when the hotel receives a rooming list or may charge the individual at check-in. The exhibitor faces no financial obligation when this method is used, until a certain date closer to the show.

An actual deposit per reservation at the time of booking is another approach. For example, a deposit of $200.00 would be charged at the time of booking the reservation. It is important to consider the financial obligations that would be placed on the exhibitors when using this method. A significant financial obligation is incurred with this method and may result in a more conservative approach on the part of the exhibitors blocking rooms within the hotel block.

Adopting a cancellation penalty is an additional approach that requires careful consideration. When penalties are too strict, exhibitors often book outside of the contracted properties. A cancellation penalty instituted for cancellations regardless of the time the reservation is made forces exhibitors to commit to their room block immediately upon booking.

When using the credit card guarantee approach, a flat fee may be charged for each cancellation processed. If the deposit method were an actual deposit, retaining the deposit for cancellations would be the preferred method. A consideration of instituting a cancellation penalty that occurs at a specific point in time during the booking process allows exhibitors time to carefully review their individual needs without commitment at an earlier stage. Establishing a specific date will force a decision upon the exhibitors. Selecting the date is an important consideration to ensure sufficient time to re-sell unoccupied or cancelled rooms.


304


Contractual CommitmentsCommitments made in the facility contract to secure rooms will vary by venue and exhibition. Common considerations include sub-block contracts, historical data percentage, and cut-off dates.

Sub-block Contracts. The use of sub-block contracts is a method where the exhibitor signs a contract directly with the hotel for a room block. This arrangement holds the exhibitor financially liable for their room block and is an additional mechanism for the hotel to be reimbursed in the event of a cancellation of a significant number of blocked rooms with insufficient time to resell the cancelled rooms. Careful consideration needs to be made when using this method. Some of the hotel sub-block contracts will make the exhibiting company responsible for 100 percent of their room block.

Releasing blocks of rooms to exhibitors allows them to manage their blocks, and is an ideal approach for the exhibition organizer. The exhibitors may opt not to hold a block of rooms with these hotels due to the strict restrictions and will find alternate accommodations. Offering exhibiting companies incentives for booking in the block, such as offering additional priority points, lower rates for booking early, or even a discount on registration might give exhibitors the incentive to stay within the block regardless of the terms of the sub-block contracts. They just need to be aware of the contractual obligations and book only the rooms that they feel will actualize.

Historical Data Percentage. Using the historical data percentage method is another option to restrict the number of rooms that can be requested, based on the number of rooms actualized at the previous event. For example, allow an increase of 10 percent over the previously actualized room block by setting the maximum number of rooms any one exhibitor can request, regardless of booth/stand size or other factors. Exceptions may be considered for exhibiting companies who have purchased large booths/stands or have committed to significant sponsorship opportunities.

Cut-off Dates. Cut-off dates refers to the contractual dates that the hotel requires reservations to be submitted. Once the cut-off date has been reached, unsold rooms are then released back to the hotel for general sale. This is important to be aware of as it needs to be used as the basis for setting any non-refundable dates or cancellation policies. Established policies need to consider dates and allow exhibitors time to process the name and date changes.

EFFECTIVE EXHIBITOR HOUSING PROCESSES

Many factors need to be considered in creating an effective housing process for exhibitors. Once all considerations have been made, then the process can be established. In order for it to be successful, it needs to be properly managed so that it is equitable for the organization and exhibitors.

Creating the ProcessCreating the exhibitor housing process that meets the needs of exhibitors and the organization is a critical step for the exhibition organizer. The process includes managing hotel blocks and establishing a reservation method, as well as determining a hotel room inventory process.


305


Hotel Reservation. Part of the housing process for exhibitors begins with the reservation method. A decision needs to be made if room block requests are taken at the current year’s event for the following year. This can be incorporated during the booth/stand selection process or electronically via the website. When using this method, it is important to have signed hotel contracts before making commitments to exhibitors.

Hotel Room Inventory. A review of the total hotel room inventory is a significant management decision. The options are to use one block or divide the room blocks in the various facilities into smaller blocks. For example, the division might be attendees, exhibitors and staff. Adopting the single block may result in exhibitors booking the majority of the available rooms in some of the key properties. As an alternative, dividing the room block into categories creates a fair advantage for everyone.

While exhibitors generally prefer one property to house their staff, limiting the number of rooms in one property may be in the best interest of everyone. For example, a request for 100 rooms for the company might be limited to 50 rooms in two properties, which results in more equal distribution. The block can be set up distributing inventory to ensure the entire block is not taken by one group.

Managing the ProcessWith the process for exhibitor registration established, exhibition organizers should follow the rules and policies set and understand how they impact exhibitors with needs that fall outside of those rules and policies.

Circumventing the Process. After reviewing exhibitor’s needs, booking habits, and history, the written process must be published. It is important to follow the established rules and manage the process equitably. In other words, the established rules and policies need to be applied to all exhibitors.

VIP/Preferential Reservations. Another process decision to be made is for VIP or preferential exhibiting companies. The options for this group of exhibitors require careful consideration in advance of the decision. For example, these companies may be asked to book hotel rooms prior to opening the room block for general booking. Another option would be to establish a separate room block in key properties to ensure this group is taken care of in advance.

Exhibiting companies commonly have name, and arrival and departure date changes throughout the booking process. Changes in established deadlines require ample advance time to allow exhibitors to adapt to the changes. Most companies have one point of contact that manages the processing of the room blocks and the changes that subsequently occur.

Throughout the booking process, it is important to monitor and manage exhibitor activity. The bookings and room block inventory requires frequent review to ensure necessary adjustments can be proactive and minimize the impact on exhibitors. The process is easily managed through reports or online reporting capabilities. Sharing the room block with attendees makes the process and management more difficult and requires frequent monitoring and review.


306


When a segmented room block approach is used, it is more efficient to monitor exhibitor activity and respond to changes in booking patterns. Most changes and cancellations that impact the room block inventory will be apparent immediately prior to an established cancellation date when a financial impact will be realized. Additionally, an increase in room bookings is common prior to the deadline date.

A sound housing process requires multiple considerations when developing and establishing a process that is right for the event. It is impossible to make all exhibitors happy. However, the time and effort spent in reviewing and considering the nuances of the housing process serves as a guide in the decision making process.

Incentives. Providing incentives for exhibitors to book in the block needs to be considered. Offering an incentive that is valuable to the exhibitor is an important consideration.

There are a number of incentives that are specific to exhibitors but also include them for incentives that would benefit either attendees or exhibitors.

Examples:

• Extra priority location to exhibitors for each exhibitor guestroom booked and used

• Points are used for space selection for future events

• Suite/concierge level upgrades given to exhibitors that book a minimum number of rooms or more at specific hotel(s)

• Room drops available for those that book in the block. This could be used for sponsors as well. It can be a discounted rate or comped based on the hotel contract

• One or multiple free registrations for booking in the block to allow them access to sessions

• Price sponsorships or booth packages to include a number of comp nights at the headquarter hotel. List out what each package includes highlighting the specific number of nights

• Free meeting registration for booking 20 rooms, a minimum number of rooms in the block

• Additional badges per a standard booth size, up to a maximum number

• Additional badges entitling exhibitors access to events occurring at the exhibitions (e.g., the opening reception, one breakfast and one luncheon, access to the general session; and admission to seven technical sessions)

Exhibitors that do not book in the block would not receive additional badges; they would receive the number of badges that come with their booth/stand and they would not have access to the additional events held during the exhibition.


307


PART 2. EXHIBITOR REGISTRATION MANAGEMENT – PRIOR TO THE EVENT

Regardless of the type of event, some form of registration or enrollment will take place. At a public show, it may be as simple as paying admission at the door or purchasing an advance ticket. At exhibitions, the registration process usually entails filling out a comprehensive registration form. In essence, registration is the process of accurately capturing demographic and profile data from those individuals who choose to participate in an event. The registration process may also include a qualification process.

A carefully planned and designed exhibitor registration process is a critical first step with the identification of applicable information and business rules. Pre-registration for exhibitors is a different process than for attendees. Most pre-registrants are processed online. A registration link should be included in the exhibitor prospectus and/or the online exhibitor service manual (ESM), commonly referred to as the exhibitor tool kit, or the exhibitor services kit (ESK).

Access to RegistrationDetermine who, from the exhibiting company, will have access to the registration process, be it one company representative or all individuals from the exhibiting company. One point of contact is recommended to ensure proper communication of registration instructions. Exhibiting companies may make changes to the staff attending up until the last minute. Various factors to determine staff participation are used by exhibiting companies which may change the focus based on the buyers at the event, such as swapping out technical and sales people.

By designating one point of contact, the exhibiting company can communicate any last minute changes and instructions for obtaining credentials with the exhibition organizer. However, if exhibitors are able to purchase and attend networking events or educational sessions, the point of contact may not know the individual needs. In this case, allowing individuals to register themselves would be a better option.

Purchasing GuidelinesPricing models should be kept as simple and inclusive as possible. Most exhibition organizers provide exhibitor badges based on the size of the booth/stand purchased for the exhibition, and charge a fee for every badge in excess of the allotment, although smart organizers will make exceptions and not use exhibitor badges as a revenue stream.

For example, each exhibiting company receives one complimentary exhibitor badge and two booth/stand staff badges per 10ft x 10ft (9 square meters) space occupied. The successful incentive program will clearly define and price other options for purchase, such as an additional event, additional booth/stand badges, tickets to networking events, and/or education sessions.

Products being highlighted

DECISION FACTORS FOR STAFF

PARTICIPATION

Message to be delivered to clients

and prospects

Purpose of participation


308


Complimentary event registrations are exhibition specific, but may include entry to the exhibition, education sessions (unless ticketed), and admission to the networking events. Booth/stand staff badges are exhibition specific, but may include entry to the exhibition and admission to the networking events.

Limiting the number of exhibiting personnel may be necessary for the following reasons:

• Maintaining appropriate ratio of buyers to sellers on the exhibition floor

• Precluding badges for customers (who might otherwise register as attendees)

• Restricting badges for individuals who might not be authorized to attend; and

• Ensuring fairness to smaller exhibiting companies that may be overwhelmed by competitors with a larger staff

BadgesOne of the final steps in the registration process is producing a badge, the primary credential allowing access to the exhibition. Consideration must be given to purpose, design, development, production, and fulfillment of the pre-registration and the on-site process.

The badge is used to display the registrant’s name, title, organization, and other basic information, e.g., city, state, security credential, photo or code. The font size should be sufficiently large to be easily read at a distance of about three feet or approximately one meter, and registration categories easily identified, e.g., exhibitor booth/stand staff or exhibitor-full event (see fig. 20.1.).

Figure 20.1. Exhibitor Badge with Scan Code (Source: Experient, a Maritz Global Events Company)


309


Many exhibition organizers distribute the badges on-site due to frequent changes and substitutions. Distribution upon arrival saves mailing and badge material costs, avoids damage/loss in mailing, decreases the number of reprints, and provides the opportunity to verify attendance. Exhibitor badges may also be mailed at a predetermined date prior to the event. Some organizations require the registrant whose name appears on the badge to pick up the credential and usually require photo identification.

An exhibiting company conducting a pre-event function, e.g., sales meeting, will often request that all badges be mailed or picked up by the point of contact for distribution.

For security purposes and attendance verification, each individual should pick up his or her own credentials upon arrival. This safeguard controls and records the number of complimentary badges awarded, duplicate badge requests, and minimizes multiple participants using the same badge for access to the event. Additionally, implementing a reprint fee and substitution policy, once a badge has been printed and distributed, adds a level of control.

Non-Exhibiting SuppliersDuring the planning process, the exhibition organizer should carefully consider the process for non-exhibiting suppliers to have exhibition-floor access. Prospective exhibiting companies may attend future exhibitions after experiencing a walk through on the exhibition floor. However, carefully consider a policy and procedure limiting non-exhibiting suppliers from selling on the exhibition floor without purchasing a booth/stand. One method would be to escort the prospective exhibiting company through the exhibition. The activity of selling on the exhibition floor by a non-exhibiting supplier is known as suitcasing.

MANAGEMENT – AT THE EVENT

The registration vendor can recommend a number of options regarding the physical layout of the on-site registration area. Based on the venue, pre-registration requests, on-site registration hours, and the capabilities of the vendor’s software and hardware, the system can be configured for optimal use and minimal wait times. Communication between the exhibition organizer and the registration vendor is essential.

LogisticsTime and speed of registration are a concern no matter what system is used. Staff must work at peak efficiency at all times, which often suffers when traffic volume increases. Any loss of time during registration due to staff support issues causes traffic congestion and can become compounded in a short time.

In case registration is not up and running for exhibitor registration, the exhibition organizer will distribute temporary set-up badges, (e.g., self-adhesive paper badges or wristbands to allow access to the exhibition floor). This process requires exhibitors to return for the official badge prior to the opening of the exhibition. Some exhibitions credential union labor and other workers involved in setting up exhibits and are usually issued colored wristbands, with a different color for each day.


310


One benefit to opening registration early as the exhibitors arrive precludes the requirement of re-entry to the on-site registration area during peak hours. Additionally, temporary on-site registration personnel gain additional training time under less stressful circumstances, and are better able to manage challenges during busy times.

Locating exhibitor and attendee registration in the same area allows for greater flexibility in the physical layout of the area and the ability to utilize registration computers for multiple functions.

Registration PersonnelRegistration personnel can be found through various sources. Provided the organization has the budget and resources, exhibition organizers may utilize personnel within the organization to work the event. Typically, temporary personnel services can be contracted through the local DMO, CVB (see fig. 20.2.) or through the registration vendor.

A popular alternative is to contract with a private temporary personnel service company. Temporary personnel services usually offer a competitive hourly rate that reflects the skill level and responsibility of those individuals required to perform the assignment. For example, supervisors are paid a higher rate than someone hired as a data entry clerk or a line monitor.

Figure 20.2. Registration Personnel (Source: Radiological Society of North America Annual Meeting)

OUTSOURCING OR IN-HOUSE SYSTEMS

A comprehensive registration management system is essential for the success of any event. Many decisions have to be made in advance, beginning with whether to manage registration in-house or outsource through a registration vendor. The host organization has to have some knowledge of registration technology to choose the best fit for each event.


311


OutsourcingRegistration services can be outsourced in their entirety or pieces of the process may be outsourced. Some exhibition organizers elect to perform some of the pre-registration functions in-house, and contract with a registration vendor to handle the credentials, on-site reporting, and on-site registration while others elect to manage the entire process in-house.

Registration TechnologyImprovements and efficiencies in registration technology develop at lightning speed. Organizations and individuals not working within the data management software environment on a regular basis are challenged to keep pace with the innovations in the marketplace. For example, the integration of event and housing registration allows an attendee to register for the event, complete the housing reservation, and receive a confirmation detailing their entire event itinerary on the same website.

Technological solutions for registration vary from company to company. Most registration vendors give the exhibition organizer access to the registration system to generate reports whenever needed. As an exhibiting company pre-registers, the exhibition organizer can view the information, review a report, and generate a confirmation in a timely manner.

In-House RegistrationOrganizations performing some or all of the registration process in-house often use an association management software package with a registration component. This generally occurs because the organization:

• Possesses resources to manage the process

• Has the desire to maintain full control over the process

• Believes the economies of scale for the registration process do not support an outsourcing decision

A variety of registration software programs are available, though they have less flexibility and depth, as well as full technical support, than a customized registration system.

Bar Code or QR CodeA one or two-dimensional barcode or QR code can be printed on the badge at the time of production. The one-dimensional bar code or QR code includes a unique identification number that refers to the attendee’s registration record, while the two-dimensional barcode is encoded with the registration and demographic information.

Radio Frequency Identification (RFID) and Near-Field Communication (NFC)RFID is a generic term for technology that uses radio waves to wirelessly transmit the identity of people or objects. NFC is also being used, depending on venue infrastructure capabilities and budget.

Exhibitors have more options than ever on how to capture sales leads while at an exhibition. The exhibitor can rent a lead-retrieval unit that allows them to scan the barcode, or capture the RFID tag or NFC information, or use other mobile

Bar code

LEAD-RETRIEVAL SYSTEM

Magnetic strip card

Radio Frequency Identification (RFID)


312


applications to further qualify the attendee who has indicated interest in their products and/or services. In some instances, the exhibitor can also ask additional customized demographic questions. The lead-retrieval units may be desktop, hand-held units or used on a tablet or smart phone.

Many vendors also offer the ability for exhibitors to connect the lead-retrieval unit to a laptop, tablet or iPhone, allowing them to populate the information directly into their own software lead-management system.

SUMMARY

Exhibitors have different housing and registration needs, expectations, and habits than attendees. The focus of this chapter is on the management of exhibitor housing and registration and the impact exhibitor decisions have on the host organization.

KEY WORDS

actualized room block

bar code

cancellation penalty

credit card guarantee

cut-off dates

deposit per reservation

exhibitor services kit (ESK)


exhibitor tool kit

headquarter hotel

historical data percentage

hotel contracts

hotel room inventory

lead management system


mobile application


pick-up within the room block

priority-point system

QR code


room block

room block wash

rooming list

sub-block contract

suitcasing

DISCUSSION QUESTIONS1. Evaluate the needs of an exhibitor that should be considered when creating

the exhibitor housing process.

2. Evaluate the pros and cons of using the priority-point system for linking booth/stand space to the exhibitor’s room block.

3. Evaluate the pros and cons of mailing credentials to the exhibitors in advance of the event as opposed to distributing them on-site.

4. Compare and contrast the methods for exhibitors to collect sales leads and the implications.


313

CHAPTER

21

“Coming together is a beginning. Keeping together is progress. Working together is success.” – Henry Ford, qtd. in Zuck 375

ON-SITE OPERATIONS

LEARNER OUTCOMES


1. Develop a plan to manage the on-site exhibition operations

2. Explain the components of on-site communications

3. Identify the exhibition cycle phases

4. Review the roles of the on-site exhibition team, including staff and vendors

5. Evaluate the overall on-site operations

Jennifer Hoff, CEM President

Taffy Event Strategies

Bruce Lemmon, CEMOwner

GEM Global Events Management LLC

Daniel McKinnon, CEMVP Client Solutions – Global

FreemanXP

Charlotte Pearson, CEM Senior Business Development Manager

Freeman

Glen C. Ramsborg, PhD, CMPPresident

Ramsborg Group LTD.




314

CHAPTER 21 On-site Operations

INTRODUCTION

Exhibition management is, to many, a logistical science. The multitude of details – the facts, the figures, the planning – must be addressed within a logical, sequential framework to realize a successful exhibition. To others, exhibition management is a people business. The daily interaction with contractors, attendees, exhibitors, and staff requires a high level of effective communication skills. After months of planning, everything culminates with the arrival of the management team. The role of the on-site operations team is to create the infrastructure for the exhibition to unfold.

Throughout the planning cycle, the exhibition and event requirements are gathered and interpreted by the exhibition organizer from a complex matrix of stakeholders that includes exhibition sales, marketing, exhibitors, attendees, and executive management. Plans and specifications are developed and fulfilled by a network of contractors, staff, and venue personnel. The exhibition organizer coordinates, manages, and monitors all activities that create the environment and ensures the overall success of the exhibition – from the beginning to the end – move-in, opening hours and move-out. This chapter gives an overview of on-site operations focusing on the role of the exhibition organizer.

ARRIVAL ON-SITE

The exhibition organizer is the first to arrive and stays for the duration of the exhibition through move-out. Upon arrival, the exhibition organizer conducts a familiarization walk-through of areas to be utilized. A check of the condition of the facility(ies) is an initial priority to ensure that there have been no changes to the infrastructure since the last planning visit. This is a good time to check for cleanliness and make special housekeeping or refurbishing requests. The exhibition organizer will look for pre-existing damage and document any issues that arise (with photos) and immediately report to the facility representative. A remote office work area should be established as soon as the exhibition organizer arrives at the facility. This area, typically referred to as the show management office, should be stocked with basic office supplies, printing capabilities, exhibition files, and other resources necessary to conduct business.

At this point, the facility exhibition representative will be available as the official service contractor (OSC) and other vendors arrive and begin preliminary set-up and preparation. The exhibition organizer should check in and meet with the OSC account executive and other key contacts to review last-minute details, updates and changes. A good practice is to move into the headquarters area early, get organized, and implement a pre-established communications network with all key players.

ASSEMBLING THE TEAM

Depending upon the type of host organization, the exhibition staff and supporting vendors can range from a couple of individuals to dozens of people, and can vary in size during the planning cycle. It is important to understand the roles, needs,


315

On-site Operations CHAPTER 21

and the talents of the on-site resources in order to bring the event to a successful conclusion. The exhibition organizer must integrate the staffing requirements and vendor resources needed to produce the exhibition.

The exhibition organizer will work most closely with the core exhibition team. These are the exhibition professionals made up of staff and vendors. Members of the core team include key meeting and exhibition staff from the exhibition sponsor, the OSC’s account executive, and the facility’s exhibition coordinator or convention services manager.

The staff structures of organizations that produce exhibitions are infinite. Typically, an exhibition director leads all exhibition staff members throughout the exhibition cycle and has ultimate responsibility for the success of the exhibition. An exhibition staff team is made up of professionals with functional expertise in sales, marketing, operations, conference development, and meeting planning. At times, one person may cover multiple functional roles (i.e., the operations and meeting planner role). Some organizations have a group of staff who are dedicated to the meetings or exhibition and associated events, and work together all year. In other scenarios, individuals may give a portion of their time to the exhibition and work on other projects throughout the year. Some organizations opt to outsource the exhibition management and other production elements to a third-party management company.

Additional staff may be present on-site for a variety of reasons, such as committee meetings, serving members, or speaking in sessions. Some may serve as an executive presence during the event; consider whether they should be included in on-site communications or duty assignments. For instance, a government official may be scheduled to visit the exhibition and the president of the organization will escort the official onto the show floor. It is important that the president be kept informed on the government official’s arrival.

A variety of outside suppliers will need to be acquired and incorporated into the exhibition team. These partners are often referred to as service providers, vendors, contractors or subcontractors and are critical to the success of any exhibition. In some cases, due to union jurisdictions or contractual agreements with the venue, there are exclusive providers that the exhibition organizer is required to use. Food service and catering, utilities, material handling, cleaning, and security are often, but not always, exclusive services. For services that are not exclusive, the exhibition organizer engages companies to fulfill associated functions that were contracted with earlier in the planning process. A review of specifications for each of the service providers should be reconfirmed to ensure any last-minute changes have been communicated with all of the individuals involved in the exhibition.

Official Service ContractorOne of the most important contractors is the OSC. This vendor’s role is to translate requirements from exhibition management and exhibitors into decorating, signage, and other logistics primarily inside the exhibit hall, on time and correctly. In some countries, the OSC simply marks the show floor and sets up booths/stands and provides furniture for the booths/stands, while other companies provide signage and other logistics within the exhibit hall.

Official service contractor

ON-SITE REPRESENTATIVES

Subcontractors

Exhibition organizer


316


In the United States and Canada, the OSC manages the traffic arriving at the freight/loading dock with deliveries for the exhibition, supervises the unloading of freight and delivery of materials to each booth/stand, and arranges to store empty crates and other packing materials. In many other countries, the freight forwarders take care of this job. Upon completion of the exhibition, the crates and packing materials are returned to the correct booth/stand for dismantling and packing, returned to the loading dock, and loaded onto trucks. In general, whoever supervised the move in supervises the operation in reverse as the exhibition moves out.

ShippingPreferred vendors for air and/or ground freight may be appointed. These companies are responsible for getting the shipments to and from the building and can provide special rates and benefits to the exhibitors. In the U.S. and Canada, once the shipments arrive at the loading dock, the OSC takes over the material handling to get the freight from the loading dock to its destination.

In many countries, an official international freight forwarder has the responsibility of managing the move-in and move-out of the exhibitors’ freight, while a customs broker – often but not always hired by the freight forwarder – ensures proper documentation is submitted so that the materials enter and leave the country legally and with expediency. In all countries, these vendors serve an important role in assisting with international shipments getting to the show, as well as those that are detained during the customs clearing process and returned to their country of origin. For a comprehensive overview of shipping, see Chapter 26.

Convention Center, Fairgrounds or Other FacilityThe facility that hosts the exhibition is the foundation for the environment and generally has pre-function space, meeting rooms, and exhibit halls. An appointed exhibition representative is the key contact on-site and the main go-to source for all facility-related questions and concerns and a key resource to the effective and efficient use of venue. The exhibition representative assists with requests related to the facility’s exclusive vendors. For example, if a room temperature needs adjusting, the exhibition representative will communicate the request to the facility’s engineering department, although this function may be given to someone on the operations side of the facility. An executive-level contact within the facility can be called in for situations needing decision-making authority.

Utilities – Electrical, Telecommunications and InternetThe facility’s exhibition representative works with their internal operations team to coordinate the installation and removal of the utility requirements with appropriate vendors. For example, electrical lines need to be installed for an exhibit before the carpet is laid.

Due to a myriad of wireless devices utilized during an exhibition, the facility’s representative must be familiar with the wireless and bandwidth capabilities of the facility and should plan for the required bandwidth prior to the exhibition. The exhibition organizer should also be familiar with the facility’s bandwidth capacity, checking it against the event’s requirements based on past usage and experience, and recheck internet capabilities upon arrival at the venue, as some facilities continue to be challenged in providing consistent access. This is especially

Shipping

Facility

Utilities

ON-SITEREPRESENTATIVES

(continued)


317


problematic at exhibitions with a large number of exhibitors and attendees, many of whom carry multiple wireless devices. Knowing the bandwidth capabilities in different countries is also an important consideration. Some venues will bring in additional wireless service boosters for large shows. The Events Industry Council (EIC) has created an Industry Insights Bandwidth Estimator (“Industry Insights Initiative”) to help in calculating the amount of bandwidth needed for an event. It is important for organizers to understand how to manage Internet access to avoid lost efficiency, cost overruns and reduced effectiveness (“Events Industry Glossary”).

Food Service and CateringThe catering vendor is responsible for meal functions, special receptions, concessions, and staff meals. Catering orders require review on-site and may be adjusted for attendance fluctuations based on projected attendance statistics. In this case, the exhibition organizer works with the catering representative to adjust food orders, seating space, and any other catering-related issues, including special requirements identified during the pre-registration process. An unexpected request from an attendee or exhibitor with special dietary needs based on allergies or religious beliefs requires immediate attention and involvement of the catering representative.

Exhibition Security ProviderThe official exhibition security company provides protection and a security presence once the exhibition organizer takes occupancy of the facility. The exhibition organizer and the OSC should meet with the supervisor in charge of security to finalize guard stations and review exhibition rules and regulations, procedures, and patrol schedules. The exhibition representative (or convention services manager) should also be consulted in order to coordinate perimeter security provided by the facility with the services being supplied by the official security company, if separate. A review of the previously identified areas of security concern(s) should be revisited and addressed. For example, activities like late-night events, VIP guests, and parades require unique security attention. This is a time to review emergency plans and procedures, as well as protocols, and to communicate with all vendors and staff prior to the start of the exhibition.

The official exhibition security company handles orders for exhibitors requiring extra security not provided by the exhibition organizer.

A review of the exhibition entrance requirements and procedures, including the badge types or tickets needed, is necessary to ensure that only properly credentialed or ticketed individuals are allowed access to the exhibit hall. This is also the point to reconfirm with security personnel the process for ticket counting, collection, and recording the number of individuals entering the exhibition.

First AidAn emergency medical technician (EMT) or other qualified medical professional should be available during the exhibition with coverage beginning at move-in and concluding when move-out is complete. All key exhibition staff must know the location of the first aid room and how to reach the EMT, and the EMT should be provided with a schedule of events, including the times and locations of all functions connected with the exhibition, as well as an idea of when the maximum


(continued)

Security

Medical (First Aid)

Food service


318


number of participants will be present each day. Some large shows may have multiple first aid stations.

Audiovisual (AV)The audiovisual (AV) provider provides on-site equipment and labor to install preordered services in the show management offices and the exhibition hall, although most venues have in-house paging systems in the exhibit halls. The exhibition organizer should review preordered AV requests and work closely with the AV representative to ensure the ordered equipment and set-up time is appropriate and efficient. This responsibility may be delegated to the OSC for service to exhibitors, and the OSC may be the primary individual to respond to additional requests made by the exhibition organizer, particularly in the U.S. Many facilities have the in-house sound and visual systems as an exclusive service.

When using a third-party AV company, a separate sound system or plug in to the house system may be brought into the facility. The exhibition organizer should have a thorough understanding of who is providing which services and the process for billing. Last-minute changes in speakers, equipment orders, and room assignments – if unavoidable – should be conveyed to the AV contractor. On-site changes or additions frequently are more expensive.

One person should be familiar with the organization’s budget and designated to approve or disapprove any additional expenditure(s), as AV can be a source of significant cost overruns on-site. The AV vendor may or may not be contracted to supply computer equipment. When a third-party provider is used for computer equipment, a time should be arranged to review and reconfirm orders and to determine the individual(s) who will provide on-site technology support and a timely response to requests from the exhibition organizer.

Cleaning and Trash RemovalWhile some facilities include cleaning in their contracts, others require the services of outside contractors who are typically hired and managed directly by the OSC. However, in some instances, exhibition organizers may have designated an official subcontractor for cleaning and trash removal. A review and reconfirmation of cleaning schedules with the appropriate parties should be conducted to ensure trash is removed regularly, especially during peak times. Recycling procedures and/or removal of hazardous waste should be monitored throughout the exhibition. Coordination and reconfirmation of the schedule with the security vendor is essential to ensure cleaning personnel can access the required areas of the facility, and so that security can monitor cleaning personnel.

Exhibitors may also have specific cleaning requirements for their booth/stand. The preorders for this service should be noted during the review and reconfirmation process. Again, these services are generally managed by the OSC in the U.S., but may also be done through the official building contractor.

TransportationExhibitions utilizing multiple hotels and/or having arranged off-site functions may engage the services of a special contractor to manage the shuttle bus operation. The key contact from the company serves as the liaison with the individual


(continued)

Transportation

Audiovisual

Cleaning/trash removal


319


exhibitor having an off-site function or the exhibition organizer for a general shuttle bus operation. The responsibility for scheduling, signage, and on-time performance must be carefully managed on-site. The exhibition organizer should communicate with the contractor to reconfirm schedules and communicate with the facility representative to ensure sufficient staff is available to direct traffic at the point of embarkation and note any VIPs that may require extra security or attention.

FloralAn official floral subcontractor will typically be selected to provide floral decorations for the exhibition. Either the OSC or the organizer will contract with the floral subcontractor depending on the size of the show or whether there is significant floral required by the organizer. The official floral subcontractor will also provide floral materials to exhibitors. Exhibitors place decorations in their booths/stands to add an attractive element or to enhance the theme of the booth/stand. A form for exhibitors to use for ordering this service for their booths/stands is typically included in the exhibitor service manual.

A delivery schedule of the orders and placement of the plants and flowers ordered should be reviewed. A person will be identified to supervise the arrangements for entranceways, staging, registration areas, and special events such as banquets or entertainment events.

RegistrationThe exhibition participant’s first stop on-site is the registration area. The exhibition organizer or identified staff should continually monitor wait times, crowd control, attendees who need assistance, system equipment, badge inventory, and all aspects of the registration process. The predetermined reporting of daily registration, as well as the process of forwarding reports to the exhibition organizer, will guide registration staff. Communication protocols regarding attendance numbers to the public and press should be reviewed and reconfirmed by appointed staff only.

The exhibition organizer may work with a destination marketing organization (DMO) to hire temporary workers to direct registrants, issue badge credentials, and serve as cashiers. In some instances, the exhibition organizer may hire a third-party vendor, a destination management company (DMC), to hire temporary workers. Daily management of this group includes training and scheduling of the staff, making certain that each person gets adequate meal and other breaks, monitoring and tracking on-site attendee flows, answering questions, and ensuring that computers stay in working order.

The registration vendor generally provides a system for exhibitor lead retrieval, including the distribution of the equipment prior to the exhibition opening, collecting it promptly at the conclusion of the exhibition, and assisting exhibitors with data management. There are also third-party vendors who supply lead retrieval systems.

HousingMany exhibitions have a housing representative on-site to assist exhibitors and exhibition participants who have issues or changes with their reservations. Reconfirm the location for this representative and ensure signage with hours of operation is current. For a comprehensive overview on Housing, see Chapter 20.


(continued)

Housing

Floral

Registration


320


Destination Management CompanyWhen an exhibition includes a large number of guest activities or tours, the services of a DMC is often needed. Once on-site, the exhibition organizer should meet with the DMC account executive to review final plans and schedules. Some exhibitions with large family attendance may contract with a DMC or other specialized contractor to provide childcare programs either at the convention center or off-site.

Host City ContactsIf the exhibition organizer has been working with the DMO, the DMO’s sales representative will most likely be in touch as soon as the exhibition organizer arrives for the exhibition. The public relations person from the local DMO can provide lists for local media and assist with press releases or other local media coverage.

For certain high-profile exhibitions, the mayor or other city official may be scheduled to appear at an opening session or ribbon cutting to provide a welcome to the city or a proclamation of welcome. In any case, staff from the city would be included in the planning process, and would provide an on-site contact person.

Representatives from the host city for future exhibitions may have a presence to help promote and generate excitement about future exhibitions. Often, a local host committee will have been created to work with the exhibition organizer in advance of the exhibition. The host committee is a group of people bringing specific expertise of the locality and facilities of a given area to the exhibition organizer in planning the exhibition and the event program (“Events Industry Glossary”).

ON-SITE COMMUNICATIONS

A communications network is essential for an exhibition. The key people should know each other and ensure that plans are being implemented properly and issues are being resolved as they arise. The physical facilities can be vast, and key individuals must be able to contact each other as needed.

A master staff information guide should be reviewed and updated to include:

• All emergency contact information for staff

• Contact(s) and mobile numbers for vendors, and venue and local emergency contacts with essential information

• Hotel addresses and phone numbers

• Staff arrival and departure information

• Attire policies

• Staff meals and times

• Radio rules

• Emergency procedures

• Dates and times for staff meetings and who is required to attend

Other items that might be included:

• Event orders (EO)


(continued)

DMC

Host city

Host committee


321


• Room layout diagrams

• Audiovisual orders

The list should be noted as confidential and distributed only to appropriate parties. A staff schedule should be reconfirmed and included in the on-site orientation to ensure individuals are present at the various locations. An often-overlooked provision is providing coverage for breaks and lunch. In addition, the exhibition organizer should review the contracted provisions for contractors.

Electronic CommunicationsThe size of the exhibition often dictates the type of communication network and determines the equipment assigned to the positions or people who need instant communication. For example, two-way radios or mobile phones are used for key individuals. The plan is developed prior to arrival. Once on-site, the equipment should be distributed, tested, and the instructions and protocols for use reviewed. If two-way radios are used, one channel should be dedicated for staff communication, another channel for communication with the facility representative and OSC, and a third for brief one-to-one consultations. A review of radio etiquette and radio code words helps reduce radio traffic and reserve the primary channels for only essential communication.

ON-SITE COMMUNICATIONS

• Move to an alternate channel for lengthy conversations

• Return to the general channel when completed with business on another channel

• Meet face-to-face for a lengthy or private conversations

• Announce unavailability; (e.g., off-radio for X amount of time)

• Avoid negative comments – radio communication is not private

• Avoid panic words; (e.g., fire or bomb)

• Push the button and wait a full second before talking

• Avoid interrupting others

• Charge your radio at the end of the work shift

• The caller should identify themselves; (e.g., “Jeremy to Karen, come in”)

KEY ON-SITE TEAM MEETINGS

There are few situations where professionals with varying areas of expertise all come together after months of planning and execute the overall plan. Once on-site, three important meetings help to ensure the plan comes alive: the pre-convention meeting, daily production and staff meetings, and the post-convention and wrap-up meetings. Continuing communication among team members is vital to the successful management of an exhibition/event.

RADIO CODE WORDS

10-2Meet me at...

10-4OK

10-10Negative

10-17On my way

10-18Urgent

10-20Location

10-24Assignment Complete

10-100Bathroom Break

WHAT’S YOUR 20?

Where are you?

DID YOU COPY?Do you understand?

COME BACKRepeat please

NEGATORYNo

EAT ‘EM UPRestaurant

REST ‘EM UPHotel room

GOOD BUDDYYour radio friend

GOT YOUR EARS ON?Are you there?


322


Pre-Convention MeetingThe pre-convention meeting is the time for the exhibition organizer to meet face-to-face with everyone who plays a significant role in the execution of the exhibition and provides time to review any last minute details, changes, assignments or special requirements. The venue for the event will provide an agenda. The exhibition organizer gives an overview including exhibition history, type of industry, scope of the exhibition, attendee demographics, key staff roles and authority, and unique exhibition attributes. Representatives from the local DMO, primary hotels, key vendors, and the facility department heads then provide an overview of the roles and responsibilities and discuss any issues that may affect other vendors in the room. After the introductions and overview, there is typically time for smaller breakout discussions between the vendors and the operational representatives. For example, the catering representative may need to coordinate with the security provider to ensure that certain areas are unlocked so catering staff can setup a breakfast.

Daily Production and Staff MeetingsThe exhibition organizer should schedule daily meetings, or even meetings throughout the day, with the OSC, the facility, and other key vendors. These meetings may be formal or more of a touch base meeting that is impromptu in nature.

A good practice is to meet with the organizing staff at the beginning or end of each day to review major items, schedule or plan changes, and handle any issues or situations requiring special attention. All staff should be encouraged to keep a real-time list or journal of issues and possible improvements to share at the next daily meeting.

Post-Convention and Wrap-Up MeetingsA post-convention meeting can be held with just the core exhibition team, the facility’s exhibition coordinator or convention services manager, and the OSC. This meeting often takes the format of a celebration of the efforts put forth by the team. The goal is to review successes and discuss opportunities for improvement at future exhibitions in a give-and-take forum. Be aware that this is likely the last face-to-face meeting between the event’s key players and a chance to gain valuable feedback from all stakeholders. This is especially important since some exhibitions are annual to a venue, while others may be held in a different venue and/or city the following year.

The exhibition organizer may also have one-on-one meetings with individual vendors and suppliers to review preliminary invoices and discuss specific aspects of the exhibition. For example, the exhibition organizer will plan a meeting with hoteliers to review the room pick-up and determine steps to finalize the housing reports to conduct an audit.

EXHIBITION CYCLE PHASES

As essential as communication is among team members, once everyone has gathered on-site, three specific phases are specifically critical to a successful exhibition: move-in, exhibition days, and move-out.


323


Move-InMove-in is the time to execute the set-up plan. Vendors and staff work together to fulfill orders and set-up exhibition areas including registration, offices, meeting rooms, signage, decorative elements, and the exhibit hall. The OSC will mark the exhibit hall floor to outline and number the individual exhibitor locations. Following this step, the utilities will be laid and exhibitor orders delivered and installed, while spotting of heavy or extra-large equipment may take place. Exhibitors will arrive to oversee and/or setup their booth/stand space.

Some exhibitions employ floor managers who work in tandem with the OSC. The responsibilities of floor managers can vary depending on the size and type of the exhibition and the personal style of the OSC and exhibition organizer. In addition to being a problem-solver, responsibilities of the floor manager may include monitoring and enforcing the rules and regulations, handling exhibitors’ special needs and requests, and serving as a liaison between the exhibitors and the OSC, suppliers/vendors, and exhibition organizer.

Exhibition DaysPrior to opening the doors of the exhibition, the OSC and exhibition organizer should conduct a final walk through to ensure that the exhibition is set properly, crates are not left in the aisles, all masking drape or hard walls are in place, and that empty booths/stands have been put to good use. If an exhibitor does not show up, the booth/stand may be set with lounge seating, or some other decorative element, so the empty space is not obvious.

Immediately prior to the exhibition opening, there may also be a check-in with the facility representative to test that the paging microphones are functional, exhibition hours are confirmed for lighting and air conditioning purposes, and that all food and beverage stations are placed correctly and ready.

Many exhibitions stage a formal ribbon cutting in the moments prior to the initial opening of the exhibit hall. This usually includes VIPs from the host organization, such as an association president, local dignitaries or celebrities. As this is a public relations activity, other staff members are involved in orchestrating these festivities. Some of these opening ceremonies may be quite elaborate, necessitating sound systems, stages and lighting.

Move-OutMove-out should be as well planned as move-in. Bulletins left in each booth/stand are distributed and often used to ensure all exhibitors are familiar with rules, regulations, and timing of move-out procedures. Safety and security are major concerns during the move-out process. Creating an orderly process is mandatory to ensure that the exhibition is out of the building by the contracted time. The OSC or freight forwarder, depending on country, manages the return of crates to exhibitors, freight movement to the loading area, and vehicle traffic.

Before leaving the building, the exhibition organizer completes a final walk-through checking for damage and overall cleanliness, covering all the same locations as toured on arrival with the facility representative and the OSC.

Monitor security

MOVE-OUT ACTIVITIES

Rule enforcement

Shipment preparation

Vendor invoice review

Final facility walk through


324


SUMMARY

At the conclusion of the exhibition, the exhibition organizer should thank those participating in the success of the exhibition. The exhibition organizer should personally bid farewell and shake hands with the many individuals involved in staffing the exhibition. The exhibition organizer can then walk out the door with a huge sense of satisfaction. Very few occupations provide such moments of gratification – of seeing such a large and multifaceted project taken from start to finish. The unfolding of an exhibition is akin to a theatrical production; an exhibition includes performances by a wide variety of people, performing for an audience, under the duress of a prescribed timeline. The exhibition organizer bears ultimate responsibility for all team members working together smoothly to achieve the ultimate goal. Mastery of all the interrelated factors and knowledge of the appropriate scope of responsibility for each team member and contractor are the keys to success.

KEY WORDS

audiovisual (AV)

customs broker



emergency medical technician (EMT)

exclusive provider

freight forwarder

host committee

move-in

move-out


OSC account executive

outsource

post-convention meeting

pre-convention meeting

radio traffic

show management office

third-party management company

DISCUSSION QUESTIONS1. What are some key things to keep in mind regarding radio etiquette?

2. Make a list of items that should be included in the master staff information guide and discuss other items that might be appropriate to include.

3. Discuss the role of the official service contractor.

4. What is the importance of communication in the context of understanding the roles of individual vendors? Give examples of how vendors need to communicate and coordinate efforts.

5. A beverage order has not been received by an exhibitor at the designated time. Discuss approaches to resolving challenges on-site.

6. Why is the host city motivated to ensure the success of an exhibition?


325

CHAPTER

22

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” – Colin Powell

OFFICIAL AND SPECIALTY SERVICE CONTRACTORS

LEARNER OUTCOMES


1. Explain the role of the official services contractor (OSC)

2. Describe the responsibilities of the OSC

3. Create criteria used in selecting an OSC for the exhibition

4. Explain the role and responsibilities of an exhibitor-appointed contractor (EAC)

5. Discuss the importance of identifying who handles what service, and how this can impactservice or costs

6. Identify the purpose and types of specialty contractors

Amy Blanchard Assistant Director of Corporate Exhibitor Services

Freeman

David GrindleExecutive Director

USITT United States Institute for Theater Technology, Inc.

Julia W. Smith, CEM, CTASenior Vice President, Exhibition Sales

GES

David Saef, CTSMExecutive Vice President of Strategy

Freeman


326

CHAPTER 22 Official and Specialty Service Contractors

INTRODUCTION

U.S. ModelMany companies provide an array of services essential for the execution of an exhibition. The official services contractor (OSC), previously referred to as General Services Contractor or Decorator, oversees the coordination of many of these elements and is the vendor with whom the exhibition organizer works most closely. Hosting a successful exhibition requires collaboration and coordination between the exhibition organizer and many other parties, including facility representatives, specialty service providers, subcontractors, and professionals hired by other parties, such as exhibitors. Arriving at an understanding of what each company or contractor does and how all can work together successfully is a critical task for the exhibition organizer.

SERVICES PROVIDERS AND THEIR ROLES

Organizations hosting an exhibition in a convention center or other venue will contract with an OSC to manage the logistical aspects of an exhibition, in coordination with the facility’s staff, the exhibition organizer’s team, and other service providers. Convention center facilities and hotels may provide some services on an in-house or exclusive basis. Some common examples of in-house services are food and beverage, Internet services, audiovisual needs, electrical, and other utilities, although some of these services (such as electrical or audiovisual) may be provided by the OSC or other third party.

Given the pivotal role of the OSC relative to all other players, the exhibition organizer must establish clear roles and responsibilities for all. In particular, the exhibition organizer and OSC need to establish a coordinating team of key parties, including the host facility, specialty contractors, and other key parties such as transportation, registration, or housing contractors.

Official Services ContractorThe OSC may provide certain services, such as specialty furnishings rental or cleaning, directly or through a subcontractor.

The OSC is responsible for providing comprehensive information to help the exhibition organizer plan and budget for the exhibition, create a compelling exhibition environment and exhibitor presence, and execute logistics in a timely, safe, and efficient manner. The OSC typically will be the most visible contractor at the exhibition given the scope of services.

Subcontractors to the OSCThe OSC may appoint its own subcontractor(s) to provide certain services for various reasons, including unpredictable demand, a need for frequently changing inventory, or specialized equipment. Examples of OSC subcontractors include:

• Specialty furniture. The OSC may contract with a separate firm to provide and manage furniture deemed to be a “specialty” because of its high-end or specialized (and ever-changing) design. The furnishings contractor will warehouse their inventory, and will deliver it to the OSC’s warehouse or directly to the exhibition site.

RENTS:

Aisle and booth/stand carpet

Booth/stand furnishings

Pipe and drape or hard scape (Walls)

OSC SERVICES

LABOR:

Installation and dismantlement

Graphic design and production

Floor-plan layout

Custom exhibit production

Material handling

Electrical/Utilities

Sign hanging/rigging

Temporary conference “rooms”

Entry and registration area set-up

Networking area set-up

Featured areas (i.e. Association Membership

Booth, New Product Showcase, Social Media Lounges, Exhibit Floor Educational Theatres)

Meeting room sets


327

Official and Specialty Service Contractors CHAPTER 22

• Cleaning. The OSC often engages an outside subcontractor with ready access to a temporary local labor force, as well as cleaning equipment and supplies. In Europe cleaning is often an exclusive service provided through the venue.

• Custom carpet. A custom carpet company often handles custom booth/ stand carpet, i.e., cuts carpet to order, delivers, and may even install the orders. This may be done in conjunction with the OSC, or in competition with the OSC.

• Transportation. Transportation is commonly assigned to a van line, air carrier, or common carriers with which the OSC has a relationship for over-the-road deliveries. The OSC employs drivers and will own a small fleet of trucks and typically handles moving exhibits and materials from the OSC’s warehouse to the exhibition site. Therefore, a transportation subcontractor may be required to pick up the exhibits and materials from an origination point to the OSC’s warehouse or direct to show site, and outbound to a variety of destinations after the event.

Specialty ContractorsA number of other specialty services may be required to complete the exhibition or exhibitor experience, (e.g., audiovisual, florists, furnishings, lighting). The OSC may be able to handle some of these services if selected by the organizer. An exhibition organizer will confer with the OSC, facility staff, or local destination marketing organization to determine which services are best provided by specialty contractors. The offerings of specialty contractors are conveyed to exhibitors via the exhibitor services manual (ESM), through mailings or telemarketing by the appointed firms.

A specialty contractor generally has a representative at the exhibitor service center (ESC) of any large exhibition. At other smaller exhibitions, exhibitors may be directed to a toll-free or local number posted for last minute sales or service.

Contractors not hired by the OSC can compete for business through a bid process, often in response to a request for proposal (RFP) generated by the exhibition organizer. The response to the RFP is known as a proposal. The exhibition organizer compares proposals to each other, and a selection is made on the basis of critical criteria established by the exhibition organizer.

Exhibitor-Appointed ContractorsAn exhibitor-appointed contractor (EAC) is a company selected by an exhibitor to manage and execute specific non-exclusive services at the exhibition. For example, an EAC may design, construct, ship, install, and dismantle the exhibit. When an exhibitor hires an EAC, the EAC must comply with the same rules and regulations as the OSC. For example, the EAC must carry minimum liability insurance coverage and any applicable permits required for the work being performed. The organizer will set an advanced date, typically 30 days, to require exhibitors to provide the names of companies and individuals who will be servicing booth/stands, and proof of insurance coverage. This ensures that the exhibition organizer and the venue can limit access to authorized parties and that the businesses providing services are reputable. EACs must also follow local jurisdictions and show rules, using labor from the appropriate union or labor source.

Audiovisual suppliers

SPECIALTY CONTRACTORS

Florists

Lighting

Marketing support

Photographer

Printing services

Promotional item suppliers

Temporary booth personnel

Computer rental


328


EACs are restricted to performing work within the confines of the exhibitor booth(s)/stand(s) only and are not permitted to work in other areas or solicit additional exhibitor business on the exhibition floor. In the event that several exhibitors at the same exhibition appoint the same EAC, the organizer may grant the EAC a satellite service area on the exhibition floor in which to locate supplies commonly used to support the exhibitors; however, the EAC may not use this area as a base for soliciting new business.

Additional OSC Key Staff/Account TeamThe OSC team plays a variety of roles in the successful execution of the exhibition. Titles and exact responsibilities can vary between companies, and at smaller exhibitions, some OSC managers may fulfill more than one role. For example, the account leader may also act as the account manager.

Account Leader. Typically, a sales representative, the account leader is responsible for understanding the exhibition requirements, the terms of the negotiated agreement, and assembling the right team and expertise to execute the exhibition.

Account Manager. The account manager or executive works closely with the account leader to plan the OSC’s contributions to the exhibition; update the floor plan; compile the ESM or online ordering site; coordinate the design and execution of show management areas; and manage the on-site requests of the exhibition organizer and exhibitors. The account manager plays a pivotal role as the liaison between the show organizer and the OSC team.

Designer. The designer, or design team member, communicates with the OSC team and with the exhibition organizer to create a memorable attendee experience by providing designs for visual elements – from registration elements to entryways, from common areas to the overall exhibition area, incorporating show sponsor and event branding.

Floor Plan Specialist. The floor plan specialist works closely with the account manager and the exhibition organizer to create, edit and revise the exhibit hall floor plan layout.

Figure 22.1. Sample Rendering of Registation Area for Expo! Expo! IAEE’s Annual Meeting & Exhibition 2017 (Source: GES)


329


Operations Manager. The operations manager oversees the planning, coordination, and execution of exhibition site move-in, set-up, tear-down, and move-out. The operations manager also secures labor, oversees daily progress during exhibition move-in and set-up across the OSC team, including the scheduling and supervision of labor. Frequent appraisal of progress and issue resolution is essential to the OSC team and exhibition organizer.

Exhibitor Services Manager. The exhibitor services center or desk is managed by the exhibitor services manager. Exhibitor queries are handled and issues are resolved through the ESC.

Service Liaison or Executive. Members of the exhibitor services team are assigned to specific exhibitors to address queries at exhibitor booth/stands. Team members engage with the exhibition organizer, as appropriate, based on the timing and exhibition requirements. The exhibitor services team consists of service liaisons or executives.

SELECTING CONTRACTORS

The selection of an OSC and additional contractors is an important part of the planning process and the exhibition organizer must establish critical criteria for making this selection. It is much more than simply looking for the lowest bid.

The exhibition organizer should customize RFPs to reflect the unique needs of the exhibition/event, providing the potential OSCs with specific information required to respond with a proposal that meets the organizer’s expectations and goals. Given the integral role of an OSC, due diligence should be utilized during selection of the right partner. Some of the criteria for selection may include the following OSC attributes:

• Knowledge of the exhibition and industry

• Knowledge of and experience with the host facility

• Competitive pricing for exhibitors and the show organizer

• Creative solutions to exhibition and industry challenges

• Adequate personnel and resources to complete the job as promised in the proposal

• Strong experience with positive labor relations

• Past experience with the event or show producer

• References from other show organizers or exhibitors; and

• Bandwidth and resources for the planning phases (pre-, during, and post-exhibition)

OSC Capabilities and Special FunctionsOnce selected, the OSC agrees to provide an established list of services to an exhibition or event. While some of the services are contractually supplied exclusively by the OSC to the organizer and all exhibitors, other services are contracted as optional, or discretionary services, and can be provided either by the OSC or another contractor selected by the exhibition organizer or exhibitor.


330


Exclusive Services. Some OSC functions are categorized as exclusive services for a number of reasons. First, in order to ensure an orderly and on-time set-up and dismantling of an event, a single contractor (in the U.S., it is the OSC) is used to maintain control of the material handling process, including the management of loading and unloading areas and freight elevators, and the operation of all mechanized equipment used to receive and deliver freight.

Secondly, the OSC assumes certain liabilities affiliated with working within a facility. If an unlimited number of contractors were allowed to operate forklifts and other mechanized equipment, e.g., a scissor lift, it would be difficult to ensure the safety of individuals, and to protect the facility from damage (see fig. 22.2.).

Finally, in order for an OSC to provide the exhibition organizer with guaranteed rates for the products and services needed to install the exhibition, and to absorb the costs of required labor, warehousing, insurance, materials, staffing, technology, and other needs, the OSC must be able to expect the revenue from certain lines of business

Optional or Discretionary Services. Other services offered by an OSC, which are not exclusive, are often referred to as optional or discretionary services. EACs offer many of these services as well.

The use of an EAC for discretionary services or products has both pros and cons. For example, exhibitors may realize more competitive pricing in some areas through companies with whom they have established relationships; however, there are generally service fees applied to cover their management. Services such as the rental of custom carpet or furniture through vendors other than the OSC may incur material handling charges when delivered to the exhibition site; whereas the cost, when rented through the OSC, typically includes delivery to the booth/stand and installation labor. In addition, the OSC is likely to have better access to resources on-site or in their local office should problems surface, (e.g., an incorrect logo on a sign or a damaged booth/stand panel). Exhibitors may select an EAC to coordinate their overall exhibit program, in a sense supplementing the exhibitors’ staff. An OSC may function as an EAC, managing the exhibitor program as it travels from one exhibition to the next.

Other ServicesIn recent years, many OSCs have expanded their offerings through acquisitions and new hires, to offer services including measurement, marketing, data analysis, event accommodations, registration and lead collection, and other global services.

Specialty Contractor SelectionWhen selecting a specialty contractor, the exhibition organizer should check references or ask others about the service provider’s record. The OSC and the facility are excellent resources for specialty contractor references; in fact, the facility may restrict selections in certain categories (such as security) to providers on a preferred provider list (usually only one or two options for each specialty contractor type) or an approved provider list (typically has multiple options for each category). OSCs often have recommended partners for services such as photography, floral, and temporary booth staff.

Material handling

EXAMPLES OF EXCLUSIVE

SERVICES

Rental of standard furnishings

Rigging and/or sign hanging (when not an

exclusive service of the facility)

Forklift labor

Electrical and plumbing (when not

an exclusive service of the facility)

Cleaning (unless exclusive to the

facility)

Standard carpet rental

All mechanized equipment (i.e. forklifts, high lift,

scissor lift)


331


Contract Review Securing written contracts from each service provider is important to clearly communicate and document the terms of the business relationship. The contract must document how the service will be provided, in a specified way, at a specified time, and within a specified budget. The exhibition organizer should carefully review the pricing, terms of the agreement, proposed team, and payment terms, and must ensure the terms meet the budgetary and resource requirements of the exhibition.

PRE-EXHIBITION ACTIVITIES

The OSC provides a detailed plan to address key milestones to be achieved during the planning, pre-exhibition, during, and post-exhibition phases. This plan is often posted in an online collaboration site in which other items, such as floor plans, designs, and work orders can be reviewed and requested. Contact information for on-site and last minute orders is important, and mobile phone numbers for staff who will be covering after-hours and weekends is also necessary.

The exhibition organizer and OSC must agree on the overall plan and specific milestones. To ensure success, the exhibition organizer and OSC should establish a good communication plan, and as the exhibition approaches, should communicate more frequently. Regularly scheduled meetings or calls will ensure timelines and deliverables are met. Finally, delays in achieving predetermined milestones will occur and often result in cost overruns and may potentially impact the quality of exhibition execution. Anticipating delays and taking steps to avoid them falls to the exhibition organizer and OSC.

Work Orders and SpecificationsThe OSC generates internal work orders based upon the specifications of the exhibition manager for all creative, production, and delivery elements. Many OSCs use online or web-based collaboration sites to review and confirm work orders with exhibition organizers and to share information between internal departments. Work orders provide the full scope required and timing for delivery of creative and exhibition elements. If the exhibition manager requests a change in exhibition design or scope of work, a change order is written which may affect the cost of producing the element or timely installation. Work orders are distributed internally by the OSC for advance production of elements like graphics and structures, and are used at the exhibition site to ensure installation and delivery of elements in a timely and accurate fashion.

Pre-Exhibition Planning Period The OSC works closely with the exhibition organizer to determine the best plans and configuration for the exhibition based on the exhibition organizer’s instructions and the OSC’s knowledge of the host facility. The OSC typically

Figure 22.2. Scissor Lift (Source: ADVideo, Game Developers Conference 2012)


332


secures approval from the city’s fire marshal for the final exhibition floor plan to ensure the plans are in compliance with local regulations, but ultimately the exhibition organizer is responsible for ensuring compliance with local rules and regulations (see Chapter 15, Developing Floor Plans for more detail).

Other key pre-exhibition activities for the OSC include:

• Designs. OSC provides the exhibition organizer with renderings or sample designs of exhibition signage or banners, entrance treatments and décor for communal areas, and graphics and banner layouts. For exhibitors, the OSC offers booth/stand design for custom fabricated and rental booths/stands, as well as design of graphics or interactive media and other services

• Sponsor online information and ordering. The OSC offers online tools to identify, secure, and review sponsored advertising locations within the host facility as approved by the exhibition organizer

• Customer service for exhibitors. Most OSCs offer customer service via phone, email, fax, and online chat systems in the weeks prior to exhibition installation

Exhibitor Planning and Ordering Pre-ExhibitionA primary responsibility of the exhibition organizer is to help exhibitors plan and coordinate their upcoming exhibition presence. This includes providing sponsorship or listing information about exhibiting companies, registering booth staff, coordinating exhibition set-up activities, and providing access to products and services that will allow the exhibitor to have the most impactful exhibition floor presence.

In order to do this, organizers work with OSCs to compile the necessary information. For many years, this information was provided by a printed manual – the exhibitor services manual (ESM) – commonly referred to as the “show or exhibitor services kit.” With rapid evolution of the Internet and new technologies, (i.e., smartphones, tablets, the vast majority of exhibition information sharing and much of the ordering activity now takes place online, through e-commerce sites).

An online ordering system is a necessary tool for exhibition organizers and exhibition contractors as it aids in pre-exhibition planning and logistics and permits the communication of information to exhibitors, such as important dates, contact information, and ordering options for products and services needed to make each exhibition a success, as well as essential pricing information for budget development.

The e-commerce site is traditionally hosted by the OSC and populated with information compiled by the OSC. The exhibition organizer submits information for inclusion and gives final approval before it is considered complete. Once approved, the site is launched and a link is sent to all contracted exhibitors. However, some organizers prefer to host all exhibitor-related materials on their exhibition or home website, providing links to the online ESM and other information.

Signs and graphics

EXAMPLES OF OPTIONAL SERVICES

Custom carpet rental

Installation and dismantling labor

Specialty furniture rental

Freight transportation and shipping

Prop rental

Booth/stand construction


333


The timing varies based upon numerous factors, but ideally the e-commerce site should be live three to six months prior to the exhibition. Smaller exhibitions or exhibitions that include a furnishings package (e.g., the cost of booth/stand space includes basic furnishings and/or services required by an exhibitor) often forward links closer to the date of the exhibition.

Exhibitor Services Manual ContentRegardless of the method used to transmit the information, the essential contents, (see fig. 22.3.), remain relatively consistent. At a minimum, most sites/manuals include an overview of the exhibition, general information, rules and regulations, dates, important deadlines, and schedules, all of which is provided or approved by the exhibition organizer. In addition, ordering information from contractors and the facility is included. Contractors and other providers often offer financial incentives for placing orders prior to a set discount date; early orders help contractors plan their labor and equipment needs more efficiently, thus saving money.

Exhibitors place orders online or via fax with the relevant party. The exhibition organizer, OSC, or specialty contractor then confirms orders. The contracted party assumes responsibility for service execution and post-exhibition invoicing and collections.

Pre-Exhibition and Move-In ActivitiesFor the OSC and other contractors, the pre-exhibition and move-in period is a complex period, with multiple functions occurring simultaneously, in various locations, and through numerous personnel. The OSC orchestrates this activity and monitors it to prepare the exhibition for exhibitors, other contractors, and, eventually, the attendees. Timing of the various activities is critical in this period, as one delayed function can hold up other functions, and the time lost accumulates. The experienced OSC and a qualified event services team make the complexity seem commonplace and error free. Some of the important activities for pre-exhibition and move-in are listed below.


334


EXHIBITION ORGANIZER-PROVIDEDCONTENT FOR THE ESM

OSC-PROVIDEDCONTENT FOR THE ESM

SPECIALTY CONTRACTOR-SUPPLIEDCONTENT (as required)

FOR THE ESM Exhibition Name, Dates & Location

Schedule of Events

Schedule of Exhibition Move-in & Move-out

Display Rules & Regulations

Hotel Information

Transportation Information

Registration Information and Forms

Exhibitor Listing Information (company and contact

information/products and services sold)

Exhibition Marketing Opportunities

Future Exhibition Dates & Locations

Sponsorship Opportunities

EAC/Third-party Billing Agreement

Audiovisual

Telecommunications, such asHigh-Speed Internet Access

Computer Rental

Electrical & Utilities, i.e., Air, Water, Gas (can be facility or OSC)

Lead Retrieval

Food & Beverage Menus with Order Information

Photographer

Florist

Hostess/Modeling Agency

Booth/Stand Security

Booth/Stand Cleaning Services, when not provided by the OSC

Exhibitor Appointed Contractor (EAC) Form

Badge Scanner/Lead Collection Tool

Lead Retrieval

Payment Information

EAC/Third-party Billing Agreement

Limits of Liability

Local Labor Rules & Jurisdictions

Forms for Ordering/various services and products from the OSC or specialty contractor(s)

Color Brochures of Products

Shipping Information

Shipping Labels

Plotting Grids for Electrical Distribution

Booth Layout

Targeted Floor Plans

Marshaling Yard Informationand Maps

Shipping Addresses

Exhibition Logistics

OSC Product & Services Offered

Sample COI Form

Product Storage Forms

Electrical & Utilities(unless provided by facility)

Booth/Stand Cleaning Services (unless provided by facility)

Exhibitor Appointed Contractor(EAC) Form

Figure 22.3. Exhibition Services Manual (ESM) Content

Warehousing of Materials. The OSC warehouses or stores materials for both the exhibition organizer and exhibitors, and moves the freight to the exhibition for installation. OSCs typically provide 30 days of free warehouse storage to exhibitors prior to the exhibition; sending exhibitor freight to the warehouse helps exhibitors schedule installation labor more effectively, as warehouse freight is delivered to the exhibition floor by an established time.

Marking/Taping Floor. On the first morning of move-in, the OSC “marks” the host facility floor to delineate aisles, the location of each exhibit, entry and exit areas, and other communal areas of the exhibition (see fig. 22.3.). Key points are established through precise measurement and are marked with chalk or tape.


335


Figure 22.4. Exhibit Hall Rigging (Source: Larry Burton, ConExpo 2011)

Installing Organizer and Exhibitor Properties. The OSC is responsible for production and installation of entrance treatments and furnishings/décor for feature areas, aisle signs, and other wayfinding elements for the exhibition organizer in accordance with the contract terms. In addition, the OSC, upon request, will produce and install booth/stand elements, such as hanging signs or trusses, floor-standing elements, display cases, furniture, and graphics.

Establishing the Exhibitor Service Center. The OSC installs, staffs, and maintains an ESC on-site to provide customer assistance. The ESC is the hub of contractor activity before, during, and after the exhibition that also includes counters for other contractors and facility services.

Assigning Service Liaisons. Some OSCs employ staff, also known as service liaisons or executives, who are assigned to be out on the floor working with exhibitors to answer questions, enter orders, review invoices, or respond to requests via a tablet, smartphone, or other hand-held wireless tool.

Hanging Rigging/Signs. The OSC installs hanging elements, (e.g., lighting, audio, or signage, requiring a mechanized lift, unless services are provided exclusively by the facility). The OSC should work with the exhibition organizer to discuss the type and amount of rigging required. Specialty rigging such as theatrical lighting, chain motors, and truss may best be handled by entertainment riggers rather than decorator riggers. The OSC should negotiate with local labor to insure qualified, trained riggers with appropriate skills are being assigned appropriate duties.

Installing Electrical and Plumbing. OSCs may provide the installation and distribution of electrical and plumbing services. Certain facilities, such as hotels or convention centers, maintain the exclusive rights to perform electrical and plumbing; in this case, convention center staff or a designated exclusive provider will perform this service.


336


Installing Booths/Stands. Exhibitors may hire OSCs to provide custom-built exhibits or an exhibitor may work with an exhibitor-appointed contractor (EAC). If an EAC is hired, that contractor may provide exhibit installation for the exhibitor, provided the proper insurance and credentialing information is submitted by the EAC to the exhibition organizer before the deadline.

Handling Materials. Exhibit elements that cannot be hand-carried into the host facility are managed via a material handling service. In U.S. exhibitions, this service is provided by the OSC. Outside the U.S., this service may be provided by the facility, or by a material handling contractor (may also be known as an on-site lifting contractor). This service is designed to ensure the exhibition installation is managed in a timely, efficient, and safe manner. The US formula calculates material handling charges on a round-trip basis, which includes:

1. Exhibitor freight, not sent to the OSC warehouse, is directed to a separate marshaling or truck yard for freight check-in and staging, or in some cases, direct to the exhibition site.

2. The OSC accepts and processes the inbound carriers’ receiving documents, and enters data into the receiving system.

3. Once checked in, the trucks are dispatched to the host facility dock to be unloaded and exhibit materials are delivered to the booth/stand.

4. Once exhibit components are emptied from crates, boxes, or skids, the OSC staff removes empty crates and skids to storage areas or trailers.

Providing Specialized Storage. By request, the OSC provides accessible and perhaps temperature-controlled storage areas or trailers located adjacent to the exhibition hall for exhibitor items that are not needed immediately in the booth/stand.

Installing Exhibitor Rentals. The OSC delivers and installs inventory items ordered by exhibitors both in advance and on-site, such as rental carpet and furnishings.

Coordinating with Specialty Contractors. The OSC coordinates with specialty contractors, such as florists or audiovisual contractors, on the staging and movement of their materials from the unloading areas to their designated locations. In some cases, the specialty contractors can move and deliver their own materials.

Conducting a Pre-Exhibition Walk-Through. Upon the organizer’s request, the OSC and exhibition organizer walk through the exhibition hall and public areas to confirm service delivery and identify items/activities for completion.

DURING EXHIBITION ACTIVITIES

Once the exhibition is underway, the OSC continues to orchestrate activities that allow the exhibition to proceed smoothly. Attendees are rarely aware of the activities that the OSC conducts during the exhibition, but the exhibitors rely on these activities to maximize their exhibition/event presence. Two OSC functions are critical during the exhibition:

1. Storage Retrieval By request, the OSC can secure items from any of the storage areas and

Order-taking and processing

PRE-EVENT FUNCTIONS

FULFILLED BY THE OSC

Labor dispatch

Freight tracking

Arrangements for outbound shipments

Invoice preparation

Answering exhibitor questions


337


deliver these items to the appropriate booth/stand or other location. For example, exhibitors distributing perishable products from their booths/stands may need daily replenishing of the products.

2. Booth/Stand and Aisle Carpet Maintenance Cleaning services vary from facility to facility. Some facilities undertake

cleaning with in-house staff, while some OSCs provide the service or subcontract to a company specializing in this service. Other cleaning services include shampooing of carpets and porter service. The exhibition organizer must know who is responsible for cleaning of meeting rooms and public areas, what charges may be forthcoming for emptying of dumpsters, and other cleaning charges, in addition to aisle and booth cleaning. Cleaning activities must be timed appropriately, and adequate personnel must be available when the staff has only a short time frame for access to the exhibition hall.

POST-EXHIBITION ACTIVITIES

While the attendees leave at the end of the exhibition, the key players in creating that exhibition have a significant amount of work to do before the exhibition is reduced to a historical moment. The OSC is responsible for a number of post-exhibition activities.

Figure 22.5. Post-Exhibition Activities (Source: Lagniappe Studio, Inc.)

Clean-up and Move-out ActivitiesMuch of the activity following the exhibition is devoted to returning the facility to the condition it was in before the exhibition occurred. The exhibitors will be moving out their materials (see fig. 22.5.), and the exhibition organizer may have materials that must be returned to the organizer’s headquarters. The activities that lead to complete move-out include those listed in the following paragraphs.


338


Carpet Removal. Immediately following the exhibition close, the OSC removes carpet from all aisles. Aisle carpet is generally removed in the reverse of how it is installed; with two workers per aisle, from back to front, and with main aisles rolled up before cross aisles. Carpet rolls are then staged out of the way to expedite return of empty containers, and are ultimately loaded on racks by size and color.

Material Handling. OSCs are responsible for staging and returning crates and skids in order to remove exhibit materials from the exhibition hall. The post-exhibition material handling process includes several activities:

• Empty containers are returned to exhibition site if they have been stored off-site. If they are stored on-site, containers are unloaded/unstacked and staged for return. Empty crates, boxes, and skids are returned to exhibitor booths/stands

• Outbound vehicles return to the exhibition facility in order to retrieve exhibitor materials

• Dismantled and repacked crates and skids are loaded on the outbound carriers for shipping from the exhibition facility

• Outbound bills-of-lading or other shipping documents are processed and held for driver review and signature

• Drivers check in at either the marshaling yard or ESC, and are provided with copies of the documents after signing them

Customer Service. OSCs provide customer service and other resources to address any exhibitor or driver/carrier questions, and to ensure that all materials are removed from the exhibition floor by the deadline time.

Transportation Services. Most OSCs also provide their own transportation services, either domestically, or domestically and internationally, to assist exhibitors and exhibition organizers with transportation of materials between destinations. The exhibitor selects the carrier as part of the planning process for exhibitions; they may use an exhibition’s recommended provider or OSC, or may have their own relationship with a logistics provider who moves their materials from event to event.

Dismantle Labor. OSCs dismantle exhibition elements for the exhibition organizer and offer dismantling services to exhibitors to remove booth/stand elements. This labor can be provided by authorized EACs.

Maintain Exhibitor Service Center. The ESC is maintained throughout the post-exhibition process to collect any outstanding exhibitor invoices, answer exhibitor queries, process paperwork, and to monitor exhibitor move-out activities.

Post-Exhibition Evaluation. OSCs provide post-exhibition performance evaluations to both the exhibition organizer and exhibitors regarding the planning and delivery of OSC products and services. Results from the post-exhibition evaluation are shared with the exhibition organizer staff with key improvement opportunities identified for future exhibitions/events.

Exhibition design and décor

FOCUS FOR POST-EVENT FEEDBACK

Traffic-flow patterns

OSC team collaboration and

deliverables

Exhibition planning, management, and

execution


339


Post-Exhibition Payment and MeetingFollowing the event, the OSC issues invoices for services rendered to the exhibition organizer. Ideally, invoices are reviewed in draft or final form at the exhibition site, so that disputes or questions can be resolved with all appropriate parties. Payments are submitted on a timely basis based on terms agreed upon by the OSC and exhibition manager in the contract.

The OSC and exhibition organizer should hold a post-exhibition meeting to discuss feedback and identify areas for improvements. This meeting typically occurs on-site.

U.S. LABOR RELATIONS, RIGHTS, AND RULES

By its nature, the exhibition industry is cyclical. The need for labor and type of labor needed fluctuates as exhibition business rotates from location to location. For example, when the International Machine Technology Exhibition (IMTS) is held in Chicago every other year in early fall, the exhibition occupies 1.1 million square feet (102,193.35 square meters) and features over 1,100 exhibiting companies – this is a top U.S. exhibition in terms of exhibit space. During the “off” years, the exhibitions that are hosted during the same timeframe tend to be smaller than IMTS. Therefore, the demands for laborers increases during IMTS exhibition years and decrease during “off” years.

OSCs cover only a portion of the exhibition/event requirements using full-time employees. Variable needs are more easily met if there is a reliable source for qualified labor. In many locations the only available option to obtain qualified labor on a temporary basis is through the hiring of union personnel. As the exhibition industry developed, the involvement of trade unions expanded and today there are a number of unions that have been designated to undertake a variety of work in exhibition facilities.

Contractor-Labor RelationsToday, a major OSC may be signatory to over 100 individual labor agreements to provide labor to events around the U.S. Collective bargaining is the process through which employees have elected to be represented by a particular union and, as a result, the employer must negotiate with the duly elected members of the union on the terms and conditions of employment. At times the unions negotiate with multiple employers, and at times, an individual employer will negotiate on their own behalf establishing wages, benefits, defined jurisdiction, employer contributions, training, and other specific conditions of employment.

U.S. Right-To-Work Laws. In the U.S., the Taft-Hartley Act of 1947 allowed states to pass right-to-work laws prohibiting closed shops (where a worker must be a union member to work). A right-to-work law secures the right of employees to decide whether or not to join and financially support a union. This is a right that belongs to the individual employee and does not define the exhibition organizer’s or the exhibitor’s ability to use union or non-union labor at any specific venue. If an event takes place in a right-to-work state and a union contractor is involved, union personnel will be used to perform some types of work.


340


Union Labor Agreements. Most OSCs use union labor because of the variability of the labor demands in the industry. The unions provide available labor based upon the needs of the OSC, which vary from exhibition to exhibition. The collective bargaining agreement between the OSC and the union defines what work is within that union’s jurisdiction. If the OSC has a contract to do the work, the terms of the collective bargaining agreement apply to the hiring of labor. The terms of the collective bargaining agreement include a definition of the types of services the union workforce has the right to perform, as well as the geographic scope where the contract terms apply. If the venue is within the geographic area and the work (i.e. movement of freight from the dock to the exhibition floor) is within the defined services, only union labor can perform those tasks.

If the OSC or one of the other exhibition contractors is signatory to a union or unions claiming jurisdiction for certain types of work, the collective bargaining agreement provisions will be enforced by the exhibition organizer and the OSC. This includes the process of how work gets completed and the rules that apply to the completion. Work rules may be clearly defined in a collective bargaining agreement, or they may arise out of interpretations of a provision in the collective bargaining agreement.

An example of a clearly defined work rule would be a provision that states “any work done under the contract by any employee after eight hours in one day will be paid at time and one half.” This defines when overtime is applied – after eight hours in a day as opposed to 40 hours in a week.

An example of an interpretation of a work rule that could affect the job would be, “a two-person crew is required for all work being completed with a scissor lift, except where safety requires a third person.” This requires an interpretation of “safely performing the work.” Work rules are negotiated by the union with the employer/OSC and affect the terms and conditions of employment. This may be the basis for when overtime or double time is paid, it may define the use of certain equipment or define certain tasks that can only be performed by a specific union, (i.e., the installation/ dismantling of a booth, or the loading and unloading of freight.)

Jurisdictions over labor activities or the practices employed can vary by facility and by city. For example, the installation of a hanging sign can involve different numbers of laborers, additional layers of managerial oversight, or differences in the time when straight or overtime labor is incurred. If the hanging sign requires electrical work, the work may revert, at least in part, to electricians. The OSC manages relationships with labor and advises the exhibition as to the optimal schedule and labor team necessary to execute a successful exhibition.

Handling Disputes. Labor issues and labor management can be very complicated. The union steward is responsible for communicating with the OSC’s management if third parties engage in work that is claimed by the union under its jurisdiction. The OSC will advise the exhibition organizer if the issue is a violation of the exhibition rules and needs to be addressed quickly with the third party. Most of the issues raised by labor arise out of the employer/employee relationship and should for the most part be addressed behind the scenes by the OSC and the union representatives.

Carpenters

LABOR UNION EXAMPLES

Decorators

Stagehands

Other members of the building and

construction trades

Riggers

Teamsters

Drapers

Electricians/plumbers


341


There are times, though, when the expiration date of a major labor contract may coincide with the exhibition dates, or be close enough in time to cause concern. The OSC should keep clients informed of any potential for labor action or pending issues with the negotiations, which could affect completion of work on the exhibition.

Local labor rules are included in the exhibit services manual, so that exhibitors may plan and budget accordingly. When disputes arise, particularly related to exhibitor-directed activity, the OSC and union representatives should make every effort to discuss and agree on the jurisdictional duties and appropriate path forward. As needed, the exhibition organizer can be consulted or informed on the status of dispute discussions which arise out of the actions of various parties on the exhibition floor, the effect of which could potentially disrupt operations. Labor is typically a U.S. issue, you will find it to be unfamiliar in venues outside of the U.S. International exhibitors participating in a U.S. show can be frustrated or confused by their inability to perform their own work in their booths, so show organizers should communicate rules clearly, and consider pavilions or turnkey packages for these exhibitors.

OTHER MODELS

Around the world, services for exhibition organizers and exhibitors are provided in a variety of ways, depending upon resources, history, local customs, and health and safety regulations. Terminology and jurisdictions vary by region, and in some cases, by event organizer.

For example, in the U.K. and some other European countries, exhibitor stands are frequently constructed using shell schemes, also referred to as hard wall, made up of posts and panels, laid out on a grid, and then customized with bespoke graphics, fittings, fixtures, and furnishings. It is common to hear the term hire used, rather than rent. Stands generally are sold by cubic content; rarely are line of sight rules enforced.

Pipe and drape booths are used in other countries around the world for ease of set up and affordability, but are not common in Europe. The pipe is a light-weight aluminum tubing and drapery is used to separate exhibit booths/stands. In general, a modular booth or shell scheme is more typical.

Exhibitor program management is offered by both official contractors and stand builders. Program management means that the EAC or contractor handles a wide range of arrangements for the client. For instance, the EAC may do everything from working with the client on messaging, helping them decide which exhibitions to exhibit in, assisting in developing budgets, deciding which elements go to each exhibition, placing all the orders, handling shipping of the exhibit, providing labor of booth installation and dismantling, supervising booth setup at show site, arranging for outbound shipping, etc. All the exhibitor has to do is approve activities, make payments, develop overall strategy, etc. This type of all-encompassing service is one of the benefits of using an EAC. Generally, there is a markup on all the EAC’s services to pay for this, and there may also be separate fees for booth building and design, etc.


342


Carpeting in Europe has traditionally been a thin felt-type carpet that comes in a variety of colors, and used one time. With an increased focus on sustainability there are a variety of reusable flooring options. Aisles are called gangways in some countries.

Raised floorings are common so that electrical can be distributed underneath without ramping. Venues may distribute the initial electrical power sources or mains, with contractors distributing the sockets (outlets in the U.S.).

In both Europe and Canada, material handling is referred to as lifting or heavy lifting, and is often provided by a third party or the venue, rather than the OSC.

In the German Messe system, one organization owns the exhibition fairgrounds and halls; owns and produces the trade shows and exhibitions; and provides contractor services, such as booth/stand construction, exhibitor services, logistics, as well as marketing, advertising and catering.

Only the U.S. utilizes union labor; in other countries labor may be full-time employees of the contractor or exhibit/stand builders, may be provided through the facility, or through some temporary labor source. Feature areas can include custom items that are constructed on-site, often for one-time use.

Global exhibition organizers influence the models used on their shows, as they launch events in new cities or geoclone existing shows for production in new countries. Many hard wall, also referred to as shell scheme, shows are being produced in the U.S.; conversely, a U.S.-based show producer may choose to make their show look, feel, and have rules consistent with the U.S. event when launching shows in other Asia, Mexico or other countries.

SUMMARY

The exhibition team involves a multitude of parties who are expected to work together to provide a compelling exhibition experience for attendees and exhibitors. The OSC plays a pivotal role by providing critical resources to coordinate, manage, and execute a successful exhibition. The OSC is a key partner for the organizer throughout the planning, implementing, and evaluating processes. The exhibition organizer must understand the services that will be fulfilled by the OSC (on both an exclusive and discretionary basis) and those services provided by the host facility or other specialty contractors. The number and type of services provided by the OSC impacts the pricing models for both the exhibitors and show organizers.

The OSC’s diverse offerings provide a flexible approach to service a wide variety of exhibitor and exhibition organizer needs in order to ensure smooth implementation and service excellence for many industries. The OSC’s specialized knowledge of the industry and exhibition, host facility, local labor practices, and planning requirements are critical to ensure a successful exhibition.

As the exhibition industry becomes more global show organizers and exhibitors will encounter a variety of rules, traditions and roles of the different service


343


providers. Navigating the jurisdictions, and identifying “who does what” is key to the success of all parties.

KEY WORDS

account leader

account manager or executive

approved provider list

chain motors

closed shop

collective bargaining

exclusive service

exhibitor-appointed contractor (EAC)

exhibitor service center (ESC)

exhibitor services manager

exhibitor services manual (ESM)

exhibitor services team

gangway

geoclone

hard wall

heavy lifting

material handling

material handling contractor

material handling service


on-site lifting contractor

operations manager

optional or discretionary service

preferred provider list

proposal


right-to-work law

satellite service area

service liaison or executive

shell schemes

sockets

specialty contractor

subcontractor

truss

union steward

DISCUSSION QUESTIONS1. During the exhibition pre-planning period, what are some of the activities that

take place?

2. Discuss the differences between sub-contractors to the OSC and specialty contractors selected by the exhibition organizer.

3. Why are exhibitor-appointed contractors (EACs) restricted to working in a booth/stand only?

4. Discuss the key attributes in selecting an OSC.

5. Discuss the role of the OSC in other countries. Find examples by reviewing websites for exhibitions and venues in other locations.


345

CHAPTER

23

“At the center of every significant change in our lives today is a technology of some sort. Technology is humanity’s accelerant. Because of technology everything we make is always in the process of becoming.” – Kevin Kelly, ed. The Inevitable, Understanding the 12 Technological Forces That Will Shape Our Future. New York, NY: VIKING An imprint of Penguin Random House, LLC, 2016. Print


LEARNER OUTCOMES


1. Select technologies to enhance the effectiveness of the exhibition organizer’s events for attendees, exhibitors and themselves

2. Integrate and differentiate mobile technologies to improve the event experience for the attendees

3. Select the technologies extending the event experience beyond the live event

4. Create enhancements to improve event ROI for sponsors and exhibitors

Corbin Ball, CSP, CMP, MSFounder

Corbin Ball Associates

Scott Craighead, CEMVice President, Exhibitions and Events


Mark HaleyPresident

Smart City Networks

Donna SanfordVice President, Media Sales

Ascend Integrated Media

Richard StoneChief Executive Officer

ACT/EXPOCAD


346

CHAPTER 23 Exhibition Technology

INTRODUCTION

Transformative change came to the exhibition industry in the late ‘90s as the Internet and the world wide web extended the reach, brand, importance, and physicality of events. Even greater change is in process now and will accelerate exponentially in the next three to four years as advances in mobile technology and the mobile web take hold. In tandem with mobile media, social media has altered communication with and interaction between attendees and potential attendees. Additionally, the ability to capture and stream events from physical venues to computers and mobile devices further extends the reach, brand, importance, and physicality of exhibitions.

There are various types of technology applications available to improve the event experience. There are many considerations that the size, location and type of event have on an organizer’s decision on what technology to implement at the event. Having a good understanding of the exhibition’s technology needs will enable the organizer to ask the right questions to determine if the venue has adequate technology infrastructure to handle an event’s needs. This infrastructure includes, but is not limited to, wireless capacity, bandwidth capacity, fiber backbone, adequate cellular coverage by all major carriers, and adequate staff on hand.

WEBSITES

Event websites are extremely important. A good website is a marketing tool and can generate revenue through advertising, provide registration capabilities, and a method for generating valuable data, and supplying information about an exhibition. In fact, websites are the top tool for the purpose of conveying information about an event. Accessible by almost any computing device, the event website becomes the informational hub in advance, during and beyond the event. It is not unusual to provide information about an exhibition a year(s) in advance. It is critical to have an exhibition website that drives interest for attendees and exhibitors.

Responsive web design is the programming method that is applied to a website so the content responds to the user’s needs based on screen size and device type. Also known as adaptive or reactive design, a responsive website allows for content to be delivered in a manner that is conducive to the operating system, browser, user input and device. Because of the considerable processing power of mobile devices, a full view website menu should always be provided, in addition to the selection for the mobile formatted website. Mobile devices are capable of displaying large screen formatted websites if the user feels they prefer the look and feel of the large format.


347

Exhibition Technology CHAPTER 23

Figure 23.1. Sample Mobile Reponsive Site from Expo! Expo! IAEE’s Annual Meeting & Exhibition 2017 (Source: International Association of Exhibitions and Events)

Figure 23.2. Sample Home Page from Expo! Expo! IAEE’s Annual Meeting & Exhibition 2017 (Source: International Association of Exhibitions and Events)

The cost of providing responsive design websites can be a significant budget item; however, there is a high return on investment. It can take the place of a mobile app or be the mobile web content that needs to be available during the event. There are also on-line services which build a responsive design website from the full website. This can be done automatically for very low or no cost at all. Event websites are used through the complete life cycle of an event and beyond. It is not unusual to provide past years’ events in an archive. Unlike mobile web


348


or mobile native applications which are used shortly before, during and slightly after an event, the event website has a much longer duration of relevancy. Many of the same benefits of the event website are the same for the mobile specific tools.

MOBILE APPLICATIONS (APPS)

Generically, apps are short for applications (or software), which can be run on mobile devices, computers, networks, and via Internet-based cloud services. Since the opening of Apple’s iTunes App Store, the word has become synonymous with mobile devices. Mobile apps in exhibitions will be as ubiquitous as mobile apps in society. In fact, the use of apps in the industry is already moving from early adopters to the majority, and events without apps may be unheard of in the future. When marketing an exhibition, it is important to understand the types of apps being used in countries where the exhibition is being held and where the target audience(s) resides.

There are two types of apps, native and web based. Whether the app is mobile, tablet, or desktop or laptop based, both types are applicable. Native apps are programs which have been programmed to a specific hardware and operating system platform. They are downloaded from Apple’s App Store or Google Play. Web based apps are more universal, operating within a web browser of choice on any operating system. Web based apps allow for cloud computing meaning that the data generated can be made accessible to multiple platforms (operating systems, browser, and device types) and the data processing is done by remote servers via the Internet.

Features of Mobile ApplicationsExhibition organizers and application developers are creating apps for nearly every function of exhibition management. Many events start with an app that replicates a printed program or exhibition guide and integrates social media. Lead exchange functionality – the ability to exchange contact information, demographics and buying interest from attendees to exhibitors – is also a common feature of event apps. Many of these apps can be purchased off the shelf from vendors in the industry; however, custom-made apps are also common.

Another product, known as white label software, allows the organization to purchase this software product from another source and apply the customized brand and identity to the organization’s domain. The result is a seamless appearance between applications when utilized by website visitors (see fig. 23.3.).

Benefits of Event AppsFrom speed to production and reduced costs, from environmental issues to revenue generation, there are many benefits for event organizers through the development of event apps. However, the greatest benefit may be in making events more user friendly for the attendee. As the attendees’ daily use of apps increases, their expectation is availability of speedy, useful, and navigable apps while at an event. If they can navigate the grocery store via app, they expect the same ability on an exhibition floor.


349


Real-time Distribution. Mobile guides and event information can be easily and rapidly changed to ensure attendees have instant access to the most current changes, updates and alerts.

• Agenda management, building, and sharing for attendees

• Alerts/conference messaging/updates

• Analytics, (i.e., tracking attendee interests and activities for business intelligence)

• Appointment scheduling for attendees

• Attendee list distribution

• Audience polling

• Continuing education units (CEU) tracking

• Concierge and local area information

• Conference program and schedule

• Content distribution – paper replacement, (e.g., session handouts, course notes, exhibitor literature)

• Content distribution – video,( e.g., YouTube, conference streaming media)

• Evaluations of speakers, sessions, overall conference, and other activities/services

• Exhibit guide with interactive floor plan

• Exhibitor management, (e.g., interface with official service contractor)

• Gaming to stimulate exhibition hall flow

• Housing management, (e.g., interface with housing provider)

• Lead exchange/integration with contact managers

• Marketing and advertising of events and sub-events

• Meetings logistics management, (e.g., attendee management, housing management, budget tracking, meetings specifications, and meeting spend tracking)

• Messaging for events, (e.g., SMS, email, group announcements)

• Networking/social media/friend finding, (i.e., event and location-based)

• Product and merchandise sales with micropayment capabilities

• Registration

• Revenue generation from exhibitor, sponsor and local business advertising

• Exhibition contractor/supplier communication and logistics

• site inspection checklist

• Social media on-site integration, (i.e., for Facebook, LinkedIn, and Twitter)

• surveys

• Ticketing and access control

• Transit tracking, (e.g., flight tracking, light rail times, and other business travel tools)

• Wayfinding and mapping through exhibition hall, venue, nearby attractions, city

FEATURES OF MOBILE APPS FOR EXHIBITIONS AND EVENTS

Figure 23.3. Features of Mobile Apps for Exhibitions and Events

Location-based Services. Mapping and global positioning system (GPS) tools can help attendees find their way to a venue and the surrounding neighborhood. Indoor positioning systems (IPS) are good at finding one another while at the exhibition and, locating a booth in an exhibition hall. Customized messages can be pushed to attendees based on their demographics. Indoor location requires more specific implementation than GPS which is a global system where the signal strength is not good enough yet for indoor use.


350


Environmentally Friendly Events and Apps. Exhibition organizers are becoming more environmentally friendly by reducing and eliminating many traditional pieces of communication. For example, printed program guides, session handouts, course notes, exhibit directories, exhibitor brochures, surveys, and event specifications are being eliminated to reduce the carbon footprint of the exhibition. Mobile device documents are also lighter, easy to use, quick to access, and eliminate costs of printing and shipping.

Enhanced On-site Networking. One good contact can be worth the entire price of attending an event, and social mobile networking apps and location-aware apps help bring people together to make these contacts. Event and venue managers are now monitoring the event tweet stream, (i.e., Twitter comments, around a specific event, as the fastest way to be notified of problems or make other announcements).

Real-time Feedback. Mobile surveys are automatically tallied in real-time while the information is fresh and, of course, corrections are possible. Mobile polling via text messages, mobile-web based polling tools, or even Twitter can eliminate the need for often-costly audience polling keypads.

Better Analytics. Mobile apps have the ability to track page views and other attendee activity, making the information obtained invaluable for improving current and future events. Exhibitors, too, can determine interest in specific products and services.

Cost Reductions and New Revenue Streams. In addition to reducing costs, apps provide new potential revenue sources from exhibitor and sponsor advertising. Several mobile companies have developed business models that eliminate direct costs to exhibition organizers. Rather, these companies rely on revenue from exhibitor sponsorships.

Common Industry AppsIncreasingly, apps are available for nearly everything. However, in the exhibition industry, apps do tend to fall into three major categories: custom-designed or off the shelf apps that perform multiple functions, low-cost or do-it-yourself apps, and third-party apps provided by venues and official service contractors.

Swiss Army Knife Apps. Named for the magical pocketknives with multiple foldout tools that perform nearly every imaginable function, Swiss Army Knife apps also perform many functions. These apps usually already exist, or are custom-made for specific exhibitions. Development costs can range from free to thousands of dollars, with annual licenses for multiple exhibitions costing even more. As with most technology innovations, however, the prices are continually being reduced.

Low-cost and Do-it-yourself Apps. The rise of open source app development kits is leading a trend toward one of the hottest areas of mobile development – low-cost, do-it-yourself, exhibition apps. For example, some apps may be free for the first 500 users, while others may charge a low monthly fee. The price of the app is determined by the number of user capabilities, (i.e., the more available functions, the higher the price).

Program schedule

EXAMPLES OF “SWISS ARMY KNIFE” APPS

Personal agendas

Social media integration

Group and subgroup announcements

Course notes/handouts/session

visuals

Exhibition guides

Surveys

Polling

Ticketing

Exhibitor material

Gaming


351


Venue-based Apps. Some developers have created apps for individual convention centers that are then passed on to exhibition organizers free-of-charge. These venue-based apps are typically as feature-laden as any custom app. Revenues are derived from local restaurant and attraction advertising.

Official Service Contractor Apps. Exhibition organizers and attendees are not the only ones benefiting from mobile app technology. Exhibitors can often place and track their booth/stand orders via mobile devices, eliminating the need for staff to leave their booth/stand for a long walk to a service desk to check delivery of shipments.

Event Apps in Other Countries. When producing an exhibition, it is important to know and understand what apps are being used in the country. For instance, in China, WeChat is a web-based app used not only for personal connections, but professional connections as well. Ninety percent of web users in China are using the app as their top choice for daily work communication. WeChat is being used as an exhibition’s official account for providing information, creating engagement and interaction, and providing innovating services to exhibitors and attendees.

Figure 23.4. Sample WeChat Screen Shots (Source: http://www.scmp.com/print/tech/apps-gaming/article/2090472/wechat-top-workplace-communications-app-90-cent-chinese?amp%3Bamp%3B=)

LEAD RETRIEVAL

The importance of lead exchange for exhibitors and sponsors at exhibitions cannot be overstated. In many cases, a lead-retrieval system is the only way these organizations can tally their return on investment.

Though the basics of lead-retrieval technology have not changed much in 40 years – it has been one-way (attendee to exhibitor) and booth/stand-based – mobile technologies are making a push here, too, and traditional lead exchange techniques will no doubt be obsolete within five years. Two technologies are currently changing the way information is exchanged on-site.


352


Quick Response CodesQuick response (QR) codes were developed to minimize the input of long website addresses on small mobile devices. QR codes can be used by attendees to gather information from coded signs, booths/stands, exhibitor products, and course notes. QR codes tend to be awkward, however, as users must first launch the app, correctly position the code for the reader, and address lighting issues. Also, this system remains a one-way information communication system.

Near-Field CommunicationsNear-field communications (NFC) is the future of lead retrieval – and so much more. NFC is a cross-mobile platform allowing a quick, standardized exchange of contact information, as well as micro-payment (i.e., very small payments made online via a service, such as PayPal) and mobile commerce capabilities. Contact information can be shared – two ways – simply by touching two smartphones together. Attendees who want course notes will simply tap the sign at the door to the conference session. Product information from exhibitors’ booths/stands is also just a tap away, as is access to ticketed events. With the tap of a phone, users will be able to pay restaurant bills, vending machines, parking meters, and subway turnstiles.

Citywide conference credentialing is also possible, allowing attendees access to public transportation, local attractions and restaurant discounts through badges with NFC chips (smart badges). These badges also allow exhibition organizers to truly measure their events’ economic impact on a local economy, thereby increasing negotiating strength for future bookings. The use of smart badges also benefits exhibitors with the ability to measure leads by the booth/stand representatives, and even by product.

Fixed Beacons: BLE (Bluetooth Low Energy) devices (known as iBeacons or beacons), working with mobile, desktop and browser based event apps, can measure crowd flow and individual participant movements. Beacons are a subset of IPS (indoor position system) interactions and are based on location. With beacon technology, not only is every touch trackable, every movement can be as well. Some of the capabilities include:

• Heat maps: The measurement of crowd flow through an exhibit hall to see where the hot spots are and where they are not

• Dwell times: Beacons can measure the time an attendee stands in front of a booth – if an attendee spends 15 minutes in a booth, they are likely more interested in the product than if they were just walking by. This list of interested booth visitors is very valuable to the exhibitor, but, from the other side, a list of the exhibitors and the time spent would be useful to attendees as well

• Session attendance for CEU (continuing education units) tracking: This is very important for medical, pharmaceutical, some financial events and other meetings requiring continuing education, and is also valuable information about attendee interests in general


353


• Networking: It is possible to use this technology for attendees to detect people of like interests who are near them for networking purposes. These interests are also a valuable component of attendee interest profiles

Wearable BeaconsWearable beacons can do everything that fixed beacons can do and more. About the size of a U.S. quarter, they are inserted or attached to badges and can work independently from mobile apps. The attendee does not need to download a specialized app and have their mobile device charged with Bluetooth or other communication technology on for them to work. The result, often, is a much higher use utilization rate, but at a higher cost.

Wearable beacon technology can be one-way or two-way communication depending on type and features desired. For example, attendee specific graphics and marketing messages can be displayed as they step up to a data display in a booth. Networking is a good example of two-way communication.

VIRTUAL/AUGMENTED/MIXED REALITY

Google, Facebook, Samsung, Microsoft, and other technology companies have each invested billions of U.S. dollars in developing virtual reality (VR – immersive multimedia) and/or augmented/mixed reality (AR – a layering of computer-generated sensory input onto real-world views). Although this will take a few years to fully develop, these tools are blossoming at events and trade shows. VR is the closest thing to the Star Trek Holodeck and, as these tools develop, these virtual approximations will become increasingly realistic. Here are some of the ways this will play out for events and trade shows.

Virtual Site Inspections and Tours:Many hotels and destinations are moving to VR to give viewers a more engaging and realistic hotel/venue site inspection experience compared to old fashioned hotel websites. Exhibitors are recognizing that VR can give booth attendees an incredibly immersive and engaging booth experience. VR headsets will be used to demonstrate products at trade shows in a more realistic, interactive and engaging manner while minimizing the cost to ship physical products to a show and reducing the amount of floor space needed.

3D models of exhibit booths, stage sets, and other event setups will be replaced by 3D virtual walkthroughs. These walkthroughs can be saved and compared to future designs.

Room diagramming is an indispensable event planning tool. One of the many benefits is the ability to sell the dream – to visualize the space before it is actually set according to your specifications. The major room diagramming software firms have developed 3D renderings of diagrammed room sets. It will be a relatively short step to make this available in VR enabling the viewer to put on the VR goggles to virtually walk through the space.

VR will redefine virtual meetings. Instead of watching a webcast, VR could make it seem to the remote attendee as if he/she were actually in the meeting room (or any other location).


354


Mobile, social telepresence robots (such as DORA – Dexterous Observational Roving Automaton) may eventually become virtual attendees at trade shows and events. These remote robotic VR sensing units (virtual attendees), on a basic level, are already here.

This type of technology is in its infancy. The necessary hardware that will provide a more seamless experience has yet to roll out. Significant advances will occur over the next several years and it seems inevitable that VR and AR tools will be prolific at exhibitions.

Wayfinding, or indoor mapping, provides great benefits to exhibition organizers, attendees and exhibitors. Traditional GPS is limited indoors, and standard W-iFi triangulation has limitations to within 100 feet (30 meters) of accuracy. New technology is much more precise positioning – as fine as three feet (one meter). (See fig. 23.5. for how this precise positioning will aid the exhibition organizer and attendee). Most current mobile phones have the technology to provide ten feet (one meter) of indoor locational accuracy. This technology has not been accessible. It is only a matter of time before IPS is a built-in feature of hand held devices.

BENEFITS OF WAYFINDING OR INDOOR MAPPING

• Allows for personal navigation through a venue/exhibition hall

• Optimizes routing

• Locates friends/finds contacts and establishes networking

• Delivers content by location, (e.g., exhibit discounts and video)

• Optimizes exhibition hall viewing by product category

• Provides exhibition hall hot spots

• Offers traffic flow analytics

• Life safety

Figure 23.5. Benefits of Wayfinding or Indoor Mapping

LIVESTREAM OR CONTENT CAPTURE

While some professionals in the industry still fear cannibalization of their events by virtual technologies – online representations of events – this has not proven to be the case. Most exhibition organizers have accepted the technology and its ability to expand the audience for their events. The question to be answered now is whether to stream the content live from the physical event or capture content for future broadcast.

Content CaptureConference recording has been around for decades, starting in the days when audiocassettes of presentations were mass-produced on-site and sold to


355


attendees. Technology advances have made it possible to quickly and relatively inexpensively capture and synchronize speaker videos, audios, and presentation visuals for later rebroadcast. These rebroadcasts can be as simple as on-demand session viewing on YouTube, or as complex as a full-day online extension of an event, complete with live speaker question-and-answer (Q&A) sessions and an exhibitor presence either through virtual booths/stands or video demos. Captured content can also be used throughout the year as monthly webinars to both educate the audience and promote the next event.

Livestreaming ContentLivestreaming event content will become commonplace in the near future as the industry is increasingly dominated by online extensions or hybrid events, along with more companies producing virtual and hybrid events, (i.e., those combining a physical audience with a remote audience). With the lowering price of high-definition (HD) video cameras and increasing access to reliable broadband, the number of such productions will fuel future expectations of access to content by those who cannot attend the physical event.

Livestreaming services provide easy methods to stream conference video to remote attendees with a range of pricing plans from free to quite costly. Increasingly, interactive tools such as polling, remote question and answer (Q&A), and embedded social networking help engage and connect attendees to speakers, exhibitors, and one another.

Free options for livestreaming exist, and many companies have emerged to provide content capture and streaming services at reasonable costs. In some cases, the costs can be offset or eliminated through the resale of the meeting content or through sponsorships. Figure 23.6. provides a list of the benefits of livestreaming and captured content.

BENEFITS OF LIVESTREAMED AND CAPTURED CONTENT

• Ability to extend the reach of the event to a larger audience in real time

• Ability to deliver content after the event, on-demand, as a refresher for those who attended the session

• Opportunity for attendees to access the content of missed sessions

• Opportunity for those unable to attend the event to receive the content and education and, perhaps, CEU credits

• Marketing opportunity to show future attendees samples of the excellent content they will receive by attending the next meeting

• Opportunity to add fresh, compelling website content throughout the year for education and as a build-up for next year’s event

Figure 23.6. Benefits of Livestreamed and Captured Content


356


Second Screen TechnologySecond screen technologies allow attendees to interact with onscreen visuals on individual tablets and other mobile devices. This technology can provide very precise details of engagement, of individual attendee interests and responses to built-in polling and survey data.

EVENT TECHNOLOGY IN THE FUTURE

The speed with which technology advances makes predicting the future difficult, but some certainties exist. Mobile apps will continue to be popular for the next few years. Tablet computing will similarly be on the rise, and will cause Wi-Fi/broadband congestion issues as hundreds, or even thousands, of attendees and exhibitors attempt to simultaneously connect, view, and download from the same broadband signal. Social networking will give rise to social gaming – even at events. Video will replace print as a form of marketing and content delivery.

Mobile AppsThe dominant language for app development in the future may change. Both native mobile apps and the latest version of HTML have benefits and drawbacks. HTML is the current standard programming language used to describe the contents and appearances of web pages.

Native Mobile Apps. Many people prefer the customized look and feel of native mobile apps built specifically for a brand-name smartphone or tablet. Other factors must be considered with the evolution of products and services offered by the various vendors of mobile devices. Native apps are widely adopted in the trade show environment due to the reliability of native built content in places where wireless Internet service can be limited. Native built content only requires wireless or data connectivity to initially download or update.

Cost Considerations. Building customized native apps for each phone can be more expensive and requires much more programming expertise than the building of a single website app that can be viewed by all smartphones.

Native App Problems. Sometimes Android apps simply do not work because it is installed on hundreds of smartphone models with different screen sizes and processor speeds. The low-end, free smartphones do not have the power to run certain apps. Apple has complete control of their app marketplace which can be problematic if the rules change.

Approval Process. It takes time for approval for native apps through the various app retailers. For example, the retailers for smartphone or tablet apps usually take up to a month for approval of a customized mobile app and available to consumers for an additional charge.

Download From the Web. Unlike previous versions of mobile web apps, users can download the mobile web pages to smartphones or tablets when an app is built using the latest version of HTML. Much like native apps that require download from the app store, mobile web allows for storing of the information to be retrieved regardless of Wi-Fi or cell tower communication. Mobile web will give a much closer native app experience than previous mobile web versions.


357


Location Access. The latest version of HTML supports geo-location so that users can access mobile websites that access their position (a benefit that formerly was restricted only to native apps).

YouTube. Increasingly, YouTube and other social publishing tools will be used to promote exhibitions and engage attendees through video, as video is quickly becoming the future of the Internet – both from a marketing and content perspective. However, as much as Internet users watch video, they tend to not watch pure advertising, so the content must be just that – content.

Speaker Videos. Encourage speakers to make short videos describing their sessions, and upload to YouTube, the world’s second largest search engine, and potentially one of the most promising event promotion tools ever (see fig. 23.7.).

TIPS FOR CREATING A VIDEO

• Keep the video short (no more than three minutes)

• Choose a compelling thumbnail image using the posting tools YouTube provides

• Record in high definition (HD)

• Link or embed the video to the event site

• Enable the comments and sharing options

• Rename the video using meaningful names, (e.g.,”XYZ-speakers.mov” is better than “38404949.mov”)

• Use a keyword-laden, meaningful description of the video

Figure 23.7. Tips for Creating a Video

Social GamingSocial gaming tools will be used to engage face-to-face and virtual attendees. Gaming is engaging and fun, and encourages specific behaviors in attendees. Location-aware programs can move people to various parts of an exhibition floor to get them to check in and win points. Scavenger hunts encourage networking with exhibitors and one another.

Social gaming is being used to engage virtual and hybrid meeting attendees. For example, the Cisco GSX hosted a hybrid conference that had 19,000 virtual attendees, 13,000 of whom were active players of Threshold, an interactive espionage immersive-reality thriller.

TabletsTablets are the new medium for accessing data at events. Tablets, a natural for business travel, are lightweight, highly mobile, and intuitive. The larger screen allows for easy readability and more area to display material in a page-like format. These items are easy to access while standing in an exhibition hall and have the ability to manage a wide range of data. Tablets will be used increasingly at events for interactive activities (see fig. 23.8.).


358


Figure 23.8. Uses of Tablets On-Site

USES OF TABLETS ON-SITE

Course NoteDistribution

SpeakerQ&A

Surveys

InformationKiosks

Interactive ExhibitFloor Plans

ProductDisplays

ConferencePrograms

On-site Blogging/Social Networking

LeadExchange

Easy-to-Access Wi-FiFree, basic Wi-Fi broadband Internet access is expected by exhibition organizers, exhibitors, and attendees in meeting rooms, guest rooms, lobbies, and throughout a convention center. Access is often viewed as a utility similar to lights and water. However, this does not mean unlimited access.

Internet bandwidth can be expensive and most venues are unable to handle large, unexpected demands. For example, if 500 event attendees use their smartphones or tablets to access high definition (HD) video simultaneously, few venues in the country could accommodate this demand without prior special arrangements. Likewise, if a group needs wider bandwidth, a dedicated IP address, or other Internet services, expect an additional charge. However, basic throttled access (i.e., a minimum of 500kb/second download, which is fast enough to access email and limited video streaming) is expected to be complimentary. The Events Industry Council (EIC) has developed a tool for estimating the amount of bandwidth necessary based on the number of users, different uses (email and simple web surfing, web applications and streaming audio, or instructor led web training with large file transfers) and whether most attendees will have multiple devices. (“Industry Insights – Event Bandwidth Estimator.” Events Industry Council. 2017. Web. Sept. 2017.)

BIG DATA

Big data can simply be defined as data that may reveal trends or behavior patterns for the prediction of a future action(s).

As most know, the U.S.-based retail giant Target, correctly predicted that a teenage girl was pregnant in 2012 by sending baby coupons to her address (New York Times, Charles Duhigg) based on her buying habits and other data. Target uses data analytics and a smart statistician, Andrew Pole, to put together the data elements for prediction. There is a lot of information that goes into predictive analysis. There can be 10-50 layers (data sets) or more of data that allow for an educated guess at a future action. For example – identification number, male/


359


female, age, occupation, credit card use, other historical actions (unscented lotion purchase, for the previous Target example) are just a few of the data sets layered to drill through to an accurate prediction.

It remains to be seen whether event data by itself provides enough information to definitively predict the future behavior of an exhibitor or attendee. There will need to be other relevant data sets layered on top of exhibition data. Not only purchased data about a company or individual but also micro-observations like how long was the delay when filling out a registration form. It will take significant observations and data to finally move towards purchasing and/or trending behaviors of attendees or exhibitors.

Financial services, pharmaceutical, and technology companies are some of the key vertical markets pushing the events analytics envelope. Tracking the wealth of on-site behavior and incorporating into customers’ profiles allow a more precise measure of the exhibition’s ROI and helps companies make marketing decisions with a better view of customer needs and preferences. As the trends mentioned above mature, costs come down and become more accessible and routine for a wider range of events.

Additionally, new data options including artificial intelligence and predictive analytics (making statistically-based predictions of behavior through analyzing current and past behavior) will become available. Exhibition organizers and marketers will be able to make the best choices based on the data.

Data management systems are maturing to where integration is a much simpler task. With state-of-the-art cloud-based event technology systems and advanced APIs (application programming interfaces), it is now possible to collect and analyze on-site data and connect them with CRM tools– closing the loop from a marketing standpoint. Interoperability is at the center with much of the change that is happening. Consortiums of newer cloud-based event technology companies are working together to share data and work as one.

Finally, with advances in cloud-based computing and APIs, event technology companies have been able to integrate with these companies to greatly improve marketing efficiency. Technology is now available to make data actionable. Exhibitions can now be integrated into a unified marketing program.

SUMMARY

Exhibition technologies are many and varied. The focus of this chapter has primarily been on mobile technologies that are truly going to transform the exhibition industry. Technology is rapidly evolving and the contents of this chapter are but a snapshot in time. Exhibition organizers are encouraged to be alert for changes in technology that may be applied to events and keep the industry on the cutting edge.


360


KEY WORDS

adaptive design

app

application programming interface (API)

augmented/mixed reality

big data

Bluetooth low energy/ibeacons/beacons

cloud computing

dwell time

fixed beacons

global positioning system (GPS)

heat map

high-definition (HD) video

hybrid event

Hypertext Markup Language (HTML)

indoor positioning system (IPS)


livestreaming

mobile application

native mobile application

mobile polling


predictive analytics

quick response (QR) code

reactive design

responsive web design

smart badge

venue-based app

virtual reality

wayfinding

web based apps

WeChat

white label software

DISCUSSION QUESTIONS1. What are the best practices on website design to engage the audience and

insure usage on any device?

2. How does website design affect purchase decisions for attendees and exhibitors?

3. What are the advantages to utilizing the latest version of HTML for development of mobile apps for an exhibition?

4. What advantages and disadvantages might be realized when attempting to create custom apps for an exhibition that allow attendees to access exhibitor information and location via mobile devices?

5. Compare and contrast the mobile apps available to exhibitors and the mobile apps available to attendees at a large consumer show.

6. What are some considerations when considering live streaming?

7. What are the big data required to move towards predictive analytics?


361

CHAPTER

24

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” – Maya Angelou

AUDIOVISUAL SYSTEMS ON THE EXHIBITION FLOOR

Al Dyess, CEMChief Executive Officer, Corporate & Events North America

PRG – Production Resource Group, LLC

David GrindleExecutive Director

USITT United States Institute for Theater Technology, Inc.

LEARNER OUTCOMES


1. Discuss the options used in creating audiovisual solutions

2. Integrate the vocabulary in describing audiovisual technologies and applications

3. Articulate the desired outcome or effects to a potential audiovisual systems supplier in preparing a request for a proposal

4. Integrate audiovisual technology in the exhibition to draw attention, enhance way finding, and articulate messages


362

CHAPTER 24 Audiovisual Systems on the Exhibition Floor

INTRODUCTION

Exhibition organizers and exhibitors only have one opportunity to make an impact on the attendees. Audiovisual (AV) tools – lighting, sound, video, and special effects – help maximize the exhibition organizer’s or exhibitor’s success by drawing attention, expressing the desired message, and increasing the emotional impact of that message. AV technology helps attendees to see, hear, understand, and feel the intentions of the exhibition organizer or exhibitor. Understanding the application and impact of AV tools helps exhibition professionals create better experiences for attendees.

AV SYSTEMS ON THE EXHIBITION FLOOR

AV on the exhibition floor aids in the creation of the message and ambiance delivered via lighting, projection, video, audio, or other special effects. Although the term AV primarily refers to the hardware required (e.g., sound systems, lights, monitors, projection systems, touch screen systems, holographic and 3-D technologies), an all-encompassing AV solution also may include the management of the content delivered (e.g., messages, scripts, video and images) and the software required to control the content. The ultimate goal of incorporating AV technology in the exhibition increases the emotional component of the attendee experience.

PRIMARY APPLICATIONS OF AV TECHNOLOGY

The common uses of AV technology range from the simple to complex. Below is a list of commonly used options:

• Lighting and projection create a desired tone or mood in a specific area or exhibit. Projection may include static images such as logos or video clips

• Monitors or touch screens deliver schedule, location information, exhibition news, and pertinent interviews

• Presentations include oral presentations, PowerPoint files, or pre-recorded video content describing a product or service that the exhibitor is representing

• Monitors stream exhibition-related social media content

• Messaging highlights key products or messages

• Advertising delivers supporting information on product benefits

APPLICATIONS OF AV HARDWARE

AV technology is continually changing with the emergence of hardware and software products, creating new capabilities and reducing the cost of achieving specific effects that may have previously been cost prohibitive. With these constant changes, an exhibition organizer may find staying up-to-date on technologies, capabilities, and price points nearly impossible. Therefore, the most time-efficient and cost-effective means of implementing AV hardware in the

Lighting

AUDIOVISUAL TOOLS

Sound

Video

Special effects


363

Audiovisual Systems on the Exhibition Floor CHAPTER 24

exhibition is for the exhibition professional to define the type of experience to be created. A partnership with an AV specialist who can then design the experience and specify the necessary equipment.

A thorough understanding of the available AV options for the exhibition allows the exhibition organizer to improve communication with an AV designer, and to utilize more efficient and cost-effective tools that encompass sound, lighting, various types of media and interactive displays.

AVAILABLE AV OPTIONS

SoundAudio effects are used as reinforcement or enhancement of visual media and the spoken word. Powered speakers, wired or wireless microphones, and a mixer are used for audio effects. In simple terms, the audio mixer equalizes certain frequencies to produce better sound or to eliminate feedback. Theaters, conference rooms, and areas where sound must cover more than 25-cubic feet (.708 cubic meters) of space need sound amplification in order for the audience to hear. An AV technician is necessary; the technician configures and installs the equipment (e.g., speakers placed in a location that do not conflict with the microphone of the presenter).

Static Lighting Static lights are mounted in a fixed position and are a traditional approach to lighting. Static lighting is used to highlight graphics or kiosks, projecting patterns or logos onto surfaces, and brightening or tinting a specific area. Static lights must be focused prior to the exhibition’s opening. A lift is required when the lights cannot be accessed by ladder. Additional space is required to accommodate the lift and must be integrated into the planning. Technical personnel must install and adjust lighting as dictated by local jurisdictional rules.

Intelligent or Moving Lights Lights mounted to an automated yoke that can tilt and pan are known as intelligent or moving lights. These lights typically include multiple gobo effects (e.g., used to display logos or graphic patterns) and have color-mixing ability. If you would like custom gobos please consult with the AV provider as they will need to be ordered in the proper size for the instrument.

Intelligent fixtures come in the same styles as static lights. More advanced instruments can change colors, focus, or even integrate video signal. Intelligent lights are best used to draw attention to an area through color changes or gobo changes. If producing product displays in a booth, intelligent lights can maximize impact while conserving the number of instruments hanging. The movement of intelligent lights can also draw the eye of consumers to a booth or area so long as the visual effect is impactful. Moving lights require a lighting programmer to organize the lighting effects and movement; moving lights do not require focusing prior to the exhibition opening.


364


Figure 24.1. Gobo Effect (Source: Lagniappe Studio, Inc.)

Additional Notes on LightingLights can be mounted in a number of ways. In exhibit booths, they are commonly incorporated into the exhibit structure or suspended from a truss rig within the booth/stand and apply to either static or moving lighting applications. Exhibit organizers may choose to use lighting to highlight a space at the expo, light walkways, or draw attendees to or away from an area.

LED lighting comes in many forms. Some forms such as rope lighting allow flexibility when creatively incorporated into the structure. More traditional fixtures that can be found in incandescent lighting are also available in LED. The ellipsoidal, Fresnel, and strip lights that highlight a space with incandescent sources also can be found in LED format. The lower heat output with similar intensity allows lighting instruments to be safely placed in proximity to attendees. Many LED lighting instruments allow for multiple color control, automatic color shifting, or wireless networking which allows for a variety of creative uses. Some also come with internal batteries so that you avoid the trip hazards of power and control cabling.

Video MonitorsA video monitor is a digital display for the playback of video or data transmitted from a DVD player, computer, or other source through cabling, Wi-Fi, or a Bluetooth connection.

There are different hardware options:

• Single screen sizes range from 17 inches to 103 inches (or 43.18 cms to 261.62 cms).

• Modular screens can be utilized (e.g., stacked, arranged in a grid, or lined up in virtually any configuration) to create larger displays or designs outside of the standard 16:9 ratio, which is also referred to as the aspect ratio, representing the horizontal measurement proportional to the vertical measurement.


365


Video monitors can be used for presentations, looping media, and digital signage.

The media must be formatted to fit the screen or configuration of screens, and a structure may be needed to position the monitors. Content may be delivered via a computer attached to the monitor, or via media inserted directly in to ports on some monitors.

Rear-Projection DisplaysRear-projection displays allow media to be displayed via the projector located behind the surface upon which the image is displayed. Projectors range from 3,000 to 20,000 lumens, (i.e., a measure of brightness). Selecting the optimal projector is based on projection distance, amount of ambient light around the screen, and other logistical factors. Presentations and displays require rear-projection when a hidden projector is desirable (e.g., a large general session in a ballroom). Most projectors require a specialist to install, configure, and focus them.

Front-Projection DisplaysFront-projection media is displayed via a projector located in front of the surface upon which the image is displayed. Projectors range from 3,000 to 20,000 lumens. Selecting the optimal projector is based on utilization, projection distance, and amount of ambient light in the area of the screen.

Theaters and large display walls typically require front-projection. Most front-projectors require a specialist to install, configure, and focus the projector.

Projection SurfacesProjection surfaces refers to the material upon which an image is projected. Front-projection may occur on any solid surface. The color and texture of the surface will likely impact the sharpness and quality of the image being projected. Rear-projection surfaces must be opaque. While some fabrics may have the opacity to serve as a rear projection surface, the best surfaces are seamless and typically made of a plastic or polymer material. The choice of projection surface may be incorporated into a booth or display so as to carry the theme of that space throughout. Projection surfaces work best when pulled taut in the case of a screen or when the surface is solid.

There are many other items which can be projection surfaces when wanting to transform a space. Waterfalls, atmospheric effects such as manufactured fog, and other similar surfaces may also be used for both front and rear projection. While these require greater planning, the impact can leave attendees talking about it for years.

Touch ScreenA touch-screen display allows attendees to interact directly with the screen to change and select content. Two types of touch-screen models are presently on the market. A single-touch screen functions much like a computer mouse while the multi-touch screens allow for pinch, rotation, and zoom functions, (e.g., similar to a tablet computer or an iPad) (see fig. 24.2.).


366


Figure 24.2. Touch-Screen Station (Source: a2z, Inc.)

Units range in size from 19 inches to 103 inches (or 48.26 cms to 261.62 cms) and come with single- or multi-touch technology. Units can be positioned next to one another to create larger interactive surfaces. Tablet computers and iPads can be used to create smaller or mobile units. Touch screens allow delivery of multiple types of media or multiple topics on a single unit where the attendee is in control of choosing what is viewed. Touch-screen software and/or media must be configured to the manufacturer’s specifications.

Social MediaSocial media can be displayed on monitors that auto-refresh, so the screen is continually updated to current exhibition messages. Virtually any type of monitor or projector can display social media. Social media integrates real-time attendee comments or participation into the exhibition or exhibit experience. In addition to hardware, software, and Internet access, content must be monitored continuously, or at a minimum, prior to posting, to ensure only acceptable content is posted.

Other Special EffectsLasers and image mapping are also available. Special effects like these may be used for creating a memorable visual impact. These effects may also be used to transform spaces. Laser signage allows for a high visibility image that can be animated while image mapping can allow one surface to take many shapes, textures, and images. Front and rear projectors can be linked together to produce one image over a large space, often over 100 feet wide. Special effects can be customized, based on effect desired, available space, and budget. There are many considerations for creating these effects as often the technology to operate them must be stored and secured near the effect.


367


Figure 24.3. Image of 135-foot Projection Screen (Source: Grindle)

DESIGNING AV FOR THE EXHIBITION

Designing AV for the exhibition requires that the exhibition organizer work with a contractor to express the goals and ideas for the exhibition, and have the AV contractor suggest the best technology within budget. Exhibition organizers should not feel they have to know AV technology; however, it is important to know the terminology and have a basic knowledge of AV.

The process for creating the AV experience involves several steps for a well-articulated AV design:

1. Identify the Objective. What is the desired impression and impact to be achieved? For example, should the audience leave energized, informed, or ready to take a specific action like executing an order for the product or service provided by an exhibitor?

2. Know the Sophistication Level of the Audience. Know what sort of AV exposure attendees have experienced in the past prior to creating a new plan. Given this understanding, clearly define the expectations and apply the knowledge to ensure the design and approach will achieve the proper level of audiovisual impact and intensity! Hearing attendees say, “I have seen that before,” is contrary to the desired outcome when a substantial investment in time, effort, and funds have been applied to the exhibition.

Another strategy to avoid this type of outcome is to visit other exhibitions and events serving the same industry, and experience the technologies used. Consider the ages and interests of the audience; the younger the average age, and the greater the interest in technology and consumer electronics, the more unique the experience needs to be for high impact.


368


An integral part of the design process is articulating expectations. Answer the question, “What is the audience looking for?” Answers could range from enhanced learning to a complete immersion – or something in between. Clearly outline all perspectives with the specific contractor and account executive; this will encourage a more effective and efficient plan that will meet the expectations of all concerned stakeholders.

3. Create a Formal Request-for-Proposal (RFP). For best results, develop a detailed RFP for the potential contractors. Obtain firm proposals, complete with budget, from two or three suppliers. For comparison purposes, the thorough proposal will help determine if the contractor has a clear understanding of the stated expectations. Thorough proposals are based upon a clear and specific RFP.

4. Develop the Budget. The AV component of an exhibition can be complex and quite expensive. Exhibition organizers can save time and energy by developing and refining the budget upfront and then designing the experience that is realistic and within the allocated budget.

5. Inventory the Content. Compile images, video, and graphics already available and develop a content list to realize the design plan and the anticipated experience to be created.

6. Challenge the AV Contractor to Reverse Engineer the Experience. Reverse engineering allows the contractor to fully understand the desired final outcome and work backward through approaches, required hardware, and other available technologies to outline the concept and estimate the budget. A comparison of the contractor’s proposed budget with the actual exhibition budget will help in assessing the cost/benefit ratio, anticipating the attendee experience, and making a decision on the AV components. If the two budgets fail to match, challenge the AV contractor to revise the estimate and define the revision(s) in terms of the potential changes in the attendee experience. This collaboration is essential and the responsibility of the contractor to work with the budget, time, and logistical limitations.

CREATING A STAGE AREA ON THE EXHIBITION FLOOR

Many exhibition organizers and exhibitors elect to locate presentations on the exhibition floor. Integration of AV can greatly increase the impact of these areas. Hardware and lighting guidelines should be selected based on the desired effects and constraints presented by the size and physical characteristics of the space.

• Contemporary systems may allow presenters to stand in front of the speakers projecting the sound. Older systems will cause feedback noise from the microphones if the presenters move behind the speakers.

• Audio quality and volume level may be significantly improved with the use of a headset microphone. Exhibition floors can be noisy, making it difficult to hear presenters. In crowded or busy spaces, local networks of headsets may be used. Each attendee is given a pair of headphones when they enter the area and the voice of the presenter is sent directly to those headphones rather than over area speakers. This requires staff

Describe the proposed experience

COMPONENTS OF THE RFP RESPONSE

(THE PROPOSAL)

Provide sketches of the look and feel

of the environment

List equipment and required technology

Provide an installation schedule

Schedule production milestones

and deadines

List what the AV provider supplies with

deadline dates

List additional content to be created

List contractor responsibilities

List the organization’s

responsibilities

Provide a firm cost quote


369


to distribute, collect, and clean the headphones, but results in everyone hearing the presentation without disturbing booths around the stage. Knowing the type and format of each presentation (e.g., static images, PowerPoint or video) will determine the type of display best suited for this application. It will also determine the type of playback device(s) required and whether a switcher for multiple devices is required.

• Low lighting levels may suggest the use of static or moving lights to highlight the presenter and possibly the seating area.

CONTENT DEVELOPMENT

The exhibition organizer must know the technology to be utilized for delivery in developing additional content. Thus, the content can be created to meet the necessary specifications. Consider the creation of additional media during the budgeting process; media creation can be very expensive. Media creation is most cost effective when designed for multiple uses, (e.g., media created for an exhibition presentation as well as a sales presentation that can be delivered via an iPad).

MUSIC LICENSING

Music licensing is the licensed use of copyrighted music. Music licensing is intended to ensure that the owners of copyrights on musical works are compensated for certain uses of their work. A purchaser has limited rights to use and reproduce the recorded work without a separately arranged agreement. Licensing agencies are global organizations that arrange for the limited usage by third parties of copyrighted music.

The AV supplier can contact the music publisher or licensing agency on behalf of the exhibition organizer to discuss applicable fees. When copyrighted music is too expensive, a more cost-effective option is to hire a composer and create an original piece of music with a similar sound. The AV supplier should be able to provide a resource to accomplish this task.

AV AND SUSTAINABILITY CONCERNS

AV equipment undeniably increases the power consumed by the exhibition. Selecting equipment with favorable Energy Star ratings and gravitating toward technologies, such as LED, will decrease the amount of power used and still create the same brightness of output. Renting equipment is, of course, a more sustainable solution than purchasing equipment for one-time use. For further discussion on this topic go to Chapter 9.

SUMMARY

The integration of a well-designed AV solution helps attendees to see, hear, understand, and feel the exhibition organizer’s or exhibitor’s message and results in a more memorable experience for the attendee. This well-designed solution

The American Society of Composers, Authors

and Publishers (ASCAP)

MUSIC LICENSING AGENCIES

Broadcast Music Inc. (BMI)

Society of European Stage Authors and

Composers (SESAC)


370


is based first on a thorough RFP, then a complete proposal, and finally with the collaboration of the exhibition organizer and the selected professional AV contractor. A variety of AV technologies can be used for the single exhibitor, as well as the entire exhibition. Through effective use of these technologies, sound and visual effects create ambiance, show and/or exhibitor branding, and could meet or surpass the attendees’ expectations.

KEY WORDS

3-D technology

ambiance

aspect ratio

audiovisual (AV) tools

AV designer

AV technician

Bluetooth

gobo effect

holographic

intelligent lighting

interactive display

kiosk

LED lighting

looping media

lumen

mixer

moving light

multi-touch screen

music licensing

projection system

rear-projection

reverse engineering

single-touch screen

social media

static lighting

stream (or streaming)

touch screen

truss rig

video monitor

Wi-Fi

DISCUSSION QUESTIONS1. Why should exhibitors use AV for their exhibitions?

2. How can AV be used to enhance brand messaging?

3. How can social media be used and integrated into the exhibition?

4. What kind of social media would be useful through AV on a single exhibit and how could it be used effectively by the exhibitor?

See

ATTENDEE EXPERIENCE

Hear

Understand

Feel


371

CHAPTER

25

“Opportunity dances with those who are already on the dance floor.” – Jackson Brown

FOOD AND BEVERAGE

Carina BauerChief Executive OfficerRegent Exhibitions Ltd.

Charlotte Martins, MBA, BA, Dip IPRConsultant

The Savvy Consultancy – Public Relations

LEARNER OUTCOMES


1. Discuss strategies for maximizing the effectiveness of food and beverage at a booth/stand

2. Recommend placement of food and beverage at the exhibition to control attendee traffic flow

3. Demonstrate an understanding of the key considerations in the selection of food and beverage


372

CHAPTER 25 Food and Beverage

INTRODUCTION

Food and beverage (F&B) can have a powerful impact on the exhibition experience for both exhibitors and attendees, and often has a significant role in the planning process. It can be used by the exhibition organizer to help build and guide traffic at the exhibition. F&B can also create a buzz around a booth/stand, welcoming attendees for greater lead generation. As well, F&B can contribute to successful receptions and events held away from the exhibition.

IMPACT OF FOOD AND BEVERAGE

Professor Wiseman, a noted author and psychologist, stated, “In a series of studies during the 1930s, psychologist Gregory Razran discovered that people develop a special fondness for other people, objects, and statements if they are introduced to them while eating a meal. The effect may be attributable to the fact that good food puts people in a happy mood and can cause them to make faster, and more impulsive decisions. More recently, researchers discovered that people who have just consumed caffeinated drinks were more likely to be swayed by arguments about various controversial topics.” Careful thought and planning is essential to maximize the impact of F&B on the overall goals and objectives of the exhibition.

EXHIBITION ORGANIZER AND EXHIBITOR CATERING CONSIDERATIONS

Exhibition organizers need to give careful thought and planning to maximize the impact of F&B on the overall goals and objectives of the exhibition. This is also true for exhibitors who plan to serve F&B in their booths/stands. For both, it is important to understand both the regulations for serving F&B and having the experience of ordering the appropriate quantities and types of food.

Regulations. Regulatory policies for the exhibition organizer and venue require research on F&B items brought into the venue. This is also true for exhibitors. Many venues prohibit brought-in goods or require inspection of them. F&B decisions are based on numerous considerations, including health and safety regulations. Customs regulations are relevant at international destinations. For example, some venues, especially in the U.S., require exhibition organizers and exhibitors to limit the distribution of F&B to specific sample sizes, (i.e., weight or quantity, unless purchased directly from the inhouse catering company). In general, the beverage sample is limited to four ounces and a food sample is limited to six ounces. Alcohol regulations also vary greatly between countries and between states in the U.S. For example, the state of Nevada requires alcohol to be purchased by the venue and served by venue staff; whereas at exhibitions held in Germany, exhibitors are able to bring alcohol into the venue and serve their own alcoholic beverages, as long as these are not being sold from the booths/stands. In some Arabic countries alcohol is not allowed anywhere on the show floor. Exhibitors (especially international exhibitors) often want to sample F&B from their own region. Corkage fees can be considered.


373

Food and Beverage CHAPTER 25

CATERING MANAGED BY THE EXHIBITION ORGANIZER

F&B acts as a medium to showcase the brand of the exhibition. The exhibition organizer and caterer can work together to create a menu that fits both the exhibition/event and the service or product. For example, at an exhibition for the meetings industry, sampling of productivity-enhancing brainfood is a wise choice, as it generates a very specific sense of relevance. An audience with a focus on healthy living should be offered a menu reflecting that characteristic. For an international audience, the exhibition organization should research culinary cultures, with attention to religious preferences and service etiquette. Additionally, selecting fair trade and sustainably sourced produce sends a powerful and positive message about the organization’s values and ethics.

Most exhibitions feature pay-for-catering options in both permanent and portable locations, some of which are planned and arranged by the exhibition organizer. The provision of F&B in the exhibition hall or in the pre-function areas outside the exhibition hall are particularly important for the organizer to ensure that attendees and exhibitors maximize their time at the exhibition (see fig. 25.1.).

Figure 25.1. Catering in the Exhibition Hall (Source: Lagniappe Studio, Inc.)

Show Floor PositioningFood has a powerful effect on traffic movement throughout the exhibition. Therefore, placement of these pay-for-refreshment booths/stands requires careful and strategic consideration. Typically, permanent outlets are positioned in restaurants or café areas with seating around the outer perimeter of the hall or foyers, which can help guide attendees toward booths/stands on the outer aisles. The exhibition organizer may have the flexibility in placing others within the exhibition itself. For example, a central position for food toward the back of the exhibition hall encourages attendees to pass as many exhibits as possible on their way to the food outlets or stations. Such refreshment areas may include tables and chairs; this arrangement should be sufficiently comfortable for attendees to


374


conduct a short break or business meeting and yet discourage longer stays. These locations should be well highlighted on show guides with easy-to-see signage and they should be of sufficient size to preclude long queues during peak times.

The exhibition organizer may choose to provide separate and complimentary catering options for important attendees (often called VIPs), distinguishable by their badges. The increasingly popular hosted buyer concept, whereby powerful industry buyers receive free travel and accommodations to the exhibition, lends itself well to a VIP area. These areas enable the exhibition organizer to recognize the value and status of the VIPs with arrangements that allow them time to refresh away from exhibitors keenly vying for their attention.

Menu SelectionExhibition organizers should provide a range of food options in the exhibition hall. An adequate number of grab-and-go foods can minimize waiting, (e.g., packaged and prepared sandwiches, salads, fruit bowls, hotdogs, pizzas and pastas). Equally important is to provide a seating area for warm meals, especially in the European marketplace. The exhibition organizer should consider brand values and customer acceptance when creating menu options, especially for high-end customers, (e.g., sushi, champagne, or espresso-based coffee bars). However, exhibition organizers must also consider a range of price-points to accommodate a broad spectrum of attendees.

Special Menus. The need to cater to special diets must be considered. Most people with allergies and intolerances will be wary of what they consume. Signs and labels listing the ingredients are advised.

Alcohol. Regardless of whether alcohol is being served by an exhibitor in their booth, or at a reception planned by the organizer, complimentary alcoholic beverages offer a social dimension to an exhibition. Beverages should be tasted beforehand by personnel, especially when budgetary considerations are significant. A beverage that tastes cheap creates a negative impression. Offering options with popular appeal can help one avoid choking on a strong or inferior taste. Additionally, the strength of the alcohol is an important consideration. The attendee should enjoy the relaxing properties of the giveaway while in conversation, but at the same time the setting and service of alcohol must be respectful of the business context at an exhibition. Colorful, alcohol-free cocktails with fresh fruit are options if alcohol is not ideal.

Quantity. Quantities can be difficult to determine and decisions are often made based on experience rather than a set formula. The exhibition organizer will consider the projected exhibition attendance.

Timing. Timing is an important dimension to consider in planning F&B. Full-day provisions can be expensive, but might also be a powerful generator of consistent traffic volume on the exhibition floor. Alternatively, at a pre-exhibition seminar or reception, a breakfast menu could encourage attendance, especially among those attendees who are staying in a room-only lodging and want to avoid a costly breakfast. Traffic at the exhibition often slows over the lunch period, especially if the organizer is not providing lunch on the show floor. If this is the case, attendees


375


will typically seek out sustenance from food sellers at concession stands.

A reception can round off the working day in a relaxed manner, and may include alcohol. The F&B plans for the overall exhibition should account for arrival and departure patterns, as some attendees may be departing and unable to attend a late afternoon (or early morning) event.

SustainabilityMany industries are experiencing an increased interest in sustainability, and this is especially prevalent in the exhibition industry. Exhibition organizers and exhibitors should ask questions about the source of the F&B. Some sustainable food items are those from local sources or are available through fair trade agreements. Minimal use of disposable plates, cutlery, or cups demonstrates environmental responsibility. Use of water stations or dispensers, as opposed to bottled water, throughout the exhibition reduces costs and minimizes the organizer’s carbon footprint.

Recycling bins, strategically placed in or near catering outlets, encourages separation of refuse for recycling and, whenever possible, distribution of unused or wasted food. In some cases, leftover food and beverage products can be distributed to homeless shelters, although usually only when unopened. Other sustainable options in the local area may be available, depending on local resources, as well as local health and safety regulations for food waste. While many venues have established policies and options for recycling and sustainable efforts, the exhibition organizer may need to introduce the concept.

CATERING MANAGED BY THE EXHIBITOR

In addition to understanding the regulatory requirements for F&B being served, there are other considerations unique to exhibitors planning a menu for F&B in their booth.

Creating the Ideal ExperienceThe complete F&B experience is based on several considerations besides the food or beverages consumed. The ambiance created by the booth design or environment is part of that experience. Timing, food demonstrations, and promotion of F&B offerings should be carefully planned by the exhibitor. Of course, attracting buyers to the exhibit is the important goal, not the F&B, so connecting the F&B with the product or service showcased in the exhibit or the organization’s brand is paramount. Training the staff to utilize F&B offerings appropriately is important, as is return on investment (ROI) planning and analysis.

Ease of Consumption. The more effort attendees have to put into managing their food, the less they can concentrate on the conversation. Small bite-size portions are best, avoiding food items that may drip, are sticky or break apart when eaten. An attendee is likely to be embarrassed should a spill of food occur either on the floor or on his or her clothes. Attendees should be able to enjoy their snack without it creating problems for the rest of their exhibition visit. Given the context of the exhibition and the likelihood of handshaking, napkins and hand sanitizers should be available.


376


Ordering. Most venues provide menu options from which F&B can be ordered. The regulations, including sample sizes, minimum order size, and bulk ordering options, labor, service charges, taxes, and charge-on-consumption options should be thoroughly read and understood. For exhibitors who want to serve F&B in their booth/stand, some venues will allow the food to be ordered from the venue and the exhibitor’s staff serves, while others require the venue staff to serve. Charges may be applicable for bringing in F&B items, and some venues have no restrictions if samples are free. Exhibitors should consult with the exhibition organizer regarding special terms that may be negotiated regarding F&B options. Regulations determining F&B are also culturally specific, with European venues tending to be more liberal than U.S. venues.

Quantity. Individual exhibitors can research the number of attendees to the organization’s booth/stand in previous years or exhibitions and plan for two or three items or pieces per attendee, in general. Only one alcoholic beverage needs to be planned, to curb excessive consumption.

Booth/stand Design. Booth/stand design should complement selected F&B. The atmosphere may be enhanced by adding furniture to the display, or providing a reception or bar area where food is served. F&B needs a focal presence in the booth/stand if it is to be a major attraction for buyers. The booth/stand personnel may need to be in costume, such as an apron with a dramatic chef’s hat, to connect them with the food preparation and service. When planning booth/stand space, the exhibitor should consider whether a closed kitchen area is required, or if running water, electricity, and/or ventilation are necessary to prepare or serve the food properly. In addition, the exhibitor may need to plan for adequate storage.

Food Demonstrations. An excellent way to develop a sense of theatre around a booth/stand is to use food demonstrations. For maximum effect, chefs should be in full uniform with food selections selected for both the watch ability of the spectacle, as well as the manageability of the prepared food at the completion of the demonstration. The chef should be available to speak with booth/stand attendees about his/her skills and recommendations, especially when the food is an important part of the product or service. Engaging attendees in the demonstration adds interest even to the point of developing a competition. The involvement of attendees adds memorability to the experience; however, this approach needs to be carefully managed for health, safety and practicality.

Attracting Potential Attendees. Sampling and demonstrations are generally acknowledged as effective ways to increase booth/stand traffic; however, the value and quality of the attendees, as potential customers, attracted to the booth/ stand must be analyzed. As with all giveaways, a balance should be achieved in terms of creating a buzz while ensuring valuable prospects are attracted to the booth/stand and stay long enough to engage with booth/stand personnel.

Training of Booth/Stand Staff. Booth/stand staff, whether supplied specifically for catering by the venue or by the exhibitor’s organization, should have some knowledge of the ingredients served. This especially helps attendees with special dietary requirements. It demonstrates professionalism, as well as creates useful opportunities to ensure that the food offering can be seen as an integral

Regulations

CREATING MENUS

Ease of consumption

Special menus

Ordering

Alcohol

Quantity

Booth/Stand design

CREATING THE EXPERIENCE

Timing

Food demonstrations

Promotion

Attracting buyers

Staff training

Return on investment


377


and important part of the exhibition strategy. Trained and informed booth/stand personnel can use this knowledge as a good conversation opener, as a plate is offered with a short description of what it is and why it is being served. For example, booth/stand personnel might say, “Please try this [food or beverage] and give us your opinion. This dish [or beverage] is connected to [the company’s product or service] by [a relevant connection].” Volume of traffic may necessitate extra booth/stand staff to maximize conversational opportunities with all attendees.

Return on Investment (ROI). Determining ROI of booth/stand F&B is a challenging process, as separating the impact of F&B from other promotional offerings is difficult and quantifying the benefits may be impossible. Elements to consider in assessing the value, though, include comparing the overall cost and time spent in organizing with the show outcomes, (e.g., booth traffic and sales attributable to the exhibition). Results may take place over months or even years, depending on the product or service and the industry’s purchasing behavior. Other outcomes to consider are the strengthened relationships with current clients, increased brand awareness, new and prospective client introductions, public relations including editorial coverage, and the insight gained from customer interactions. Various types of evaluation metrics can be used for ROI analysis.

Promotion. Most exhibitions offer multiple promotional channels for exhibitors to raise awareness of their initiatives at the exhibition, (e.g., catalogue, websites, daily papers, pre-exhibition features in trade magazines, and social media networks).

Early planning ensures these options are properly leveraged for maximum exposure. Most exhibition organizers appreciate early information on innovative activities taking place on the exhibition floor and are anxious to incorporate this information with the exhibition’s marketing efforts. F&B that is unique or highly appealing will add to the exhibit’s promotional appeal and should be communicated to the exhibition organizers.

OFF-PREMISE CATERED EVENTS

Pre- and post-exhibition catered receptions and events, by invitation only, are commonly found in exhibition schedules, and can include exhibitor-hosted breakfast, lunch, or evening get-togethers. The focus of external-catered events can be product or service-related presentations, informal networking events, award ceremonies, and gala dinners. Guidance in planning events can be obtained from the venue or catering purveyor, which helps in planning and execution. Exhibitors should check exhibition regulations in the locale and with the exhibition organizer to prevent conflicts with other events, educational offerings, or official exhibition functions. As a caution, many exhibition organizers do not allow events to take place outside the exhibition floor during exhibition hours.

In terms of extending relationships with key customers, functions held outside the exhibition hall can be an extremely influential way of showcasing hospitality. Evening receptions and dinners are increasingly popular and tend to be largely social functions, while breakfast events tend to incorporate an educational or direct-sales element.

Quantities ordered

EVALUATION METRICS

Spend

Waste

Prevalence of food acceptance versus refusal by visitors

Popularity of items at different times

of day

Effect of F&B on buyer mood

Effect of F&B on personnel


378


SUMMARY

F&B is an established part of the exhibition experience and continues to evolve. Awareness of the many options includes mood-affecting offerings, healthy and functional options, special diets, as well as growing emphasis on ethical production. Protein-rich insects are not on most European or U.S. menus, but hundreds of species are eaten across Africa, Latin America and Asia. With rising concern about food shortages, even insects could become a common feature of the international exhibition landscape.

CASE STUDIES

Las Vegas Convention & Visitors Association (LVCVA) IMEX America 2011

A reception was hosted in a pavilion for 90 minutes at the end of one day of the exhibition. Wine and appetizers were served, consisting of small hors d’oeuvres that were easy to manage in a standing reception environment. Wine was chosen because another destination exhibitor nearby served beer.

The event was organized approximately three months in advance of the exhibition, working with the venue catering team and within F&B venue regulations. The event was posted on the exhibition Website, which resulted in effective advance advertising.

The reception was planned to increase exposure for Las Vegas and gain additional one-on-one time with attendees. Many other Las Vegas exhibitors concurrently held receptions, thus creating a “Vegas” afternoon. The event was successful and added informal “business” time in a social atmosphere. The event was coordinated with the exhibition organizer to avoid conflicts with other exhibitor events.

Easy to handle finger-type foods work best as people can socialize while standing. Highboy tables are helpful to prevent the “balancing act” and serve a simple fare to avoid people having to wait in lines for a beverage or snack. If possible and within budget, custom beverages or food items associated with the organization can have a great impact on the event.

Maltese Tourist Authority in Germany IMEX in Frankfurt 2011

The Maltese Tourist Authority chose to serve Maltese wines; Maltese beer called “Cisk”; a typical Maltese soft drink, “Kinnie”; Maltese biscuits; goat and sheep cheese, “Gbejna”; water biscuits, “Galletti”; sundried tomatoes; and olives. These were served every day of the exhibition from 11:00 to 14:00 with cooking managed by a German chef. A dedicated cooking/bar area at the booth/ stand consisted of a bar counter including space to cook, and stools for the guests. A culinary video was shown on the wall behind the bar showing typical Maltese

TIP


379


food. Maltese Fusion Cuisine was prepared in a wok. Attendees came to the counter to watch the chef and enjoy the snacks, and the chef also walked around the booth/stand, serving food (see fig. 25.2.).

The concept has been replicated for several years and is not difficult to organize. Basically, the only changes made each year are the recipes. An important component of this type of attraction is an entertaining chef, who is able to cook at a booth/stand with limited space and resources. Working with the venue in advance regarding the details and approvals provides an excellent attendee experience.

The expenses included the fee for the chef plus costs for ingredients and materials. The cooking took place three hours each day and only small portions were distributed; the food was not a major budget consideration.

The primary concept was to demonstrate Maltese hospitality in the booth/stand, have an engaging activity to attract attendees, and satisfy hunger and thirst with some typical Maltese cuisine. The results were positive and provided attendees with a feeling of being welcomed, increasing curiosity at the booth/stand, while learning more about Maltese cuisine. The goal was to make legendary Maltese hospitality and cuisine a memorable experience. The positive atmosphere it created balanced with the cost and effort, as hospitality and emotions play a major role in the exhibition industry.

The food needs to be authentic, easy to consume, and the exhibition needs to be promoted well in advance. In this instance, the event was highlighted on Websites, in a newsletter, in an advertisement in the exhibition’s daily paper, in a mailing to the hosted buyers, in press releases, and through co-exhibitors.

Greater Houston Convention and Visitors Bureau (GHCVB) IMEX in Frankfurt 2011

The GHCVB planned an event for the purpose of connecting with international clients. Texas beer, Shiner Bock, and Texas wine were provided for an afternoon reception, using a popular Texas drink which speaks to common roots. Shiner Bock is a popular beer brewed in Shiner, Texas, and Messina Hof wines came from a winery that was founded in 1977, the third oldest winery in the state. Its founders, Merrill and Paul Bonarrigo, have Italian and German roots, but now are deeply embedded in Texas, highlighting diversity while appealing to local denizens with a taste for the unique.

This event was led by the tourist authority and coordinated by agents in Europe.

Figure 25.2. Food Display (Source: IMEX Frankfurt 2011)

TIP


380


It was organized two months prior to the exhibition. The primary challenge was working with customs brokers to import the beer and wine.

The cost of the event was approximately five percent of the total booth cost. A cost-sharing approach was utilized between the six co-exhibitors, which resulted in great attendance, as each co-exhibitor promoted the event. The ROI and exposure increased as a result of the cooperative nature of the event. Additionally, the database of attendees was shared and used to increase international business prospects.

After a long day of work, many clients appreciate such an event. A special and unique atmosphere was created to differentiate Texas from other locales, since Texas drinks are unavailable in Europe. The result was a memorable and well-received experience.

The concept is common; however, with creativity and effort, the results made it a fun experience.

Interview: The Venetian/Sands Expo

The current trend for exhibition catering is for “grab-and-go” foods that are designed and packaged to be eaten immediately; for example, finger sandwiches, crisps, pretzels, homemade cookies, and crudités with dressing are popular options.

On the exhibition floor in exhibitor booths/stands, pretzels and popcorn are popular options, with higher-end choices including a chef cooking crepes for a little theatre. Food is typically a major part of at least 50 percent of exhibitors’ plans. Exhibitors commonly order sophisticated options including machines for different types of coffee, fresh cream, and a server to enhance the booth/stand experience. Additionally, attendants wearing branded clothing help reinforce the impact and memorability of the exhibit.

In terms of quantities and spend, the per-person costs at receptions frequently exceeds $25USD. An increasing number of last-minute requests occur, whereby an exhibitor feels quantities have been underestimated, or additional orders are inspired by another exhibitor doing something more impressive.

The demand for special diets is increasing. Approximately one in three orders contain special requests, with the gluten-free option being particularly frequent. Kosher cooking is also in demand. In this case, the chef works closely with a local rabbi to facilitate this type of request with dedicated kosher facilities. Local resources and a local Imam can be consulted for Halal-prepared food.

International exhibitors often wish to provide dishes local to their destination for booths/stands or stand-alone receptions. Customized menus are easily accommodated, using specially selected suppliers. The goal of the facility is to provide a consultative approach to assist clients in menu selection and ensure that the F&B provides appropriate resonance for the event, with the venue staff maintaining flexibility to approve some items to be brought in and served.

TIP


381


KEY WORDS

carbon footprint

corkage

environmental responsibility

evaluation metrics

fair trade agreements

food and beverage (F&B)

food demonstration

grab-and-go

hosted buyer

pay-for-catering

DISCUSSION QUESTIONS1. Discuss how F&B selection can impact the attendee experience and the

memorability of an exhibition.

2. Describe how floor positioning and F&B demonstrations can have an effect on traffic volume and flow.

3. Offering F&B at an exhibition or external event has many benefits; identify and discuss challenges associated with providing F&B to attendees.


383

CHAPTER

26

“Great events make me quiet and calm; it is only trifles that irritate my nerves.” – Queen Victoria


Jim KeltyMember of the Board of Management

IELA, International Exhibition Logistics Associationand

Sales AgentAirways Freight Corporation

Mike KovacDirector, International Logistics

GES

LEARNER OUTCOMES


1. Explain the process of shipping a booth/stand to an exhibition

2. Select contactors providing the necessary services to ship freight to and from an exhibition

3. Critique the various shipping procedures based on location of the outbound freight, destination, and return or forwarding destination

4. Locate the rules and regulations based on the country of origin and destination


384

CHAPTER 26 Shipping Exhibition Materials

INTRODUCTION

Shipping to and from an exhibition is a critical aspect of exhibition logistics. A substantial investment is made by exhibitors in terms of time and money in booth/stand space, marketing materials, product development, planning, travel, and accommodations. This investment is wasted when the exhibitor’s booth/ stand, sample products, machinery, or collateral material do not arrive at the right booth/stand on time, and in good condition. Furthermore, one empty booth/stand or one unhappy exhibitor detracts from the success of the exhibition and may negatively impact its future. In the era of globalization, domestic and international shipping are imperative for the successful exhibition.

SCOPE OF SHIPPING

An exhibition is a temporary marketplace with large quantities of exhibit materials (i.e., millions of pounds/kilograms of freight) being moved in and out of a venue within a very short period of time.

Canada and the United StatesThe official service contractor (OSC) is generally responsible for coordinating this process within Canada and the U.S. Often referred to as on-site material handling, this process includes directing the flow of traffic to the dock and inside the venue, offloading or loading of vehicles, delivery by forklift or manually to and from booth/stand, and the pickup, storage, and return of empty packaging. However, the OSC has little control over whether the freight arrives and departs the facility in a timely manner. Therefore, an entire segment of the industry has evolved to handle these unique challenges.

Unlike normal business-to-business shipping, the transport of exhibit materials presents unique challenges. Deliveries and pick-ups are made from large and complex facilities, often in congested city centers, with multiple, crowded freight loading or unloading areas, and always within a very narrow timeframe. Additionally, some exhibit materials are unusually fragile, and require special packing and handling in large and cumbersome crates or pallets.

Exhibits often go directly from one exhibition to another with limited time in between, resulting in minimal tolerance for error or late deliveries. Adding to the challenge is that booths/stands are shipped dozens or even hundreds of times each year. Thus, exhibition organizers select and recommend official trade shipping companies that specialize in various options for exhibition shipping.

Exhibition organizers in Canada and the U.S. generally recommend an official common carrier that specializes in domestic exhibition transportation. As appropriate, an official exhibition van line and an official exhibition air freight forwarder will be recommended with experience in the unique and demanding process of moving exhibition freight from origin to the booth/stand in good condition and on time.

International ShippingGlobalization of the exhibition industry has resulted in a substantial increase

Canada

SCOPE OF SHIPPING

United States

International


385

Shipping Exhibition Materials CHAPTER 26

in international exhibitors. Most exhibition organizers select and recommend an official international freight forwarder, one with specialized experience in international exhibition forwarding. Experienced international exhibition shipping companies have agents in the participating countries who also function as freight forwarders and are experienced in a particular industry or an industry related to the event, (e.g., medical equipment or heavy machinery). Exhibitors are encouraged to use the official freight forwarder, which reduces potential problems as opposed to a general freight forwarder who may be unfamiliar with the exhibition industry.

The intent of this section is to provide a brief overview of the logistics process at shows with the need for international services, what activities are involved and the contactors who provide them. While procedures and requirements vary widely from country to country, and sometimes even from city to city within the same country, exhibition contractors worldwide commit the same amount of responsiveness and integrity to their profession of ensuring priority deliveries to the show floor.

The selection of a contractor for freight operations should take place at the onset of the overall exhibition planning process, especially for events with a broad-ranged international focus and participation. Shipping timelines for both airfreight and sea freight shipments and the potential bond/guarantee provisions for imports can command lengthy advance planning and may have serious cost implications for exhibitors. It is not unusual to make these contractor selections a year or more in advance. Here are a few selection options in this process:

1. Select a multi-national transportation corporation with the ability and contact to operate at the venue, manage local services, process import/export activities for international shipments, and utilize group resources globally to also cover freight forwarding services from around the world for delivery to the venue country/city. This company may have a working relationship and contract in place with the venue. Companies of this size generally have their own service network of offices around the world

2. Select an official site-handling contractor who has a proven track record or an established relationship with the venue and their operations staff. Then all the contractor has to do is choose their own forwarding partners around the world or in the countries where exhibiting companies are located. The site contractor selection may be based on an existing relationship or their expertise in the venue, country or industry represented at the exhibition. Their partner selection would likely be made on the same conditions

3. In many countries, a venue may already have a contractor resource at its disposal – this may be a single, exclusive handling agent, a select few agents who are appointed to work at the venue or exhibition grounds, or an approved number of companies to select from. These companies may need to be interviewed in depth to determine their expertise and capabilities

4. Independent site contractors may be appointed but, without an official relationship with the venue, may have to work through a sub-contractor relationship with one that does have the required connection to the venue


386


5. Exhibitors may be allowed to move their own materials into and out of an exhibition hall in many locations. It is important for show management to investigate this option and advise their participating companies accordingly. It is highly unlikely that they would be able to use any transport equipment more complex or mechanical than a pallet jack or small cart

This combined exhibition forwarding and logistics operation is best examined by dividing it into two primary segments: (1) the on-site freight handling operations at the venue and (2) the freight forwarding activities from the exhibitor’s origin to the venue or destination country.

The on-site freight handling operations includes all of the work from the receipt of shipments at the venue or advance warehouse through to the delivery to the exhibitor’s booth, any additional labor or lifting/placement needs, the storage and return of empty cases, and the inverse procedures at the close of the show. It generally will include the customs clearance processes as well.

When developing international exhibition plans, site contractor activities and responsibilities to be considered should include:

Relationship and Communication with the Venue• As a follow-up to the above information, is the potential contractor

allowed to work in the venue? Are they cognizant of all working conditions and regulations – including: knowledgeable of the building parameters, cargo access gates, loading dock or areas, truck facilities, traffic management issues, security and police policies, local/neighborhood conditions, special permissions for sensitive or oversized equipment, etc.

• Do they know and have access to the venue’s key staff and operation’s team?

Site Operations and Planning• What is the size of the contractor’s staff dedicated to the actual freight-

handling operations? Are they aware of the event’s inbound and outbound tenancy schedule? Is there a floor manager readily available?

• What type and how much equipment do they have on-site or immediately available? What condition is it in? Is it permanent or rented? Make sure they understand exactly what type is required for the exhibition – manual equipment (pallet jacks, dollies, carts), 3T, 5T, 10T forklifts, cranes, high lifts, trucks, refrigeration equipment. Will it match the overall type and amount needed for the subject show?

• Will a truck marshalling yard be needed?

• What is the warehouse accessibility – on-site or off-site? Are additional, temporary storage facilities required? What about ocean container storage or overnight truck parking?

• Can the unloading and reloading of ocean containers be accommodated at this venue?

• What are their procedures for handling empty cases, accessible storage and deliveries during the show?


387


• Can they provide comprehensive shipping instructions for all exhibitors – in print and electronic formats?

• Does the contractor have an on-site permanent or temporary office?

• What are their normal working hours? What are the requirements/restrictions for overtime, weekend, holiday work?

• Do they have the capacity to contact local exhibitors/suppliers and handle their shipments to or from the exhibition venue?

Requirements of International Involvement• Is the company a licensed customs broker or is the import process

contracted to an independent broker? How long does it normally take to clear customs? Is there a customs office on-site?

• Is there an import bond process in place or does show management have to provide it? If so, what is the process, how long does it take, and what is the cost and risk?

• What are the freight arrival deadlines for airfreight, road freight, and sea freight shipments?

• Where are the airfreight and sea freight offices responsible for the arrival of the exhibition shipments – at the venue or at the airport/seaport respectively?

• Will the shipping instructions (mentioned above) also include the import/export requirements and any applicable global circumstances?

• Are there restrictions on any of the materials planned to be exhibited at the show? If yes, what are they and can they be avoided or minimized?

Outbound/Return Shipments• Are the outbound requirements and procedures similar to those for the

inbound?

• Can international exhibits or equipment be sold at the show? If yes, what are the procedures and restrictions?

• Will the contractor’s operations team visit each exhibitor and discuss/confirm their outbound handling and shipping plans?

• Can they provide the outbound international freight forwarding or sub-contract to an independent forwarder?

• How long does the outbound customs process take for airfreight? For sea freight?

• Do the outbound shipments get loaded directly at the venue or return to a warehouse for distribution?

Costs• What are the costs to show management for its services?

• What is the tariff for all charges to the exhibitors for their services? A tariff is a tax imposed by government on imports.


388


For exhibition freight forwarders in countries where exhibiting companies are located, their services encompass the actual preparation of and movement of the freight from its origin or exhibitor’s facility to the arrival in the country or city of the exhibition venue as well as the management of the outbound/return shipments for their client(s). These freight-forwarding companies tend to be either the partner-agent for the show’s official site contractor or an independent international exhibition shipping company with a history of transporting a particular exhibitor’s equipment to related industry events or repeatedly to the specific venue.

The show organizer may have direct communication with one of the freight forwarders, some of them or none of them at all for any given exhibition. This does not lessen the involvement or importance of the forwarders in the overall freight operations for an exhibition. They can be the continuous source of communications between the official site contractor and exhibitor to advise what works and what does not at the venue or with the customs officials.

Most exhibition freight forwarders will translate the official contractor’s global shipping and handling instructions for their country’s participants and also insert any important local requirements and regulations, export deadlines, packaging and labeling guidelines, and any other pertinent details. Their capacity for the event should highlight the start of their instructions – official appointment from the organizer or venue, partner-agent of the official site-handling contractor or independent forwarder working on the exhibition.

It is the responsibility of these freight forwarders to get their client’s shipment(s) safely to the respective arrival port/airport/depot by the official contractor’s deadlines and in line with any published customs requirements or local regulations. The freight forwarder will guide the exhibitor in preparing their customs documentation and combine them with the transport documents. Copies will also be sent on to the official contractor at the venue to review and begin the import process there. This pre-alert notification helps avoid customs delays and assists in expediting the clearance process when the cargo finally arrives. Many of the professional export forwarders support their clients by actually attending the exhibition during installation and dismantle periods and look after their freight needs and site-handling requirements. This gesture also assists the official site contractor’s team in their duties and develops a working rapport between the two companies.

The professional partnerships involved in the exhibition freight operations process ensure efficiency and can be paramount to the success of an event. These companies can make planning and execution a productive and organized experience.

OPTIONS FOR THE EXHIBITOR

Two options exist in shipping for an exhibition. Canada and the U.S. are essentially the only two countries in the world where the official service contractor is typically the sole and exclusive on-site material handling agent; and where there is an option of shipping to what is called the advance receiving warehouse (ARWH). In most other world-wide destinations, pre-exhibition storage is provided


389


either by the international freight forwarder or the official freight forwarder at a warehouse on-site or near the venue, which varies from country to country and venue to venue. The other option is direct shipping to the venue. The details for shipping, including address, dates, and times, are available in the exhibitor prospectus and on the official website for the exhibition.

Generally, freight will be accepted at the OSCs ARWH beginning 30 days before and up to a week prior to move-in. The OSC delivers the freight from the ARWH to the booth/stand on the first day of move-in. This option allows the OSC to organize the freight in the warehouse and deliver to the site in an orderly manner, and the more urgent direct-to-site deliveries begin. Although on-site material handling charges for goods delivered to the ARWH are normally more expensive than for goods delivered direct to site, shipping to the ARWH is easier and often less expensive, since the marshaling yard process is not required and avoids waiting time and other surcharges.

Marshaling YardThe marshaling yard is an area near the venue where delivery vehicles must register their arrival with the OSC, and wait for permission to move to the venue dock for off-loading. When available, the OSC will direct the delivery vehicle to the appropriate dock space at the venue, where exhibition freight is offloaded and delivered to the booth/stand. Depending on the size of the exhibition and characteristics of the venue, this process can take several hours and incur additional expense.

Shipping OptionsA number of choices are available when shipping from within the U.S. to an exhibition venue in the U.S. For example, the choices include private or common carriers, independent trucking companies, integrated couriers, van lines, indirect air carriers (IACs), freight brokers, freight forwarders, and shippers or shipper-owned vehicles. Shipping options include:

• Common carrier. Common carriers are asset-based, (i.e., the equipment is carrier owned). Trucking companies specializing in less than truckload (LTL) shipments use regular routes based on a hub system

• Independent trucking companies. Independent trucking companies also own the equipment and normally specialize in full truckload (FTL) systems

• Integrated couriers. Integrated couriers specialize in the expedited transport of documents and small packages, also using a hub system

• Van lines. Van lines specialize in uncrated freight, such as large booth components, which require special handling and usually include pad or blanket wrapping services

• Indirect air carriers (IAC). IACs specialize in expedited airfreight

• Freight brokers. Freight brokers specialize in matching shippers with a particular carrier, which meets the shipper’s needs

• Freight forwarders. Freight forwarders normally specialize in international and trans-border transportation

Common carrier

SHIPPING OPTIONS

Independent trucking company

Integrated courier

Van lines

Independent air carrier

Freight broker

Freight forwarder


390


Numerous factors influence the type of transportation company the exhibitor chooses to ship exhibition materials to and from exhibitions within the U.S. For example, the type of packing unit, (i.e., boxes, crates, cases, pallets, or uncrated booth components; the number, weight, and dimensions of packing units; the origin of the shipment; the destination; the length of available time to ship; and costs). Finally, the ultimate mode of transportation decision is influenced by the final destination, (i.e., the ARWH or direct-to-site).

UNITED STATES SHIPPING PROCESS

The process for shipping to an exhibition within the U.S. varies depending on the circumstances and the selected mode of transportation.

Determine Needs for the ExhibitionDecide the items and materials that require packing and what will be shipped to the exhibition. Durable and protective packing materials are essential for the materials to arrive on time and in good condition. Consider the frequency of loading and unloading and potential for exposure to harsh weather conditions.

Packing ListCreate a complete and detailed packing list for the carrier to obtain a cost estimate. A packing or crate list includes a description of the shipment and lists the number, dimensions, and weights of each item. Most motor carriers charge by the actual weight or by the truckload. Depending on the mode of transportation, most indirect air carriers, integrated couriers, and freight forwarders charge by the actual weight or by the dimensional weight, whichever is greater.

Large ExhibitionsFor larger exhibitions, and for shipments made direct to site, OSCs often establish targeted move-in dates, depending on the exhibitor’s location in the exhibition hall. As part of the quotation process, the exhibitor needs to coordinate with the carrier exactly when the materials will be ready for shipment, as well as the requested or required move-in date. In addition to approving the cost estimate, the exhibitor must confirm the pick-up date and time.

Preparation for ShipmentPart of the preparation for shipment includes a label that must be attached to each unit. A list of each unit with the contents should be compiled and provided to the staff personnel in the booth/stand in advance of the exhibition. If per chance, one or more units are lost in shipment, the booth/stand personnel will know exactly what items are missing. This provides an opportunity to obtain missing items prior to the opening of the exhibition (see fig. 26.1.).

Need for exhibit

U.S. SHIPPIING PROCESS

Packing list

Large exhibits

Preparation for shipment

Bill of lading


391


LABEL INFORMATION

• Name of exhibition

• Name of exhibiting company

• Number of booth/stand

• Name of the consignee, i.e., usually the OSC or receiver of items

• Delivery address

• Piece count, i.e., each item is given a number with the total number of pieces in the shipment, such as 2 of 20

• Two labels on each item, preferably on the sides

Figure 26.1. Label Information

Bill of LadingThe bill of lading (BOL) is the contract between the shipper (exhibitor) and the carrier for the transportation of goods from one point to another. The information contained therein is the same as the label information for shipment.

A critical aspect of the BOL is the terms and conditions section, written by the carrier, freight forwarder, or broker. Normally, these terms and conditions are printed on the back of the BOL. The primary purpose is to describe the limits of liability of the carrier. A shipping company’s or carrier’s liability for lost, damaged, stolen, or delayed goods is severely limited by law in the U.S., and the shipper (exhibitor) should be aware of these limitations. To protect against this liability, exhibitors can purchase excess declared value liability or cargo insurance from the carrier or shipping company.

Exhibitor ResponsibilitiesThe exhibitor is encouraged to provide the OSC with information of shipments in advance of the arrival of the freight, especially if special equipment is required for unloading or the materials need special handling or storage, (e.g., frozen or refrigerated items). Exhibitors need to estimate material handling costs when ordering services from the OSC.

Carrier ResponsibilitiesFinally, the carrier or the carrier’s cartage agent will arrive at the point of origin to pick up the cargo, and begin the transport of the exhibit materials to the exhibition. Signatures of the shipper and the driver are required on the bill of lading, a copy of which is normally attached to and travels with the goods. Copies are distributed to the shipper, the carrier, and any other parties involved in the process.

TYPES OF FREIGHT

Exhibition freight is either designated as advance freight, (i.e., shipments sent to the OSC’s warehouse or trapped at a designated carrier’s warehouse prior to move-in), or direct freight, (i.e., materials sent directly to the exhibition venue).


392


Advance FreightDuring the first days of the exhibition move-in, the OSC loads advance shipments on vehicles and delivers to the on-site freight loading/unloading or dock areas. Upon arrival at the dock, labor hired and managed by the OSC offloads the goods, and delivers the freight to the appropriate booth/stand. Warehouse personnel who offload the freight sign the driver’s copy of the bill of lading. The date, time, number of units received, and condition of the shipment is noted on the bill of lading, as are any exceptions in the number of pieces received. The deadline for advance freight to the warehouse should be published and exhibitors advised as it lowers the cost of the shipment for the exhibitor.

Direct FreightDirect freight refers to materials sent directly to an exhibition venue. At the marshaling yard or at the venue’s dock control point, the driver provides a copy of the bill of lading indicating the exhibitor name and booth/stand number. In many cases, the driver must present a certified weight ticket showing the weight of the truck both with and without the exhibition goods being delivered.

Depending on space availability at the loading dock or freight loading/unloading areas, the driver must then wait in line until the OSC grants permission to move. Many venues require union personnel to offload and deliver the exhibit materials to the exhibitor’s booth/stand. When the process is complete, dock personnel sign a copy of the bill of lading indicating the date, time, number of units received, and condition of the shipment, as well as any exceptions in the number of pieces received. Exhibition site material handling rates are generally lower than warehouse rates, because the OSC handles and transports the warehouse shipments more. However, shipping costs can be increased if the exhibitor is charged for wait time or others costs at the exhibition site.

Move-InAt this point, exhibitors arrive, unpack the materials, and set-up their booths/stands, or they supervise union labor or other installation and dismantle (I&D) company personnel. I&D personnel are often provided by the OSC or exhibitor-appointed contractors (EACs). When this process is completed, empty packing units are labeled and picked up for storage prior to the opening of the exhibition.

Move-OutAt the close of the exhibition, the empty containers are returned, and the exhibitors or I&D personnel repack and re-label the materials with return shipping labels. Prior to departure from a U.S. venue, exhibitors must complete and sign the OSC’s material handling form or outbound BOL for each destination, and return the essential documentation to the OSC’s service desk. This document governs the movement of the exhibit materials from the booth/stand to the site loading area, and reloading onto the vehicle of the carrier responsible for the return shipment. However, should an exhibitor arrange an outbound shipment through a carrier other than the OSC, it is the exhibitor’s responsibility to schedule the pickup, confirm that the carrier has the correct schedule, and complete all necessary paperwork prior to loading.

Advance Freight

TYPES OF FREIGHT

Direct Freight


393


The material handling form includes several critical pieces of information:

• Exhibitor name

• Booth/stand number

• Exhibition name

• Number, types, and weights of packing units

• Name of the company receiving the goods

• Delivery address

• Name of carrier; and

• Mode of transportation

One of the most important fields on the OSC’s material handling form concerns instructions for the shipment of any freight or exhibit materials, which may have inadvertently not been picked up by the exhibitor’s carrier. For materials left on the exhibition floor, the exhibitor is given the choice to have the materials returned to the OSC’s warehouse and stored until other arrangements can be made, or return the materials to the exhibitor by the OSC or the official carrier for the exhibition. Once the OSC’s material handling form is signed and returned to the service desk, the exhibitor can depart. The process is complete and the return of the exhibit materials or the forwarding of the materials to another exhibition begins.

Figure 26.2. Loading Dock (Source: Orange County Convention Center)

DIFFERENCES IN INTERNATIONAL SHIPPING

The modes of transportation, processes, and terms for international exhibition shipping are similar, in many ways, to those for Canadian or U.S.-based events. Despite the similarities in shipping between Canada and the U.S., Canada remains an international destination for U.S. exhibitors. However, several important exceptions are integrated into the process. Most international shipments are handled by freight forwarders, or integrated couriers. International exhibition shipping often includes shipping by sea. Although slower than airfreight, ocean vessels are much less expensive for heavier or larger cargo. Additionally,


394


international exhibition forwarding involves customs authorities and procedures in both the country of origin and destination. As a result, international shipments require additional documentation. In general, shipping and on-site material handling is combined. One notable exception is in the U.S. and Canada where the process is handled by different parties.

Freight ForwarderA freight forwarder is a third-party logistics provider that handles export shipments for customers using common carriers (“Events Industry Glossary”). Also known as an integrated courier, this provider generally offers surface or truck, airfreight, and ocean transportation services, as well as customs formalities and brokerage services in the origin and destination countries. Exhibitors prefer to engage the services of freight forwarders because the import and export formalities governing international exhibition forwarding as a process greatly differ from Canadian and U.S.-based freight movement.

One significant way international exhibition forwarding differs from business to business forwarding is that the majority of goods shipped by normal freight forwarders are permanent imports. In other words, these goods stay in the destination country, and are subject to duties and taxes in that country. On the other hand, the overwhelming majority of exhibition goods are temporary imports that are shipped to the destination country and then returned to the origin country; therefore, they are not subject to duties and taxes.

On-site material handling services at international exhibitions include organizing the return shipment. Prior to the close of an international event, the exhibition freight forwarder meets with the exhibitor at the booth/stand, and confirms the method, destination, and details of the return shipment. Based on this interview, the freight forwarder will ask the exhibitor to sign the disposal or return instructions. They will then return with the appropriate shipping labels and a signed copy of the instructions, which are also sent to the exhibition forwarder who handled the inbound portion of the movement.

Import of GoodsGoods can be imported on a temporary basis, which avoids the payment of duties and taxes, (i.e., temporary import bonds, ATA carnets and trade fair bonds).

Temporary Import Bond. The temporary import bond is a surety bond or promissory note provided by the freight forwarder or customs broker at the time goods are imported. It is an insurance policy with customs officials guaranteeing the goods will be exported following the exhibition.

ATA Carnet. An ATA carnet is best described as the passport for cargo, which allows the listed cargo to be imported temporarily in participating countries without the payment of duties and taxes. ATA is an acronym for a temporary admission carnet (pronounced car-nay). Fees for an ATA carnet includes preparation, processing, and payment of a surety bond based on the value of the goods being shipped. Figure 26.3. identifies the component parts of an ATA carnet.


395


TIP

COMPONENTS OF AN ATA CARNET

• Cover page lists owner of goods and the carnet

• Intended destination(s)

• Agents authorized to present the carnet to customs authorities

• General list describing the contents of the shipment; and

• Detachable vouchers for use by customs authorities when goods enter and leave the countries involved in the shipment

A unique and formalized set of documents, which include a front page listing the owner of the goods and the carnet, the intended destinations, agents authorized to present the carnet to customs authorities, a general list describing the contents of the shipment, and detachable vouchers for use by customs authorities when goods enter and leave the countries involved in the shipment.

Figure 26.3. Components of an ATA Carnet

Trade Fair Bond. This document is provided in the name of the exhibition organizer by the official international freight forwarder/customs broker that allows goods to enter a country without payment of duties and taxes. Then, within a specified time period, the document allows the import status of the goods to be changed from temporary to permanent, in the event the exhibitor finds a buyer for the goods.

For all other temporary imports, a commercial invoice or packing list must be used, and a temporary import or trade fair bond fee paid. A commercial invoice or packing list describes each packing unit and its contents, specifically the quantity of items being shipped, a description of the items being shipped, the country of manufacture, the Harmonized Tariff System (HTS) number of the item, and a value for customs. The commercial invoice also includes the shipper’s name and address, the consignee and consignee’s address, the name of the show, and the booth number.

HARMONIZED TARIFF SYSTEM (HTS)

The HTS is a worldwide classification system for goods, which are imported and exported; the HTS has a primary function to identify the commodity or item being shipped for the purposes of tax assessment, as well as to determine any ancillary documentation requirements, such as a certificate of origin.

There are advantages and disadvantages to temporary import bonds, ATA carnets, and trade fair bonds, depending on the destination country or countries, the type and value of commodities being shipped, and the amount of available time prior to shipping. An experienced exhibition forwarder generally advises the international exhibitor which of these methods is best and most cost effective.

International DestinationsDeliveries to international exhibition destinations, outside Canada and the U.S., do not involve a marshaling yard. In addition, international venues are often spread out over large areas and can include many buildings or sometimes two floors.


396


An exhibition freight forwarder is always recommended, primarily because most general or commercial freight forwarders are unfamiliar with the procedures to make timely deliveries to the venues or arrange for this service for exhibitors and do not provide on-site material handling services.

On-site material handling services for international exhibitions also include organizing return shipments. Before the close of an international event, the exhibition freight forwarder meets with the exhibitor at the booth/stand, and confirms the method, destination, and details of the return shipment. Based on this interview, the exhibitor signs the disposal or return instructions. A set of shipping labels and a signed copy of the instructions are returned to the exhibitor with a notification sent to the exhibition forwarder who handled the inbound portion of the movement.

EXHIBITION ORGANIZER FREIGHT

Exhibition organizers require shipment of office materials, files, brochures, and other support materials to the exhibition venue. In some cases, computers, audiovisual equipment, and furniture also require shipment. Additionally, exhibition organizers representing a membership-based association will have materials to support the work of various departments during meetings and program sessions.

The importance of these shipments arriving on time and at the right location is the same as for exhibitors shipping materials to booth/stands. When quantities are limited, shipping by normal business carriers, (i.e., DHL, UPS or FedEx, is cost effective). However, large shipments can be transported by the OSC, or common carrier. An international destination will require the same process as explained earlier in the chapter for exhibitors, (i.e., using an exhibition freight company). Close coordination with the OSC will ensure timely delivery of the materials to the correct location early in the move-in period.

SUMMARY

Arranging the shipment of exhibition materials is one of many tasks required of exhibitors. This task can be frustrating and expensive, since the procedures and the rules can be both complicated and variable within Canada and the U.S. and especially to or from other international destinations. A successful exhibition organizer assists exhibitors by making participation in the event as easy as possible, selecting and recommending contractors who are specialists in shipping and handling exhibition materials.


397


KEY WORDS

advance freight

advance receiving warehouse (ARWH)

air freight forwarder

ATA carnet

bill of lading

cargo insurance

cartage agent

certificate of origin

common carrier

direct freight

excess declared value liability


freight broker

freight forwarder

full truckload (FTL)

general freight forwarder

Harmonized Tariff System (HTS)

hub system

indirect air carrier (IAC)

installation and dismantle company (I&D)

integrated courier

international freight forwarder

less than truckload (LTL)

marshaling yard

material handling form

on-site material handling

temporary import bond

trade fair bond

trade fair bond fee

DISCUSSION QUESTIONS1. What is an advance receiving warehouse (ARWH), and what are the benefits

of using an ARWH?

2. Discuss the available shipping options for shipping to an exhibition venue within the U.S. and the factors exhibitors consider during option selection.

3. How does shipping internationally differ from shipping within the U.S.?

4. What is the significance of the bill of lading?

5. Describe some of the challenges encountered by U.S. exhibitors when shipping exhibition materials to international venues.


399

CHAPTER

27

“I think transportation and corrections are two areas in which I would not go looking for massive change.” – William Weld

TRANSPORTATION

Jeff DucatePresident & Chief Executive Officer

CMAC

Alynne HanfordGlobal Sales Manager of Group & Meeting Travel

American Airlines

LEARNER OUTCOMES


1. Select the modes of transportation best suited for an exhibition and attendees

2. Evaluate the factors affecting the selection of the type of transportation and a transportation provider

3. Outline the advance work required for developing a transportation plan

4. Discuss the components of a request for proposal used to select a transportation provider

5. Summarize the benefits of partnering with an airline


400

CHAPTER 27 Transportation

INTRODUCTION

Because most attendees have to travel to the exhibition in some way, site selection is often influenced by the cost and accessibility of air travel from areas with large numbers of potential attendees. Ground transportation, or how attendees get from their hotels to the exhibition, can also significantly impact the success of the exhibition. If the exhibitors and attendees cannot easily, efficiently, and economically get from their homes to the exhibition, attracting and retaining them will be more difficult.

The exhibition is a service product. The exhibition organizer is a service provider. While the most important service provided is the production of the exhibition, exhibition organizers must never lose sight of the fact that attendees and exhibitors have expectations, including getting to and from the event with limited inconvenience. Transportation is a service for which expectations are high, and, unfortunately, its delivery is not directly under the control of the exhibition organizer.

GROUND TRANSPORTATION

The key to effective and successful ground transportation services is to start early, plan well, and pay close attention to the details. Given the complexity of local regulations, exhibition organizers often engage the services of a ground transportation company that specializes in providing these services. Many factors need to be considered, including labor and union issues, transportation surcharges, local taxes, government licensing or access fees, and fuel, oil, and labor costs. The exhibition organizer must determine how to accommodate the number of individuals to be transported, and must consider the possibility that a single route for a city-wide event could be 50 miles/80.5 kilometers round trip, requiring a fleet of buses over a short time span. Most exhibition organizers with events utilizing a large number of hotels outsource to a ground transportation specialist with experience in the exhibition industry.

Many companies specialize in these services. For example, a destination management company (DMC) may subcontract with a ground transportation company and manage the process on-site. Some work only in their own cities; others work nationally, utilizing local equipment and drivers. As in selecting other vendors, making a good match for the exhibition/event’s unique characteristics will require research and good business practices.

Advance WorkExploring the ground transportation needs is one of the first steps during site selection and should be thoroughly investigated early in the process. To ensure all the necessary services are available, research must be done on all transportation options to and from the airport, exhibition venue and hotels, as well as various tourist destinations near the hotels and exhibition venue. Test runs should be done on the same days of the week and during the same hours when the exhibition is to be held. Although traffic patterns in most cities are heaviest on weekdays in the early morning and mid-afternoon to early evening, the volume and patterns shift dramatically on weekends in many areas. If the event is held on

Labor and union issues

TRANSPORTATION CONSIDERATIONS

Surcharges

Local taxes

Government licensing

Fuel

Labor costs

The exhibition organizer is a service provider


401

Transportation CHAPTER 27

a weekday, and exhibition hours coincide with the city’s normal rush-hour traffic patterns, attendees should expect longer waits for and on shuttle buses, as well as more expensive taxi rides.

Assessing transportation needs during event days and times will reveal how much public parking might be available to those who choose to travel to the exhibition by automobile. Availability of safe walking routes should be considered when possible, as well as public and novel transportation options.

Planning Factors to ConsiderPlanning ground transportation services is critical when a dedicated transportation system is actually needed between host hotels and the exhibition venue. Several factors should be considered in evaluating the need for transportation versus having delegates walk to and from the venue, or utilize other options.

Safety. During the initial site inspection, a thorough walk-through of the areas that attendees may use to access the exhibition venue is useful. Feedback from the facility staff, the security contractor, or local police can also provide valuable information. The walk through should include areas where attendees will access ground transportation options, where they will wait for transportation vehicles, and how they will wait, (e.g., will guests have adequate seating options while they wait?).

Location. If the majority of hotels are only a five- or ten-minute walk from the exhibition venue, most exhibition organizers encourage walking. A short walk is not usually perceived as a hardship by attendees. In fact, many enjoy the brief physical exercise. However, even if the majority of attendees will be walkers, a minimal shuttle service should be offered, primarily for disabled or other attendees unable to walk the distance.

Weather. If the hotels are located within a ten-minute walk, and local weather conditions are favorable year-round, encourage walking. However, always have a plan for inclement weather and for those who might need to carry large and heavy packages.

Walking Options. For some events, a walking program is a good way to encourage a degree of physical exercise for all attendees, and could help the exhibition’s bottom line. A walking promotion may be incorporated into a corporate sponsorship program that will have minimal associated costs, and give the sponsor a highly visible, interactive marketing opportunity. In short, it is possible to make a walking program a value-added component of the exhibition/event.

Limited Shuttle. If there are a limited number of hotels, or a need to minimize the cost of the service, one option is to offer shuttle service on a limited basis. Careful scheduling and planning will be necessary to ensure punctuality. Attendees and exhibitors must be well informed that the shuttle bus will run only at certain times on certain days, (e.g., once in the morning and once in the afternoon). Schedules should be published in all promotional material, and be highly visible via signage at both the exhibit hall and hotels.


402


Other exhibitions/events utilizing a limited number of hotels, or hotels in proximity to the exhibit venue, might run on clock schedules, (e.g., every 15 to 20 minutes or on the half hour). This type of scheduling builds in waiting time at either end of the route, as well as time for minor traffic delays. For example, a transportation unit (usually a bus or van) would be leaving the exhibition hall on the hour. After making the 10 to 20 minute journey to the hotel, the transportation unit would load waiting passengers, wait until the appointed time, and then continue.

Transportation Access. An important consideration in the site-selection process is to review access to the destination, not only the venue. Often, air transportation is of primary concern. However, local public exhibitions must consider access via other modes of transportation, such as public transportation systems. Some questions to address during transportation planning follow.

• What is the interstate highway system like into the area?

• Is it good enough that distance will not be a factor in drawing out-of-area attendees?

• What is the public transportation system like?

o Does it provide service to the facility’s front door, or one or two blocks away?

o Does it provide convenient access to the local airport and train terminals?

• Are the access roads to the facility in good repair?

• Is the facility easy to find?

• What is the parking situation in the immediate area and within a 10-block radius of the facility?

• Are changes planned for the transportation system?

• Will nearby construction affect facility access during the exhibition?

• What is the nearest international airport?

• What are the average parking costs from the airport to the hotel(s) and venue?

Parking. In the case of consumer exhibitions, a much higher percentage of exhibitors and sometimes a sizable majority of attendees will arrive via automobile. In either case, attendees and exhibitors who drive or rent cars locally will need parking space.

Past event statistics and knowledge of the traffic patterns in a particular geographical area can help determine how many parking spaces will be needed. Many exhibition facilities include parking areas. In addition to whatever interior parking is available, the areas surrounding most exhibition facilities usually have surface lots or multi-story parking garages that can be utilized. Proximity to the facility, auto and pedestrian security, and costs are all factors to consider in transportation planning.

TRANSPORTATION PLANNING

Safety

Location

Weather

Walking

Shuttle

Access

Parking

Cost

Convenience


403


Regional and National Transportation. In addition to assessing the local transportation needs, exhibition organizers should also be assessing regional and national transportation links. Several questions must be answered during the site-selection process.

• Does the airport serve as a hub for a major airline?

• Does the airport provide service for regional carriers?

• Does the airport have daily flights from key markets?

• Do the airlines have adequate flights into and out of the destination to accommodate the anticipated number of attendees using this transportation option? If not, can the number of flights be increased temporarily? If not, can other regional airports be utilized, with shuttle transportation from those sites to the hotels near the exhibition facility?

• What is the cost of air travel relative to other destinations?

• What are the transportation links from the airport to the exhibition site? This is a prime consideration, especially if the airport services a sprawling metropolitan area and is more than 20 miles/32 kilometers from the downtown corridor or the exhibition site.

• Is the city serviced by a rapid transit system linking smaller communities by subways or commuter trains?

Costs and Convenience for Attendees. Transportation for out-of-town attendees and exhibitors can be costly, and may affect their decision to attend. This factor should be given careful consideration during the final site-selection process. Another factor is the convenience level provided by transportation options. If attendees must change flights to reach the destination, rent a car or hire a taxi, then switch to train or subway, the multiple transportation methods begin to inconvenience the travelers and may influence the decision to attend or not. If the exhibition organizer can reduce inconvenience, even if costs are higher, the attendees may appreciate the effort.

DEDICATED SHUTTLE SERVICE

Because thousands of people will expect to have easy access to the exhibit venue in a timely and efficient manner, ground transportation needs for large events often present some of the biggest logistical challenges an exhibition organizer can face. Ultimately, the exhibition organizer will have to decide what level of services will be required, and who will bear the cost. Some exhibition organizers restrict shuttle usage to those staying in official hotels, and even to only those who have booked their hotel reservations through the official housing system. Enforcement can be tricky, as attendees have to present a specially imprinted hotel key card or some other identifier before being allowed to board a bus.

Despite the cost, most large exhibitions provide shuttle transportation as a complimentary service, either through direct absorption of the cost, through registration and/or exhibit fees, or by having a sponsor underwrite the cost of the service through a sponsorship agreement (see fig. 27.1.). The level


404


of service offered depends on the number of hotels that are being used by attendees and exhibitors, the complexity of the program, and the expectations and demographics of the attendees.

Figure 27.1. Sponsor Message on a Bus (Source: Event Transportation Systems)

When using multiple hotels, the number of transportation units needed and cost of the entire system depend primarily on how much the exhibition organizer is willing to spend to make the ride time for each attendee as short as possible. Multiple options can create a complicated decision grid, and also make it difficult to predict the final cost. Questions to consider in the decision-making process include the following.

• Will the buses pick up at multiple hotels, but make a return trip to a single designated hotel?

• Will the buses pick up at multiple hotels, and make multiple stops on the return?

• Will buses pick up at only certain times during the day. For instance, service might be provided for a two-hour period in the morning but transportation back to hotels may not happen until the show closes each day.

• How many attendees will want to depart from each hotel early in the day versus later?

• How many people will be exiting the exhibit hall immediately after the exhibition closes each day?

• How many stops will decrease the total riding time of the route, but increase the total cost of the system?

In addition to anticipating potential ridership and planning the transportation routes, the shuttle contractor must also plan for emergencies and other circumstances, which could disrupt transportation plans. The shuttle contractor must ensure that alternate routes have been planned, which can be easily and efficiently implemented with minimal disruptions to attendees.


405


SPECIAL EVENT TRANSPORTATION

Special events are common occurrences with exhibition programs. Some of the more common special events are golf tournaments, opening receptions held at a famous local landmark, restaurant dine-arounds, and pub-crawls.

Transportation for special events is in addition to the daily shuttle system planned to transport guests to and from the exhibit venue, and may be run by the daily shuttle contractor, the exhibition staff, or by a destination management company (DMC). Separate information and schedules must be posted at all pick-up points (see fig. 27.2.).

Figure 27.2. Shuttle Schedule and Staging Area (Source: CMAC)

Several guidelines make planning for special event transportation easier and more efficient. Exhibition organizers should perform the following tasks as part of the planning process for special event transportation.

• List expectations and budget constraints at the outset of the negotiations with the shuttle contractor or other service provider for the event.

• Conduct a site inspection of the special event venue.

• Determine the ability of the venue to accommodate buses. If necessary, explore alternate options, (e.g., smaller buses, vans or limousines).

• Identify other transportation needs for the event, (e.g., key stakeholders or entertainers and their equipment).

• Verify with the service contractor the availability of sufficient vehicles to handle the event. Ensure the regular shuttle service will not be adversely impacted.

• Plan schedules to allow guests sufficient time to return to their hotels prior to the event. If time is a concern, consider providing service directly from the exhibition to the event.


406


• Determine the flow of arrivals, (e.g., arrival over a short period of time or in waves). Predict the guests’ tolerance for waiting, and develop a schedule that meets the needs of guests throughout the event, including early departures.

• Address crowd control issues, (e.g., load lines, adequate signage, special traffic control like local police units).

• Arrange for sufficient space for both people and buses in the staging areas.

DEVELOPING THE REQUEST FOR PROPOSAL

Choosing a qualified ground transportation provider is critical to the overall success of a transportation plan, and the exhibition itself. Using the same format and criteria as used for other contractors, the exhibition organizer will develop a request for proposal (RFP) that outlines the needs, budget, attendees, and type and level of services required.

Costs and Formula for CalculationsIn the RFP, the organizer will request the anticipated cost of the identified services and the calculation formula. Through the RFP process, the exhibition organizer will determine how the contractor is being compensated, (e.g., commission, flat fee, or hourly rate). The RFP must also ask about other charges, such as taxes.

Minimums. Four- and five-hour minimum rates are quite common in major cities, especially when dealing with bus transportation. In the RFP, the organizer should request the minimum rental rates structure and a detailed breakdown of costs.

Surcharges. The RFP should request delineation of surcharges that may be added or are hidden in the contract pricing structure. For example, local taxes, licensing or access fees, fuel, oil, and labor surcharges are potential add-ons that could significantly increase the total cost of the bill. The proposal should state that all such costs are included in the original price quote.

Request for Proposal ContentsNumber, Condition and Availability. The exhibition organizer needs to determine the number and condition of the available ground transportation units, (e.g., buses, vans, and motor coaches). The RFP should request a copy of the company’s maintenance schedule, as well as its policy on unit upgrades and repairs, and the policy regarding back-up units in case of breakdowns or accidents.

Reputation. References – from representatives of groups who have had similar scheduling needs for exhibitions and events of similar size and duration – should be requested in the RFP. A history of the company’s experience and information about the company’s expertise with shuttle transportation should also be mentioned in the RFP.

Special Services. The exhibition organizer should explore provisions for special services, including the ability to accommodate individuals with special needs or


407


disabilities. For example, the Americans With Disabilities Act of 1990 has specific requirements that are required by law in the U.S. while other countries may have similar provisions to consider but may not be required. Special services may include having vehicles with restrooms or water closets or having the capability of showing a video for longer trips.

Fulfillment. The ability of the purveyor to support the terms of a contract can be assessed through in-house handling of the requirements or the number of subcontracts required to fulfill the needs of the exhibition. However, this suggests that the RFP will request information about subcontractors on required services in the proposal. When subcontractors are required, the exhibition organizer must determine how the interests of the exhibition’s stakeholders will be managed and protected.

Operator Experience. The RFP should request a profile of operator (driver) experience to ensure that operators have experience with the equipment the contractor proposes for use. Operators need to be familiar with the area of coverage by residing in the local area or participating in training/orientation programs. If the shuttle is going to a unique location for a special event, the drivers should also be familiar with that location, not just the hotels and exhibition venue. Additionally, the exhibition organizer should request confirmation that licenses and permits of the buses and drivers are in order.

Labor Contracts. The RFP should request information regarding the renewal of operator contracts and restrictions or requirements that may impact the service levels including contract stipulations regarding driver work schedules, overtime, waiting time, or similar issues.

Related ConsiderationsSubsidies. Since many exhibitions offer shuttle service free of charge to the attendees, the exhibition organizer should explore options for subsidies from local government or other options, (e.g., locating a shuttle sponsor or adding a transportation fee to the hotel room rate to cover the cost of the shuttle). Disclosures of subsidies provided by local government generally need to be included in exhibition marketing materials. The local DMC or tourism office can often assist with determining the qualifications of this option.

Sponsors. While the shuttle transportation system could be quite expensive, it is an ideal exhibition asset for sponsorship. A single sponsor may consider underwriting the cost to gain notice in exhibition marketing materials, the program, shuttle signage, and even on-board options to showcase the sponsor’s product or service. The exhibition organizer should explore marketing opportunities and the benefits of underwriting this service with potential sponsors. If this exploration is undertaken when writing the RFP, the sponsor may offer suggestions for services to be provided by the transportation company.

Contracts. The RFP elicits a proposal in response and the accepted proposal leads to a contract. Everything with respect to pricing and service levels should be in writing and fully executed in a contract. Ground transportation costs have been known to spiral completely out of control because the exhibition organizer


408


did not ensure that all additional costs were included in the contract. This risk can be avoided, in part, by developing a thorough RFP and selecting only a thorough proposal when choosing a ground transportation provider.

AIRLINE TRAVEL FOR EXHIBITION ATTENDEES

Many airlines offer group discounts and fares. A travel group is generally defined as 10 or more individuals traveling from various originations and flying to a common destination. The carrier of choice must be consulted for specific details.

The terms and conditions for an airline travel partner vary by airline, event location, and often include amenities the individual traveler is unable to obtain outside the group contract. In return for being named the official carrier for a specific exhibition, the airline typically provides a percentage discount from the published retail fare. Special group fares, (i.e., zone fares), as well as earned complimentary tickets and possible other amenities, are all part of the products and services offered by the airline travel partner.

The exhibition organizer has the potential to earn significant travel rewards that can directly affect the travel budget, while providing a service and benefit to attendees and exhibitors. Travel rewards can also become an attendance builder. In turn, the exhibition organizer agrees to prominently place the information about the discounts in marketing and collateral materials. In some cases, multiple carriers may be necessary, based on the attendee numbers and location of the exhibition.

Tracking ParticipationIn order to obtain these benefits, travelers must reference a specific discount code so that the airline can credit the exhibition organizer. However, tracking these purchases has long been a challenge. Most airline websites have a place to enter the code for tracking participation and have eliminated the fee for ticketing.

Travelers may call the airline directly or use a travel agency for booking, especially if multiple cities are involved, (e.g., flying into and back to a different city). Specialized web search engines may also be able to accept these codes for online processing of exhibition discounts. In these instances, a ticketing fee may apply. Some airlines provide verbiage and a direct link to the airline’s website for booking.

These additions have improved tracking, and thus, improved the potential for earning free tickets by the exhibition organizer.

Group ProductsThree types of group products are generally available from participating carriers.

Discount Off Published Fares. The discount off published fares is usually in effect three days before and after the exhibition dates, thus allowing the traveler to stay at least eight days at the discounted rate. Upon request, additional days may be added.

Zone Fares. Unique group fares called zone fares, are guaranteed for a calendar year, which are changeable, upgradeable, or refundable, less a fee. This fare

TYPES OF GROUP PRODUCTS

Discount off published fares

Zone fares

Multi-event contract


409


type offers a delayed ticketing option, which means the traveler has a seven-day window from date of reservation to ticketing, which is available up to seven days before departure, based on inventory availability.

Multi-event Contract. A calendar year, multi-event contract can be executed for an entire exhibition discount code that results in improved tracking and leads to greater benefits to the exhibition organizer. This option is only available in the U.S. and Canada. A single contract allows the flexibility to add exhibitions throughout the duration of the contract and includes zone fares and a discount off published fares.

AIRLINE TRAVEL FOR OTHER BUSINESS

Whether for site inspections, contractor selection, or visiting competitive events, an exhibition organizer generally travels by air. Occasionally, this type of business travel may be managed under the umbrella of the airline contract previously discussed, especially if the exhibition produces a large number of complimentary tickets or results in obtaining other benefits.

Some exhibition organizers utilize retail travel sites on the Internet for their year-round travel, and use the earned complimentary tickets for travel to and from the exhibition venue.

However, many organizations require employees to book their own travel using either in-house resources, or local retail travel agencies with whom the organization has contracted. This allows the organization or agency to enforce travel policies and monitor expenditures. The agency often charges a transaction fee for each ticket to provide this service.

IMPACT OF AIR TRAVEL AND ROOM BLOCK COMMITMENTS

The manner in which the attendees book air travel and hotel rooms has changed dramatically. Gone are the days when attendees used a special code provided by the exhibition organizer to book air travel and use exhibition-designated discounts on hotel rooms.

Attendees are now savvy shoppers comparing exhibition venues to brokers, hotel websites and other travel sites. This behavioral change has caused a monumental shift in the number of hotel rooms blocked by the exhibition organizer and the number of hotel rooms occupied by exhibition participants that can be credited to the exhibition.

The challenge to the exhibition organizer is to determine the impact of these behavioral changes on developing a shuttle system. As a result, the following questions need to be answered by the exhibition organizer and the ground/air purveyors to resolve the dilemma and have an adequate system to accommodate attendees:

• Where will the attendees come from?

• What are their anticipated arrival times and departures?


410


• How many hotel rooms have been booked outside of the block at official exhibition hotels?

• How many rooms are within walking distance of the facility?

• How many rooms outside of the block are within walking distance to official hotels on the shuttle system?

• What is the projected exhibition attendance versus number of hotel rooms contracted by the exhibition?

• Will the exhibition allow all attendees to ride the shuttle or will the exhibition only transport those who have booked within the block?

GOING GREEN AND THE INFLUENCE OF TECHNOLOGY

The concern for the impact on the environment has never been greater and has become much more prevalent for today’s exhibition organizer. Many exhibition organizers look for ways to reduce or eliminate the carbon footprint of the event. Likewise, the shuttle system provider plays a key role in environmental responsibility.

A reputable ground transportation provider will have methods to calculate the shuttle’s carbon footprint, while providing various opportunities to offset and minimize its impact. A shuttle system by design is green. By providing shuttle service, an exhibition creates a temporary mass transit system, allowing 40+ attendees to ride a single bus, versus using 40 vehicles, (e.g., taxis, limousines, or personal vehicles), for transportation to and from the exhibition/event.

Technology continues to affect every aspect of an exhibition, including transportation. As mobile device technology, (e.g., smartphones and tablets), become increasingly popular, mobile applications are an integral part of an exhibition’s transportation system. For example, shuttle schedules or system routes must be available through mobile applications or the exhibition website. This allows for further greening opportunities as the need for printed pieces, such as shuttle schedules, can be significantly reduced or eliminated.

SUMMARY

Whether planning airline travel or ground transportation, the exhibition organizer must be well informed about all options. Ensuring that attendees and exhibitors can easily and economically access the event will encourage increased and repeat attendance. Booking air travel and utilizing ground transportation is, in many instances, an attendee’s first experience with an exhibition, in much the same way a hotel guest’s first experience is checking in at the front desk – it must be positive.


411


KEY WORDS

airline travel partner

carbon footprint

destination management company

dine-arounds

discount code

discount off published fare

ground transportation specialist

maintenance schedule

minimum rate

multi-event contract

official carrier

on clock schedule

shuttle contractor

sponsorship agreement

subsidies

surcharges

travel group

travel reward

underwrite

unit upgrades and repair

venue

zone fare

DISCUSSION QUESTIONS1. Compare and contrast the types of ground transportation employed by

exhibition organizers.

2. What are the advantages of using a destination management company for planning ground transportation for an exhibition?

3. How can the exhibition organizer mitigate the impact of an emergency or unplanned disruption in transportation?

4. How are changes in attendee behaviors influencing the planning process for transportation?


413

SECTION

6LEGAL, RISK, SAFETY AND

CRISIS MANAGEMENT

CHAPTER 28Basics of Hotel and Venue Contracts

CHAPTER 29Exhibition Insurance

Every business situation requires legal advice and documentation. The focus of this legal section is related primarily to exhibitions and exhibition organizers. In many organizational arrangements, other activities and events surround the exhibition or the exhibition is just a small component of an overall convention, meeting, or event. Since some overlap exists between various scenarios, the principles of managing them are quite similar. Contracts with the destination, venue, facility, and exhibitors are just as important as meeting the needs of the attendees. When bringing together large numbers of people, risks are a real potential and these risks must be addressed through insurance and other plans to appropriately manage a crisis, regardless of its magnitude.

CHAPTER 30Exhibition Security, Risk and Crisis Management

CHAPTER 31Business Ethics


415

CHAPTER

28

“Life is too short to live with a bad deal.” – David Geffen, qtd. in Crainer 177

BASICS OF HOTEL AND VENUE CONTRACTS

Barbara Dunn O’Neal, Esq.Barnes & Thornburg, LLP

Marsha Flanagan, M.Ed.Vice President of Learning Experiences


LEARNER OUTCOMES


1. Identify and discuss the elements of a hotel contract

2. Identify and discuss the elements of a convention center/venue contract

3. Identify and discuss the differences of a hotel contract versus a convention center/venue contract

4. Identify strategies that can be employed to ensure a clear understanding between contracting parties


416

CHAPTER 28 Basics of Hotel and Venue Contracts

LEGAL DISCLAIMER: This chapter provides basic information on hotel and facility contracts. Neither the authors nor the publisher

is engaged in rendering legal advice. When contracts are signed on behalf of an organization, the people who sign the contract

must understand the language and intent of the contract’s contents. Therefore, before signing any legally binding document,

the reader should have the final contract reviewed by legal counsel with a working knowledge of legal agreements in the

exhibitions and events industry. While the information in this chapter is largely U.S. centric, there are some items outlined within

the chapter which are applicable outside of the U. S.

INTRODUCTION

A well-written contract is essential to a successful exhibition/event. Creating an agreement that is mutually fair and reasonable to both parties requires that both parties approach the contract negotiation with honesty and integrity. Exhibition organizers must know what they want to achieve at the beginning of the negotiation process, and how the terms and performance clauses may impact the financial success of the exhibition and the organization. A poorly written contract can, at the very least, result in contentious relations between the facility or hotel and the organizer, and at the very worst, can be financially disastrous. Legal counsel should review venue and hotel contracts before the exhibition organizer signs them. This chapter will cover the basics on what to know regarding hotel and venue contracts.

DEFINITION OF A CONTRACT

A contract is defined as an agreement between two or more competent parties in which there is a promise to do something in return for a valuable benefit known as consideration.

To be considered a legally binding contract, the following elements (see fig. 28.1.) must be included:

• Offer the basic terms of the agreement

• Acceptance (the parties must agree to the terms of the agreement on the exact same terms on which the offer was made – the “mirror image” rule. If the terms of the acceptance are different in any way than those outlined in the offer, it is not acceptance; rather it is a counteroffer which in turn must be accepted by the other party on the exact same terms)

• Consideration (the cause, motive, price, or impelling influence which induces a contracting party to enter into a contract. For a hotel contract, this would include agreeing on the rates to be paid for accommodations in exchange for the hotel agreeing to hold a block of rooms for the other party)

It is important not to assume that a document is a contract just because it is signed by both parties. The document must meet the elements outlined above in order to be a contract. Often, contract negotiations do not lead to a contract especially when the exact same terms are not accepted. Before concluding there is a contract, conduct a thorough review to ensure all elements (offer, acceptance, consideration) are satisfied.


417

Basics of Hotel and Venue Contracts CHAPTER 28

LEGALLY BINDING CONTRACT

OFFER ACCEPTANCE CONSIDERATION

Figure 28.1. Elements of a Legally Binding Contract

GENERAL CONTRACT ELEMENTS OF BOTH HOTEL AND VENUE AGREEMENTS

AttritionAttrition refers to a difference between a number or revenue specified in a contract vs. what is actualized.

Breach of Contract A breach of contract occurs when one party does not perform its obligations as outlined in the contract. This is a serious issue which, if possible, must be avoided but if it cannot be avoided, it should be handled carefully with the assistance of legal counsel. While the common remedy for a breach of contract is monetary damages, the exhibition organizer should understand how those damages are calculated and that appropriate procedures are applied. In some instances, the cause of a breach is beyond the control of either party, and that can lead to other issues that must be resolved.

Cancellation and Performance Just as hotel contracts include cancellation fees, convention center license agreements do as well. If the group cancels the agreement for reasons other than those outlined in the agreement such as force majeure or construction, the group will owe a cancellation fee to the convention center. Force majeure is an event (e.g., war, labor strike, extreme weather, natural disasters, or other disruptive circumstances) or effect that cannot be reasonably anticipated or avoided. Typically, the cancellation fee will be based on a sliding scale in which the farther out from the convention dates the group cancels, the lower the cancellation fee; if the group cancels closer to the convention dates, the cancellation fees will be higher. This approach is consistent with what the law requires in terms of liquidated damages provisions – they must be a reasonable estimate of the parties’ damages and they cannot be a penalty, (i.e., give the party more damages than they will actually incur). Often, parties will also include an obligation on the part of the convention center to attempt to resell the cancelled licensed areas and, if successful, refund a portion of the cancellation fee to the group.

Concurrent Events and Conflicts of Interest Between GroupsThe exhibition organizer should be knowledgeable of competing exhibitions, as well as the dates and locations of those exhibitions. The organizer needs to have a clear understanding of what and how a competing exhibition is defined. A


418


competing exhibition held in proximity and/or at a similar time/date could very well erode the exhibitor, attendee, and customer base. The contract should specify that the exhibition host organization will not share a facility with a competitive or an incompatible exhibition, and also specify a window of time in which a competitive exhibition cannot be scheduled. The exhibition organizer should clearly request that the hotel or convention center notify the organizer about potential bookings of competitive exhibitions after the contract has been signed. Given the importance of this protection, discussions on this issue should happen very early in the process – well before the convention center is selected to host the event.

Contracting PartiesThe full legal name and place of business address should be used in the contract to clearly identify all of the parties bound by the contract. This simple step is very important because the parties to the contract will ultimately be held responsible for any rights, privileges, obligations, and liability created under the final signed contract. If a party uses a fictitious business name or doing business as (d/b/a) name instead of its legal name, then the legal name should be included with the d/b/a name following the legal name in the heading of the contract.

Damage and RepairsIf a group, its employees or contractors damages the hotel/venue (beyond normal wear and tear), the group is responsible for the cost of repairing the damage. It is recommended to insert the word reasonable before the word cost to ensure that the cost of the repair is not excessive. Hotels/venues will typically include a provision in the agreement that they are not liable for damage to or loss of property of the group and its exhibitors no matter how it is caused. It is recommended to modify this statement to add “unless such damage or loss is caused by the convention center, its employees, or contractors.” Also, it is important for the group to ensure that the contracts in place with both its contractors and exhibitors specify that they will take responsibility in the event they cause damage to the convention center.

Dates Including Option Dates Major holidays should be checked to see if they fall within the pattern. For example, Easter, Passover, Christmas, Ramadan, etc. do not fall on the same date or even in the same month every year. Option dates in contracts require that the offer be accepted by the option date or the offer is withdrawn. If a group accepts a contract after the option date, the option date should be updated before the group signs the contract so as not to raise an issue that the group signed a stale document in which an offer and acceptance do not meet the requirements noted above.

Deposit Fees and RefundsA deposit is an advance cash payment for a service or venue. Such payment obligates the accepting party to provide the space or service contracted for as stated in the contract. The actual deposit and payment schedule should be spelled out completely in the contract. Most convention centers require payment of the full license fee at least 30 days prior to the event. This full prepayment is generally non-negotiable. Note that in some instances of cancellation, such as force majeure, the deposits may be refundable.


419


Termination of Contract/ExitsJust like any room needs an exit, so does the contract. There are typically two types of exits in contracts: termination for cause and termination for no cause (sometimes referred to as “termination for convenience”). As noted above, a breach of contract would be considered a “termination for cause” whereas a group deciding it no longer wants to hold its event at the facility would be considered a termination for convenience and would trigger the cancellation fees noted above.

Food and BeverageFood and beverage is usually provided by an exclusive supplier. For groups that host food-related shows, convention centers will often agree to include an exception to allow the group’s exhibitors to distribute sample sizes of food and beverage and, in some instances, agree that the sample size may be larger than the standard sample size. Further, some convention centers will require the group to commit to a food and beverage minimum in order to secure a discount to the rental fee. If this is included, it is important to carefully review the provision to make sure it reflects the group’s prior discussions with the convention center. Also, if the group is relying on sponsored or affiliate food and beverage functions at the convention center, the group must ensure this provision includes a statement that any food and beverage revenue generated by the group’s sponsors and affiliates will be credited toward the group’s food and beverage minimum. Exhibitions, almost without exception, have scheduled food and beverage functions. The cost of these functions can be paid directly by the exhibitors and attendees at cash bars or at cash-and-carry food service stands, and by sponsors or affiliate organizations. The exhibition organizer should have the facility agree to a specific date when they will provide confirmed food and beverage prices. The organization should determine the facility’s gratuity and service charges policy, since they are not one-in-the-same. The facility should explain the corkage fee pricing structure if an exhibition sponsor or exhibitor brings their own line of food or beverage products into the facility for distribution and/or on-site consumption during the exhibition.

Regardless of the source of payment for these food and beverage functions, if the contract contains a minimum food and beverage revenue guarantee (expenditures) provision or provides for a cancellation fee for food and beverage functions, the exhibition organizer should be credited on the final invoice for any and all revenue generated by the organization’s overall exhibition taking place at the facility, including the exhibitors’ and affiliates’ catered exhibitions.

Most hotel and convention centers require an attendee guarantee by a deadline date usually well in advance of the actual function. By this deadline, the organizer must provide the facility with a minimum number of guaranteed covers (attendance figures). This is the minimum the facility will charge, and even if the actual numbers are less, the organization must pay the minimum guaranteed number. Also, the facility rarely will provide more than about 10 percent over the guaranteed number for food and beverage, but this additional provision will be added to the minimum (e.g., the organizer guarantees 5,000 attendees for a luncheon, the facility will provide enough food for 5,500). Any food and beverage


420


attrition fee should be based on lost profits (net revenue) from sales due to lower than expected sales (lower participation than the guarantee). The guaranteed cover deadline date and attrition fees, including the formula for calculating such fees, should be specified in the contract.

Force MajeureWhile most agreements include a force majeure provision, the provisions typically only permit cancellation without liability if something happens to the convention center. They typically do not address the possibility that the group’s performance of the contract may be affected by a force majeure event. As such, the group must ensure they negotiate this provision to allow for cancellation if the group’s ability to perform the contract is affected as well. Most convention centers will agree to make this change but often the verbiage will vary. If the contract is cancelled for these reasons, the provision should provide that the convention center will refund all deposits and prepayments made to it by the group.

Functions and Function SpaceFunction space is usually a designated area specifically designed and equipped to be used for exhibitions and events such as exhibits, general sessions, seminars, workshops, committee meetings, board meetings, and food and beverage functions. Generally, this space is referred to as function or meeting space. Hotels/venues may or may not charge the organization for function space use, depending on a number of factors. It is essential to include a provision that the hotel/venue may not reassign/change meeting or function space without the group’s prior written consent.

Garbage Disposal/Abandoned PropertyA facility commonly charges for trash removal, especially if they need special equipment or extra personnel to do the job. The exhibition organizer should be aware that these charges do exist, and are warranted. Consider negotiating for one or more trash hauling bins to be provided and emptied by the facility at no cost. From the facility’s perspective, the amount of abandoned property and garbage for disposal may lead to unanticipated expenses, and, depending on the contract, the exhibition organizer or the facility may be obligated to cover those expenses.

IndemnificationIndemnification provisions should be included in all contracts for exhibitions and events because they serve as a way to shift the risk of liability from one party to the other. In such provisions, one party agrees to pay damages, costs, expenses, or claims that the other party may be required to pay to another due to that party’s fault. For example, if a group is sued by an attendee that is injured at an event due to the fault of the hotel (e.g., slip and fall on broken step), an indemnification clause might require the hotel to indemnify the group– essentially keep the hotel “whole” from a financial liability standpoint; hence the term hold harmless which is a common name for such provisions. In convention center contracts, it is often difficult to get the convention center to agree to indemnify the group. The convention center may be publicly owned and therefore prohibited from indemnifying the group. It is recommended to always ask for it, though, as some convention centers can offer the group a modified indemnification provision.


421


InsuranceIt is important to ensure that the party providing goods and services carries liability insurance and the contract should refer to the types of insurance and coverage amounts of the insurance. A certificate of insurance proving coverage should be provided as well. Convention centers require robust insurance coverage for any groups using the space. Everything from general liability, auto liability, and worker’s compensation insurance. It is important to ensure the group’s coverage meets with these requirements in terms of types of insurance and coverage amounts.

Late PaymentsAll items subject to late payment in the contract should be identified. The exhibition organizer should establish a schedule that defines lateness, as well as what, if any, late fees will be incurred. It must be a time frame that can reasonably be met. For example, if the other party’s billing procedures are such that it takes extra time to process a payment, or billing documentation may not have been provided, the organizer should not have to pay a late fee for a problem. The same is true for disputed charges. The group should make clear that undisputed charges will be paid in a timely manner but that there is no late fee for disputed charges until the parties resolve the dispute.

Master Accounts: Billing and Credit ArrangementsThe exhibition organizer should make arrangements with the other party to review charges to the master account on a daily basis and/or very carefully review the figures before the end of the event if at all possible. This is the best time to do so, because memories are fresh concerning the various functions and possible charges, making final approval and payment of the bill much easier. Many contracts state that the master account is due 30 days from the date of the invoice. It is recommended to change this provision to 30 days from the date the group receives the invoice together with supporting information and documentation – the latter will allow the group to verify the charges.

Meeting Room Setup ChargesFacility-employed labor will set up the meeting rooms and other areas based on the organization’s specifications. Function space setups that go beyond the established minimum standard almost always result in set-up charges. Facility and organization representatives must agree on a definition for this norm. In many cases, it will be theater, U-shape, hollow-square, or conference style set ups, along with a head table and a podium. If there are charges, the exhibition organizer should ask for a written breakdown of the charges. Convention centers may provide an initial room set and charge a fee to change

Non-AssignmentThe exhibition organizer is contracting with a company to provide goods or services because it is their company. If their company gets bought out the day after the contract is signed, the organizer may not want to do business with the new company. As such, a non-assignment provision typically provides that neither party may assign its rights or responsibilities under the contract without the prior written consent of the other party.


422


ParkingInquire about the types of parking facilities and arrangements available at any facility being considered. Negotiate the rate to be paid for any parking when contracting far in advance. Any special parking arrangements and negotiated discounts should be stated in the agreement, especially if the exhibition attracts a lot of drive-in or daily attendees.

Periodic Review and Modification of Terms and ConditionsWhen a contract contains a review clause based on evaluation of an exhibition organizer’s past performance or expectations for a future event, the other party should not have the right to unilaterally adjust the amount of space or services to be provided, without the organization’s prior written consent. All parties need to be involved in the decision. This is important because if the other party does adjust the amount of goods or services to be provided or the amount of function space or guestrooms to be blocked based on the organization’s prior history or future projections, the organization could still be held liable for performance/attrition fees if the predetermined percentage of the original contracted quantity is not fulfilled.

Set-Up and Tear-Down TimeThe facility and outside contractors or working volunteers need time to prepare (set-up) for an exhibition and ancillary scheduled functions and to remove (tear-down) furniture, equipment, etc. at the exhibition’s conclusion. These time requirements should be addressed and provided for in the schedule of events provided to the facility. The facility should also define whether any additional charges will be applied for set-up and tear-down time or if it is part of the overall function space rental charges.

Subject Matter or Goods and Services The contract should contain a detailed summary of the goods and services. Often these can be included as an addendum, sometimes referred to as an exhibit, to the contract. When drafting or reviewing the summary, the buyer will want the summary to be as comprehensive as possible; and if it is the seller, the summary should be clear and items identified which are not included but may be available at an additional cost (e.g., guest rooms, conference rooms, convention center space, catering).

ELEMENTS SPECIFIC TO HOTEL CONTRACTS AND KEY TERMS

Whether the exhibition organizer is drafting a contract or reviewing another company’s contract, key terms should be included.

Room Block AttritionRoom block attrition fees are designed to allow the hotel to recover monetary damages for losses it may sustain if the group fails to use the total number of contracted rooms. The hotel typically allows for a variance in room pick up, for example, 10 percent or 20 percent of the contracted room block.

Attrition fees are then calculated by taking the difference between the actual


423


number of sleeping rooms utilized and paid for by the group and its attendees (regardless of the rate paid or how guests reserved their room) and the minimum number of rooms the group contracted, factoring in any slippage multiplied by a dollar amount which typically is the group’s single room rate less any commission or rebate. It is important to receive information and documentation regarding attrition fees before paying them as such information often yields information that the group has utilized more rooms than the hotel first reported. Also, groups have the ability to negotiate for credit for rooms the hotel has resold over the contracted dates.

Example:

The exhibition organizer contracts a group room block guaranteeing 10,000 hotel rooms will be sold on a cumulative basis. The contract states the attrition rate is 90 percent. The actual rooms booked was 8,000. In this instance, the exhibition organizer is required to fill 9,000 hotel rooms on a cumulative basis. Only 8,000 were sold and in this instance will have to pay attrition fees for the 1,000 hotel rooms not sold.

Food and Beverage Attrition FeesHotels will often include a minimum amount of revenue the exhibition organizer must generate from banquet food and beverage revenue (excluding tax and service charges). If the organizer does not generate the minimum revenue, the difference will need to be paid (or sometimes a percentage of the difference) between the minimum banquet food and beverage revenue and the actual food and beverage revenue generated. It is important to include banquet food and beverage revenue generated from the group’s sponsors and affiliates in the group’s actual banquet food and beverage revenue.

Commissions and RebatesContracts with hotels are sometimes negotiated to include a commission and/or rebate to either a third party or back to the contracting organization. A commission is typically based on a percentage of the room rate, while a rebate is typically a set dollar amount per room, per night that is included in the room rate. If a commission or rebate is to be paid to the exhibition organization or a third-party company based on revenue generated by the event or guestroom utilization, great care must be taken in crafting the commission payment clause; exactly how it is to be calculated and who will receive it must be clearly stated. Note that when the party to receive the commission is named in the contract, that party cannot be changed to another party or be removed without the prior written consent of the party named in the contract.

Staff Rates and Complimentary Rooms AllotmentExhibition organizers should add a provision into the contract providing special guestroom rates for speakers and staff, if those rooms are not covered by the complimentary guestroom allotment. Typically, hotels will grant complimentary room nights to groups based on how many total rooms the group utilizes during its


424


stay, (e.g., one complimentary room per every 40 rooms utilized). It is important to include a statement as to whether the earned complimentary rooms must be used during the meeting dates or whether the group can use the complimentary room nights as a credit to its master account at its single room rate.

Cut-Off DatesCut-off dates are dates in a contract delineating a deadline after which the client must release or add to the commitment for the guestroom block. After this time, the hotel will sell its rooms to any potential customer, and depending on the type of attrition clause, still hold the exhibition organizer liable for guestrooms not picked-up. It is recommended to include a statement that after the cut-off date, the group room rate is still available on a space available basis.

Function Space ChargesFormulas are sometimes used in hotel contracts to establish the basis for function space charges, based on an organization’s guestroom pick-up. These formulas may allow the hotel to assess the group two separate attrition fees, one for lost guestroom revenue and a second fee for meeting charges. Both fees are based upon guestroom night use. Exhibition organizers should be exceedingly careful when reviewing and entering into contracts with these types of provisions. Ideally, the function space charges should be removed if the group has committed to a minimum number of rooms it will utilize since it will have to pay for such rooms either by putting “heads in beds” or by paying room block attrition fees.

Example:

Percentage of Room Block Utilized by Group Total Function Space Fee100% – 80% $0

70% – 79% $5,000

60% or less $10,000

Guestroom RatesGuestroom rates must be stated in the contract. With meetings well into the future (e.g., three or more years away) include a confirmed current year rate with an escalator as to how much that rate can be increased each year until the time of the meeting.

Example:

Contract signed in 2018 for meeting in 2025. Contract provides a discounted rate for 2018 of $150. Parties agree that such rate will not be increased by more than 3 percent per year and the final rate will be established in 2024 – one year prior to the meeting dates.


425


Guestroom rates can be based on a variety of factors, including the type of occupancy:

• Single = one person

• Single/double = one person/one full-size bed

• double/double = two persons, two beds, etc.

• Guestroom category (standard, deluxe, or executive accommodations) and

• Location of the guestroom in the hotel (executive club floor, view from room, or floor number).

Sometimes guestroom rates are solely based on the demand for guestrooms over the time frame being requested or the size of the room block requested by a group, generally known as run-of-the-house guestroom rates. Rack rates or published rates, as they are commonly named, are the rates for single and double occupancy that the hotel will offer to the general public or an individual who has arrived at the hotel without a room reservation.

Guestroom Rate PlansA good practice when starting the rate negotiation phase is to determine which of the following rate plans will be applicable to a group. e.g., American, Modified American, Continental plan or European Plan. Under an American plan, three full meals are included each day in the room rate. The Modified American plan includes breakfast and dinner, and the continental plan includes breakfast each morning, from which has stemmed the cottage industry known as bed and breakfast inns. The European plan means only the stay is included in the rates and guests will pay extra for using dining facilities.

Relocation/Walking of GuestsSometimes a guest may show up at a hotel and find the hotel sold out, even though the person has a confirmed reservation. A clear policy specifying how dishonored reservations (walked guests) will be handled should be included in the contract. The industry standard has been that a hotel will relocate the displaced guest to another nearby hotel. The negotiator should be sure it is an equal or better hotel and define the term nearby hotel as a measure of miles/kilometers (radius) from the hotel. Transportation to and from the alternate hotel to the contracted hotel should be paid for by the contracted hotel along with guest room Internet access.

Room BlockA room block indicates the total number of sleeping rooms that are contracted for utilization and attributable to one event. In determining the number of rooms needed, consider past history or if a new event, it most likely will be a guess. Regardless, it is best to book ultra-conservatively. An exhibition organizer’s confirmed guestroom rates are usually based on some negotiated variation of the hotel’s published rack rates structure, as they exist about one year prior to the actual meeting dates.


426


Service Fees, Resort Fees, Surcharges, and Cost IncreasesHotels are adding resort/hotel fees, surcharges and mandatory service fees, on a per-room, per-night basis, on top of the guest’s confirmed guestroom rate. The exhibition organizer should add a provision into the contract that no hotel or resort fees or surcharges will be added for services already provided by the hotel on a complimentary basis at the time the contract is signed, and that all gratuities and service charges for individuals utilizing the hotel’s facilities (e.g., gym, tennis court, etc.) will be at the guests’ discretion except for in-room food service or as otherwise provided in the contract. If resort fees will apply, it is important to include a confirmed resort fee for the meeting and a list of items which are included in the resort fee, as well as a statement that the hotel may not modify the resort fee inclusions unless it is to add new inclusions.

Substitution of NamesAn unavoidable circumstance sometimes arises that a guest who has reserved a hotel room needs to cancel and would like to substitute another person’s name to take the reservation. The exhibition organizer should consider adding a provision in the contract whereby the hotel agrees to the substitution of guest names after the cut-off date for like guestrooms previously reserved, but which would be cancelled.

Non-AssignmentAn exhibition organizer will contract with a variety of companies to provide goods or services. The organizer may have contracted because of the company. For instance, a relationship has been developed over time with an official service contractor. However, if the official service contractor company gets bought out the day after the contract is signed, the organizer may not want to do business with the new company. As such, a non-assignment provision typically provides that neither party may assign its rights or responsibilities under the contract without the prior written consent of the other party.

ELEMENTS SPECIFIC TO VENUE CONTRACTS AND KEY TERMS

While discussion is often centered around hotel contracts, convention center license agreements are less discussed despite being much more complex. It is important to demystify these contracts and focus on the key issues to address. At the outset, it is important to note that most convention centers are publicly owned buildings – some by the city, county or state – even though they are often managed by private management companies. From a business standpoint, working with public entities can be challenging given government bureaucracy. From a legal standpoint, it is often true that public entities – such as cities and counties – are restricted or prohibited from indemnifying another organization. Following is a checklist of items to review and consider with any convention center license agreement.

Construction/RenovationConvention centers will often make improvements and expand or modify their space. That is great when it happens before the meeting but when it is ongoing during the meeting, in all likelihood there will be problems (e.g., noise, space may be blocked, parking may be a problem, etc.). It is important to include a


427


construction provision in the agreement which requires the convention center to notify the group if construction is occurring just prior to or during the group’s event. Include a statement that the convention center and group will work together to resolve any issues relating to the construction at the convention center’s cost. Most importantly, though, the provision should address the contingency that if the group still believes the construction will affect its meeting, the group may cancel the contract without liability. This is often a contentious issue during a negotiation but one which is important to negotiate and to ensure the group is comfortable with the language.

Control of Concessions SalesWhen no concession type activity is planned (such as souvenir sales or other types of items generally accompanying public exhibitions like concerts), this clause should be removed from the facility contract or should be clarified so the exhibition organizer knows exactly what is covered by this clause. This type of activity could impact ancillary activities (such as literature kiosks, or book/sundry sales), as well as exhibitor promotional activities, if the facility has a gift shop, pro shop, business center, etc.

Exclusive ServicesConvention centers have many exclusive suppliers of goods and services. These service providers can be considered as two categories: safety and non-safety. The safety suppliers (e.g., rigging, electrical, etc.) are non-negotiable. The non-safety suppliers (e.g., audio visual, floral, etc.) are often negotiable. The key is to carefully review the list of exclusive suppliers and ensure none of these services conflicts with the exhibition organizer’s pre-selected suppliers. Also, convention centers often have exclusive suppliers of goods or souvenirs. For groups which do sell group-related merchandise such as books, apparel, etc., it is important to include an exception in the exclusive supplier provision which allows the group to conduct those activities at no additional charge.

HousekeepingAt the end of each day, the exhibit floor will need to be cleaned, vacuumed, and trash cans emptied. Often housekeeping is provided by an exclusive supplier. The license agreement should include a statement as to the frequency of cleaning and maintenance and the quality of the service.

Lease or License FeeLeasing or licensing fees is an area which is negotiable. Cities and destination marketing organizations, sometimes referred to as convention and visitors bureaus, frequently make offers to groups to win their business. Those offers come with heavy discounts to license fees and even license fee waivers. The amount of discount may be based on the amount of hotel rooms used in the city. Other times it may be based on the amount of food and beverage spend at the convention center. It is important to ensure the language is clear on the licensing fees. If fees are to be paid, often they are based on square footage of space leased. Space for meeting offices, for example, are not charged. It is important to verify all space, dates, and times including move-in and move-out times. Often, there are errors or differences in space based on the space discussed during the


428


site visit. It is also important to include a statement that the convention center cannot reassign any of the licensed space without the prior written consent of the group. An addendum to the lease agreement detailing the changes should be signed by both parties.

Move-In/Move-Out CostsA group generally will receive a pre-determined number of complimentary move-in and move-out days at most publicly owned convention center facilities; however, not all facilities provide the same arrangements. Most hotels and private convention center facilities do not, as standard policy, provide any complimentary move-in/move-out days.

PermitsThe host organization must obtain all licenses or permits as required by local laws and ordinances. The organization should determine applicable fees and who is responsible for payment of such fees for each permit or license required (i.e., organization or exhibitor). In the U.S., for example, cities charge a fee for fire marshal approval of exhibition plans, or require a fire marshal to be on the premises during the exhibition. This cost should be added to the budget for the exhibition.

Quiet EnjoymentNo one likes being interrupted. Whether it is noise, odors or dust. Exhibition organizers should include a provision in the license agreement which ensures that it may have use of the space without such interruptions. It should also state that if the group’s use is interrupted, the convention center will respond to the issues right away and resolve the concern.

Exhibition Hall Rental: Included and Excluded ServicesFacilities should list in the facility contract the services or items that are included in the rental rates, as well as the services for which additional charges apply. The exhibition organizer should insist on these stipulations in the contract in order to have a clear understanding for budgeting and planning, and to be sure there are no surprises. The following items may or may not be included in the exhibit rental rate depending on the type of facility to be utilized:

• General hall cleaning, general lighting, air conditioning and heating during move-in days, exhibition hours, and move-out days

• Storage and office space

• Electricity, gas, plumbing, water, necessary signage

• Telephone service and internet access

• Cost of hall cleaning; and

• Specified level of security

Tax laws vary and while the exhibition facilities should charge the appropriate amount of taxes, or inform the exhibition host about taxes due, the exhibition host is also responsible for understanding and complying with applicable laws. The facility should provide information concerning the percent (or amount) of any sales taxes, excise taxes, and/or royalty fees on rental charges, space sales,


429


exhibitors’ sales activities or ticket sales, as well as to whom and when these levies must be paid. Additionally, the exhibition organizer should check the local and state taxes, including taxes on gratuities and other taxes, when hosting an exhibition in the U.S., and regional taxes in other countries.

CALCULATING EXHIBITION HALL RENTAL FEES

Formulas for calculating rental rates are generally based on one the following:

1) Net square feet/meters of exhibit space/per day or for the duration of the exhibition;

2) A flat rate for entire exhibition hall/per day or for the duration of the exhibition; or

3) Per booth/stand per day or for the duration of the exhibition

The contract should specify what, if any, charges will be realized for move-in and move-out days; and what rental charges, if any, will be applied to non-commercial (non-revenue producing), educational, or public service exhibits.

Figure 28.2. Calculating Exhibition Hall Rental Fees

Removal of PersonsMost license agreements permit the convention center to remove persons who are disruptive and not obeying the rules. Because the group could be sued for injuries relating to the convention center’s aggressive removal of a person, the recommendation is to include the phrase “with reasonable force” alongside the word “removal.”

Right of AccessMost license agreements will include the right of access for convention center personnel. The recommendation is to include a statement that the convention center’s access will not unreasonably interfere with the group’s use of the space.

Rules and RegulationsMost convention centers have very detailed rules and regulations or guidelines. Typically, these documents contain the specifics of what the group can and cannot do in terms of set up, décor, etc. These rules and regulations are usually attached to and referred to in the license agreement. It is important that the group review a copy of these rules and regulations and make sure that they meet with the approval of the exhibition organizer and the official service contractor. Many convention centers reserve the right to modify the rules and regulations but it is important to include a statement that any modifications to economic items (e.g., increase in charges or service fees) will not apply to the exhibition.

SecurityConvention centers will require groups to hire their own security. Often the levels of security, and areas to be monitored by security personnel are determined at the convention center’s sole discretion. The recommendation is to build in a statement that the convention center and group will mutually agree on the level of staffing or that at a minimum, the convention center will discuss such levels with the group first. It is also important to understand the types and levels of security the convention center will provide.


430


Signs and DisplaysBoth convention centers and hotels are rightfully concerned about the overall appearance and condition of their facilities, especially the public and function space areas. A facility may insert a paragraph into the contract pertaining to the posting of signs and displays. Although these clauses usually are not problematic to an exhibition organizer, they should be reviewed carefully to ensure that they will not be in conflict with the exhibition’s requirements. The exhibition organizer should find out who is authorized to hang the organization’s signage, and what, if any, charges are associated with the hanging of signs, banners, and setting up free-standing displays.

Special LimitationsEvery exhibition facility has special limitations, such as floor-load limits, dock space, doors to the facility, truck-marshaling areas, empty storage space, and trash removal. The exhibition organizer should determine the effect and the extent that such limitations will have on move-in, the days the exhibition is open, and move-out. These stipulations should be in writing and provided during the site-selection or contract negotiation process.

TechnologyTechnology has become an essential component of any facility contract these days. If the convention center has made a commitment in terms of Wi-Fi, the recommendation is to add a provision to the contract to address the possibility that the service may not be functional or may have interruptions. In such an event, the convention center should work to correct the problem immediately. Also include in the agreement areas in which free Wi-Fi will be provided.

Union JurisdictionIn the U.S., the labor union situation, if any, varies by locale. Union work rules can significantly affect the actual move-in/move-out schedule, who is allowed to do the work, and its associated costs. Exhibition organizers should understand the rules of the union with jurisdiction in the facility. Paying for more move-in and move-out days may save on labor costs; but the exhibition host is responsible for determining the most cost-effective methods for the selected location. The facility representatives and staff from the local DMO will be helpful when making this decision.

Ask the facility which unions have jurisdiction: teamsters, electricians, riggers, carpenters, decorators, stagehands, etc. The exhibition organizer needs to know the expiration dates of union contracts and should find out if the facility requires the hiring of union labor for all available positions (e.g., guards, ticket sellers for public exhibitions, etc.). Some locales have no applicable unions.

UtilitiesConvention centers will provide various utilities including lighting and heating and cooling. For move in and move out days, the levels of such utilities will usually be cut in half. Including a provision which states that if there are any interruptions in utility service, the convention center will use its best efforts to correct such interruptions as soon as possible is recommended.


431


KEY TERMS TO BEWARE OF IN ANY CONTRACT

Dispute ResolutionMany contracts include a provision regarding dispute resolution. Often this provision refers to which state/province and country law will govern the contract and which courts have forum to hear the dispute. Other contracts may have provisions specifying that disputes be resolved by mediation or arbitration. Because each of these options can have a significant impact on the dispute and the cost to resolve the dispute, the exhibition organizer should consult their legal counsel to determine which, if any, dispute resolution option is best for the company.

Limitation of Liability Limitation of Liability provisions are often found in “ALL CAPS” in contracts as they are required to be conspicuous to the reader. Essentially the language serves to limit a party’s liability for certain types of damages (i.e., consequential damages or lost profit) and/or tries to cap liability at the dollar amount which would have been paid under the agreement. Consequential damages (also sometimes referred to as indirect or “special” damages), include loss of product and loss of profit or revenue and may be recovered if it is determined such damages were reasonably foreseeable or “within the contemplation of the parties” at the time of contract formation.

For example, if a contract contains a limitation of liability provision capping damages at what the customer pays for products, if a customer paid $10,000 for 100 widgets, the customer can only recover up to that amount if there is a claim regarding the quality of the widgets, the most that can be recovered from the manufacturer would be $10,000. This provision should be discussed with legal counsel prior to the accepting the terms.

Prevailing Party Attorney’s FeesIt is the general rule in the U.S. that each party pays for its own attorney’s fees when there is a dispute. As such, contracts do not need to specify payment of attorney’s fees. However, often a provision might be included in the contract which states that if there is a dispute arising out of the contract, the prevailing party, (i.e., the winner), is entitled to recover its attorney’s fees from the non-prevailing party. This provision should be closely reviewed by legal counsel prior to acceptance.


432


EXHIBITOR CONTRACTS

It is equally important that the organizer of an exhibition implement contracts between the organizer’s company and the exhibiting companies. Based on the facility’s rules and regulations, the organization’s exhibitor contract should include the following information:

• Name of the exhibitor

• Date of the contract

• Booth/stand number(s)

• Cost of the space

• An agreement to abide by the exhibition’s rules, regulations, and official floor plan

• The exhibitor’s signature and the exhibition organizer’s signature

• Nature of payment of exhibit fees

• Exhibit hours

• Completed installation date and time

• Height and sign limitations

• Space sharing arrangements

• Operation of sound and lighting equipment information

• Indemnification/save (hold) harmless clause for the group and facility

• Insurance requirements

• Security service details

• Compliance with Americans with Disabilities Act

• Right to photograph/videotape exhibitor, booth and booth personnel

• Music licensing

• Use of attendee data

• Union requirements

• Move-in, move-out date(s) and time(s)

• Safety and fire regulations

• Garbage removal

• Storage provisions

• Right to modify booth space

• Right to cancel event due to force majeure

• Organizer’s right to interpret contract terms, to modify such terms with notice to exhibitor, to remove any exhibitor which fails to comply with the terms, and to interpret all rules in its sole discretion and

• Cancellation details. Strongly consider using IAEE’s Guidelines for Display Rules and Regulations as part of the exhibition’s rules, or the IAEE White Paper: Evaluating and Implementing Cubic Content into Linear Feet, as appropriate

Figure 28.3. Elements of an Exhibitor Contract


433


OTHER ITEMS TO CONSIDER AND UNIQUE DIFFERENCES BETWEEN U.S. CENTRIC CONTRACTS AND GLOBAL CONTRACTS

MEETINGS, TECHNOLOGY AND DATA: OH MY!

Organizations are continuing to expand the scope of their use of new technology and social media in connection with their meetings and events. With the new technology comes new potential areas of liability which must be considered including trademark and copyright infringement, defamation, and compliance with laws.

Liability ExposureGiven that social media postings involve a variety of mediums such as photos, videos and music, organizations should look before they post. Of primary concern is copyright infringement. A copyright protects original works of authorship. The creator of the work, such as a photographer or videographer, owns the copyright to the work unless the creator is an employee of the organization and created the work as part of their employment (in that case, the organization owns the copyright to the work). Any information included in a social media posting should either be owned by the organization which is posting the information or the organization should have permission from the copyright owner to include their copyrighted material in their posting.

Social Media PoliciesAs the use of social media by organizations and their meeting participants increases, the concerns regarding liability and appropriate use of social media remain. Organizations should ensure that they have social media policies in place with both their employees as well as their meeting attendees to ensure appropriate behavior and, if not, give them a remedy for violation of the policy.

In the U.S., the National Labor Relations Board (NLRB), recently issued regulations for employees which make clear that employers cannot restrict their employees from discussing protected activities – namely wages, hours and working conditions – in social media settings. As such, employers cannot prohibit their employees from discussing any work-related items on their social media pages. Note that the policies can prohibit unprofessional comments and complaints.

For attendees, the exhibition organizing company should ensure that it has a social media policy which is written to restrict attendees from engaging in activity which is inappropriate and unprofessional. The policy should be written such that attendees who engage in inappropriate behavior may be terminated from participation in the organization’s event and social media site.

Data Protection LawsWith the European Union’s General Data Protection Regulations (GDPR) and more U. S. states such as California and Massachusetts enacting robust data protection laws, organizations need to ensure that the data they collected from their attendees for registration contains a consent from the person that the organization can use the data or distribute it to the organization’s vendors.


434


More and more contracts include indemnification provisions which make the organization responsible for any liability associated with its failure to secure proper consent from attendees before their data is shared.

Meeting AppsWith the advent of new technology and applications comes the risk that organizations may be held responsible for any damages relating to an attendee’s download or use of an app. It is important to ensure that anyone downloading the app will have access to a notice and disclaimer which provides that the organization is not responsible for any costs of liability arising out of their download or use of the app. In addition, data from someone’s use of the app should be included in any consent as noted above.

Notices and DisclaimersNotices and disclaimers in agreements are very effective techniques to manage risks especially in connection with the organization’s group pages on third party websites such as LinkedIn and Facebook. The notice should provide that the comments posted in the group are those of the individuals and not of the organization. Further, a disclaimer should be included which provides that the organization will not be held liable for content posted in the group. In order to enhance its enforceability, the notice and disclaimer should be posted in a visible section of the page.

General Data Protection Regulations (GDPR)The General Data Protection Regulation or GDPR replaces the Data Protection Directive 95/46/EC and was designed to harmonize data privacy laws across Europe. Its purpose is to protect and empower the data privacy of all European Union (EU) citizens and to reshape the way organizations across the region approach data privacy.

After four years of preparation and debate the GDPR was finally approved by the EU Parliament on 14 April 2016. The enforcement date of these new policies was 25 May 2018, at which time organizations in non-compliance could face heavy fines as high as $24 million USD / €20 million.

So What is GDPR?The GDPR is intended to harmonize the many European Union (EU) regulations – the first of which debuted in 2012, and hopes to regulate the processing of Personal Data (PD) of EU residents to include items such as: name, email address, identification number, online identifier (IP address, social media handles, etc.), picture, etc.

GDPR applies to any organization that processes the personal data of EU residents, whether or not based in an EU country or that has an EU presence. Exhibition organizers should understand their exposure, get assistance in areas of information technology, internet security and/or legal and incorporate consents and legal verbiage into vendor, membership and registration contracts and forms.


435


MUSIC LICENSING

American Society of Composers, Authors and Publishers (ASCAP)To ensure that all music played in its space is authorized, businesses must obtain licenses from all Performing Rights Organizations (PROs). Currently there are three PROs – the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC. ASCAP and BMI control the rights to most musical pieces. These PROs collect license fees on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. PROs have reciprocal agreements with foreign societies representing virtually every country that has laws protecting copyright. Note that these PROs have special license agreements for operators of meetings, events and trade shows which provide for blanket license fees based on the number of events and number of attendees.

ACCESSIBLE MEETINGS

In the U.S. the Americans with Disabilities Act (ADA) requires that all public meetings must take place in locations that are accessible to persons with disabilities. All parts of the building do not need to be accessible but the parking (if provided), the path of travel into and through the facility, the meeting area, and the restrooms must be. If overnight stays are involved, conveniently located accessible accommodations should also be a consideration. It is important to understand the disability laws in the countries in which exhibitions are held.

LIQUOR LAWS

Each country has its own laws related to the serving and consumption of liquor and it is important for the exhibition organizer to understand those laws when liquor will be served. In the U.S., for instance, state laws require liquor license holders to conduct training of employees and to carry significant amounts of insurance to protect against liquor liability claims. When a person drinks too much at a bar or restaurant and hurts someone else thereafter, the bar or restaurant is held to a strict liability standard making it almost automatically responsible for monetary damages arising out of such a claim.

In many instances, an organization may be held liable for social host liability. Thirty-two states in the U.S. recognize social host liability such that if a non-liquor license holder overserves someone intoxicated or serves liquor to a minor, the organization can be held liable as a result. The list of states which recognize social host liability can be found on the Mothers Against Drunk Driving website, www.madd.org. When a liquor liability claim arises, the courts and juries will enforce the law to ensure recovery for the victim(s).

Managing the risk of a liquor liability claim:

1. Liquor claims are often excluded from insurance coverage; in order to get coverage for such claims, organizations must procure an endorsement or waiver to have such claims covered


436


2. Always make sure a liquor license holder is serving alcohol. Despite the additional cost, the organization will then have the benefit of the license holder’s training and insurance. They will also be the first one on the hot seat if there is a liquor liability claim

3. Include indemnification provisions in contracts with liquor license holders. Such contract provisions will ensure that if your organization gets sued alongside the liquor license holder, your organization can look to the liquor license holder to defend the claim and pay damages at its cost as opposed to your organization bearing the cost

4. Make sure people don’t drink too much at a function. Limit bar availability, offer cash bars, rides home, etc. While ultimately these are not defenses to liability, they are a good way of ensuring people don’t drink too much

ADDRESSING LEGISLATIVE DEVEOPMENTS IN EVENT CONTRACTS

In the U.S. some states or local government are adopting laws or regulations which has the effect of discriminating against a subset of the population due to a person’s race, sex, sexual preference, gender identity or other protected class. Protected classes are people qualified for special protection by a law, (e.g., people with disabilities).

Exhibition organizers should address this issue at the beginning of the site selection process. If these types of laws are of a concern to the exhibition organizer’s company, they will have to ensure that all contracts for the event include the right for the group to cancel the contract without liability. While that may a concern for cities, it is an essential part of selecting a location and although there may not be any issues at the time of contracting, the potential exists between the time the contract is signed and the time of the exhibition.

SUMMARY

Many important considerations can be anticipated in negotiating hotel and facility contracts. A contract that benefits one party over the other is not a good contract. Exhibition organizers must be careful to fully understand all of the terms in the agreement; not understanding the implications of performance clauses has the potential to bring extraordinary financial damage to the exhibition organization. Before signing any contract that has significant implications, it is extremely important for the exhibition organizer to consult legal counsel. After signing the contract(s), details agreed to with the facilities and contractors must clearly be communicated in an exhibitor contract.

A well-written contract that is mutually fair to both parties is of critical importance to a successful exhibition. Contract law and negotiation can be very complex for exhibition organizers and the expertise of qualified counsel should not be overlooked. Numerous clauses and terms must be clearly stated, defined, and understood to have a final contract that both parties sign in good faith and with confidence the contact is sound and will be useful as the exhibition evolves.


437


KEY WORDS

American Plan

acceptance

attendee guarantee

attrition

breach of contract

cash-and-carry food service

commissions and rebates

complimentary rooms allotment

concession

consideration

continental plan

contract

contracting parties

copyright infringement

counter offer

cut-off dates

dispute resolution

double/double

European Plan

European Union’s General Data Protection Regulations (GDPR)

exclusive services

exhibition hall rental: included and excluded services

exits

force majeure

free-standing displays

full American plan

function space

hold harmless

indemnification

license fees

limitation of liability

master account

modified American plan

move-in/move-out costs

non-assignment

offer

periodic review and modification of terms and conditions

permits

prevailing party attorney’s fees

protected class

published rates

quiet enjoyment

rack rates

relocation/walking of guests

removal of persons

rental fees

revenue guarantee

right of access

room block attrition

rules and regulations

run-of-the-house guestroom rates

service fees, resort fees, surcharges, and cost increases

set-up and tear-down time

set-up charge

signs and displays

single occupancy

single/double occupancy

social host liability

special limitations

strict liability

subject matter or goods and services

substitution of names

union jurisdiction


438


DISCUSSION QUESTIONS1. Discuss the impact a hotel or facility contract can have on the bottom line of

an exhibition.

2. Identify strategies that can be employed to ensure a clear understanding between contracting parties.

3. The hotel meeting-space contract and exhibition-space contract will differ in several ways. What are those differences?

4. What are room block attrition clauses and how might the exhibition organizer avoid room block attrition charges?


439

CHAPTER

29

“We took risks. We knew we took them. Things have come out against us. We have no cause for complaint.” – Robert Frost

EXHIBITION INSURANCE

Jack ButtinePresident

Buttine Insurance

LEARNER OUTCOMES


1. Explain the principles of risk management as related to insurance coverage

2. Understand the types of event and exhibition insurance

3. Explain the concept of event cancellation insurance

4. Generalize the importance of requiring certificates of insurance from exhibitors

5. Explore the concept of protecting the exhibition organizer against losses


440

CHAPTER 29 Exhibition Insurance

INTRODUCTION

Careful preemptive planning may protect the assets of the exhibition host and help to reduce future insurance costs. Managing the risks of unforeseen circumstances is an important consideration for exhibition organizers. For instance, a not-for-profit association that hosts an annual meeting and exhibition, which is the source of over 50 percent of the annual revenue for the association, is unable to hold its meeting due to a fire or water leak in the facility or a natural disaster. Insuring against those risks provides a level of comfort to the exhibition organizer who may need to, for example, refund exhibitor space fees, sponsorship fees, and/or attendee registration fees.

PRINCIPLES OF RISK MANAGEMENT

Four principles of risk management, as illustrated in fig. 29.1., assist exhibition organizers in controlling the risks their organization may face and the cost of operating the event.

AVOIDANCE REDUCTION TRANSFER RETENTION

FOUR PRINCIPLES OF RISK MANAGEMENT

Figure 29.1. Principles of Risk

Risk AvoidanceActivities that present a greater than acceptable chance of causing an injury or loss to property should be avoided when possible. The balance of risk versus reward is important in weighing whether a risk is acceptable or not. An example is allowing an exhibitor to have the company mascot – a tiger – in their booth. The “best outcome” is no attack occurs by the animal and the exhibitor would have an attractive draw to the booth. However, if an attack occurs, the cost in loss of life or serious injury, reputation, and money, are examples of great significance. The risk is unacceptable, so permission to have the live mascot present at the exhibition would be refused and risk avoidance would be utilized as a risk management tactic.

Risk ReductionSome situations, while presenting an above-average chance of causing a loss, can be handled in a way that reduces risk by applying controls and slight changes to the plan. Such measures, called risk reduction, may preserve the creative concept while presenting an acceptable level of risk. For instance, for a cocktail reception on the exhibition floor, the length of time and number of cocktails served should be limited. This action reduces the risk that an attendee or exhibitor will get into a vehicle and injure someone. This also reduces the liability the organization could face as the provider of the alcohol.

Risk TransferRisk transfer is one of the most common risk management techniques. Risks


on U.S. currency


441

Exhibition Insurance CHAPTER 29

are transferred from the exhibition organizer to others in a number of ways. The most common is the transfer of risk to insurance companies by the purchase of insurance. Risks are also commonly transferred to vendors or suppliers through the use of indemnity agreements and additional insured status. A common risk transfer occurs when a contractor’s insurance company grants additional insured status to the exhibition organizer and proves it by issuing a certificate of insurance. To transfer risk properly, the exhibition organizer would require additional insured status through the contractor, and the exhibition organizer would receive a certificate of insurance from the contractor’s insurance provider.

Risk RetentionSome risks will exist for which an organizer will be solely responsible. Such risks are retained through three common situations: the use of insurance policy deductibles, when no insurance is purchased, or when the risk is not transferred to another company or person by contract. This may occur when the worst-case estimate is acceptable. Common risk retention examples are not insuring office supplies that are mailed to an exhibition site, or having a staff member serve a small amount of alcohol to the board of directors at a reception.

TYPES OF INSURANCE COVERAGE

In order to protect employers’ and clients’ assets in an increasingly litigious environment, exhibition organizers must understand what types of insurance are available, which types should be purchased and when, and how to control insurance costs. For example, exhibition organizers typically buy commercial general liability, exhibitor liability, property, and crime insurance. Exhibition organizers also buy a special form of business income insurance known as event cancellation insurance. Equally as important is the need to work with an insurance agent who specializes in exhibition/event insurance, and who can guide the exhibition organizer on the policies that would be best for the specific exhibition.

Property InsuranceBusiness Personal Property (BPP) insurance protects against the cost of property loss. The property can be owned or leased to the organizer or it can be property of others that is in an organizer’s care and control. BPP insurance policy terms should include replacement value coverage.

Replacement value coverage means that the insurer will pay to repair or to replace the lost or damaged item with similar property. Typically, a replacement value policy pays covered losses on a “new for old” basis with no deduction for depreciation. Common types of BPP that are brought to exhibitions/events are laptop computers, cell phones or radios, rented audiovisual equipment, and golf carts.

Most property insurance policies protect on an “all risk” basis. All risk does not mean “all risk” since policies are subject to a number of exclusions. Typical exclusions include uninsurable perils such as war, nuclear disaster, and civil uprising, or situations where coverage requires an additional charge either on the existing policy, or on a different type altogether, such as earthquake, loss of power, or water damage.


442


Deductibles are included in property policies. Common property deductible amounts are $10,000USD or less. A deductible is the part of the loss that is paid by the exhibition organizer who is the insured. After a covered loss, the insurer adjusts and pays the amount of the claim, less the deductible. Deductibles are usually applied on a per-loss basis; that is, each loss incurs a separate deductible.

When taking responsibility for the property of others, exhibition organizers should use a vendor whenever possible.

For example, when a vendor operates the overnight storage room or the coat checkroom, the vendor is responsible for any loss. The vendor provides the primary insurance because coat checking is their business.

However, if the exhibition organizer who selected this vendor is also found partially responsible for any property loss, the exhibition organizer’s insurance may pay after the coat check vendor’s insurance has paid the maximum amount under the vendor’s policy.

Commercial General Liability & Umbrella Liability InsuranceCommercial general liability (CGL) is a policy that is purchased by all exhibition organizers. CGL protects the exhibition organizer from liability claims that allege bodily injury or property damage arising from the event.

A CGL policy’s standard limit is $1,000,000USD per occurrence and $2,000,000USD annual aggregate. This policy will be required by the exhibition venue.

CGL insurance protects against the allegation that an exhibition organizer, a person, or company hired by the exhibition organizer caused another person or organization to suffer a bodily injury due to a “trip and fall” or to incur property damage because of a theft of booth equipment, samples, etc.

Two types of CGL insurance policies are available – occurrence-based and claims-made policies.

Claims-made policies cover only matters that are reported while the policy is in force. Due to this limitation, venues usually will not accept a claims-made policy.

The more widely used occurrence policy pays covered claims regardless of when the claim is reported, as long as it occurred during the period the policy was in force. As an example, if a claim occurred during a 2018 policy period when the show’s liability limits were a total of $6,000,000USD that is the most the policy will pay regardless of what the show’s insurance limits are at the time the claim is reported.

Occurrence policies are the industry standard.

Additional Insured status applies to liability policies – such as CGL and Automobile Liability (but not to Workers Compensation) policies and is commonly included on the CGL policy at little charge. An Additional Insured is a person or entity that is protected by another person or entity’s liability insurance policy. Additional insured status gives the additional insured party rights to legal defense and settlement costs for acts that are done either by the insured or by both the insured and the additional insured.

Occurrence-based

COMMERCIAL GENERAL LIABILITY

INSURANCE

Claims-made


443


An additional insured only receives coverage for its vicarious liability – not liability for the additional insured person’s sole wrongdoing. Vicarious liability is the liability imposed on the exhibition organizer because of its relationship to an alleged “wrongdoer” (i.e., a caterer, bus company, or exhibition contractor). The additional insured party is generally not covered for acts that are due to its sole negligence.

For example, the food served by the show’s caterer causes food poisoning. Since the attendees usually do not know the caterer, the sick or injured attendees will sue the venue name and show organizer. Since both are usually listed as additional insureds on the caterer’s liability insurance policies, the venue and show organizer will have their defense costs paid by the caterer’s insurance and not their own insurance.

This is an example of how important it is that the organizer be an additional insured on all show vendors’ or contractors’ policies.

At times an exhibition will be outsourced to a management company who will buy the CGL policy and extend coverage to the exhibition organizer or sponsor as an Additional Insured. However, the additionally insured entity – the show owner in this case, should always have its own insurance to cover allegations that they caused bodily injury or property damage.

Exhibition organizers should use care when drafting contracts requiring additional insured status so that their insurance will pay in excess of the amount available to that which is available as additional insured.

The requirement for an additional insured status is made in a contract or agreement. The reason is that CGL policies include contractual liability – the liability imposed on one party by another due to language in a business contract. The insurance or indemnification sections of venue contracts typically state that the exhibition organizer must indemnify and hold harmless the venue owners.

TYPICAL LIMITS OF THE CGL POLICYEach Occurrence $1,000,000USD

Annual Aggregate $2,000,000USD

Personal & Advertising Injury $1,000,000USD

Fire Damage Legal Liability $300,000USD

Medical Payments to Others $5,000USD

Table 29.1. Typical Limits of the Commercial General Liability Policy Table

The CGL policy also contains endorsements. Two critical endorsements include the following:

• Blanket additional insured endorsement. The blanket additional insured endorsement automatically confers additional insured status on all parties to whom exhibition organizers are required by contract to name as additional insured (e.g., exhibition sponsors and exhibition venues).

• Per-event aggregate endorsement. The per-event aggregate


444


endorsement states that each event has its own aggregate limit. CGL policies have an annual aggregate amount. The per-event aggregate endorsement amends the policy so that each event has a separate aggregate limit. This is helpful because without the per-event aggregate endorsement, a large claim in the beginning of the year could erode the exhibition organizer’s limits of insurance for later in the year. In a year where there are many claims at an event, exhibition organizers could even find that their CGL limit is exhausted before the end of the policy period.

Umbrella Liability InsuranceThe CGL limits are often supplemented by umbrella liability policies in order to provide higher liability limits. Higher limits are necessary to either meet the insurance requirements of a venue owner or to protect the assets of the exhibition organizer in the event of a large claim.

An umbrella policy is a liability insurance policy that supplements the policies underlying it. Typical underlying policies are CGL, auto liability, and the employer’s liability part of the workers compensation policy. Umbrella limits range from $1,000,000USD to $50,000,000USD and more. The two most common policy limits are $5,000,000USD per occurrence and $5,000,000USD annual aggregate, or $10,000,000USD per occurrence and $10,000,000USD annual aggregate. The minimum umbrella liability coverage an exhibition organizer should have is $5,000,000USD. This is also the minimum limit each vendor should carry.

How much liability insurance is needed beyond the minimum? No formula exists to help make this determination. However, the limits of liability must be at least equal to those required by a venue or lease agreement. Factors impacting a decision to buy higher limits include cost, size of the organizing company, the number of booths/stands in the exhibition, the estimated attendance, the nature of the exhibition, and products being displayed.

Exhibitor Liability InsuranceExhibitor liability insurance protects the exhibitor from legal costs and the disruption of having an uninsured liability claim. It also protects the organizer’s insurance costs from increasing due to having to pay for liability claims caused by exhibitors. Although many organizers do not require exhibitors to provide a Certificate of Insurance, they should do so, or require the purchase of Exhibitor Liability insurance. Examples of claims caused by exhibitors include fires due to non-approved extension cords, and trips and falls in booths/stands or aisles. If the exhibitor does not have exhibitor liability insurance, the injured party will look to the exhibition organizers insurance.


445


Figure 29.2. Face-to-Face Education (Source: Oscar & Associates)

Exhibitor’s insurance is helpful to the exhibitors who do not buy insurance and to foreign exhibitors whose insurance does not pay claims brought to U.S. courts. Exhibitors in certain types of events, such as art and antique fairs and small manufacturing exhibitions, frequently do not have insurance. International exhibitors who have insurance in their countries will find that the coverage applies worldwide, but only if the claim is brought in their home jurisdiction.

The best way for an exhibition organizer to obtain this coverage is to contract with an insurance company for a blanket policy to cover all exhibitors, or arrange for exhibitors to have access to an exhibitor liability specialist who provides liability to all interested exhibitors on a direct basis. Such a specialist can give the exhibition organizer a report prior to the exhibition/event listing all exhibitors who purchased insurance.

Cyber Liability InsuranceCyber liability insurance protects organizers against claims from exhibitors or attendees whose private data may have been exposed due to an incident such as hacking an exhibitor or attendee data base.

Since all organizers collect sensitive or confidential data, they have a duty to protect it from unauthorized use/access and need this relatively new insurance. Cyber liability insurance pays for costs such as notification of people and firms whose private data may have been exposed and monitoring their credit.

Examples of such costs include legal services, for the sending notification emails or letters to persons or firms whose information may have been exposed, and fees to monitor those persons’ or firms’ credit.

The definition of what comprises private data varies by state. However, all or part of the following is typical: names, addresses, email or other contact info, credit card info, etc.


446


Cyber liability insurance limits start at $500,000USD or $1,000,000USD and vary by size of the organizer. Policies typically include:

Data Security and Privacy Liability to pay defense and other costs for claims alleging a failure to protect the confidential information of others or to maintain an adequate level of network security

Media Liability to pay damages/settlements for claims alleging infringement of intellectual property (copyright and trademark, not patent), libel, slander, etc.

Regulatory Fines & Penalties to defend suits brought by a regulator such as the FTC or a state attorney general due to a Data Security & Privacy claim. Coverage could also provide reimbursement for fines and penalties levied against all covered entities

Network Interruption to pay the loss of net income as a result of network downtime caused by a breach of the systems and the extra expense to restore operations

Event Management Expenses pays costs incurred due to an incident. Examples include the cost to hire a law firm to serve as the “Data Breach Coach” and advise one on what obligations are and how one needs to respond to a breach, the expense for forensics consultants, vendors to provide notification (whether required due to statute or done on a voluntary basis) to potentially affected parties, vendors to offer credit/identity monitoring to affected individuals, and public relations expense

Data Restoration Expense coverage pays expenses to restore or replace data that was damaged or corrupted during a breach

Cyber Extortion pays criminals’ demands to avoid a threatened data breach or to stop holding access to the data base ‘hostage’

Social Engineering Fraud – or Larceny by Trick, coverage pays for the theft of money due to a voluntarily transferring of funds based on electronic instructions

Crime InsuranceCrime or fidelity insurance is necessary at exhibitions where cash is collected. Crime insurance covers door receipts or other cash. The crime coverage limit should be based on the amount of cash on hand at any given time. Most exhibition organizers know the estimated daily cash collection amount, and select that amount as the crime insurance limit. This type of policy has a deductible that is the same as the property insurance deductible. Crime deductibles apply on a per-loss basis.

Transporting cash to the bank can present potential problems depending on the amount of cash. A common practice is to hire an armored guard company to pick up and transport the cash on a daily basis. As with all vendors, a certificate of insurance should be provided by the armored guard company.

The security company selected for the exhibition often carries crime insurance for the exhibition organizer’s benefit. This policy is called a third-party fidelity bond and protects exhibitors from theft of goods by the security company’s employees.


447


EVENT CANCELLATION INSURANCE

In addition to general liability insurance, exhibition organizers often purchase event cancellation insurance, which is underwritten by specialized insurers. The largest insurer for this coverage is Lloyd’s of London (Lloyd’s). Organizers can insure events regardless of where they occur. Most international events can be insured as easily as U.S. exhibitions and events.

Many exhibition organizers consider this type of insurance a form of customer service. In the event a product cannot be delivered to buyers or attendees on the exhibition floor, customers will expect a refund of their fees, which will be covered by event cancellation insurance.

Event cancellation insurance is a special type of business interruption coverage that is unique to the exhibitions and events industry. It protects the exhibition organizer’s financial investment by allowing exhibition organizers to keep their anticipated profits, pay all expenses incurred up to the time of the loss, and return fees to sponsors, exhibitors or attendees, as well as the costs of education programs.

Sponsorship and education fees are an increasingly large part of an exhibition/event’s income.

Both can be insured by a cancellation policy – a contingent loss adjuster handles the losses. The actual loss calculation is determined by whether an exhibition/event was totally or partially cancelled.

The difference between the contingent loss adjuster and the property claim adjuster is that the contingent adjuster determines an exhibition’s financial loss due to an event that may not have occurred or did not run to its planned length. The process is largely an accounting investigation and based on the adjuster’s experience and industry knowledge.

In comparison, a property loss adjuster quantifies a loss based on the replacement cost of a burned building, a stolen laptop, or a similar tangible item.

A partial loss is often adjusted by various factors that determine the amount of the final claim, such as the following:

• The relative drop in attendance compared to years’ past

• How many days or hours the exhibition was open compared to the number planned

• How much of the sponsorship benefit was received up to the time of the loss, and

• How much of the education session(s) was (were) completed

Cancellation insurance covers a number of perils including cancellation, postponement, abandonment, interruption, failure to move out on time, or a reduction in attendance.

Other perils such as cancellation or interruption due to a terrorist act, a failure of a speaker to attend, the death of a current U.S. president, or foreign head of state can also be covered. However, this type of coverage may result in additional charges.


448


The policy is a form of “all risk” insurance, with the extent of coverage defined by its exclusions.

Common exclusions include loss due to:

• Circumstances that existed prior to the purchase of the policy, or management’s failure to make adequate preparations

• Teleconferencing or non-appearance of a key speaker, unless specially added to the policy

• Adverse weather in outdoor events or events held in temporary structures, unless added to the policy

• Construction, renovation, or expansion of the venue that was known at the time of application

• Reduction in attendance that is not due to any event-related issue, such as a poor business environment or lack of buyer interest

• Criminal activity on the part of the exhibition organizer

• Pollution, nuclear, chemical, or biological disasters; or

• Terrorism. Most policies provide a base limit and terrorism coverage that is restricted to events that occur at the venue or within a certain number of days or miles of the venue. And, there are usually options to “buy back” this exclusion

Often, insurance companies will add exclusions to insurance policies based on changes in laws or conditions that can affect the coverage that they offer: for example, severe acute respiratory syndrome (SARS) or influenza outbreak. What insurers cannot understand or quantify, they will either charge extra for or exclude from coverage.

When to Purchase Event Cancellation InsuranceAlthough insurance is often purchased on an annual basis, cancellation insurance policies should be secured as soon as an exhibition organizer has a financial interest in an exhibition/event. Simply stated, once the exhibition organizer signs a lease or begins to sell space for an exhibition/event, cancellation insurance should be purchased to protect the financial interests of the host organization.

Consider an exhibition organizer who operates one event per year. As soon as the lease is signed, coverage should be secured; as soon as the event concludes and next year’s event is planned, coverage should be renewed.

The cost is the same regardless of when coverage is purchased. The earlier insurance is purchased, the longer the exhibition organizer will be covered. When an exhibition organizer is in charge of many events, the same principles apply. The idea is to keep exhibitions/events covered, all the time. In order to do so, the exhibition/event organizer may need to renew coverage either quarterly, or at whatever interval is necessary in order to maintain insurance for all the exhibitions/events.

It is also good practice to secure coverage for several years of show revenue. Benefits of this are that one locks in insurance costs – currently at historic lows and protect profits for many years.

Note the name of a responding

police department or ambulance

IMPORTANT INFORMATION

TO COLLECT FOR LIABILITY CLAIMS

Obtain statements, names, and

telephone numbers from any injured

parties or witnesses

Include facts in statements: who, what, when and

where. No opinions or extra information

is warranted


449


Premium RatesRates for cancellation insurance are based on several factors. There is a base insurance rate to which insurers add charges based on where and when the exhibition/event occurs. For example, exhibitions/events that are in areas prone to earthquakes, hurricanes, or inclement weather incur additional charges.

How to Purchase Cancellation InsuranceEvent cancellation insurance is a specialty type of coverage. Group purchase of any form of insurance is always an advantage for the buyer. Several buying programs are available from established insurance brokers and agents, which are often sponsored by either the International Association for Exhibitions and Events (IAEE) or American Society of Association Executives (ASAE). Insurers primarily underwrite this type of insurance with Lloyd’s and a few other worldwide insurers.

The exhibition organizer’s relationship with a cancellation insurance broker, and the broker’s experience in settling claims, are both important. If the broker does not understand the coverage or the exhibition industry, problems are more likely to result when a claim occurs.

To learn who the brokers are, the exhibition organizer should call trade associations, consult colleagues, and look for ads on the Internet or in the trade press.

CERTIFICATES OF INSURANCE

As mentioned, liability insurance protects the exhibition organizer from claims brought against them for injuries caused to others.

Very few things an exhibition organizer does are likely to cause a claim. However, vendors and other partners can cause many types of claims at an exhibition/event for which the exhibition organizer can be sued. That is why evidence of CGL Auto Liability and other insurance must be required from all vendors (see table 29.2.).

TYPICAL INSURANCE POLICIESCommercial General Liability

Aggregate Limit $1,000,000USD

Products/Completed Operations $1,000,000USD

Advertising/Personal Injury $1,000,000USD

Each Occurrence $1,000,000USD

Fire Damage $50,000USD

Medical Payments $5,000USD

Automobile Liability (covers all owned, non-owned, and hired vehicles)

Limit of Liability $1,000,000USD

Umbrella Liability $5,000,000USD

Workers Compensation/Employers Liability (in amounts required by local statute)

Errors & Omissions (If agreed to in advance) $1,000,000USD

Table 29.2. Typical Insurance Policies


450


Certificates of insurance should be kept on file for at least five years. Exhibition organizers should have a system to gather and maintain a file containing all vendor certificates. In the event of a claim, having documentation – including contracts with vendors, readily available will be valuable to the organizer and its insurer.

INSURANCE CLAIM REPORTING

The basic rule is to report claims as promptly as possible. Late notice impedes the insurance company’s ability to react, and may cause a claim to be denied.

To aid in claim reporting, the exhibition organizer should bring the following items to the exhibition site:

• Liability claim reporting forms (policy number and name of insurance company on each form)

• Name and 24/7 telephone number of insurance broker

• Insurance company’s “800” claim-reporting hotline telephone number

As mentioned, property losses occur when property is stolen, lost, or damaged. When the matter is reported to an insurer or broker, the exhibition organizer should be ready to provide the following:

• Date and time of the loss

• Cause/location of loss

• Full description/value of the property involved

• Name of person most knowledgeable of the loss

After a property loss, the exhibition organizer must safeguard the property from further damage, if possible.

An inventory of the damaged items should be prepared. Before discarding anything, the exhibition organizer should attempt to obtain the insurance company’s approval, or take photos of the goods prior to discarding. Staff should save copies of local newspapers, if pertinent information has been published that could have an impact on the claim. This is especially valuable for weather-related event cancellation claims.

Liability claims at an exhibition or special event can present a unique claim-handling situation for the insurer. If a large number of exhibitors or attendees are involved, the insurance company has to react quickly and send representatives to gather information and statements. Otherwise, when the exhibition is over and everyone departs, the information will be much harder to obtain.

Event cancellation claims require special handling by all exhibition personnel. At the first hint of a pending problem involving the venue, or anything else affecting the exhibition/event, the incident should be reported to the insurer or broker immediately. Time is always of the essence.

Experience shows that exhibitors and attendees have the same concerns as exhibition organizers, and they want to know the status of the event. If possible,


451


the exhibition organizer should acquire the mobile phone numbers and locations of as many of the event’s exhibitors and attendees as possible, and know how to contact all the exhibition staff.

For example, when a snowstorm or other major weather-related event is forecasted during an event, exhibition organizers may use this contact information to inform exhibitors and attendees of changes in exhibition hours or other pertinent details.

PROTECTING AGAINST LOSSES

Exhibition organizers, contractors, or the facility cannot provide blanket insurance coverage on all possible claims and losses; therefore, the organizer must clearly communicate to exhibitors that they are responsible for their own equipment and personnel. Organizers should inform exhibitors that the exhibition does not carry insurance for their benefit.

No insurance company will reimburse a claim – from an exhibitor or anyone else – if it is not properly and completely documented.

Exhibitors who experience losses, either through theft or damage to property at the exhibition, should be directed to contact the exhibition organizer or another designated staff person immediately.

As soon as possible following this notice, an investigation by a security representative should be initiated. A written report to accompany the claim to the insurance company should be generated at that time, which will serve as important documentation in the event that the missing equipment is not ultimately located.

SUMMARY

Insurance for the exhibition organizer is one facet of risk management that requires careful and detailed attention to avoid costly liability exposure. The various types of insurance coverage and documents required of exhibitors ensure all parties are covered. The importance of having certificates of insurance on file prior to the opening of an exhibition, as well as adequate protection against losses, cannot be overstated.


452


KEY WORDS

additional insured status

all risk basis

annual aggregate

blanket additional insured endorsement

business personal property (BPP)

certificate of insurance

claims-made policy

commercial general liability (CGL)

contingent loss adjuster

contractual liability

crime insurance

deductible

event cancellation insurance

fidelity insurance

hold harmless

indemnify

insured

occurrence-based policy

per-event aggregate endorsement

per-loss basis

property claim adjuster

replacement value

risk avoidance

risk management

risk reduction

risk retention

risk transfer

third-party fidelity bond

umbrella liability policy

vicarious liability

workers compensation policy

DISCUSSION QUESTIONS1. Explain and discuss examples of the various types of insurance coverage.

2. Discuss common reasons for cancelling an event.

3. Discuss actions that can be taken to protect the exhibition organizer and exhibitors against losses.

4. What is the difference between per-loss, per-occurrence, and claims-made provisions in an insurance policy?

5. What is cyber liability insurance and why do we need it. What things does such insurance pay for?

6. What steps might an exhibition organizer take to reduce the costs associated with risk transfer?


453

CHAPTER

30

“Plans are nothing; planning is everything.” – Dwight D. Eisenhower, qtd. in Crainer 243

EXHIBITION SECURITY, RISK AND CRISIS MANAGEMENT

Mark HerreraDirector of Education

International Association of Venue Managers (IAVM)

Wes Scott, PhDManager, Consulting Services

National Safety Council

LEARNER OUTCOMES


1. Define what a crisis is and how to prepare for a variety of crises

2. Develop the basics of a crisis management plan

3. Identify terroristic threats

4. Identify evaluation procedures for a crisis management plan


454

CHAPTER 30 Exhibition Security, Risk and Crisis Management

INTRODUCTION

The organizer has leased space in a facility, may have contracted for hotel rooms and official and specialty contractors have been contracted to service an event. An important element not to be overlooked is crisis and emergency planning. Although planning cannot prevent all crisis, organizers play an important and integral role in the emergency planning process to mitigate risk. The current threat environment must be identified. This chapter explores the planning for a single element within the overall risk management portfolio, which is on-site crisis or emergency planning management, a single element most often ignored or neglected by exhibition organizers. The process used can determine the outcome for those affected, including attendees, the exhibition organizer, and the community.

DEFINING A CRISIS

A crisis is a decisive moment in time when danger or great difficulty occurs and includes a turning point or critical situation resulting in good or bad consequences. Viewed from an on-site perspective of an exhibition, a crisis may be defined as an unplanned event that can cause deaths or significant injuries to attendees, exhibitors, labor, or employees, and could cause physical or environmental damage that may shut down or totally disrupt an exhibition or event and threaten its financial success.

Minimizing risk by application of sound risk management tools and security systems is an important component of an overall plan.

DEVELOPING A CRISIS MANAGEMENT TEAM

Figure 30.1. Crisis Management Team

Crisis preparation requires participation from many people within an organization. At a minimum, top management, public relations, operations, technical


455

Exhibition Security, Risk and Crisis Management CHAPTER 30

support, and human resources need to be part of the planning and the crisis management team. Employees in the field and on-site are usually the first responders in a crisis. Designate a staff person to analyze the exhibition site and the surrounding area to determine the location of potential problems and identify areas that may mitigate or eliminate the risk. Once a team has been organized and procedures developed for the role and responsibilities of each team member, the team will organize exercises, drills, and/or tests for the purpose of evaluation and reassessment of the procedures (see fig. 30.1.).

The exhibition organizer needs to continually review and reassess existing crisis management measures and identify new areas of concern. Possible members of the crisis management team include:

• Top Management. Top management assesses the information provided by other members of the team and makes the decision on whether to move forward with the exhibition, delay the exhibition, or move the exhibition to another venue

• Finance. Staff from the finance department provides top management with information on the financial ramifications for the different scenarios provided to top management

• Legal Counsel. Consulting legal counsel is necessary for top management to fully understand contractual obligations and the ramifications of decision options and overall impact on the exhibition and the organization

• Insurance Consultant. Engaging the insurance provider at the outset of a potential or immediate crisis is imperative to provide details on the liabilities of a decision and the best option to mitigate losses

• Media Relations. The public relations and marketing staff contribute to the internal and external communication plan. This guides all involved parties to determine when, how, and who is authorized to make announcements to exhibitors and attendees and carefully consider these individuals may already be traveling to the site or already on-site. Specific individuals authorized to speak to the media need to be determined and notified in advance to be prepared with essential details and other information the organization desires to present to the media

• Facility Representative. A representative from the destination, venue, and/or facility is an essential member of the team. The availability of information from local authorities and agencies would be most helpful

• Official Service Contractor and Specialty Contractors. Include the contractors on the team who will have knowledge of valuable property that needs to be secured

• Security Consultant/Contractor. The security consultant or contractor provides information on the control of theft during move-in, during the exhibition, and move-out should the facility require evacuation

• Information Technology. The technical support group as well as all on-site staff can address support of the technology used at the exhibition and on-site backup information


456


• Event Management. Any contractor for the exhibition should be informed of the plan and decisions made that could impact the contractor and/or the contractor’s services

• Human Resources. Human resources staff will be concerned about the safety and security of staff during an exhibition. For example, the human resources representative generally would be in contact with family members in the event a staff person is injured or experiencing a life-threatening situation

ON-SITE CRISIS SITUATIONS

Crises evolve from a variety of situations with each one unfolding in unique ways. Generally, on-site crisis situations fall into two broad categories: health and safety or policy and situational circumstances. Additionally, crises can stem from natural phenomena or man-made situations.

Health and SafetyThe health and safety category is by far the larger of the two. Within this category, there are several representative examples:

• Medical Emergencies – accidental injuries, heart ailments, stroke, or other life-threatening illnesses

• Fire – panic and smoke are often the ultimate cause of fire deaths, rather than the fire itself

• Natural Disasters and Weather-Related Occurrences – tornadoes, blizzards, hurricanes and earthquakes

• Criminal Activities – such as robbery of attendees and/or box offices, vandalism, or assault and weapons offenses

• Civil Unrest – requires special consideration, especially in the international arena. Politics and/or government interference may play a prominent role in expositions throughout the world

• Terrorism – will be further discussed in this chapter

Policy and Situational CircumstancesPolicy and situational circumstances each possess unique vulnerabilities to an exhibition or event:

• Demands for compensation and/or retribution by attendees and/or exhibitors

• Contractual issues with exhibitors, contractors, and/or sub-contractors

• Labor issues and/or disputes such as strikes, work rule campaigns, or union jurisdiction disputes

• Cancellation by a major speaker or entertainment act

• Discrimination

Predicting what might initiate or activate a given disastrous event is impossible. Therefore, the key becomes good planning for predictable outcomes and best responses appropriate to unexpected situations.

People

PRIORITY OF PROTECTION

Exhibition

Assets


457


Natural DisastersNatural disasters present serious risks for property and bodily injuries at destinations hosting exhibitions.

For example, northern Europe and northern North America are prone to blizzards and winter storms. Some regions of the globe are prone to earthquakes and potential tsunamis. Many exhibition halls in the Midwest states of the U.S. have tornado shelter areas for evacuation and these provide safety for attendees, as well as special alerts (sirens), which are utilized in the event of a spotted and verified tornado.

Because of their intensity and the possibility of widespread damage, earthquake emergencies need to be considered and planned for in any area where there is a risk of seismic activity. If an exhibition is being hosted in a city where earthquakes are likely to occur, the exhibition organizer could contact the Office of Public Safety or the Office of Emergency Services for specific information regarding earthquake preparedness and local disaster plans. Most facilities in earthquake-prone zones have stringent construction codes which must be met by exhibitors during the construction and installation of their displays. Floor plans must be developed with aisle and exit areas which comply with local earthquake-related codes.

During the site review and inspection process, exhibition organizers should be thoroughly briefed on all types of alerts and integrate plans appropriate to a specific destination or venue vulnerabilities. For example, in the U.S., the National Oceanic and Atmospheric Administration (www.noaa.gov) is a valuable resource in the event of weather emergencies, such as tropical storms, which may develop and proceed toward land or earthquakes that may result in a tsunami.

The primary facility representative can identify agencies in the region for an assessment of potential threats. For example, in the U.S., additional information is available from service organizations such as the American Red Cross, Federal Emergency Management Agency (FEMA), and the U.S. Geological Survey.

Food Poisoning. Food poisoning is perhaps the most common man-made disaster that may occur wherever there is a gathering of a large number of people. While food poisoning is the result of improper or potentially harmful preparations by the food and beverage contractor, the result demands immediate action by the exhibition organizer. A specific contingency plan in place is imperative for this type of incident. The facility will have developed a plan, in consultation with local health officials, to ensure that local health and safety requirements are met. In addition, the exhibition organizer should review, with facility officials, a parallel and complementary plan. Control, communication, and reporting are critical functions to be considered for this type of situation.

One of the first lines of defense against food poisoning is a thorough inspection of the kitchen, either at the facility or at the off-site caterer’s place of business, if applicable. The exhibition organizer should ask local health and sanitation officials about the inspection records of the food and beverage service contractor and thoroughly check references during the initial site inspection as well as on subsequent visits for the exhibition planned years in advance.

Hurricane/typhoon

EXAMPLES OF NATURAL DISASTERS

Earthquake

Flood

Tornado

Winter snow storms

Hailstorm

Landslide

Avalanche

Wildfire

Volcanic eruption

Drought

Wind/sand storm

Tsunami

Communicable disease


458


Fire. Fire is probably the next most common man-made disaster (usually) that may result from numerous occurrences, such as inadequate wiring, exhibit-related activities within a booth/stand, or as the extension of a natural occurrence (such as lightning). Public facilities located within the U.S. must adhere to a set of regulations and codes regarding fire safety. Additionally, the exhibition organizer is bound to follow governmental fire codes. The exhibitor service manual (ESM) should identify fire safety requirements, and every attendee should be provided fire safety information as related to the exhibition venue, which can be incorporated into registration materials.

Demonstrations. Demonstrations are organized public displays of opinion against a perceived purpose of an exhibition, offending policy or specific person. Demonstrators are usually very vocal, carry signs and banners, and frequently hand out literature in support of the cause. Demonstrations are legal in some jurisdictions, provided the demonstrators do not interfere with the normal business of the event and a permit has been obtained. The permit may restrict the proximity of the demonstrators in relationship to the venue. For example, a controversial speaker or other prominent guest who has been embroiled in a recent controversy may precipitate an on-site demonstration. Additional security for the exhibition is necessary to ensure that no harm comes to the guests or any of the attendees or exhibitors.

Confrontation. A confrontation is a one-on-one interaction that is intended to disrupt the normal business of an exhibition or event and often is precipitated from a demonstration. A proactive plan can help to minimize the impact on the exhibition or event and assist in preventing or controlling situations. If advance information is available about a potential demonstration with possible confrontations, it is advisable to hire a security expert specifically trained to handle these types of situations and include the consultant expert as part of the crisis management planning team. Additional security staff may be necessary to ensure that exhibitors, guests, and attendees are adequately protected and involve local law enforcement agencies when developing the plan.

Other On-site Crisis SituationsOther types of crises may have an impact on an exhibition including accidental and technological disasters that can cause a major disruption of an exhibition. Examples to consider in developing a crisis management plan include:

• Cyber outages

• Computer system crashes

• Inability to transmit electronic information, e.g., television or satellite transmission

• Hazardous material accident, e.g., both stationary or from transportation sources

• Building collapse

• Infrastructure failure, e.g., communication capability, sewer, water, or power


459


• Transportation disruptions

• Unexpected illness or death of a participant or key organization/staff person

Acts of Violence and ThreatsActs of violence can range from pick pocketing, assault, and harassment, to rioting or bomb threats, to overt terrorist acts, and can unexpectedly occur anywhere around the globe. A review of previous crime patterns and an awareness of the crime rate in and around the exhibition venue is essential data to gather in developing a crisis management plan. Checking with local police and other law enforcement organizations assist in making a decision of the vulnerability of the venue. The security needs of the exhibition should be reviewed for all exhibition hours and off-site programmed activities.

The modern-day threat environment is comprised of homegrown violent extremists (HVEs), lone wolf actors, emotionally disturbed persons, criminal actors, and the persistent problem of workplace violence. Regardless of their orientation, ideology, or motivation, these actors target public assembly venues in similar ways, conducting simple, low-grade attacks on large crowds in order to exploit the resulting media coverage.

An examination of 90 significant terrorist attacks since 11 September 2001, reveals that the preferred modes of attack have involved guns and explosives. From 2013 to the present, there has been an increased use of low-tech, soft-target attacks, such as assaults with vehicles and assaults with knives. These types of attacks are associated with low-capability individuals and directly attributable to the urgings of jihadist publications of Al-Qaeda, ISIS, and similar terrorist organizations.

Soft targets have high asset attractiveness predominately due to typical ease of access coupled with high crowd concentrations, making mass casualty scenarios within the reach of any adversary regardless of skill sets or support networks.

Some other common vulnerabilities associated with attacks on soft targets include public access, high concentrations of people (mass casualty), open and uncontrolled space, high-speed avenues of approach, multiple egress and entry points, underground parking, light rail, limited standoff distance or setback, minimal security screening, significant economic and psychological effect, and media coverage.

In 2016, the International Association of Venue Managers (IAVM), the International Association of Exhibitions and Events (IAEE), and the Exhibition Services and Contractors Association (ESCA) came together to form EMSSI which stands for Exhibitions and Meetings Safety and Security Initiative, with the goal of addressing a top priority of their associations’ membership, namely the safety and security of the attendees, members, stakeholders, employees, and members of the public who attend meetings, conferences, conventions, and exhibitions around the world. Given the current transnational threat environment and the growth in homegrown violent extremism (HVE), there was a clear need


460


to establish guidelines for convention centers and related venues around the United States. These guidelines contain suggestions for security considerations based on an informal survey of best practices. The direct applicability of these guidelines and their suggestions may vary from venue to venue based on threat environment, risk, site layout, event type, and cost/benefit analyses.

The authors intend these security considerations for guidance purposes only. No regulation or legislation mandates them.

The Response Planning Best Practices are applicable to organizers and event planners and should be a part of the Emergency Action Plans when organizing an event. Guidelines were developed through the International Association of Venue Managers (IAVM) supporting security considerations of core security and preparedness focal areas:

• Risk Assessment

• Physical Security

• Access Control

• Patron Screening and Credentialing

• Pre-Employment Screening and Credentialing

Protective MeasuresProtective measures are part of a Physical Protection System (PPS). A PPS is the integration of people, procedures, and equipment for the protection of assets or facilities against theft, sabotage, or other attacks. Planners design protective measures to deter, detect, delay, deny, and/or respond to a security incident.

Security MeasuresSince a risk assessment is the basis upon which experts implement all other security measures, stakeholders should safeguard the results from public view while sharing them with the decision-makers responsible for their implementation to include event planners and organizers.

Applicable Threat Scenarios to Consider When Planning or Organizing an EventWhen performing a risk assessment, a facility should consider informed attack scenarios and reasonable hazards. “Standard” attack scenarios could include:

• Active shooter (single or multiple)

• Vehicle as a weapon

• Vehicle-borne improvised explosive device (VBIED) on the perimeter of the facility

• IED (Improvised Explosive Device) within the facility

• Firebombing/arson; gas/chemical/radiation device

• Loss of power

• Biological pathogen

• Large-scale civil disturbance (external or internal)

• A situation in which the venue becomes a public disaster evacuation center


461


Exhibition organizers should consider the potential for an insider to act as a perpetrator or facilitator.

Convention centers are typically massive and open public forums that host indoor and outdoor events. A challenge to traditional access control is the co-location of hotels and entertainment (such as bars, restaurants and nightclubs) within the main convention center.

Such features as light rail stations, underground parking, and limited standoff distances pose other challenges. The main security issues faced by convention centers are thus two-fold. First, the patrons of convention centers – unlike stadium patrons, who are seated, complete an activity, and leave are typically free to come and go as they please. Second, whereas stadiums and arenas host one type of event at a time, such as a game or concert, convention centers may host multiple shows, exhibits, meetings, workshops, seminars, conferences, banquets, fairs, or expos all at the same time within the same footprint.

This complicates security planning, especially when events differ in terms of the security risk involved.

SECURITY CONSIDERATION: PHYSICAL SECURITY

In managing the convention center perimeter, the objective is to exclude unauthorized people and maintain a state of constant situational awareness. The ability to monitor, assess, and secure what is within the convention center and its footprint is paramount in any security scheme. An integrated security system may be required consisting of barriers, sensors, access control, explosive detection canines, CCTV, and a guard force that deters, detects, or mitigates the effects of an attack. These are tools that event planners and organizers can inquire about to ensure effective security measures are in place.

Successful implementation of physical security reduces the likelihood of unauthorized persons accessing the convention center for malicious purposes. As mentioned, the fact that convention centers are open to the public complicates perimeter controls.

Security Measures and Considerations for Physical Security ManagementSecurity Measures: Effective measures for managing a convention center typically involve some combination of perimeter barriers, access control, CCTV, intrusion detection systems or other types of monitoring, security lighting, and patrol/protective forces.

Perimeter Barriers: These barriers physically and/or psychologically prevent or delay unauthorized entry. Examples that could be implemented include the following:

• Barriers to humans (e.g., fences and gates)

• Vehicle barriers (e.g., jersey barriers, berms, bollards, planters)

• Natural or landscaping barriers (e.g., hedgerows, rocks, trees, water)

• Walls (e.g., brick, cinder block, poured concrete)


462


Barriers can be used in a variety of ways to restrict access to an area and to increase the overall security of a convention center, including the following:

• Controlling vehicular and pedestrian access

• Providing channeling to convention center entry-control points

• Delaying forced entry

• Protecting critical exterior assets

• Limiting the effects of a weapon

Security ForceA security force of trained, licensed, and insured professionals led by an experienced and trained security director is recommended for all convention centers during event hours (at a minimum), regardless of size and location. This force should comply with all applicable state and local hiring and certifying agency directives and laws. Meeting planners and organizers to include exhibition organizers should inquire and request for a trained security force.

SECURITY CONSIDERATION: ACCESS CONTROL SYSTEMS

The purpose of an access control system is to establish positive control over who is on the premises of a facility. Access control is especially challenging in the convention center industry because of the size of the facilities and the need to balance security and access. Thus, sometimes users see security measures as a hindrance to the hospitality and service model. Moreover, convention centers do not typically manage access to the convention center in general, preferring instead to manage access to specific events. This goal has traditionally been accomplished through a registration/credentialing process carried out by clients rather than convention center staff.

SECURITY CONSIDERATION: PATRON SCREENING AND CREDENTIALING

Ensure that only authorized items and persons enter the premises and that all potentially destructive items will be detected at ingress points. Knowing and controlling who and what enters the premises is fundamental to a physical protection system (PPS). The level of patron and cargo screening required depends on the venue, type of event, and the overall threat environment at the time.

CredentialingCredentialing involves a visual identifier and forms part of an access control program for individuals seeking access to a convention center. Unlike a ticket, which is more generic, a credential specifies that a person is authorized to be in a specific place for a particular reason. There are two main types of credentials, namely those used by attendees, and those used by staff, employees and contract personnel.


463


Patron ScreeningIt is recommended that organizers and exhibition specialists inquire and recommend patron screening for various event types. Patron screening procedures serve to prevent prohibited items from being brought into a facility and should be a part of a convention center’s overall security plan. The plan’s procedures should be tested and evaluated and should conform to any federal, state, and local public jurisdiction access requirements.

Security Considerations for Personnel/Background ChecksAn “adjudicative” process is an examination by an event organizer, contractor, or convention center of data collected during the types of background checks with the aim to make an affirmative determination regarding whether an individual is suitable for employment.

SECURITY CONSIDERATION: DEVELOPING A CRISIS MANAGEMENT PLAN

A working and realistic crisis management plan is essential upon the completion of an assessment of potential emergency situations. The purpose of a crisis management plan provides the exhibition organizer and its staff with information and guidance in making quality decisions during a stressful time. Failure to responsibly respond to a crisis situation often results in broad-reaching ramifications.

A crisis management plan is based on a series of decisions aimed at avoiding or minimizing injury to people, the exhibition, and valuable assets. An effective plan, at a minimum, should include:

• A procedure assessing the severity of the situation

• A firm link with the emergency procedures of the facility and who ultimately has responsibility to address the situation and implement the appropriate aspects of the plan

• A designated chain of command within the organization including executive management, including elected officials, financial, legal, and insurance advisors as appropriate

• A call tree with essential contact information must be current and ready for individuals in authority prepared to delegate responsibilities at the appropriate time

• A defined set of parameters for issuing statements to local authorities, attendees, participants, exhibitors, and the media

At every point in preparing a crisis management plan, the priority of protection should be in the following sequence: people, the exhibition and assets. Every organization faces a unique combination of potential crisis situations; therefore, planning should be tailored to the specific organization. Additionally, the plan should be sufficiently comprehensive to ensure that all possibilities are, at the very least, acknowledged and addressed in writing.


464


Principles of Crisis Management PlanA comprehensive crisis management plan, as presented in fig. 30.2., is grounded in the four basic principles.

COMPREHENSIVE CRISIS MANAGEMENT PLAN

PREPAREDNESS MITIGATION RESPONSE REPORTING

Figure 30.2. Basic Principles of a Comprehensive Crisis Management Plan

PreparednessPreparedness is based on the theory of planned avoidance. In other words, the exhibition organizer must do everything possible during the planning and execution of an exhibition/event to reduce the risk occurrence. Preparedness can minimize, transfer, or simply absorb the occurrence because to employ any other strategy may be too costly.

MitigationMitigation usually refers to a series of rules, regulations, or guidelines that are in place and enforced to limit the possibility of a situation developing and should a situation occur, minimize the damage. It also includes awareness of the smallest detail so that if something out of the ordinary occurs, the outcome has a desired minimal effect on the exhibition/event.

ResponseThe response includes actions to be taken (or purposefully not taken) during a situation and immediately following to protect the attendees, exhibits, and assets, and to minimize any damage, (i.e., liability for property damage).

ReportingReporting is about creating a paper trail that documents the details of the crisis, and efficient and timely reporting of the incident to the proper authorities, such as police, fire, and medical experts. Again, pre-planning and effective communications are the cornerstones of effective and accurate reporting.

Creating the PlanThe steps in creating a basic crisis management plan are as follows:

1. Identify the crisis management team, a team leader, and two or three competent assistants and involve the individuals identified at the beginning of this chapter

2. Prioritize the various emergency situations and the selected responses in the written plan. Appropriate responses should include the designated leader implementing and managing the plan, communication protocols to be followed, and reporting procedures and actions to be delegated to staff

3. Outline the internal communications plan that details the immediate dissemination of information to on-site leadership and staff, as well as external officials such as medical personnel, security, and local emergency


465


officials. The plan should include the use of alternative forms of remote communication, such as two-way radios or cell phones, along with a secondary system should the primary system be compromised as a result of the crisis

4. Create a reporting system that ensures the collection and appropriate dissemination of necessary data prior to, during, and after the crisis

5. Identify and develop responses to situations that may result from the venue’s geographic location, event timing, controversial speakers, or other potential issues

6. Conduct training, prior to the opening of the exhibition, for staff members on how to respond to an emergency situation

7. Review the adequacy of insurance coverage. Clearly understand the deciding point at which the interruption/cancellation coverage will cover a claim. Consult with the insurance company representative and legal counsel when making the decision to postpone or cancel an exhibition/event. The review process will minimize the complications of making a claim. More information can be found in Chapter 29

8. Develop and be prepared to use a readiness checklist to ensure all probable situations have been considered

In establishing a crisis management or emergency response team, convention center owners and operators, in conjunction with show organizers and contractors, should identify and discuss emergency operations plans (EOPs) to be used during a critical incident response. An effective pre-planned response to an incident, and exercising it, are critical to an effective response function. Appropriate response protocols ensure that incidents do not spiral out of control, and effective consequence management allows for the greatest possible level of life safety.

Planning Effective planning and response capability is typically accomplished in coordination with local, state, and federal public safety authorities. The planning group should include (as appropriate) representatives from local law enforcement, fire and emergency medical services (EMS), and internal stakeholders, including security, operations, engineering, IT, and communications equipment staff. An incident manager should be placed in charge for each event held at the convention center.

Every convention center should review and update its risk assessment, emergency/crisis response plans and security plans annually. Response plans and protocols should be informed by the risk assessment and modified and updated as risks change.

Emergency Operations PlanThe EOP provides for teams, plans, procedures, and policies to protect lives and property in the event of an emergency at the convention center. The protocol is a compilation of individual plans, procedures, and policies designed to address,


466


respond to, mitigate, and/or recover from a host of threats to a convention center’s security; it normally addresses each high and medium likelihood threat.

All plans created for the EOP should be consistent with the National Incident Management System/Incident Command System (NIMS/ICS) program. NIMS is a systematic, proactive approach for organizations to work together seamlessly and manage incidents involving all threats and hazards to life and property regardless of cause, size, location or complexity. ICS is a fundamental aspect of incident management that provides standardization through consistent terminology and established organizational structures. In almost all jurisdictions, local responders are organized in accordance with NIMS.

The EOP should include the plans, policies, protocols, and procedures listed below as well as any other plans for threats deemed to have a high or medium likelihood of occurring at the convention center. In particular, for event halts, delays, and cancellations, the protocol should identify the individual(s) responsible for the final determination. Criteria to be used to determine whether an event should be cancelled or delayed should also be included.

Incident response plans should account for the following events:

• Improvised explosive devices (IEDs)

• Vehicle borne improvised explosive devices (VBIEDs)

• Active shooter situations

• Vehicles used as weapons

• Chemical/biological/radiological events (CBRNEs)

• Suspicious packages or letters

• Bomb threat planning

• Threats against specific individuals

• Cyber-attack

• Fire

• Severe weather/natural disaster

• Medical emergencies

• Mass-casualty events

• Pandemics

• Food-borne illness

• Major civil disturbance inside or outside the convention center

• Protests

• A major technical problem, such as a regional power failure

• Collapse of a construction crane or other structure (stages, scaffoldings, etc.)

• Failure of a critical component of infrastructure or service (energy, water, telecommunications, etc.)

• Use/designation of the convention center as an evacuation shelter by


467


local or state authorities

In addition, if a convention center includes outdoor event space, the plan should include contingencies for the following:

• Unmanned aerial vehicles

• Thunderstorms

• Sudden onset of high winds

Emergency Medical PlanThis plan should include the following:

• Ensure that emergency medical personnel are on staff or at least on rapid recall during major events and on premises during special events

• Designate triage and transportation sites

• Reserve one or more rooms as a medical center

• Identify and secure emergency routes in and out of the convention center for medical staff and patients

Facilities may also include training and a procedure to guide staff should a medical incident be so large as to require them to engage in primary and secondary triage.

Evacuation/Shelter-in-Place/Relocation/Lock-Down PlanFacilities are strongly advised to use the DHS Evacuation Planning Guide for U.S. Sports Leagues in creating an evacuation plan, which should include:

• Maps of evacuation route

• A command structure/response teams for evacuation, sheltering, and relocation activities

• Defined roles and responsibilities for staff members who will assist or lead evacuations, sheltering, or relocation activities

• Roles and responsibilities of local law enforcements in evacuation, sheltering, and relocation activities

• Pre-recorded messages for monitors or the PA system

SECURITY CONSIDERATION: SPECIAL EVENTS

For certain special events, the risk to the facility increases significantly owing to such factors as the nature of the event or the attendees and therefore additional security measures must be put in place.

General ConceptConvention centers host countless events, from the simplest meetings to complex shows and conferences. The event planner and/or venue manager usually understands the complexities of a given event being scheduled but, as the world grows increasingly complex, so does the task of identifying special events that require special planning to ensure the safety and security of all involved.


468


Planning MeasuresSuccessful planning requires an understanding of potential risks, facility vulnerabilities, and the nature of a given heightened risk. When a special event is scheduled, a facility should review its most recent risk assessment or conduct a new one if the existing version is more than two years old.

Below are sample security measures that a facility can employ during a special event in order to manage risk:

• Working with police and federal law enforcement, add additional barriers at vehicle access points and around ingress and egress routes to control traffic

• Working with police and federal law enforcement, step up buffer zone vehicle enforcement and extend standoff distances as far as possible

• Deploy portable construction lights to increase illumination in remote areas and poorly-lit approaches

• Manage the number of other events and other personnel authorized to be on-site

• Working with police and federal law enforcement, extend physical protection of vulnerable points, including off-site critical facilities

• Increase frequency of perimeter patrols

• Increase security force allocations

• Position security at loading docks and parking structures

• Use armed guard force including police

• Use explosive detection canines

• Use patron-screening techniques

• Impose the most stringent possible inspections of incoming freight, both carried and delivered

• Increase parking access vehicle screening inspections

• Enforce all visitor escorts

• Minimize the number of doors in use

• Move all mail handling off-site

• Step up parking restrictions

• Postpone events that bring an additional attractive target group into a venue during a special event (e.g., do not schedule school visits during the special event)

• Reinforce real-time reporting capability between the security control center and all response personnel, both internal and external

• Reinforced barriers at remote or unused gates

In order to increase a heightened level of safety for all clients, a collaborative effort should be made to provide the tools, training, resources, and information to mitigate risks associated with having any event.


469


SUMMARY

The key to a successful, crisis-free event is paying attention to details, anticipating possibilities and planning. Many potential exhibition crises can be averted by careful communication with exhibitors and local venue staff. Whether dealing with natural disasters or health and safety issues, the exhibition organizer must have a plan in place and a team ready to implement it at a moment’s notice.

KEY WORDS

crisis

crisis management plan

crisis management team

Homegrown Violent Extremists (HVEs)

man-made disaster

mitigation

natural disasters

Physical Protection System (PPS)

preparedness

reporting

response

response planning best practices

DISCUSSION QUESTIONS1. Discuss the different types of crises that may interrupt an exhibition in

progress.

2. Review a natural disaster that occurred in recent years and how it could have impacted an exhibition in progress.

3. Create a crisis scenario and discuss how to handle the situation if it occurred in the 24-hours leading up to an exhibition opening. How would management of the crisis change if the same situation occurred on the second day of a three-day event?

4. Identify key stakeholders and discuss their roles in crisis management for an exhibition held in a facility near you.


471

CHAPTER

31

“Ethics is knowing the difference between what you have a right to do and what is right to do.” – Justice Potter Stewart, qtd. in Supreme Court ruling in 2017

BUSINESS ETHICS

Susan L Schwartz, CEMManaging Director

ConvExx




LEARNER OUTCOMES


1. Define the term business ethics and why they are important to embrace

2. Understand why it is important to be transparent and why one should disclose every aspect of financial transactions in business

3. List which questions to ask yourself before conducting business

4. Develop policies for conducting business for a trade show


472

CHAPTER 31 Business Ethics

Defining business ethics (also known as professional ethics) in the exhibitions and events industry means agreeing to set standards for businesses as well as individuals. Business ethics refers to contemporary organizational standards, principles, sets of values, and norms that govern the actions and behavior of an individual, corporation, or association in the day-to-day transactions and relationships. Ethics are often referred to in mission statements or statements of purpose.

Ethics are the rules or standards that govern our decisions on a daily basis. Many equate ethics with conscience or a simple sense of right and wrong. Others would say that ethics is an internal code that governs an individual’s conduct, ingrained into individuals by family, faith, tradition, culture, community, laws, and personal mores. It is important to realize that what is legal and what is ethical are not necessarily the same.

Issues that bring ethics into question in the exhibition industry includes, but are not limited to: negotiations, sales practices, overrides, Intellectual Property Rights (IPR), familiarization trips, gifts, suitcasing, outboarding, employee raiding and monopolizing talent, hiring practices, discrimination, digital rights management, copyright and trademark infringement, and transparency. How each of these issues is approached defines how individuals work and how both individuals and businesses are perceived by others.

NegotiationsIn preparing for negotiations, an employee’s responsibility is to attain the best possible outcome for the organization or for whomever a negotiation is occurring. In the process, it is imperative to ensure that the organization is not harmed by anything that occurs during the negotiation. One thing to consider when negotiating is to always ask if both sides will win, making sure to understand the other parties’ needs. Beginning or continuing a relationship with negotiations that are fair, where both parties are polite, rather than contentious, helps ensure that all further dealings between all parties will be operated on the same level.

Sales PracticesService providers, facilities, and hotels sell to organizers, organizers sell to exhibitors and attendees, and exhibitors sell to attendees. Most businesses are selling services, not an end-user product, so business ethics for the sales process must be established by each company to ensure trust in the process. Items to consider include proprietary information, unfair advantages, and overstating promises.

Unfair advantages could include prior knowledge of another company’s pricing, hiring of a favorite contractor to ensure getting the business or offering bribes to sway the decision maker to grant the business to a competitor, even if it is not the best fit.

Overstated promises might include promises to reduce the price of the service to receive a letter of intent, then adding additional charges in the invoice to bring the price back up, or overstating the services provided by the contractor,


473

Business Eithics CHAPTER 31

or the number of attendees/buyers who will attend a show in order to get companies to exhibit.

TransparencyTransparency is the act of disclosing every aspect of financial transactions. Overrides, also sometimes referred to as kickbacks or commissions, may be offered by some service contractors as part of the financial agreement. One way to approach this practice is to be intentional in the practice of being transparent. In some countries, there is not always transparency when it comes to why exhibitors (and attendees) are charged certain amounts by contractors at one show, while being charged more or less at another exhibition in the same city.

The level of disclosure will vary from one organization to another, but current business culture demands that contractual agreements are free of side deals. Even when rebates may appear to be common practice, the exhibitions industry must look towards the global expectation of the exhibitors and attendees. This is true even when a percentage of others may disclose a donation to a charity included in registration fees.

Some exhibition organizers may add on an amount to the negotiated hotel room rate to be re-bated to the exhibition organizer. For instance, some exhibition organizers may raise the price of hotel rooms by a few dollars nightly to cover the cost for shuttles transporting attendees from the hotel to the convention center. Attendees should be made aware of this when booking hotels.

Intellectual Property Right (IPRIPR is defined as a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, or trademark, etc. Exhibition organizers, along with service contractors, must review the ideas they develop against the current marketplace to ensure originality. Ethical issues can ensue when suppliers share information with an organizer who then shares that information with a supplier competitor.

Another challenge can be in regards to reproducing speaker’s intellectual property. Organizers are encouraged to include specific information in speaker agreements regarding what will be shared with attendees and on the Internet. Agreeing on what can be shared in advance will ensure that all intellectual property is appropriately protected.

On the exhibit floor, IPR can become an issue when an individual is visiting the event and takes photos of products being displayed, brings the photos back to their company, then either duplicates the look or uses the information to manufacture their own product. Exhibition organizers should have a policy on taking photos and videos on the show floor. The photo and video policy should be published in the general information provided at the exhibition and signage on the exhibit floor.

Copyright and Trademark InfringementAs well as being illegal, companies are urged to consider the ethical question of using another’s copyrighted or trademarked materials without permission to do so.


474


Familiarization TripsThe exhibitions industry legitimately uses familiarization trips to help make decisions regarding a destination, hotel or facility and become familiar with the available resources. The destination might pay for air travel and/or hotels, entertain the prospective client during the trip, etc. Ethical considerations include who should participate, and whether the property or city is a legitimate candidate for the business and whether actual business will be conducted during the visit, or if the trip is merely a vacation. The exhibition organizer participating in the familiarization trip should have decision-making power, or at the very least is a strong influencer in the decision-making process.

Hosted BuyersHosted buyers are invited by the exhibition organizer to visit an exhibition. The hosted buyers’ expenses, including air travel and hotel are paid for by the organizer, or a stipend might be paid to assist in covering expenses. Hosted buyers are required to attend scheduled appointments with exhibitors in order for their expenses to be paid. The person attending as a hosted buyer should be a person with decision-making authority or a strong influencer.

GiftsA gift offered or accepted may be questioned based on financial value, the intent of the giver, the timing and company policy. Before offering or accepting a gift, these issues should be considered:

• What is the purpose of the gift?

• Is the gift for a single individual or to share with the entire company?

• Does the gift imply an expectation in response? What type of response?

• Is the cost of the gift appropriate to the situation?

A gift becomes a bribe when it is given with the expectations of a return favor or decision. When considering the acceptance of a gift, the culture of the country must be considered. If a gift is refused, it can result in embarrassment and damage to a business relationship.

To determine if a gift is appropriate, consider whether if the information were to be published in a trade publication, or on social media, would the person receiving the gift be embarrassed, or the company for whom the individual is employed? Many countries have anti-corruption laws in place and the exhibition organizer needs to be aware of those laws when operating in those countries.

SuitcasingSuitcasing is the act of soliciting business in the aisles during an exhibition or in other public spaces, including another company’s booth, a hotel lobby or public space at a convention center. Exhibition organizers are responsible for handling situations involving suitcasing in a timely, efficient and discreet manner. Upholding a clear policy against suitcasing can assist in maintaining the ethical integrity of the event.


475


The activity of suitcasing is not permitted at any time during Expo! Expo! IAEE’s Annual Meeting & Exhibition and the IAEE Policy is as follows:

• Any attendee who is observed to be soliciting business in the aisles or other public spaces, in another company’s booth, or in violation of any portion of this policy, is subject to removal and additional penalties.

OutboardingSimilarly, outboarding by non-exhibiting companies should be handled in a timely manner. Outboarding is the practice of conducting sales meetings or events during an exhibition without the approval of the exhibition organizer. Outboarding should be discussed before the exhibition with the contracted venue(s), hotel partners and city partners in order to prevent the practice from happening. The exhibition organizer may want to include in agreements that they be notified when a company requests space at the hotel or venue for a separate event during the time of an exhibition.

Human Resource IssuesIssues include employee raiding and monopolizing talent, hiring practices, discrimination, harassment and abuse. Companies should ensure that their employee handbooks cover the methods for employees to report abuses. Middle and upper management training in human resource issues will assist a company in maintaining an ethical standard.

Digital Rights ManagementConstantly changing technology has had a tremendous impact on the perception of ethical behavior in business and in society. Using the Internet and social media as resources for information presents new and unknown challenges, including potential IPR issues. Additional issues include confidentiality, privacy and piracy of an individual’s personal information.


476


EXAMPLES OF ETHICAL ISSUESHonesty • Being truthful about potential future business opportunities

prior to accepting invitiations to participate in familiarization trips or hosted buyer events

• Disclosing commissions or incentives such as loyalty program points to employers or clients

• Keeping information confidential• Respecting the ownership of intellectual property,

including information in bids or proposals and client lists from past employers

Responsibility • Taking responsibility for the impact of your actions on your stakeholders, the environment, and the community

• Fulfilling verbal and written commitments in a timely manner

• Accountability

Respect • Valuing diversity• Demonstrating respect for trade show organisers by not

suitcasing or outboarding• Avoiding aggressive behaviour

Fairness • Using equitable negotiation practices and fair trade products

• Ensuring fair labour practices• Respecting supplier relationships by not requesting special

favours• Transparency

Compassion • Speaking out against bullying or mistreatment of others• Supporting the local community through service projects

Table 31.1. Examples of Ethical Issues, Reprinted with permission, Events Industry Council Manual, 9th Edition

Internal PoliciesMany organizations have created internal policies pertaining to the ethical conduct of employees. These are meant to identify the company’s values, expectations, and to offer guidance on handling some of the more common ethical problems that may arise in the course of doing business. An increasing number of companies also offer and require seminars regarding business conduct, which often include discussion of the company’s policies, specific case studies, and legal requirements. Companies may require employees to sign agreements stating that they will abide by the company’s rules of conduct. When considering whether an action is ethical, there are some basic questions that one can ask themselves:

• Is the action legal?

• Does the action comply with my organization’s values?

• If I do it, will I feel bad?


477


• How will it look in social media or in the newspaper, or even on television?

• Am I unsure whether the action is unethical?

It is prudent to check with a senior staff person for their feedback and approval if there is any uncertainty on the ethics of a situation.

IAEE’S GUIDING PRINCIPLES FOR MEMBERS

• Represent and act within your area of professional competency and authority without misrepresentation

• Conduct business with the highest level of integrity, honesty and social responsibility

• Avoid occurrences that could be perceived as a conflict of interest or for individual gain

• Honor written and oral contracts and respect legal and contractual rights of others

• Protect confidentiality of privileged information in all forms

• Foster cooperation and fair dealing for buyers and sellers, maintaining the principals of confidentiality, intellectual property protection and agreed contractual terms

• Refrain from misusing proprietary information

• Establish and maintain respectful relationships with fellow members globally

• Commit to the protection of the environment by responsible use of resources when possible

• Embrace and foster an inclusive business climate of respect for all, regardless of national origin, race, religion, gender, marital status, age, sexual orientation, gender identity, and physical or mental impairment.

SUMMARY

Exhibition organizers must look at the ethical issues such as honesty, integrity, professional behavior, company resources abuse, and abusive behavior. Every transaction and interaction with fellow employees, partners, clients, contractors, exhibitors, and attendees – frankly, every business relationship. Creating an Ethics Code of Conduct for the organization, as well as its employees, will bring many of the issues covered in this chapter, as well as others not yet explored to light for discussion.


478


KEY WORDS

bribe

business ethics


digital rights management

familiarization trips

gifts

hosted buyers

human resource issues

Intellectual Property Rights (IPR)

kickbacks or commissions

negotiations

outboarding

overrides

overstating promises

professional ethics

sales practices

suitcasing

trademark infringement

transparency

unfair advantages

DISCUSSION QUESTIONS1. Identify two ethical dilemmas and discuss the considerations for how to handle.

2. The use of the Internet has brought many ethical issues to the forefront, as many of organizers look for creative ideas, photos and fonts on the Internet. How can they be used ethically?

3. Will transparency help exhibition organizers educate exhibitors on the costs of producing events and explaining costs such as material handling, public areas such as registration, or will it hurt business?


479

GLOSSARY

KEYWORD Definition *notes definition per Events Industry Glossary CHAPTER(S)

3-D technology Type of AV hardware required for certain presentations. 24

acceptance

*A requirement for entering into a binding contract. If a contract proposal (offer) is made, it is accepted if the offeree signs the offer as submitted. If the offeree makes any changes to the offer before signing, it is a counter offer, not acceptance.

28

access point Refers to the entrance of a facility. 15

account leaderTypically refers to a sales representative who is responsible for understanding the exhibition requirements, the terms of the negotiated agreement, and assembling the right team to execute the exhibition.

22

account manager or executive

Works closely with the account leader to plan the OSC’s contributions to the exhibition; update the floor plan; compile the ESM or online ordering site; coordinate the design of the entryways, common areas, signage or banners; and manage the onsite requests of the exhibiton organizers and exhibitors.

22

accountabilityAn obligation or willingness to accept responsibility or to account for one’s actions.

4, 6, 11

accounts payableAre classified as liabilities and are the amounts an organization owes for puchased goods or services on credit from a supplier or vendor.

7

accounts receivableAre assets and refer to amounts due to an organization for sales of goods or services on credit to a customer.

7

accrual method

*1) An accounting method that enters income and expenses into the books at the time of contract versus when payment is received or expenses incurred (cash accounting). 2) A system in which revenue and expenses are accounted for as soon as they are committed.

7

action planIs part of athe strategic planning process and is utilized during the impmentation phase. The action plan includes initiatives, activities, resources, schedules and is commuticated to key stakeholders.

4

activationFormally set up an activity within an event to encourage attendee participation.

15

actualized room blockThe number of rooms that have been actually occupied compared to the number of rooms that were originally requested.

20

adaptive designAdaptive web design (AWD) promotes the creation of multiple versions of a web page to better fit the user’s device.

23

adaptive strategic planning

Type of strategic planning method where an internal or external event prompts the strategic planning process as opposed to a set schedule.

4

additional insured statusAn individual or organization listed as covered by a primary insurance agreement.

29

admission feeAllows entry to the exhibition/event, without requiring personal data, such as name and contact information.

6

adult learning Theory on how adults learn based on type of setting, etc. 8

advance freightShipments sent to the OSC’s warehouseor “trapped” at a designated carrier’s warehouse prior to move-in.

26


480

GLOSSARY

advance receiving warehouse (ARWH)

Pre-exhibition storage warehouse; freight is generally accepted 30 days before and up to a week prior to move-in.

26

advance registration*Booking before an event takes places. Allows attendees to register for an event before it actually takes place.

6

advance/on-site processAn exhibition sales process where exhibition organizers offer future booths/stands for sales during the current exhibition.

19

advertising A form of marketing communication used to persuade an audience to take or continue some action, usually with respect to a commercial offering.

17

agent’s agreement

A legal contract creating a fiduciary relationship whereby the first party (“the principal”) agrees that the actions of a second party (“the agent”) binds the principal to lateragreements made by the agent as if the principal had himself personally made the later agreements.

17

air freight forwarder*An airfreight company that transports freight via scheduled airlines. Forwarders do not operate their own planes.

26

airline travel partnerAn airline that the exhibition organizer will form an alliance with to offer group discounts and fares.

27

aisle (gangway)*1) Area between a booths/stands for attendee traffic movement. 2) Space between tables or chairs to allow passage of an audience.

15

alignment modelUsed when an event needs to align resources with a new articulation of mission and programs. After the current mission is reviewed and key programs or initiatives are identified, the programs are prioritized.

4

all risk basisA type of insurance coverage that automatically covers any risk that the contract does not explicitly omit.

29

ambianceThe mood, character, quality, tone, atmosphere, etc., particularly of an environment.

24

ambient noise Background noise. 8

amenity*Complimentary items provided by a hotel in sleeping rooms such as toiletries, writing supplies, bathrobes, fruit baskets, and shoe shine mitts.

14

American National Standards Institute (ANSI)

As the voice of the U.S. standards and conformity assessment system, the American National Standards Institute (ANSI) empowers its members and constituents to strengthen the U.S. marketplace position in the global economy while helping to assure the safety and health of consumers and the protection of the environment.

9

American Plan *A type of hotel rate that includes the price of the room and all meals. 28

Americans with Disabilities Act (ADA)

Passed by Congress in 1990, the Americans with Disabilities Act(ADA) is the nation’s first comprehensive civil rights law addressing the needs of people with disabilities, prohibiting discrimination in employment, public services, public accommodations, and telecommunications.

14

annual aggregateThe yearly maximum that a policy will cover, regardless of how many claims are made.

29

appShort for applications or software that can be run on mobile devices, computers, networks and via Internet-based cloud services.

23

application programming interface (API)

A system of tools and resources in an operating system, enabling developers to create software applications.

23


481

GLOSSARY

approved provider listIssued by some facilities, this list contains contact information for specialty contractors recommended by the facility.

22

approved supplierThese selected suppliers can exhibit their products and “sell” to the attendees.

2

aspect ratio*The ratio of image width to height; pertaining to audiovisual, video and slides.

24

asset Anything of value owned by or due to the organization. 7

asset availability How many assets exist. 6

asset managementA necessary function that identifies exhibition assets, determines asset availability, sets asset value and promotes assets to potential sponsors.

6

asset value What the sponsor should pay and what is included in the asset. 6

association*An organized group of individuals and/or companies who band together to accomplish a common purpose, usually to provide for the needs of its members. Usually nonprofit.

2

ASTM International

ASTM International is one of the largest voluntary standards development organizations in the world-a trusted source for technical standards for materials, products, systems, and services. Known for their high technical quality and market relevancy, ASTM International standards have an important role in the information infrastructure that guides design, manufacturing and trade in the global economy.

9

ATA carnet

*An international customs document that permits duty-free and tax-free temporary import of goods for up to one year. It eliminates or reduces VAT charges, customs fees, and bond fees. The initials “ATA” are an acronym of the French and English words “Admission Temporaire/Temporary Admission.” ATA Carnets cover commercial samples; professional equipment; and, goods for presentation or use at trade fairs, shows, exhibitions, etc. Items not covered are consumable or disposable goods, which will not be returned home.

26

attendance auditThird party audit of registration statistics using an Exhibition and Event Industry Audit Commission certified auditor.

10

attendee(s) A person who attends a conference or other gathering. 1, 16

attendee demographicsDefining the target market (knowing where the attendees come from so the attendee marketing campaign can be developed).

16

attendee guaranteeA promise of commitment to provide a minimum amount of sleeping rooms, F&B, or other revenues. Usually there is financial liability if the commitment is not met.

28

attrition

*The difference between the actual number of sleeping rooms picked-up (or food-and-beverage covers or revenue projections) and the number or formulas agreed to in the terms of the facility’s contract. Usually there is an allowable shortfall before damages are assessed.

6, 28

audience quality How valuable the attendees are and / or the number of attendees. 10

audience quantity *The number of attendees in an audience or crowd. 10

audiovisual (AV)*Also “A/V”. Equipment, materials, and teaching aids used in sound and visual presentations, such as video projection, monitors, sound equipment, etc.

21


482

GLOSSARY

audiovisual (AV) tools*Equipment, materials, and teaching aids used in sound and visual presentations, such as video projection, monitors, sound equipment, etc.

24

auditorium

*Room for gathering an audience for speeches, concerts etc. Often used to name entire facilities, though properly applied only to the seated portion of the facility in which the audience is assembled. Typically a building named in this way will be an arena or theater class building.

1

augmented/mixed reality

The marriage of augmented reality and mixed reality. 23

authority (in convention center ownership)

A form of ownership and operations; authorities can be formed by cities, counties, states and tribal agencies in the US. The authority’s governance is often under an appointed board of directors or governors.

13

AutoCAD Automated computer-aided design software. 15

AV designerAn audiovisual professional who is responsible for the set-up, configuration or operation of lighting, sound, video, staging or other similar elements of an event function.

24

AV technicianAn audiovisual professional who is responsible for the set-up, configuration or operation of lighting, sound, video, staging or other similar elements of an event function.

24

balance sheet *A financial status at a given time (includes liabilities, assets, etc.). 7

bandwidth load capacityThe amount of data that can be passed along a communications channel in a given period of time.

14

banquet event orders (BEO’s)

*BEO. A form most often used by hotels to provide details to personnel concerned with a specific food and beverage function or event room set-up.

14

bar codeA series of lines that includes a unique identification number that refer’s to the attendee’s registration record or registration and demographic information.

20

bellwether effectSomeone or something that leads others or shows what will happen in the future.

18

bias (in research method or analysis)

A process where the scientists performing the research influence the results, in order to portray a certain outcome.

10

big dataBig data is data sets that are so big and complex that traditional data-processing application software are inadequate to deal with them.

23

bill of lading

*B/L. A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. It serves as a document of title, a contract of carriage, and a receipt of goods.

26

blanket additional insured endorsement

This endorsement automatically confers additional insured status on all parties whom exhibition organizers are required by contract to name as additional insured, e.g., exhibition sponsors and exhibition venues. It essentially protects the policyholder should an additional insured who should be added is overlooked.

29

BluetoothA brand name for a wireless networking technology that uses short-wave radio frequencies to interconnect cell phones, portable computers, and other wireless electronic devices.

24


483

GLOSSARY

Bluetooth Low Energy/ibeacon/beacon

A technology protocol that detects the BLE signal from a beacon to calculate distances to a beacon to a location.

23

booth/stand*Specific exhibit display area assigned by show management to an exhibitor under contractual agreement. Internationally, the term STAND is used. See STAND.

15

bounce-back (rate) The number of emails that come back undeliverable. 17

breach of contractFailing to perform any term of a contract without a legitimate legal excuse. The contract may be either written or oral.

28

break-even *The point at which revenues are equal to expenses. 6

break-even analysisBreak-even analysis is the process used to determine when revenue equals expense, which is the break-even point. Two types of costs must be analyzed in the process. They include fixed costs and variable costs.

7

break-even point *The point at which revenues are equal to expenses. 7

bribePersuade (someone) to act in one’s favor, typically illegally or dishonestly, by a gift of money or other inducement.

31

budget assumption An expectation – usually expected or presumed income and expenses. 5

budget diaryThese are notes of clarification and similar comments added in budget worksheets. Think of them as footnotes that can provide additional insight and clarity.

6, 7

budget managementThe analysis, organization and oversight of costs and expenditures for a business or organization.

6

budget philosophy *Financial goal of the event (break even, profit or lose money). 6

business ethic

The study of proper business policies and practices regarding potentially controversial issues such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities.

31

business intelligenceData used to help an organization identify and understand the target market.

17

business personal property (BPP)

Building, equipment, fixtures, furniture, merchandise, etc., identified in an insurance policy as owned by the insured and used in his or her business.

29

business planDescribes the business, its internal organization of resources, its product or service, customers and its potential market niche and share. Is used to establish or reorganize a business and to solicit funding.

4


Exhibitions that are produced primarily for a business audience and are not generally open to the public.

2, 17


These exhibitions are open to the general public and usually charge an admission fee. Also know as public exhibitions/events.

2, 17

buyer Those responsible for placing an order. 2

buyer groupMore than one person who collectively buys something or in charge of selection, purchasing, etc.

1

call-to-actionWords that urge the reader, listener, or viewer of a sales promotion message to take an immediate action, such as “Write Now,” “Call Now,” or (on Internet) “Click Here.”

17


484

GLOSSARY

cancellation penaltyForces exhibitors to commit to their room block immediately upon booking.

20

capital itemTangible asset that an organization uses to produce goods or services such as equipment and machinery.

2

carbon footprintA measure of the impact human activities have on the environment in terms of the amount of green house gases produced, measured in units of carbon dioxide.

25

carbon footprintA measure of the impact human activities have on the environment in terms of the amount of green house gases produced, measured in units of carbon dioxide.

27

cargo insurance*Additional coverage protecting the owner of goods for loss or damage while goods are in a carrier’s possession. Recommended for all international shipments.

26

cartage agent Carrier that transports the exhibit materials to the exhibition. 26

cash method*An accounting method where revenue is recorded at the time the cash is received and expenses when disbursed.

7

cash-and-carry food service

Attendees and exhibitors pay for their food on the spot in cash, and carry the food away themselves.

28

certificate of insurance*A document provided by an insurance company as proof that a policy has been issued and coverage is in effect.

29

certificate of origin*A document, required by certain countries for tariff purposes, certifying as to the country of origin of specified goods.

26

chain motor(s) Used for applications such as lifting and securing overhead truss. 22

chart of accounts

*A detailed list of the individual line items that make up the revenue and expense categories in a budget. A numbering system used to identify every line item in a budget, so income and expenses are posted to the correct accounts.

6

chart of accounts

*A detailed list of the individual line items that make up the revenue and expense categories in a budget. A numbering system used to identify every line item in a budget, so income and expenses are posted to the correct accounts.

7

chief executive officer (CEO)

The corporate executive responsible for the operations of the firm; reports to a board of directors; may appoint other managers (including a president).

12

chief interpreterOne who decides which translations are necessary based on the demographics of the exhibition’s particpants.

11

claims-made policyProvides coverage only for losses that are reported during the policy period.

29

closed eventExhibitions and events that are essentially specific in who can exhibit or attend.

2

closed shop Environments in which workers must join a union in order to work. 22

closingDuring a sales call, the point when the sales person asks for a commitment.

19


485

GLOSSARY

closing phase

Includes the exhibition’s actual completion, recognition of approval by the exhibition organizer or owner, and an analysis of the success in achieving objectives by the team. One of the five project management phases that constitute the foundation for most projects, including managing exhibitions.

5

cloud computingThe practice of using a network of remote servers hosted on the Internet to store, manage, and process data.

23

collective bargaining

The process through which unions negotiate with multiple employers to set jurisdictions (what kind of work is done by what type of laborer) and establish wages, benefits, employer contributions, training and other specifics. The unions set their limits and boundaries by contract within states or large locales in metropolitan areas.

22

co-location *To hold two related events at the same time and in the same place. 1

commercial general liability (CGL)

Provides coverage for claims alleging that the policyholder, (show management or a person or company hired by the exhibition organizer), caused bodily injury or property damage.

29

commissions and rebates

*A payment made to an individual or organization for bringing business to another individual or organization.

28

common carrier

*Transportation company which handles crated materials; an agency or business that is available to the public for transportation of persons, goods, or messages; usually referring to freight transportation on regularly scheduled trucks or airplanes.

26

complimentary registration

Free registration. 6

complimentary rooms allotment

*A sleeping room or function room provided to an individual or organization at no cost.

28

concept map Helps to guide employees in their responsibilities for the organization 4

concession*Contractual agreement where one party provides something of value to the other party in exchange for something else, pending certain conditions.

11, 28

conference center*A facility that provides a dedicated environment for events, especially small events. May be certified by the International Association of Conference Centers.

13

consideration *The inducement to a contract. The cause, motive, price, or impelling influence which induces a contracting party to enter a contract.

28

consumer exhibition *Exhibition that is open to the public, usually requiring an entrance fee. 16

content marketingAny marketing that involves the creation and sharing of media and publishing content in order to acquire and retain customers.

18

Continental Plan *A room rate that includes a continental breakfast. 28

contingent loss adjusterManages event cancellation losses and will calculate a settlement based upon such factors as whether the event was partially or totally interrupted or cancelled.

29


486

GLOSSARY

continuing education recognition points (CERPs)

A credit system developed and managed by the American Association of Critical-Care Nurses; nurse attendees can earn CERP credits by attending education presentations on the exhibition floor, either in theaters located in exhibitor booths or on educational stages located in the exhibition hall.

8

continuing education units (CEU)

*Non-academic credit unit conferred by professional organizations for formal educational programs for members who must maintain their level of professionalism.

8

continuing medical education (CME)

A specific form of continuing education (CE) that helps those in the medical field maintain competence and learn about new and developing areas of their field. These activities may take place as live events, written publications, online programs, audio, video, or other electronic media. Content for these programs is developed, reviewed, and delivered by faculty who are experts in their individual clinical areas.

8

contract*An agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other’s duty or a remedy for the breach of the other’s duty.

28

contract addendumDocument that describes additions, alterations, or removal, of the scope (or the terms) of a contract, mutually agreed upon by the parties to the contract.

18

contracting parties Parties or companies or individuals who enter into a contract. 28

contractual liability The liability imposed upon one party by a business contract. 29

contribution margin

The contribution margin is the difference between total sales revenue and total variable costs. The remainder represents the amount (or percentage) that would be contributed toward fixed costs and profit. If the contribution margin were calculated to be 42 percent, then for each one dollar of sales, 42 cents would be contributed to fixed costs and profit.

7

controlled media message

Include advertising, brochures, videos, web sites and other tools; not publicity and not free.

17

convention

* Gathering of delegates, representatives, and members of a membership or industry organization convened for a common purpose. Common features include educational sessions, committee meetings, social functions, and meetings to conduct the governance business of the organization. Conventions are typically recurring events with specific, established timing.

1, 16

convention and visitors bureau (CVB)

*A not-for-profit organization, defined and recognized by it’s incorporated local government entity as the representative organization responsible for promoting the economic development of their community through travel and tourism. CVBs assist planners by providing information on local resources and services, including site selection, pre-conference and post-convention services.

12

convention center

*Facility whose purpose it is to host trade shows, public shows, conventions, and other large functions and that combines exhibition space with a substantial number of smaller meeting and event spaces. A convention center may be purpose-built or converted and municipally or privately owned.

13


487

GLOSSARY

convention services manager (CSM)

*Professional at a hotel, convention center or convention bureau who is responsible for event operations management on all levels.

14


Copyright infringement is the use of works protected by copyright law without permission, infringingcertain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works.

28, 31

core PCOOne who provides services to an organization for multiple events or over multiple years.

11

corkage*A charge placed on beer, liquor, and wine brought into a facility but purchased elsewhere.

25

corporate marketers One that promotes or sells a product or service on behalf of a corporation. 1


Our obligation to consider the interests of customers, employees, shareholders, communities and the environment as an aspect of meeting planning, execution and evaluation so that sustainability can be achieved.

6, 9, 11, 12

corporation For profit businesses. 2

counter offer An offer made in response to another. 28

credit card guaranteeGuarantees the hotel reservation and holds the room however the exhibitor is not charged at the time of the reservation.

20

crime insurance

Provides protection arising from the loss of cash, securities or inventory as a result of criminal activity, which commonly might include employee dishonesty, forgery, embezzlement, robbery, safe burglary, wire transfer fraud, counterfeiting, and in recent years, computer fraud.

29

crisisA decisive moment in time when danger or great difficulty occurs and includes a turning point or critical situation resulting in good or bad consequences.

30

crisis management planProvides the exhibition organizer and its staff with information and guidance in making quality decisions during a stressful time.

30

crisis management team

Made up of top management, public relations, operations, technical support and human resources.

30

critical pathThe longest sequence of activities in a project plan which must be completed on time for the project to complete on time.

5

critical path method (CPM)

A technique that graphically depicts the flow of key project tasks, predicts the longest possible duration of each planned activity, and highlights task or activities that must be completed before other activities can be started.

5

cross aisle *Aisles at a right angle or perpendicular to a main aisle. 15

cross-selling Sell (a different product or service) to an existing customer. 19

cross-training To train (an employee) to do more than one specific job. 5

cubic contentA unit of measurement allowing display materials to occupy 100 percent of the exhibit space purchased, regardless of sightlines, up to a height established by the exhibition’s rules.

15

customer relationship management (CRM)

A computerized system for identifying, targeting, acquiring, and retaining the best mix of customers.

19

customs broker See freight forwarder. 21


488

GLOSSARY

cut-off date*Designated date when a hotel will release any unsold sleeping rooms in a group block and make them available to the general public. The date is typically three to four weeks before the event.

28

cut-off dates*Designated date when a hotel will release any unsold sleeping rooms in a group block and make them available to the general public. The date is typically three to four weeks before the event.

20

daily spendThe per attendee/exhibitor spending on things like restaurant meals, entertainment and taxi rides.

13

deductible The amount of a claim of loss that the insured must pay. 29

deficit-based Expenses exceed revenue. 6

deliverableA thing able to be provided, especially as a product of a development process.

5

demographic information

A profile of attendees/visitors and exhibitors. May include company location, job function, purchase budget and purchase intentions.

10

deposit per reservation A deposit is charged at the time of booking the reservation. 20

designated product zone An area focusing on selected products or services. 15

destination A place to which a person is going. 14


*A professional services company possessing extensive local knowledge, expertise and resources, specializing in the design and implementation of events, activities, tours, transportation and program logistics.

11, 12, 14, 21, 27


*A not-for-profit organization, defined and recognized by it’s incorporated local government entity as the representative organization responsible for promoting the economic development of their community through travel and tourism. DMOs assist planners by providing information on local resources and services, including site selection, pre-conference and post-convention services.

12, 14, 21

digital media Any media that are encoded in machine-readable formats. 17

digital rights management

Is a systematic approach to copyright protection for digital media. The purpose of DRM is to prevent unauthorized redistribution of digital media and restrict the ways consumers can copy content they’ve purchased.

31

digital sponsorshipIncludes display ads, e-newsletters, mobile apps and streaming audio; allows exhibitors to expand their reach to attendees.

18

dine-aroundsThey are informal dinners at local. restaurants that provide an opportunity for networking, stimulating conversation, and peer learning.

27

direct freight Materials sent directly to the exhibition venue. 26

direct mail Promotional communication that is transmitted through the mail. 17, 19

direct sales Selling directly to a consumer. 19

directional statementFormally state the Mission Statement, Vision Statement, and Core Values and Guiding Principles.

4

discount code A code travelers use to receive benefits; used to track participation. 27

discount feesThis registration rate structure should be determined for multiple registrations from the same company. For example, full fee would be charged for the first registrant and a discount the remaining registrants.

6


489

GLOSSARY

discount off published fare

Usually in effect three days before and after the exhibition/event dates, allowing the traveler to stay at least eight days at the discounted rate.

27

dispute resolution Dispute resolution is the process of resolvingdisputes between parties. 28

distributed decision authority

Decentralized decision-making is any process where the decision-making authority is distributedthroughout a larger group.

4

double/double occupancy

A room with two beds for two people. Bed sizes may be single or double size.

28

dwell time Time spent in the same position, area, or stage of a process. 23

early registration*Registration received before a pre-defined date, usually offering a lower fee.

6

economic impact

*The total value of an event, including secondary spending (indirect and induced) on the host destination’s local economy over and above the original direct spending. These secondary impacts, when combined with the original direct spending, result in the total economic impact of an event.

13

economies of scale A proportionate saving in costs gained by an increased level of production. 1

egress point An exit. 15

email fatigue Occurs when buyers (attendees/exhibitiors) get tired of email. 18

emergency medical technician (EMT)

A person who is trained to provide emergency medical services to patients who are being taken to a hospital.

21

end cap*Linear booth/stand that is exposed to aisles on three sides and is composed of two booths/stands.

15

english systemA system of weights and measures based on the foot and pound and second and pint.

15

environmental responsibility

The duty that a company has to operate in a way that protects the environment.

25

European MesseGroup of convention centers in Europe that are owned by Messe Worldwide.

1

European Plan *A room rate that does not include meals. 28

European Union’s General Data Protection Regulations (GDPR)

The General Data Protection Regulation (EU) 2016/679(“GDPR”) is a regulation in EU law on data protection and privacy for all individuals within the European Union (EU) and the European Economic Area (EEA).

28

evaluation metricsUsed to analyze ROI; a systematic process to determine the value of an activity.

25

event advertiser Purchase advertising space from the exhibition organizer. 16

event cancellation insurance

*A type of insurance that protects an event organizer against financial loss or expenses incurred when contractually specified perils necessitate canceling or relocating an event, or cause a reduction in attendance.

29

event manager (EM) See convention services manager (CSM). 14

event marketingThe 365-day/year process of communicating the value of the face-to-face medium through branding, promotion, experience and confirmation from consumers.

16

event salesAny of a number of activities designed to promote customer purchases of a product or service (American Marketing Association, 2011).

16


490

GLOSSARY

event specifications guide (ESG)

*The preferred term for a comprehensive document that outlines the complete requirements and instructions for an event. This document is typically authored by the event planner and is shared with all appropriate vendors as a vehicle to communicate the expectations of services for a project. The industry accepted practice is to use the Industry Insights Event Specifications Guide, which can be found at the Convention Industry Council web site. Sometimes called Staging Guide, Resume.

14

event sponsor Provide monetary support or in-kind donations for exhibitions. 16

Events Industry CouncilThe Events Industry Council is a 33 member organization that represent over 103,500 individuals and 19,500 firms and properties involved in the meetings, conventions, and exhibitions industry.

3

excess declared value liability

Exhibitors can purchase to protect against their liability for lost, damaged, stolen or delayed goods.

26

exclusive provider*Any agreement which limits who may provide specific products or services under certain conditions to only one party. No other contractor is allowed to provide the same services or products in that facility.

13, 21

exclusive serviceServices that are contracted between a facility and a service provider designating that the provider is the only source of a specific service or product within that facility.

22, 28

executing phaseThe process of completing the work defined in the project plan, which satisfies the project specifications.

5

exhibition*An event at which products, services or promotional materials are displayed to attendees visiting exhibits on the show floor. These events focus primarily on business-to-business (B2B) relationships.

1, 2

exhibition assets What can be sponsored. 6

exhibition centerA large building in which major trade fairs, trade shows and exhibitions are held.

13

exhibition economic impact

*The total value of an event, including secondary spending (indirect and induced) on the host destination’s local economy over and above the original direct spending. These secondary impacts, when combined with the original direct spending, result in the total economic impact of an event.

13

exhibition hall rental: included and excluded services

Items that are included or excluded as part of a rental fee. 28

exhibition metric A standard for measuring or evaluating an exhibition. 10

exhibition organizer*The specific person responsible for all aspects of planning, promoting, and producing an exhibition. Also referred to as a Show Manager or Show Producer.

1, 2

exhibition sales process The process used for exhibition sales. 19

exhibition specials Discounted merchandise priced significantly below retail. 16

exhibitor*1) Person or firm that displays its products or services at an event. 2) Event attendee whose primary purpose for attending the event is to staff a booth/stand.

1


491

GLOSSARY

Exhibitor Advisory Committee (EAC)

*Representatives of an event’s exhibiting companies who act as advisors to show management on procedures, the needs of exhibitors, and provide feedback for marketing and growing the show.

10

exhibitor education Education that is designed for the exhibitor in mind. 19

exhibitor prospectus

*Promotional materials sent to current and prospective exhibitors to encourage participation. It promotes the value of exhibiting in a specific show and contains information about technical points, cost of exhibition space, a floor plan of the exhibition and an application for participation.

16

exhibitor service center (ESC)

The on-site venue at an event where exhibitors requiring additional sales or assistance can find representatives of the OSC, subcontractors and specialty contractors.

22


*Manual or kit, usually developed by the general service contractor for an event, containing general event information, labor/service order forms, rules and regulations and other information pertinent to an exhibitor’s participation in an exhibition. Also called EXHIBITOR SERVICE KIT.

11, 19, 20, 22

exhibitor services kit (ESK)

A kit provided to exhibitors that assist with planning needs including all service contractor forms including booth furniture rental, electrical, etc.

20

exhibitor services manager

Supervises the on-site exhibitor services center where exhibitors’ service needs are addressed.

22

exhibitor services teamInteract with the exhibition organizer to address their questions and needs efficiently.

22

exhibitor tool kit

*Manual or kit, usually developed by the general service contractor for an event, containing general event information, labor/service order forms, rules and regulations and other information pertinent to an exhibitor’s participation in an exhibition. Also called EXHIBITOR SERVICE KIT.

20


*Any company other than the designated “official” contractor providing a service to an exhibitor. Can refer to an Install & Dismantle Company (I&D House), photographer, florist or any other type of contractor.

22, 26

exits Type of clause that could be included in a contract. 28

experiential learning environment

The process of learning through experience. 8

expo center A facility that primarily hosts consumer shows or community events. 13

fair

*1) Event principally devoted to the exhibition of agricultural products or industrial products. Fairs may also provide entertainment activities. 2) Exhibition of products or services in a specific area of activity held with the objective of promoting business.

13

fair trade agreement*A market initiative to insure that small farmers in developing countries are paid a fair market price that encourages independence and sustainability. Agricultural products may be Fair Trade certified.

25

fairgroundCounty, regional and state fairs in the U.S. that are or were at one time used to host state fairs or were host to agricultural expositions.

13

familiarization tripsFam Trip. A program designed to acquaint potential buyers with specific destinations or services and to stimulate the booking of an event. Often offered in groups, but sometimes on an individual basis.

31


492

GLOSSARY

fidelity insuranceProtection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.

29

fire marshal

*In the United States, Fire Marshals’ responsibilities vary from state to state, but they are generally responsible for fire safety code enforcement, fire and arson investigation, fire incident data reporting and analysis, public education and advising legislatures on fire protection.

15

first-tier destination

Typically the biggest convention cities in the country (Chicago, Las Vegas, Orlando, etc.) There are certain characteristics they all have in common such as:

• Airport with ample nonstop national and international access• Hotel inventory that includes major hotel brands • Abundant dining, entertainment, and attraction options for

attendees • 10,000 minimum committable sleeping rooms • Convention center with a minimum of 500,000 gross square feet

of exhibit space • Considered one of the top 25 destinations for group business • Distinctive leisure-travel appeal

12

fiscal year

Accounting period that can start on any day of a calendar year but has twelve consecutive months (52 consecutive weeks) at the end of which account books are closed, profit or loss is computed, and financial reports are prepared for filing. It may or may not match a calendar year.

7

fixed beaconsBeacons can be deployed at fixed places such as airports, museums, trade show booths, etc. to track traffic.

23

fixed cost*The day-to-day cost of doing business that is pre-committed, such as salaries, insurance, lease expenses, utilities, etc.

7

floor load capacity *Maximum amount of weight per square foot/meter a floor can support. 14

floor plan

*1) Scale drawing indicating the placement of exhibit booths and all other features in an exhibit hall. 2) Scale drawing of the floor area of a hotel’s event space. 3) Scale drawing of a function room with specific set-up requirements (tables, chairs, etc.).

15

floor plan management tool

Commercial software programs that assist in assigning booth spaces. 19

focus group *Method of doing research using a small group led by a facilitator. 10

food and beverage (F&B) The menu for the exhibition or event. 25

food demonstrationUsed as a way to develop a sense of theatre and increase traffic around a booth/stand.

25

force majeure*An event (e.g. war, labor strike, extreme weather, or other disruptive circumstances) or effect that cannot be reasonably anticipated or avoided.

28

formal evaluation method

Formative evaluation for exhibitions that provide direction to design, develop and/or improve the exhibition.

10

formal strategic planning

A pre-determined and predictable process that usually takes places annually or on a cycle of every three to five years.

4

formative evaluation An evaluation made during an event or project. 5, 10


493

GLOSSARY

four P’s (of marketing)Used to effectively develop marketing strategies that are on target and will yield intended results; product, price, place and promotion.

17

free-standing displayA stand-alone display; the exhibition organizer should find out what, if any, charges are associated with setting up free-standing displays.

28

freight broker

A shipping option when shipping from within the US to an exhibition venue in the US; is an individual or company that serves as a liaison between another individual or company that needs shipping services and an authorized motor carrier.

26

freight forwarderA third-party logistics provider which handles export shipments for customers using common carriers.

21

freight forwarder*A third-party logistics provider which handles export shipments for customers using common carriers.

26

frequency (in advertising)

How many times an ad is seen. 1

full American plan*A type of hotel rate that includes the price of the room and all meals. Also Called FULL AMERICAN PLAN (FAP).

28

full truckload (FTL)The movement of large amounts of homogenous cargo; the cargo usually remains on a single vehicle from the point of origin to the destination.

26

function space

A designated area specifically designed and equipped to be used for exhibitions and events such as exhibits, general sessions, seminars, workshops, committee meetings, board meetings, and food and beverage functions; Space that an organization or individual has rented from the facility, to be used by them for a predetermined timeframe, to the exclusion of others.

28

gangway A raised platform or walkway. 22

general freight forwarder

*A third-party logistics provider which handles export shipments for customers using common carriers.

26

geoclone To actively use four technologies for a website. 22

gifts A thing given willingly to someone without payment; a present. 31

global positioning system (GPS)

Help attendees find their way around a venue, an exhibition hall and the surrounding neighborhood as well as finding one another at the exhibition; A U.S. military satellite system now available for public use that allows those with a GPS receiver to locate their position on the surface of the Earth to within a few feet.

23

goalBroad, long-term targets that define the accomplishment of the mission while striving toward the vision. Goals are framed from a “big-picture” perspective. They answer the question “why?”

4

Gobo effect*A pre-cut, etched pattern fabricated from metal or glass that fits in a lighting instrument to form projected light into a shape (logo, graphic, scenery, etc).

24

grab-and-goA food option where attendees can get packaged and prepared sandwiches, salads, frut bowls, hotdogs, pizzas and pastas.

25

Green Meetings Industry Council (GMIC)

A council of the Events Industry Council (EIC) focusing on sustainable meetings.

9


494

GLOSSARY

green option (in collecting data)

Collecting data in a way that supports the environment (electronic options).

10

gross domestic product (GDP)

The total value of goods produced and services provided in a country during one year.

1

gross salesTotal invoice value of sales before deducting discounts or making allowances for returns, or other adjustments.

7

gross square feet/meters (gsf/gsm)

*gsf or gsm. 1) Total amount of available function space in exhibit hall or other facility. 2) Total amount of space used for a specific show or event.

15

ground transportation specialist

Someone who specializes in getting attendees from their hotels to the exhibition/event; most exhibition organizers with events utilizing a large number of hotels outsource to a ground transportation specialist with experience in the exhibition industry.

27

handling objectionsPhase of the sales cycle where the sales person must overcome sales resistance or unwillingness to make a decision by providing additional information and addressing specific concerns.

19

hands-on demonstrationProvides direct practical experience in the operation or functioning of something.

8

hard wallIncludes fittings, fixtures, and walls that are a part of a booth, made of posts and panels.

22

Harmonized Tariff System (HTS)

A worldwide classification system for goods, which are imported and exported. Its primary function is to identify the commodity or item being shipped for the purposes of tax assessment, as well as to determine any ancillary document requirements.

26

headquarter hotel*Facility, as the center of operations, where registration, general sessions, and conference staff office are located.

20

heat mapA representation of data in the form of a map or diagram in which data values are represented as colors.

23

heavy lifting Another term for material handling. 22

high-definition (HD) video

Video of higher resolution and quality than standard-definition. 23

historical data percentage

A method to secure rooms that that restricts the number of rooms that can be requested based on the number of rooms actualized at the previous event.

20

hold harmlessIs a statement in a legal contract stating that an individual or organization is not liable for any injuries or damages caused to the individual signing the contract.

28

hold harmless

*An indemnity clause that provides that both parties agree to defend and/or compensate the other party for asserted claims against, or liability damages incurred by, the other party due to the acts or omissions of the first party.

29

holographic A three-dimensional image, created with photographic projection. 24


495

GLOSSARY

Homegrown violent extremists (HVEs)

Those who encourage, endorse, condone, justify, or support the commission of a violent criminal act to achieve political, ideological, religious, social, or economic goals by a citizen or long-term resident of a Western country who has rejected Western cultural values, beliefs, and norms.

30

horizontal exhibitionShow where products or services represent all segments of an industry or profession.

2,15

hospitality industryIncludes DMOs, hotels, event facilities, restaurants, transportation providers, audio/visual installation companies, entertainers, professional speakers and decorators.

12

Hospitality, Tourism, and Events Industry Competency Model

The model identifies the knowledge, skills, and abilities that provide a foundation for industry workers, as well as competencies specific to key sectors.

3

host committeeA group of people bringing specific expertise of the locality and facilities of a given area to the Organizing Committee in planning the event program.

21

hosted buyerAn industry buyer who receives free travel and accommodations to the exhibition.

25, 31

hotel contractsIt is vital that these are in place for the next event at the time hotel reservations are taken and commitments are made to exhibitors.

20

hotel room inventoryPart of the exhibitor housing process where the total hotel room inventory is reviewed; how many rooms on each night remain available within a room block.

20

hotel taxAlso known as room taxes; taxes applied to the daily price of a hotel/motel room.

13

house list (for mailing) A permission-based email list. 17

hub systemA system of connections arranged like a chariot wheel, in which all traffic moves along spokes connected to the hub at the center.

26

human resources issuesHuman resources is the department of a business or organization that deals with the hiring, administration, and training of personnel and issues.

31

hybrid budget Uses elements of the zero-based and the incremental budgets. 6

hybrid event Combines a physical audience with a remote audience. 23

hybrid modelUsed when an enterprise (event) has a need for more than one of the common models to strategically manage operations. Utilizing two or more linear models is common.

4

Hypertext Markup Language (HTML)

The current standard programming language used to describe the contents and appearances of web pages.

23

Imperial sytem

A system of weights and measures originally developed in England. Similar but not always the same as US standard units. Example of Imperial measures: Length: inches, feet, yards; Area: square feet, acres; Weight: pounds, ounces; Volume: fluid ounces, gallons; The Imperial System has been replaced by the Metric System in most countries (including England).

15

inbound (event)Refers to bringing exhibitors and visitors from outside the host organization’s country into an exhibition.

1

income statementA statement of revenues and expenses. Also known as a profit & loss statement.

7


496

GLOSSARY

incremental budgetPrepared using a previous period’s budget or actual performance as a basis, with incremental changes for the new budget period.

6

indemnificationPart of an agreement that provides for one party to bear the monetary costs, either directly or by reimbursement, for losses incurred by a second party.

28

indemnify

*A contract clause in which one party agrees to pay damages or claims that the other party may be required to pay to another. For example, if a hotel is sued by an attendee that is injured at an event due to the fault of the group, an indemnification clause might require the group to pay back the hotel. Some times the law requires one party to indemnify another even without a specific clause. Generally, the terms of the clause will be followed over the state law.

29

indirect air carrier (IAC)

A shipping option when shipping from within the US to an exhibition venue in the US; any person or entity within the United States not in possession of a Federal Aviation Administration air carrier operating certificate that undertakes to engage indirectly in air transportation of property and uses for all or any part of such transportation the services of a passenger air carrier.

26

indirect costsAlso called overhead or administrative costs, these are expenses not directly related to the event. They can include salaries, rent, and building and equipment maintenance.

6

indoor positioning system (IPS)

An indoor positioning system (IPS) is a system to locate objects or people inside a building using lights, radio waves, magnetic fields, acoustic signals, or other sensory information collected by mobile devices.

23

Industry Insights

The Industry Insights is an initiative of the Events Industry Council that promotes development and implementation of industry-wide accepted practices to create and enhance efficiency throughout the meetings, conventions and exhibitions industry by providing various tools for success.

3

industry standard metricProvides the ability to benchmark the exhibition’s results against other similar exhibitions in the industry; source is the Center for Exhibition Industry Research.

10

inflow*Money received by an organization as a result of its operating activities, investment activities, and financing activities.

7

informal evaluation method

Formative evaluation for exhibitions that provide direction to design, develop and/or improve the exhibition.

10

initiating phase

One of the five traditional elements that form the framework of most projects and helps to provide the template for developing a project management plan. During the initiating phase, the exhibition is formally established using key components.

5

inside salesThe sale of products or services by sales personnel who reach customers by phone or online, rather than traveling to meet them face-to-face.

19

installation and dismantle company (I&D)

*Firm that does I&D work. 26


497

GLOSSARY

insured One who has or is covered by an insurance policy. 29

integrated courier See freight forwarder. 26

Intellectual Property Rights (IPR)

Refers to the general term for the assignment of property rights through patents, copyrights and trademarks. These property rights allow the holder to exercise a monopoly on the use of the item for a specified period.

31

intelligent lightLighting instruments that can be computer controlled to move light around the room, and project color and patterns on screens, scenery, walls or floor.

24

interactive display*Exhibits that engage visitors through direct interaction with display components, working models, simulations, or multi-sensory or multi-media elements.

8, 24

international freight forwarder

*A third-party logistics provider which handles export shipments for customers using common carriers.

26

internationalization exhibition strategy to extend your show’s reach and brand internationally. 2

island booth/stand *Booth/stand space with aisles on all four sides. 15

issues modelUsed when an enterprise (event) is sensitive to issues that arise in its environment.

4

journal entryThe recording of financial data pertaining to business transactions in a journalwhere the debits equal credits.

7

kickbacks or commissions

A kickback is a payment made to someone who has facilitated a transaction or appointment, especially illicitly. Commission is a payment made to an individual or organization for bringing business to another individual or organization.

31

kiosk*1) Free-standing pavilion or light structure, often inside a facility, where printed or electronic information is available. 2) A small enclosure for ticket sales, information, etc.

24

knowledge center A designated area on the show floor that offers free education to participants.

8

lead (generated by exhibiting)

A sales prospect that exhibitors want to replenish their sales pipeline, bring in new and repeat customers, and generate sales revenue.

10

lead engagement technology

Technology that can track or enhance attendee engagement. 19

lead management system

System that tracks and manages sales leads (prospective customers) from generation of leads to their conversion into sales and long-term relationships.

20

lead retrieval unitThe physical device used to capture sales leads at an event, trade show or conference.

23

Leadership in Energy and Environmental Design (LEED)

LEED is green building. LEED, or Leadership in Energy and Environmental Design, is the most widely used green building rating system in the world.

9

lead-retrieval system*The process whereby exhibitors receive a potential customer’s contact information in a standardized manner. A system for capturing and following-up on leads generated at an exhibition.

19, 20, 23


498

GLOSSARY

learning pavilion A designated area on the show floor that offers free education to participants.

8

LED lightingStands for “Light-Emitting Diode.” An LED is an electronic device that emits light when an electrical current is passed through it.

24

legendReference containing indicators marking meaning/location of items on a map, graphic or illustration.

15

less than truckload (LTL)*Rates applicable when the quantity of freight is less than the volume of truckload minimum weight.

26

liabilityLegal responsibility. An obligation to pay an amount in damages. In a non-legal context, something that is a negative factor.

7

license feesAmount of money paid by an individual or business to a government agency for the privilege of performing a certain service or engaging in a certain line of business.

28

limitation of liabilityThe section in a contracted agreement that specifies the damages that one party will be obligated to provide to the other under terms and conditions stipulated in the contract.

28

linear booth/standA booth space generally arranged in a straight line with neighboring exhibitors on their immediate right and left, leaving only one side exposed to the aisle.

15

linear planningA category of strategic planning models that includes the vision, issues, alignment and scenario models.

4

line-item budget

A budget in which the individual financial statement items are grouped by cost centers or departments. It shows the comparison between the financial data for the past accounting or budgeting periods and estimated figures for the current or a future period.

6

line-of-sight*A line of vision from an observer’s eye (such as an audience member) to a distant point (such as a stage).

15

livestream Content delivered live over the Internet. 23

logistics The management of the details of an operation. 12

looping media *A continuously repeated segment of music, dialogue, or images. 24

lumen A measure of brightness. 24

maintenance schedule RFP should request a copy of this from the transportation company. 27

man-made disasterA disaster made by people rather than nature. For example, food poisoning, fire, acts of violence and demonstrations.

30

market segmentation*Categorization of people, organizations or businesses by professional discipline or primary areas of interest for the purposes of sales analysis or assignment.

16

marketing channelMethods used by exhibitors to promote their involvement with an exhibition.

10

marketing mixA set of controllable, tactical marketing tools that works together to achieve a company’s objectives.

17

marketing planA written document that details the necessary actions to achieve one or more marketing objectives.

4, 16, 17


499

GLOSSARY

marshaling yard*A holding area where trucks or buses check in and wait for instructions before delivering or picking up freight or passengers.

14, 26

master account*A record of transactions during an event where the resulting balance is paid directly by the group. May include room, tax, incidentals, food and beverage, audiovisual equipment, decor, etc. Also called MASTER BILL.

7, 28

material handling *Services performed by service contractors. 22

material handling contractor

Individuals who manage the elements required in the exhibit booth/stand that cannot be hand-carried into the facility.

22

material handling form

Governs the movement of the exhibit materials from the booth/stand to the site loading area and reloading onto the vehicle of the carrier responsible for the return shipment; includes exhibitor name, booth/stand number, exhibition name, number, types and weights of packaging units, name of company receiving the goods; name of carrier, delivery address and mode of transportation.

26

material handling service

Services that manage those items required in the exhibit booth/stand that cannot be hand-carried into the facility.

22

maximum floor plan“Maxed out plan” – drawing illustrating the maximum number of booths/stands that would be available for sale if all space were to be used.

15

media relationsRefers to the establishment and maintenance of relationships with identified media reporters, editors, publishers, broadcast producers, radio and television owners and managers.

17

meter (metre)Unit of length measurement in the metric system, equivalent to 39.37 U.S. inches.

15

metric system*A system of weights and measures, based on decimals, used throughout most of the world. Basic units are the gram for weight and the meter for length.

15

milestone The significant points in a project. 5

minimum rate The least amount of time (in hours) that workers are to be paid for. 27

missionDescribes the organization (or event) and tells how the organization will work toward its vision; indicates what is most important to the organization.

4

mitigation

Refers to a series of rules, regulations or guidelines that are in place and enforced to limit the possibility of a situation developing and should a situation occur, minimize the damage. It also includes awareness of the smallest detail so that if something out of the ordinary occurs, the outcome has a desired minimal effect on the exhibition/event.

30

mixer

*1) Audio unit by which sound signals from all sources feed into one system; allows for dissimilar inputs (microphone and line) to be combined and controlled into one output. See SOUND BOARD. 2) An informal get together to give members of a group an opportunity to meet one another.

24

mobile app A mobile app is a computer program designed to run on a mobile device such as a phone/tablet or watch.

23

mobile applicationSoftware that can be run on mobile devices, computers, networks and via Internet-based cloud services.

20

mobile polling Polling using text messages, mobile-Web based polling tools or Twitter. 23


500

GLOSSARY

mobile native application

A smartphone application that is coded in a specific programming language such as Java for Android operating systems.

23

Modified American Plan *A type of hotel rate that includes the price of the room and all meals. 28

monitoring and controlling phase

One of the five project management phases that constitute the foundation for most projects, including managing exhibitions. It is in place during both the planning and executing phases of the project plan. Monitoring the completion of tasks helps to ensure that the project remains on schedule and within the allocated budget. Controlling the progress of tasks also shapes the perceptions of the audience, stakeholders and leadership.

5

move-in *Dates set for installation of an exhibition, a meeting or other event. 21, 26

move-in/move-out costs Costs of moving in or out of a location. 28

move-out *Dates set for dismantling. Also Called TEAR DOWN. 21, 26

moving light Lights mounted to an automated yoke that can tilt and pan. 24

multi-event contract

type of group product generally available from participating carriers; allows the flexibility to add meetings/exhibitions throughout the duration of the contract and and includes zone fares and a discount off published fares.

27

multi-touch screen A type of touch-screen model that functions like a computer mouse. 24

music licensing*Control of the performance of musical compositions by the composers and authors through granting of a license to perform. Controlled by the copyright laws. See ASCAP, BMI, and SESAC.

24

natural disasterExample of an on-site crisis situation; tornadoes, blizzards, hurricanes and earthquakes.

30


A cross-mobile platform allowing quick, standardized exchange of contact information, as well as micro-payment and mobile commerce capabilities.

19, 20, 23

negotiations Discussion aimed at reaching an agreement. 31

net square feet/meters (nsf/nsm)

*Actual amount of salable space used by exhibit booths/stands which excludes aisles, lounges, registration areas, etc. See GROSS SQUARE FEET/METERS (GSF OR GSM).

15

new product program Amplify a key attendee benefit (new products). 18

no-freight aisleAn aisle on the exhibit floor used as a thoroughfare which must remain completely clear of all freight.

15

non-assignment

Assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. However, in the case of assignment, the consent of the non-assigning party may be required by a contractual provision.

28

non-linear planningA category of strategic planning models that includes the systems, real-time and hybrid models.

4

non-selling eventExhibitions of goods and services that are displayed to advance the sales process.

2

not-for-profit organization

An organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization’s directors (or equivalents) as profit or dividends.

12


501

GLOSSARY

occurrence-based policyWill pay a covered claim regardless of when the claim is reported, as long as it occurred during the period the policy covers; the industry standard.

29

offer

*A promise, proposal or other expression of willingness to make and carry out a contract under proposed terms with another party which has the ability to accept it upon receiving it. Space and rent proposal from a facility. It may be in the form of a contract or license agreement.

28

official carrier*Organization appointed by show management to provide services such as set-up and tear-down of exhibit booths and to oversee labor, material handling and loading dock procedures.

27


*Organization appointed by show management to provide services such as set-up and tear-down of exhibit booths and to oversee labor, material handling and loading dock procedures.

6, 11, 15, 21, 22, 14

on clock scheduletimetable system under which public transport services run at consistent intervals, as opposed to a timetable that is purely driven by demand and has irregular headways.

27

on-site lifting contractor See material handling contractor. 22

on-site material handling

Process includes directing the flow of traffic to the dock and inside the venue, offloading or loading of vehicles, delivery by forklift or manually to and from booth/stand, and the pickup, storage and return of empty packaging.

26

on-site registrationRegistration takes place at the site of the exhibition. Onsite fees are higher and encourage registrants to take advantage of reduced fees in the registration process.

6

operations manager*Individual in charge of performing the practical and detailed work of a program.

22

opt-in

*An email marketing campaign that only sends messages to users who have requested (or opted-in) to receive specific types of information. Email conference reminders and newsletters are examples of opt-in email marketing campaigns based upon permission marketing.

17

optional or discretionary service

*Activities other than those included in the formal agenda which are optional and often require the payment of an additional participation fee done at the guest’s discretion.

22

opt-out*Allowing those who have not given advance permission an easy way to be removed from the list.

17

original equipment manufacturer (OEM)

Can be found at small exhibitions for best customers that permit the biggest end-users to speak directly with a component supplier.

2

OSC account executiveOfficial service contractor account executive; meets with exhibition organizer onsite to review last minute details, updates and changes.

21

outboardingPractice of conducting sales meetings or events during an exhibition without the approval of the exhibition organizer.

31

outbound (event)Refers to developing a global business by taking an event and its exhibitors to other geographic markets and/or developing a new portfolio of exhibitions outside the host organization’s country.

1

outflow*Money paid out by an organization as a result of its operating activities, investment activities, and financing activities.

7


502

GLOSSARY

outsource*To subcontract a task or responsibility to a supplier to handle some aspect of an event, instead of using in-house staff.

21

outsourcing*To subcontract a task or responsibility to a supplier to handle some aspect of an event, instead of using in-house staff.

11

overheadOverhead is an accounting term that refers to all ongoing business expenses not including direct labor or materials used to create a product or service.

6

overrides Use one’s authority to reject or cancel (a decision, view, etc.). 31

overstating promises Not keeping a commitment that was given. 31

pavilion

*1) A designated area within the event highlighting a special product category for marketing and exposure. 2) A group presentation of different entities (such as within a single a country) for the purpose of generating collective impact.

1

pay-for-cateringAttendees can buy their food and beverage in the exhibit hall or just outside.

25

pay-to-play opportunityMoney is exchanged for services or the privilege to engage (play) in certain activities.

18

peninsula booth/stand *An exhibit with aisles on three sides. 15

per-diem rate *Per day. Daily allowance for food, lodging, and incidental expenses. 14

per-event aggregate endorsement

An endorsement to a Commercial General Liability policy, which extends separate liability limits to each event produced throughout the year as opposed to one annual limit.

29

performance benchmarkHelps to compare an exhibition’s performance to previous years’ results or results from other events.

10

performance/function budget

Focuses primarily on the functions and outcomes for each item and is useful in developing the cost of an activity.

6

periodic review and modification of terms and conditions

Items included within a contract in which you are agreeing upon. 28

perishable productA product that is subject to decay, ruin, or destruction. Destinations consider their exhibitions and events venues as a perishable product, much like hotels consider their rooms that go unsold on any given night.

12

per-loss basis Each loss has a separate deductible. 29

permits An official document giving someone authorization to do something. 28

personal sellingThe activity of speaking to people, either directly or on the phone, to try and persuade them to buy something.

19

PESTAn acronym for political, economic, social, and technological – external factors that commonly affect business activities and performance.

16

Physical Protection System (PPS)

A collection of system elements, combined to achieve protection according to a plan. The classical physical protection systemincorporates two substantial surrounding fences with a clear zone between and includes many high-tech sensors and interconnecting communications.

30

pick-up within the room block

*Number of facility guest rooms actually used out of a room block. 20


503

GLOSSARY

pipe and drape

Refers to pipe (aluminum or steel), fixed or adjustable telescoping vertical uprights supported by a weighted steel base, and adjustable telescopic or fixed horizontals that provide a drape support frame with removable drape panels.

1

place One of the four P’s, distribution mediums. 17

planning phase

One of the five traditional elements that form the framework of most projects and helps to provide the template for developing a project management plan. The planning phase follows the formal affirmative decision for the management of an exhbition.

5

post-contract(ing) document

A contract addendum, states and confirms all of the deliverables and the required in puts from the sponsor along with a timeline.

18

post-convention meeting

*Post-Conference Meeting at the primary facility at which an event occurred just after it has ended. Attendees generally include the primary event organizer, representatives of the event organizer/host organization, department heads at the facility, other facility staff as appropriate, and contractors. The agenda focuses on evaluating the implementation of the event and collecting data needed to completing an Industry Insights Post-Event Report. It often includes a final review of bills with accounts payable.

21

post-draw process

The most challenging period exhibtion sales process where sales come from new exhibitors and previous exhibitors that did not secure space during the space draw; typically assigned on a first-come, first-served basis.

19


*The industry preferred term for a report of the details and activities of an event. A collection of post event reports over time will provide a comprehensive history for an event. The industry accepted practice is to use the Industry Insights Post-Event Report format, which can be found at the Convention Industry Council web site.

7, 11, 14

post-exhibition meeting

Post-Conference Meeting at the primary facility at which an event occurred just after it has ended. Attendees generally include the primary event organizer, representatives of the event organizer/host organization, department heads at the facility, other facility staff as appropriate, and contractors. The agenda focuses on evaluating the implementation of the event and collecting data needed to completing an Industry Insights Post-Event Report. It often includes a final review of bills with accounts payable.

10

post-exhibition surveyA valuable tool to assess exhibitor satisfaction and to identify ways to improve future exhibition.

10

power buyerGroup that demands advance notice on new products. They do not want to be surprised by a new product being introduced by one of their major suppliers at an industry exhibition.

2

pre-convention meeting

*A Pre-Conference Meeting at the primary facility at which an event will take place just prior to the event beginning. Attendees generally include the primary event organizer, representatives of the event organizer/host organization, department heads at the facility, other facility staff as appropriate, and contractors. The agenda focuses on reviewing the purpose and details of the event and making final adjustments as needed.

21


504

GLOSSARY

predictive analyticsPredictive analytics is the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends.

23

pre-exhibition surveyUsed to test a new idea, address an immediate issue or problem, or to benchmark event brand perceptions before the exhibition in order to assess change in that perception by utilizing a post-exhibition survey.

10

preferred providerA provider that is given more consideration for securing a contract than other providers; generally the facility has a positive relationship with this provider.

13

preferred provider listA list, assembled by some facilities, that contains contact information for several specialty contractors by specific categories with whom they prefer to work.

22

preparedness

Based on the theory of planned avoidance. The exhibition organizer must do everything possible during planning and execution of an exhibition/event to reduce the risk occurrence. Preparedness can minimize, transfer, or simply absorb the occurrence because to employ any other strategy may be too costly.

30

presentation

The phase of the sales cycle where the sales person will establish rapport with the prospect to help build trust, determine needs, illustrate benefits through specific examples and explain and translate the features of the exhibition.

19

prevailing party attorney’s fees

Many contracts, leases, mortgages, deeds of trust or promissory notes provide that the “prevailing party” shall be entitled to recovery of attorney’s fees and costs if legal action must be taken to enforce the agreement.

28

priceOne of the four P’s, setting registration fees, booths rental fees, sponsorships, advertising that is sold or sponsored, etc.

17

primary data Is collected as the result of posing specific questions. 4

prioritiesSomething that is more important than other things and that needs to be done or dealt with first.

4

priority-point criteria*A system for assigning points to exhibiting companies to determine which firms will be allowed to select booth/stand space first for the next event.

19

priority-point system*System of assigning points to exhibiting companies to determine the order in which firms will be allowed to select booth/stand space first for the next event.

15, 19, 20

private eventPrivate events are held by companies for their staff, clients or stakeholders.

2

private management company

Staffs the convention center and receives a management fee with the potential for incentives based upon criteria negotiated between the public ownership and the company.

13

product One of the four P’s, the exhibition or event. 17

product demonstration When a product is demonstrated to potential customers. 8

product theater Offer informative sessions focusing on particular products. 8


505

GLOSSARY


*Companies or individuals specialized in organizing events on behalf of a client organization. Not to be confused with DMC (Destination Management Company).

11, 12, 14

professional ethicsProfessionally accepted standards of personal and business behavior, values and guiding principles.

31

professional membership association

A professional association (also called a professional body, professional organization, or professionalsociety) is usually a nonprofit organization seeking to further a particular profession, the interests of individuals engaged in that profession and the public interest.

3

profit-based Revenue exceeds expenses. 6

program *Schedule of events, giving details of times and places. 4

projectA planned piece of work that has a specific purpose (such as to find information or to make something new) and that usually requires a lot of time.

4, 5

project charter

Provides the purpose of the exhibition/event, the measurable objectives, related success criteria, a project description and requirements, risks, a summary milestone schedule, a summary budget, approval requirements, identification of the project manager and that person’s responsibilities and specifies the sponsor and/or authority for this event.

5

project leadership The primary direction-setter of a project. 5

project managementThe application of processes, systems knowledge, techniques and tools to project planning and activities in order to control projects and programs and meet project and program requirements.

4, 5

project management model

A methodology used for project management. 5


Used to guide a specific project from concept to delivery; it focuses on the project team capabilities, resources and deliverables.

4, 5

project manager (PM)

A relationship manager, managing relationships between project team members, between those members and functional units within the enterprise, between the team and senior management, and between the team and project stakeholders, whether internal or external to the exhibition host organization.

5

project plan

A formal, approved document used to guide both project execution and project control. Its primary use is to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost and scheduled baselines.

5

project scheduleA mutually agreed upon document outlining deliverables associated with the project and has a vital role in the successful delivery of a project; a timeline.

5

project sponsor The project originator, stakeholder, manager or customer. 5

projection systemA projected coordinate system (PCS) is defined on a flat, two-dimensional surface.

24

promotionOne of the four P’s; *1) Publicizing an event. See PUBLICITY. 2) An advancement in rank or position.

17


506

GLOSSARY

property claim adjusterSomeone who investigates insurance claims to determine the extent of the insuring company’s liability. Investigate property claims involving damage to structures.

29

proposal The response to the RFP. 22

prospect list (for mailing)

A list of potential attendees, guests, buyers or exhibitors. 17

prospectingTo identify and qualify potential attendees, guests, buyers or exhibitors through referrals, advertising, direct mail, telemarketing and other tactics.

19

protected classA protected group or protected class is a group of people qualified for special protection by a law, policy, or similar authority.

28

public exhibition (consumer show)

*Exhibition that is open to the public, usually requiring an entrance fee. Also referred to as Business-to-consumer exhibitions (B2C).

2

publicity*A media campaign, normally consisting of a series of public notices and advertising activities, aimed at ensuring maximum attendance by focusing attention on an event.

17

public relations (PR)*Presentation of an event via the media or other outlets, stressing the benefits and desirability of such event.

17

public service announcement (PSA)

Advertisement carried free of charge by mass media to publicize a message in public interest.

17

publication circulation audit

Used to to compare and evaluate advertising opportunities, done by a third-party.

10

published rateRack rates are commonly called published rates, see definition for rack rate.

28

purpose Defines the organization’s reason for existence – the why of its existence. 4

purpose statementA purpose statement is a declarative sentence which summarizes the specific topic and goals of a document.

4

purpose-built convention center

Facilities expressly designed to host conventions and exhibitions. 13

push promotionMarketing strategy where businesses attempt to take their products to the customers.

18

QR codeA machine-readable code consisting of an array of black and white squares, typically used for storing URLs or other information for reading by the camera on a smartphone.

20

qualifying prospects*The act of determining a person’s authority or financial ability to purchase a product or service or perform a specific function.

19

qualitative (research)*Descriptive information that is a record of what is observed, presented in narrative by the respondent.

4, 10

quantitative (research)*Information that is represented numerically so you can assign ranks or scores, or determine averages and frequencies.

4, 10

quick response (QR) code

A type of 2D bar code that is used to provide easy access to information through a smartphone.

23


507

GLOSSARY

quite enjoyment

A Covenant that promises that the grantee or tenant of an estate in real property will be able to possess the premises in peace, without disturbance by hostile claimants. Quiet enjoyment is a right to the undisturbed use and enjoymentof real property by a tenant or landowner.

28

rack rate *Facility’s standard, pre-established guest room rates. 28


A tracking system that uses bar codes to track attendees. 19, 20

radio traffic Amount of communication taking place on two-way radios. 21

reach (in advertising) How many people potentially saw or heard an ad. 1

reactive designReactive websites (adaptive) displays a website especially designed for the device type the website is being viewed on.

23

real-time modelA dynamic process that responds quickly to changes in the business environment.

4

rear-projection *Video or image presentation where the screen is between the viewer and the projector.

24

re-base liningInformation that has either developed or changed sufficiently to warrant updating assumptions, issuing a revised schedule, revising the WBS or otherwise altering the project plan.

5

recommended providerProviders that are recommended by the facility when asked for a list of potential providers.

13

recycledTo process materials or substances (such as liquid body waste, glass, or cans) in order to regain material for human use.

9

refund policy

Policy that determines the amount that may be returned to attendees/exhibitors under certain conditions agreed to by the exhibition organizer and attendees/exhibitors. For example, some organizations allow a full refund up until a certain date, while others charge an administrative fee and refund the balance after the fee is deducted.

6

registration fee*Amount payable for attendance at a conference; may vary according to level of participation or type of membership.

6

registration form*Form used by an event attendee to sign up to attend an event. It is used to collect important information about the attendee and his/her intended participation in the event.

10

relationship selling

Building a personal relationship with potential and current exhibitors to better understand their needs and desires; the sales technique which focuses on the interaction between the buyer and the salesperson rather than the price or details of the product.

19

relocation/walking of guests

*Guest holding confirmed sleeping room reservation is denied accommodations at the hotel where the reservation is held upon their arrival, and is relocated to another hotel.

28

removal of personsThe act of removing. a removal from one place, as of residence, to another. the distance by which one person, place, or thing is separated from another: to see something at a remove.

28

rental fees Payment for renting. 28


508

GLOSSARY

replacement valueThe amount that an entity would have to pay to replace an asset at the present time, according to its current worth.

29

replicationAn alternative way to manage an event where the event is replicated in another location. This can be accomplished by a bi-coastal basis or a series of regional events.

2

reportingCreating a “paper trail” that documents the details of the crisis, and efficient and timely reporting of the incident to the proper authorities, such as police, fire, and medical experts.

30

representative sampleAccurately represents the make-up of various subgroups in an entire data pool.

10


*A document that stipulates what services the organization wants from an outside contractor and requests a bid to perform such services.

11, 14, 22

responseIncludes actions to be taken (or purposefully not taken) during a situation and immediately following to protect the attendees, exhibits, and assets, and to minimize any damage, i.e., liability for property damage.

30

response planning practices

Includes actions to be taken (or purposefully not taken) during a situation and immediately following to protect the attendees, exhibits, and assets, and to minimize any damage, i.e., liability for property damage.

30

response rate The number of people who responded to an offer. 17

responsive web designResponsive websites are websites that automatically resize to the screen size the website is being viewed on.

23


*1) Net Profit divided by Net Worth. A financial ratio indicating the degree of profitability. 2) Net benefits divided by the full loaded meeting costs.

1, 4, 7, 19

return on objectives (ROO)

Measurement of the benefit received for participating at an event based on pre-set objectives for success.

7

revenue guarantee Contracted minimum amount that will be expended for food and beverage. 9, 28

reverse engineeringThe reproduction of another manufacturer’s product following detailed examination of its construction or composition.

24

rigging*1) The process of attaching the cable on a crane to a piece of machinery or equipment. 2) The process for hanging materials or signs. 3) The structure to which hanging materials are attached.

15

right of accessAccess Right Law and Legal Definition. Access right is the right of a property owner to have access to his/her property. An owner of a property is having a right to enter or exit his or her property.

28

right-to-work law *Where joining a union is not a condition of employment. 22

risk avoidanceAvoidance of programs and activities that are potentially dangerous or could cause justification for a potential insurance claim.

29

risk managementRecognizing the possibility of injury, damage or loss, and having a means to prevent it or provide insurance.

29

risk management planning

The process of creating a plan that a project manager prepares to foresee risks, estimate impacts, and define responses to issues.

5

risk reductionA decrease in the total amount of uncertainty present in a particular situation.

29


509

GLOSSARY

risk retentionThe action of taking a specific risk, which is detailed in the insurance contract, and pass it from one party (the insured) to another party for a premium (the insurer).

29

risk transferPart of the risk management program/process and contractual documents that are specific to the exhibition/event.

29

ROI metrics Metrics that illustrate the value of exhibitions. 1

room block*Total number of sleeping rooms that are utilized and attributable to one event.

20

room block attrition

*The difference between the actual number of sleeping rooms picked-up (or food-and-beverage covers or revenue projections) and the number or formulas agreed to in the terms of the facility’s contract. Usually there is an allowable shortfall before damages are assessed.

28

room block washOccurs when too many rooms are set aside initially and they go unoccupied.

20

rooming list

A list, whether printed or electronic, by which an event organizer and/or their designates (e.g. a housing bureau) delivers multiple reservations to a hotel or other housing facility. Often the information contained in a rooming list is originally gathered through attendees’ completed Housing Forms.

20

rules and regulations

*A set of specifications for exhibit construction endorsed by all major exhibit industry associations. Also refers to the individual additional rules which may be adopted by event management. Guidelines are provided by the International Association of Exhibitions and Events.

28

run of pressPlacement of an advertisement in a newspaper or magazine left to the discretion of the publisher.

6

run-of-the-house guestroom rate

*1) Rooms given at random according to availability when the reservations are made. 2) Flat rate for which a hotel or motel agrees to offer any of its available rooms (with the exception of suites) to a group. Final assignment of rooms is at the discretion of the hotel.

28

sales cycle

The course of time between the initial contact being made with a customer, the identification of services or goods to be obtained, the acceptance of the intended purchase, and the transaction that completes the sale.

19

sales managementInvolves planning, implementation and control of a larged organized sales effort.

19

sales practicesClearly defining and communicating a code of ethics and code of conduct for selling will help your business meet its ethical selling obligations.

31

sampling*A research method based upon selecting a portion of a population for study.

10

satellite service area

A space containing a counter(s) for the on-site use of exhibitor-appointed contractors and specialty contractors, apart from the Official Service Contractor, for the convenience of exhibitors who are using the services of such contractors.

22


510

GLOSSARY

scenario modelUsed when an enterprise (event) is influenced significantly by outside forces.

4

scope statement The definition of what a project will and will not cover. 5

secondary data

Is usually gathered as the result of mining other sources of relevant information, such as existing reports, organizational records, information gathered over time about an exhibition including patterns of attendance or registration, and external data from other sources.

4

second-tier destinationA city where the space limitations of the convention center, the hotels, or the air lift, make the city more appropriate for smaller meetings and events.

12

selling event

Exhibitions of finished goods at which orders are written and commitments made by buyers for future product delivery, e.g., apparel, gifts, promotional products, hardware, and housewares. The buyers usually represent retail stores that sell to their customers.

2

senior managementGenerally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation.

4

sequential numberingBooths/stands are numbered sequentially down each side (100 series down the left side, 200 series down the right side).

15

serpentine numberingBooth/stand numbers wind up one side of the aisle and wind down the other.

15

service fees, resort fees, surcharges, and cost increases

Various fees that could be included in a contract. 28

service liaison or executive

Commonly assigned to specific exhibitors in order to address their questions and needs efficiently.

22

set-up and tear-down time

*1) Timing in which a function room is arranged. 2) Erecting displays, installation, or, articles in their assembled condition. 3) Mixers, fruit, and glassware accompanying a liquor order.

28

set-up chargeThe result of function space setups that go beyond the established minimum standard.

28

Seven (7) P’s Marketing Mix

Once you have developed your marketing strategy, there is a “Seven P Formula” you can use.

17

shell scheme Fittings and fixtures are additional items that attach directly to a stand. 22

show management office

A remote office work area used by show management that is stocked with basic supplies, printing capabilities, exhibition files and other resources necessary to conduct business.

21

shuttle contractorProvides transportation for participants; usually by bus or van on a continuous basis for a certain period of time.

27

signs and displays

*The fee assessed for the difference between the actual number of sleeping rooms picked-up (or food-and-beverage covers or revenue projections) and the number or formulas agreed to in the terms of the facility’s contract. Usually there is an allowable shortfall before damages are assessed.

28


511

GLOSSARY

single occupancy*A sleeping room occupied by one person. The room may include one or more beds.

28

single/double occupancy A sleeping room occupied by one person and one full-size bed. 28

single-day registration Registration for only one day of the exhibition. 6

single-touch screenA type of touch-screen model that allows for pinch, rotation and zoom functions, e.g., similar to a tablet computer or an iPad.

24

site inspection*In-person on-site review and evaluation of a venue or location for an event.

13, 14

site selection *Choosing a venue for an event. 14

site-selection processDetermines the suitability of a venue, both the destination and facilities within the destination, to host an event.

14

site-selection team *Team responsible for choosing a venue for an event. 14

situational analysis

A systematic collection and evaluation of past and present economical, political, social, and technological data, aimed at (1) identification of internal and external forces that may influence the organization’s performance and choice of strategies, and (2) assessment of the organization’s current and future strengths, weaknesses, opportunities, and strengths.

16

sloganA word or phrase that is easy to remember and is used by a group or business to attract attention.

4

smart badgeConference badges to collect data on people’s interactions and visualize the social network.

23

SMART goals

To make sure your goals are clear and reachable, each one should be: Specific (simple, sensible, significant). Measurable (meaningful, motivating). Achievable (agreed, attainable). Relevant (reasonable, realistic and resourced, results-based).

4

SMART objectiveAn acronym for a process of setting specific, measurable, achievable, realistic and timed goals.

5

social host liability

Legal term and area of law that deals with the liability of a person who supplies liquor to a guest. Under social host liability laws, the host shares any liability incurred as a result of actions by an intoxicated guest to whom he or she has served liquor.

28

social media

Forms of electronic communication (as Websites for social networking and microblogging) through which users create online communities to share information, ideas, personal messages, and other content (as videos); can be displayed on monitors that auto-refresh, so the screen is continually updated to current exhibition messages.

17, 24

sockets Another term used in the U.S. referring to electrical outlets. 22

space-draw process*The process of assigning exhibit space for the next event based on the exhibitors’ active involvement in the process.

19

special limitationsA special limit of liability on your insurance policy is a limitation within your policy wording that states how much the maximum will be paid for certain predefined items.

28


512

GLOSSARY

specialist agent Someone who sells exhibit space for only one industry sector. 1

specialty contractorA contractor selected by show management that provides additional services or products the Official Service Contractor does not provide.

10, 22

sponsorship agreement*1) Donated financial or material support, usually in exchange for recognition. 2) Paid opportunity for entity or an exhibitor to increase its visibility at the event.

27

sponsorship fee *Fee for entity or an exhibitor to increase its visibility at the event. 6

stakeholderPersons, groups or organizations who affect or may be affected by the plans, actions or activities of an organization; they are somehow invested in the organization.

4

standard metricsUnit of measure which uses units such as meters and grams. In the U.S., the Imperial System is used, where things are measured in feet and inches.

10

statement of activitiesFor not-for-profit organizations, it shows financial activity over a period of time, reporting revenue generated, expenses incurred and results in net profit/loss. It is used throughout the exhibition’s life cycle.

7

statement of cash flowFinancial statement that shows how changes in balance sheet accounts, and income cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.

7

statement of financial position

For not-for-profit organizations, a snapshot of the organization at a given point in time that reflects the assets owned, liabilities owed and residual net assets.

7

static lightingLights mounted in a fixed position; used to highlight grahics or kiosks, projecting patterns or logos onto surfaces, and brightening or tinting a specifc area.

24

statistics*Quantitative details of an event (number of attendees, sleeping rooms, etc.).

10

strategic enterprise management (SEM)

The key element of the results-oriented management style that includes four elements known as the “The Four A’s”. Analysis of the organization’s resources, initiatives, capabilities and products or services; Allocation of resources; Assessment of activities; Achievement of the organization’s mission and goals.

4

strategic plan *Long range plan of action for a company or organization. 4

strategic planning

An organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization’s direction in response to a changing environment.

4

strategic planning process

Describe what process was used to devise the plan, who was involved, the structure and suggestions for future processes.

4

stream (or streaming)*The software that makes Webcasting work. These “stream” audio and video from a central source, or media server, to recipients on their personal computers.

24


513

GLOSSARY

street-style numberingNumbering method patterned after a city street, with even numbers on one side, odd numbers on the other.

15

strict liability Liability that does not depend on actual negligence or intent to harm. 28

sub-block contractContracts that are drawn between the exhibitor and the hotel directly for a room block.

20

subcontractor*1) An individual or business, which contracts to perform part or all of the obligations of another’s contract. 2) Company retained by a contractor to provide services to exhibitors or event management; outsourcing.

22

subject matter or goods and services

Goods are items that are tangible, such as pens, salt, apples, and hats. According to economic theory, consumption of goods and services is assumed to provide utility (satisfaction) to the consumer or end-user, although businesses also consume goods and services in the course of producing other goods and services.

28

subsidiesA sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

27

substitution of namesThe act, process, or result of substituting one thing for another. How to use substitution in a sentence.

28

suitcasing*When a company tries to sell its product or service on the show floor without the permission or consent of the event’s management.

20, 31

summative evaluationOften called the post-show analysis, it is a process that involves an in-depth look at all aspects of planning and production after an event’s completion.

5, 10

supply-and-demand economics

Supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy.

1

surcharges An additional charge or payment. 27

sustainability/sustainable

Of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged.

9, 11

sustainable eventsSustainable event management is the process of integrating environmental and social responsibility issues into event planning.

9

SWOT analysis

Stands for strengths, weaknesses, opportunities and threats. Helps to guide the exhibition organizer when taking a fresh look at the total exhibition layout and to determine if the plan is practical; will identify any need for improvements or changes.

15, 16

systems model

Based on the theory that organizations are systems where all parts are connected and each system is unique. The enterprise creates a process that fits the various units within the enterprise; is a shared analytic and decision-making model.

4

tagline A catchphrase or slogan, especially as used in advertising. 4

targeted attendees A group of people most likely to become attendees. 10

targeted outcomesOutcomes that have a measurable benefit and will be used to gauge the success of the project.

4


514

GLOSSARY

telemarketingThe marketing of goods or services by means of telephone calls, typically unsolicited, to potential customers.

19

temporary import bond *The surety covering articles imported into a country on a temporary basis, generally in lieu of paying import duties and/or taxes. The fee for the bond is non-refundable in most cases.

26

tender In the PCO RFP, the response to the RFP is called a tender. 11

tenderer In the PCO RFP, the respondents to the RFP are called tenderers. 11

third-party event organizer

An outside organizer who plans and/or manages an exhibition for the exhibition owners or hosts.

2

third-party fidelity bond Protects exhibitors from theft of goods by a third-party. 29

third-party management company

An outside company that exhibition management and other production elements may be outsourced to.

21

thought-leadership sponsorship

Way to position the company as a trusted, expert resource with the ulitmate goal of serving customer needs in a manner that reaches beyond the sale of a specific product or service.

18

tiered pricing A rate structure in prices are packaged into separate pricing tiers. 19

touch pointAny time a potential customer or customer comes in contact with your brand–before, during, or after they purchase something from you.

18

touch screenAllows attendees to interact directly with the screen to change and select content.

24

trade fair *An international term for an exhibition. 1, 13

trade fair bond

A document provided in the name of the exhibition organizer by the official international freight forwarder/customers broker that allows goods to enter a country without payment of duties and taxes. Within a specified period of time, the document also allows the import status of the goods to be changed from temporary to permanent, in the event the exhibitor finds a buyer for the goods.

26

trade fair bond fee A temporary import bond. 26

trade show*An exhibition of products and/or services held for members of a common or related industry.

2

trademark infringementThe unauthorized use of a trademark or service mark (or a substantially similar mark) on competing or related goods and services.

31

traffic flow Interactions between show floor/event attendees and trade show booths. 15

transparency The quality of being open and honest, not secretive. 4, 6, 11, 31

travel group10 or more individuals traveling from various organizations and flying to a common destination.

27

travel rewardAllows the exhibition organizer to offer discounts on services and products to attendees and exhibitors.

27

truss*1) A frame to carry the room of a tent. 2) A structure of steel bars used to suspend lighting or other technical equipment over a stage. 3) To tie or bind something tightly.

22

truss rig*A structure of steel bars used to suspend lighting or other technical equipment over a stage.

24


515

GLOSSARY

umbrella liability policyA type of liability insurance available to individuals and companies protecting them against claims above and beyond the amount covered by their primary policies or for claims not currently covered.

29

uncontrolled media message

Includes publicity, news advisories, press releases, public service announcements and video news releases; there is little or no control over how the message is ultimately constructed and presented therefore the publicity can be incorrect or negative.

17

underlying assumptionThe stakeholder’s values, ideals or concepts; they frame the way a strategic planning process takes place.

4

underwrite To accept financial responsibility for. 27

unfair advantageA subjective term that is measured by a standard of proper conduct for persons in similar positions. Unfair generally means unjust, and typically involves acts deemed unethical.

31

union jurisdiction

1. Crafts such as crane operating, driving, welding, covered by a specific national or international union. 2. Group of employees which a trade union claims to represent. Jobs which a trade union claims should be filled by its members.

28

union steward

A union steward, also known as a union representative or shop steward, is an employee of an organization or company but is also a labor union official who represents and defends the interests of his or her fellow employees.

22

unique selling proposition (USP)

A brief statement to the consumer by the seller stating why the consumer should buy the seller’s product or service.

19

unique value proposition (UVP)

Also Unique Selling Proposition, a clear statement that describes the benefit of your offer, how you solve your customer’s needs and what distinguishes you from the competition.

16

unit upgrades and repairs

RFP should request policy on unit upgrades and repairs for the transportation company.

27

upcycled To reuse (discarded objects or material) in such a way as to create a product of a higher quality or value than the original.

9

utility grid The sources of electrical, air and plumbing. 15

value propositionA business or marketing statement that summarizes why a consumer should buy a product or use a service.

18

value-added tax (VAT)*A tax that is added to a product at each step of the manufacturing and marketing process reflecting value which has been added to the product by processing.

6

variable costExpenses that vary based upon various factors, such as the number of attendees.

6, 7

venue*1) Site or destination of meeting, event or show 2). Location of performance such as hall, ballroom, auditorium, etc.

14, 27

venue-based appApps created specifically for individual convention centers that are then passed on to exhibitor organizers free-of-charge.

23

vertical exhibitionAn exhibition at which the products or services being displayed represent one element of an industry or profession.

2, 15


516

GLOSSARY

verticalizationAn alternative way to manage an event where a smaller event is created out of a mega horizontal event.

2

vicarious liabilityA situation in which one party is held partly responsible for the unlawful actions of a third party.

29

video monitor

A video monitor also called a broadcast monitor, broadcast video monitor, broadcast reference monitor or just reference monitor, is a display device similar to a television set, used to monitor the output of a video-generating device, such as playout from a video server, IRD, video camera, VCR, or DVD player.

24

video news release (VNR)

A video segment made to look like a news report, but is instead created by a PR firm, advertising agency, marketing firm, corporation, or government agency.

17

virtual reality

The computer-generated simulation of a three-dimensional image or environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment, such as a helmet with a screen inside or gloves fitted with sensors.

23

vision

Lays out the long-term results of an organization’s efforts. It is an inspirational statement that describes the outcomes of the organization’s strategic initiatives. It may contain a number of different outcomes depending upon the work that is undertaken.

4

vision model

The linear planning model commonly used by small organizations that offers a three-to-five year plan. Based on a vision communicated by senior management and identifies the purpose and mission of the organization.

4

visitorsA person visiting a person or place, especially socially or as a tourist or to a trade show.

1

wayfindingThe ways in which people orient themselves in physical space and navigate from place to place.

23

wearable solutionsWearable solutions or referred to as wearable technology are blanket terms for electronics that can be worn on the body, either as an accessory or as part of material used in clothing.

19

web based appsIs a client–server computer program which the client (including the user interface and client-side logic) runs in a web browser.

23

WeChatIs a Chinese multi-purpose messaging, social media and mobile payment app developed by Tencent.

23

“what if” analysis

A way to calculate registration and booth/stand fees. The purpose of this exercise is to determine what would happen if the projected number of attendees or the projected number of booth/stands feel short of actual experience and what impact that would have on the budget.

6

white label softwareDeveloped by one company to be distributed to other businesses that customize its appearance (not core implementation) and market it as their own software “powered” by the developing company.

23

Wi-FiThe name of a popular wireless networking technology that uses radio waves to provide wireless high-speed Internet and network connections.

24


517

GLOSSARY

work breakdown structure (WBS)

The visual display and identification of all tasks to be completed during a project. Complex tasks are broken into smaller tasks to accurately estimate time and costs.

5

workers compensation policy

A system whereby an employer must pay, or provide insurance to pay, the lost wages and medical expenses of an employee who is injured on the job.

29

zero-based budget*The process of building a budget without benefit of a previous year’s budget.

6

zone fare Special group fares. 27


519

WORKS CITED

519

Preface

“Events Industry Glossary.” Events Industry Council. 2011. Web. 21 November 2018.

Chapter 1 – Industry History & Overview

Morrow, Ph.D., CEM, CAE, Sandra and Dallmeyer, Robert. The Exhibition Industry: The Power of Commerce, 2003

Center for Exhibition Industry Research. CEIR Index Report: An Analysis of the 2016 Exhibition Industry and Future Outlook, 15th ed. Dallas: CEIR, 2017. Print.

“The Changing Environment of Exhibitions, PE 3.11.” Center for Exhibition Industry Research. Nov. 2016. PDF file.

“China GDP Annual Growth Rate.” Trading Economics. 2012. Web. 1 Feb. 2013.

“Exhibitions Attract Market of Visitors with Buying Authority, ACRR 1130.11.” Center for Exhibition Industry Research. Jun. 2011. Web. 1 Feb. 2013.

“Exhibitions Attract New Prospects, ACRR 1120.11.” Center for Exhibition Industry Research. Jun. 2011. Web. 1 Feb. 2013.

Morrow, CEM, CAE, Ph.D., Sandra L. and Robert Dallmeyer. The Exhibition Industry: The Power of Commerce, Cherbo Publishing Group, Inc. 2003.

“The Role and Value of Face-to-Face.” Center for Exhibition Industry Research. Jun. 2011. Web. 19 Jul. 2012.

“The Spend Decision: Analyzing How Exhibits Fit into the Overall Marketing Budget, MC 47.” Center for Exhibition Industry Research. PDF file. 2016 & 2017.

Chapter 2 – Exhibitions Defined

Center for Exhibition Industry Research. Exhibition Industry CENSUS 2015. Dallas: CEIR, 2015. Print.


McKinley, William. “The Last Speech of William McKinley.” PBS, America 1900. n.d. Web. 15 May 2013.

Chapter 3 – Careers In The Exhibitions and Events Industry

Friedman, Thomas L., The World Is Flat: A Brief History of the Twenty-first Century, 2005.

Hospitality, Tourism, and Events Industry Competency Model, 2014. www.careeronestopshop.org/competencymodel

U.S. Department of Labor Statistics, Occupational Outlook Handbook, 2016-2017.

Chapter 4 – Strategic Enterprise Management: Process and Outcomes

Andersen, Torben Juul. “Integrating Decentralized Strategy Making and Strategic Planning Processes in Dynamic Environments.” Journal of Management Studies 41(8). December 2004: 1271-1299. Web. 10 Nov. 2012.

Bertalanffy Center for the Study of Systems Science. Bertalanffy Center for the Study of Systems Science. BCSSS, 13 Nov. 2012. Web. 15 Nov. 2012.

Jarzabkowski, Paula and Julia Balogun. “The Practice and Process of Delivering Integration through Strategic Planning.” Journal of Management Studies 46(8). Dec. 2009: 1254-1288. Web. 10 Nov. 2012.


520

WORKS CITED

McNamara, Carter. “Basic Overview of Various Strategic Planning Models.” Authenticity Consulting, LLC. n.d. Web. 15 Nov. 2012.

Palmatier, George. “Strategic Planning: An Executive’s Aid for Strategic Thinking, Development, and Deployment.” Outsourced Logistics 1(5): 30-33. Oct. 2008. PDF file. 10 Nov. 2012.

Poister, Theodore H. and Gregory Streib. “Elements of Strategic Planning and Management in Municipal Government: Status After Two Decades.” Public Administration Review 65(1): 45-56. Jan./Feb. 2005. Web. 10 Nov. 2012.

Texas Workforce Division, Training and Development Department. Strategic Planning: Managing Strategically, Texas Workforce Division, May 2005. PDF file. 10 Nov. 2012.

Chapter 5 – Project Management: Managing Successful Exhibitions

“Five Essential Elements of Project Management.” ASAE Center. n.d. Web. 26 Feb. 2013.

Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th ed. 2008 Print.

Kerzner, Harold. Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 9th ed. Hoboken, NJ: Wiley & Sons, 2006. Print.

Chapter 6 – Budget Management


International Association of Exhibitions and Events. Guidelines for Display Rules and Regulations, 2018 Update. Dallas: IAEE, 2018. Print.

Friedmann, Susan A. “Is Sponsorship Right for My Company?” Business Know-How. n.d. Web. 15 Apr. 2013.

International Association of Exhibitions and Events. White Paper: Evaluating and Implementing Cubic Content into Linear Feet. Dallas: IAEE, May 2011. Print.

Latimer, A. A. lifequoteslib.com. n.d. Web. 15 May 2013.

Spatrisano, Amy and Nancy J. Wilson. Simple Steps to Green Meetings and Events. Portland, OR: Meeting Strategies Worldwide, 2007. Print.

Zavada, Nancy, Amy Spatrisano and Shawna McKinley. Saving Green by Going Green. Portland, OR: MeetGreen, 2011. Print.

Chapter 7 – Financial Management Strategies

“Events Industry Glossary.” Events Industry Council. 2011. Web. 21 November 2018.

Center for Exhibition Industry Research. The Cost Effectiveness of Exhibition Participation: Part I. Dallas: CEIR, 2009. Print.

Center for Exhibition Industry Research. The Cost Effectiveness of Exhibition Participation: Part II. Dallas: CEIR, 2009. Print.

Center for Exhibition Industry Research. Measuring Return on Investment (ROI) from Exhibiting and Event Marketing, SM ROI 1. Dallas: CEIR, 2007. Print.


521

WORKS CITED

“ROI Toolkit.” Center for Exhibition Industry Research. 2012. Web. 10 Mar. 2012.

Phillips, Jack J. and Patricia Pulliam Phillips. Show Me the Money: How to Determine ROI in People, Projects, and Programs. San Francisco: Berrett-Koehler Publishers, 2007. Print.

Shaw, George Bernard. Quotesmessages.com. n.d. Web. 15 May 2013.

Wilson, Nancy J. “Making Trade Shows More Eco-Friendly.” MeetingsNet. 1 Oct. 2008. Web. 12 Mar. 2012.

Chapter 8 – Learning Experiences on the Exhibition Floor

“An Analysis of Changes in Key Factors Affecting Exhibit Recall in the Last Decade, MC 46.” Center for Exhibition Industry Research. 2011. PDF file. 1 Feb. 2013.

Center for Exhibition Industry Research. Attendee Floor Engagement Study, Part 7. Print. 2017

“The Role and Value of Face-to-Face Interaction, F03 12.” Center for Exhibition Industry Research. 2012. PDF file. 1 Feb. 2013.

Harris, Sydney J. brainyquote.com. n.d. Web. 15 May 2013.

Chapter 9 – Sustainability

BREEAM, BRE Environmental Assessment Method, www.breeam.com

LEED, Leadership in Energy and Environmental Design, https://new.usgbc.org/leed

Meet Better, MeetGreen data for actual 500 exhibitor trade show, May 2015.

Chapter 10 – Evaluation


Crainer, Stuart. The Ultimate Book of Business Quotes. Oxford, UK, by arrangement with Capstone Publishing Limited. New York City, 1998. Print.

Chapter 11 – Request for Proposal

“Industry Insights Initiative: Accepted Practices Exchange.” Events Industry Council. n.d. Web. 14 Aug. 2012.

“Industry Insights/ASTM Environmentally Sustainable Meeting Standards.” Events Industry Council. 2012. Web. 14 Aug. 2012.

“Events Industry Glossary.” Events Industry Council. 2011. Web. 27 Sept. 2012.

Paul, Mike. Thinkexist.com. n.d. Web. 15 May 2013.

Porter, Michael E. and Mark R. Kramer. Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Watertown, MA: Harvard Business Review, 2006. Print.


International Association of Exhibitions and Events. White Paper: Evaluating and Implementing Cubic Content into Linear Feet. Dallas: IAEE, 2011. Print.


522

WORKS CITED

Chapter 12 – Destination Marketing Organizations

Pennington, Randy G., ed. Results Rule! Build a Culture that Blows the Competition Away. Hoboken, NJ: Wiley and Sons, 2006. Print.

Destinations International. 2011 DMO Organizational & Financial Profile Study. Washington, D.C.: DMAI, 2011. Print.

Chapter 13 – Facilities

Baugus, R.V. “The Difference Maker: Frank Poe’s Leadership Leaves Imprints of Success.” Facility Manager. April/May 2005. Web. 20 Aug. 2012.

“The Conference Centre Difference.” International Association of Conference Centres. n.d. Web. 22 May 2013.

“Recommended Guidelines.” International Association of Conference Centres. 10 Oct. 2011. Web. 20 Aug. 2012.

“What is EMCA?” European Major Exhibition Centres Association (EMCA). 2012. Web. 2 Aug. 2012.

“Our Facilities.” Las Vegas Convention and Visitors Authority. 2012. Web. 1 Aug. 2012.

Chapter 14 – Site Selection


United States, Department of Justice. ADA Home Page. 2013. Web. 1 Feb. 2013.

Ball, Corbin. “Wi-Fi: The Lifeblood of Event Communication – Should it be Free to Attendees?” Corbin Ball and Associates. 2012. Web. 10 Dec. 2012.

Carlyle, Thomas. “We were wise indeed could we discern truly.” Columbia World of Quotations. Columbia University Press, 1996. Web. 15 May. 2013.

Chen, Ching-Fu. “Analytical Hierarchy Process (AHP) Approach to Convention Site Selection.” Journal of Travel Research 45 (2006): 167. Web. 29 Dec. 2012.

Gabri, David. “Selecting Your Site: Keep These Parameters in Mind.” Franchising World 43.8 (2011): n. pag. Web. 5 Jan. 2013.

Guidry, Krisandra. “Antiterrorism Security Measures for Commercial Buildings: Inspection and Appraisal Guidelines.” The Appraisal Journal 75.4 (2007): 354-361. Web. 5 Jan. 2013.

Chapter 15 – Developing Floor Plans

United States, Dept. of Commerce, National Bureau of Standards. “Refinement of Values for Yard and the Pound.” Reprinted from the Federal Register, Notice 59-5442, 1 July 1959. PDF file. 1 May 2013.


International Association of Exhibitions and Events. White Paper: Evaluating and Implementing Cubic Content into Linear Feet. Dallas: IAEE, 2011. Print.

Seuss, Dr. Oh, The Places You’ll Go! New York: Random House, 1990. Print.


523

WORKS CITED

Chapter 16 – General Marketing Practices

American Marketing Association (AMA). Resource Library Dictionary. 2018.

“Events Industry Glossary.” Events Industry Council. 2011. Web. 1 Feb. 2013.

“Definition of Marketing.” American Marketing Association. n.d. Web. 15 Apr. 2012.

International Association of Exhibitions and Events. Expo Expo Case Study. Online. 2017.

International Association of Exhibitions and Events. Expo Expo Vision, Goals, Objectives, and Unique Value Proposition of Expo! Expo!. Online. 2017

International Association of Exhibitions and Events. How to Grow Attendance Series, Report Three: Messaging that Resonates and Delivers. Print. 2018

Kotler, Philip. “What is Marketing?” FAQs #1. Kotler Marketing Group. n.d. Web. 15 Apr. 2012.

Lincoln, Abraham. “Lincoln’s Advice to Lawyers.” Abraham Lincoln Online. 5 Nov. 1885. Web. 15 May 2013.

“Resource Library Dictionary.” American Marketing Association. n.d. Web. Apr. 2012.

Smock, Mark. “What is the Difference Between Sales and Marketing?” Ezine Articles. n.d. Web. 15 Apr. 2012.

Chapter 17 – Marketing Strategies and Tactics

International Association of Exhibitions and Events. Social Media White Paper: How to Properly Use Social Media to Enhance and Promote Your Event. Dallas: IAEE, 2010. PDF file.

Center for Exhibition Industry Research. Digital + Exhibiting Marketing Insights 2010: Improving Exhibition Marketing Performance Through Better Digital Integration, MC 45. Dallas: CEIR, 2010. Print.

Masters, L. Ann and Harold R. Wallace. Personal Development for Life and Work. Mason, OH: South-Western Cengage Learning, 2011. Print.

“2010 Response Rate Trend Report.” Direct Marketing Association. 15 Jun. 2010. Web. 15 Feb. 2013.

Chapter 18 – Sponsorship and Promotional Opportunities

Center for Exhibition Industry Research. Digital + Exhibiting Marketing Insights 2010: Improving Exhibition Marketing Performance Through Better Digital Integration, MC 45. Dallas: CEIR, 2010. Print.

“The Role and Value of Face-to-Face Interaction, Trends in Use of Exhibitions, F05.12.” Center for Exhibition Industry Research. 2012. Web. 15 Feb. 2013.

“The Role and Value of Face-to-Face Interaction, A Study from the Perspective of the Exhibition Attendees and Exhibitors.” Center for Exhibition Industry Research. Oct. 2002. Web. 15 Feb. 2013.

Segil, Larraine. Measuring the Value of Partnerships: How to Use Metrics to Plan, Develop, and Implement Successful Alliances. New York: AMACOM, 2004. Print.

Chapter 19 – Booth/Stand Sales

Schiff, Allison. “DMA: Direct Mail Response Rates Beat Digital.” Direct Marketing News. 14 Jun. 2012. Web. 14 Apr. 2013.

Fripp, Patricia. “10 Sell Yourself Strategies for Speakers.” Fripp & Associates. n.d. Web. 15 May 2013.


524

WORKS CITED

Chapter 20 – Housing and Registration

Hewlett, William Reddington. BrainyQuote.com, Xplore Inc. 2013. Web. 15 May 2013.

Chapter 21 – On-Site Operations

“Events Industry Glossary.” Events Industry Council. 2011. Web. 15 Feb. 2013.

Zuck, Roy B. The Speaker’s Quote Book. Grand Rapids, MI: Kregel Publications, 1997. Print.

Chapter 22 – Official and Specialty Service Contractors

Powell, Colin. “Leadership with Respect.” Hargrave Military Academy, Gen. Colin Powell Center for Leadership & Ethics. n.d. Web. 15 May 2013.

Chapter 23 – Exhibition Technology

Industry Insights – Event Bandwidth Estimator. Events Industry Council. 2017. Web. Sept. 2017.

Shirky, Clay. Here Comes Everybody: The Power of Organizing Without Organizations. New York: Penguin Group, 2008. Print.

Chapter 24 – Audiovisual Systems on the Exhibition Floor

“A Conversation with Dr. Maya Angelou.” Beautifully Said Magazine. 4 Jul. 2012. Web. 15 May 2013.

Chapter 25 – Food and Beverage

Wiseman, Richard. 59 Seconds: Think a Little, Change a Lot. New York: Knopf Doubleday, 2009. Digital file. 15 Oct. 2012.

Inspirational Quotes, Ultimate Collection. Everlasting Flames Publishing, 2011. Location 1152. USA. Kindle edition. 20 May 2013.

Chapter 26 – Shipping Exhibition Materials


Lewis, Jone Johnson. “Queen Victoria Quotes.” About Women’s History. 2009. Web. 15 May 2013.

Chapter 27 – Transportation

Weld, William. Brainyquote.com, Xplore Inc. 2012. Web. 15 May 2013.

Chapter 28 – Basics of Hotel and Venue Contracts


Jacobs, Jerald A. Association Law Handbook, 4th ed. Washington, DC: American Society of Association Executives, 1996. Print.


525

WORKS CITED

Chapter 29 – Exhibition Insurance

Frost, Robert. Inspiring Quotes & Wisdom Quotes. n.d. Web. 15 May 2013.

Macdonald, James W., Lloyd Dixon, and Laura Zakaras. Residential Insurance on the U.S. Gulf Coast in the Aftermath of Hurricane Katrina: A Framework for Evaluating Potential Reforms. RAND Gulf States Policy Institute. 2010. PDF file. 6 Apr. 2013.

Chapter 30 – Exhibition Security, Risk and Crisis Management


Chapter 31 – Business Ethics

Events Industry Council Manual, 9th edition

Every effort has been made to appropriately attribute intellectual property and resources used in this publication. If an attribution has inadvertently been omitted, we sincerely apologize and ask that you contact IAEE to allow for correction in future revisions.

The photographs in this publication are supplied courtesy of the identified source listed by each picture and have given IAEE permission to use.


527

INDEX

3-D technologies 362

7 Ps 260

Aacceptance 416

access 229

accountability 78, 96, 160

account leader 328

account manager or executive 328

accounts receivable 118

accrual method 118

action plan 77

activations 229

actualized room block 300

adaptive 346

adaptive strategic planning 75

additional insured status 441

admission fee 104

adult learning 131

advance freight 391

advance/on-site process 287

advance receiving warehouse (ARWH) 388

agent’s agreements 271

air freight forwarder 384

airline travel partner 408

aisle 232

alignment model 71

“all risk” basis 441

ambiance 362

ambient noise 136

amenity 205

American plan 425

Americans with Disabilities Act (ADA) 207

ANSI – American National Standards Institute 143

annual aggregate 442

APIs (application programming interfaces) 359

approved provider list 330

approved supplier 53

apps 348

aspect ratio 364

asset 118

asset availability 109

asset management 109

asset value 109

associations 52

ASTM International 143

ATA carnets 394

attendance audit 147

attendee 252

attendee demographics 253

attendee guarantee 419

attendees 43

attrition 98, 417

audience quality 152

audience quantity 152

audiovisual (AV) 318

Audiovisual (AV) tools 362

auditorium 27

augmented/mixed reality 353

authority 194

AutoCAD 234

AV designer 363

AV technician 363

Bbalance sheet 119

bandwidth load capacity 212

banquet event orders (BEOs) 204

barcode 311

bellwether effect 280

bias 149

big data 358

bill of lading (BOL) 391

blanket additional insured endorsement 443

Bluetooth 364

booths/stands 224

bounce back 268

breach of contract 417

break-even 98

break-even analysis 119

break-even point 119

bribe 474

budget assumptions 87

budget diary 112, 120

budget management 96

budget philosophy 97

business ethics 472

business intelligence 262

business personal property (BPP) 441

business plan 68

business-to-business (B2B) 48, 266

business-to-business (B2B) exhibitions 49

business-to-consumer (B2C) 266

business-to-consumer (B2C) exhibitions 49

buyer group 43

buyers 50

Ccall-to-action 266

cancellation penalty 303

capital items 51

carbon footprint 375, 410

cargo insurance 391


528

INDEX

cartage agent 391

cash-and-carry food service 419

cash method 118

CEIR Index Report 146

certificate of insurance 441

certificate of origin 395

chain motors 335

chart of accounts 97, 119

chief executive officer (CEO) 179

chief interpreter 170

claims-made policies 442

closed events 53

closed shops 339

closing 286

closing phase 90

cloud computing 348

collective bargaining 340

co-location 41

commercial general liability (CGL) 442

common carrier 384

concept map 68

concession 427

concessions 164

conference centers 196

consideration 416

consumer exhibitions 253

consumer shows 49

content marketing 280

Continental plan 425

contingent loss adjuster 447

continuing education recognition points (CERPs) 133

continuing education units (CEUs) 132

continuing medical education 133

contract 416

contract addendum 279

contractual liability 443

contribution margin 119

controlled media messages 263

convention 26, 253

convention and visitors bureaus (CVBs) 176

convention centers 192

conventions 32

convention services manager (CSM) 214

copyright infringement 433

core PCO 169

corkage 372

corporate marketers 39

corporate social responsibility 162

corporate social responsibility (CSR) 112, 140, 184

corporations 52

counteroffer 416

credit card guarantee 303

crime insurance 446

crisis 454

crisis management plan 463

crisis management team 455

critical path 85

Critical Path Method (CPM) 92

cross aisles 229

cross-selling 286

cross-training 83

cubic content 108, 228

customer relationship management (CRM) 290

customs broker 316

cut-off dates 304

Ddaily spend 199

deductibles 442

deficit-based 98

deliverables 83

demographic information 147

dependent activity 92

deposit per reservation 303

designated product zones 226

destination 204

destination management companies (DMCs) 176

destination management company (DMC) 169, 206, 319, 400

destination marketing organization (DMO) 206, 319

destination marketing organizations (DMOs) 176

digital media 261

digital sponsorships 277

dine-arounds 405

direct freight 392

directional statements 73

direct mail 266, 285

direct sales 284

discount code 408

discount fee 104

discount off published fares 408

distributed decision authority 75

double/double occupancy 425

Eearly registration 104

economic impact 192

economies of scale 41

egress 229

email fatigue 277


529

INDEX

emergency medical technician (EMT) 317

end cap 231

English System 224

environmental responsibility 375

European Messes 39

European plan 425

European Union’s General Data Protection Regulations (GDPR) 433

evaluation metrics 377

event advertisers 255

event cancellation insurance 447

event manager (EM) 214

event marketing 242

event sales 242

Events Industry Council 358

Events Industry Council’s Industry Insights Tools 62

event specifications guide (ESG) 204

event sponsors 255

excess declared value liability 391

exclusive provider 200

exclusive providers 315

exclusive services 330

executing phase 88

exhibition 22, 48

exhibition assets 109

exhibition center 198

exhibition economic impact 199

exhibition metrics 146

exhibition organizer 42, 48

exhibition sales process 286

exhibition specials 254

Exhibitor Advisory Committee (EAC) 152

exhibitor-appointed contractor (EAC) 327

exhibitor-appointed contractors (EACs) 392

exhibitor education 294

exhibitor prospectus 254

exhibitors 37

exhibitor service center (ESC) 327

exhibitor service manual (ESM) 288, 307

exhibitor service manual (ESM) or exhibitor tool kit 167

exhibitor services kit (ESK) 307

exhibitor services manager 329

exhibitor services manual (ESM) 327

exhibitor services team 329

exhibitor tool kit 307

exits 419

experiential learning environment 130

expo centers 192

Ffacility 205

fairground 198

fairs 198

fair trade agreements 375

familiarization trips 472

fidelity insurance 446

fire marshal 233

first-tier destination 179

fiscal year 118

Fixed Beacons: BLE (Bluetooth Low Energy) devices (known as iBeacons or beacons) 352

fixed costs 99, 119

float time 92

floor load capacity 215

floor plan 224

floor plan management tools 290

focus groups 147, 150

food and beverage (F&B) 372

food demonstrations 376

force majeure 417

formal evaluation methods 147

formal strategic planning 75

formative evaluation 88, 147

four Ps 260

free-standing displays 430

freight brokers 389

freight forwarder 316, 323, 394

frequency 39

full truckload (FTL) 389

Ggangways 342

general freight forwarder 385

geoclone 342

gift 474

global positioning system (GPS) 349

goals 73, 74

gobo effects 363

grab-and-go 374

Green Meeting Industry Council (GMIC) 143

green option 151

“greenwashing” 112

gross domestic product (GDP) 38

gross sales 121

gross square feet/meters (gsf/gsm) 230

ground transportation specialist 400

Hhandling objections 286

hands-on demonstrations 132


530

INDEX

hard wall 341

Harmonized Tariff System (HTS) 395

headquarter hotel 302

heavy lifting 342

high-definition (HD) video 355

historical data percentage 304

hold harmless 420, 443

holographic 362

homegrown violent extremists (HVEs) 459

horizontal exhibition 226

horizontal exhibitions 50

hospitality industry 176

Hospitality, Tourism, and Events Industry Competency Model 60

host committee 320

hosted buyer 374

hosted buyers 474

hotel contracts 305

hotel room inventory 304

hotel taxes 194

house list 266

HTML 356

hub system 389

hybrid budget 96

hybrid events 355

hybrid model 72

IImperial system 224

inbound 43

income statement 119

incremental budget 96

incremental budget 96

indemnification 420

indemnify 443

independent activities 92

indirect air carriers (IACs) 389

indirect costs 99

indoor positioning systems (IPS) 349

Industry Insights 143, 161

industry standard metrics 146

inflows 124

informal evaluation methods 147

initiating phase 84

inside sales 284

installation and dismantle (I&D) company 392

insured 442

integrated couriers 389

Intellectual Property Rights (IPR) 472

intelligent 363

interactive displays 132, 363

interdependent activities 92

international freight forwarder 385

internationalization 53

island 230

issues model 70

Jjournal entry process 118

Kkickbacks or commissions 473

kiosks 363

knowledge centers 132

LLead engagement technology 294

Leadership in Energy and Environmental Design (LEED) 142

lead-management system 312

lead-retrieval system 351

lead-retrieval systems 294

lead-retrieval unit 311

leads 152

learning pavilions 132

LED lighting 364

legend 234

less than truckload (LTL) 389

liability 118

license fees 435

lifting 342

linear 230

linear planning 69

line-item budget 97

line-of-sight 228

livestreaming 355

logistics 176

looping media 365

lumens 365

Mmaintenance schedule 406

man-made disaster 457

marketing channels 152

marketing plan 68, 242, 262

market segmentation 252

marshaling yard 216, 389

master account 120

material handling contractor 336

material handling form 393

material handling service 336

maximum floor plan 227

media relations 264

meters 231

metric system 224

milestones 83

minimum rates 406

mission 73


531

INDEX

mitigation 464

mixer 363

mobile app 347

mobile applications 311

mobile native applications 348

mobile polling 350

Modified American plan 425

monitoring and controlling phase 88

move-in 323

move-out 323

moving lights 363

multi-event contract 409

multi-touch screens 365

music licensing 369

Nnative apps 348

natural disasters 457

Near-Field Communication (NFC) 294, 352

net square feet/meters (nsf/nsm) 230

networking 353

new product programs 274

no-freight aisles 233

non-assignment provision 421

non-linear planning 69, 72

non-selling events 50

not-for-profit organizations 176

Ooccurrence-based 442

offer 416

official carrier 408

official service contractor (OSC) 164, 206, 227, 314

official services contractor (OSC) 113, 326

on clock schedules 402

on-site lifting contractor 336

on-site material handling 384

operations manager 329

opt-in 268

optional or discretionary services 330

opt-out 268

original equipment manufacturers (OEM) 52

OSC 323

OSC account executive 314

outboarding 472, 475

outbound 44

outflows 124

outsource 315

outsourcing 168

overhead 100

overrides 472, 473

overstating promises 472

Ppavilion 43

pay-for-catering 373

pay-to-play opportunities 275

peninsula 230

per-diem rates 213

per-event aggregate endorsement 443

performance benchmarks 149

performance/function budget 97

perishable product 179

per-loss basis 442

personal selling 284

PEST (political, economic, social/cultural, and technology) 244

Physical Protection System (PPS 460

pick-up within the room block 300

pipe and drape 32

place 260

planning phase 85

political, economic, social/cultural, and technology (PEST) 248

post-contracting document 279

post-convention meeting 322

post-draw process 287

post-event (exhibition) report (PER) 120, 204

post-event (exhibition) reports (PERs) 163

post-exhibition meetings 153

post-exhibition surveys 148

power buyers 53

pre-convention meeting 322

predictive analytics 359

pre-exhibition survey 149

preferred provider 200

preferred provider list 330

preparedness 464

presentation 285

price 260

primary data 76

priorities 73, 74

priority-point criteria 287

priority-point system 236, 291, 302

private events 52

private management company 194

product 260

product demonstrations 134

product theaters 132

professional congress organizer (PCO) 169, 206

professional congress organizers (PCOs) 177


532

INDEX

professional ethics 472

professional membership association 63

profit-based 98

programs 72

project 82

project charter 82

project leadership 87

project management 82

project management plan 68, 84

project manager (PM) 82

project plan 68, 85

project schedule 86

project sponsor 82

projection systems 362

projects 72

promotion 260

property claim adjuster 447

proposal 327

prospecting 285

prospect list 266

protected class 436

publication circulation audit 148

public exhibitions 49

publicity 260

public relations (PR) 263

public service announcements (PSAs) 263

published rates 425

purpose 73

purpose-built convention centers 193

purpose statement 73

push promotion 275

QQR code 311

qualifying prospects 285

qualitative 76, 147

quantitative 76, 147

quick response (QR) codes 352

Rrack rates 425

radio frequency identification (RFID) 294

radio traffic 321

reach 39

reactive design 346

real-time model 72

rear-projection 365

re-base lining 88

recommended providers 200

refund policy 105

registration fee 104

registration forms 148

relationship selling 288

rental fee 419

replacement value 441

replication 53

reporting 464

representative sample 147

request for proposal (RFP) 160, 204, 327

response 464

Response Planning Best Practices 460

response rate 267

responsive web design 346

return on investment (ROI) 39, 77, 121, 288

return on objectives (ROO) 121

reuse 143

revenue guarantee 419

reverse engineering 368

rigging 235

right-to-work laws 339

risk avoidance 440

risk management 440

risk management planning 89

risk reduction 440

risk retention 441

risk transfer 440

ROI metrics 39

room block 300

room block attrition 422

room block wash 300

rooming list 303

run of press 111

run-of-the-house guestroom rates 425

Ssales cycle 284

sales management 284

sampling 149

satellite service area 328

scenario model 71

scope statement 82

secondary data 76

second-tier destinations 179

selling events 50

senior management 68

sequential numbering 231

serpentine numbering 232

service liaisons or executives 329

set-up charges 421

shell schemes 341

show management office 314


533

INDEX

shuttle contractor 404

single occupancy 425

single-day registration 104

single/double occupancy 425

single-touch screen 365

site inspection 198, 204

site selection 204

site-selection process 204

site-selection team 205

situation analysis 247

slogan 73

SMART 74, 83

smart badges 352

social host liability 435

social media 269, 362

sockets 342

space-draw process 287

specialist agents 43

specialty contractors 153, 327

sponsorship agreement 403

sponsorship fees 110

stakeholder 75

statement of activities 119

statement of cash flow 119

statement of financial position 119

static lighting 363

statistics 147

strategic enterprise management (SEM) 68

strategic plan 68

strategic planning 68

strategic planning process 76

stream 362

street-style numbering 231

strict liability 435

sub-block contracts 304

subcontractor(s) 326

subsidies 407

suitcasing 309, 472

summative evaluation 88, 147

supply-and-demand economics 37

surcharges 406

sustainable 163

sustainable events 140

SWOT (strengths, weaknesses, opportunities, and threats) 229, 244

systems model 72

Ttagline 73

targeted attendees 148

targeted outcomes 79

telemarketing 288

temporary import bonds 394

tender 169

tenderers 169, 170

third-party event organizer 52

third-party fidelity bond 446

third-party management company 315

thought-leadership sponsorships 274

tiered pricing 290

total score 205

touch points 280

touch screen 362

trade fair 196

trade fair bond fee 395

trade fair bonds 394

trade fairs 29

trade show 49

traffic flow 229

transparency 78, 96, 160, 472

travel group 408

travel rewards 408

truss 335

truss rig 364

Uumbrella liability policies 444

uncontrolled media messages 263

underlying assumptions 73

underwrite 403

unfair advantages 472

union steward 340

unique selling proposition (USP) 286

unique value proposition (UVP) 245

unit upgrades and repairs 406

utility grids 235

Vvalue-added tax (VAT) 103

value proposition 274

variable costs 99, 119

venue 204, 401

venue-based apps 351

vertical exhibition 50, 226

verticalization 53

vicarious liability 443

video monitor 364

video news releases (VNRs) 263

virtual reality 353

vision 73

vision model 70

visitors 43

Wwayfinding 354

wearable solutions 294

web based apps 348


534

INDEX

WeChat 351

“what if” analysis 107

white label software 348

Wi-Fi 364

work breakdown structure (WBS) 85

workers compensation/employers liability 449

workers compensation policy 444

YZzero-based budget 96

zone fares 408


EXHIBITION PLANNINGV

ENU

E FA

CIL

ITY

CO

NS

IDER

AT

ION

S

EXH

IBIT

ION

MA

RK

ETIN

GEXHIBITION SALES AND OPERATIONS

CONTRACTED SERVICES

CO

NS

IDER

AT

ION

S

CONSIDERATIONS

BU

DG

ET M

AN

AG

EMEN

T

FINANCIAL MANAGEMENT STRATEGIESEDUCATION ON THE EXHIBITION FLOOR

FACILITIES

FACILITIES

FAC

ILIT

IES

FACILITIESSHIPPING

GEN

ERA

L M

AR

KET

ING

PR

AC

TIC

ES

MARKETING STRATEGIES AND TACTICSS

PO

NS

OR

SH

IP A

ND

PR

OM

OT

ION

AL

OP

PO

RT

UN

ITES

BOOTH STAND SALESHOUSING AND REGISTRATION

ON

SIT

E O

PER

AT

ION

S

OFF

ICIA

L A

ND

SP

ECIA

LTY

SER

VIC

E C

ON

TR

AC

TO

RS


AU

DIO

VIS

UA

L S

YS

TEM

S O

N T

HE

EXH

IBIT

ION

FLO

OR

FOO

D A

ND

BEV

ERA

GE


TRANSPORTATION

HO

TEL

AN

D V

ENU

E C

ON

TR

AC

TS CRISIS MANAGEMENT

BU

DG

ETM

AN

AG

EMEN

T

BU

DG

ET M

AN

AG

EMEN

T



EXHIBITION PLANNINGEXH

IBIT

ION

SA

LES

OP

ERA

TIO

NS

HOUSING AND REGISTRATIONFACILITIES

CO

NS

IDER

AT

ION

S FOOD AND BEVERAGE

EXH

IBIT

ION

SA

LES

AN

D O

PER

AT

ION

S


TRANSPORTATION

EDU

CA

TIO

N O

N T

HE

EXH

IBIT

ION

FLO

OR




FACILITIES

FACILITIES

STRATEGIES


VENUE FACILITY CONSIDERATIONS

EXHIBITION PLANNING

VEN

UE

FAC

ILIT

Y C

ON

SID

ERA

TIO

NS

EXHIBITION PLANNING

CRISIS MANAGEMENT


VENUE FACILITY CONSIDERATIONSVENUES

VENUES

ON

SIT

E O

PER

AT

ION

S

ON

SIT

E O

PER

AT

ION

S

VEN

UES

VEN

UES

FACILITIES

EXH

IBIT

ION

S

EXHIBITIONS

EXHIBITIONS

EXH

IBIT

ION

S

FOOD AND BEVERAGE

FOOD AND BEVERAGE

MANAGEMENT

MANAGEMENT

MANAGEMENT

MANAGEMENTSHIPPING EXHIBITION MATERIALS

TRANSPORTATION

TRANSPORTATION


ONSITE OPERATIONSO N S I T E O P E R A T I O N S

EXHIBITIONSFOOD AND BEVERAGE

FACILITIES

SHOW FLOOR

SHOW FLOOR

PLANNING

PLANNING

PLANNING

AUDIOVISUAL SYSTEMS

AUDIOVISUAL SYSTEMS

AUDIOVISUAL SYSTEMS

SHOW FLOOR

FLOORSHOW

ST

RA

TEG

IES

STRATEGIES

ST

RA

TEG

IES

ST

RA

TEG

IES

STRATEGIES

STRATEGIES


The Art of the Show is really the only globally adopted and followed textbook by the industry, with comprehensive detailing of procedures and standards which will help show organisers across various trades of the industry to produce best results for their stakeholders. The authors who have contributed in creation and refining the Art of the Show textbook have

done a commendable job in making the textbook relevant for years to come.

KV Nagendra Prasad, CEM,President, Indian Exhibition Industry Association and COO, HITEX Exhibition Centre, Hyderabad, India

The Art of the Show is the premier resource to any and all involved in the planning and production of exhibitions and events worldwide. It is a complete comprehensive body of knowledge that industry professionals at all levels can reference from inception to execution. The multitude of topics in the book are the blue print to effectively and efficiently utilize and manage all available resources for the benefit of the organizer, its partners and all other stakeholders. The Art of the Show is also the resource from which all educational instructional materials for CEM are

developed. I firmly believe that continuing education is the future of the exhibitions industry.

Al Lomas, CMP, CMM, CFE, CEM,Consultant, Certified Consulting Service, IAEE CEM Emeritus

The International Association of Exhibitions and Events (IAEE), the leading association of the global exhibition industry, well understands and accommodates the specific needs of event educators and industry professionals who have a shared mission in promoting the unique value of exhibitions and events. The Art of the Show, 5th edition, reflects the changing needs and standards by incorporating updated global issues, policies, challenges and current trends. It is inevitable that the new publication is the primary resource (1) for educators who teach trade show and exhibition management, (2) for young professionals who are looking to advance their careers, (3) and lastly for

industry leaders who are committed to planning and executing a successful exhibition.

Shinyong (Shawn) Jung, Ph.D., MBA, CHE, CHIA,Assistant Professor, School of Hospitality, Events and Tourism (HEaT), Metropolitan State University of Denver

The fifth edition of the Art of the Show is the ultimate resource that sets the groundwork for educators to deliver current and critical knowledge, best practices and trends to individuals both newly entering the industry and seasoned exhibition planners. The publication provides the essential details necessary to produce a successful exhibition. It uses text and comprehensive graphics that are easily integrated into the instructors

teaching methods. I would recommend it to anyone in the industry.

Jai Cole, CEM,Vice President, Plum Communications, IAEE CEM Emeritus

The Art of the Show textbook and the related teaching materials have been a tremendous addition to our event management curriculum. The 5th edition has the most current and timely information on all aspects of the exhibitions and events industry providing students with the latest in industry best practices and current trends. The ability to have students utilize the textbook that is the industry gold stand enables them to be extremely well prepared to enter the industry upon graduation. I highly

recommend this textbook be used to enhance your students’ learning experience.

Andrew R. Fraser, M.Ed., CHE.,Associate Professor, Johnson & Wales University, Department of Sports, Entertainment, Event – Management

9 780989 583329

59999ISBN 978-0-9895833-2-9

$109.95
