President’s Message

Unexpected Silver Linings

By Brian Stevens

 

Recently I spoke at a large conference attended by a significant number of event planners. The focus of my presentation was on education and industry observations. I now share with our readers my thoughts: North American hotels are experiencing very strong demand, highest average rate, and record annual occupancy; there are still some unexpected benefits for meetings buyers.


Here's an example of a "silver-lining" story that might apply to your organization: Recently, we were approached by a New York City hotel about the chances of moving a definite group for 2009 to make way for a larger group. We had another win-win situation! We found a hole in a first tier city in 2009 that offered a very aggressive package to secure this business for 2009. We not only secured 2009 but were able to meet back in New York one year later with an enhanced concession package that did not exist before and resulted in significant overall cost savings to the association for both years.


Here are some things for you to keep in mind during this period:

 

  • Some groups are challenged by the high rates in their first-tier markets. During recent contract negotiations we asked a hotel for a reduced room rate to keep the members in the hotel and avoid potential attrition damages. The hotel was not able to reduce the room rate any further but did allow us to reduce our room block and add a limited service hotel which was part of the chains brand. This opportunity provided the customer an alternative price point and eased concerns about attrition at the Headquarters hotel by reducing the room block.

  • When requesting meeting space, ask for the space you absolutely need and then highlight the space that would be "nice to have". Some groups will get turned away because they are asking for a 24-hour hold on a room that could be sold for a banquet the night before. When hotels turn down your business, be sure to ask why. Perhaps slightly modifying your program needs will make it more attractive for the hotel.

  • Conventional wisdom needs to be considered in any high-demand market. For example, you always start the convention on Tuesday, but Tuesday may be one of the peak occupied nights for that destination. Try starting on Sunday and ending on Wednesday, or better yet, start Wednesday and end on Sunday.

  • Do your homework and understand the value of F&B your group represents. You are competing with other groups and knowing this information is valuable for the hotel to understand your business. Hotels are looking at your total spend and not just your room rate.

  • Likewise, meeting room rental: Negotiate a sliding scale vs. straight meeting room rental. The sliding scale can be predicated on room pickup or F&B revenue.

  • If you have a large conference ask the CVB for assistance with housing, on-site registration and other services the CVB may provide as added value.

  • Try offsetting the higher cost with sponsorships. Consider the room key as a method of getting a large supplier to buy an ad on the hotel keys. In-room TV channels are for rent as well. Consider having your coffee breaks and bottled water sponsored. We recently had a Fortune 100 company offer to sponsor cocktail napkins with the sponsor's name on the napkin at all the bars within the hotel. The group received sponsorship fees and the hotel was happy to accommodate the group with the request.

  • Another group, because of budget issues, needed to cut some fixed costs on its annual meeting. Rather than negotiate each item, we went to the hotel, showed them where we spend money, and asked where we might achieve some savings. It turned out that the group just before us was a Fortune 10 company which had a much more elaborate stage than our group had ever specified. Because we started the next day, the other group was going to pay overtime to tear down the staging, lighting and sound system. In the end, the hotel charged us the normal $5,000 to tear down on straight time, so we saved $10,000 and had a phenomenal staging installation.

  • Here's a creative one. We had a group that hit hard times after 911; they needed to look beyond its traditional convention center cost of $50,000. In a brainstorming session, they looked at the notion of having their 75 exhibitors in hotel suites. They rented the suites and sold them to exhibitors at a 25% premium. This allowed them to make money on the suites while saving the $50,000 convention center rental. The exhibitors saved money by not having to ship a booth and the additional cost of set-up and tear down. This is not a possible solution for every organization, but when a group shrinks significantly, consider all possible methods to operate in a profitable manner.

Let me summarize all this by saying that heightened communication on a group's real needs will assist in getting a better overall package. While we are in a robust market, there are cities running below 70% occupancy. This is the year to be as flexible as possible. Dates, cities, day of the week patterns, and time of year all help when trying to get a better deal. This is a pattern that will last several more years. There are 125,000 rooms under construction which, when open, will bring balance to this sellers' market. Until that time, wise shopping will be an important part of our daily jobs.


Today it might take twice as long to find a hotel as it did four years ago; but that's why you trust ConferenceDirect with your meeting needs. Tell us everything you musthave and we will do the best job in finding the best site for your meeting.

 

 

ON OUR RADAR

Upcoming Industry Events

 

Springtime in the Park
June 14, 2007
Washington Convention Center
Washington, D.C.

 

Affordable Meetings West
June 19 - 20, 2007
San Jose Convention Center
San Jose, CA

 

NBTA Annual Convention
July 22 - 25, 2007
Boston, MA

 

MPI – WEC
July 29 - 31, 2007
Montreal

 

 

BEST PRACTICES

Managing Breakout Speakers – It's in the Details!

By Lynn Golabowski

 

All presenters are just as important as your keynote speaker; however the breakout speakers need to be handled in a slightly different way. Since some of these speakers are not experienced, sometimes they need extra help in submitting their proposal or customizing a presentation for your meeting.

 

To begin with, large conferences distribute a call for presentations or a presenter's application. This document is an opportunity for individuals to apply to speak at your conference. It provides you with information in a consistent format from each potential speaker, which helps you make an informed decision.

 

A call for presentations or presenter application includes the following:

 

  • Presenter information (name/organization/address/phone/fax/email)

  • Title of the proposed session

  • Session description and learner outcomes

  • Track information (so they can prepare for the audience)

  • Presenter bio and other credentials

  • Audio-visual requirements

  • A question regarding audio or video taping of the session

  • What the speaker will receive for speaking (travel costs, honorarium or fee, complimentary registration or registration discount, name and bio in the program, and so on)

  • Due date and to whom to send it

Once you have received responses to the call for presentations, make your selection(s). Send the speakers you select confirmation letters. Send the people who are not selected a thank-you letter for submitting an application and why their session was not selected, and invite them to the conference.

 

Most of the speakers who do not charge a fee are people who do not speak professionally for a living. They may not have their own contracts, so you need to send them one. Sometimes just a confirmation letter is enough. In any case, here are the most important items to address in speaker contracts/letters:

 

  • Day/date and start/stop time of the presentation; location of presentation

  • Topic and any customization required

  • Q&A time throughout the presentation (if any) and book signings if appropriate

  • Breakout sessions and additional costs (if any)

  • Approval for video and/or audio taping of the program. If yes, have the speaker sign a release

  • Short bio for introduction purposes and the program

  • Presentation outline and learner outcome

  • Handouts (if yes, who prepares?) and deadlines for receipt of originals with copyright release

  • Reimbursable expenses and caps on expenses if any

  • Travel arrangements

  • Travel requirements (first-class airplane ticket?)

  • Audio-visual requirements and room set requests

  • Date the deposit (if applicable) is due

  • No-show, cancellation and termination clauses

Based in Wisconsin, Lynn Golabowski is a Regional Vice President with ConferenceDirect and is co-author of The Complete Idiot’s Guide® to Meeting & Event Planning.

 

 

BEDSIDE TABLE

 

What notable, luminary, and insightful hospitality industry leaders are reading and recommending.

 

Wicked by Gregory Maguire
"It's such an incredibly magical tale and it's great to be reminded that there's always more to every story than how it first appears."

 

Regina Birdsell
CEO, Center for Nonprofit Management, Southern California