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Convention & Trade Show Industry: An Overview presentation to The Convention Partnership . Presented by Milt Herbert Executive Director Boston Convention Marketing Center January 27, 2010. Agenda. Convention & Trade Show Industry Overview
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Convention & Trade Show Industry: An Overviewpresentation toThe Convention Partnership Presented by Milt Herbert Executive Director Boston Convention Marketing Center January 27, 2010
Agenda • Convention & Trade Show Industry Overview • Types of Business – tradeshow, association, corporate • Revenue Drivers, Competition • MCCA Convention Facilities – Hynes & BCEC • Convention Center Facilities - Competition • The Boston Convention Marketplace • Advantages • Target Market • Business Practices • Boston Convention Marketing Center
Profile - Milton H. Herbert, Jr. • Executive in the Trade Show and Events Industry (1988-2000) • One company, many names • The Interface Group, Inc. • Softbank Comdex, Inc. • Softbank Comdex and Forums, Inc. • Ziff Davis Events (division of Ziff Davis Publishing, Inc.) • Chief Operating Officer • Managed 120 events worldwide annually • United States • Canada • Latin America • Europe • Asia • Managed all types of events (many industries) • Trade shows • Corporate events • Association events • Responsibilities included: • Show Management • Sales • Marketing • Business development • Venue selection (convention centers) • Assisted in the design and launch of the Sands Expo C. C. • Revenues of $210 million annually • EBITDA $110 million annually • Employees 400 • President and CEO, Momentix, Inc. (2000-2002) • Venture-funded “dot-com” in events industry • Provided computer services over the internet • Customers included: trade shows, corporations, associations
Convention and Trade Show Industry OverviewTradeshows • Typically are publicly or privately-owned • Business objective of making a profit for the benefit of the owner • Books 3-5 years into the future • Examples: • International Boston Seafood Show (owned by Diversified Business Communications, Portland, ME) • Natural Products Expo East (New Hope Natural Media, Boulder, CO) • Pri-Med East (owned by M|C Communications, LLC)
Convention and Trade Show Industry OverviewAssociations • Typically owned by a not-for-profit trade association • Organizes events for the benefits of its membership i.e. education & professional development • Books 5-15 years into future • Examples: • Bio Annual International Convention (owned by the Biotechnology Industry Organization, Washington, DC) • The Liver Meeting (American Association for the Study of Liver Diseases, Alexandria, VA) • American Transplant Congress (joint annual meeting of the American Society of Transplant Surgeons and the American Society of Transplantation) • Lions Club International (the worlds largest service club organization)
Convention and Trade Show IndustryCorporate • Typically a proprietary event owned by a profit-seeking corporation • Business objective is to advance a company’s products or initiatives • Books up to 3 years into future • Microsoft Tech-Ed (owned by Microsoft Corporation, Redmond, WA) • SAP Sapphire(owned by SAP, Walldorf, Germany) • The Orgill Fall Dealer Market (owned by Orgill, Inc.) • WOLF @ Best Buy (network of employees to build strong women leaders & capture a greater share of the female consumer electronics market)
Convention and Trade Show Industry OverviewOther • Conferences – Typically educational programs that do not have exhibit component • Public or Gate shows – Typically events that have no registration, no/little education component, paid gate admission (e.g. – New England Boat Show, Northeast Auto Show)
Characteristics of Conventions & Trade Shows • Exhibit Floor • Companies and vendors displaying, demonstrating or selling their products (usually firms in same industry as associated with the event) • Education Program • Learning programs (generally for a fee) that enable the attendee to learn about the industry products and technologies to improve their buying skills and implementation skills (sometimes required for license) • Exhibition Attendee • Individuals who visit the exhibit floor for the purpose of evaluating the technologies and products in the marketplace (typically qualified individuals with minimal or no attendance fee) • General Session or Keynote • One or more presentations that are generally made by an industry leader and is generally considered to be a strong statement about the caliber of the event
Revenue Drivers for the Trade Show & Convention Industry • Trade Shows (primarily exhibitor revenue, some education revenues, typically very little registration income) • Associations (a mix of exhibitor, sponsorship and education revenues) • Corporate events (revenues from exhibitors and sponsorships used to offset costs, as such events are generally deemed to be a marketing investment) • Consumer or gate events (exhibition attendee tickets and parking revenues, exhibitor revenues) • Conferences (education revenues, very little or no exhibit revenues)
Convention and Trade Show Industry OverviewCompetition • Event planners consider a number of factors when deciding where to book an event: • Exhibition facilities • Hotel availability and hotel pricing • Access to the market for the attendees – domestic, international • Transportation services • Food, entertainment and retail quality • Customer service • Prior Experiences • Overall Cost • The hierarchical order of importance will vary from one planner to another • Generally, the most important factor is access to the market for attendees (will they come?) • The basis of competition is focused on the above parameters rather than against cities
Convention and Trade Show Industry OverviewExhibition Facilities Evaluation • Exhibition facilities have physical considerations: • Size of exhibit space • Size, quantity and availability of meeting rooms • Technology capabilities • Pedestrian transportation and navigation • Exhibition facilities have environmental considerations: • Access and proximity to hotels, airports, restaurants, shopping and entertainment • Requirement to use transportation services (bus, taxi, limo, etc.) • Exhibition facilities have “personal” considerations: • Big vs. small • Warm vs. cold • Stark vs. collegial • Integrated into community vs. outside the community • Safety vs. fear • Meeting planners will select different venues based on different requirements
Boston Convention & Exhibition Center (BCEC): Key Features • 516,000 contiguous square feet of exhibit space • Ten different exhibit hall configurations • Sky bridges provide for fast pedestrian access • In-floor utility access • 160,000 square feet of meeting room space • 84 meeting rooms • 40,020 contiguous sq. feet ball room • 130,190 square feet of registration space • 140,190 square feet of pre-function space • 62-bay loading dock • Elevated ring road • Technology solutions and services
BCEC: Numerous Advantages • Multiple entrances • Multiple registration entrances • High ceilings on exhibit floor • Virtually column-free exhibit floor • State-of-the-art meeting rooms with integrated A-V connections • Large contiguous exhibit floor • Executive level boardroom • Fast and easy navigation of the building • Easy access to all forms of transportation
John B. Hynes Veterans Memorial Convention Center: Key Features • 175,000 square feet of exhibit space • 5 exhibit halls • 4000-seat auditorium • 25,000 square foot ballroom • State-of-the-art technology • 71,664 square feet of meeting space • 38 meeting rooms • All season facility (climate-controlled)
Hynes: Numerous Advantages • Location in Boston’s Back Bay • Environment of building in style and feel is eclectic • “All-inclusive” feature of being connected to three large hotels • “All-inclusive” feature of being connected to many restaurants • “All-inclusive” feature of being connected to two up-scale shopping malls • “All-inclusive” feature of being connected to many entertainment options • Close proximity to all of Boston’s environment due to size of city • Convenient to Public Transportation & AmTrak (Back Bay Station)
Selection of the Hynes vs. the BCEC • In general, a meeting planner is deciding on Boston vs. other cities • Meeting planners will not pick Boston and then decide on the Hynes vs. the BCEC • Meeting planners generally know: they want the Hynes or they want the BCEC • Regional meetings (those required to be in New England), can select either the BCEC or the Hynes • National meetings will select an alternative city if the facility does not meet their needs
Convention Centers: Size The BCEC ranks 32nd in size on the master list (27th in 2005). The Hynes ranks 107th in size on the master list (90th in 2005). Source: Tradeshow Week Major Exhibit Hall Directory, August 2009
Exhibition Facilities: Size (Evaluations) • Amount of gross square feet required is most important in “show fit” • There are approximately 100 events that cannot be handled in the BCEC due to their size, but only about 70 practical events • Contiguous square feet is more important than overall size, if the show fits • 516,000 contiguous sq. ft. is preferred for an event of 450,000 sq. ft. over an exhibit facility with 3 300,000 sq. ft. halls • The BCEC has the second largest contiguous sq. ft. facility on the east coast and is 9th in the United States (Orlando has 642,000 sq. ft. of contiguous space) • Sufficient quantity of meeting rooms and meeting room space is mandatory • Ballrooms must be large and capable of serving multiple purposes
Convention and Trade Show Industry OverviewCities with Multiple Facilities(Rank by Gross Square Feet for Each City) Source: Tradeshow Week Major Exhibit Hall Directory (August 2009)
The Boston ConventionMarketplaceWhy Boston Wins In the Convention Marketplace! • Access to attendees and members (demographic reach of quality and quantity) • BCEC is better designed than other convention facilities • Hynes is a unique convention facility with “all-inclusive” features • Boston has very desirable destination characteristics • Boston’s transportation system is very good (air, ground, public) • Proximity of convention centers to other convention components is very good • Boston will out-market and out-sell other convention destinations • Boston has developed a positive and word-of-mouth reputation for being a great convention city • It’s Boston
Boston Convention Marketing Center: Organization Structure • The Boston Convention Marketing Center is a joint effort of the Greater Boston Convention & Visitors Bureau and the Massachusetts Convention Center Authority to market and sell the Boston Convention & Exhibition Center and the John B. Hynes Veterans Memorial Convention Center.
Boston Convention Marketing Center Responsibilities • Sales and Marketing Strategies • Develop Sales and Marketing Materials • Develop Sales and Marketing Processes • Create a “one-stop” shopping model to the prospective customer • Track market data and information to refine positioning in the marketplace • Strengthen relationships with hotel community to support citywide room block & one point of contact to customer
Boston Convention Marketing Center BCMC Organization • Vice-President of Sales • Eight sales territories (geographic/industry sector) • Strong sales backgrounds • Strong event industry backgrounds • Special sales for 3rd Party influencers • Director of Hotel Industry Relations (secure hotel contracts) • Compensation directly tied to performance of successful selling • Marketing organization develops a broad array of programs targeting the marketplace in support of sales
Boston Convention Marketing Center Selling Objectives • Rental income (proceeds directly to the Commonwealth) • Services income (net proceeds directly to the Commonwealth) • Food and beverage income (net proceeds directly to the Commonwealth) • Hotel room nights (tax benefit proceeds directly to the Commonwealth and the Cities of Boston/Cambridge) • Maximize proceeds to the Commonwealth for Hynes and BCEC • Some business is not good for the BCEC, but is good for the Hynes • Some business is not good for the Hynes, but is good for the BCEC • Some business is not good for Boston
Boston Convention Marketing CenterMarketing Programs Overview • All marketing programs are designed to cause sales of convention-level business to Boston • Brand is “Advantage BOSTON” and is applied to all marketing and sales initiatives to build and enhance Boston as a preferred convention destination • Tagline is “Boston. Making Convention History.” which replaced “You’ll Love What We’ve Done With The Place” • Objective of sales and marketing programs is to get prospect to Boston (and then to sign contracts)
Boston Convention Marketing CenterMarketing Programs Overview • Advertising • Targeted to national meeting planner trade publications • Successive right-hand page buys at front of publication • Media buying power gains ancillary marketing benefits • Direct Mail • Targeted direct mail communications directly at Meeting Planners • Follow-up by sales organization • Events and Trade Shows • Participate in national trade shows attended by meeting planners • Integrated pre-show, at-show and post-show marketing programs • Public Relations • Targeted media at the national publications level • Re-enforce messages being sent in other marketing programs
Marketing Programs (con’t) • Newsletters • Sent electronically on quarterly basis • Receive by approximately 8000 meeting planners • Collateral • Brochures on the Hynes and BCEC, joint brochure • Maps, floor plans, proposals, inserts, etc. • Website • www.AdvantageBOSTON.com • Comprehensive presentation of Boston, BCEC and the Hynes • Database • Data base marketing techniques • Merge / purge of six major industry data bases, updated by sales
Convention & Trade Show Industry: An Overview Presented by Milt Herbert Executive Director, BCMC January 27, 2010