Chicago’s Loss is another Orlando Gain

1. Chicago’s Loss is another Orlando Gain

2. Chapter 4 Selling the Association Market Convention Management and ServiceEighth Edition (478TXT or 478CIN) Courtesy of Inverness Hotel and Conference Center

3. Importance of the Association Market • Associations fill 30 to 40 percent of the rooms annually at major hotel chains • The annual association convention typically includes a trade show and generates considerable revenue for the host hotel and city (multiplier effect) • Associations derive 32 percent of their annual income from conventions, exhibits, and meetings (@) • Associations receive income from convention registration fees, subleasing space to exhibitors at a profit, and by selling advertising space to exhibitors in publications and programs

4. Importance of the Association Market • Associations seek sponsors within the exhibitors for breaks / receptions / key cards / lanyards / other stuff • The association market is the most frugal and many properties prefer to book a limited number of association meetings. • Association meetings can be flexible with dates and often sales will try to book them to fill in gaps between corporate business. (Summer / Holidays) • Often do not produce significant F&B revenue and this has an impact on hotel / local outlets.

5. The Meetings Market by Total Expenditures While corporations provide a larger market in total number of attendees and meetings, the spending of associations is about two times that of corporations, mostly because associations generally include a trade show as part of their conventions. Total Direct Spending: $122.31 Billion

6. The Meetings Market by Number of Meetings

7. The Meetings Market by Attendance

8. What Association Meeting Planners Look For Adequate meeting space (prefer to use only one property) • General sessions • Breakout sessions • Workshops and committee meetings • Food functions Enough guestrooms (continued)

9. What Association Meeting Planners Look For (continued) Adequate exhibit space—Should be close to housing Attractive location • Convenient for travel • Convenient for doing other business • Resort/recreation location Service • Reassurance that whatever problems arise during a group’s stay, the property will be able to handle them

11. Kinds of Association Meetings Annual Conventions • Most held with trade shows or exhibits • Usually include general session(s) with breakout and concurrent sessions • Usually include food functions (@) • Several hotels may host them State and Regional Conventions • May be sponsored either by national association or by state/regional associations (continued)

12. Importance of the Association Market • Recent Groups: • American Foundry (12,000) • American Locksmiths Association (5,000) • US High Speed Rail (500) • Florida Pre-Paid Legal (1,200) • Benevolent Association of Elks (5,500) • AREMA (1,200) • ADA (October 2011 = 70+ Affiliates) NOTE: All produced very little banquet F&B but did have positive financial impact on outlets.

13. Factors Important to State and Regional Associations

14. Kinds of Association Meetings (continued) Conferences • Supplement the annual convention with a program on new developments Seminars/Workshops • For training or continuing education • Usually repeated in several locations Board and Committee Meetings • Often held in premier properties to reward members

16. Cycle and Pattern • Conventions are held on a regular time cycle (annual, biennial, semiannual) • Cycle often supplemented by regional conventions • Usually held in Sunday–Wednesday or Thursday–Sunday pattern • Most events held in September, October, or April–June

17. Daily Meeting Pattern of Associations

18. Monthly Meeting Pattern of Associations Five months with the most conventions: • October • May • April • June • September Five months with highest convention attendance: • October • September • March • February • January

19. Geographic Restrictions,Lead Time, and Kinds of Sites Geographic Restrictions • Groups sometimes limited to region or state by constitution • Interests of program may further narrow location options Lead Time • Conventions are usually planned 2 to 5 years in advance (@) Booked yes … Planned … ?? • The larger the convention, the longer the lead time (continued)

20. Geographic Restrictions,Lead Time, and Kinds of Sites Kinds of Sites • Depends on group size, complexity, and tastes and members’ affluence • Accessibility is important • Site should have a reputation as a vacation destination (continued)

21. Courtesy of Crowne Plaza Hotels

22. Voluntary Attendance,Convention Duration, and Price Voluntary Attendance • Properties can help promote the event • Promoting spouse attendance means double-occupancy revenues, increased length of stay, and additional spending in the facility Convention Duration • National conventions average 3 to 5 days • Smaller events last 2 to 3 days • Seminars and committee meetings last 1 to 2 days • Auxiliary events before and after conventions • When exhibits are part of convention, convention lasts at least 3 days (continued)

23. Average Duration of Association Meetings

24. Voluntary Attendance,Convention Duration, and Price Price • Guestroom rates are the planner’s main price concern; planner wants reasonable rates to attract attendees • Align prices to attendee profile • Past attendance is key to future selections (continued)

25. Association Meeting Decision-Makers • Association director  • Association president and officers • Committee chairperson • Board of directors

26. Association Director, President, and Other Officers Association Director • Screens all suggestions and solicitations • Smaller associations are often serviced by association management firms • Meeting professionals are often employed by larger associations • Executive director is a key person for initial screening • Site selection committee often appointed by executive director • May hire Association Management Companies (continued)

27. Association Management Companies • Small associations often cannot afford the services of a full-time executive director • Many outsource the management to a multiple-association management company • These companies have the potential of bringing several convention bookings to your hotel

28. The Association Management Companies

29. Association Director, President, and Other Officers (continued) Association President and Other Officers • President’s power varies greatly among associations • Mostly involved in the final decision • Vice presidents, secretaries, and treasurers often become presidents in the future, so relationships with such officers should be carefully cultivated

30. Committee Chair, Board of Directors,and Local Influences Committee Chair • Sometimes gets involved in initial suggestion/screening Board of Directors • Usually have power of approval Local Influences • Local chapters often bid for national events • Salespeople can appeal to local members’ civic pride • Hotels often cover expenses for local delegate to present bid to national board • Emphasize hotel staff’s expertise and desire to execute meeting properly

31. Time for a break…