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Hospitality , Lodging and Food Services Operations. Meetings, Conventions, and Expositions. John R. Walker. Chapter 12. Chapter Objectives. 1. Know about the major players in the convention industry 2. Describe destination management companies
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Hospitality, Lodging and FoodServicesOperations Meetings, Conventions, and Expositions John R. Walker Chapter 12
ChapterObjectives 1. Know about the major players in the convention industry 2. Describe destination management companies 3. Describe the different aspects of being a meeting planner 4. Describe the different type of meeting 5. Know the various venues for meeting Introduction to Hospitality,
Outline 1. MICE Industry and components 2. Development of the Industry 3. Size and Scope & Key Players 4. Convention and Visitors Bureaus 5. Destination Management Companies 6. Meeting Planners and Service Contractors 7. Types of Meetings, Conventions, and Expositions 8. Types of Associations and Meetings 9. Venues 10. Industry trends
MICE Industry • Meetings, incentive travel, conventions, and exhibitions (MICE) represent a segment of the tourism industry that has grown in recent years • MICE tourists spend about twice the amount of money that other tourists spend
M.I.C.E. Industry Components • Meeting – is a conference, workshop, seminar or other event designed to bring people together for the purpose of exchanging information.Meetings do not include exhibits. • Incentive Travel– is a travel that is given to employees as a reward for outstanding performance
M.I.C.E. Industry Components • Convention– is an event in which meetings are combined with exhibitions. • Exhibition– is an event designed to bring together providers of products, equipment and services in an environment in which they can demonstrate their products and services to a group of participants in a convention or trade show • Event– is anything that happens or a very important occurrence. Events can range from local, national, regional and international.
IMPORTANCE of MICE • Economic growth of the region as a whole gets a boostaccommodation and air services. • The elements of relaxation, shopping and sightseeing are usuallyincluded in MICE trips. • Hence,most MICE travellers can be converted into leisure travellers who would spend money on sightseeing and shopping.
IMPORTANCE of MICE • It is quite common for delegates to bring along a companion. • Thus, MICE tourism is a powerful revenue earner and the foreign exchange generated goes straight to the core of the region’s economy, ultimately generating income for other parts of the country. • MICE events increase awareness of the host country, create employment and income. • MICE tourism strengthens the brand value and profile of the country as an international tourist destination
REQUIREMENTS of MICE • Efficient transport network, connections and airport arrival processes. • Proximity of MICE facilities to airport and public transport facilities • Hotels with good MICE facilities (conference and meeting rooms) • Cultural attractions in the city (theatres, churches, museums) • Shopping(souvenirs, fashion, local delicacies, handicrafts), sightseeing and excursions in the MICE environment.
The Role of M.I.C.E. in the Tourism Industry $ 300 billion global MICE Market & 50 million trips each year worldwide for MICE purposes
The Role of M.I.C.E. in the Tourism Industry • Of the $ 300 billion global M.I.C.E market • Meetings and conventions account for $280 billion • Incentive travel on$ 8.5 billion • Exhibitions for several billions more
M.I.C.E • Stable source of foreign visitors • Most resilient (flexible) sector • Less susceptible to price fluctuations & seasonality- increase hotel occupancies even on lean months • Quality Visitors • Higher disposable income • Large users of tourism facilities • Require massive manpower support • Boost retail sales in the region • Increase tax revenues
Global MICE Market Main Source Markets The main source markets are the main industrial countries in Europe and NorthAmerica. However, there is significant growth from emerging markets as followings. Main Markets •United States •Germany •United Kingdom •France •Italy •Spain Emerging Markets •Brazil •Russia •India •China
Associations • People have gathered to attend meetings, conventions, and expositions since the ancient times • Mainly for social, sporting, political, or religious purposes
Associations • Associations go back many centuries to the Middle Ages and before • The guilds (small professional societies) in Europe were created during the Middle Ages to secure proper wages and maintain work standards • Associations began in the United States at the beginning of the eighteenth century, when Rhode Island candle makers organized themselves
Types of Associations • An association is an organized body that exhibits some variety of volunteer leadership structure, which may employ an activity or purpose that the leadership shares in common. • The association is generally organized to promote and enhance that common interest, activity, or purpose
Types of Associations • As mentioned before, the Middle Ages found associations in the form of guilds, which were created to ensure proper wages were received and to maintain work standards. • Many of today's associations have their roots in ancient times: • Trade association • Professional association • Medical and scientific association • Religious organizations • Government organizations
Association Meetings • Things at the top of the list of places for an association meeting planner to choose from include the destination’s availability of hotel and facilities, ease of transportation, distance from attendees, transportation costs, and food and beverage
Size and Scope of the Industry • According to the American Society of Association Executives (ASAE) there are about 90,908 trade and professional associations. • Associations spend billions holding thousands ofmeetings and conventions that attract millions of attendees • American Society of Association Executives 23,000 members 6,000 associations at national level Introduction to Hospitality
Size and Scope of the Industry • Associations are the main independent political force for industries such as hospitality, offering the following benefits: • Governmental/political voice • Marketing avenues • Education • Member services • Networking
Key Players in the Industry • Convention Centers • Professional Congress Organizers • Professional Event Organizers • Destination Management Companies • Event Management Companies • Meeting and Event Planners • Tradeshows and expositions • Hotels • Convention and Visitor Bureaus • Incentive Travel
Key Players in the Industry • The major players in the convention industry are convention and visitors bureaus (CVBs), meeting planners and their clients, the convention centers, specialized services, and exhibitions • CVB’s are major participants in the meetings, conventions, and expositions market. • The IACVB describes a CVB as a not-for-profit umbrella organization that represents an urban area and that tries to solicit business or pleasure-seeking visitors.
Key Players in the Industry • Enhance the image of tourism in the local/city area • Market the area and encourage people to visit and stay longer • Encourages associations and others to hold meetings, conventions, and trade shows in the area it represents • Assists associations and others with preparations and lends support • Encourages tourists to partake of the historic, cultural, and recreational opportunities the city or area has to offer
Key Players in the Industry • Primary outcome of the bureau is to generate and increase revenues of a city • A number of bureaus have offices or representatives in many cities or a sales team to make follow-up visits to the leads generated in trade shows • The sales manager will invite the meeting, convention, or exposition organizer to make a familiarization (FAM) trip for a site inspection
Destination Management Companies • Service organizations within the visitor industry that offers a host of programs and services to meet clients’ needs • Initially, a destination management sales manager concentrates on selling the destination to meeting planners and performance improvement companies (incentive houses)
Destination Management Companies • DMCs work closely with hotels; sometimes a DMC books rooms, and another time a hotel might request the DMC’s expertise on organizing theme parties. • A DMC does everything, including airport greetings, transportation to the hotel, VIP check-in, arranging theme parties, sponsoring programs, organizing competitive sports events, and so on, depending on budget.
Meeting Planners • May be independent contractors who contract out their services to both associations and corporations as the need arises or they may be full-time employees of corporations or associations • According to the International Convention Management Association (ICMA), about 212,000 full- and part-time meeting planners work in the United States.
Service Contractors • The individual responsible for providing all of the services needed to run the facilities for a trade show • Hired by the exposition show manager or association meeting planner • The service contractor is a part of the facilities management team, and, to use the facility, the sponsor must use its service contractor.
Types of Meetings • Clinic: Workshop-type educational experience in which attendees learn by doing • Forum: An assembly for the discussion of common concerns • Seminar: A lecture and a dialogue that allow participants to share experiences in a particular field • Symposium: An event at which a particular subject is discussed by experts and opinions are gathered • Workshop: A small group meeting led by a facilitator or trainer
Types of Meetings • The purpose of a meeting is to affect behavior • Meetings are set up according to the wishes of the client. • The three main types of meeting setups are: • Theatre style: • Large audience that does not need notes • Classroom setup: • Meeting setup is instructional • Workshop style • Boardroom setup: • Small numbers of people • Meeting takes place around one block rectangular table
Association Meetings • Every year there are thousands of association meetings that spend millions of dollars sponsoring many types of meetings, including regional, special interest, education, and board meetings
Conventions and Expositions • Conventions are larger meetings with some form of exposition or trade show included • The majority are held in large hotels over a 3-5 day period • A number of associations have one or more conventions per year. • These conventions raise a large part of the association’s budget
Conventions and Expositions • Expositions are events that bring together sellers of products and services at a location where they can show their products and services to a group of attendees at a convention or trade show • Exhibitors are an essential component of the industry because they pay to exhibit their products to the attendees.
Types of Meetings • Annual meetings • Board, committee, seminars and workshops, professional and technical meetings • Corporate meetings, conventions, and expositions • Social, military, educational, religious, and fraternal groups (SMERF) • Incentive meetings
Meeting Planning • Meeting planning includes not only the planning but also the successful holding of the meeting and the post-meeting evaluations • Before a meeting planner can start planning a meeting, a needs analysis is done to determine the purpose and desired outcome of a meeting
Meeting Planning • Needs analysis • Budget • Request for proposal • Site inspection • Selection • Negotiation • Contracts • Pre-meeting activities • Plan agenda • Set budget • Negotiate contracts • On-site activities • Post meetings
Contracts • The contract is a legal document that binds two or more parties • Essential elements: • Offer • Consideration • Acceptance
Conference Event Order • A conference event order has all the information necessary for all department employees to be able to refer to for details of: • the setup (times and layout) • the conference itself (arrival, meal times) • what food and beverages are to be served • and the cost of items so that the billing can be done.