2007 presentation - michael hughes: "venue

VENUE & DESTINATION MARKETING SURVEY

Objectives

• About the Survey and Respondents; Key Findings

• Citywide Definitions

• Marketing Budgets, Operations and Strategy

• Marketing Support to Clients

• Supply and Demand, Hotel Rates

• Venues and Services; Green Initiatives

• Challenges and Opportunities

About the Respondents and Results

• Conducted in January 2007

• 135 respondents

• 40% are ACME members

• 62% are with venues; 28% CVBs; 10% hotels and other

• Findings broken out for venues, CVBs and all respondents together

• More venues are taking over all their own marketing (becoming similar to CVBs)

• Average Hotel Room Rate in Room Blocks: $135.34

Key Finding and Themes

• More – of everything

• No standard definition of “citywide”

• On average, CVBs market “19 months out”

• Top three success metrics: – 1.) Total number of booked hotel rooms– 2.) Total economic impact– 3.) Hotel community occupancy levels

• Conventions and exhibition attendance grew by growing by about 2 percent in 2006.

Key Finding and Themes

• Average Marketing Budget: Venues: $735,733 – CVBs: $3,523,312

• Over 50% of venues and CVBs bring community leaders into the bid process

• Over 50% of venues and CVBs maintain and incentive fund

• 60% of venues and 93% of CVBs provide show producers with some type of marketing support

• Hotels hold the key – rates are rising; supply tight in many markets

ACME Member?

40%

60%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

Organization Type

62%

28%

3%7%

0%

10%

20%

30%

40%

50%

60%

70%

ConventionCenter

CVB Hotel Other

Definitions of “Citywide Event”

• “Uses more than three hotels.”

• “More than 100,000 attendees.”

• “A single event which utilizes more than 2 hotels.”

• “All hotels in the city are being used for one event.”

• “A meeting that utilizes more than 2 hotels and the convention center.”

• “Broad appeal to all residents in city and surrounding community.”

• “An event that utilizes a large majority of sleeping rooms, convention space and entertainment venues within our city.”

• “A group utilizing the Convention Center and two or more hotels.”

Definition of “Citywide Event”

• “An event using the primary convention center and at least 2 downtown hotels.”

• “2,500 rooms or more peak night.”

• “An event that requires more than 50% of hotel room inventory.”

• “Uses more than 5 hotels.”

• “An event that utilizes one or more "clusters" of hotel facilities to house participants.”

• “A convention center user requiring the use of multiple hotels for its housing needs – no strict definition as to how many hotels, but would state that its more than 2 or 3.”

Definition of “Citywide Event”

• “City wide event fills all of the hotels not just convention hotels. All hotels include limited service.”

•“A group that uses the convention center and more than 3 hotels properties.”

• “An event that impacts all hotels throughout the city/county.”

• “City sponsored, open to general public.”

• “Multiple hotels used.”

• “Any Event that uses 3 or more hotels for their program.”

• “600+ rooms x2 nights peak, at 2+ hotels in convention district, using convention center.”

Definition of “Citywide Event”

“An event that books hotels & conference rooms "Citywide”.

Number of “Citywides”

Average: 21 shows

Median: 14 shows

High: 120 shows

Low: 1 show

(excluding “0”)

Booking Window Controlled by CVB “Months Out”

19

18

17

18

18

18

18

18

19

19

19

19

Average Median

Note: Excluding “0”

Who Markets the Overall Destination

2%

70%

28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Convention Center CVB Both Jointly

Who Markets the Convention Center

24%

13%

63%

0%

10%

20%

30%

40%

50%

60%

70%

Convention Center CVB Both Jointly

Who Develops the Convention Center’s Creative Marketing Materials

51%

12%

38%

0%

10%

20%

30%

40%

50%

60%

Convention Center CVB Both Jointly

How is Success Measured?

Venues CVBs All Respondents

Total number of booked hotel rooms

79% 86% 81%

Total economic impact 68% 64% 67%

Hotel community occupancy levels

38% 64% 46%

Total number of visitors 36% 57% 43%

Convention center profit/loss

45% 43% 44%

Visitor-related tax revenues

30% 54% 39%

Public relations 21% 29% 24%

Bureau profit/loss 2% 18% 8%

Hotel community gross sales or profit

7% 7% 8%

Do not measure 11% 0% 7%

Other 16% 14% 18%

Marketing Budget Size (Excluding High)

Venues: • Average: $735,733• Median: $250,000

CVBs• Average: $3,523,312• Median: $2,173,458

All Respondents• Average: $1,756,536 • Median: $500,000

How Marketing Budgets are Spent

Venues CVBs

Field Sales Force 14.7% 17.9%

Industry Tradeshows 16.0% 15.5%

Collateral Material 13.5% 16.3%

Trade Magazines 17.3% 15.6%

Consumer Media 9.1% 9.1%

Web site(s) 6.4% 7.7%

Research 1.1% 4.0%

Direct Mail 4.1% 3.7%

Fam Trips 3.7% 3.3%

Third-parties 2.0% 2.1%

List brokers 0.3% 0.5%

Other 11.8% 4.3%

Total 100% 100%

Which Mediums Drive Most Leads

Venues CVBs All Respondents

Industry shows, conventions

63% 82% 70%

Field sales force 52% 75% 61%

Fam trips 41% 32% 39%

Web site 43% 29% 38%

Collateral material 21% 11% 18%

Third-parties 16% 18% 17%

Trade magazines 16% 7% 14%

Direct mail 9% 11% 10%

Research 14% 11% 12%

Consumer media 11% 7% 9%

List brokers 4% 0% 2%

Other 9% 7% 8%

Which Mediums are Receiving More Spending (10%+)

Venues CVBs All Respondents

Industry shows, conventions

43% 65% 50%

Web site 33% 57% 40%

Field sales force 37% 35% 36%

Trade magazines 22% 22% 23%

Fam trips 14% 22% 21%

Collateral material 22% 9% 19%

Direct mail 12% 13% 15%

Third parties 16% 9% 14%

Consumer media 10% 17% 13%

Research 8% 13% 11%

List brokers 4% 0% 3%

Other 8% 26% 14%

Online Marketing: What are You Doing?

Venues CVBs All Respondents

Dedicated web site 90% 75% 86%

E-newsletters 42% 79% 57%

Email blasts 44% 64% 52%

Search marketing, key words

29% 57% 39%

Banner ads on other web sites

37% 43% 35%

Online hotel bookings, housing

8% 54% 27%

B2B social networking

19% 36% 26%

Online video 10% 57% 25%

Webcasts 2% 21% 8%

Other 6% 14% 8%

Online Marketing: Which Activities Provide Best Leads

Venues CVBs All Respondents

Dedicated web site 74% 67% 71%

Email blasts 26% 33% 28%

Search marketing 14% 26% 21%

B2B social networking

12% 19% 15%

E-newsletters 4% 33% 14%

Online hotel bookings

4% 15% 11%

Banner ads on other web sites

6% 11% 7%

Online video 2% 11% 6%

Webcasts 0% 4% 1%

Other 12% 4% 9%

Online Marketing: Comparison (All Respondents)

All Respondents - Online Marketing

All Respondents - Provides Best Leads

Dedicated web site 86% 71%

E-newsletters 57% 14%

Email blasts 52% 28%

Search marketing, key words 39% 21%

Banner ads on other web sites 35% 7%

Online hotel bookings, housing 27% 11%

B2B social networking 26% 15%

Online video 25% 6%

Webcasts 8% 1%

Other 8% 9%

Have You Shifted Any Print Budget Online?

19%

44%

29%

81%

56%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Venues CVBs All Respondents

Yes

No

Do You Involve Local Community Leaders in Bids?

Venues CVBs All Respondents

Yes 55% 50% 52%

No 5% 4% 5%

Depends on type of business

34% 43% 37%

Depends on leader 4% 0% 3%

We don’t involve local leaders in bids

2% 4% 3%

Are You Undergoing a Re-Branding?

Venues CVBs All Respondents

Yes, we conducted this in 2006

31% 18% 25%

Yes, this is underway for 2007

18% 32% 24%

Planned for 2008 13% 7% 10%

No 38% 43% 41%

When was Your Last Re-Branding Process?

Venues CVBs All Respondents

Before 1970s 2% 0% 1%

1970s 0% 0% 0%

1980s 2% 5% 3%

1990 to 1994 17% 9% 14%

1995 to 1999 15% 27% 20%

2000 15% 9% 12%

2001 6% 5% 7%

2002 2% 5% 3%

2003 23% 9% 17%

2004 8% 18% 10%

2005 8% 14% 10%

2006 2% 0% 4%

Minimum Hotel Room Night Requirement

• Average: 876

• Median: 600

• High: 3,000

• Low: 150

Do You Maintain Incentive Funds?

60%

54% 53%

32%

43%38%

9%4%

9%

0%

10%

20%

30%

40%

50%

60%

70%

Venues CVBs All Respondents

Yes

No

Don't know

How are Incentive Funds Allocated? Venues CVBs All Respondents

To only select event producers with a certain combination of a high level of historical economic impact and total hotel room nights

65% 73% 68%

To all event producers with a certain level of historical total hotel room nights

29% 7% 21%

To event producers that will sign long term agreements to anchor to our city or to add the city to a set rotation pattern

23% 20% 21%

To event producers that ask for discounts and incentives from the bureau or venue

19% 20% 17%

To all event producers with a certain level of historical economic impact

16% 7% 13%

To all event producers with a certain level of historical attendance

10% 0% 6%

Other 16% 20% 17%

What is the Source of the Incentive Funding

Venues CVBs All Respondents

CVB budget item 42% 73% 51%

Tax revenues 32% 33% 32%

A special fund allocated by the hotel and hospitality

23% 13% 21%

Municipal (or other) governmental general fund

13% 13% 13%

Convention Center operating income or reserves

10% 7% 9%

Other 16% 0% 11%

Average Number of Salespeople

Venues:• Average: 4.1 full-time• Median: 3 full-time

• Average: 1.1 Part-time• Median: 1.0 part-time

CVBs:• Average: 7 full-time• Median: 5.5 full-time

• Average: 1.2 Part-time• Median: 1 part-time

How are Sales Territories Set Up

Venues CVBs All Respondents

Industry sector 52% 75% 60%

Geographic regions

26% 43% 34%

Event/client type 28% 18% 25%

Event/client size 20% 11% 20%

Booking window, event schedule

22% 0% 15%

Other 9% 4% 8%

Do You Have a Satellite Marketing Office in Another City?

18%

50%

28%

82%

50%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Venues CVBs All Respondents

Yes

No

Satellite Marketing Office Staff and Budget

Venue • Average: $251,200; 2.9 staff • Median: $150,000; 2 staff

CVB• Average: $707,500; 4.3 staff• Median: $600,000; 3 staff

Has Free Exhibition Space Been Offered at Least Once in the Past Year?

46%

69%

52%54%

31%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Venues CVBs All Respondents

Yes

No

Hotel Supply, Rates and Revenues

1.9%

6.0%

2.3%

5.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Survey: RoomGrowth

Survey: RoomRate Growth

1987-2005Room Growth

CAGR

1987-2005 RevCAGR

Source: ACME, Tradeshow Week Research, Merrill Lynch

Survey results match historical supply growth and rate / revenue trends.

Do You Provide Attendance Marketing Support?

60%

93%

72%

40%

7%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Venues CVBs All Respondents

Yes

No

What Type of Attendance Marketing Support CVBs

1. Public relations support: 96%

2. Adding event information to the CVB and/or venue web site(s): 96%

3. Liaison with city, state, regional affiliated groups or government agencies: 83%

4. Enhanced signage in airport(s), around the city before the event: 79%

5. Hotel discounts/rebates: 63%

6. Emails to potential local attendees: 58%7. Venue discounts/rebates: 58%8. Mailings to potential local attendees: 46%9. Entertainment, sports, cultural event or facility discounts: 42%10. Assistance securing event speakers, keynoters: 42%11. Cash payments/rebates/marketing support fees: 38%12. Travel and/or lodging incentives, discounts: 29%13. Advertisements for the event paid for by the CVB or venue: 25%14. Marketing to international attendees: 13%15. Telemarketing to potential attendees: 8%16. Other: 29%

What Type of Attendance Marketing Support Venues

1. Public relations support: 87%

2. Adding event information to the CVB and/or venue web site(s): 71%

3. Enhanced signage in airport(s), around the city before the event: 58%

4. Liaison with city, state, regional affiliated groups or government agencies: 52%

5. Emails to potential local attendees: 45%

6. Venue discounts/rebates: 42%7. Mailings to potential local attendees: 39%8. Hotel discounts/rebates: 29%9. Entertainment, sports, cultural event or facility discounts: 29%10. Assistance securing event speakers, keynoters: 19%11. Advertisements for the event paid for by the CVB or venue: 16%12. Marketing to international attendees: 16%13. Travel and/or lodging incentives, discounts: 16%14. Cash payments/rebates/marketing support fees: 13%15. Telemarketing to potential attendees: 3%16. Other: 23%

What Type of Attendance Marketing Support All Respondents

1. Public relations support: 89%

2. Adding event information to the CVB and/or venue web site(s): 81%

3. Liaison with city, state, regional affiliated groups or government agencies: 67%

4. Enhanced signage in airport(s), around the city before the event: 65%

5. Venue discounts/rebates: 49%

6. Emails to potential local attendees: 46%7. Hotel discounts/rebates: 46%8. Mailings to potential local attendees: 38%9. Entertainment, sports, cultural event or facility discounts: 33%10. Assistance securing event speakers, keynoters: 30%11. Cash payments/rebates/marketing support fees: 22%12. Travel and/or lodging incentives, discounts: 21%13. Advertisements for the event paid for by the CVB or venue: 19%14. Marketing to international attendees: 14%15. Telemarketing to potential attendees: 6%16. Other: 24%

Budget for Attendance Marketing Support

Venues: • Average: 85,333• Median: $50,000

CVBs• Average: $137,000• Median: $25,000

All Respondents• Average: $112,781• Median: $27,500

Did the Convention Center Raise Hall Rates in 2006?

35%

42% 42%

65%

58% 58%

0%

10%

20%

30%

40%

50%

60%

70%

Venues CVBs All Respondents

Yes

No

Will Hall Rates Rise Again in 2007?

38%42% 42%

62%58% 58%

0%

10%

20%

30%

40%

50%

60%

70%

Venues CVBs All Respondents

Yes

No

Does the Venue Offer No-Compete Clauses

54%

13%

46%46%

87%

54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Venues CVBs All Respondents

Yes

No

Have New Services Been Offered by Venue or CVB?

50%

48%

49%

50%

52%

51%

46%

47%

48%

49%

50%

51%

52%

53%

Venues CVBs All Respondents

Yes

No

New Services Being Offered by Venue or CVB?

Besides attendance promotion, some of the most common relate to convention centers and these include:

• Adding or enhancing business centers

• Expanding greeter, concierge and VIP desk programs

• Offering a single point of contact for all services

• Online housing

• Expanding special taxi and bus departure areas

• Valet parking at the venue

• Video conferencing services

• Wireless internet

• Streaming video for attendance building

Has Your City Instituted City-Wide Green Initiatives

29%

44%

32%

44%

37%

45%

27%

19%23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Venues CVBs All Respondents

Yes

No

Don't know

Does the Venue have Green Initiatives?

53%50%

52%

38%

23%

34%

9%

27%

14%

0%

10%

20%

30%

40%

50%

60%

Venues CVBs All Respondents

Yes

No

Don't know

Have Green Initiatives Helped Win Business?

17%

39%

23%

68%

35%

58%

15%

27%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Venues CVBs All Respondents

Yes

No

Don't know

Has Lack of Green Initiatives Lost Business?

9% 8% 8%

71%

64%

71%

20%

28%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Venues CVBs All Respondents

Yes

No

Don't know

Are You Going for LEED Certification? (Leadership in Energy and Environmental Design)

23%

15%18%

49%

33%

45%

28%

52%

37%

0%

10%

20%

30%

40%

50%

60%

Venues CVBs All Respondents

Yes

No

Don't know

Biggest Challenges

Besides concerns about being a second or third tier city, budgets, exhibition space size and quality, and number of hotel rooms, the main challenges are:

• Available dates – “everyone wants the same window for dates”

• Breaking through to reach decision makers

• Building destination awareness or trying to change perception

• Getting meeting planners to visit the market

• Helping event planners to market the destination

• Differentiating from competition – “having a unique message”

• Third-parties that are between the client and the venue/destination/hotels

• Venue and CVB relationships

Biggest Opportunities

• Marketing affordability and safety – especially in second tier markets

• Continued economic development

• New hotel development, new venues and expansions

• Healthy hotel tax revenues

• Enhancing customer service

• Online marketing initiatives

• Customized, customer-specific marketing

• Strong face-to-face marketing and meetings industry

Biggest Challenges are the Opportunities

Branding, reaching event planners, hotel issues and forming a cohesive group of citywide partners… Survey respondent quote:

“Developing and communicating those one or two key descriptors that define our city's great overall appeal and attractiveness as an attendance draw. As hotel transient business has picked up, the availability/size of room blocks has also become more challenging.”

About the Survey

• All ACME Members will be sent a full copy of the survey in March

• The full survey has more information than in this PowerPoint

• Q&A

About Michael Hughes

• Associate Publisher & Director of Research Services, Tradeshow Week

• As head of Tradeshow Week’s Custom Research, Michael produces proprietary research, consulting and marketing projects for leading exhibition industry organizations around the world. He works closely with exhibition industry leaders, corporate exhibitors, entrepreneurs, investors and real estate developers to provide high-value strategic information, analysis and recommendations. His client’s include nearly all industry leaders in every segment of the industry as well as leaders in the investment and consulting community. Michael is frequently quoted by major newspapers and national magazines such as The Chicago Tribune; The Los Angeles Times; Newsweek; The New York Times; and The Wall Street Journal. In January of 2003, he was selected as a “Person to Watch” by min’s btob newsletter. Since 1999, Michael has been a presenter at over 60 industry conferences. He is also the research director and editor of Tradeshow Week’s syndicated Executive Outlook research surveys.

• Tel: (480) 483-4471

• Email: mhughes@reedbusiness.com