chicago’s loss is another orlando gain

© 2011, Educational Institute

Chicago’s Loss is another Orlando Gain

http://www.occc.net/default.asp


Chapter 4 Selling the Association Market

Convention Management and ServiceEighth Edition

(478TXT or 478CIN)

Courtesy of Inverness Hotel and Conference Center


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

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• 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.

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© 2011, Educational Institute 5

The Meetings Market by Total Expenditures

Total Direct Spending: $122.31 Billion

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.


The Meetings Market by Number of Meetings


The Meetings Market by Attendance


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)


What Association Meeting Planners Look For

Adequate exhibit space—Should be close to housingAttractive 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

(continued)


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)



• 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.

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Factors Important to State and Regional Associations

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Kinds of Association Meetings

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

(continued)


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


Daily Meeting Pattern of Associations

Starting Day of Meeting Percentage of Total Market

Sunday 21.1%

Thursday 17.5%

Friday 16.0%

Wednesday 15.0%

Monday 12.6%

Tuesday 9.5%

Saturday 8.3%


Monthly Meeting Pattern of Associations

Five months with the most conventions:1. October2. May3. April4. June5. September

Five months with highest convention attendance:1. October2. September3. March4. February5. January


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)


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)


Courtesy of Crowne Plaza Hotels


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)


Average Duration of Association Meetings

Duration of Meeting Percentage of Total Market

1 Day 4.4%

2 Days 16.5%

3 Days 36.2%

4 Days 22.6%

5 Days 12.8%

6 Days 4.5%

7 Days 2.0%

8 Days 1.0%


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)


Association Meeting Decision-Makers

• Association director • Association president and officers• Committee chairperson• Board of directors


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)


• 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

Association Management Companies


The AssociationManagement Companies

http://www.cvent.com/

http://www.helmsbriscoe.com/

http://www.maritz.com/About-Maritz/Our-Businesses/Travel.aspx


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

(continued)

Association Director, President, and Other Officers


Committee Chair, Board of Directors,and Local Influences

Committee Chair• Sometimes gets involved in initial suggestion/screeningBoard of Directors• Usually have power of approvalLocal 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


Time for a break…

chicago’s loss is another orlando gain

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