international congress and convention association
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International Congress and Convention Association. Today’s and Tomorrow’s PCO 44 th ICCA Congress & Exhibition, Monday 7 November 2005. iccaworld.com. International Congress and Convention Association. Today’s and Tomorrow’s PCO Panellists: - Sarah Markey-Hamm ICMS Pty Ltd, Australia - PowerPoint PPT PresentationTRANSCRIPT
International Congress and Convention Association
Today’s and Tomorrow’s PCO
44th ICCA Congress & Exhibition, Monday 7 November 2005
iccaworld.com
International Congress and Convention Association
Today’s and Tomorrow’s PCO
Panellists:- Sarah Markey-Hamm ICMS Pty Ltd, Australia
- Julio Urban Idealiza Events, Brazil
Moderator:- Jurriaen Sleijster MCI, Switzerland
iccaworld.com
International Congress and Convention Association
Today’s and Tomorrow’s PCO
PCO views from 3 continents: how we see the futureA lively debate with the audience: how you see the future• How do PCO’s need to change?• What are the biggest challenges?• Which business models?• What do clients want next?
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International Congress and Convention Association
Model for this session:
iccaworld.com
Competitor
Client
Supplier
PCO
International Congress and Convention Association
Model for this session:
• Bold statements about the future• Graphs projecting trends• Lively debate to see if we agree!
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International Congress and Convention Association
Perspective 1: The PCO
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Competitor
Client
Supplier
PCO
International Congress and Convention Association
The PCO:
• Business Model • Staff• Technology• Finances & Fees
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International Congress and Convention Association
The PCO: Business model
• Services: From logistics to knowledge-management• From PCO to Core-PCO to Association Management • More different services• Brand: Increasingly important• Risk-sharing & creating own events versus “simply supplying”
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International Congress and Convention Association
The PCO: Business model
• Size matters: bigger AND smaller
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time
+
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International Congress and Convention Association
The PCO: Business model
• Location: PCO must be close to the client• Location: PCO must be close to the event destination• Groups, partnerships, mergers and acquisitions (national & international)• Purchasing key to success (preferred suppliers, set contracts)
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International Congress and Convention Association
The PCO: Staff
• More educated: “consultants” • Higher salaries for better skills• Fewer staff for same workload• “What’s in it for me?” attitude• International staff is a “must”
iccaworld.com
International Congress and Convention Association
The PCO: Technology
• Less in-house data management• Increasing on-line tools• Do-it-yourself service tools• Cost of IT increasing• IT skills KEY in staff efficiency
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International Congress and Convention Association
The PCO: Finances & Fees
• Price (cost to client) increasingly important• Transparency will kill % margins & kickbacks• Selling added value instead of time: “price per service”• Cash flow: a need for more cash?• Client will shop around more• PCO should be “client-selective”
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International Congress and Convention Association
The PCO: Finance & Fees
• Invoicing: From % to time to added value
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time+
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added value
%$
International Congress and Convention Association
Perspective 2: The Client
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Competitor
Client
Supplier
PCO
International Congress and Convention Association
The Client:
• Sophistication • Needs• The new client
iccaworld.com
International Congress and Convention Association
The Client: Sophistication
• Outsourcing versus in-house• Improved purchasing• Knowledgeable buying• Client staff moves around: ex-colleagues and ex-competitors become clients• Clients increasingly become good references or barriers (they exchange ever more information)
iccaworld.com
International Congress and Convention Association
The Client: Needs
• Specific services rather than package solutions• Will use multiple suppliers• From sole risk to shared risk• Will shop for simple (logistical) solutions…• …but needs consulting & added value (opening for PCO’s who are ahead of the curve!)
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International Congress and Convention Association
The Client: The new client
• Emerging markets• “Between meetings”• Corporates behaving like associations• PCO’s creating their own events
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International Congress and Convention Association
Perspective 3: The Supplier
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Competitor
Client
Supplier
PCO
International Congress and Convention Association
The Supplier:
• Quality & price• Partnerships
iccaworld.com
International Congress and Convention Association
The Supplier: Quality & Price
• PCO’s will increase demand for quality from suppliers: their success is the PCO’s success• Price pressure from client to PCO gets passed on to supplier• Same solution for supplier as for PCO: become an added value (competition on price leads to certain death)
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International Congress and Convention Association
The Supplier: Quality & Price
• PCO’s become more knowledgeable buyers• PCO’s will use purchase agreements and preferred vendor agreements
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International Congress and Convention Association
The Supplier: Partnerships
• Contracts become increasingly important, but…• …building relationships with suppliers is KEY to success (“we’re all in this together!”)• Best network = winning advantage• Suppliers as source of new business
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International Congress and Convention Association
Perspective 4: The Competitor
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Competitor
Client
Supplier
PCO
International Congress and Convention Association
The Competitor:
• The ones you know• The other ones…
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International Congress and Convention Association
The Competitor: The ones you know• The strong ones will get stronger: the battle will be harder• Niche-marketing PCO’s: small and nimble, picking little pieces• Who’s buying who? A new way of competing• The client & his do-it-myself solutions
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International Congress and Convention Association
The Competitor: The ones you know• Competition moves from price to skill to added value
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skill+
_
added value
priceC
time
International Congress and Convention Association
The Competitor: The other ones…• The all-in-one event venues• Convention bureaus who supply PCO services• DMC’s who expand their services• Marketing agencies & PR agencies (ditto)• AV agencies, production companies (ditto)
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International Congress and Convention Association
… and your perspective ?
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Competitor
Client
Supplier
PCO
International Congress and Convention Association
iccaworld.com
Today’s and Tomorrow’s PCO
44th ICCA Congress & Exhibition, Monday 7 November 2005
Thank you!