rob davidson centre for tourism university of westminster the m.i.c.e. industry an introduction
TRANSCRIPT
Rob DavidsonCentre for Tourism
University of Westminster
THE M.I.C.E. INDUSTRYAN INTRODUCTION
Rob DavidsonCentre for Tourism
University of Westminster
THE USES OF BUSINESS EVENTS
EDUCATEEDUCATE DEBATEDEBATE NEGOTIATENEGOTIATE INITIATEINITIATE MOTIVATEMOTIVATE CELEBRATECELEBRATE
Rob DavidsonCentre for Tourism
University of Westminster
TYPES OF BUSINESS EVENTS
Individual business travelIndividual business travel MeetingsMeetings ExhibitionsExhibitions Incentive travelIncentive travel Corporate hospitality Corporate hospitality … … but two or more of these elements can but two or more of these elements can
be combined in a single event: be combined in a single event: concentives !concentives !
Rob DavidsonCentre for Tourism
University of Westminster
TERMINOLOGY
M.I.C.E. ????M.I.C.E. ???? Business tourismBusiness tourism Business events.Business events.
Rob DavidsonCentre for Tourism
University of Westminster
Meetings and Conferences 1Demand
Rob DavidsonCentre for Tourism
University of Westminster
DEMAND FOR CONFERENCES
The demand for meetings is very varied in terms of:
- sizes - length - purpose
But the objective is usually:- To educate, to motivate, to provide
opportunities for networking.
Rob DavidsonCentre for Tourism
University of Westminster
CORPORATE DEMAND
Dominates in terms of numbers of meetings WHY hold meetings outside company
offices ? Internal meetings- Training sessions- Strategy meetings External meetings- Shareholders meetings Internal AND external meetings- Product launches
Rob DavidsonCentre for Tourism
University of Westminster
CORPORATE DEMAND
Main sectors =
Oil, gas and petrochemicals Medical and pharmaceuticals Computing and telecommunications Engineering and manufacturing Financial and professional services Retail and wholesale distribution Travel and transport
Rob DavidsonCentre for Tourism
University of Westminster
ASSOCIATION DEMAND
(societies, clubs, federations ….)
Professional / trade associations
Local / regional / national / international
Rob DavidsonCentre for Tourism
University of Westminster
OTHER TYPES OF DEMAND
Government Trade unions Hobbies Religious The S.M.E.R.F. market:
Social, Military, Educational, Religious, Social, Military, Educational, Religious, FraternalFraternal
Rob DavidsonCentre for Tourism
University of Westminster
ASSOCIATION DEMAND COMPARED WITH CORPORATE DEMAND
Generally larger Of longer duration Lower daily spend per delegate More likely to encourage partners to
attend
Rob DavidsonCentre for Tourism
University of Westminster
ASSOCIATION DEMAND COMPARED WITH CORPORATE DEMAND
More likely to change destinations A more complex decision-making
process More likely to use the bids system
SUMMER INSURANCE & REINSURANCE DAYSSOPOT. 15 – 17 JUNE 2009
Rob DavidsonCentre for Tourism
University of Westminster
EDEN 2009 Annual Conference: INNOVATION IN LEARNING COMMUNITIES ,10-13 June 2009, Gdansk
Rob DavidsonCentre for Tourism
University of Westminster
4-5 June 2009 GDYNIA hosted the international conference: “Always Active” – promoting a healthy lifestyle for elderly people
Rob DavidsonCentre for Tourism
University of Westminster
THE IMPACTS OF CONFERENCES
ECONOMIC IMPACTSECONOMIC IMPACTS SOCIAL / CULTURAL IMPACTSSOCIAL / CULTURAL IMPACTS ENVIRONMENTAL IMPACTSENVIRONMENTAL IMPACTS KNOWLEDGE TRANSFERKNOWLEDGE TRANSFER THE EXPERIENCE ECONOMYTHE EXPERIENCE ECONOMY
Rob DavidsonCentre for Tourism
University of Westminster
Rob DavidsonCentre for Tourism
University of Westminster
ECONOMIC TRENDS
A buyers’ market: over-supply of meetings venues and destinations
Planners negotiating harder: to get more value for their money
Economic uncertainty means shorter lead times (corporate market)
Rob DavidsonCentre for Tourism
University of Westminster
SOCIAL TRENDSConferences have changed from this
Rob DavidsonCentre for Tourism
University of Westminster
to this:
Rob DavidsonCentre for Tourism
University of Westminster
TECHNOLOGY TRENDS
Use of the Internet:- For site selection- For destination and venue promotion- For enhancing the conference experience Wireless everywhere: free Wi-Fi Radio Frequency Identification
Rob DavidsonCentre for Tourism
University of Westminster
Meetings and ConferencesSupply & Intermediaries
Rob DavidsonCentre for Tourism
University of Westminster
Purpose-built conference centres
Rob DavidsonCentre for Tourism
University of Westminster
Purpose-built conference centres
ADVANTAGESADVANTAGES Space for large Space for large
eventsevents TechnologyTechnology ExpertiseExpertise Room for exhibitionsRoom for exhibitions
DISADVANTAGESDISADVANTAGES Growing number of Growing number of
smaller eventssmaller events
Rob DavidsonCentre for Tourism
University of Westminster
Hotels
Rob DavidsonCentre for Tourism
University of Westminster
Hotels
ADVANTAGESADVANTAGES Everything under Everything under
one roofone roof All-inclusive quotesAll-inclusive quotes Airport hotels: time-Airport hotels: time-
savingsaving American American
preferencepreference
DISADVANTAGESDISADVANTAGES Mixing business and Mixing business and
leisure guestsleisure guests Can appear too Can appear too
luxuriousluxurious Unsuitable for very Unsuitable for very
large eventslarge events Lack of flexibilityLack of flexibility
Rob DavidsonCentre for Tourism
University of Westminster
Academic venues
Rob DavidsonCentre for Tourism
University of Westminster
Academic venues
ADVANTAGESADVANTAGES Good value-for-Good value-for-
moneymoney Learning ambienceLearning ambience Everything on siteEverything on site Ancient/modernAncient/modern Range of sizes of Range of sizes of
meetings roomsmeetings rooms
DISADVANTAGESDISADVANTAGES Lack of comfort and Lack of comfort and
facilitiesfacilities Limited to vacation Limited to vacation
periodsperiods Large sites: Large sites:
problems of problems of orientationorientation
Rob DavidsonCentre for Tourism
University of Westminster
Management training centres
Rob DavidsonCentre for Tourism
University of Westminster
Management training centres
ADVANTAGESADVANTAGES Businesslike Businesslike
ambianceambiance Few distractions: Few distractions:
more focussedmore focussed
DISADVANTAGESDISADVANTAGES No grading schemeNo grading scheme
Rob DavidsonCentre for Tourism
University of Westminster
Unusual venues
Rob DavidsonCentre for Tourism
University of Westminster
Unusual venues
ADVANTAGESADVANTAGES MemorableMemorable Novelty valueNovelty value Cruise ships: all-in-Cruise ships: all-in-
one priceone price
DISADVANTAGESDISADVANTAGES Restrictions due to Restrictions due to
primary functionprimary function Unlikely to be used Unlikely to be used
several times by the several times by the same clientsame client
Rob DavidsonCentre for Tourism
University of Westminster
INTERMEDIARIES
Rob DavidsonCentre for Tourism
University of Westminster
Intermediaries working on behalf of buyers
Professional conference organisers Help in defining objectives Advice on taxation liabilities Sponsorship Registration processing systems Meetings with organising committees
Rob DavidsonCentre for Tourism
University of Westminster
Intermediaries working on behalf of buyers
Venue Finding Agencies Help in identifying suitable venues Shortlist Work on commission
Rob DavidsonCentre for Tourism
University of Westminster
Intermediaries working on behalf of buyers
Destination Management Companies “A professional services company,
possessing extensive local knowledge, expertise and resources, specialising in the design and implementation of events, activities, tours, transportation and programme logistics”
Association of Destination Management Executives (ADME)
Rob DavidsonCentre for Tourism
University of Westminster
DMC services
Creative proposals for special events within the meeting
Guest tours, pre- and post-conference tours VIP amenities and transportation Shuttle services Meet and greet Entertainment Accommodation (housing) Registration services ET CETERA
Rob DavidsonCentre for Tourism
University of Westminster
Intermediaries working on behalf of buyers
Destination Management Companies INBOUND Extensive and detailed knowledge of the destination Can be in competition with PCOs
Rob DavidsonCentre for Tourism
University of Westminster
Intermediaries working on behalf of buyers Conference production companies For high-profile or technically-elaborate events Build the conference set AV support and special effects Writing scripts and training speakers
Rob DavidsonCentre for Tourism
University of Westminster
.
Rob DavidsonCentre for Tourism
University of Westminster
Destination Marketing
Rob DavidsonCentre for Tourism
University of Westminster
Convention & Visitor Bureaux (CVBs)
Intermediaries working on behalf of suppliers
Exist at different geographical levels: local, regional, national …
Partnerships between public sector and private sector, and funded by both
Rob DavidsonCentre for Tourism
University of Westminster
CVB funding
Public sector contributions (taxation) Private sector membership fees: The CVB must be able to demonstrate
to its members a significant return on investment
Rob DavidsonCentre for Tourism
University of Westminster
CVB services: 2 types -
Marketing activities, to raise the profile of the destination
Services for conference planners who choose the destination as the location for their event
Rob DavidsonCentre for Tourism
University of Westminster
CVB marketing activities
Advertising in the trade press Attending specialist exhibitions:
EIBTM, IMEX, Confex Organising familiarisation trips and
press trips Running ambassador programmes Producing promotional videos, CD-
ROMs, brochures, leaflets …
Rob DavidsonCentre for Tourism
University of Westminster
CVB marketing activities
Running direct marketing campaigns (direct mail)
Dealing with media enquiries Public relations
Rob DavidsonCentre for Tourism
University of Westminster
Business tourism marketing and leisure tourism marketing comparedMarketing
activity Business tourism
Leisure tourism
Advertising campaigns
Aimed at decision-makers: PCOs, Incentive Houses, etc
Aimed at tour operators, travel agencies and consumers
Exhibitions Attended by intermediaries: corporates/associations. ‘Hosted buyers’
Attended by tour operators, travel agents and consumers
Familiarisation /press trips
For decision-makers (buyers) and the trade press
For travel agents, the trade press and the general press
Rob DavidsonCentre for Tourism
University of Westminster
Business tourism marketing and leisure tourism marketing comparedMarketing
activity Business tourism
Leisure tourism
Familiarisation /press trips
For decision-makers and the trade press
For travel agents, the trade press and the general press
Ambassador programmes
For university academics, prominent scientists, & members of the business community
Not used
Rob DavidsonCentre for Tourism
University of Westminster
CVB services for conference planners
A ‘one-stop shop’ for the destination Impartial advice and assistance (but…) Bid documents Venue selection Accommodation booking for delegates Coordination of services (with DMC)
Rob DavidsonCentre for Tourism
University of Westminster
CVB services for conference planners
Provision of ‘welcome services’ at major points of entry
Promotional and PR support to maximise delegate numbers
Civic welcome/reception Provision of tourist information
© Rob Davidson + Rachel Ley
Conference budgeting
Effective financial planning is Effective financial planning is keykey to a successful to a successful conferenceconference
A conference planner must be able to:A conference planner must be able to: Prepare and work to financial budgetsPrepare and work to financial budgets Operate control systems to ensure the viability of a Operate control systems to ensure the viability of a
congresscongress Maximise revenue and minimise cost.Maximise revenue and minimise cost.
© Rob Davidson + Rachel Ley
Conference budgeting To understand a budget, the To understand a budget, the financial philosophyfinancial philosophy
and and objectivesobjectives of the client organisation must be of the client organisation must be
understoodunderstood..CorporateCorporate:: Conferences = a cost to the businessConferences = a cost to the business Objectives are business relatedObjectives are business related Costs not to exceed BudgetCosts not to exceed Budget
Association:Association: Income to be > or = to expenditure.Income to be > or = to expenditure.
© Rob Davidson + Rachel Ley
Conference budgeting Establish areas for potential Establish areas for potential expenditure expenditure and and
sources of sources of incomeincome Create a monitoring frameworkCreate a monitoring framework Set a control mechanism to Set a control mechanism to maximise revenue maximise revenue and and
minimise cost minimise cost Client or planner can set and control the budgetClient or planner can set and control the budget Budgetary constraints should be sharedBudgetary constraints should be shared There should be no surprises!There should be no surprises!
© Rob Davidson + Rachel Ley
8. Conference budgetingFactors influencing the budget:Factors influencing the budget: Size and scope of the congressSize and scope of the congress HistoryHistory LocationLocation DatesDates Programme content and structureProgramme content and structure Food and beverageFood and beverage Audio visual requirementsAudio visual requirements Social programme.Social programme.
© Rob Davidson + Rachel Ley
Conference budgeting
Key budgeting skillsKey budgeting skills Ability to use experience or intelligent Ability to use experience or intelligent
‘guesstimates’ to project costs‘guesstimates’ to project costs Ability to secure competitive costs from Ability to secure competitive costs from
supplierssuppliers Ability to conceive the ‘Big Picture’ to Ability to conceive the ‘Big Picture’ to
project contingency allowances.project contingency allowances.
© Rob Davidson + Rachel Ley
Conference budgetingCore elements of the budgetCore elements of the budget Fixed costsFixed costs = things that the congress has to = things that the congress has to
havehave Variable costsVariable costs = per person cost = per person cost RevenueRevenue : from various sources : from various sources
YOUR ASSIGNMENT
The Polish Dental Society (The Polish Dental Society (POLSKIE POLSKIE TOWARZYSTWO STOMATOLOGICZNE) will TOWARZYSTWO STOMATOLOGICZNE) will hold its 2010 conference in Gdansk. You are in hold its 2010 conference in Gdansk. You are in charge of planning the budget for this eventcharge of planning the budget for this event
What are the FIXED costs and VARIABLE What are the FIXED costs and VARIABLE costscosts for this conference?for this conference?
What are the possible What are the possible sources of revenue sources of revenue for this for this event ?event ?
What What difficultiesdifficulties do you anticipate, in managing do you anticipate, in managing the budget for this event?the budget for this event?
Rob DavidsonCentre for Tourism
University of Westminster