Meetings & Conventions - Understanding the Value to Destinations


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Presentation for Travel & Tourism Research Association (TTRA) 2012 Annual Convention

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Meetings & Conventions - Understanding the Value to Destinations

  2. 2. The Meetings Market Scott Warren Research Analyst RRC Associates
  3. 3. •Formerly METROPOLL•National Study of Meeting Planners•Every 2 Years Since 1983•Additional Custom Meeting PlannerStudies for various DMOs•Part of the STR family of companies
  4. 4. Understanding the Meetings Market:•How is a Meeting Planner Different From aLeisure Traveler?•What is Important to a Meeting Planner?•Trends in the Meetings Market•Perception vs. Reality and BenchmarkingInitiatives
  5. 5. Meeting Planners and Leisure Travelers•Atlanta•Dallas•Hawaii•Indianapolis•Seattle
  6. 6. Meeting Planners and Leisure Travelers
  7. 7. Considerations in Site Selection
  8. 8. How Meeting Planners Select Sites
  9. 9. How Meeting Planners Use Information
  10. 10. Likelihood to RecommendHow likely are you to recommend the meetingsite where you held your largest meeting in thepast 12 months to a colleague?•Promoter(rating a 9 or 10): 58%•Detractor (rating 0 to 6): 17%
  11. 11. Tracking and Benchmarking•Social Media and Internet Use AmongMeeting Planners•LEED Certification of Convention Centers
  12. 12. Case 1: Web Use•Internet Sources Which Are Very Important inSite Selection: 2009 2011Destination Web Site 38% 54%Hotel Rating/User Review Site 41% 46%Convention Center Web Site 38% 44%
  13. 13. Case 1: Web Use•Visibility Among a Destination’s Own ClientsSeven Destinations are Included in This AverageAverage Marketing Exposure 2009Viewed Destination’s Website 49%Saw Internet Ads 35%Viewed Facebook Page 4%
  14. 14. Case 1: Web Use•So Is The Average Destination More Visible Onthe Internet? Average Marketing Exposure 2009 2011 Viewed Destination’s Website 10% 10% Saw Internet Ads 12% 14% Viewed Facebook Page n/a 1%
  15. 15. Perception vs. Reality•Case 2: LEED Certifications“Green Certified” Facility
  16. 16. Perception vs. Reality“Green Certified” FacilityAmong 4 Destinations with LEED Certifications:Average Percentage of Meeting Planners Amonga National Sample Recognizing a Certification: 10%Average among own clients: 43%
  17. 17. Take Away Points•Meetings Planners are (Somewhat) DifferentFrom Leisure Travelers•Information Needs and Use of Meeting PlannersDiffers from Leisure Travelers in SignificantWays•Benchmarking Perceptions and Tracking ThemOver Time Among Clients and Prospects
  18. 18. Victoria Isley, Chief Operating Officer @victoriaisleyPassion | Impact | Innovation
  19. 19. ORGANIZATIONAL OVERVIEW OUR MISSION OUR BRAND PROMISE OUR VALUES OUR CAUSE DMAI advocates for the professionalism, DMAI is the passionate advocate and DMAI is committed to the following DMAI exists to protect and advance the effectiveness and significance of definitive resource for official destination core values: Innovative, success of destination marketing. destination marketing organizations marketing organizations and professionals Transparent, Responsive, Inclusive worldwide. worldwide. DMAI cultivates content and a community for DMOs that makes them passionate about what they have to gain. ADVANCE THE ADVOCATE FOR THE PROTECT & LEVERAGE DMO PROFESSIONAL DMO INDUSTRY ASSOCIATION RESOURCES 1.1 Professional Development 2.1 At Home 3.1 DMO Members 1.2 Career Development 2.2 In the Meetings Market 3.2 Allied Members/Sponsors 1.3 Peer-to-Peer Networking 2.3 In the Consumer Market 3.3 Leadership/Governance 3.4 Professional Management 19
  21. 21. 1.8  million  Meetings in the U.S.  $263 billion In spending 1.7 million Jobs created  Source: Convention Industry Council Economic Significance of Meetings to the US Economy
  22. 22. 10:1 ROI of business travel29%of new sales depend on business travel50%Prospects that become customerswith meeting in person40%would lose customers to competitorswithout face-to-face meetings
  23. 23. MANY INFLUENCES ON PLANNERS DESTINATION BRAND DMO INFLUENCE Prospecting/Research Sales (See Next Slide) Sales & Relationships Marketing Marketing & PR Relationships Votes DMO INFLUENCE Board of Delegates/ Consumer Marketing Directors Attendees Attendance Promotion Meeting Destination Popularity Planner/ Client Hotel Rates Convention Center Convention Center Rental & Hotels Facilities/ Services Cost Destination Service Transportation/Shuttle Costs Venues
  24. 24. SALES PROCESS Prospect: empowerMINT empowerMINT Association Databases Corporate Quantify ROI: Event Government Impact Calculator Diversity Retention Research Qualifying Proposals Secured Business: Presentations Occurs within 1 year Bids or up to Multi-Year 10 years out Agreements Votes Sales Meeting Planners Leads Third Party Planners - Experient, Conference Direct, Smith Bucklin, etc.Review Leads with Community PartnersHotels, Convention CenterEvaluate Incentives: Event Impact Calculator
  25. 25. Exclusively About DMO
  26. 26. 2011 DMO MINT Reporting 2500 2000# of Events Reported 1500 1000 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Bookings Histories 2010 1106 1039 1057 1406 1140 1367 1522 1369 2011 2234 1344 1967 1401 1364 1706 2018 1719 Bookings Histories 51% Increase YOY 27% Increase YOY
  28. 28. WHERE WE’VE BEEN Attendees X Magical Number = Direct $pending
  29. 29. DMAI’S EVENT IMPACT CALCULATOR What we heard…. • Localized • Credible • Annualized • Integrated
  30. 30. DMAI’S EVENT IMPACT CALCULATOR • >2,000 Calculations • 89 DMOs >$10M 17% <$3M $6-10M 43% 18% $3-6M 22% Subscriber Budget Category US Based Data
  31. 31. WHAT DOES IT DO? The Event Impact Calculator measures the economic value of an event in terms of spending, jobs, wages, taxes, and ROI Informs negotiations with meeting planners Evaluates incentives and costs against the value of an event (can score events) Provides a case to policymakers for the ongoing development of the meetings sector
  32. 32. THE PLATFORM • Online calculator designed to be simple and flexible • User enters basic parameters of the event • EIC estimates (for your city)… Business sales by industry and source Impacts of sales on jobs, wages, local taxes ROI of the event against hosting costs and incentives • Report is then generated for the event • Save, recall, or aggregate events • Link to CRM / empowerMINT
  33. 33. CALCULATOR’S DATA SOURCES 1. Oxford Economics 2010 survey of meeting planners (conducted for CEIR) • Respondents manage 290 exhibitions representing 1 million attendees and 350,000 exhibitors 2. CIC national-level event spending estimates 3. Longwoods International per diem visitor spending by category and type of city (largest available industry sample - covers 100 cities) 4. City-by-city data on cost of doing business by sector 5. City-by-city tax rates 6. City-by-city employment and income multipliers 7. Real event contract values 8. empowerMINT / CRMs 9. SMG Facility Data (organizer spend in facilities) …combined to create a localized and flexible basis for total impact analysis
  38. 38. Reporting(1) Evaluating Business Opportunities(2) Year-End Reporting(3) Local PR Per Event
  39. 39. $20.7M $26.8M
  40. 40. WHAT’S NEXT  DMO Adoption of Improved Data Collection  Interface (API) with the CRM Solutions  Sports Calculator
  41. 41. OBJECTIVES 1. To quantify the total impact of the DMO channel through the sales of meetings and events 2. To understand the growth of the channel (year over year) DMO GROUP SALES EVENT IMPACT EMPOWERMINT &CHANNEL IMPACT STUDY CALCULATOR INSIDE OUT CAMPAIGN 3. To communicate the power of the DMO channel to internal and external stakeholdersAdvocate for the DMO in the Meetings Market
  42. 42. HOW IS IMPACT QUANTIFIED?  Two measures:  Booked events (booked in calendar 2009, 2010 & 2011)  Occurred events (occurring in calendar 2009, 2010 & 2011) • CRMs Clean Data • 10 Regression • DMOs Direct Models • Omit “Assists” • BudgetSales • Inconsistencies Personnel BudgetProduction Scale to Raw Data Universe
  43. 43. NEXT STEPS 1. Evaluate and project data with Tourism Economics 2. Review findings with DMO Group Sales Channel Impact Study Task Force (comprised of members from Advocacy and Sales & Marketing Committees) 3. Release findings at DMAI’s Annual Convention in Seattle 4. Articulate a clear communications strategy, including: • Provide context (compared to what?) • Refrain from third party comparisons, recognizing influence from multiple channels
  44. 44. WANT MORE INTEL?July 11 @ 2:30 PM EDTUsers Forum with Tourism Economics WebEx Methodology Paper: 1st DraftJuly 17-18Workshops, Office Hours withTourism Economics Annual Convention, Seattle Methodology Paper: Final Draft
  45. 45. The Meetings Market & Atlanta TTRA International Conference - Eric Johnson – June 18 2012
  46. 46. What percent of ourvisitors are coming forconventions & groupmeetings? Visitors: People that stay overnight in hotels in “in-town” Atlanta
  47. 47. 56%   of in-town Atlanta hotel guests came because of group meetings and conventions.  Over $809 million  in visitor spending in Atlanta. Over 60% of all spending in Atlanta by in-town hotelguests. Source: ACVB utilizing data from STR, DKSA, Hotels inAtlanta, Conventions hosted in Atlanta, Tourism Economics, Travelclick, and OTTI. 
  48. 48. The majority of these conventioneers orgroup meeting attendees came because of events booked by the hotels.         
  49. 49. The majority of these conventioneers orgroup meeting attendees came because of events booked by the hotels. The remaining attendees, a little lessthan half, came because of events specifically booked by ACVB.  25% of all in-town hotel guests  from ACVB meetings.     
  50. 50. The majority of these conventioneers orgroup meeting attendees came because of events booked by the hotels. The remaining attendees, a little lessthan half, came because of events specifically booked by ACVB.  25% of all in-town hotel guests  from ACVB meetings. The majority of the attendees attractedby ACVB came to Atlanta because of “City-Wide” meetings or conventions.  16% of all in-town hotel guests  from City-Wide meetings. 
  51. 51. Compression
  52. 52. Buckhead Occ: +14% ADR: +6% Midtown Occ: +16% ADR: +7%East PointOcc: +14%ADR: +6% Compression
  53. 53. OutlineHow do Meetings &Conventions fit into: 1. Our City 2. Our CVB 3. Our Research
  54. 54. OutlineHow do Meetings &Conventions fit into: 1. Our City 2. Our CVB 3. Our Research
  55. 55. Meetings, Conventions, and our CVB Sales: Approximately a third of our employees. Convention Services: Approximately 8% of our staff. Caters to the needs of our meetings when they occur. Marketing: Within our marketing team, one staff member dedicated to producing promotional materials and media regarding meetings. Membership: Information about and access to conventions is rated as the most important benefit we offer our members.
  56. 56. OutlineHow do Meetings &Conventions fit into: 1. Our City 2. Our CVB 3. Our Research
  57. 57. Economic Impact Calculations • Calculated for our largest conventions, Convention Center, and other events as needed • Tourism Economics’ Event Impact Calculator • Gathering input data takes some significant work
  58. 58. Estimate & Track Overall Volume • Answers questions such as: How many conventioneers are coming to Atlanta this year or next year? How does this compare to prior years? • Involves a variety of data sources • Cleaning data entered by sales staff is an essential task
  59. 59. Meeting Planner Feedback Surveys • Completed primarily by our largest city-wide clients • Regards their experience in Atlanta and with ACVB • These surveys help us: • Identify themes in our strengths and weaknesses • Track our performance improvements or areas where we continue to struggle
  60. 60. Custom Research Surveys & Focus Groups • What is important to meeting planners? • How do they view Atlanta and our peers?
  61. 61. Program CRM Database Tools • Simplifies our sales team’s processes for identifying and prioritizing opportunities • Programmed utilizing data visualization software
  62. 62. Track Competitive Trends • Regularly produced reports tracking our market share and future outlook • Reported in terms of competitive sets and industry segments • TAP data
  63. 63. A Research Story Business Problem: Losing market share to competitors Research Questions: How do key decision makers view Atlanta? What are the reasons they are choosing other cities over us? Approach: Focus group of association executives Findings: • Participants’ consideration sets included more competitors than anticipated • Participants did not see our strengths the same way that we saw them • A deeper understanding of the nuances of various topics, e.g. Destination Appeal, Cost etc. Outcome: Greater effort to promote Atlanta’s strengths we take for granted e.g. Walkability & Easiness to get to