Chapter 3

Managing Supplies in
MICE industries

E-mail: tpavit@hotmail.com
  . 081-082-7273
                             1
Introduction
• The supply side of business travel and tourism is a
  complex phenomenon because of the different types of
...
Outline
1. The supply side and
   different types of
   business travel and
   tourism
2. The supply side of
   business t...
The supply side and different types
  of business travel and tourism




                                      4
1. An individual business trip




                                 5
2. Delegates attending a professional association conference




                                                         ...
3. Exhibitor at trade fair




                             7
4. Participants in incentive travel trip




                                           8
The supply side of business
    travel and tourism




                              9
The Structure of Supply




                          10
The Structure of Supply - Buyer
1.   The corporate buyer is someone employed by a private
     sector enterprise. Buying b...
Characteristics of corporate
         and association buyers
    Corporate buyers      Association Buyers
1
2
3
4
5
6
7
8
...
The Structure of Supply - Buyer
3. Public sector buyers – central
   and local government, and
   statutory agencies – are...
The Structure of Supply




                          14
The Structure of Supply - Intermediaries




                                           15
The Structure of Supply - Intermediaries




                                           16
The Structure of Supply - Intermediaries




                                           17
Professional Conference
  Organizers or PCOs




                          18
1. Definition and other relevant names
                   of PCOs
• Definition: an independent person (individual) or
  or...
2. Scope of work or managerial
            specifications for PCOs
• The services provided by PCOs have become more
  comp...
4. Tasks to be performed by PCOs
1.    conceiving the idea for the event
2.    undertaking regular scheduled meetings with...
4. The role of PCOs
     • They are responsible for
       converting clients decisions into
       actions, ensuring that...
5. Bidding Proposal how to bid the event
1.                             organization(
     background of the host organiza...
Proposal;
    Bidding Proposal; how to bid the event
• Anticipated attendance members and place of origin
  of delegates
•...
Proposal;
    Bidding Proposal; how to bid the event
• Speakers (numbers, where
             numbers,
  are they from, cal...
PCO activities and interactions




                                  26
The Structure of Supply




                          27
The Structure of Supply - Suppliers
• suppliers can be divided into 5 types: destinations,
   venues,transport, accommodat...
Ways of classifying venues




                             29
Purpose-Built Convention
  and Exhibition Centre



                           30
1. Definitions and Characteristics
• Purpose-built convention & exhibition center is a purpose-
  Purpose-                ...
Purpose-      C.
2. Rationale of Purpose-built C.C.
             • These centers have helped to
               expand the ...
Purpose-      C.
    2. Rationale of Purpose-built C.C.
•                      purpose-
      Some examples of purpose-bui...
1.
2.   (Organization Chart)
3.
4.

     10
       15.30 .



                            34
3. Interior Facilities
• The facilities provided inside the purpose-built C.C
                                      purpos...
4. Management & Operations
• Funding & financial approaches
  • publicly owned & funded by local or state
    government
 ...
5. Management & Organizational Structure
1. sales & marketing aspects of business
2. levels & availability of client servi...
Functional Organization chart for
         Purpose-
         Purpose-built convention centre
                         Poli...
1. Staffing
• Staff are the key resource and
                    center’
  the key to each center’s success.
• What makes ...
1. Staffing
• More attention is being given to the recruitment,
  selection and training of high-quality staff
   – Full t...
Sales
 2. Sales & Marketing aspects of business
1. Focuses on a number of market sector, but typically pays
   attention t...
Levels
3. Levels & Availability of Client Services
                      Client Process
      Customers/Clients           ...
4. Food & Beverage Operations
could be contracted out to external catering
companies
alternatively, centers might have the...
5. Revenue Generations
• Room charge for the          • Security & H/K
  facilities                   • charges from car p...
Hotel & Residential Venues



                             45
1. Backgrounds
• to fulfill its business fluctuation (peak & valley)
                                              valley)...
2. Key players
• Hotel GM is one of the ultimate
  responsibility for the success of any
  event running within the venue
...
3. Organizational Structures
1. Report to F&B director
2. Report to sales & marketing director
3. Report directly to gener...
3.1 Report to FB director
                         Hotel GM
                Hotel executive committee

  Food and       Sa...
Report sales&
3.2 Report to sales& marketing director
                           Hotel GM
                  Hotel executiv...
Report
     3.3 Report directly to G.M.
                         Hotel GM
                Hotel executive committee

  Foo...
4. The client process
Broken down into two distinct segments
   1. events requiring a small number of accommodation, e.g.
...
Three approaches to the client process
   Mgr. sells,
1. Mgr. sells, arranges and works with the organizer
   from the ini...
Client process
     Client                  Hotel         Transition Point

  Telephone call         Sale Department

  Si...
The Structure of Supply - Suppliers
3. Transport clearly is vital to business tourism in that
   it moves the business tra...
The Structure of Supply




                          56
Conclusion
• We have seen that the supply side in business travel
  and tourism is highly complex and varies between
  typ...
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Chapter 3 managing supplier in mice industry

  1. 1. Chapter 3 Managing Supplies in MICE industries E-mail: tpavit@hotmail.com . 081-082-7273 1
  2. 2. Introduction • The supply side of business travel and tourism is a complex phenomenon because of the different types of business tourism, each with their own specific supply chain. We can also split the supply side into: 1. compulsory supplies, those services which are required for all business travel, namely transport 2. sectoral supplies, those services which are specific to particular business tourism sectors, such as exhibition venues for the exhibition sector 3. optional supplies, services which may be used to enhance the product or experience but which are not an essential part of it such as bars and entertainment. 2
  3. 3. Outline 1. The supply side and different types of business travel and tourism 2. The supply side of business travel and tourism 3
  4. 4. The supply side and different types of business travel and tourism 4
  5. 5. 1. An individual business trip 5
  6. 6. 2. Delegates attending a professional association conference 6
  7. 7. 3. Exhibitor at trade fair 7
  8. 8. 4. Participants in incentive travel trip 8
  9. 9. The supply side of business travel and tourism 9
  10. 10. The Structure of Supply 10
  11. 11. The Structure of Supply - Buyer 1. The corporate buyer is someone employed by a private sector enterprise. Buying business travel services can be the main or total role for an employee, or it may be an occasional task within a much broader job description. 2. Association buyers is a term that covers a multitude of different types of association. Most of these organizations are non-profit making but they normally have to cover their costs. They usually, therefore, have very clear budgets for business tourism events which they must not exceed. 11
  12. 12. Characteristics of corporate and association buyers Corporate buyers Association Buyers 1 2 3 4 5 6 7 8 9 12
  13. 13. The Structure of Supply - Buyer 3. Public sector buyers – central and local government, and statutory agencies – are often operating on very tight budgets. The health and education sectors are two important public sector activities which are heavily involved in organizing business tourism events. 13
  14. 14. The Structure of Supply 14
  15. 15. The Structure of Supply - Intermediaries 15
  16. 16. The Structure of Supply - Intermediaries 16
  17. 17. The Structure of Supply - Intermediaries 17
  18. 18. Professional Conference Organizers or PCOs 18
  19. 19. 1. Definition and other relevant names of PCOs • Definition: an independent person (individual) or organization specializing in planning and organizing conventions, meetings, exhibitions and incentives. They generally earn the fee from doing these managerial works • Relevant names: names: – Meeting managers - Meeting planners – Meeting coordinators - Conference managers – Event managers - Special projects managers 19
  20. 20. 2. Scope of work or managerial specifications for PCOs • The services provided by PCOs have become more complex and extensive, managers should truly be/have: – participating in planning & organization – leadership skill - coordination skill – communication skill - skills to control all details • All the details, activities & interactions of the event, from the time of conception through to the actual event & concluding with the evaluation should be paid their highest efforts 20
  21. 21. 4. Tasks to be performed by PCOs 1. conceiving the idea for the event 2. undertaking regular scheduled meetings with client 3. selecting the site 4. negotiating with the venue and other suppliers 5. planning the programs 6. managing & monitoring the finances and budgets 7. promoting the event & delegate attendance 8. on- managing & executing the event on-site 9. bills, post- finalizing the bills, evaluating and holding post-events 10. preparing final reports & event evaluation 21
  22. 22. 4. The role of PCOs • They are responsible for converting clients decisions into actions, ensuring that the convention project is kept both on schedule and on budget, reporting to the convention committee or organization executive, coordinating the suppliers to the convention and offering experiences. consultative experiences. 22
  23. 23. 5. Bidding Proposal how to bid the event 1. organization( background of the host organization(s) 2. name of the event 3. objectives of the event 4. proposed dates 5. preferred location 6. theme 7. accommodation requirement 8. status or levels of event 23
  24. 24. Proposal; Bidding Proposal; how to bid the event • Anticipated attendance members and place of origin of delegates • type of events • frequency of event • program format no. days, sessions, sessions, (no. of days, plenary sessions, concurrent sessions, sessions, groups, poster sessions, roundtable discussion groups, workshops, tours, pre- post-tours, workshops, associated tours, pre- and post-tours, etc.) etc.) 24
  25. 25. Proposal; Bidding Proposal; how to bid the event • Speakers (numbers, where numbers, are they from, call for from, papers, papers, interpretation required, etc. required, etc.) • social programs (e.g. golf, golf, party, dinners, etc..) party, dinners, etc • accompanying persons programs • funding, from where? funding, where? • Finance (budget & procedures) procedures) 25
  26. 26. PCO activities and interactions 26
  27. 27. The Structure of Supply 27
  28. 28. The Structure of Supply - Suppliers • suppliers can be divided into 5 types: destinations, venues,transport, accommodation and ancillary services. 1. Destination is a place where the main focus of the business travel trip will be 2. Venues are the places where business tourism events actually take place. 28
  29. 29. Ways of classifying venues 29
  30. 30. Purpose-Built Convention and Exhibition Centre 30
  31. 31. 1. Definitions and Characteristics • Purpose-built convention & exhibition center is a purpose- Purpose- purpose- built, meetings, built, stand alone facility used principally for meetings, conventions, conventions, trade shows and exhibitions • It will have catering facilities but need not include accommodations • It provides a large flexible space, could be subdivided into space, sections, etc. several rooms or sections, etc. for different purposes • It should be able to host a wide variety of events, be events, equipped with latest technology and offer number of services 31
  32. 32. Purpose- C. 2. Rationale of Purpose-built C.C. • These centers have helped to expand the MICE industry both in national and international levels • These facilities are specialized in the convention and meetings of large-size events • These centers have brought economic renewal and an enhancement of civic pride to a city, region or nation 32
  33. 33. Purpose- C. 2. Rationale of Purpose-built C.C. • purpose- Some examples of purpose-built convention or exhibition centers Thailand; in Thailand; 1. QSNCC, Bangkok (G) 2. BITEC, Bangkok (H) 3. IMPACT, Nonthaburi (I) (J) 4. Paragon Hall (Siam Paragon, Bangkok) (A) 5. Centara Grand Bangkok Convention Centre (Central World) (B) 6. Golden Jubilee Convention Hall, Khon Kaen University (C) 7. PEACH, Pattaya (D) (Phuket 8. Phuket Exhibitions, Meetings & Conferences (Phuket Expo) (E) Center, Hatyai, 9. International Convention Center, Hatyai, Songkla (F) 33
  34. 34. 1. 2. (Organization Chart) 3. 4. 10 15.30 . 34
  35. 35. 3. Interior Facilities • The facilities provided inside the purpose-built C.C purpose- C. include • space for conventions & exhibitions • various types and styles of meeting rooms • space for the provision of food & beverages for delegates • common areas for breakout sessions • sufficient areas throughout the centers to enable the registrations of different groups who may be using the facility at the same time 35
  36. 36. 4. Management & Operations • Funding & financial approaches • publicly owned & funded by local or state government • operated by a designated board or authority • it has to be self-supporting, making profit & provide positive economic impact to the city 36
  37. 37. 5. Management & Organizational Structure 1. sales & marketing aspects of business 2. levels & availability of client services 3. management, administration and control of the center (including staffing, recruitment, selection, induction & training) 37
  38. 38. Functional Organization chart for Purpose- Purpose-built convention centre Policy-making body / Board Sales and Operations Finances and Human Marketing Administration Resources • Convention and • Event coordination • Account receivable • HR planning exhibitions sales • F&B preparation • Accounts payable • Staffing and reservation and service • Purchasing • Training • Public relations • Reception • Payroll • Performance • Advertising • AV support • Convention and appraisal • Link w/ • Security / Parking exhibition bills • Industrial relation community, • Housekeeping CVB • Engineering • Maintenance 38
  39. 39. 1. Staffing • Staff are the key resource and center’ the key to each center’s success. • What makes them able to differentiate their product and service is the quality of their staff and how well those staff service the needs and wishes of the customer. 39
  40. 40. 1. Staffing • More attention is being given to the recruitment, selection and training of high-quality staff – Full time, or core staff, should have multiple skills – Casual or contract staffs (supplied by specialist employment agencies) • However, casual or contract staff should be trained to meet the standard requirements as same as those core staff, this is to maintain high levels of customer care 40
  41. 41. Sales 2. Sales & Marketing aspects of business 1. Focuses on a number of market sector, but typically pays attention to association business (both national and international levels) 2. To have in-coming events, they need to develop client contacts, converting enquiries and promoting the venue by demonstrating the venue’s attributes, products & services to PCOs and event planners 3. Often works with CVB and other suppliers in promoting the destination 41
  42. 42. Levels 3. Levels & Availability of Client Services Client Process Customers/Clients Venue Mgr. Rep. Enquiries Check for availability Organizing a site inspection & negotiation Planning for an operational plan, programs & etc. 42
  43. 43. 4. Food & Beverage Operations could be contracted out to external catering companies alternatively, centers might have their own in- house facilities serving on the quality of both their food preparation & service any of them, asking about variety in terms of international styles, prices and levels of services? Should include meals, refreshments, fast-food centers, etc. 43
  44. 44. 5. Revenue Generations • Room charge for the • Security & H/K facilities • charges from car parking • F&B, bars, restaurants, bars, restaurants, shops, etc. coffee shops, etc. • business centers • Provision of AV & IT • retail shops & services • Provision of support • banks, leasing spaces for banks, services clinics, bookshops, etc. clinics, bookshops, etc. • Provision of signage • banner promotion service & posters • escorted educational tours 44
  45. 45. Hotel & Residential Venues 45
  46. 46. 1. Backgrounds • to fulfill its business fluctuation (peak & valley) valley) • some hotels, are specialized in MICE sectors hotels, • to generate revenues, especially from F&B, revenues, F& meeting facilities and other services • to have such value added facilities & services 46
  47. 47. 2. Key players • Hotel GM is one of the ultimate responsibility for the success of any event running within the venue • other departments include F&B, H/K, F& Marketing, engineering, F/O, Sales & Marketing, engineering, etc. etc. • in general, sales & marketing manager general, or convention manager leads the most important role in this area of hotel business 47
  48. 48. 3. Organizational Structures 1. Report to F&B director 2. Report to sales & marketing director 3. Report directly to general manager (G.M.) 48
  49. 49. 3.1 Report to FB director Hotel GM Hotel executive committee Food and Sales and MKT Room Division Accountant Beverage Dir. Director Manager Convention Banquet Services operations 49
  50. 50. Report sales& 3.2 Report to sales& marketing director Hotel GM Hotel executive committee Food and Room Division Sales and MKT Accountant Beverage Dir. Manager Director Banquet Convention operations Services 50
  51. 51. Report 3.3 Report directly to G.M. Hotel GM Hotel executive committee Food and Sales and MKT Convention Accountant Beverage Dir. Director Service Mgr. Banquet operations 51
  52. 52. 4. The client process Broken down into two distinct segments 1. events requiring a small number of accommodation, e.g. 15-30 rooms 2. events requiring larger number of accommodation, over 30 rooms 52
  53. 53. Three approaches to the client process Mgr. sells, 1. Mgr. sells, arranges and works with the organizer from the initial contact until the completion of the event 2. coordinators or mgrs should work closely with the daily operations until the end of each day satisfactions, 3. check for customer satisfactions, negotiations and other additional requirements 53
  54. 54. Client process Client Hotel Transition Point Telephone call Sale Department Site Inspection Sale person Opportunity Contract negotiation Sale person Opportunity Contract signed Sale person Opportunity Contract signed Sale person Opportunity 54
  55. 55. The Structure of Supply - Suppliers 3. Transport clearly is vital to business tourism in that it moves the business traveller to their desired destination, and then moves them around the destination. • air transport – scheduled and charter flights, private aircraft, air taxis, chartered helicopters • rail transport – scheduled railways, steam railways • road transport – private cars, scheduled buses, chartered coaches, car hire, taxis • water transport – ferries, cruise ships. 55
  56. 56. The Structure of Supply 56
  57. 57. Conclusion • We have seen that the supply side in business travel and tourism is highly complex and varies between types of business tourism events. • At the same time,we have noted that there are clear links and interdependencies between buyer and intermediaries and intermediaries and suppliers. • The whole industry is supported by a range of other supply-side organizations, including trade media and professional bodies. 57

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