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.
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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. The supply side and different types
of business travel and tourism
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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.
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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.
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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
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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
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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
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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.
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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
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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.)
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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)
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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.
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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
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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
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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)
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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
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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
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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)
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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
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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.
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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
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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
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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.
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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.
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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
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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
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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
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48. 3. Organizational Structures
1. Report to F&B director
2. Report to sales & marketing director
3. Report directly to general manager (G.M.)
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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
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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
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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
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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
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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
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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
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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.
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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.
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