Friend or Foe - Friends... · 2009. 12. 14. · Monday 9th of November 2009 Florence - Italy ......

International Congress and Convention Association www.iccaworld.com

Friend or Foe48th ICCA Congress & Exhibition

Monday 9th of November 2009

Florence - Italy

International Congress & Convention Association

International Congress and Convention Association www.iccaworld.comInternational Congress and Convention Association www.iccaworld.com


The Panel

Paul Flackett IMEX

Anne Rodven Visit Oslo

Harry Fine Harry Fine Associates

Arnaldo Nardone Radisson Montevideo Uruguay

Liu Ping China Star Professional Programs

Mark Spivey Moderator – Maritim Hotels



STARTING OUT – 1987

* THE NEED FOR FRIENDS

* LOCAL KNOWLEDGE

* WORKING WITH HOTELS

* TIME TO GROW


OLDER & WISER 91-96

* BIGGER & BETTER?

* CHANGES INDIRECTION

* MORE STAFF –MORE QUESTIONS

* WHERE TO NOW?


MOVING ON -99 – 09

* A NEW HOME* OLD FRIENDS* NEW FRIENDS* EXPERTISE THE

HARD WAY...* STILL FRIENDS

AFTER 22 YEARS!!



Relationship CVB/PCO/Hotel

• Traditionally a CVB would hold anallotment until the bid was won

• Then hand over the allotment to alocal PCO

• PCO would register participants andorganise their hotel accommodation

– and would take a commission

• Delegates would book early


This pattern is changing

• PCO’s come in all shapes and forms

• Participants book later and later

• Rooms are easily available on line

– and congress delegates surf, too…

• Will we hold hotel allotments forcongresses in the future?


• Some examples….


33rd IGC 2008 – August 2008 - Oslo

• Total participants: 6200

• Total rooms blocked: 4000

• 3400 participants booked before hoteldeadline

• Total rooms sold through PCO: 2300


33IGC 2008

August 6-14

Registrations per week

0

1 000

2 000

3 000

4 000

5 000

6 000

Per week 11 3 4 1 3 6 6 3 5 1 7 8 15 12 10 11 30 14 35 17 43 29 52 77 107 316 138 143 519 174 180 201 333 344 603 96 77 81 93 73 88 122 131 205 292 283 114 243 419 138

Acumulated 11 14 18 19 22 28 34 37 42 43 50 58 73 85 95 106 136 150 185 202 245 274 326 403 510 826 964 1 1 1 1 2 2 2 3 3 3 3 3 3 3 4 4 4 4 5 5 5 5 5

36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

May 1st3400 part.

July 15th

6200 part.


11th European Congress ofPsychology – July 2009 – Oslo

• Total participants: 2200

• Total rooms blocked: 1100

• Total rooms sold through PCO: 534


ECCO – September 2007 –Barcelona

Total participants: 13,000

• Total rooms blocked: 8,860

• Total rooms sold: 4,216


European Science Open Forum(ESOF) – July 2008 – Barcelona

• Total participants: 4,200

• Total rooms blocked: 1,200

• Total rooms sold: 382


Veterinary – October 2008 –Barcelona

• Total participants: 2,200

• Total rooms blocked : 965

• Total rooms sold: 268


Why?

• Has the net taken over completely?

• Are hotels’ congress prices too high?

• Are PCOs marking up too much?


Consequences

• Wash-down of rooms (ie allotmentscancelled) – sometimes too late

• Hotels can’t sell the remaining rooms

• PCO’s loose turnover

• Hotels reluctant to give new allotments

– But associations want them/need them

– City may loose competition


*Times are Changing – Bob Dylan

Business Models that workedbefore do not necessarily worknow.Flexibility and understanding in achanging enviroment is required



*Vast Majority of events requirehotels for accommodation,meetings, functionsso a good working relationship isessential!Don’t fall out before you start!



*Choice of Hotels

Is the client given the choicethat is most suitable to thereneeds or are some agenciesonly interested in lining thereown pocketsGlobal deals more %



*Who is in the best positionto recommend hotels.Should you go through DMCsor Agencies or Tourist Officesor CVBs or directly or viaRegional Sales OfficesConfused? Imagine theclient….



*Who does what in theprogramme. If Agency led orany 3rd party thenprogramme has to beseamless.



*Hot topic hotel contractsand terms & conditionsequally……Agencies or other 3rd partieshave there own contractterms



Situation in China-unbalanced development

• Background of Meeting and IncentiveIndustry in China

• Big cities like Beijing, Shanghai andGuangzhou

• Cities like Xi’an, Guilin, Chengdu,Suzhou,Hangzhou, etc

• Cities like Guiyang, Kunming,Lhasa, etc


Differences between Hotels orVenues by Different Management

• International Brand

• Local Brand

• Private

• State-owned

Examples:Banquet in the Great Hall of the People

Reception on the Great Wall

Gala Dinner in the Forbidden City


Problems between ForeignClients and Local Suppliers

• How do you overcome the languageobstacle ?

• How do you judge if your localsuppliers are legal or not ?

• How do you judge what the best isfor your clients in a country or citywhich is far away and you do notknow ?

• How do you deal with crisis oremergencies?


Don’t try to stop the trend.

What will happen if a mantis tries to stop a chariot?


Relation between Clients,Intermediary Agencies and Hotels

• Trust

• Transparent


How to make your clientsrely on you forever?

• Understand the mentality of your clients

• Knowledge and expertise that yourclients need and rely upon

• Local talent and access that your clientswould never build on their own

• Wide network of contacts that yourclients could never build up and maintainby themselves

The cat can climb up trees, but the tiger can’t.


How to make your clientsrely on you forever?

• Tolerance, Care, Passion and Love

• Always ready to offer your help whenthey are in a difficult or embarrassingsituation

• Creative and memorable experienceswith Chinese culture

Learn from Lei Feng to serve the people wholeheartedly.


How was our meetingBusiness From 1995 to 2002

• Radisson Montevideo started operationsin 1995.

• From 1995 to 2002 :

• 80% Business brought by PCO & DMC

• 20% Direct Business. hotel- client.


How was our meetingBusiness From 2003 to 2009

• We Became ICCA Member in1998.

• From 2003 to 2009:

• 2009:

• 80 % direct Business

• 20 % brought by PCO-DMC30

40

50

60

7080 80

0

10

20

30

40

50

60

70

80

2003 2004 2005 2006 2007 2008 2009


But Hotel – PCO & DMC

• All improve Business. (ICCA Stats)

7

2022

28

0

5

10

15

20

25

30

1997 2006 2007 2008

Montevideo City-


ICCA RANKING WORLWIDE-2008

12 San Pablo

15 Buenos Aires

37 Río de Janeiro

38 Santiago

50 Montevideo

58 México DF

59 Cancún

81 Lima

94 Quito

100 San José CR.


1- San Pablo.2- Buenos Aires3- Vancouver4- Montreal5- Río de Janeiro6- Santiago7- Quebec8- Toronto9- Boston10- Montevideo

Americas ICCA City Ranking-2008 –


Meetings using PCOs &DMC- 1995

30%

70%

0%

0%

Meetings withPCO or DMC


Meetings using PCOs &DMC- 2009

55%

45%

0%

0%

Meetings withPCO or DMC


Associations

PCOs

Local city hallauthorities

suppliers

PartnershipPartnershipCity Team WorkCity Team Work--Joint RelationshipJoint Relationship

HOTELRADISSON

BUREAU

Tourismsecretary

With all the parties that are relevant to gaining the business


Joint venture contracts

• Assists with airline tickets.

• Assists with hotel stays.

• Assists with site inspections.

• Assists with prepayments.

• Assists with presentations to theclients with materials or in person.

• Printing bidding books.

• Meeting rooms for the local hostcommitee .


*Yield Management on airlineseats is no different to Hotelbeds just hotels are not verygood at selling this aspect!

Location costs a premium behonest with your expectancyand good hotels will listenand work with you



*What other business doesthe hotel have:Know your partner– time of the year- client mix- obligations in key cities to

existing clients



*



*Frankfurt Hotelwith 543 roomsOctober 2010Crews 20%Corporate 30%Trade Show1000% (14 days)



Questions & Answers


Thank you!48th ICCA Congress & Exhibition

Monday 9th of November 2009

Florence - Italy


Friend or Foe - Friends... · 2009. 12. 14. · Monday 9th of November 2009 Florence - Italy ......

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Transcript of Friend or Foe - Friends... · 2009. 12. 14. · Monday 9th of November 2009 Florence - Italy ......