Rob Davidson Centre for Tourism University of Westminster THE M.I.C.E. INDUSTRY AN INTRODUCTION.

Rob DavidsonCentre for Tourism

University of Westminster

THE M.I.C.E. INDUSTRYAN INTRODUCTION



THE USES OF BUSINESS EVENTS

EDUCATEEDUCATE DEBATEDEBATE NEGOTIATENEGOTIATE INITIATEINITIATE MOTIVATEMOTIVATE CELEBRATECELEBRATE



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 !



TERMINOLOGY

M.I.C.E. ????M.I.C.E. ???? Business tourismBusiness tourism Business events.Business events.



Meetings and Conferences 1Demand



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.



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



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



ASSOCIATION DEMAND

(societies, clubs, federations ….)

Professional / trade associations

Local / regional / national / international



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



ASSOCIATION DEMAND COMPARED WITH CORPORATE DEMAND

Generally larger Of longer duration Lower daily spend per delegate More likely to encourage partners to

attend



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



EDEN 2009 Annual Conference: INNOVATION IN LEARNING COMMUNITIES ,10-13 June 2009, Gdansk



4-5 June 2009 GDYNIA hosted the international conference: “Always Active” – promoting a healthy lifestyle for elderly people



THE IMPACTS OF CONFERENCES

ECONOMIC IMPACTSECONOMIC IMPACTS SOCIAL / CULTURAL IMPACTSSOCIAL / CULTURAL IMPACTS ENVIRONMENTAL IMPACTSENVIRONMENTAL IMPACTS KNOWLEDGE TRANSFERKNOWLEDGE TRANSFER THE EXPERIENCE ECONOMYTHE EXPERIENCE ECONOMY





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)



SOCIAL TRENDSConferences have changed from this



to this:



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



Meetings and ConferencesSupply & Intermediaries



Purpose-built conference centres



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



Hotels



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



Academic venues



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



Management training centres



Management training centres

ADVANTAGESADVANTAGES Businesslike Businesslike

ambianceambiance Few distractions: Few distractions:

more focussedmore focussed

DISADVANTAGESDISADVANTAGES No grading schemeNo grading scheme



Unusual venues



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



INTERMEDIARIES



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




Venue Finding Agencies Help in identifying suitable venues Shortlist Work on commission




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)



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




Destination Management Companies INBOUND Extensive and detailed knowledge of the destination Can be in competition with PCOs



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



.



Destination Marketing



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



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



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



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 …



CVB marketing activities

Running direct marketing campaigns (direct mail)

Dealing with media enquiries Public relations



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



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



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)



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.


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.


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!


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.


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.


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 Davidson Centre for Tourism University of Westminster THE M.I.C.E. INDUSTRY AN INTRODUCTION.

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Transcript of Rob Davidson Centre for Tourism University of Westminster THE M.I.C.E. INDUSTRY AN INTRODUCTION.