Destination Makeovers: How Rebranding Efforts Impact the Meetings Market

0515 Destination Makeovers

What does Atlantic City, a gaming town based in New Jersey, have in common with Mobile, AL, a city full of southern charm and history? Both are cities in the midst of reinventing themselves to attract meetings.

Al Hutchinson, the new president and CEO of the Mobile Bay Convention & Visitors Bureau, is spearheading a rebranding effort for this coastal town. It is vital, he says. "We are fortunate that we have a lot of great assets that make storytelling easy. We now have to come up with the one or two things that will have an emotional connection to potential visitors."

He realizes he has his work cut out for him. A recent market research survey of 2,000 meeting professionals from companies that included PNC Bank, New York Life, American Express, McDonald's, and the National Parkinson Foundation, found that 76 percent said they have never brought a meeting to Mobile or visited for personal or business reasons.

About 1,200 miles to the north, Atlantic City faces an entirely different challenge. Unlike Mobile, which is almost a blank slate as far as awareness for national meetings is concerned, Atlantic City has no problem getting on the public's radar. But the city is mired in the throes of a perception problem. Stories about Atlantic City's reported demise abound. Here's just a small sample of headlines this year: "Once Fabled Atlantic City Hits Free Fall," according to USA Today. "End of the Boardwalk Empire? The Rise and Demise of Atlantic City," declares The Guardian. "The Last Hand: The Epic Bust of Atlantic City's Gambling Economy," reads a headline in The Washington Post.

 

"The press about Atlantic City has been predominately negative," admits Michael Massari, senior vice president of national meetings and events, Caesars Entertainment. As a result, his team has spent a great deal of time educating potential customers about the realities of Atlantic City.

There is no hiding the fact that four of Atlantic City's 12 casinos have closed. Jim Wood, president and CEO of Meet AC, a nonprofit created to boost the convention, meeting, and group market for Atlantic City, describes it as a correction in the marketplace.

"We look forward to these properties reopening. A lot of damage has been done. The closing of these casinos hurts. It sounds like the whole destination is closing," adds Wood.

He says this is the furthest from the truth. As a matter of fact, meetings are up in Atlantic City. "We are seeing significant bookings right now. There is a great deal of demand for Atlantic City. We're very bullish that convention demands will continue to increase year over year," explains Wood.

The scenario found in Atlantic City is similar to what Massari faced when he got to Las Vegas in the '90s. "Las Vegas was not favorably viewed by corporate America as a meetings location," he says. When he finally convinced potential clients to visit and they realized how close the airport is to The Strip, and the caliber of hotels, meeting space, and entertainment available, many a mind was changed.

Las Vegas is not an isolated case of a destination reinventing its image. New York did it in the '80s, and Detroit is currently in the midst of a renaissance. So it is possible. Here's a look at how Mobile and Atlantic City are approaching the journey of brand reinvention that many other destinations have taken before.



Working Together Is Vital
Charlotte, NC-based Patty Richbourg, CMP, senior director of global accounts for HelmsBriscoe, says the most successful destinations work together as a community to sell the destination. "Everybody has to sell the city first," she says. "It's important to remember that a rising tide raises all boats."

At present, Mobile's mix of business is 40 percent meetings and conventions and 60 percent leisure travel. Hutchinson's goal is to get that closer to 50/50. Many first-time visitors are surprised by all that Mobile has to offer -- historic homes that include antebellum mansions and Creole cottages, a safe and walkable downtown, fine dining, golf, museums, arts, and culture.

"We have all these great assets but need to focus on the one thing we feel we can talk to the consumer about that will resonate with them and get them excited to come to Mobile," says Hutchinson. "We need to create an emotional connection to have visitors come here and go home and tell others that Mobile is a must-see destination." Plus, as is the case with most successful branding propositions, it should be interchangeable between the leisure and meetings markets.

For its part, Caesars has started encouraging its clients to consider having east-west rotations for its conventions utilizing its properties in Las Vegas as well as Atlantic City. "Our customers have been quite receptive," says Massari.

 

According to Walt Galanty, president of AIM Meetings and Events, a full-service outsourcing company, who was instrumental in the first booking at Harrah's new Waterfront Conference Center, Caesars' plan is working. An international group of approximately 1,600 from an aerospace medical association will be meeting at the center the end of next April, bringing attendees and exhibitors from 33 countries.

"We would never have even considered Atlantic City if it wasn't for the new conference center and the financial incentives given to us," says Galanty.

But due to AIM's relationship with Caesars Entertainment, he moved this conference from Las Vegas in 2016 to Atlantic City thanks to a great deal from Caesars on the hotel side as well as offerings in airport pickups, registration help, and food and beverage assistance. Safety, accessibility, and a breadth of activities were some of the issues Galanty had to address with his client.

"Unfortunately, until three or four years ago, the city took all its gambling tax money and sent it to the rest of state and didn't use it to revitalize its neighborhoods," adds Galanty. "People need to look beyond the negativity in the press and look at the individual locations in order to determine what's best for them. That's what we did and we are glad we got the incentive to bring people from all over the world to showcase this new conference center."

These incentives align with Meet AC's initiative to rebrand Atlantic City as a meetings destination. It is so committed to this task that a $1-million incentive program is in place, available to new groups or those that have not met in the city for three years, with arrival dates through 2016.

If a destination only talks about things like its hotels and convention centers, chances are pretty good it will not make a strong and lasting connection with potential clients.

"Unless a destination builds its marketing voice around that oath of emotional relevance or emotional wellbeing to a consumer, odds are good they are going to fall into the trap of navel gazing, talking about all their stuff like a self-centered person at a party would," says Webb. BCF is hard at work looking at Mobile from a creative point of view to create emotional and physical relevance to today's traveler.



Questions or comments? Email adoyle@ntmllc.com



This article appears in the May 2015 issue of Successful Meetings.



Redefining the Brand
The rebranding process is an arduous one, but Hutchinson understands its potential impact. Previously, as the vice president of convention sales and services at the Virginia Beach CVB, Hutchinson was instrumental in creating the, "Bring it to the Beach!" tagline for the destination. "From our creatives to our trade show booth, my competitors who were selling against us used to compliment it. Any time you get positive feedback from your competitors, it is saying a lot about the success of your program," says Hutchinson.

 

He is hoping to have the same success with Mobile's branding proposition; so much so that BCF, the marketing agency that created the Virginia Beach tagline, has been tasked with the same job.

BCF has interviewed close to 100 stakeholders in Mobile, some during Mardi Gras. (Mobile is its birthplace and 39 parades roll through the streets of the historic downtown each year.) "We talked to our political community, locals from restaurants, the hospitality industry, college and university communities, faith-based communities, and others. We included all ethnicities, genders, and age groups. We took a very comprehensive approach in doing this," Hutchinson says.

Locals who have a strong connection to the destination in which they live are extremely valuable when creating a brand proposition. "Very often they let us see the real heart and soul of a destination," says Art Webb, owner of BCF. "Then we take that and intersect it with what we know about human psychology and emotion."

Concept boards were scheduled to be ready in April and Hutchinson hopes to have a new brand and video ready to roll by the end of June. "This is huge. Mobile has gone through a dozen different brand evolutions the past few years. We have to do this right this time. It will be a homerun for the community. We have our moment in time. This is it," says Hutchinson.  

Odds are not everyone in Mobile will approve of the brand proposition BCF creates. "Al has the hardest job in the world as the natural inclination of all of his constituents is that the branding should talk about all Mobile has to offer. My one piece of encouragement is to be strong and courageous in the face of this," explains Webb. "Every great brand proposition answers the question: 'What's in it for me?' It connects to the heart."


Making the Investment
The key to redefining a destination is to get people to visit -- and the key to that is to get the local hospitality community to invest in their destination. "Atlantic City has really good restaurants, a beautiful beach, good nightlife, nice hotels, meeting facilities, and is a great value," says Massari. Caesars has made a big investment to add to what's already there. The new $125.8-million Waterfront Conference Center at Harrah's Resort Atlantic City is on schedule to open in August. The center is attached to Harrah's, which has 2,590 guest rooms and suites in Atlantic City's Marina District.

"Until now, the meetings business has not been a big participant in the city. It has been in the 1 or 2 percent range in volume of revenues for the city," explains Massari. Harrah's is determined to change that with the new center. The massive, flexible meeting space will be easily reconfigured into as many as 63 individual meeting rooms, including two 50,000-square-foot pillarless ballrooms.

"We couldn't be more thrilled with the results so far. For the first 12 months, we have 66,000 room nights at Harrah's Atlantic City booked for this facility. That's up from the 3,000 to 4,000 room nights we typically have booked at this time," says Massari. "We are still only five miles into a marathon. Although we are ahead of where we thought we would be, there is still a lot of race left."

For a brand strategy to succeed, all of a destination's stakeholders -- from government officials and tourism executives, to residents -- must have buy-in. With that in mind, Hutchinson orchestrated a recent town hall gathering at the Mobile Convention Center that attracted close to 300 people from the local community. Just six months into his role as president and CEO, he organized a distinguished panel of meeting industry thought leaders that included: Michael Gehrisch, president and CEO of Destination Marketing Association International; John Graham, president and CEO of American Society of Association Executives; Thomas Foley, senior director of Professional Convention Management Association; Peter Pantuso, president and CEO of the American Bus Association; and Paul Van Deventer, president and CEO of Meeting Professionals International. David Dubois, president and CEO of International Association of Exhibitions and Events, facilitated.

"The main purpose of the town hall was to bring in some of our national hospitality and tourism leaders to help educate the local stakeholders and broader community about the value of meetings and conventions," says Hutchinson. "We must get local stakeholders on board."

Visit Indy Ready to Rebuild
The Indianapolis CVB works to repair its reputation for Hoosier Hospitality after a controversy

On March 24, Visit Indy, the Indianapolis convention and visitors bureau, found itself at the center of a nationwide controversy after the state passed the Religious Freedom Restoration Act (RFRA), which human rights groups feared could legalize discrimination against the LGBT community. The law brought immediate condemnation from companies ranging from Apple to Eli Lilly & Co., as well as national media, musicians and entertainers, professional and collegiate sports leagues, and, of course, the meetings and convention industry.

Visit Indy suddenly found the reputation the city had spent decades building as a welcoming and inclusive destination in tatters. Boycotts were called, convention industry groups issued condemnations, two groups immediately cancelled conventions scheduled in Indianapolis, and others threatened to do so.  

It wasn't really a surprise, says Leonard Hoops, president and CEO of Visit Indy, which had joined the city's mayor and chamber of commerce in fighting the RFRA in February. "We were recognized last year as USA Today's No. 1 convention city, and have been using that as a key marketing message, and our state and local lawmakers all knew that," Hoops says. "So when organizations like ASAE and CIC and IAEE wrote letters of concern, it's alarming. It's one thing for the statehouse to keep hearing from us; it's another to hear it from people that this concerns directly."

Noting that Indianapolis has its own gay rights ordinance and is proud of its reputation for Hoosier Hospitality, Visit Indy didn't try to deflect criticism but joined in, and started an Indy Welcomes All campaign prominently on its website. By April 2, the governor had signed an amended bill clarifying that discrimination against the LGBT community was forbidden.

"You can't just hit 'undo' on significant negative coverage in both social media and traditional media," Hoops says. "Clearly, we have to regain the trust of a lot of meeting decision makers, and the thing I'm confident about is that the reality of who we are and what we deliver and the experiences that our customers have had -- in the long run that we will regain that trust."

-- Leo Jakobson



Redefining the Brand
The rebranding process is an arduous one, but Hutchinson understands its potential impact. Previously, as the vice president of convention sales and services at the Virginia Beach CVB, Hutchinson was instrumental in creating the, "Bring it to the Beach!" tagline for the destination. "From our creatives to our trade show booth, my competitors who were selling against us used to compliment it. Any time you get positive feedback from your competitors, it is saying a lot about the success of your program," says Hutchinson.

 

Hutchinson
Al Hutchinson says a destination has to position itself in a way that shows planners how to promote it to meetings groups

He is hoping to have the same success with Mobile's branding proposition; so much so that BCF, the marketing agency that created the Virginia Beach tagline, has been tasked with the same job.

BCF has interviewed close to 100 stakeholders in Mobile, some during Mardi Gras. (Mobile is its birthplace and 39 parades roll through the streets of the historic downtown each year.) "We talked to our political community, locals from restaurants, the hospitality industry, college and university communities, faith-based communities, and others. We included all ethnicities, genders, and age groups. We took a very comprehensive approach in doing this," Hutchinson says.

Locals who have a strong connection to the destination in which they live are extremely valuable when creating a brand proposition. "Very often they let us see the real heart and soul of a destination," says Art Webb, owner of BCF. "Then we take that and intersect it with what we know about human psychology and emotion."

Concept boards were scheduled to be ready in April and Hutchinson hopes to have a new brand and video ready to roll by the end of June. "This is huge. Mobile has gone through a dozen different brand evolutions the past few years. We have to do this right this time. It will be a homerun for the community. We have our moment in time. This is it," says Hutchinson.  

Odds are not everyone in Mobile will approve of the brand proposition BCF creates. "Al has the hardest job in the world as the natural inclination of all of his constituents is that the branding should talk about all Mobile has to offer. My one piece of encouragement is to be strong and courageous in the face of this," explains Webb. "Every great brand proposition answers the question: 'What's in it for me?' It connects to the heart."


Making the Investment
The key to redefining a destination is to get people to visit -- and the key to that is to get the local hospitality community to invest in their destination. "Atlantic City has really good restaurants, a beautiful beach, good nightlife, nice hotels, meeting facilities, and is a great value," says Massari. Caesars has made a big investment to add to what's already there. The new $125.8-million Waterfront Conference Center at Harrah's Resort Atlantic City is on schedule to open in August. The center is attached to Harrah's, which has 2,590 guest rooms and suites in Atlantic City's Marina District.

"Until now, the meetings business has not been a big participant in the city. It has been in the 1 or 2 percent range in volume of revenues for the city," explains Massari. Harrah's is determined to change that with the new center. The massive, flexible meeting space will be easily reconfigured into as many as 63 individual meeting rooms, including two 50,000-square-foot pillarless ballrooms.

"We couldn't be more thrilled with the results so far. For the first 12 months, we have 66,000 room nights at Harrah's Atlantic City booked for this facility. That's up from the 3,000 to 4,000 room nights we typically have booked at this time," says Massari. "We are still only five miles into a marathon. Although we are ahead of where we thought we would be, there is still a lot of race left."

For a brand strategy to succeed, all of a destination's stakeholders -- from government officials and tourism executives, to residents -- must have buy-in. With that in mind, Hutchinson orchestrated a recent town hall gathering at the Mobile Convention Center that attracted close to 300 people from the local community. Just six months into his role as president and CEO, he organized a distinguished panel of meeting industry thought leaders that included: Michael Gehrisch, president and CEO of Destination Marketing Association International; John Graham, president and CEO of American Society of Association Executives; Thomas Foley, senior director of Professional Convention Management Association; Peter Pantuso, president and CEO of the American Bus Association; and Paul Van Deventer, president and CEO of Meeting Professionals International. David Dubois, president and CEO of International Association of Exhibitions and Events, facilitated.

"The main purpose of the town hall was to bring in some of our national hospitality and tourism leaders to help educate the local stakeholders and broader community about the value of meetings and conventions," says Hutchinson. "We must get local stakeholders on board."

Social Media Levels the Playing Field
From a marketing standpoint, social media has leveled the playing field between first-, second-, and third-tier cities. "Social media has helped buoy local insights as to why you should visit a particular destination and what unique experiences you will get," says Christine Shimasaki, CDME, CMP, managing director of Destination Marketing Association International's empowerMINT.com and Event Impact Calculator.

She adds that not only is branding important but so is perception. "The internal stakeholders responsible for the meeting all have impressions and perceptions about destinations as to where they would like their meeting held. Branding, exposure, popularity from a leisure standpoint, are often very important in decision making as to where that meeting is located. It's important to stress that second and third tier doesn't mean second and third best."

Go For The Bronze
Making the case for third-tier destinations

Mobile, AL, is best described as a third- tier city. "Even with the catchiest of taglines, a first-tier destination will differ from a second-tier destination and second-tier from third-tier based on such factors as total gross square footage of the convention center, total inventory of guest rooms, air accessibility, and entertainment options," says Charlotte, NC-based Patty Richbourg, CMP, senior director of global accounts for HelmsBriscoe. She says each tier has specific advantages and disadvantages and that, "it can be trying to compare apples to oranges."

Unlike a hotel rating system, there is no official list that designates a city as first-, second-, or third-tier. Perception is a factor. What one planner may consider second-tier  may be third-tier city to another planner.

Some meeting groups prefer second- and third-tier cities, as they want to be a big fish in a smaller pond. The current economic climate is benefitting these cities. "Conventions that normally would consider a second-tier city may find their rates are too high and will look at third-tier cities," says Richbourg. "As demand gets stronger for rooms and space, rates go up in first-and second-tier cities."



Working Together Is Vital
Charlotte, NC-based Patty Richbourg, CMP, senior director of global accounts for HelmsBriscoe, says the most successful destinations work together as a community to sell the destination. "Everybody has to sell the city first," she says. "It's important to remember that a rising tide raises all boats."

At present, Mobile's mix of business is 40 percent meetings and conventions and 60 percent leisure travel. Hutchinson's goal is to get that closer to 50/50. Many first-time visitors are surprised by all that Mobile has to offer -- historic homes that include antebellum mansions and Creole cottages, a safe and walkable downtown, fine dining, golf, museums, arts, and culture.

"We have all these great assets but need to focus on the one thing we feel we can talk to the consumer about that will resonate with them and get them excited to come to Mobile," says Hutchinson. "We need to create an emotional connection to have visitors come here and go home and tell others that Mobile is a must-see destination." Plus, as is the case with most successful branding propositions, it should be interchangeable between the leisure and meetings markets.

For its part, Caesars has started encouraging its clients to consider having east-west rotations for its conventions utilizing its properties in Las Vegas as well as Atlantic City. "Our customers have been quite receptive," says Massari.

 

WaterfrontCC
The Waterfront Conference Center at Harrah's Resort is set to open in Atlantic City this August

According to Walt Galanty, president of AIM Meetings and Events, a full-service outsourcing company, who was instrumental in the first booking at Harrah's new Waterfront Conference Center, Caesars' plan is working. An international group of approximately 1,600 from an aerospace medical association will be meeting at the center the end of next April, bringing attendees and exhibitors from 33 countries.

"We would never have even considered Atlantic City if it wasn't for the new conference center and the financial incentives given to us," says Galanty.

But due to AIM's relationship with Caesars Entertainment, he moved this conference from Las Vegas in 2016 to Atlantic City thanks to a great deal from Caesars on the hotel side as well as offerings in airport pickups, registration help, and food and beverage assistance. Safety, accessibility, and a breadth of activities were some of the issues Galanty had to address with his client.

"Unfortunately, until three or four years ago, the city took all its gambling tax money and sent it to the rest of state and didn't use it to revitalize its neighborhoods," adds Galanty. "People need to look beyond the negativity in the press and look at the individual locations in order to determine what's best for them. That's what we did and we are glad we got the incentive to bring people from all over the world to showcase this new conference center."

These incentives align with Meet AC's initiative to rebrand Atlantic City as a meetings destination. It is so committed to this task that a $1-million incentive program is in place, available to new groups or those that have not met in the city for three years, with arrival dates through 2016.

If a destination only talks about things like its hotels and convention centers, chances are pretty good it will not make a strong and lasting connection with potential clients.

"Unless a destination builds its marketing voice around that oath of emotional relevance or emotional wellbeing to a consumer, odds are good they are going to fall into the trap of navel gazing, talking about all their stuff like a self-centered person at a party would," says Webb. BCF is hard at work looking at Mobile from a creative point of view to create emotional and physical relevance to today's traveler.



Questions or comments? Email adoyle@ntmllc.com



This article appears in the May 2015 issue of Successful Meetings.