When planning the annual National Business Conference for a brand as unique as Subaru of America, Ted Dicks, the Japanese automaker's shows and events manager, has more than a few factors to consider.
"The major goal of the conference is to get in front of all of our retailers, and our key marketing partners, as well as all of our own field staff," says Dicks. "It's the one time of year we get everybody under the same roof so we can communicate our corporate strategy."
While the content of the meeting is clearly the major draw, Dicks says the company strives to select venues that are "somewhat unique and true to the Subaru brand." That said, "Affordability is definitely a key determinant because all of the attendees pay their own way with hotel and airfare and so forth," according to Dicks. "Even though it's not our out-of-pocket costs, we definitely want to make sure that it's not a deterrent for people attending the meeting."
This year, Dicks picked Indianapolis. The first factor to turn Subaru's attention to "Indy," as the city convention and visitors bureau markets it, was that without a major new model introduction, the company wanted to showcase a significant expansion of its factory in Lafayette, IN, about an hour's drive away. Choosing Indy let the company incorporate tours and time on the factory's test track into the program.
"We did look at the room rates that we got at the various hotels," Dicks says, adding that Subaru ended up choosing the JW Marriott Indianapolis as its headquarters hotel, with two other nearby Marriott properties for spillover and staff. "They were very competitive to other destinations that we were looking at and have been to in the past. We also looked at the airlift into the city. We definitely wanted to make sure there was enough capacity and convenient flights going in and out of the city before we booked it."
AFFORDABILITY ATTRACTS
The cost of a destination remains a key factor in decision-making, says Bonnie Boisner, vice president of events for Minneapolis-based Aimia, Subaru's third-party planning partner. "Budgets are always tight," she says. "Not as tight as they were two years ago, but people want more for their dollar. [Corporate meeting planners] are getting the same budgets as they did last year -- maybe a little more -- but every year they need to outdo what they did before. So yes, affordability comes up, I would say 70 to 80 percent of the time."
As a result, planners are looking at many second- and third-tier cities that provide a good bang for their buck, but are also interesting destinations that offer something else to attract people while they're not in meetings. This includes great dining options, lively nightlife and entertainment, or an exciting outdoors environment, among other factors.
"Groups have been to a lot of different places, but they are always looking for something new, somewhere different to go," Boisner says.
But knowing which new places to look at is key. "There are some destinations that people are not excited by until they get there, and then they are so blown away," says Mary Ann Grovak, design and purchasing manager of Minneapolis-based BI Worldwide.
Of course, not all of the affordable cities in the U.S. are unknown or even considered second tier, at least from a meetings industry perspective. In a survey of 112 corporate, association, and third-party planners conducted by Successful Meetings this spring, the top three cities mentioned were the top three in Cvent's annual list of the "Top 50 Meetings Cities:" Orlando, Chicago, and Las Vegas. And three more -- Dallas, Denver, and New Orleans -- were in both surveys' top 10.
"Clients are saying, 'I've really kind of done the main cities,'" says Sarah Williams, senior purchasing manager at Chicago-based BCD Meetings & Events. "A lot of people are trying to save money and they're looking for a different kind of experience that a second-tier city can offer."
Subaru's choice, Indianapolis, is one of those. "What we've been seeing in Indianapolis is the convention center expansion is really good," says Boisner. "We've got some big groups that probably didn't go there in the past that are considering it again."
There are more than 250 restaurants, shops and attractions in walking distance of downtown's Indiana Convention Center. "They built this city that is so compact and friendly, and so walkable, that you do not have to pay for ground transportation," says Grovak. "You can build an entirely walkable program. That is very rare."
EXCITING, AFFORDABLE CITIES
Affordable second- and third-tier cities that have something to offer -- rich culture, good culinary offerings and nightlife, scenic beauty -- have been coming up a lot lately in conversations with clients, says Williams.
Aimia's Boisner agrees. "It's not just the price tag but their central location," she says. "They've got good airlift and they've got some other attractions that add to the attendee experience."
"I think any of those third- or fourth-tier cities in the Midwest -- like St. Louis, Milwaukee, Minneapolis, or Columbus -- are very affordable," Williams says. "Most have large convention centers and bigger, nicer convention hotels going in."
Another factor, Boisner adds, is the type of attendees. "There are different cities that appeal to different types," she notes. "When you look at people who are an eco-friendly, nature-loving group, we'll look at destinations like Salt Lake City, Seattle, and Denver. If people are really into the music and entertainment scene, there's Nashville and Austin."
Here's a closer look at five good choices:
Minneapolis, MN
A center of the meeting planning industry, "Minneapolis is a very affordable, easy to get in-and-out-of destination," Boisner says. "Foodie bible Saveur named it 2015's Next Great American Food City." And clothing and shoes are tax-free in the home of the famous, 520-store Mall of America.
Minneapolis is also a major sporting city, with six teams. "We are hosting the Super Bowl in 2018," says Melvin Tennant, president and CEO of Meet Minneapolis. "That we were selected to hold an event of that magnitude, in the winter, refutes the idea that you can't meet in Minneapolis in the winter."
All the major convention hotels and the Minneapolis Convention Center itself are connected via climate-controlled skyways and are close enough that most groups need no delegate transportation, he adds. Tennant's agency also to points out that the city has more days of sunshine than Chicago or Indianapolis.
San Antonio, TX
"San Antonio is a culturally rich city that is a great value when you look at all it has to offer groups. There are premium hotels, and a convention center within walking distance," says Linda McNairy, director of business development for American Express Meetings & Events. "The availability of hotel rooms, meeting space, and the food-and-beverage experience are enhanced by the southwestern sensibilities, while also having the opportunity to feature the cultural diversity of San Antonio, delivering a unique meeting experience. Meeting planners and guests consistently give San Antonio a high rating for perception, friendliness, hotel accommodations, cuisine, and the environment."
The city's world-famous River Walk dining, shopping, and entertainment district, "is right outside your doorstep when you meet downtown," says Casandra Matej, executive director of the San Antonio CVB. "A lot of attendees use their feet because downtown is so walkable." She also points to historical attractions like The Alamo and other Spanish-Colonial missions, which are available as private event venues. An outpost of the Culinary Institute of America has helped bring a lot of small, creative restaurants to town, she adds.
Palm Springs, CA
"Some people think of Palm Springs as a sleepy old town, but from my perspective Palm Springs is iconic. You can rent one of Frank Sinatra's homes -- it has a pool in the shape of a piano, and the pergola forms shadows in the shape of keys -- and it is affordable," says Grovak. "You're not able to do that in many places. If you pick the right time of year, you can get in with very strong room rates. It is a value city and very eco-friendly. The first thing you see flying in is this giant wind farm."
Denver, CO
Aside from incredible scenery, the mile-high city "has great meeting space, a beautiful convention center, and it's very eco-friendly," says Boisner. Denver also offers a central location and good airlift. "What they've done to downtown Denver over the past decade -- it's very walkable there, they've got the [pedestrian-only] 16th Street Mall, great museums, and great restaurants and brewpubs," she says. "It also has some of those different venues like the Red Rocks Amphitheater. We've used that before as a venue."
Questions or comments? Email ljakobson@ntmllc.com
This article appears in the July 2015 issue of Successful Meetings.
Which Costs Matter Most
According to the Successful Meetings "Affordable Cities Survey," the two most common reasons for choosing an affordable city are that its location makes it easy for attendees to get there (according to 79 percent of respondents) and that the budget rules out more expensive destinations (according to 69 percent).
"The two big [cost] buckets are hotel and air," says Mary Ann Grovak, design and purchasing manager at BI Worldwide. "Even if a client is not using us to buy air, we do an analysis of each destination we propose for each client of what we predict the airline costs will be, [as] it cannot be predicted as a general thing. Depending on the origin cities and time of year, Orlando, for example, is sometimes crazy expensive, sometimes so affordable.
This unpredictability may be why the "Affordable Cities Survey" respondents ranked airfare fifth when asked about the most important factors in determining a city's affordability. Room rate was first, according to 95 percent, followed by meeting space costs (92 percent), on-site food and beverage costs (86 percent), A/V costs (78 percent), and then airfare (63 percent).
Bonnie Boisner, vice president of events for Aimia, adds that other factors worth looking at include venues' taxes and surcharges. "A hotel might offer really low room rates but then you look at some of their taxes and some of their surcharges," she adds. "Shipping fees might be $25 or $30 per box delivered or even more -- that can add a lot. We look at labor rates in a hotel. If we have to have people there early and late [charging overtime] sometimes those fees get kind of extraordinary."
She adds, "How extravagant your F&B needs to be, obviously, is a big piece of it, too."
Grovak notes that paying attention to ground transportation costs is vital. "One hotel versus another can double this cost," she notes.
EXCITING, AFFORDABLE CITIES
Affordable second- and third-tier cities that have something to offer -- rich culture, good culinary offerings and nightlife, scenic beauty -- have been coming up a lot lately in conversations with clients, says Williams.
Aimia's Boisner agrees. "It's not just the price tag but their central location," she says. "They've got good airlift and they've got some other attractions that add to the attendee experience."
"I think any of those third- or fourth-tier cities in the Midwest -- like St. Louis, Milwaukee, Minneapolis, or Columbus -- are very affordable," Williams says. "Most have large convention centers and bigger, nicer convention hotels going in."
Another factor, Boisner adds, is the type of attendees. "There are different cities that appeal to different types," she notes. "When you look at people who are an eco-friendly, nature-loving group, we'll look at destinations like Salt Lake City, Seattle, and Denver. If people are really into the music and entertainment scene, there's Nashville and Austin."
Here's a closer look at five good choices:
Minneapolis, MN
A center of the meeting planning industry, "Minneapolis is a very affordable, easy to get in-and-out-of destination," Boisner says. "Foodie bible Saveur named it 2015's Next Great American Food City." And clothing and shoes are tax-free in the home of the famous, 520-store Mall of America.
Minneapolis is also a major sporting city, with six teams. "We are hosting the Super Bowl in 2018," says Melvin Tennant, president and CEO of Meet Minneapolis. "That we were selected to hold an event of that magnitude, in the winter, refutes the idea that you can't meet in Minneapolis in the winter."
All the major convention hotels and the Minneapolis Convention Center itself are connected via climate-controlled skyways and are close enough that most groups need no delegate transportation, he adds. Tennant's agency also to points out that the city has more days of sunshine than Chicago or Indianapolis.
San Antonio, TX
"San Antonio is a culturally rich city that is a great value when you look at all it has to offer groups. There are premium hotels, and a convention center within walking distance," says Linda McNairy, director of business development for American Express Meetings & Events. "The availability of hotel rooms, meeting space, and the food-and-beverage experience are enhanced by the southwestern sensibilities, while also having the opportunity to feature the cultural diversity of San Antonio, delivering a unique meeting experience. Meeting planners and guests consistently give San Antonio a high rating for perception, friendliness, hotel accommodations, cuisine, and the environment."
San Antonio's famous River Walk
offers great hotels, scenery, and dining,
as well as a great way to explore the cityThe city's world-famous River Walk dining, shopping, and entertainment district, "is right outside your doorstep when you meet downtown," says Casandra Matej, executive director of the San Antonio CVB. "A lot of attendees use their feet because downtown is so walkable." She also points to historical attractions like The Alamo and other Spanish-Colonial missions, which are available as private event venues. An outpost of the Culinary Institute of America has helped bring a lot of small, creative restaurants to town, she adds.
Palm Springs, CA
"Some people think of Palm Springs as a sleepy old town, but from my perspective Palm Springs is iconic. You can rent one of Frank Sinatra's homes -- it has a pool in the shape of a piano, and the pergola forms shadows in the shape of keys -- and it is affordable," says Grovak. "You're not able to do that in many places. If you pick the right time of year, you can get in with very strong room rates. It is a value city and very eco-friendly. The first thing you see flying in is this giant wind farm."
Denver, CO
Aside from incredible scenery, the mile-high city "has great meeting space, a beautiful convention center, and it's very eco-friendly," says Boisner. Denver also offers a central location and good airlift. "What they've done to downtown Denver over the past decade -- it's very walkable there, they've got the [pedestrian-only] 16th Street Mall, great museums, and great restaurants and brewpubs," she says. "It also has some of those different venues like the Red Rocks Amphitheater. We've used that before as a venue."
Questions or comments? Email ljakobson@ntmllc.com
This article appears in the July 2015 issue of Successful Meetings.