Convention center space for a dollar? Three-quarters of a million bucks in cash? If you think, "I could never get that for my conference," think again.
Thanks to the building boom of the last five years—when the supply of exhibit space increased by 5 percent each year while the economy stagnated—many association planners are finding that the ball is now in their court when it comes to getting discounts for their annual meetings. Convention centers especially, often notorious in the past for nickel-and-diming clients, are proving a lot more flexible these days, due to more competition.
"In the Northeast alone, you have four major buildings competing in the same marketplace—the brand-new centers in Boston and Washington D.C., plus Philadelphia's and Atlantic City's, which aren't that old," notes Joseph Floriano, executive director of the Riverside Convention Center in Rochester, NY, who also serves on the site selection committee of the International Association of Assembly Managers. "And on the West Coast, you've got new centers in Seattle, San Jose, and Los Angeles, plus expansions in San Francisco and San Diego. All of that plays to the advantage of the meeting planner."
Indeed, Floriano himself, without revealing specifics, says he negotiated "a great deal" from the Boston Convention Center for IAAM's annual conference in 2009. While normally a first-tier city like Boston would be too expensive for the 3,000-attendee meeting, the center was in the final stages of construction at the time "and they wanted to book as much business as possible," he explains. Bottom line? "It doesn't hurt to ask for a discount." And Floriano's not alone in his sentiment. Successful Meetings spoke to association planners and city officials across the country and found that even planners of medium-sized gatherings are finding it easier to meet on the cheap.
Let's Make a Deal
Recent research shows that convention centers feel pressure to hand out discounts nowadays. TradeShow Week reports that 27 percent of association show managers were offered free exhibit space in the last two years. And according to a study last fall by Plymouth, MN-based consulting firm CSL International, nearly half of planners surveyed—47 percent—had recently negotiated a rental-rate discount of greater than 50 percent, while 28 percent had paid no rent at all.
"Right now there's very much a cooperative attitude, not only at convention centers but also within entire cities," offers Eleanor DeMoors, director of meetings and exhibits for the National Telecommunications Cooperative Association in Arlington, VA. Though DeMoors' meeting isn't the most massive—3,000 attendees and 15,000 net square feet of exhibit space—she found that the Long Beach, CA, CVB was nonetheless willing to pull out all the stops to convince her to book her 2009 conference there.
"The whole city came together as a package," says DeMoors of her experience working with Long Beach, which she describes as "wonderful." Besides grant-ing a 30-percent discount on convention center rental space, the CVB helped her secure extra rooms downtown so that overflow to more distant properties was minimal, thereby saving her money on shuttle service. Moreover, hotels proved flexible on their room rates. Says DeMoors, "From every angle that I dealt with the city, they said, 'You tell us what works best for you—we're here to host you in 2009.' They couldn't have been more gracious. "
Even DeMoors' more unusual requests—such as setting up registration a day before the exhibit hall would be used, or leaving her AV equipment overnight in the theater—were gladly granted by the convention center. "Whatever they couldn't guarantee in the contract, they put in a letter of intent," she says. "It really made me feel more comfortable and confident enough to go through with the booking."
Bowling for Dollars
Who would have thought that a bunch of folks in funny shoes who are obsessed with knocking down pins could mean a truckload of dollars for a destination? Wichita, KS, that's who. Like many second-tier cities, it's hungry for business and especially eager to attract association meetings. That's why the Greater Wichita CVB went to such extravagant lengths to lure the 2011 American Bowling Congress tournament.
The five-month competition—the second largest amateur sporting event after the Olympics—will bring 60,000 bowlers and their families to the city and use more than 100,000 room-nights. So it's no wonder that Wichita put together a stimulus package worth more than $2 million to win the bid. ABC gets free use of the Century II Convention Center—worth $840,000—where it will build 60 bowling lanes and mount an extensive trade show, says Michele St. Marie, director of marketing alliances, promotions, and events for the Greendale, WI-based association. ABC will also receive direct payments of $750,000, while the bowlers will enjoy a discount dining and shopping package worth $300,000.
"Wichita had been trying for a number of years to get this event," says St. Marie of the bidding process, which she witnessed this past March. "When they announced the winner, [the Wichita delegation] started jumping up and down, hugging each other, and giving high fives." Considering that the economic impact of the tournament is expected to reach upwards of $75 million, it's no wonder there were grins all around.
Bargains Galore
Before you protest that your meeting can't possibly compete with a bowling tournament of that size or economic impact, consider the case of Suzette Eaddy, director of conferences for the National Minority Supplier Development Council in New York City. "Our annual conference uses a lot of exhibit space—700 booths—but only 1,500 room-nights on peak," she says. That relatively low sleeping-room usage often made it difficult, historically, to negotiate with larger venues in first-tier cities.
But that attitude seems to be changing. In fact, just because she was willing to shift her dates slightly to accommodate another group, Eaddy obtained a base rental rate of just one dollar to use the Los Angeles Convention Center for her 2002 conference. And for this year's get-together in Washington D.C., as well as next year's in Dallas, she managed to get the room-rental fee for meals served at the convention center waived entirely. "I showed them how much we've spent on in-center food and beverage at our last four conferences"— $250,000 or more for each four-day meeting—"and they agreed," she says simply. "I believe in asking anyone for anything. It's up to them to say no."
Daniel Fenton, president and CEO of the San Jose CVB, says his city learned "the hard way" about the value of the association market. During the dot-com boom, San Jose's near total reliance on high-tech meetings gave it little to fall back on when the bubble burst. Today, in an effort to increase its proportion of association business to 40 percent of total bookings, San Jose is offering nonprofit groups an off-the-shelf discount of 25 percent on convention center space. "The chances of an association meeting downsizing dramatically, or canceling altogether, are much lower than for a corporate meeting," is how Fenton explains this marketing strategy. Or, as Eaddy puts it, "Association business is the cornerstone of this industry. When other groups stopped traveling and meeting, we stayed true."
SIDEBAR
Cool Aid
Need another way to save on your annual meeting? Try securing free help
Associations that use volunteer labor can save thousands of dollars in meeting costs. We asked planners from organizations that rely heavily on volunteers for tips on recruiting and working with the unpaid. Here's what they told us:
Just Ask. Add a field on your registration materials that reads, "Yes, I'd like to volunteer a few hours during the meeting to help out," with a box for attendees to tick off, suggests L.J. Williams, manager of international meetings for Rotary International in Evanston, IL. Also, each city's CVB has a roster of conscientious locals who are willing to volunteer at events.
Be Specific. Meet frequently with all volunteers—not just their supervisors—and outline their responsibilities in writing, says Renee Aubin, manager, convention division, for Lions Clubs International in Oak Brook, IL. She's seconded by Williams: "When volunteers understand their roles and know what to expect, they enjoy the experience more."
Reward them. You're not paying them, so be sure to acknowledge their help, at the very least with a thank-you letter from your organization's president. If you can't afford to throw a party—as Aubin does for the 300 volunteers who help out at her annual meeting—invest in inexpensive mementoes like medals, pins, or caps with logos, urges Williams: "Volunteers love that stuff. It's money well spent."