Selling a Gaming Destination to the C-Suite

Making the business case for gaming destinations

It is now more important than ever for planners to make it clear that their meetings - particularly those held at gaming destinations - have clear business value. The 2010 General Services Administration (GSA) training event held in Las Vegas that was billed "excessive, wasteful, and in some cases impermissible" by the organization's inspector general put the meeting industry on the defensive, working to distinguish the legitimate work they do from that $823,000 boondoggle. GSA Administrator Martha Johnson resigned shortly after the allegations of wasteful spending were made, but a subsequent awards ceremony held by the group in Novermber 2010 in Arlington, VA, has drawn the ire of two prominent Democrats who sit on the House Transportation and Infrastructure Committee. Dan Tangherlini, the acting administrator of the GSA, in July cut executive bonuses and canceled 36 scheduled conferences.

Although the meeting industry's own critical response to the first wave of this scandal was quick - the Society of Government Meeting Professionals (SGMP) released a statement just two days after Johnson's resignation in April - the message was hard to hear over the outraged crowing about clowns and violinists from mass media outlets. Charles Sadler, who until recently was executive director and CEO of SGMP, pointed critics to the real purpose of the GSA's training conference: education.

"GSA's black eye for this 2010 WRC meeting will be SGMP members' and leaders' golden opportunity to advocate for the training and certification of government planners. This acknowledgement of the importance of providing education and resources for meeting planning is the first step toward ensuring that government policy and best practices for efficient, cost-effective meetings are the standard - starting with the career government employee and continuing all the way up to the appointee who may head a federal agency," Sadler wrote in a statement.

As Sadler saw it, the silver lining of the scandal is the acknowledgement of the importance of a meeting's core content as its raison d'etre. The GSA debacle was an example to planners of what not to do, and a reminder that with the growing scrutiny on all expenditures, C-suite executives must be as concerned with perception as they are with facts.

Does that mean Las Vegas is a no-go? Absolutely not. Popular gaming destinations such as Las Vegas, Reno, Lake Tahoe, and Atlantic City provide distinct advantages for groups, so it's worth pursuing what might be a tough sell to your CEO, CFO, or procurement department.

Getting Down to Business
Local experts in cities such as Las Vegas and Reno are used to the sort of scrutiny that ensues when a scandal kicks up dust, and they know how to shift a difficult conversation about perception into one about results.

"We focus on the business attributes of Atlantic City," says Gary Musich, vice president of convention development for the Atlantic City Convention & Visitors Authority. He reminds skeptics of Atlantic City's proximity to cities throughout the northeastern United States - it's located approximately 100 miles from New York, less than 300 miles from Boston, less than 60 miles from Philadelphia, and just 150 miles from Washington, D.C. - as well as the quality of business services in the city.

"The entire meetings and convention industry continues to face challenges in promoting the value and return-on-investment of face-to-face meetings, and Las Vegas faces that same challenge," says Chris Meyer, vice president of sales for the Las Vegas Convention and Visitors Authority.

He is also quick to point to the business advantages of Las Vegas as a destination.

"Meeting planners are well aware of the value and return-on-investment of holding a meeting in Las Vegas, and we work hard to help them translate that value to the bottom line to convince their executives," he says.

Specifically, Meyer points to the Vegas Means Business web portal. Planners can consult the site for valuable tips, tools, research, and client testimonials that show that Las Vegas is a productive and valuable business destination.

"Our resort partners have invested billions of dollars in providing the best possible business facilities, amenities, and services to make sure Las Vegas is a place where business gets done," he says.

A Numbers Game
Another distinct advantage of gaming destinations is the sheer amount of space available to groups. "We are home to three of the country's 10 largest convention venues, and more than 10.6 million square feet of meeting and exhibit space overall. That is why we host more than 19,000 events a year," Meyer boasts of Las Vegas. "There is no other place in the world that offers the world-class dining, amenities, and entertainment options Las Vegas does. Our destination is open 24/7, which means you can spend as much time as you need to get business done and still find a great meal or show to end your day."

Of course, Las Vegas isn't the only gaming destination teeming with meeting and convention space. Atlantic City is home to a 486,000-square-foot convention center and dozens of mega-hotels with dedicated space for meetings and events. Reno and Lake Tahoe are also blessed with resorts with plenty of space for groups, as well as the 381,000-square-foot Reno-Sparks Convention Center and the 118,000-square-foot Reno Events Center downtown.

Resort casinos are vast and, as such, they offer up plenty of space for groups. The eight Caesars properties in Las Vegas boast 1 million square feet of meeting space and 25,000 hotel rooms. Donald Trump's two Atlantic City resorts have a combined 180,000 square feet of meeting and event space. Even the relatively out-of-the-way Foxwoods Resort Casino in Ledyard, CT, boasts 150,000 square feet of meetings and event space and the capacity to host groups of up to 2,000.

Value Proposition
Seasoned planners know the competitive value of high-volume destinations where the prices of room blocks, flights, and entertainment are constantly in flux. The executive in the corner office, however, is not necessarily aware of how a "splashy" destination like Las Vegas or Lake Tahoe can actually keep meeting costs down. You might need to break down just how your destination ends up being a value destination, as Meyer does for Las Vegas:

"Las Vegas has more than 150,000 rooms, most of which are on the Strip and close to the airport," he points out. "McCarran International Airport welcomes more than 900 flights daily. And while other cities promote average daily room rates in the mid-200s, Las Vegas' rates hover around $105 a night."

Along similar lines, Reno and Lake Tahoe have more than 20,000 hotel rooms, and nonstop flights are available from 22 markets. There are approximately 180 daily arrivals and departures at the Reno-Tahoe International Airport. The airport is currently undergoing a $26-million construction program that will improve the terminal building, create a single security checkpoint, and expand dining and shopping options. Several resort casinos in the city are also undergoing renovations. With so much momentum in the Reno-Tahoe market, it's easy to make the case for taking advantage of highly competitive rates on flights and rooms.

Group Think
Another distinct advantage of gaming destinations can be a dedicated focus on the group market. These destinations are able to offer event organizers specialized attention and focus on their business needs in addition to the numerous logistical details of their bookings. There are also the little extras. For example, the Atlantic City Convention & Visitors Authority provides a complimentary restaurant reservations cart for meetings of 600 attendees or more that are held in the Atlantic City Convention Center.

Entertainment is also a factor for groups. While gaming is a surefire draw in Atlantic City, Las Vegas, or Reno, planners won't want to neglect their research on other group activities. Whether it's skiing in the hills surrounding Lake Tahoe, golfing at Ballamor in Egg Harbor, NJ, or taking in a Cirque du Soleil show in one of the many theaters along the Strip in Las Vegas, the entertainment choices in and around gaming destinations are generally outstanding and value-priced.

"Because it's a gaming destination, Las Vegas has a variety of entertainment options," Meyer says. "If entertainment is a factor for a meeting, this can be a cost-cutting advantage for them. Likewise, gaming destinations generally have an abundance of good restaurants and unique venues for groups."

Of course, these details are just the icing on the cake. The fundamental value proposition of gaming destinations such as Las Vegas or Atlantic City lies in the flexibility of airlift, hotel inventory, and pricing - this can be boiled down to "shop around." At the same time, working with local experts whose sole focus is the group market lets planners and organizers focus on top-level issues like meeting design and long-tailed meeting objectives - which simply boils down to "good business." SM