January 2007
Marketwatch: Facility rental

Most shows pay exhibit hall rental fees

By Danica Tormohlen

What’s comped and what’s not? The answers may surprise you. Most shows (83 percent) pay for exhibit hall rental while only 17 percent of shows report these fees are comped, according to the 108 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in November 2006. Fifty-eight percent of shows paid 60 cents or less per square foot for exhibit hall rental for show days only in 2006. Nearly half of shows report rental rates will stay the same in 2007, but 43 percent report rates are increasing.

Convention centers do comp a number of other services. Sixty-six percent of shows report meeting rooms are comped, and 52 percent say ballrooms/banquet rooms are comped. Most shows (58 percent) say they paid for move-in/move-out days, and only 31 percent report they were comped. But 60 percent of shows report move-in/move-out rates were negotiated. What else is negotiable? More than half of respondents say meeting rooms, ballrooms/banquet rooms, A/V and food and beverage are negotiable.

What’s the biggest frustration with convention center pricing and/or negotiation practices for show organizers? A number of show organizers cite issues with exclusive contractors, excessive fees for other services to generate revenue, inconsistency in pricing from center to center and show to show, and labor rates.

Other incentives
Other than free space, what, if any, additional incentives did the city/center provide?

Transportation - 8%
Credit to final invoice - 16%
Housing services - 14%
Hosted reception/event - 14%
Travel expenses or FAM trips for staff, board, press, etc. - 13%
Signing bonus - 4%
Other - 5%
None - 56%

What’s comped?
Did you pay for the following convention center services or were they comped for your largest show in 2006?

Paid - Comped - N/A
Security - 85% - 9% - 6%
Meeting rooms - 26% - 66% - 8%
Ballrooms/banquet rooms - 29% - 52% - 19%
Parking - 51% - 24% - 25%
Internet - 78% - 7% - 15%
Wireless - 70% - 9% - 21%
Signage - 73% - 16% - 11%
Trash removal - 75% - 17% - 8%
Move-in/move-out days - 58% - 31% - 11%
Heating/air conditioning - 36% - 55% - 9%
Electricity - 71% - 24% - 5%
Lighting - 45% - 46% - 9%
A/V - 85% - 7% - 8%
Food & beverage - 88% - 4% - 8%
Plasma/digital signage - 38% - 14% - 48%
Other technology services - 41% - 4% - 55%

What’s negotiable?
If you paid for the following convention center services, did you negotiate off the rate card for your largest show in 2006?

Yes - No
Security - 49% - 51%
Meeting rooms - 57% - 43%
Ballrooms/banquet rooms - 63% - 37%
Parking - 24% - 76%
Internet - 43% - 57%
Wireless - 43% - 57%
Signage - 49% - 51%
Trash removal - 37% - 63%
Move-in/move-out days - 60% - 40%
Heating/air conditioning - 32% - 68%
Electricity - 26% - 74%
Lighting - 22% - 78%
A/V - 52% - 48%
Food & beverage - 54% - 46%
Plasma/digital signage - 32% - 68%
Other technology services - 39% - 61%





Danica Tormohlen is Editor of EXPO. She can be reached at 913-344-1303 or e-mail: dtormohlen@ascendmedia.com.

MORE ON EXPOWEB.COM
Find additional exclusive Web-only content from this study, including:
• Profile of survey respondents
• Verbatim responses on show organizers’ biggest frustration with convention center pricing and/or negotiation practices

Plus, find links to these related EXPO archived articles:
• The Going Rate, May 2004
• Creative Negotiations, November/December 1993
• Beyond the Fine Print, July/August 1991

EXPO Magazine has partnered with Exhibit Surveys Inc. to conduct the Marketwatch surveys and report the results. For more information about Exhibit Surveys, visit www.exhibitsurveys.com or call 800-224-3170.
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