By Michelle Bruno

When exhibitors started choosing hospitality suites over booth space, Michael Garner, Senior Vice President of Dobson & Associates in Washington, DC, the company that manages the National Cable and Telecommunications (NCTA) show, went to general contractor Freeman Decorating Cos. for a solution. “Can we put something on the show floor to serve this need for hospitality suites?” Garner asked. “Can it be less expensive and prevent exhibitors from going to a hotel?”

From this conversation, the “executive suites” concept — a turnkey conference room complex located next to the exhibit floor — was born. These all-inclusive modular systems, which came in several sizes, configurations and prices, kept 19 companies in the 2002 show.

In the face of slowing traffic on the floor and exhibitor attrition, some proactive show managers have called on their general contractors for clever, innovative solutions. “The value of the contractors is that they see hundreds of shows and they see what works and what doesn’t,” Garner says. Today, instead of looking at contractors as commodities, savvy show managers are calling on them to become strategic partners, invested in the long-term success of the show.

Suites aren’t just for hotels
Weaknesses in some segments of the cable industry were the cause of increasing exhibitor attrition at the 2002 NCTA show, held in New Orleans. This industry is unique because many large exhibitors already have contracts with attendees and see the show primarily as a means to network and negotiate contract extensions with existing customers. Many major exhibitors were looking for ways to reduce expenses and still participate in the show. “Some exhibitors were spending $750,000 to $1 million dollars, when you take into account the costs of the booth design, build, installation, dismantling, freight, drayage and staffing,” Garner says.

To counteract the trend of exhibitors booking hospitality suites, Freeman’s design team fleshed out the “executive suites” concept, which reflected a hospitality suite environment rather than a traditional display or demo area. The suites featured limited customization options and an all-inclusive pricing structure. Using modular system components, they included furnishings, carpet and custom digital graphics and were offered in several sizes, configurations and price levels.

Because the executive suites shouldn’t compete with pricing for exhibit space, the suites were priced the same as exhibit space plus the cost of the suite. In addition, the separate Executive Suite Hall featured longer hours (7:30 a.m.–7:30 p.m.) than the main hall (10 a.m.–6 p.m.) to allow for early morning and evening appointments. Catering was permitted in the suites, but no demonstrations or entertainment.

The executive suites added 20,000 square feet to the 150,000-square-foot show, and the cost was estimated at only 20 percent of what traditional exhibit space and the associated costs would have run. In a post-show survey, most companies that took suites said they would choose that option again in 2003 and may increase their size. Some even expressed interest in having both a traditional booth and an executive suite in the next show, letting them take advantage of the excitement and exposure of the main floor but also enjoying access to private meeting space.

Taking pavilions to new heights
Pavilions are one established area that is growing because of current market conditions. Pavilions featuring product innovations, start-up companies, leading-edge technologies, applications and product life cycles give exhibitors (especially smaller companies) an opportunity for increased exposure to a broader range of attendees. These specialized groupings of companies and merchandise also build traffic and let smaller exhibitors get in the game by packaging show services at affordable prices.
One variation on the pavilion theme is IDG World Expo’s “Rookery Pavilion.” A rookery, as defined by Webster’s dictionary, is “a roost or nest for penguins.” At Linux World Conference and Expo, the Rookery Pavilion is a nesting place for start-up companies looking for their first taste of show business. In a new industry segment, such as Linux-based technology and applications, there are few large companies to anchor a show. The companies that do exist have to be cultivated and mentored through the exhibiting process with vehicles like the Rookery Pavilion.

The Rookery Pavilion is brought to life by GES Exposition Services. The exhibitor package includes electrical, drayage and exhibit space. At other shows that offer pavilions, the package also includes carpeting and Internet access.

For a new twist on the product pavilion, look no further than the “World of Sports Innovation” that debuted this year at The Super Show. Exhibitors need only bring their products and information, and the rest of the services are provided. Participating companies can spend as little as $4,000 (less if they’re also exhibiting outside the pavilion) or choose from several upgraded packages that include such amenities as meeting room space (walls, a table and two chairs), booth space outside the pavilion, Web links, graphic displays and opportunities to demo products.

Irving, TX-based The Expo Group worked with The Super Show to develop and refine the World of Sports Innovation, which occupies 150,000 square feet of space inside the show and utilizes only hard wall systems throughout. The concept has been well-received by exhibitors who may not otherwise have the opportunity to participate, and it brought Nike back into the fold.

Fun on the midway
Medical shows and conferences are faring well today, perhaps because they boast a compelling conference program that lets doctors and healthcare providers obtain the education credits required to maintain professional designations and specializations. But while doctors sit in conference rooms or troll the hallways for networking opportunities, the exhibit floor may not always get the lion’s share of attendees.
A client, Christine Chaney Lyons actually helped Champion Exposition Services find a solution to this problem, with a “midway” concept. “You take everything that has traditionally been located in the lobby (registration, badge pick-up, travel, local attractions, CEM verification, coffee service, meet and greet, restaurant reservations, membership services) and put it inside the show,” says Jim Ellsworth, Vice President of National Sales at Champion. The resulting midway of services that can also include a cyber café and other sponsorship opportunities has proven compelling enough to draw conference attendees into the exhibit hall, where they might even take a stroll around. Lyons is now with another association, and she plans to use the idea at other shows.

The midway can be cleverly labeled and designed with different colored carpeting, graphics or a theme. The hours are usually longer than the show hours, requiring that access to the exhibit floor be draped off at times. Ellsworth’s advice on determining whether the midway style is appropriate for your event: “Ask whether there are people who would come to an event who wouldn’t normally frequent the show.” Then, “Decide what services or attractions would bring them in. You’re looking for what is most interactive for the attendee,” he says.

Changing with the times
Unfortunately, many of the ideas contractors have been asked to implement are clear examples of “robbing Peter to pay Paul.” The money saved by exhibitors and added to the bottom line of organizers has come at the expense of the contractors. Packaged services and pavilions appeal to the end-user but deplete the largest revenue stream contractors have — drayage and material handling.

Things are starting to come to a head, say some industry experts. The Expo Group’s President and CEO Ray Pekowski says, “You have to be a realist about where the economy is going right now. The dynamics are the same (organizers produce the show, contractors supply the services and exhibitors pay the bills), but the general contractors are probably more vulnerable now than at any other time in history.”

Pekowski says true change will come when contractors reposition themselves with technology or other strategies and organizers stop looking at them as a “commodity.” What contractors offer, he explains, is supply chain management and an infrastructure
for supplying services. “The suppliers may change, but somebody or something has to
be the glue to hold everything together,” he says.

Michelle Bruno is an event manager and writer based in Salt Lake City, UT. She has worked in and written about the international exhibition industry since 1984. She can be reached at michelle@brunogroup.com.