Resort destinations can boost attendance for some groups, but the challenge is to make the most of vacation appeal while managing the disadvantages.
By Patricia D. Sherman
There’s nothing better than a great resort to entice attendees,” says David Rosenberg, President, Marketing and Events Inc., Newport, RI, who manages meetings and conventions for the Sports Turf Managers Association (STMA, www.newportevents.com). He took the group to Disney’s Coronado Springs Resort in Lake Buena Vista, FL, in January last year.
“We always get the best attendance at popular vacation destinations,” such as Orlando, San Antonio and San Francisco, agrees Robert Rassa, Director of System Supportability for Raytheon Space and Airborne Systems, based in El Segundo, CA. Rassa, who is Chair of the Autotestcon Board of Directors, has managed the Autotestcon (www.autotestcon.com) show since the early ’90s.
Great weather, lots of ready-made entertainment and activities, interesting hospitality venues, established brand recognition and a relaxed atmosphere — what’s not to like about vacation destinations?
Yet even with all this appeal, resort destinations worry show managers. Will the attendees be on the show floor when they should be and not out enjoying the attractions? How will costs stack up against regular meeting cities? Is the destination accessible? The challenge is to make the most of the vacation appeal while managing or avoiding disadvantages.
Easy sell The foremost attraction of vacation destinations for show organizers is the likelihood of an attendance boost. These destinations can also keep attendees and exhibitors alike happy and promote repeat attendance.
Resorts by their very nature come with at least two built-in attendance drivers: weather and spouse appeal.
STMA always meets in January and, because it has a golf tournament, a warm weather destination is required. “The weather is a huge draw for members from the northern United States, and Canada. They know they should be going to their association’s annual meeting anyway, but often they have to sell it to their managers. A warm-weather resort makes them sell better, so they’re more likely to get the OK,” says Rosenberg.
“A lot of people who attend the Autotestcon show and conference only get to one or two conferences a year, so a vacation destination is a big draw,” Rassa says. Last September, 2,000 attended the show at the Disneyland Hotel in Anaheim, CA.
The lure of spouse and family activities also tends to boost attendance. “If the member’s husband or wife wants to come, too, they’re more likely to attend,” Rosenberg says. “Twenty-five to 30 percent of our attendees bring their spouses and children,” says Rassa. “We offer lots of spouse activities and promote them heavily.”
Although in the past a resort destination might have aroused push-back from bosses — of the you’re-just-going-to-have-a-good-time variety — that doesn’t seem to be an impediment anymore, says Peter McGillivray, Vice President of Marketing and Communications for the Specialty Equipment Market Association (SEMA, www.sema.org), based in Diamond Bar, CA. The SEMA Show, which attracted 120,000 attendees and covered 1.1 million square feet of exhibit space in November, has been meeting in Las Vegas since 1977. “Attitudes about meetings in vacation destinations have changed over the years. Now there’s a good understanding of the trade show as a business event. Part of the show experience is being able to entertain buyers and clients and have a nice shared experience.” At the same time, he adds, “We never market our show as being in a great playground.”
Market position Vacation destinations come with established brand recognition. To a great extent, the marketing has already been done, especially for destinations with big advertising budgets, like Las Vegas and Orlando. “We’re happy to enjoy the benefits of the marketing they’ve created,” says McGillivray of Las Vegas.
A destination’s established market position can be extended to support the show. “The theme of the destination marketing, Authentic Desert, fit perfectly into the theme of our meeting, and we were able to build on it,” says Dillian Waldron, Director of Marketing and Programs for New York-based Human Resource Planning Society (HRPS, www.hrps.org), who held the group’s annual meeting in Tucson last April. “Our theme was about revival and renewal and ways organizations can grow and thrive under sometimes difficult conditions. We carried the idea of self-renewal into after-meeting activities, and it really struck a chord with our members.”
Space control For mid-range shows that need about 100,000 square feet of exhibit space, managers can find a variety of resorts at vacation destinations large enough to keep everything at one site. Even if the show is too large for one property, the destination is usually compact enough that busing isn’t necessary.
“Resort space is easier to manage than going to a convention center,” says Rosenberg. His groups take all or most of the space and get lots of attention from the staff. If they have to use a convention center, their show tends to get lost in the space, he says.
Autotestcon used all the meeting and exhibit space and 80 percent of rooms at the Disneyland Hotel, plus a block of rooms at the Grand Californian, says Rassa. “We were the right size for the resort. Their full attention was on us.”
Even if a show is too large for one property, like Metalcon, which met in Tampa in October, the destination still has the vacation appeal, says Clare Kilcoyne, Vice President Trade Shows, PSMJ Resources (www.psmj.com), based in Newton, MA, who has managed Metalcon for 17 years. The 2006 show, with a record attendance of 7,500, used 200,000 square feet of exhibit space in the convention center and 1,600 room nights on peak. The destination was the right size for the group to command attention. “I like to feel that we own the city, and we felt that way in Tampa,” she says.
Happy exhibitors The relaxed atmosphere of a vacation destination was a good setting for a serious show, Kilcoyne says — and not just for attendees. “Tampa had a wonderful pace and great weather that was appreciated by exhibitors,” she says. “They could move their hospitality events outside. Exhibitors may worry about attrition at vacation destinations, but they also benefit from an atmosphere that promotes networking. We tend to forget that exhibitors may go to 15 or more shows a year. A resort destination, like Tampa, was convenient for them and gave them a chance to relax, too.”
Compared with popular convention cities, especially in the northern part of the country, resorts can offer easier logistics and keep exhibitors’ costs down. Parking, Rosenberg points out, is usually plentiful and free at resorts. “In major convention cities, parking is often at least $15 a day,” he says. “For a typical crew of eight or ten, that can add up.” In addition, “At resorts, there are usually places to park 18-wheelers and other large equipment free near the exhibit space. You don’t have to worry about logistics, where to park, how to transport drivers.”
Distraction attrition Vacation destinations do have potential negatives, though. “Resort benefits outweigh any negatives,” says Rassa, “but there’s no doubt there will be some attrition at popular destinations. When we went to San Antonio, people tended to wander out to the River Walk.” Waldron says when HRPS met in Miami Beach she noticed a decline in attendance in the afternoon. “There’s just too much to do. They just have to step outside the hotel.” Even the highly focused engineers and architects who attend Metalcon “might show up a little late the second morning” when the group meets in Las Vegas every third year, concedes Kilcoyne.
There are ways to manage the pull of destination distractions during show times and still make sure attendees can enjoy the attractions. “That’s just Trade Show 101,” says McGillivray. “You have to manage where attendees go during the day. You have to make sure exhibitors are getting a return on their investment.”
One way is to limit attendees’ access to off-site temptations. Waldron, whose group needs about 100,000 square feet of exhibit and meeting space and about 500 rooms on peak, chose the Starr Pass Country Club and Spa in Tucson. “There were no distractions in the immediate area. It was a 15-minute ride downtown and, because it was an all-inclusive resort, most attendees didn’t have cars.”
“We get some of our best numbers when we go to Las Vegas,” says Kilcoyne, citing the entertainment appeal. But she acknowledges that the lure of the pool at the Mandalay Bay or the casinos on the Strip can be hard to resist. “There are so many distractions in Las Vegas. The attendees can get lost just going to the show.” To mitigate this effect, she uses the Las Vegas Hilton off the Strip and away from immediate distractions. Attendees only have to walk by one casino to get to the meeting space, she says.
Another way is to channel the attraction distraction. Waldron says she planned lots of activities, like nature walks and horseback riding, that took advantage of the beauty of the location, illustrated the theme of the meeting and promoted networking. “We gave them lots of opportunities to explore the destination together. They were so busy they didn’t want to leave the resort,” she says.
Rassa says Autotestcon channels the strong interest in park attractions by working with Disney to extend show rates to shoulder weekends before and after the show and provide discounted park tickets that are not good until late afternoon.
Pain management One of the objections to resort destinations in the past was that they didn’t offer competitive room rates and food-and-beverage prices compared with major convention cities. Given current conditions, that may no longer be the case.
Rapidly increasing room rates in all destinations are giving show managers headaches. A USA Today survey, published in November, showed that last year hotel rates in major convention cities, such as Chicago and New York, increased by double digits. In late 2006, the average room rate for New York was $304, unsustainable for many groups. This year’s forecast promises even more pain, according to American Express. Demand is expected to be even stronger, driving rates in New York to increase by as much as another 18 percent and other popular business cities won’t be far behind. A white paper by BCD Travel Consulting (www.bcdtravel.com) predicts that food-and-beverage costs for groups will increase by 8 percent in 2007.
In larger vacation destinations, such as Las Vegas or Orlando, managers can usually find the right combination of price points virtually any time they want them. “We just don’t have trouble getting the room blocks we want at resort destinations,” says Rosenberg.
Of the STMA show he says, “We’re getting rates at peak season, but we also have to work within a budget. The tipping point for our members is around $160, although ideally lower.” He was able to negotiate rates that fit the group at the Disney resort, he adds.
SEMA controls costs for attendees by spreading room choices over 24 Las Vegas hotels with a wide range of price points. “A lot of our attendees are from small to mid-sized businesses, and they just can’t afford expensive rooms,” says McGillivray.
There may be fewer vendors competing to provide F&B services at resort destinations, but the properties have become much more sophisticated about putting together meeting-friendly F&B packages, says Rosenberg. “They know things have to work for associations and costs have to be reasonable for exhibitors hosting client events.”
The hassle factor Just as Las Vegas and Orlando can offer plenty of price points, they present no problem when it comes to airlift and transportation, either. But for other smaller resort destinations, the hassle-factor of getting there looms larger and can sometimes eliminate the destination from consideration.
Waldron says she was braced for complaints about transportation when she scheduled the HRPS meeting in Tucson. “I did hesitate.” Attendees had to fly to Phoenix and change planes, rent a car or take a shuttle. “It turned out to be not a hindrance at all. No one even mentioned it.”
Rassa, though, isn’t a fan of second- and third-tier cities, even vacation destinations, if they don’t have adequate airlift. “We’ve tried smaller cities, but we’ll never go to them again. People just don’t want the extra hassle to get there,” says Rassa.
“Air lift can be a concern,” says Rosenberg. He cites one coastal vacation destination where he recently did a site inspection. “The people were great to work with. The prices were fine, but the attendees would have had to take three or four flights to get there. We decided it was just too hard. However, if attendees from the East and West Coasts can get to there with one or two flights, combined with everything else they have to offer, resort destinations are a great draw,” he says.
Patricia D. Sherman is a Dallas-based freelance writer specializing in the hospitality industry. She was Senior Editor of The Meeting Professional magazine, taught business and professional writing at several Midwestern universities and managed a b-to-b communications and advertising firm. Sidebar: Been there. Haven't done that. One problem for destinations, such as Las Vegas, Orlando, FL, and Anaheim, CA, is the chilling “done that” response from potential attendees.“ At least 65 percent of our attendees have been to a Disney resort before,” says Terry Brinkoetter, Worldwide Group and Convention Public Relations Director for Disney resorts. “We have to keep reinventing the experience to drive attendance. New is our lifeblood.” Here are some new services and products that mega-destinations have added recently:
Las Vegas Hilton and Harrah’s Entertainment have teamed to give show organizers a wider range of venues. Events can be booked at Harrah’s Entertainment’s six Las Vegas properties through Hilton National Sales. Planners who book through Hilton can consolidate their purchases for conventions in and out of Las Vegas, giving them greater leverage with multiple bookings.
Harrah’s has structured a plan that makes F&B negotiation faster. Rather than having to choose one property for an entire program, planners can divide their business among all six properties. F&B is managed with one contract, one F&B minimum and one master bill.
Orlando The Orlando CVB entered into a $50,000 sponsorship with the International Association of Exhibitions and Events to produce a new training video providing the latest tips for planners and exhibitors. A direct mail specialist has been added to help clients identify new target lists to enhance existing mailing lists and databases.
Disney properties have added the Magical Express, a continuous shuttle that allows guests attending meetings to check their bags at home and find them in their rooms when they arrive. “It’s totally free. The cost savings for show organizers is huge,” says Brinkoetter.
Anaheim This year, the Disney Institute offers professional development programs to the Disneyland Resort. The three-and-a-half day programs dedicated to specific subjects, such as service, leadership and loyalty, are open to individuals and groups up to 20 people.
Disneyland Resort has added two new suites for meeting VIPs, hospitality events, and incentive winners. The 1,800-square-foot Pirates of the Caribbean Suite opened last summer. The Mickey Mouse Penthouse opened last month. It offers stunning views of Disneyland and Disney’s California Adventure parks.
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