Question:
We recently opened an IACC conference center inside of the Phoenix Convention Center. Marketing has been difficult because the market solely knows of the large convention center, not the smaller conference center inside, which gets lost in the huge convention center. Any ideas on how we could better market our facility?
Answer:
First of all, NEAT! Wish it had been open when I was last there. And yes, it’s a tough sell because you are first dealing with an ancillary center inside a convention center, and planners still can’t distinguish the two.
Some ideas:
- If the convention center has a customer advisory board, bring them in to experience the conference center and ask them what they think—how they would suggest distinguishing it from the convention center?
- Bring in sales and marketing staff and conference services managers from the surrounding hotels and let them see and experience it. Tell them it’s a great place for overflow space and/or for different meetings. (This may not work so well in this economy, but try or wait until things are better.)
- Get a few “evangelists” in the local and broader meeting planning community who can help tell others.
- If the conference center is not on Facebook and Twitter, do so and post cool stuff that I can repost or retweet.
- And talk with the folks at Arizona State University to see what their ideas are.
- Host MPI and SGMP chapter meetings there—they need to learn more. And invite me to do a learning session there during a CVB fam, so that everyone gets some idea of the advantages of the space.
Question:
How is the CMP taxed (hotel room tax vs. sales tax)?
Answer:
It is taxed differently in every jurisdiction. When you send out an RFP (any RFP) it should ask the tax rates and on what the taxes are applied. (And ask if there are any ballot initiatives to raise taxes in upcoming elections.)
Question:
Why would you use a conference center over a convention center?
Answer:
Convention centers are usually for larger (1,000-person-plus) meetings, often with trade shows. Convention centers are generally not intimate or for true learning meetings. Conference centers are for smaller, more intimate meetings. Although there are some conference centers (like the Q Center outside Chicago) that can hold more than 500 people, most conference centers are only for meetings up to 200. In fact, IACC’s universal criteria suggests up to 75. (I know that there are centers that can easily do more than 75.) Conference centers have tackable wall surfaces, hard surface writing tables, ergonomic chairs, continuous breaks and space held on a 24-hour hold at no additional cost. In fact, the meeting space is generally at no charge at a conference center. Most conference centers are residential, which means the guest rooms are right there. My strong recommendation is to go to www.iacconline.org and find a conference center in your area. Call them and tell them you want to see what a conference center is all about. I hope they’ll be interested in showing you around so you can experience the difference and begin to have a better and different understanding.
Question:
How does a conference center's prices compare to a hotel's price, and do you find there is a big difference in price between the CMP cost and the cost at a high-end (four-star) hotel?
Answer:
Remember to compare apples and apples, versus omelets and apples! That is, a conference center prices using the CMP (complete meeting package), which generally includes one’s guest room, three meals and continuous breaks daily, meeting space and technology (aka audiovisual), as well as a dedicated conference planner (CSM in hotel parlance.) Hotels price ala carte—that is, there are separate prices for the guest room, for each meal and for each break (which usually only is out for up to 30 minutes, and is not nearly as interesting or complete as a conference center break.) CMPs can vary depending on the specific center, time of year and other factors. Just remember to price-out all the pricing—and do a spread sheet for hotel prices with each component (room, food, audiovisual, meeting space, etc.) priced out and added up and compared to the CMP.
We negotiate additional concessions that are captured in cost savings metrics.
Question:
How would a planner best manage their guarantee number in a conference center. Will they be charged the full per-person charge if they have no-shows?
Answer:
Excellent question! Conference centers prefer that housing lists are used. Because pricing is based on the complete package or the day package (for guests who do not have sleeping rooms), it is necessary to provide guarantees. No-shows are always a problem, aren’t they? At a hotel, you’ll give a meal guarantee, say, or your contract will provide the number of guest rooms you have blocked and any “slippage” allowed–or not. At a conference center, it’s pretty similar, and yes, in many cases, there will be a charge for no-shows. As mentioned on the webinar, all things are negotiable–or most things are negotiable most of the time. Ask! Know your group just as you would with a hotel and give the best information you can in your RFP to any facility.
Question:
What is the best way to avoid “padding,” or facility over-pricing, when using CMPs and still getting the biggest bang for your buck? Is it appropriate to request a discount on the CMP?
Answer:
I think that one of the many beauties of using a conference center is that there is very little room for “padding” or over pricing. You know what you are getting when you negotiate. Of course a center may try to “up-sell” as would a hotel. Either may want to entice you to have a private dining experience or use the outdoor space. For some things there may be additional charges. This is where a smart and accurate RFP from the planner and smart negotiations come in. Know what you need and state it in the RFP. And yes, in some cases the CMP is negotiable like anything else.
Question:
Why do you think more hotels (chains, etc.) have not adopted a CMP pricing model, to simplify their pricing? Potential misperception or sticker shock?
Answer:
Hotels have in fact adopted some of the CMP pricing by doing what they call “executive meeting packages” that include some of the features of the CMP, like more items on breaks. I don’t think it’s because of sticker shock. I think it’s because conference centers in the U.S. have had, at most, 10 percent market share of meetings business. Planners are not familiar with the concept and may think that they are getting the better deal w/ negotiating item by item - you know: four gallons of coffee, two of tea, 40 bagels, etc. I think that hotels are not used to having the staffing or the way by which to do what a conference center does.
Question:
As a meeting planner, isn't it too much work/too difficult to contract with a non-residential conference center and then a separate hotel for rooms? Wouldn't you get a better rate at the hotel if you also book meeting space and related services?
Answer:
Good question! Non-residential conference centers are perfect for day meetings–and again, because they are and have more than most hotels, they may make sense. And for a day meeting, without guest rooms, there are likely not to be meeting room charges, just day meeting packages. More non-residential conference centers have relationships with nearby hotels. I used the example of the Summit Executive Center in Chicago, which uses the Fairmont, the Swissotel and others for housing. Like in any booking for a meeting, it’s knowing your objectives, audience, and what you need in a facility before sending out an RFP.
Question:
In terms of a "guest room" in the agreement, would this act similarly to a room block in a hotel with an attrition rate? Also, do all conference centers offer guest rooms as part of the agreement, and if so and they do not have one in their facility, would they work with a local hotel?
Answer:
See the response to the question about non-residential conference centers for the response on guest rooms in hotels. For the contract, each center may have different language and they will generally (as they should) have a provision for attrition based on the CMP and/or the number of guests (full-CMP or day guests.) All contracts should spell out all terms, and that includes how attrition will work and what the costs will be. This is, as it is with hotels, often negotiable. Just don’t let not knowing be a stumbling block to considering a conference center!
Question:
Regarding the CMP: How do conference centers handle guarantees for meals? Can numbers be adjusted more easily since they have food already and have others using it, too?
Answer:
You’d think so, about adjusting numbers more easily, wouldn’t you! Alas, conference centers are very smart about knowing the types of groups and what they are likely to eat. Even though the “conference-style” meals are buffet, there still is a desire to waste little and yet to ensure a good experience for all. Meal guarantees are generally based on the CMP or D(ay)MP and how many guests are in house. If you think that you might have some walk-ins, let the conference center know in the RFP and at the pre-con—everyone likes to be prepared and no one wants to waste food!
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