Conference Strategies In Trying Economies

Conference planning today requires a different approach than it did just a few years ago. The attendee's demographics, financial realities, competition, and alternative venues are all factors that directly impact conferences today. Another factor that has impacted conference planning is the priorities of the attendees. The widespread use of things such as Webinars, Web conferences, Skype, conference calls, expanded use of e-mail, texting, and social media have also had an impact.

Many organizations have gotten "nervous" planning their conferences because of the uncertainties in terms of predicting attendance and participation, fewer exhibitors, less sponsorship money available, etc. The cost/ benefit ratio, in some cases has become more skewed towards costs than benefits. These organizations have often delayed confirming arrangements, thus making the "lead time" before the conference shorter, which, of course, brings with it the ramification of making it more difficult to attract attendees.

Successful organizations have realized that for their conference to be successful that it must offer more "value" than its competitors. These organizations want to offer more to attendees while securing attractive venues, and they want to, and need to, get "more bang for the buck." A successful conference must today prepare and use creative, carefully constructed Requests for Proposals (RFPs) from the potential conference site, and must adequately address all potential issues and needs of the conference in this RFP. Some of the items that specific information and perhaps concessions might be needed include getting concessions in areas such as: room rate; internet access; parking fee waiver or reduction; complimentary meeting rooms; adjusted menus; attrition concessions; more complimentary items for conference such as complimentary rooms (perhaps 1 in 40 or better, which has become the norm), sponsored reception, etc.; major concessions regarding costs of Food and Beverage; etc.

While conference arrangers must realize that the best way to make arrangements for a conference is to get competitive bids (RFPs), hotels and/ or conference facilities need to also make a profit. A successful organizer will work with a facility to offer creative ways that the hotel, etc., can reduce its costs, while offering conference attendees a superb experience. Many costs associated with a conference are fixed, and thus, in general, the greater the attendance the lower the overall cost per attendee. Today's Facility Conference/ Convention managers must also realize that most organizations are working with lower budgets, and therefore both sides must readjust their mind sets, and work cooperatively to optimize the win-win aspect.

Creative and effective negotiation is possible with expert planning and attention to detail. The more that can be pre-negotiated the better, because those add-ons are often the "breaking point" in terms of financial feasibility for a conference. Although there is less money available, attendees expect as much or more than ever, and it is important to make cost reductions in areas that will not impact attendee expectations and experiences. Friendly, personal communication and warmth, and effective advance marketing maximize conference success.

Price And Cost Are Always Factors, But Not The Only Ones

Especially in challenging economic times, people seriously consider how much things cost and what the price is. When I was the Chief Operating Officer of a natural products manufacturer years ago, I remember that our price point was a serious consideration, in order to best position our products optimally in relation to others.
However, while pricing and costs are important factors, when it comes to conferences and conventions, a far more important factor is almost always perceived value.

In my three decades of hotel negotiations, event planning, and conference and convention planning and operations, I have witnessed repeatedly, situations where organizations over-emphasized only the price that participants would pay. In doing so, they often neglected creating a program and agenda that would attract attendees. Sometimes even more importantly, these organizations did not sufficiently emphasize the attendee's conference experience, and when that attendee went "back home," rather than being the organization's best ambassador, he reported a less than stellar experience.

The almost laughable, if it were not so incredibly short-sighted, part of this is that the amount of "cost savings" that these organizers implemented, had little impact on attracting significantly more attendance. However, at the same time, this reduction created financial risk for the organization and an inability to provide a superior attendee experience.

Organizers must recognize that a small price decrease in the fee for attending a conference often has little real impact on attendance. If it works at all, it only works in local events, where there are few expenses incurred by attendees besides the registration fee. However, many conferences require travel and hotel costs, and those costs often "dwarf" the registration fees.

In addition, if an organization is going to lower its registration fee, by how much will they reduce it? How much is a significant enough reduction to encourage additional attendance? What will be the overall impact on what conference organizers can do, when revenues are reduced?

I have heard numerous conference and convention organizers state that the reduced revenues will be offset by increased attendance. However, what these organizers often under-estimate is the true cost to the conference per attendee. If it takes more attendees to generate the same revenue, and registration fees are reduced by, for example ten percent, how much will attendance have to go up to offset the drop in revenue combined by the true cost per attendee? In many cases, a ten percent registration fee reduction will require close to a twenty percent increase in attendance and registrations.

Unfortunately, like many things done by many organizations, their conferences are often run by well-meaning individuals, who are, nevertheless, less than professional conference and convention coordinators. Organizations must analyze both the short term and longer term ramifications of addressing solely the registration fee issue, without, at the same time, analyzing the perceived value aspect. It is essential that organizers fully understand all aspects involved, including, especially, understanding their niche or target market.

NEGOTIATING WITH HOTELS

When one wants to arrange a meeting, conference or convention at a specific location, it is important to follow certain basic techniques:
(1) Utilize a professionally prepared RFP and submit to several properties, and let the properties know that they are competing.
(2) Make sure that you approach this negotiation from a "win-win" point of view. Know both your needs, and what the hotel's requirements are. Negotiate your entire package together-- i.e. Room rate, Food&Beverage,Meetings&Meeting Rooms;AV;Comps;Throw-ins, etc.
(3)Know the restrictions of your budget, and let the hotels know that there are financial limits.
(4)If you need something other than what they are showing, ask the property if they can accomodate you.
(5)Never lie to a hotel. Hotels know the history of your group, so if you aren't frank, you'll lose!
(6)Understand timing. When is your meeting? Are you at all flexible?
(7)Ask the hotel what they would recommend that would help both the property and you.

These are just a few of the very basic ABC's of Hotel Negotiations. If you want or need more information, or if you feel a Professional & Experienced Conference & Convention Planner might be helpful (most of the time a professional can save you time, money. and your sanity!), then go to my website at: www.rgbconsults.weebly.com, or e-mail me at rgbrody@aol.com.