Site selection is tremendously important to the success of an association meeting. Who better than hotels and destination marketing organizations to give us an overall view of the trends? We tapped into their collective wisdom to ask about the current state of association meetings — and to get some practical advice for planners who don't know what a destination will look like when they book meetings two, five, even 10 years out.

Participants

MICHAEL MASSARI
VICE PRESIDENT MEETING SALES & OPERATIONS
LAS VEGAS MEETINGS BY HARRAHS ENTERTAINMENT

GARY SAIN
PRESIDENT AND CEO
ORLANDO/ORANGE COUNTY CONVENTION AND VISITORS BUREAU INC.

TOM STOREY
PRESIDENT
FAIRMONT HOTELS & RESORTS

STEPHEN D. POWELL
SENIOR VICE PRESIDENT
WORLDWIDE SALES
INTERCONTINENTAL HOTELS GROUP

JACK HORNE
VICE PRESIDENT
HYATT HOTELS & RESORTS

CHRISTIE HICKS
SENIOR VICE PRESIDENT
GLOBAL SALES
STARWOOD HOTELS AND RESORTS

PAT MOSCARITOLO
PRESIDENT AND CEO
GREATER BOSTON CONVENTION & VISITORS BUREAU

AL HUTCHINSON
DIRECTOR, SALES AND MARKETING
VIRGINIA BEACH CONVENTION & VISITORS BUREAU

ASSOCIATION MEETINGS: What is the current state of association meetings? What should their focus be going forward?

MIKE MASSARI: I've been in Las Vegas 12 years and perception has always been an issue among meeting professionals. Sometimes it helps, sometimes it hurts. It's very different when you're told to attend a meeting as opposed to being asked to attend. The draw of the destination has always helped associations' annual meetings. I don't know if association meetings could be called healthy, but they've remained more stable than corporate meetings in this market. From a customer perspective, they are a reflection on how we all are spending our time and money. Employers say, “You belong to these four associations, so which of those four do I continue to support? Which event gives the best value and the best ROI?” Content, learning, and networking is what drives that attendance.

GARY SAIN: Meetings, conventions, and trade shows will continue to be vital revenue-generators for associations. However, the cost-costing measures taken in late 2008 and 2009 will continue for the foreseeable future. Increased competition among destinations and venues will offer greater choice and pricing options to the customer. The cost of doing business will increase for the destination or venue and the association will need to emphasize ancillary revenue opportunities to counter the cost-conscious attitude of attendees who want to pay less. Technology will not take the place of larger meetings; however, technology will be blended into the face-to-face encounter to extend the meeting's life well after the meeting ends. I think one of the more challenging topics will be how to attract the X and Y generations. How meetings are positioned to these specific demographics will be critical for association meetings in the future.

I actually believe association meetings will become more relevant and meaningful in the future, especially if association management can customize and personalize the face-to-face experience to make it more relevant to the end user. If association members feel a meeting will provide them with meaningful insight that they can't receive anywhere else, that will be the driver for them to attend. But, the meeting needs to be more personalized to the end user. Broad-based content will not be as motivating. Any opportunity to bring qualified buyers and sellers together will have high appeal.

TOM STOREY: Planners are more confident about taking a wait-and-see attitude because there is availability. They feel they can still look around and maybe get a better rate. But as demand comes back, lead times will lengthen because it won't be as easy to place a large meeting. Look at North America — there are not a lot of new hotels. Supply is relatively constrained, especially at the high end of the market. So demand doesn't have to come back too much to restrict choices.

Until we get to a certain demand level and a certain level of room-night volume, rates will stay low. In 2011, rates will increase because of two factors. First, an increase in corporate transient travel will reduce availability in hotels and, second, as meetings business picks up hotels will be more confident asking for higher rates.

Hotels will increasingly focus on the right mix of business — group versus transient — and which of these segments is most profitable. In 2009, hotels had to use rate to maintain appropriate volume levels. But with increased business coming from multiple segments, hotels will again begin to focus on the most profitable business.

STEVE POWELL: Association meetings have been in decline for the last three years even though 2007 was not recessionary. The declines are attributable to shorter stays and lower attendances. I believe that association education and industry programming need to be more relevant and nimble. Change is occurring at lightning speed, so for an association to be current and relevant, the challenge is formidable.

Association meetings/forums must be more than informing. The informing has to be constant through established association communication streams. The meeting must facilitate the discussion and actions that should be taken as a result of the information. This interaction should begin prior to the conference via current technology and continue through the meeting and into the post-meeting cycle.

JACK HORNE: Association meetings have remained relatively stable with new business results encouraging over the first four months of 2010. Long-term commitments continue to be delayed as associations are still concerned about attrition and cancellation fees due to lower attendance. There seems to be a movement toward smaller, more regional meetings with a relatively short booking window.

Associations need more than ever to be responsive to their members and meeting attendees. There is a need to be more creative, while making sure meetings are ROI-driven and measurable. Being green is now generally assumed, but for certain segments such as government and education business, it's a requirement.

CHRISTIE HICKS: During the economic downturn, there has been a greater focus on creating value, mitigating risk, and waiting longer to confirm bookings for future years. Smaller, more regional meetings seem to be on the increase as well as more meetings taking place outside North America. That said, there continues to be caution around long-term commitments and focus on a strong value proposition.

Planners and hotels, working together, need to find innovative solutions to the constant ebb and flow of the market. It's the only way we will solve the big swings once and for all. A solution that shares risk and shares upside can serve as a catalyst that results in stronger partnerships. Both parties need to be open to new ideas and willing to trust each other.

PAT MOSCARITOLO: Business is definitely getting better as we've seen some record-setting attendance for Boston meetings. But the booking window continues to be closer in than ever before and there's a continued focus on trimming costs and doing more with less as associations are under intense financial pressures. The upside of this is CVBs become even more valuable business partners as they know how to drive value across their destinations for planners. They function as an extension of the association's staff.

Across the board, businesses have cut expenses, which has allowed them to show in the short term positive financial results. Now they have to grow revenues and sales. Associations through their annual meetings, trade shows, and initiatives can help grow sales and revenues for members. So I see the meetings business bouncing back strongly over the next 12 months.

Next Page: Advice for Future Bookings