Convention Centers

We are quickly approaching another International Convention Center Conference. I make every effort to attend this conference, more so than other meetings. With limited travel funds available these days, I think I get more out of this conference than any I attend. The entire conference is focused on topics that I deal with on a daily basis, and I look forward to the opportunity to renew friendships, to share ideas and learn from others and how they may have resolved a common problem.

The ICCC gives me an opportunity to step back from my daily routine of the limited view from my desk and see our world on a broader level for a few days. I not only think it is good professionally, but healthy as well, to come up for air, so to speak. I always come back to work physically and mentally refreshed, armed with the enthusiasm of being around people with whom I share this profession.

One of the benefits of attending ICCC is the ability to discuss with peers the trends and issues that are affecting our industry and find out how different organizations are dealing with these trends and finding solutions to the issues they create.

Some trends that I see as important to our industry are:

Economy: With the economy starting to show signs of recovery, will there be a corresponding growth in convention and trade show space sales? Will recovery occur across the nation or will it be limited to specific regions? Some regions do not expect full recovery until 2007.

Expansion: Several significant convention centers have come on-line within the last year as well as several major expansions. This has created yet more space in what some would say is an already saturated national supply. The addition of the Washington, D.C. and Boston convention centers have created more opportunity for show producers along the Atlantic Corridor, while significant expansions in San Francisco, Dallas and Orlando and continued growth in Las Vegas have added even more inventory.

Competition: A direct result of additional convention space is increased competition for existing business. Major expansions and new centers, combined with historically low hotel rates, have made it more attractive for price-sensitive businesses to consider larger and historically more expensive destinations. How are centers in smaller cities coping with the added pressure for that same business? And what are larger centers doing to fill the additional space they now have?

Convention Center / Convention & Visitors Bureau Relationships: Across the country the relationships between convention centers and CVBs are being examined. Depending on what city you are in, this relationship could be changing. In some cities the CVB’s effectiveness is being questioned. In other cities the question relates to the performance of the center. In some destinations, both organizations are being asked to justify their individual sales and marketing efforts. Should they be combined? Should they remain separate? Does the mission of a convention center differ from that of a CVB? Can one do the job of the other?

Privatization: The private sector continues to gain market share. Privately developed convention space has increased while municipalities are asking management companies to take over operations of their facilities.

Partnerships: How have partnerships changed within the last year? What dynamics that occur between the service contractors, show management, exhibitors and labor have changed the way you do business with them? Have “booth package” shows affected convention center revenue positively or negatively, or is there no change at all? How have you made it easier to do business with these partners?

Technology: What adjustments are you making as a result of technology? Does your center offer wireless service? What model works for you? Is it an open system, available to all? Is it a pay as you go, or is it available on an event basis? On-Line Booking: Prior to the Internet, customers never saw the convention center calendar. Now some calendars are available on the center’s website. Some centers allow customers to reserve space for themselves online. What are the advantages? What are the disadvantages?

Emergency Response: Are you and your staff prepared for an emergency? Have you recently reviewed and updated emergency response plans? Do you have a disaster recovery plan in place?

Outsourcing: With convention centers that have experienced budget cuts, are more services being outsourced? Is fulltime staff being replaced by contractual labor? Are services that have been provided in-house now being performed more frequently by contractors that specialize in a given service?

What other issues and trends are currently affecting the way you are doing business today? What do you see as potential problems and opportunities for the near future? These are but a few of the many issues that we deal with on a daily basis. The International Convention Center Conference is a great place to find solutions to many of the questions posed and to offer solutions to others. What better opportunity to find answers to these questions and to provide information to fellow managers than to attend the ICCC in Orlando? One last question: Are you registered?

David Bevans is the general manager of the San Jose (CA) Convention and Cultural Facilities. He can be contacted at david.bevans@sanjoseca.gov..