Agenda Item 2a: The State of the Convention Industry Pre-COVID Presentation — original pdf

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THE STATE OF THE CONVENTION INDUSTRY PRE-COVID Heywood Sanders University of Texas at San Antonio February 16, 2022 IN THE HIGHLY COMPETITIVE CONVENTION MARKET PRE- PANDEMIC, DISCOUNTS, INCENTIVES, AND FREE RENT DEALS HAD BECOME THE NORM 4 CONVENTION SALES Visit Phoenix’s Convention Sales Department represents the two distinct meeting products in Greater Phoenix: (1) the downtown Phoenix market, anchored by the Phoenix Convention Center, and (2) the hotel and resort market. The department comprises two sales teams: The Citywide Sales Team books groups at the convention center, while the Hotel/Resort Sales Team books groups at area hotels and resorts. 14 bookings representing 64,000 delegates and 106,000 room nights. PROGRAM OF WORK RECAP Client Events The Visit Phoenix sales teams hosted, co-hosted or sponsored seven client events in fiscal year 2013-14, exposing more than 1,200 meeting professionals to the city’s meetings- and-convention product. PERFORMANCE SUMMARY Sales Promotions Citywide Sales In fiscal year 2013-14, the Citywide Sales Team booked 232,163 delegates, a 2.3 percent increase over last year’s performance. The sales team also produced 326 leads, which is 11 percent more than a year ago. These 326 prospective groups represent more than 1 million future delegates. Hotel/Resort Sales The Hotel/Resort Sales Team booked 330,797 definite room nights in fiscal year 2013-14, an 11 percent increase over the previous year. The sales team also produced 1,495 leads, representing 1.1 million future delegates. This lead production is a 4 percent increase over last year. Combined, Visit Phoenix’s sales teams booked 436,000 meeting and convention attendees who will consume 621,000 hotel room nights and spend an estimated $540 million. “See It to Believe It” This continuation of the Citywide Sales Team’s fly-in promotion gave potential clients the chance to tour the Phoenix Convention Center, area hotels and off-site venues. To date, this promotion netted 76 in-house meetings and 25 citywide conventions. “Freenix” This citywide booking promotion— created in conjunction with the Phoenix Convention Center and downtown hotel partners—offered complimentary convention center rental and free WiFi (at both hotels and the convention center) for clients with citywide conventions slated from 2015 to 2019. This promotion netted Event Experient E4 American Express INTERaction Infusion Nurses Society CEO Forum CESSE (Council of Engineering Scientific Societies Executives) Phoenix Convention Center/Citywide Buyers Education Trip AMC Institute Resort Buyers Education Trip Total Clients Hosted 173 800 120 24 80 17 12 1,226 Kayla Stidger MEETING SPACE Organization for Human Brain Mapping 5841 Cedar Lake Road Suite 204 Minneapolis, MN 55416 Based on what the Center is currently holding for the Organization for Human Brain Mapping, the PA Convention Center rack rental would be $204,851.000 in 2017 dollars with a 2% escalator through 2020. We have had the Dear Kayla: opportunity to review your past spending including food and beverage consumption, utilities and other Thank you for considering Philadelphia as a host city for the 2020 OHBM Annual Meeting! Below is our vision of how OHBM can best important variables such as room pick up and amend the rate. utilize the City of Philadelphia, the PA Convention Center and hotels to meet the objectives of the Annual Meeting. As you work your way through the offer, please jot down any questions you may have to ask. Based upon all these factors, we are pleased to offer a discounted rate of $129,851.50 in 2017 dollars with a 2% escalator through 2020 with a minimum net food and beverage spend of $300,000.00 (excluding taxes and gratuities), pending final approval of the PCCA and client site inspection. Through our partnership with the hotel community, we have arranged for a $10 rebate per consumed room night to further offset the discounted rate. Based on 80% pick-up, the OHBM can generate $42,528.00 in revenue (5,316 RN’s x .80 x $10) to further reduce the facility rental to $87,323.50 ($129,851.50 minus DATE: $42,528) in 2017 dollars with a 2% escalator through 2020 assuming a net food and beverage spend of $300,000.00. Exhibit Hall E (104,000 sq. ft.) 6/5-11, 2020 1st Option OPTIONS Thank you again for the opportunity to bid present this bid! I will follow-up with you within 48 hours to schedule a time to review and answer the questions you have about the offer. If you would like to connect sooner, please don’t hesitate Meeting Rooms/Breakouts (18 total meeting rooms): 120ABC – 126AB Reserved: Sun-Thu, 6/7-11, 2020 Load In: Fri – Sun, 6/5-6/7, 2020 Show Days: Mon-Thu, 6/8-11, 2020 Load Out: Thu, 6/11/2020 NEXT STEPS General Session: Terrace I - IV to reach out. My contact information is on Page 1. James Delmar, HMCC 215-636-3323 James@discoverphl.com Page 1 – option 2 Page 3  January 30, 2017 Ms. Kayla Stidger Director of Meetings and Events Organization for Human Brain Mapping 5841 Cedar Lake Road Suite 204 Minneapolis, MN 55416 Dear Ms. Stidger, Thank you for your interest in Austin and the Austin Convention Center, A LEED Gold certified existing building, for the Organization for Human Brain Mapping, OHBM 2020. We are so pleased to have the opportunity to work with you and welcome your guests to Austin! Please see the details below for space over June 25-30, 2020. Please note, while space is not being held at this time, a contract will secure the space. Exhibit Hall 4 (79,525 gsf) – Exhibits, Posters and Meals Move In: Show: Move Out: Thursday-Friday Saturday-Tuesday Tuesday June 25-26 June 27-30 June 30 Exhibit Hall 5* (41,555 gsf) – General Session January 30, 2017 June 25-26 June 27-30 June 30 June 25 June 26-30 June 30 Thursday Friday- Tuesday Tuesday Thursday-Friday Saturday-Tuesday Tuesday Move In: Show: Move Out: *Exhibit Hall 5 features retractable seating for 1500 and can accommodate up to 3200 total theater style Ballroom D*EFG and Meeting Rooms 11-19 – Educational Sessions, Workshops and Misc. Breakouts Move In: Show: Move Out: *Ballroom D and pre-function space suggested for Welcome Reception on Friday, June 26, 2020 Show Offices 12-16 – Office and Storage Show Offices12-16 are included Thursday-Tuesday June 25-30, 2020 Following various credits applied at the conclusion of the event, the estimated facility rental rate is $60,012.00. The discounted rate shown previously is based on a total collected rental of $$94,712.00. The total rental is then discounted based on a room night credit (RNC) applied to the master account at the conclusion of your event. The final RNC will be calculated based on an average of the previous three years’ (2017, 2018, 2019) room night pick up for the Ms. Kayla Stidger OHMB Annual Meeting. The room night credit is currently estimated at $4,700.00. This credit may not exceed total facility Director of Meetings and Events rental. Organization for Human Brain Mapping In addition, we will apply a 10% credit onto the master account at the conclusion of your event, based on OHMB hosted 5841 Cedar Lake Road net food and beverage expenditures with the in-house caterer; this credit does not apply to in-conjunction with or Suite 204 concession expenditure. For example, if $300,000.00 is spent, $30,000.00 will be deducted from the facility final invoice. Minneapolis, MN 55416 This credit may not exceed total facility rental. Pricing: $94,712.00 – $4,700.00 – $30,000.00 = $60,012.00 Dear Ms. Stidger, Thank you for your interest in Austin and the Austin Convention Center, A LEED Gold certified existing building, for the Organization for Human Brain Mapping, OHBM 2020. We are so pleased to have the opportunity to work with you and welcome your guests to Austin! Please see the details below for space over June 25-30, 2020. Please note, while space is not being held at this time, a contract will secure the space. 14 Exhibit Hall 4 (79,525 gsf) – Exhibits, Posters and Meals Move In: Show: Move Out: Thursday-Friday Saturday-Tuesday Tuesday June 25-26 June 27-30 June 30 Exhibit Hall 5* (41,555 gsf) – General Session Move In: Show: Move Out: Thursday-Friday Saturday-Tuesday Tuesday June 25-26 June 27-30 June 30 *Exhibit Hall 5 features retractable seating for 1500 and can accommodate up to 3200 total theater style Ballroom D*EFG and Meeting Rooms 11-19 – Educational Sessions, Workshops and Misc. Breakouts Move In: Show: Move Out: Thursday Friday- Tuesday Tuesday June 25 June 26-30 June 30 *Ballroom D and pre-function space suggested for Welcome Reception on Friday, June 26, 2020 Show Offices 12-16 – Office and Storage Show Offices12-16 are included Thursday-Tuesday June 25-30, 2020 Following various credits applied at the conclusion of the event, the estimated facility rental rate is $60,012.00. The discounted rate shown previously is based on a total collected rental of $$94,712.00. The total rental is then discounted based on a room night credit (RNC) applied to the master account at the conclusion of your event. The final RNC will be calculated based on an average of the previous three years’ (2017, 2018, 2019) room night pick up for the OHMB Annual Meeting. The room night credit is currently estimated at $4,700.00. This credit may not exceed total facility rental. In addition, we will apply a 10% credit onto the master account at the conclusion of your event, based on OHMB hosted net food and beverage expenditures with the in-house caterer; this credit does not apply to in-conjunction with or concession expenditure. For example, if $300,000.00 is spent, $30,000.00 will be deducted from the facility final invoice. This credit may not exceed total facility rental. Pricing: $94,712.00 – $4,700.00 – $30,000.00 = $60,012.00 14 Financial Proposal TOURISME MONTRÉAL PRIVATE & CONFIDENTIAL January 05, 2017 Ms. Anne Beauclaire Administrative & Meeting Coordinator Organization for Human Brain Mapping 5841 Cedar Lake Road, Suite 204 Minneapolis, MN 55416 Bonjour Ms. Beauclaire, Tourisme Montréal and its partners are delighted to present you with an offer to host the Organization for Human Brain Mapping. We are confirming in this letter the incentives that we are extending your 2020 Annual Conference OHBM. Dates Meeting space at the Montréal Convention Center and guestrooms in downtown hotels are currently reserved over the dates of June 23 to 30, 2020. Hotel Blocks Below is the anticipated guest room block for the 2020 Organization for Human Brain Mapping Annual Conference. Please refer to the attached summary chart (Schedule B) for hotel room block availability, rates and concessions. Day Date Block Total Tue 23 15 Wed 24 100 Thu 25 500 Sat 27 500 Sun 28 500 Mon 29 100 Fri 26 500 2215 $22,150.00 CA Hotels will contribute CAN$22,150.00 to offset the cost of the Palais des congrès de Montréal. $74,212.00 CA Tourisme Montréal will contribute CAN$74,212.00 to offset the cost of the Palais des congrès de Montréal. The reserved space at the convention center is detailed in Schedule A. Therefore, the space is offered on a complimentary basis as calculated below: Rental Minus: 50% discount offered by the center (with a minimum F&B of Can$350,000.00 and minimum AV of Can$80,000.00) Minus: fixed contribution by Tourisme Montréal Minus: Can$10 room rebate offered by the hotels Balance for you to pay The discounts will be applied as follows: Can$192,724.00 Can$96,362.00 Can$74,212.00 Estimated at Can$22,150.00 Can$0.00 $96,362.00 CA The convention center will apply the discount in the amount of Can$192,724.00, representing 50% of the full rental of the space outlined in Schedule A, directly at the billing stage. This discount is conditional to the achievement of a minimum F&B revenue of Can$350,000.00 and minimum AV revenue of Can$80,000.00 with the official suppliers of the center. $52,062.00 CA Tourisme Montréal will contribute Can$52,062.00. Payment will be made by Tourisme Montréal to the Organization for Human Brain Mapping to offset the cost of the Palais des congrès de Montréal $22,150.00 CA Tourisme Montréal will contribute Can$10.00 per room, per night occupied. Payment will be made pending review of the contracted hotel pick-up report(s) by Tourisme Montréal directly to the Brain Mapping. It is important to note the following: (cid:120) (cid:120) (cid:120) Should additional space be required, the Organization for Human Brain Mapping will be responsible for any incremental increase in rental costs. Tourisme Montréal’s contribution is capped at CAN$74,212.00. Should sleeping room pickup decrease, the Organization for Human Brain Mapping will be responsible for any rental that is not covered due to the rebate collection shortfall. (cid:120) Tourisme Montréal will sponsor a site inspection, including air fare, hotel accommodations for two (2) nights, airport transfers and a city tour for two (2) persons prior to the selection of the destination; (Value in kind of $4,000.00 CA, No cash value) Convention Center (Palais des congrès de Montréal) Should Montréal be selected, your organization will benefit from the following financial assistance and incentives: Organization for Human Brain Mapping. $96,362.00 CA Kindly note that the attached Palais des congrès de Montréal/Convention Center (Société du $22,150.00 CA Hotels will contribute Can$10.00 CA per room, per night occupied. Payment will be made pending review of the contracted hotel pick-up report(s) by the hotels directly to the Organization for Human Palais des congrès de Montréal) letter of offer dated December 29, 2016 will provide you with the complete details regarding proposed dates, proposed space, rental charges, rental charges rebate and the related conditions and any other discount(s), offered by the Société du Palais des congrès de Montréal and shall prevail at all time. Subject to the conditions mentioned below, the Palais des congrès de Montréal/Convention Center will offer a 50% rebate applicable on the total rental charges for the space outlined in the attached Room Reservation Plan dated October 25, 2016 This rebate, representing a savings of Can$96,362.00, therefore reduces your rental charges to Can$96,362.00 (before taxes). The conditions: taxes); and (cid:120) (cid:120) The audiovisual services revenue (using the Palais des congrès de Montréal/Convention Center official supplier) for your event will equal or exceed Can$80 000.00 (before taxes); and If applicable, customs brokerage and transportation services covering all your needs will be purchased from the Palais des congrès de Montréal/Convention Center’s official supplier. The food and beverage revenue (using the Palais des congrès de Montréal/Convention Center exclusive supplier) for your event will equal or exceed Can$350 000.00 (before gratuities and Additional incentives 8 Organiza tion for Human Brain Ma pping (OBHM) Annual Meeting – Montréal 2020 Financial Proposal TOURISME MONTRÉAL January 05, 2017 Ms. Anne Beauclaire Administrative & Meeting Coordinator Organization for Human Brain Mapping 5841 Cedar Lake Road, Suite 204 Minneapolis, MN 55416 Bonjour Ms. Beauclaire, Dates Hotel Blocks dates of June 23 to 30, 2020. Tourisme Montréal and its partners are delighted to present you with an offer to host the Organization for Human Brain Mapping. We are confirming in this letter the incentives that we are extending your 2020 Annual Conference OHBM. Meeting space at the Montréal Convention Center and guestrooms in downtown hotels are currently reserved over the Below is the anticipated guest room block for the 2020 Organization for Human Brain Mapping Annual Conference. Please refer to the attached summary chart (Schedule B) for hotel room block availability, rates and concessions. Day Date Block Total Tue 23 15 Wed 24 100 Thu 25 500 Sat 27 500 Sun 28 500 Mon 29 100 Fri 26 500 2215 PRIVATE & CONFIDENTIAL $22,150.00 CA $74,212.00 CA Hotels will contribute CAN$22,150.00 to offset the cost of the Palais des congrès de Montréal. Tourisme Montréal will contribute CAN$74,212.00 to offset the cost of the Palais des congrès de Montréal. The reserved space at the convention center is detailed in Schedule A. Therefore, the space is offered on a complimentary basis as calculated below: Rental Minus: 50% discount offered by the center (with a minimum F&B of Can$350,000.00 and minimum AV of Can$80,000.00) Minus: fixed contribution by Tourisme Montréal Minus: Can$10 room rebate offered by the hotels Balance for you to pay The discounts will be applied as follows: $96,362.00 CA Can$192,724.00 Can$96,362.00 Can$74,212.00 Estimated at Can$22,150.00 Can$0.00 The convention center will apply the discount in the amount of Can$192,724.00, representing 50% of the full rental of the space outlined in Schedule A, directly at the billing stage. This discount is conditional to the achievement of a minimum F&B revenue of Can$350,000.00 and minimum AV revenue of Can$80,000.00 with the official suppliers of the center. $52,062.00 CA Tourisme Montréal will contribute Can$52,062.00. Payment will be made by Tourisme Montréal to the Organization for Human Brain Mapping to offset the cost of the Palais des congrès de Montréal $22,150.00 CA Tourisme Montréal will contribute Can$10.00 per room, per night occupied. Payment will be made pending review of the contracted hotel pick-up report(s) by Tourisme Montréal directly to the Brain Mapping. It is important to note the following: (cid:120) (cid:120) (cid:120) Should additional space be required, the Organization for Human Brain Mapping will be responsible for any incremental increase in rental costs. Tourisme Montréal’s contribution is capped at CAN$74,212.00. Should sleeping room pickup decrease, the Organization for Human Brain Mapping will be responsible for any rental that is not covered due to the rebate collection shortfall. (cid:120) Tourisme Montréal will sponsor a site inspection, including air fare, hotel accommodations for two (2) nights, airport transfers and a city tour for two (2) persons prior to the selection of the destination; (Value in kind of $4,000.00 CA, No cash value) Convention Center (Palais des congrès de Montréal) Should Montréal be selected, your organization will benefit from the following financial assistance and incentives: Organization for Human Brain Mapping. $96,362.00 CA Kindly note that the attached Palais des congrès de Montréal/Convention Center (Société du $22,150.00 CA Hotels will contribute Can$10.00 CA per room, per night occupied. Payment will be made pending review of the contracted hotel pick-up report(s) by the hotels directly to the Organization for Human Palais des congrès de Montréal) letter of offer dated December 29, 2016 will provide you with the complete details regarding proposed dates, proposed space, rental charges, rental charges rebate and the related conditions and any other discount(s), offered by the Société du Palais des congrès de Montréal and shall prevail at all time. Subject to the conditions mentioned below, the Palais des congrès de Montréal/Convention Center will offer a 50% rebate applicable on the total rental charges for the space outlined in the attached Room Reservation Plan dated October 25, 2016 This rebate, representing a savings of Can$96,362.00, therefore reduces your rental charges to Can$96,362.00 (before taxes). The conditions: taxes); and (cid:120) (cid:120) The audiovisual services revenue (using the Palais des congrès de Montréal/Convention Center official supplier) for your event will equal or exceed Can$80 000.00 (before taxes); and If applicable, customs brokerage and transportation services covering all your needs will be purchased from the Palais des congrès de Montréal/Convention Center’s official supplier. The food and beverage revenue (using the Palais des congrès de Montréal/Convention Center exclusive supplier) for your event will equal or exceed Can$350 000.00 (before gratuities and Additional incentives 8 Organization for Human Brain Mapping (OBHM) Annual Meeting – Montréal 2020