Opportunity abounds in the event services industry, especially for those organizations that act quickly and courageously. With Tier One cities and destinations scrambling to recovery from historic cancellation rates, smaller (less expensive) markets have the opportunity to grab a piece of the pie, previously determined to be out of reach.
Let's cut to the chase.
In the last 90 days, Las Vegas, alone, has lost 340 meetings/events, approximately 112,000 visitors, 237,000 room nights, and nearly $131.6 MILLION dollars.
Their loss may be your gain.
For example, State Farm in February the cancellation of its annual conference in Las Vegas with more than 17,000 attendees for October 2009. The need for this conference has not diminished, but the capability to afford a full-blown Vegas conference is gone. However, with the help of one of the mighty hotel chains, State Farm could regionalize the conference and connect locations through HD video conferencing, allowing for the presentations to be given in real time. By exercising this approach, State Farm would then have the ability to reduce its actual spend on the conference, as the hotel chains are eager to negotiate great deals, greatly reduce transportation costs, and really help out local markets by spreading the conference dollars across markets that are struggling as much if not more than the Vegas giants.
The Automotive Market Research Council canceled its annual conference for March, citing cost-cutting measures as the reason for not meeting. However, the need to meet for AMRC is even greater in 2009 than in previous years. While the 2009 conference may be DOA, has anyone contacted them about the 2010 conference?
Perception is ruling the day. President Barack Obama announced in February that companies "can't go take a trip to Las Vegas....on the taxpayer's dime." In 2009 and 2010 conferences and conventions in Vegas are taboo. That means cities like Kansas City, Oklahoma City, Cleveland, Sacramento, Seattle, Buffalo and many other smaller "less desirable" locations are in play. But the real question is how to access a market, once considered to be untouchable.
We are advising, and working with our clients to attack the markets head on. For example, the city of Auburn Hills, MI, lead by the Detroit Metro CVB, should be leveling a full scale sales plan designed specifically for the AMRC, focusing on these two selling points:
1. Reduced cost
2. Support of local economy
Look, the economy is tough. I realize that. Its not going to get any easier, soon. In fact, for the Meeting & Events industry the conditions under which business has been conducted for the last 10 years, is all but gone. Our world is now more competitive, and requiring a greater degree of accountability. The price of success will come at the cost of greater tenacity in the acquisition of new business, and an unwavering commitment toward the retention of the existing client base.
Organizations that recognize deficiencies in their strategic and tactical support areas, and address those issues through consultants and industry experts from outside of the organizations, will realize immediate success and will gain valuable traction in an already weak market, positioning them ahead of their direct competitors. Organizations seeking home-grown solutions, will eventually correct deficiencies, but will have lost valuable time, resources and monies, as home-grown solutions and implementation typically cannot be fast-tracked on a short turn-around in the same way a consulting firm can. Furthermore, home-grown solutions fail to come with a money back guarantee or on-going support for the provided solution.
As I have been preaching for the last several months to my clients, staff, and now my blog followers, economically challenging times call for a reassesment of the way business is conducted. All organizations, without exception, must elminate wasteful spending and become aggressive in identifying new markets. This includes taking advantage of failing markets, including the Las Vegas CVA.
Eric Tompkins, Owner
Tompkins Event Consultants
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