by Bruce Harris and Brad Weaber

Consider for a moment if you were selling your automobile. An ad for a "red 1992 sedan" is not likely to attract the same interest as one that describes the following vehicle: "candy apple red, low mileage, mint condition, state-of-the-art stereo system." Drawing the parallel, what are you doing to "sell" the total value of your meeting? Recently, an association meeting manager mentioned that she was aware of at least 600 additional room nights booked by an affiliated corporation in the days prior to her conference. But since she didn't handle the booking she did not feel she could take credit for the business.

Do You Know the 'Total Value' of Your Meeting?

1. Are you receiving full historical credit for all "in conjunction with" (ICW) activities5

2. Do you know how much hospitality revenue is being generated by exhibit activities?

3. Do you know the full value of your sponsored activities?

4. Does your post-convention analysis reflect all of the "outlet-generated revenue" from your group?

5. Does the hotel sales manager have a clear summary of all the value-added revenue generated by the meeting?

B.H., B.W.

If the "in conjunction with (ICW)" group is attending your conference, you have every right to attribute the value to your total package. Without your convention, they wouldn't be at that hotel!

Similarly, if an exhibitor is holding rooms outside the block, make sure you calculate their value (while, of course, trying to bring them in the block in future years).

Arrival/departure pattern is equally important. If your conference follows a Sunday Wednesday pattern but promotes ICW use on "pre-days" (Friday, Saturday) that are difficult for the hotel to sell, use these rooms to demonstrate added value. The total five-day room revenue looks a lot different when two of the days then fall over a weekend.

Savvy hotel salespeople will always ask: "What was your total food and beverage account last year?" "What is the expected hospitality usage by exhibitors with your organization?" It is critical that you discuss all food and beverage (F&B) functions with the hotel in the early stages of negotiation. Ironically, in some cases ICW revenue may actually exceed the total master account. (If F&B sponsors are billed directly, make certain you keep track of the total.)

Another area of revenue generation is restaurants, cocktail lounges and room service. Seek out the actual usage. Often the convention service manager can supply the information. While some hotels are reticent to divulge specific outlet revenue, they should be able to assist you with a "percentage increase of activity" based on past history. Advise the hotel sales manager before booking that you will require all ancillary outlets and "in conjunction with" revenue to be reported in the post-convention report. (This information will also help ensure appropriate staffing levels.) Another overlooked revenue source is reflected in the trend to grab a quick cup of coffee and a snack at a "cash on delivery" station on the way to a meeting. One meeting manager had the foresight to add "COD" stations several years ago and has monitored the ever-increasing revenue generated each year. He recently mentioned this in the early stages of a negotiation with a hotel that then had the foresight to expand the hours of operation to maximize the additional revenue.

The planner used this as negotiating leverage. The hotel increased its revenue. A win/win resulted because the planner understood the value of his business.

First published in: Convene Magazine, May 1995