Readers Speak: Must Space Rates Go Up?
Gary Tufel -- Tradeshow Week, 3/13/2006
The latest Tradeshow Week space rate survey showed modest increases across the industry. Although it's not a given that space rates will increase at every show every year, most exhibitors aren't usually surprised when they do. Contributing Editor Gary Tufel asked a few show managers what factors go into the decision to raise rates, and then how they break the news to their exhibitors.
"As an association-run show, we typically adjust our exhibit space rates for our member exhibitors only every two or three years by $1 or $2 per net square foot. That works out to about a 2- to 3-percent average increase per year.
"We don't have a scientific formula we use to calculate our rate increases. We compare our rates to other competing shows, we monitor the growth in attendance of our show, we look at our overall show expenses, we try to cover inflation and put more funding into attendance promotion.
"The bottom line for us is to treat our exhibitors fairly with a competitive exhibit space rate to insure their ROI from our event and to earn their participation every year."
Jason McGraw, Senior vice president, expositions, InfoComm Intl.
"There's no great scientific formula. We pick the highest number we think people will pay. Our decisions are made at the previous show, or about a year to six months ahead.
"Typically, we don't announce rate increases. We just put them in the contract and hope no one notices."
David Audrain, President, Messe Frankfurt USA
"First, I think pet industry shows raised prices just to keep pace with the increase in overall show management expenses, about 5 to 8 percent. Everything's gone up, probably due in part to increased fuel costs across the board.
"Second, the old supply-and-demand rule applies since booth space is at such a premium. Many shows are already maxing out the available convention center space, so space rates are higher. The demand for space in our fall show increased by 15 percent in 2005. We wound up with a waiting list."
Colette Fairchild, Tradeshow director, H.H. Backer Associates
"The rates go up every January, and we use that as a way to encourage early signups for our February and March shows."
Eric Udler, President, Chandler Venture Group
"Our rates are in line with what the marketplace rates are. As a professional association, we take that into account when considering rate increases."
Sarah Patt-Pronek, Expo director, ARMA Intl.
