First-tier Destinations: Little Meeting, Big Value

By Gary Tufel -- Tradeshow Week, 1/29/2007

If you think SMERF events are only held in hotels and second-tier cities, think again. First-tier cities like Chicago are also actively engaged in the market.

And if you think the acronym stands for "social, military, educational, religious and fraternal" events, think yet again. You're partly right but, according to Bill Williams, vice president of diversity for the Chicago Convention & Tourism Bureau, there's another way to look at it. He said the "M" also stands for "minority," or the "E" could be replaced with a "U" for "union."

Williams should know. A part of the market for 32 years, he said he's known as the SMERF king. And with all due respect to Chicago's well-known mega-trade-shows, SMERF events — primarily small meetings that wouldn't use McCormick Place or Navy Pier — account for 35 percent of the bureau's business. Compare that to the 20 percent brought in by tradeshows, Williams said.

Although SMERF events occasionally graduate into McCormick Place, he noted, most are in hotels like the O'Hare Hilton, which holds a whopping 40 or 50 meetings a day.

"We strongly pursue this market," said Williams.

With good reason. He explained that SMERF attendees may sleep four to a hotel room to save money, but they are likely to dine out far more often than a single tradeshow attendee occupying a more expensive room. They're less likely to have cell phones or phone cards, so they use the hotel room's phone. And they're also more likely to have free time to tour the city and purchase souvenirs.

Chicago's not the only city that recognizes the value of SMERF events. Williams said Philadelphia and other big cities do too.

The market is based on availability of space, dates and rates, and currently it's a sellers' market.

"Hotels are doing well, so a meeting might not be able to get space in downtown Chicago," he said, "but this goes in two-year cycles. It'll be a buyers' market again. After 9/11, it was certainly a buyers' market."

All SMERF meeting planners are asking for is a little respect. And even though Chicago gives it to them, they really do have to ask, said Sandi Lynn, CEO of Sandi Lynn & Associates and former president of the Society of Government Meeting Planners.

Aside from the direct financial benefits, she said, SMERF events can be good for a city's image. For instance, the Natl. Black Public Relations Society brings a lot of exposure to its host cities, she added.

Lynn believes SMERF meeting planners need to educate first-tier CVBs about their value, because the CVBs usually assign their newest staffers to the SMERF market. That's often not the case with second-tier cities, which pursue the bread-and-butter SMERF business more aggressively.

By the same token, the event planners themselves can lack experience or formal training. Some only work for their organizations part-time or as volunteers and may require their own education in order to work with CVBs.

To answer this need, Williams conducts SMERF roundtables each June, enlisting experts to conduct workshops on dealing with CVBs, negotiating food and beverage contracts, and other management techniques. Lynn called it an "excellent opportunity" for professional education, especially for those who don't plan events full time.

When it comes to her own business, Lynn is a fan of the Windy City. "I organize meetings everywhere, but Chicago is my favorite," she said. Washington, D.C., is a close second, but it isn't as "conference-friendly" as Chicago, she added.

For Lynn, Chicago represents the "E" in SMERF — the educational element.

As an example, she pointed to her client, the Central State University alumni association, which drew about 300 attendees to the Hyatt Regency McCormick Place last July. The school, based in Wilberforce, Ohio, has alumni all over the country, and it likes to meet in areas where it has chapters. Lynn said it's a diverse group that includes recent grads, as well as much older ones.

"Chicago is the kind of city that can accommodate just about everybody's needs, and it's great to meet there," she said. "The CCTB is good. They supported the meeting and provided information on what was happening in the city, as well as discount coupons for shopping and entertainment." Attendees enjoyed the off-site activities, like visiting Navy Pier and cruising Lake Michigan on a tour ship.

Lynn did admit, however, that second-tier cities sometimes fit the SMERF bill better than their tier-one counterparts. Smaller cities generally have better dates and rates, and sometimes they fit more personal criteria. "A particular city may be the president's or chairman's hometown, for instance," she said.

Selecting a city is all about what the city has to offer, and how that fits with each specific group's needs.

But when it comes to attendees' preference, Lynn admitted, second-tier cities, with less to offer than metropolises like Chicago, often lose out. In addition to their cultural and recreational offerings, big cities also have a better infrastructure, such as ground transportation and CVB support, to offer SMERF events.

B. Cato Mayberry, Central State's director of alumni relations, said that was what drew his group to the city. Chicago's many activities held special interest for the alumni, the hotel was first-rate and the conference was well attended.

"Everyone had a great time, and the entertainment opportunities after conference hours were excellent. I give Chicago four stars," he said.

Mayberry said the group normally looks for affordability and social diversity in a city, and "Chicago worked fine for us." In 2005, the group met in Philadelphia, also a good experience, he added.

"We do feel undervalued by some cities at times," added Lynn, "but some so-called smaller meetings aren't even small — and they're valuable. I manage 10 regional sorority meetings a year for Alpha Kappa Alpha. Each one attracts 12,000 to 15,000 attendees and is held in a first-tier city."

Chicago, Atlanta, Los Angeles, New York and Las Vegas have all hosted Alpha Kappa Alpha meetings, which include exhibitions.

"You have to let providers know that you bring value to their cities," Lynn added.