Exclusive Service Raises Exec's Ire

The touchy subject of exclusive services at convention centers has one again reared its head.

The San Diego Convention Center has implemented a new booth cleaning policy that Steven B. Johnson, vice president of public affairs for the San Diego Convention Center Corp., said was not exclusive. Nevertheless, it has provoked the ire of at least one show management firm.

SDCC customers have two options, Johnson said: "They can choose to serve as administrator of cleaning services and use our employees, or choose not to participate and we do it all with the client themselves."

With the first option, a show manager can hire a cleaning contractor who would have its company name on the order forms in the exhibitor kit and man the service desk, but use workers from the SDCC's staffing pool and pay the SDCC 50 percent of revenue. With the second option, the convention center would do the job in-house.

As a result, Ken McAvoy, senior vice president of Reed Exhibitions, is speaking out about exclusives.

"Our fear as show producers remains that exclusivities in services of any type cause injury to the exhibitors long term," McAvoy said.

Reed has no events at the SDCC, he added. "Our objective is to ensure the practice trying to be instituted in San Diego isn't spread to other centers."

McAvoy conceded he managed events at other facilities that have exclusive contracts, only because it's unavoidable. "But in the case of San Diego, people do have other choices," he said.

He added, "Stay out of our business model, and if you have to have more money, raise your rent."

Johnson said the change at the SDCC didn't have anything to do with revenue, but had "everything to do with security."

He gave a long list of assessment programs in which the SDCC has participated to improve its security, but when asked whether any of them specifically recommended the change to in-house cleaning staff, said, "We don't speak to the recommendations of security reviews."

The Intl. Assn. of Exhibitions and Events has an official stance against in-house exclusive contracts. Adopted in 1995, the policy reads: "IAEE believes that exhibition management and service providers should also be permitted to conduct their business in the marketplace unencumbered by all interference, to the fullest extent possible."

Randy Friedman, president of the North American Bridal Assn., said he was happy to see Reed take a stand. His organization produces, among others, two bridal tradeshows at the Sands Expo & Convention Center/Venetian Resort Hotel Casino in Las Vegas each year.

"I have two exclusives at the Sands, and neither one is worth what I pay," Friedman said. "I'd much rather deal with the companies that I know."

According to Friedman, McAvoy's clout would be put to better use by protesting where it matters.

"I would like to see Reed do that at the Sands, but their bark is worse than their bite," he said. "Let's see them threaten to pull JCK out," referring to Reed's jewelry tradeshow JCK Las Vegas, held annually at the Sands.

According to Tom Mobley, this is exactly the type of situation venue managers should avoid.

Mobley, senior vice president of convention centers for Global Spectrum, said exclusives are not inherently evil. "I'll argue on the side of exclusives and against them," Mobley said. "If it's enhancing business, it makes sense. If you're going to war with your clients and vendors, it doesn't make sense."

Like most centers, Global Spectrum's frequently have exclusive arrangements for food, telecommunications and security services, but not cleaning, he said.

Gregg Caren, senior vice president of strategic business development for facility management firm SMG, added that there are certain services that require such a large infrastructure investment that "you have to give a vendor the right to an exclusive. Without those investments, it would not be possible to provide the service."

Johnson said the SDCC make policy based "on what we believe is the most effective and efficient."

He said the change wouldn't affect show managers, adding, "This will affect the exhibitors."