Space Rates Up Again

Tradeshow space rates are still on the rise, and even more shows are getting in on the action, according to Tradeshow Week's 2007 Annual Exposition Management Survey.

Sixty-two percent of show managers indicated that they raised their rates this year, a slightly higher number than the 59 percent who reported the same move last year. The median increase in space rates also was only slightly higher than last year's, 7 percent in 2007, compared with 6.9 percent in 2006.

Jeffrey Poole, director of membership programs for the Natl. Rifle Assn. of America and show manager of the NRA Annual Meetings & Exhibits, said the reason was supply and demand.

"We've had a waiting list to get into the show," Poole said, "and that will certainly impact your decision about raising rates."

The average show saw a revenue increase of 6.2 percent this year, certainly a healthy rate, but still almost one-third below the increase show managers reported last year, 9.9 percent.

The slightly lower revenue increase, coupled with steadily rising space rates, may be a sign the industry is finally moving into a post-Sept. 11 era, suggested Meg Ellacott, president of Ellacott Productions and manager of the Autism Society of America Natl. Conference & Exhibition.

"We started to get back on our feet, say in '04, '05, '06," Ellacott said. "As things started to get stronger and healthier, I think people ... decided to increase their rates as their shows grew strong again. But now things may be leveling out."

Since the terrorist attacks of Sept. 11, the tradeshow industry, along with other sectors of the economy, have lived through the threat of SARS (severe acute respiratory syndrome) and the reality of Hurricane Katrina. As a result, the short- and long-term impacts that epidemics, terrorist attacks and natural disasters can have on the tradeshow market prey on the minds of show managers in a way they haven't in the past. It seems show managers have learned an important lesson, as 57 percent this year said they have a plan in place to deal with disasters that may strike during their shows. Fifty-seven percent of those plans have only been implemented in the last four years.

Show managers saw international attendance grow, as the average percentage of foreign attendees at U.S. shows jumped from 10.4 percent in 2006 to 14 percent in 2007. The percentage of international exhibitors on U.S. showfloors remained largely the same, with 11.9 percent in 2006 and 12 percent in 2007.

Along with attracting more international visitors, show managers appear to be increasingly interested in going farther to accommodate them. This year, 40 percent of show managers expressed interest in organizing shows outside the United States and Canada in the next five years, up from 34 percent in 2006. Still, increasing international participation in the next five years by including more overseas pavilions in domestic shows was the favorite, with 48 percent of show managers saying they would like to do more of this at their shows.

Exhibitor satisfaction tied attendance promotion as the most important issue facing show managers today, with 67 percent of respondents indicating each as a pressing issue. Show location, just as last year, was considered to have the greatest influence in resolving these issues, particularly attendance.

"Our priority is moving the show around the country so that (a majority) of our members have an opportunity to come to the show," Poole said.

Managers were asked what they deemed to be the biggest threat to their success. Just as last year, industry consolidation topped the list, with 27 percent choosing it as the most serious threat.