Travel Costs May Lead to Big Headaches

Rising oil prices, and their potential impact on travel costs, have given more than one tradeshow manager cause for concern – but not necessarily all of them.

The Natl. Teaching Institute & Critical Care Exposition, held May 6-8 at Chicago's McCormick Place, for example, had a 35-percent increase in attendance to set an all-time record.

Randy Bauler, corporate relations and exhibits director for the American Assn. of Critical-care Nurses, which owns the show, attributed the increase to several factors, none having to do with the economy or energy costs.

The show was held in Chicago for the first time ever. Bauler, also 2008 chairman of the Intl. Assn. of Exhibitions and Events, said that was the No. 1 reason for the attendance jump.

“Because we had never been there before, there was a lot of demand to come to our show,” he added.

Gas prices didn't scare off locals. The show attracted regional drive-in traffic from throughout the Upper Midwest, Bauler said, and professional attendance jumped from about 6,800 in Atlanta in 2007 to 9,200 this year, Bauler said. Fly-in traffic from the East and West coasts also was strong, he added.

Bauler also attributed the strong attendance to the efforts of the Chicago Convention & Tourism Bureau to promote the show in the region. In addition, “our association did some additional promoting because it was our first time in the city,” he added.

However, if Bauler's glass is half full, there are plenty of show managers whose glasses are half empty.

A recent survey of Society of Independent Show Managers members found nine out of 10 are anxious about the impact of increased travel costs on their businesses. Of the 61 SISO members who responded to the survey, 39 percent said they are greatly concerned and 50 percent said they are moderately worried.

“The consequence is that we need to work harder than ever to sell tradeshows,” said Carl Pugh, chairman of SISO and president of Radius Events.

Surveyed show managers said they already have seen exhibitors pulling back from exhibition participation, companies sending fewer staff member to secondary events and 5- to 10-percent reductions in attendance.

Their exhibitor customers seem to agree. Nick Topitzes, president of Verona, Wis.-based pc/nametag, who exhibited at Hospitality Sales & Marketing Assn. Intl. Affordable Meetings West June 11-12 at the Long Beach (Calif.) Convention Center, said that, as airfares go up, shows will be under more pressure. He predicted that companies will send fewer staff members to work in their booths.

Topitzes added that rising costs and the economic slowdown also could prompt show managers to trim expenses where they can.

“It's no different than any other business,” Topitzes said. “You're going to try to keep profitability.”

He also said he thinks the biggest tradeshows will remain strong as attendees become more selective about their travel plans, cutting out secondary meetings and events, but keeping the large annual events on their calendars.

“It won't be the first time that we've gone through it, and it certainly won't be the last,” Topitzes added.

Pugh said he doesn't think tradeshows will be immune to the less-than-perfect economic climate, but he agreed with Topitzes' assessment that some shows will benefit as people condense their travel plans.

For show management, though, the concerns with rising fuel and travel costs are layered on, Pugh said. It's not only the cost of an airline ticket that's a concern, but also the cost of shipping freight and delivering equipment.

“Last year, a (plane) ticket from New York to Chicago cost me $208,” he added. “I just booked the same flight on the same days, and it cost me $604.”

Pugh said one way he is trying to alleviate concerns about travel is to point potential attendees in the direction of lower airfares. His company puts a banner advertisement on the shows' Web sites to promote Southwest Airlines, which has so far avoided steep hikes in ticket prices.

Pugh also suggested managers of regional shows use its proximity to participants as a selling point. Instead of a national event, “(attendees) might opt to go to a smaller regional event serving the same market,” he added.

Even with those alternatives, Pugh said, “While the cost may be greater (to travel to a show), if you're in a ... business, tradeshows are a critical function of success.”