Value of Meetings Touted by Industry

Compared with, for instance, the retail, finance and real estate sectors, things could be much worse right now for the tradeshow industry.

At the same time, it still may be too early to tell what the long-term impact will be on business travel and, in turn, tradeshows if the economy continues to struggle and travel prices maintain their steady upward climb.

In American Express Business Travel's recently released annual Global Business Travel Forecast and Trends report, Herve Sedky, vice president and general manager of AEBT Global Advisory Services, said any decreases in airfares in 2009 likely will be offset by new airline fees for things such as baggage, preferred seating and in-flight food and beverage service.

“In this difficult economic environment, successful T&E management strategies will be based upon the total cost of a business trip, which takes into consideration costs such as parking fees, airline fees, meals and other related expenses,” Sedky said.

According to Bruce Bommarito, COO and executive vice president of the Travel Industry Assn., travelers quickly are getting fed up with travel headaches and cost.

“Our research shows travelers are immensely frustrated with the air travel system,” Bommarito said. “In fact, Americans avoided 41 million trips in the past year because of their frustration with the overall air travel process.”

And, according to a TIA annual travel forecast report released Oct. 30, times could get even tougher: “The outlook for business travel is ... challenging, with a 3.7-percent decline in volume projected for 2008 and another 2.7-percent decline forecasted for 2009.”

The AEBT report's bottom-line advice to companies: Minimize expenditures related to business travel, which is not necessarily good news for show organizers, meeting planners and the hotels, convention centers and destinations that serve them.

Still, industry leaders said this is not the time to throw in the towel.

“This is a great opportunity for shows, especially in times of difficult and expensive travel, because shows are unique in the way they aggregate lots of buyers and sellers,” said Steven Hacker, president of the Intl. Assn. of Exhibition and Events. “You could go to one tradeshow and save maybe 30 (buying) trips. That's pretty valuable stuff.”

IAEE is so determined to keep the tradeshow industry's wheels turning, it launched a campaign called “Be There,” featuring a series of ads available for download that members can use to encourage people to come to shows.

“(The campaign) came about as a result of our recognition back in early summer that travel, because of higher fuel costs, would be curtailed,” Hacker said. In addition to the campaign, he added, the association also started periodically publishing a Travel Crisis Digest to keep people apprised of how to navigate the tricky waters.

Amy Ledoux, vice president of meetings and exhibitions for the American Society of Assn. Executives & The Center for Assn. Leadership, said most of its member associations have seen some slippage in attendance numbers, but it is not yet serious. “We haven't seen a big change yet,” Ledoux said. Instead of rolling out an advertising campaign or creating a task force to address travel issues as IAEE has, ASAE is taking a more subtle approach by simply encouraging its members to continue to go to meetings and offering them education geared toward dealing with a struggling economy.

“When there are challenges, a lot of people want to get together and plan for the future,” Ledoux said. “There should be education responding to the climate. Associations that don't do that will see a decline.”

Some destinations, such as Orlando and Las Vegas, have redoubled their efforts to promote their cities. Such is the case with Las Vegas, which has seen dips in convention attendance recently – a decrease of 22.3 percent in August, compared with the same month a year ago. However, the Las Vegas Convention & Visitors Authority isn't taking it sitting down.

Terry Jicinsky, LVCVA senior vice president of marketing, said, “In addition to our strategic advertising campaign, we have begun an aggressive sales campaign, committing to 1,000 sales calls on both the business and leisure sides of our staff. We are also continuing our attendance promotion campaigns for our tradeshow clients.”

As the economy has continued to slide, Jicinsky added, the LVCVA also has refocused its efforts “to get out in front of potential clients and make sure that Las Vegas stays top-of-mind as a destination for their meetings and conventions.”

Orlando, with the second most Tradeshow Week 200 shows after Las Vegas, also has experienced some declines and has had to come up with new ways to attract business.

Gary Sain, president and CEO of the Orlando/Orange County Convention & Visitors Bureau, said, “There is a real need to get people together when times are tough to create a positive environment, get them juiced up and create a rallying cry to make more sales.”

To encourage that environment, Sain added, the bureau launched a program this year called “Where Creative Minds Meet,” what he referred to as a “marketing opportunity to work with customers and help them grow.”

Both destinations have the added challenge of airlines substantially cutting back their flight schedules. Las Vegas has 15 percent fewer flights arriving and departing than it did at this time last year, and Orlando also has suffered route losses.

“This is an issue that has impacted destinations across the country,” Jicinsky said. “Las Vegas will continue to have nonstop service from approximately 130 markets, so we will continue to be easily accessible for business and leisure travelers.”

In Orlando, Sain said, the bureau “saw the writing on the wall” and formed a team called “Air Team Orlando,” with representatives from attractions, the hospitality community, government, business associations and the Orange County Convention Center.

“We mobilized people because we had to make sure the airlines understand we're more than just a leisure destination,” he added.