Lower Tiers: Not All Is Doom and Gloom

If you’re a salesperson at a convention and visitors bureau in one of the country’s larger destinations, try as you may, it’s hard to put enough lipstick on this pig of an economy. With a few bright exceptions here and there, those shows and meetings that are not canceling or postponing are bringing fewer attendees than once anticipated. Groups looking to book dates in the future are bargaining hard – because they know they can.

However, move beyond the big city, and the view, if not perfect, becomes a bit more serene. Prospective customers looking for meeting or exhibit space and hotel rooms in smaller destinations still are bargaining hard, but the circumstances are somewhat different.

Tradeshow Week editors Michael Hart and Joalien Johnson talked to a handful of CVB executives in smaller cities to get some sense of that part of the competitive landscape.

This year, business in Hartford, Conn., looks promising, so far, with no cancellations attributed to the economic downturn, mainly because national organizations are interested in Hartford’s affordability, accessibility and the fact that there are 23.5 million people within a two-hour drive of the city.

According to Hartford Convention & Visitors Bureau President Scott Phelps, “Despite the economy, we’ve seen a slight uptick in inquiries. We’re up about 18 percent in terms of future room nights booked, fiscal year over fiscal year.”

Last year, news wasn’t as positive, largely because two big events that took place in 2007, the United Church of Christ Connecticut Conference and the Aircraft Owners & Pilots Assn. Expo went elsewhere last year (although the aircraft owners and pilots plan to return to Hartford in 2011).

Phelps acknowledged some past business drop-off was due to the sloping economy. “Many corporations, associations and organizations are being very cautious,” he added. “We’re seeing that in our pipeline for long-term business now.”

Fortunately for Hartford, the city doesn’t have to weather the tough times alone. In October 2007, the Hartford Convention & Visitors Bureau joined forces with the Greater Madison (Wis.) Convention & Visitors Bureau and the Spokane (Wash.) Regional Convention & Visitors Bureau to share expenses for advertising and special events.

The three cities have embarked on a roadshow to Washington, D.C., and, if all goes well, they could book groups looking for a regional rotation with all three cities. Phelps said Hartford is definitely benefiting from the “successful partnership,” as negotiations currently are being held with half a dozen groups.

Shows that continue to book Hartford on a regular basis include the Islamic Circle of North America-Museum American Society Convention and the Natl. Assn. for Campus Activities Natl. Convention. Also this year, the Natl. Model Railroad Assn. Natl. Convention will take place July 5-11 at the Connecticut Convention Center.

Bentonville, Ark., isn’t Las Vegas. Heck, it isn’t even Kansas City, Mo. – and that’s a good thing.

“The Open Bible Natl. Convention picked us over Kansas City,” said Blair Cromwell, vice president of sales for the Bentonville Convention & Visitors Bureau.

Cromwell said the group that brought just fewer than 500 people to Bentonville last year “was going to be a little fish in a big pond” in Kansas City.

“But in our town, they’re going to be the big fish,” she added.

Of course, what gives the fairly small city of Bentonville (population 30,000) more hotels than most its size is the fact that it is the world headquarters of Wal-Mart Stores. Those hotels are full all week long with vendors of various kinds making their pilgrimages to the mecca of the retail industry – leaving plenty of affordable rooms available on the weekends.

“We can give groups some really great deals Thursday through Sunday,” Cromwell said.

Cromwell recently hired two new salespeople, what would seem like an unheard-of gesture in this economy – and in a town without a single real convention center.

“We do have two hotels that consider themselves convention centers,” she said. “One has 27,000 square feet of meeting space; the other 2,000.”

Besides Wal-Mart’s shareholder meeting every May that takes up, not just all of Bentonville’s resources, but also all of northwest Arkansas’, an old standby for the CVB has been the Northwest Arkansas Model Train Show which, unfortunately, after six years of steady growth, must move to a new venue – and a new town – big enough to accommodate it now.

“It’s just heartbreaking,” Cromwell said.

Tradeshow and meeting activity was strong in Des Moines, Iowa, last year, with increased traffic from the presidential election’s Iowa caucuses, the lure of the Iowa Events Center, with 250,000 sq. ft. of exhibit space, and a downtown area that has three miles of skywalk connecting businesses, restaurants, hotels and the IEC, according to Des Moines Convention & Visitors Bureau President and CEO Greg Edwards.

This year, Edwards said, activity in the financial and insurance hub is expected to be “soft,” compared with 2008, especially on the corporate side, but, so far, very little business has been lost because of the economy.

“Our booking numbers are way up,” he added. “In fact, last year, booking-wise, was the best year that we’ve really had in our history of the CVB.”

Edwards said Des Moines’ relative affordability, central U.S. location, vibrant downtown and Iowa State Fairgrounds are the draw-in factors for shows that have made it their permanent home, such as the World Pork Expo, Iowa Power Farming Show, American Quilters Society Quilt Expo and the Des Moines Home & Garden Show.

“We’re holding our own,” he added. “Our convention numbers, sports numbers (and) other event numbers have been very good up to this point. We’ve seen, obviously, a drop in a lot of the corporate travel. The day-to-day business, transient business, is down, which obviously has a great effect on the overall picture of things, but, on the group and convention meetings side, it still remains fairly positive.”

The good news for Palm Springs is that it’s a two-hour drive from Los Angeles. That’s also the bad news.

Jim Dunn, executive director of the Palm Springs Convention Center, said his city and all the others strung along Southern California’s Coachella Valley are suffering declines in leisure travel. An overwhelming number of visitors from Los Angeles come each winter for a few days at a time, and those visitors are making fewer visits this year.

On the other hand, since most of the business groups that booked dates before the economy slammed the door shut on many travel plans also are just that same short drive away, things, Dunn said, could be worse.

“We experienced one cancellation, a corporate banquet,” he said, “but we’ve not had any others.”

Some of the biggest shows and meetings that call Palm Springs their annual home have seen no change of plans. That includes the Computer Using Educators, which brought 4,000 attendees to town March 5-7; the Environmental Systems Research Institute, 1,500 attendees, March 21-26; and the California Mathematics Council, 4,500 attendees, Nov. 6-8.

“Groups are telling us they’re hitting their numbers,” Dunn said, “and the ones who are marketing early and stronger are doing better.”