Strength in Numbers: Associations Band Together

In the face of a recession that seems like it is going to stick around for some time, associations have had to take stock on several levels and change the way they not only conduct their business, but also serve their members and put on their shows.

In this special focus, we take a look at what associations are doing to survive and thrive in this challenging economic environment.

Some have decided that banding together is the smart thing to do, and others are stepping up their efforts to prove their worth to their members. Lastly, associations that have shows are doing everything they can to make sure attendees and exhibitors have a successful experience. In other words, associations are far from standing still in the midst of tough times.

It’s no coincidence that in recent months associations in myriad industry sectors have been merging, partnering up and launching shows together.

In the middle of the economic downturn, many have found joining forces may provide value to their members, help strengthen fellow-minded associations and expand their own membership and ROI from meetings.

According to John H. Graham IV, president and CEO of the American Society of Assn. Executives & The Center for Assn. Leadership, in the current economic climate, associations with similar membership bases that have been looking to cut costs and increase their value proposition have found mergers a great way to weather the storm. They can attract an increased number of members who may be more committed and who normally wouldn’t attend meetings, he added.

“Associations serve their members and advance a profession or a cause and during today’s economic realities, (they) obviously want to continue their mission and act on behalf of their members,” Graham said. “Additionally, in most cases, mergers can lower expenses by eliminating redundancies.”

One industry in particular in which several associations have pursued and/or closed on mergers this year is the travel industry.

In January, the Travel Industry Assn. and the Travel Business Roundtable, which long were in discussions concerning ways they could strengthen the voice of the $470 billion travel industry in the United States, joined forces to create the U.S. Travel Assn.

According to Roger Dow, president and CEO of USTA, since forming, the association has become a growing force in Washington, D.C.

It launched a Meetings Mean Business initiative and has partnered with Meetings Professional Intl., the Intl. Assn. of Exhibitions and Events, the Professional Convention Management Assn., ASAE & The Center and the Convention Industry Council to promote the value of meetings, events and incentive travel.

In addition, in February, USTA formed the Destination & Travel Foundation as a result of a merger with the Destination Marketing Assn. Intl. to launch a five-year $4 million campaign to help DMOs streamline communication with government officials about travel and tourism. “It makes good sense for us to pool our resources to help destination marketing professionals and the industry as a whole …,” Dow said.

In May, two other travel industry associations fused together: the Air Line Pilots Assn. and the Natl. Pilots Assn.

According to ALPA, the NPA, a group made up of 1,700 AirTran Airways pilots, had been seeking representation by a strong international union, and ALPA, with its representation of 54,000 pilots, fit the bill.

Capt. John Prater, president of ALPA, said of the merger, “We look forward to working with the AirTran pilots and to providing the union’s unparalleled professional resources and expertise, as well as the support of other ALPA pilots … to help them achieve and enforce the fair contract they deserve.”

Though some groups have merged easily and with limited debate, the same cannot be said about the Natl. Business Travel Assn. and the Assn. of Corporate Travel Executives, two travel-related associations that have been in merger talks since last year.

According to Kevin Maguire, president and CEO of NBTA, which serves about 15,000 members worldwide, board members from ACTE, which serves more than 6,000 members, approached NBTA last year looking to merge because both serve similar members, and it has been expensive for suppliers and members to belong to multiple organizations.

“We met, we asked them what they wanted to do and basically let them put together a proposal,” Maguire said. “They took it back to their board, (which) turned it down.”

He added he didn’t understand the reasoning, but NBTA still was open to merging if ACTE wanted to “jump on board.”

In early August, ACTE re-approached NBTA in an effort to negotiate. ACTE requested a cobranding for two years, followed by the creation of a new name, the formation of a new interim board of ACTE and NBTA members and a new model, which balances philosophies from both groups.

“The marketplace wants and needs a combination of the best of both organizations, best practices and deliverables,” said ACTE President Richard Crum. “This will not be accomplished by the takeover of one association by another, but rather a true merging of ideas, philosophies and memberships all committed to creating a new organization.”

At press time, according to Caleb Tiller, senior director of marketing and communications for NBTA, his association received ACTE’s merger proposal and it was being “looked into.”

Another merger in the works may take place between the Intl. Assn. for the Leisure and Entertainment Industry and the Intl. Assn. of Amusement Parks and Attractions, pending a vote by IALEI members Aug. 15.

According to Sarah DiCello, communications and marketing manager for IALEI, in March, the board of directors for her association chose to pursue a merger with IAAPA because it’s a sister association with a larger staff, more funding and could provide more benefits for members. “We got hit really hard with the economy,” she said.

But, DiCello added, though IALEI’s board members are pleased to move forward toward a merger, IALEI’s staff will lose their jobs and are not as pleased. “We had a lot of things in the works that would have generated revenue, but we were stopped,” she said.

As of press time, with results of the merger up in the air, IAAPA president and CEO Charles Bray said IAAPA looks forward to the results from IALEI’s votes.

Other associations also have sought strength in numbers, not from merging, but by collocating their meetings with fellow associations or by lending support to one another.

The Package Machinery Manufacturer’s Institute, has scheduled its Pack Expo Las Vegas Oct. 5-7 at the Las Vegas Convention Center alongside the Reusable Packaging Assn.’s RPA Annual Meeting. The RPA will sponsor a reusable packaging track for the conference at the show.

Also collocating there are H.A. Bruno’s Converting and Package Printing Expo and the Food Processing Supplier’s Assn.’s Process Expo. And, just a shuttle bus ride down the road at the MGM Grand Hotel & Casino, the Assn. of Independent Corrugated Converters will hold its AICC Annual Meeting alongside the Intl. Bottled Water Assn.’s IBWA Annual Convention and Tabletop Trade Show.

According to Kate Achelpohl, PMMI’s director of communications, PMMI is facilitating collocated events to help members with their travel budgets.

“It’s essential that our attendees know they’ll get the best possible 'bang’ for their travel time, as well as their travel dollar,” she said. “With programming and show features that appeal to their specific areas of expertise, attendees will be able to make more out of the trip to Pack Expo Las Vegas, and that’s good for exhibitors and our industry.”

Also collocating is one edition of the Canadian Gift and Tableware Assn.’s semiannual CGTA Gift Show and the Canadian Toy Assn.’s Canadian Toy & Hobby Fair, Jan. 31- Feb. 2 at the Intl. Centre, Toronto.

According to Peter Moore, CGTA’s executive director, buyers have been facing economic challenges, exhibitors have been seeking a broader base of retailers and this collocation will help out both parties. “We are thrilled to have them with us,” he said.