While the formats of meetings and conventions are evolving constantly and rapidly, centres often have fewer options and less flexibility given that they are structural rather than conceptual entities.
Spatial configurations are challenging; but equally important things such as technology, services and business relations are evolving in ways important both for centres and their clients.
Technology is king. Nowhere have expectations changed faster.
Innovations like social networking can create expectations and agendas far in advance of an event, and sessions require ever-more sophisticated support, up to and including remote participation. The good news is that much of the new technology is wireless and user-driven, which means the main challenge for centres is often more related to capacity than hardware.
However, there is also bad news: new technology and capacity have to be paid for and, as expectations for free services grow, the ability to finance required additions becomes a huge challenge.
Technology requires constant monitoring and updating of both equipment and expertise, which raises questions like what to invest in and who should do the investing.
In-house versus outsourcing has become another part of the puzzle; should centres be making these investments themselves, or look to outside suppliers to both supply the expertise and take the risk?
Will larger events of the future be more likely to arrive with their own technology, and if so, how will this interface with in-house capabilities? Will areas like virtual or hybrid meetings eventually require dedicated spaces, complicating the configuration issue even further? All questions that centres will need to address.
Then there is the matter of more sophisticated food and beverage, a defining factor for many events and a big issue for both planners and delegates.
Again, centres have responded with creativity, to the point where one of the primary selling features for many centres is their cuisine, and how it reflects the local experience. Many centres now address their sustainability agenda through meal services. This is one area where there is a general willingness by clients to pay for what they get. As a result, it has become an important factor in maintaining revenues.
Many centres are now being called upon to deliver higher levels of event support not only because of increasing event complexity, but also because the client’s own resources may have been reduced as a result of corporate or association cutbacks and outsourcing.
Generally, centres have done what they can to accommodate such requests; but when it reaches a point where they need to beef up their own staff, it quickly becomes a matter of cost and a question of who will pay.
New conditions demand new relationships. A lot of the financial basis for the meetings industry was built on the willingness of governments to invest in facilities that would attract major events in return for economic impacts from delegate spending. The formula still works, but governments are increasingly incapable of making the major investments required to maintain costly facilities. The expectation that centres will continue to make major concessions in order to secure business becomes less realistic.
Centres are exploring new models for how risk and reward are shared, including rental concessions in return for participation in any upside that may result from increased attendance.
Similarly, strategies that reduce costs and increase certainty, like multi-year agreements or guaranteed service levels, can introduce new ways of ensuring everyone can benefit from a successful event. These innovations will be necessary for equitable distribution of costs and benefits needed to sustain the industry.
Good communication is the key to all these issues. Knowing what each party is facing, and being willing to pursue collective solutions has been a key to success in the past, and will be even more important as we evolve together into the future.
This was first published in the Issue 70 edition of CMW. Any comments? Email cmw@mashmedia.net
