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Meetings, conventions and exhibitions are evolving constantly and rapidly these days, driven by a host of factors ranging from changing attendance and financial patterns to the more sophisticated communications and technology demands of a new generation of delegates. But while a decision to change the format of an event is relatively easy, it is not as simple a matter for a convention centre that is, after all, a solid structure with only so much design flexibility. As far as finances are concerned, there is also a somewhat fixed model that needs to be addressed, given that some of the most basic assumptions around convention centre financing – the role of governments, for example– are now under a lot of stress due to the ongoing financial crisis enveloping the world.
Responding to different service and configuration expectations as well as adapting financial models have thus become major pre-occupations for both centre managers and those engaged in planning for the facilities of the future. In this two-part series we’ll look at some of the big issues facing centres today - and how this may affect their interactions will both suppliers and clients.
The first issue is about space –how are expectations changing, and what can be done to respond within the limitations of a largely fixed structure? Managers are responding in a number of ways, all of which are of importance to event planners looking at potential changes in their programs;
Flexibility is the Priority: Events used to have a largely predictable combination of space requirements, where even the proportions of different spaces were well established, and most centres were designed accordingly. Now, along with changing formats are coming spatial requirements that are testing the limits of how spaces with solid walls and particular combinations of finishes can respond. A major overhaul of spaces is simply not an option for many centres – and besides, there is little reason to think that these will not simply evolve again in the future.
For new design, the emphasis has shifted to flexibility; spaces that can serve a variety of purposes and that can be organized in a variety of ways without major dislocation. In fact, "multi-purpose spaces" have become one of the most important design factors in new centres on the assumption that we really have no idea what the needs of the future will be.
Designing for the Business: Centres are also having to become increasingly realistic about the kind of business opportunities they can expect, based on external factors such as transportation access and accommodation as well as the capabilities of the centre itself, since design can and should be directed toward the best opportunities rather than creating a more generalized configuration that will require endless and potentially costly adaptation. Another new and important trend along these lines can be seen in the growing priority for centre designs to offer a better ability to host multiple, simultaneous events rather than single larger ones. This is a logical reaction to the fact that the majority of events now in the market are of small to medium size and the ability to offer discreet and dedicated combinations of space to more than one event at a time not only expands the overall business opportunity but often offers greater efficiency in related areas such as accommodation, transportation and even the loading in and out process.
Working in the Envelope: For
existing centres, the job is tougher, but lots of strategies exist that enable centres to create more flexibility and more are being developed every day. Large spaces can be subdivided to accommodate demands for more breakout spaces, while informal areas can be redeveloped in what may have been public or prefunction spaces to accommodate growing interest in small group gatherings. Often it can be a matter of something as simple as replacing or even just re-arranging furniture, particularly when meetings are spontaneous and self-generated.
Given that setup and take-down of specialized configurations can be costly for both the centre and the client, some centres have been exploring more or less permanent changes in configuration, up to and including things like dedicated exhibition units that can be left in place to be used by exhibitors on an ongoing basis. On the other hand, in many cases finishes are being made less specialized so that the same area can serve many different functions and be differentiated through the use of lighting and floor treatments that can be more readily changed than distinctive finishes.
Space configuration is a big issue in an evolving industry – but it’s not all that’s changing. Next in this series: how the "softer" side, including technology, food and beverage and changing business relationships is requiring every bit as much attention as event space.
While the formats of meetings, conventions and exhibitions are evolving constantly and rapidly these days, centres often have fewer options and less flexibility given that they are structural rather than conceptual entities. Spatial configurations are one of the most obviously challenging areas – but what about equally important things like technology, services and business relations? These too are evolving in ways that are important for both centres and their clients;Technology is King: Nowhere have expectations changed faster than in the world of technology, where innovations like social networking can create expectations and agendas far in advance of an event and both sessions and presentations require ever-more sophisticated support up to and including remote participation. The good news is that much of the new technology is wireless and userdriven, which means that the main challenge for centres is often more related to capacity than hardware.
However, there is also some 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. This can create tensions that make it more difficult for centres and their clients to come to an understanding, particularly in times where finances are strained all around.
Another big technology question is based on the fact that as perhaps the most rapid area of change, it 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 vs. outsourcing has therefore 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? These are all questions that centres will need to address in order to be better prepared for eventualities.
F o o d a n d B e v e r a g e a Distinguishing Feature: One area that has evolved more than most is the matter of more sophisticated F&B – in fact, this has in many cases become a defining factor for many events and a big issue for both planners and delegates. Here again, centres have responded with innovation and creativity, to the point where one of the primary selling features many centres is their cuisine, and how it not only delivers quality but often reflects the local experience. One feature of particular note is how many centres now address their sustainability agenda through meal services, with local food products and sustainable preparation forming an important part of the product offering.
Unlike other areas, this seems to be one 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 reasonable revenues even when traditional revenues for space and services erode.
Support Service Expectations are Growing: Another area is increasing demand is that of overall event servicing, sometimes extending even to assistance with on-site coordination. Many centres are now being called upon to deliver these 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 everything 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 increases and the question of who will pay. Interim measures are something everyone tries to address – but when expectations become ongoing, it again challenges the whole financial equation.
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 an anticipated benefit in the form of economic impacts from delegate spending. The formula still works – but more and more governments are simply incapable of making the major investments required to build and maintain costly facilities. Furthermore, this can only be expected to get worse, at least for the foreseeable future, while global economic uncertainties remain. Under these conditions, the expectation that centres will continue to make major concessions in order to secure business becomes less realistic, and alternatives need to be considered.
Var ious centres are now exploring new models for how risk and reward are shared, including rent concessions in return for participation in any upside that may result from increased attendance. Similarly, strategies that reduce costs and increase certainty – like multiyear agreements or guarantees of particular service levels – can introduce new ways of ensuring everyone can benefit from a successful event. These will have to be the innovations of the future if there is to be the kind of equitable distribution of costs and benefits needed to sustain the industry.
Good communications is the key to all these issues – and should be a top priority for centres and clients alike. 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.
Responding to different service and configuration expectations as well as adapting financial models have thus become major pre-occupations for both centre managers and those engaged in planning for the facilities of the future. In this two-part series we’ll look at some of the big issues facing centres today - and how this may affect their interactions will both suppliers and clients.
The first issue is about space –how are expectations changing, and what can be done to respond within the limitations of a largely fixed structure? Managers are responding in a number of ways, all of which are of importance to event planners looking at potential changes in their programs;
Flexibility is the Priority: Events used to have a largely predictable combination of space requirements, where even the proportions of different spaces were well established, and most centres were designed accordingly. Now, along with changing formats are coming spatial requirements that are testing the limits of how spaces with solid walls and particular combinations of finishes can respond. A major overhaul of spaces is simply not an option for many centres – and besides, there is little reason to think that these will not simply evolve again in the future.
For new design, the emphasis has shifted to flexibility; spaces that can serve a variety of purposes and that can be organized in a variety of ways without major dislocation. In fact, "multi-purpose spaces" have become one of the most important design factors in new centres on the assumption that we really have no idea what the needs of the future will be.
Designing for the Business: Centres are also having to become increasingly realistic about the kind of business opportunities they can expect, based on external factors such as transportation access and accommodation as well as the capabilities of the centre itself, since design can and should be directed toward the best opportunities rather than creating a more generalized configuration that will require endless and potentially costly adaptation. Another new and important trend along these lines can be seen in the growing priority for centre designs to offer a better ability to host multiple, simultaneous events rather than single larger ones. This is a logical reaction to the fact that the majority of events now in the market are of small to medium size and the ability to offer discreet and dedicated combinations of space to more than one event at a time not only expands the overall business opportunity but often offers greater efficiency in related areas such as accommodation, transportation and even the loading in and out process.
Working in the Envelope: For
existing centres, the job is tougher, but lots of strategies exist that enable centres to create more flexibility and more are being developed every day. Large spaces can be subdivided to accommodate demands for more breakout spaces, while informal areas can be redeveloped in what may have been public or prefunction spaces to accommodate growing interest in small group gatherings. Often it can be a matter of something as simple as replacing or even just re-arranging furniture, particularly when meetings are spontaneous and self-generated.
Given that setup and take-down of specialized configurations can be costly for both the centre and the client, some centres have been exploring more or less permanent changes in configuration, up to and including things like dedicated exhibition units that can be left in place to be used by exhibitors on an ongoing basis. On the other hand, in many cases finishes are being made less specialized so that the same area can serve many different functions and be differentiated through the use of lighting and floor treatments that can be more readily changed than distinctive finishes.
Space configuration is a big issue in an evolving industry – but it’s not all that’s changing. Next in this series: how the "softer" side, including technology, food and beverage and changing business relationships is requiring every bit as much attention as event space.
While the formats of meetings, conventions and exhibitions are evolving constantly and rapidly these days, centres often have fewer options and less flexibility given that they are structural rather than conceptual entities. Spatial configurations are one of the most obviously challenging areas – but what about equally important things like technology, services and business relations? These too are evolving in ways that are important for both centres and their clients;Technology is King: Nowhere have expectations changed faster than in the world of technology, where innovations like social networking can create expectations and agendas far in advance of an event and both sessions and presentations require ever-more sophisticated support up to and including remote participation. The good news is that much of the new technology is wireless and userdriven, which means that the main challenge for centres is often more related to capacity than hardware.
However, there is also some 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. This can create tensions that make it more difficult for centres and their clients to come to an understanding, particularly in times where finances are strained all around.
Another big technology question is based on the fact that as perhaps the most rapid area of change, it 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 vs. outsourcing has therefore 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? These are all questions that centres will need to address in order to be better prepared for eventualities.
F o o d a n d B e v e r a g e a Distinguishing Feature: One area that has evolved more than most is the matter of more sophisticated F&B – in fact, this has in many cases become a defining factor for many events and a big issue for both planners and delegates. Here again, centres have responded with innovation and creativity, to the point where one of the primary selling features many centres is their cuisine, and how it not only delivers quality but often reflects the local experience. One feature of particular note is how many centres now address their sustainability agenda through meal services, with local food products and sustainable preparation forming an important part of the product offering.
Unlike other areas, this seems to be one 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 reasonable revenues even when traditional revenues for space and services erode.
Support Service Expectations are Growing: Another area is increasing demand is that of overall event servicing, sometimes extending even to assistance with on-site coordination. Many centres are now being called upon to deliver these 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 everything 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 increases and the question of who will pay. Interim measures are something everyone tries to address – but when expectations become ongoing, it again challenges the whole financial equation.
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 an anticipated benefit in the form of economic impacts from delegate spending. The formula still works – but more and more governments are simply incapable of making the major investments required to build and maintain costly facilities. Furthermore, this can only be expected to get worse, at least for the foreseeable future, while global economic uncertainties remain. Under these conditions, the expectation that centres will continue to make major concessions in order to secure business becomes less realistic, and alternatives need to be considered.
Var ious centres are now exploring new models for how risk and reward are shared, including rent concessions in return for participation in any upside that may result from increased attendance. Similarly, strategies that reduce costs and increase certainty – like multiyear agreements or guarantees of particular service levels – can introduce new ways of ensuring everyone can benefit from a successful event. These will have to be the innovations of the future if there is to be the kind of equitable distribution of costs and benefits needed to sustain the industry.
Good communications is the key to all these issues – and should be a top priority for centres and clients alike. 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.