INTRODUCTION TO THE AIPC INTERNATIONAL BENCHMARKING REPORT

Transcription

1 INTRODUCTION TO THE AIPC INTERNATIONAL BENCHMARKING REPORT July 4 th, 2017 Sydney

2 Outline Purpose and Background Structure and Content of the Reports Selected Results Next Steps Q + A

3 Purpose To assist AIPC members in the planning and operation of venues by: Sharing detailed event, P&L and operating data; Collecting these data over a multi-year period; Translating data into useful benchmarks and ratios; and Identifying differences by venue type and location While maintaining anonymity of data collected and shared. At no cost to participants.

4 The Benefits Include: Benchmark centre overall performance for board/ stakeholders Inform business decisions Identify regional/national/international trends in the industry Benchmark internal operations Highlight areas for centre improvement

5 The Plan Multi-year financial benchmarking report Two years of historical data Three years of future data Reporting out by: Geography Building Type, Size, Revenue, etc. Other Anonymity

6 Background (Timeline) Initial meeting of CFOs at AIPC Boston conference (July 2015) Member survey (Spring 2016) Survey results presentation at AIPC Nantes (July 2016) Data collection (Winter 2016/2017) Data analysis (Early 2017) Report distribution to participants April 2017

7 Background (Level of Interest) 2016 Member Survey: 82 Survey Respondents 80% expressed interest = seen as minimum threshold to proceed 52 venues participated

8 The Participants Venues on 6 continents and from 27 countries Very small congress/conference venues to very large convention/ trade show venues Public and private ownership Public and private management For profit versus community benefit Very old versus very new

9 Data Collection and Reporting Challenges Definitions Anonymity of data reported Timing of venue year ends (data availability) Metrics: Currency/Exchange Rates and m 2 vs feet 2 Venue specific (Categorization): o Geography o Size and purpose o Gross versus Net Revenue o Self operated versus outsourced departments Some compromise was required (except for anonymity)!

10 The Participants (Grouped for Reporting/Comparison) Large Convention/Exhibition Centres Congress Centres Unclassified Europe North America Europe Unclassified Aberdeen Boston (BCEC) Antwerp Abu Dhabi Amsterdam Boston (Hynes) Den Haag Adelaide Baku Hawaii Helsinki (Finlandia) Bali Barcelona (CCIB) Las Vegas Lausanne (SwissTech) Busan Belfast Los Angeles London (QE II) Cape Town Copenhagen Mexico City Luxembourg Cartagena Florence Montreal Montreux Durban Harrogate Ottawa Moscow (WTTC) Halifax Lisbon Quebec Prague Kuala Lumpur Liverpool San Diego Valencia Kyoto Manchester Toronto London (Canada) Nantes Washington Melbourne Pamplona Seoul San Sebastian Singapore (SingEx) Stockholm Sydney

11 The Reports Each participant receives a report with three sections: Methodology Customized section showing Venue A data compared with other venues in same grouping: Large convention/exhibition Centres in the Americas Large convention/exhibition centres in Europe Small/medium congress/conference centres in Europe Unclassified Summary report containing all remaining data

12 Key Focus Areas All Reports contain data on seven identical focus areas: 1. Space parameters 2. Costs per square foot/metre 3. Profitability 4. Event profile 5. Revenue and utilization 6. Food and beverage 7. Labour

13 Report Structure A B Geography: Americas Currency: US Dollars Building Type: Large Convention/Exhibition Centre Event Profile Space Measurement: Square Feet Comp Set Buildings (Sorted by Number of Events) Sample # Events Conventions/Congresses (with Exhibit) Conventions/Congresses (without Exhibit) Total Conventions/Congresses Trade Shows Consumer Shows Meetings Food and Beverage All Other Events Total 475 1, C D

14 Space Parameters Report Output Comp Set Buildings (Sorted by Exhibit Space) Sample Building Parameters (Square Metres) Total Building Size 190, ,000 28,000 26,000 Rentable Space for Events Total Exhibit Hall Space 62,000 53,000 16,000 14,000 Total Meeting Room Space 8,000 20,000 3,000 1,000 Ballroom Space 2,000 4, Meeting/Ballroom combined 10,000 24,000 3,000 1,000 Exhibit Area : Meeting/Ballroom Theatre (fixed seating theatre) - 1,512 8,750 - Meeting/Ballroom/Theatre (6 m2/seat) Combined 10,000 33,072 55,500 1,000 Exhibit Area : Meeting/Ballroom/Theatre Other Rentable Space (i.e., lobby space) 2,000 7,000 9,000 3,000 Total Rentable Space 75,000 85,000 28,000 21,000 Rentable as % of Total Building Size 39.5% 69.7% 100.0% 80.8% Largest Contiguous Exhibit Hall Space 26,000 14,000 8,000 3,000 Largest Contiguous Meeting Room/Plenary Space 26,000 14,000 4,000 1,000 Total Exhibit Hall Space 62,000 53,000 16,000 14,000 Number of Exhibit Halls (maximum breakout) Meeting/Ballroom combined 10,000 24,000 3,000 1,000 Number of Meeting Rooms (maximum breakout)

15 Rentable Space (m2) 220, , , , , ,000 Space Parameters Analysis Exhibit Space Meeting Room Space Ballroom Space Exhibit Space (m2) Total Rentable Space Exhibit/ Total Rentable Space Average 25,515 33, % Median 10,000 17, % 100,000 80,000 60,000 40,000 My Centre 35,000 55, % Rank 15 th 12 th 28 th 20,

16 Rentable Space (m2) Space Parameters Analysis 90,000 80,000 70,000 60,000 Exhibit Space Meeting Room Space Ballroom Space Geography Primary Operating Focus 50,000 40,000 30,000 20,000 10,000 - Average Median Average Median Average Median Average Median Average Median Average Median North America Australia/Asia/Africa Europe Conference/Congress Trade/Consumer Shows Both

17 Capital Expended per SF Report Output Comp Set Buildings (Sorted by Capital Expended per m2) Sample Rentable Space 7,500-15,000 >15,000 >15,000 >15,000 Annual Capital Expenses per m2 Rentable Space Base Building and Systems Technology Refresh/Refurbishment Interiors FF&E (excluding technology) Other Total capital expended per m2 Rentable Space Building Operating Expenses (per m2) Building Operations (excluding Energy/Uilities) Energy/Utilities Total Centre Operations Rentable Space per FTE 733 2, Payroll/Benefits per m

18 Allocation of Expended Capital Analysis FF&E 13% All Centres Other 7% Public Other 6% Ownership Private FF&E 4% Other 4% Refresh Interiors 10% Base Building 48% FF&E 15% Refresh Interiors 9% Base Building 48% Refresh Interiors 21% Base Building 37% Technology 22% Technology 22% Technology 34%

19 Allocation of Expended Capital Analysis North America Europe Australia/Asia/ Africa FF&E 10% Other 5% Refresh Interiors 3% FF&E 16% Other 8% FF&E 9% Other 6% Base Building 30% Refresh Interiors 11% Technology 20% Base Building 54% Technology 21% Base Building 52% Refresh Interiors 27% Technology 28%

20 Profitability Report Output Comp Set Buildings (Sorted by Profit Margin) Sample Venue Management (Public/Private) Private Public Private Private Total Revenue Range 10million-50million <10 million 10million-50million 10million-50million as % of Total Revenue EVENT-RELATED/VARIABLE OPERATING EXPENSES Cost of Goods sold related to F&B Revenue 6.0% 0.0% 0.0% 0.0% Other F&B costs related to F&B Revenue 2.0% 0.0% 0.0% 0.0% Costs related to Services Revenue 0.0% 12.0% 36.0% 12.0% Labour (Centre employees) 0.0% 0.0% 16.0% 7.0% Contracted Labour/Services 8.0% 0.0% 0.0% 9.0% Other event-related/variable expenses 12.0% 41.0% 7.0% 0.0% Total Event-Related/Variable Operating Expenses 27.0% 53.0% 58.0% 28.0% OVERHEAD/FIXED OPERATING EXPENSES General & Administration 0.0% 3.0% 8.0% 54.0% Sales & Advertising/Marketing 2.0% 1.0% 1.0% 12.0% Building Operations (excluding Energy/Uilities) 3.0% 13.0% 18.0% 6.0% Energy/Utilities 4.0% 7.0% 3.0% 6.0% Taxes, Licenses, Fees, Charges 5.0% 0.0% 3.0% 0.0% Other Operating Expenses* 39.0% 21.0% 8.0% 0.0% Total Overhead/Fixed Operating Expenses 53.0% 45.0% 41.0% 78.0% Total Variable and Fixed Operating Expenses 80.0% 98.0% 99.0% 106.0% NON-OPERATING EXPENSES Property Tax 0.0% 0.0% 1.0% 0.0% Debt Service 0.0% 0.0% 0.0% 0.0% Payment to Shareholders 0.0% 0.0% 0.0% 0.0% Other Non-Operating Expenses* 0.0% 0.0% 0.0% 0.0% Total Non-Operating Expenses 0.0% 0.0% 1.0% 0.0% Profit/Loss after Operating and Non Operating Expenses 20.0% 1.0% 0.0% -6.0% Profit/Loss as % of Gross Event Revenue 22.0% 1.0% 0.0% -7.0%

21 Profitability Analysis 100% 90% 80% 24% 9% 20% 22% 11% 22% 26% 5% 16% 70% 60% 50% 40% 30% 35% 15% 30% 44% 11% 37% 21% 21% 21% 58% > 15% 5% to 15% -5% to 5% <-5% 20% 10% 26% 41% 22% 30% 32% 0% Operating Profit as % of Total Revenue Profit/Loss as % of Total Revenue Operating Profit as % of Total Revenue Profit/Loss as % of Total Revenue Operating Profit as % of Total Revenue All Centres Private Operator Public Operator Profit/Loss as % of Total Revenue

22 Event Profile Report Output Comp Set Buildings (Sorted by Number of Events) Sample # Events Conventions/Congresses (with Exhibit) Conventions/Congresses (without Exhibit) Total Conventions/Congresses Trade Shows Consumer Shows Meetings Food and Beverage All Other Events Total 475 1, # Attendees Conventions/Congresses (with Exhibit) 200,000 43,299 42,865 99,322 Conventions/Congresses (without Exhibit) 30, ,030-11,710 Total Conventions/Congresses 230, ,329 42, ,032 Trade Shows 150,000 1,275,924 6,394 51,269 Consumer Shows 500, , , ,939 Meetings 100,000 36,446 41,963 94,095 Food and Beverage 50, ,425 37,615 27,672 All Other Events 55, ,637 Total 1,085,000 2,637, , ,644 Attendees Proportion Conventions/meetings 30.4% 6.9% 31.4% 25.8% Trade/Consumer 59.9% 69.2% 54.7% 67.3% F&B and Other 9.7% 23.9% 13.9% 6.8%

23 Attendees Event Profile Analysis 2,500,000 Total Attendees Total Convention Attendees 2,000,000 Note: Average calculated based on responding venues 1,500,000 1,000, % 500, % 21.4% 8.2% 18.1% 15.6% Average Median Average Median Average Median North America Australia/Asia/Africa Europe

24 Event Profile Report Output (Continued) Sample Comp Set Buildings (Sorted by Number of Events) Attendees/Event Conventions/Congresses (with Exhibit) 5, ,429 3,104 Conventions/Congresses (without Exhibit) 3, ,464 Total Conventions/Congresses 4, ,429 2,776 Trade Shows 7,500 31, ,899 Consumer Shows 16,667 1,278 8,844 18,575 Meetings 400 1, Food and Beverage 1,000 1, All Other Events Total 2,284 2, ,405 Conventions (with and w/o exhibits) by Attendees < , ,000-1, ,500-3, ,000-5, ,000-10, , Total % of 5, % 0.8% 3.3% 10.0%

25 Convention Attendees Convention Attendees <1,000 1,000-5,000 Convention Event Profile Analysis 5, % 2.1% 1.5% 90.0% 80.0% 14.7% 22.1% 20.0% 5,000+ 1,000-5, % 26.7% <1, % 100.0% 50.0% 40.0% 30.0% 20.0% 58.6% 75.8% 78.5% 90.0% 80.0% 70.0% 60.0% 50.0% 58.6% 10.0% 40.0% 0.0% North America Australia/Asia/Africa Europe 30.0% 26.7% 20.0% 10.0% 14.7%

26 Gross Revenue Report Output Comp Set Buildings (Gross Event Revenue) Sample Gross Event Revenue Range >50 million >50 million >50 million 10-50million Gross Revenue per Event by Event Type Conventions/Congresses 398, , , ,000 Trade Shows 2,005, ,000 2,198, ,000 Consumer Shows 1,719, , , ,000 Meetings - 4,000 18, ,000 Food and Beverage 138, ,000 All Other Events 16, , ,000 Total 235,000 60, , ,000 Gross Revenue by Revenue Category (%) Space Rental 35.0% 37.0% 44.0% 23.0% Food and Beverage 17.0% 24.0% 19.0% 45.0% ServicesOther 48.0% 39.0% 37.0% 32.0% Total 100.0% 100.0% 100.0% 100.0%

27 # Conventions Gross Revenue Analysis , , , , , , , ,000 Euros per Convention

28 # Conventions Gross Revenue Analysis ,000 40,000 60,000 80, , , , , , ,000 Euros per Convention

29 Utilization Report Output Comp Set Buildings (Gross Event Revenue) Sample Gross Event Revenue Range >50 million >50 million >50 million 10-50million Exhibit Hall Utilization Average Event Days Average Move In/Move Out Days Total Utilization 54.8% 63.8% 61.2% 46.4% Move In/Out as % of Total 25.0% 62.6% 54.7% 37.4% Ballroom Utilization Average Event Days Average Move In/Move Out Days Total Utilization 39.7% 69.2% 62.4% 53.9% Move In/Out as % of Total 13.8% 64.0% 58.0% 26.6% Theatre Utilization Average Event Days Average Move In/Move Out Days Total Utilization 31.5% 0.0% 27.9% 0.0% Move In/Out as % of Total 13.0% 0.0% 22.5% 0.0%

30 Utilization Utilization Analysis 100.0% 90.0% Exhibit Hall/Ballroom Utilization Average 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

31 Labour Report Output Comp Set Buildings (Sorted by Total FTEs Employed by Centre) Sample Labour FTEs (Employed by Centre) General & Administration Events Services/Event Management Sales & Advertising/Marketing Food & Beverage Building Operations Housekeeping Guest Services Security Other Total Payroll/Benefits/FTE (Employed by Centre) General & Administration 25,200 95,000 70,000 60, ,556 Events Services/Event Management 19,048 73,043 50,000 27, ,000 Sales & Advertising/Marketing 23,846 70,000 43,529 41, ,739 Food & Beverage , Building Operations 15,309 95,000 20,000 35, ,545 Housekeeping ,000 - Guest Services 6, Security - 80, Other 11, Total 16,480 77,500 41,591 36, ,462 Payroll (In-House and Contract) as % of Total Revenue 29.1% 23.7% 22.6% 20.8% 37.9%

32 Payroll as as % % of of Total Total Revenue Labour Analysis 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 13% 45% 3% 3% 13% 5% 6% 5% 6% 39% 10% 2% 2% 10% 6% 5% 10% 9% 8% 7% 54% 5% 5% 16% 5% 7% 11% 10% 45% 39% 54% All Centres Private Public All Centres Private Public General & Administration Other Events Services Building Sales & Ops/Security Marketing Food Food & Beverage & Beverage Sales Building & Marketing Ops/Security Events Other Services General & Administration

33 Next Steps Receive feedback on first set of reports (timing, content, benchmarks) Adjust input templates and reporting structure Expand participant sample Collect data for 2017 Report back at AIPC London, 2018

34 Questions???