Massachusetts Lodging Association Outlook 2016
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1 Massachusetts Lodging Association Outlook 2016 Milt Herbert Executive Director Boston Convention Marketing Center July 10, 2015
2 The Boston Convention Marketing Center is a joint effort of the Greater Boston Convention & Visitors Bureau and the Massachusetts Convention Center Authority to market and sell the Boston Convention & Exhibition Center and the John B. Hynes Veterans Memorial Convention Center
3 What We Do Win convention business for Boston at the BCEC and Hynes with a primary focus on room nights Maximize economic impact for the Commonwealth of Massachusetts Book business 18 months and more into the future, establishing a strong base of group hotel rooms for the future Focus on 1,000 rooms or more on peak and multiple hotels
4 What We Do Host client events to showcase Boston s convention centers and hotels Participate in industry events to create high visibility for Boston Conduct sales missions with industry partners in target markets Plan and orchestrate citywide site visits that highlight centers, hotels, offsite venues, and the city s diverse neighborhoods Conduct customer advisory group discussions to gain feedback on how Boston can be prepared to win more business
5 Type of Events Associations rotate to satisfy membership, so the competition is typically east coast-based only Tend to book long term (6+ years) to lock in desirable locations Tend not to cancel during economic downturns Trade shows tend to lock in a city when they find a desirable city/venue Tend to book relatively short term (3-5 years) Corporate events tend to evaluate locations based on price and availability Tend to book 3 years or less into the future Tend to cancel during economic downturns Public or Gate Shows typically lock in a regional / local destination By policy, we typically do not book such events inside of 18 months out because it does not fulfill the broader objectives that we have of generating room nights
6 Competitive Environment Primary Competition: Philadelphia, Baltimore, Washington DC, Atlanta, Nashville, Orlando, New Orleans, Miami, Indianapolis, Chicago, Denver, San Antonio, San Diego, San Francisco, Seattle, Toronto, large convention hotels that can host Hynes size events in-house Most important factors: space, rates, dates Guaranteeing the business: Boston is the only city in North America that requires a signed center agreement, deposit and hotel contract(s) to confirm a definite status. This is regardless of how far into the future the commitment.
7 A strategic plan Sales team members are deployed by territory primary responsibility is to manage accounts and relationships, identify business opportunities Vertical Markets (International, Tradeshows) Business Development Team- Identifies new business opportunities MCCA Short Term Sales- Capture opportunities inside of 18 months Hotel Relations- Work collaboratively with BCMC Sales Managers & Boston Hotels to assemble a citywide hotel package that meets the client s needs
8 LeadLink LeadLink is the BCMC s customized internet-based lead distribution application. This cloud based application was designed with input from our hotel partners to serve as a secure, user specific, two-way communication tool throughout the progression of an event. The benefits of LeadLink include: Improved communication with our hotel partners to ensure that the status of conventions are updated in a timely manner Disseminate leads with all of the event information to the applicable hotels including event history and convention pickup reports Ability to store response history and record contracted and actualized pickup Hotels are able to generate customized reports (building, dates, status, etc.) From close to 1,000 leads representing 8.7 million room nights were issued to the hotel community. Of those, 3.4 million room nights were converted to definite status.
9 Signature Boston Marketing Programs Advertising Collateral Databases Direct Mail E-marketing & Social Media Trade Shows & Events Website Connect
10 Signature Boston Suitcase Campaign Objective: Get prospects to Boston for a site visit! Close business Target Audiences: Qualified prospects w/strong potential for Boston Haven t been to Boston/have difficulty getting them to Boston Have preconceived notions of why Boston won t work for them Results ( ): 45 site visits, of which 20 converted to definite business some with multiple year bookings.
11 Fact Sheets Used in sales proposals with the hotel grid, on site visits, on the website Room Block Maps Customized for each customer Used in sales proposals with the hotel grid, on site visits Hotel Finder on Website Interactive Google-based map, sortable by number of rooms Signature Boston Blog News on hotel development, renovations, new hotel features, Connect Hotel Marketing
12 Past Performance Events at the BCEC & Hynes 6.1 Million Room Nights* *Includes short-term business
13 FY15 Sales Production FY 2015 Production BCEC Events 47 BCEC Room Nights 717,425 Hynes Events 45 Hynes Room Nights 199,822 BCEC & Hynes Events 92 BCEC & Hynes Room Nights 917,247
14 The MCCA has been known to say: The BCMC Sells the Dream MCCA Services the Nightmare
15
16 Definite Events and Room Nights Summary * YEAR BCEC & HYNES EVENTS BCEC & HYNES ROOM NIGHTS , , , , , , , , , , , , , , , , ,365 BCEC & Hynes Totals 364 4,630,838 *Short-term sales will add approximately 40,000 room nights per year
17 2016 Summary 75 Total Events; 580,520 Room Nights 33 BCEC with 365,001 Room Nights 42 Hynes with 215,519 Room Nights Compared to Total Events; 576,286 Room Nights 33 BCEC with 409,493 Room Nights 41 Hynes with 166,793 Room Nights
18 2016 Definite Events BCEC and Hynes Event Name Building Peak Rms Attend Total Rms American Library Association Mid Winter Meeting 2016 BCEC 5,500 13,000 23,445 Massachusetts Municipal Association 2016 Hynes 505 1, Mass Dental Society Yankee Dental Congress 2016 BCEC 5,080 27,060 16,932 23rd Conference on Retroviruses and Opportunistic Infections 2016 Hynes 3,600 4,300 15,279 Hewlett Packard Industry Analyst Conference 2016 BCEC ,615 Mizuno New England Pre-Qualifier 2016 BCEC 1,266 3,740 2,798 Society of Surgical Oncology 69th Annual Cancer Symposium 2016 Hynes 850 1,500 3,105 Diversified Business Communications Seafood Expo North America / Seafood Processing North America 2016 BCEC 4,500 18,000 15,075 Association of Energy Engineers Globalcon 2016 Hynes 300 2, New England Food Show 2016 BCEC 400 8,000 1,152 Society of American Gastrointestinal and Endoscopic Surgeons Postgraduate Course & Scientific Session 2016 Hynes 1,800 3,500 7,370 Association of Fundraising Professionals International Conference on Fundraising 2016 BCEC 1,900 4,100 8,417 National Society of Black Engineers Annual National Convention 2016 BCEC 2,437 10,000 8,992 New England Anime Society Anime Boston 2016 Hynes 1,033 24,000 2,792 Renaissance Society of America 2016 Hynes 725 1,000 2,527 American Society for Laser Medicine and Surgery Annual Conference 2016 Hynes 725 1,800 2,973 Endocrine Society Annual Meeting 2016 BCEC 4,100 9,400 18,190 Urban Expositions Boston Gift Show 2016 BCEC 205 5, Association to Advance Collegiate Schools of Business 2016 Hynes 950 1,200 3,110
19 2016 Definite Events BCEC and Hynes Event Name Building Peak Rms Attend National School Boards Association Annual National Convention 2016 BCEC 7,500 13,000 33,300 National Association for Law Placement Annual Education Conference 2016 Hynes 1,300 1,500 4,888 UBM Canon BIOMEDevice / Design & Manufacturing New England / Electronics New England 2016 Total Rms BCEC 350 6, Arthroscopy Association of North America Annual Meeting 2016 Hynes 800 1,000 2,975 Reed Exhibitions Penny Arcade Expo East 2016 BCEC 4,067 32,060 12,852 National Kidney Foundation Spring Clinic 2016 Hynes 1,700 2,500 6,579 INDA, Association of the Nonwoven Fabrics Industry IDEA Conference and Exhibition 2016 BCEC 3,200 8,000 12,768 Business Professionals of America 2016 Hynes 2,128 6,000 9,278 Massachusetts Teachers Association 2016 Hynes 600 1, NCTA Cable Show 2016 BCEC 4,700 17,500 17,437 American Association of Pharmaceutical Scientists National Biotechnology Conference 2016 Hynes 624 1,650 2,515 athenahealth User Conference 2016 BCEC 1,300 2,100 3,549 The ABR Company International Tug & Salvage Convention and Exhibition 2016 Hynes ,250 American College of Sports Medicine Annual Meeting 2016 Hynes 1,950 5,500 7,783 PTC Live Global 2016 BCEC 1,850 3,500 7,565 Metal Powder Industries Federation PowderMet Conference 2016 Hynes ,765 American Transplant Congress 2016 Hynes 3,093 6,000 14,793 ASM Microbe 2016 BCEC 8,000 20,000 31,100 AcademyHealth Annual Research Meeting 2016 Hynes 1,200 3,000 4,210
20 2016 Definite Events BCEC and Hynes Event Name Building Peak Rms Attend American Optometric Association Optometry's Meeting 2016 BCEC 2,102 8,000 7,824 Total Rms International Literacy Association Annual Convention 2016 Hynes 4,800 12,000 18,048 Academy of General Dentistry AGD Annual Meeting 2016 Hynes 1,200 3,000 4,632 IEEE Power & Energy Society General Meeting 2016 Hynes 850 3,000 4,246 CAbi, LLC, The Scoop, Fall 2016 BCEC 1,700 4,000 5,675 Farmers Insurance Championship 2016 Hynes 695 1,400 3,600 American Academy of Dermatology Summer Academy Meeting 2016 Hynes 1,200 3,500 4,536 Campus Technology 2016 Hynes 700 1,000 2,415 National Association of Chain Drug Stores, Inc Total Store EXPO 2016 BCEC 2,800 5,500 12,006 American Correctional Association Summer Congress 2016 Hynes 2,200 3,000 9,350 Petco Animal Supplies Stores, Inc. Petco Store Leadership Summit 2016 Hynes 1,260 2,000 5,220 Harley-Davidson Summer Dealer Meeting 2016 BCEC 2,867 6,000 11,552 American Orthotic and Prosthetic Association National Assembly 2016 Hynes 1,150 2,200 4,931 Hewlett Packard HP Global Partner Conference 2016 BCEC 3,050 3,500 11,915 RoboBusiness 2016 Hynes Abilities Expo Inc. Abilities Expo Boston 2016 BCEC 100 5, National Association Medical Staff Services 40th Annual Conference & Exhibition 2016 Hynes 850 1,500 3,655 Horizon House Publications Electronic Design Innovations Conference 2016 Hynes 800 2,500 2,500 JEC Composites JEC Americas 2016 BCEC
21 2016 Definite Events BCEC and Hynes Event Name Building Peak Rms Attend Total Rms American Society for Radiation Oncology Annual Meeting 2016 BCEC 8,100 13,000 41,877 International Quality & Productivity Center Cold Chain Global Forum 2016 Hynes Cardiometabolic Health Congress Meeting 2016 Hynes 500 1,500 1,773 National Electrical Contractors Association Annual Convention 2016 BCEC 1,800 5,000 7,794 Academy of Nutrition and Dietetics Food & Nutrition Conference & Expo 2016 BCEC 4,000 11,600 15,165 DRI The Voice of the Defense Bar Annual Meeting 2016 Hynes 951 1,200 3,125 Mortgage Bankers Association of America Annual Convention 2016 Hynes 2,000 3,500 6,925 North American Spine Society Annual Meeting 2016 BCEC 4,000 9,000 15,220 International Genetically Engineered Machine Foundation igem Summer Competition 2016 Hynes 500 3,000 2,410 HubSpot, Inc. Inbound 2016 BCEC 2,136 10,000 6,743 American Association for the Study of Liver Diseases The Liver Meeting Annual Meeting 2016 Hynes 4,000 9,000 18,366 Boston Society of Architects ArchitectureBoston Expo 2016 BCEC 200 7, Psychonomic Society Annual Conference 2016 Hynes 850 1,600 2,950 DISCO International, Inc. Boston Career Forum 2016 Hynes 850 4,000 3,472 American Council on the Teaching of Foreign Languages Annual Convention & World Languages & EXPO 2016 BCEC 2,800 7,000 9,450 Materials Research Society Fall Meeting 2016 Hynes 2,775 7,200 13,071 New England Grows 2016 BCEC 1,128 16,000 2,831 Pri-Med Annual Conference East 2016 Hynes 955 6,000 2,941
22 2016 Events When were they booked? Of the total 580,520 room nights booked at the BCEC & Hynes in 2016: -37% of the room nights were booked 6+ years ago; -25% of the room nights were booked within 4-5 years; -38% of the room nights were booked inside of 3 years Invest NOW to secure conventions for the future in Boston, ultimately providing the opportunity for occupancy, rate and REVPAR growth for your owner s children.
23 The Case For Expansion (BCEC) Lost Business is Substantial Issues are: - Lack of second ballroom - No dates Expansion Means: - Doubling of dates - Strategy is to layer business - Substantial increase in hotel group business Pause does not mean cancelled
24 The Case for a Second Headquarter Insufficient Hotel Supply in South Boston - Customer transportation costs - Customer time spent in transit - Huge disadvantage in inventory when compared to other cities Committable Rooms Within Walking Distance of the BCEC - 2,200 gross rooms = 1,400 committable group rooms - Where do the rooms come from: At 3,000 on peak night At 4,000 on peak night And larger Additional Hotel Inventory - Solves some of the problems - Frees-up additional dates at the Hynes
25
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