INTRODUCTION TO THE AIPC INTERNATIONAL BENCHMARKING REPORT July 4 th, 2017 Sydney
Outline Purpose and Background Structure and Content of the Reports Selected Results Next Steps Q + A
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.
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
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
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
Background (Level of Interest) 2016 Member Survey: 82 Survey Respondents 80% expressed interest = 64 11 20 seen as minimum threshold to proceed 52 venues participated
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
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)!
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
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
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
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 1 2 3 4 5 6 # Events Conventions/Congresses (with Exhibit) 40 71 30 32 24 26 61 Conventions/Congresses (without Exhibit) 10 167-8 5 15 10 Total Conventions/Congresses 50 238 30 40 29 41 71 Trade Shows 20 40 8 27 19 11 6 Consumer Shows 30 431 16 26 43 30 7 Meetings 250 29 243 172 83 88 51 Food and Beverage 50 531 140 38-14 5 All Other Events 75 4-27 125 50 18 Total 475 1,273 437 330 299 234 158 C D
Space Parameters Report Output Comp Set Buildings (Sorted by Exhibit Space) Sample 1 2 3 Building Parameters (Square Metres) Total Building Size 190,000 122,000 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 4,000 - - Meeting/Ballroom combined 10,000 24,000 3,000 1,000 Exhibit Area : Meeting/Ballroom 6.2 2.2 5.3 14.0 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 6.2 1.6 0.3 14.0 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) 16 6 10 8 Meeting/Ballroom combined 10,000 24,000 3,000 1,000 Number of Meeting Rooms (maximum breakout) 76 95 51 11
Rentable Space (m2) 220,000 200,000 180,000 160,000 140,000 120,000 Space Parameters Analysis Exhibit Space Meeting Room Space Ballroom Space Exhibit Space (m2) Total Rentable Space Exhibit/ Total Rentable Space Average 25,515 33,766 57.4% Median 10,000 17,242 64.4% 100,000 80,000 60,000 40,000 My Centre 35,000 55,000 63.6% Rank 15 th 12 th 28 th 20,000-1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334353637383940414243444546474849505152
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
Capital Expended per SF Report Output Comp Set Buildings (Sorted by Capital Expended per m2) Sample 1 2 3 Rentable Space 7,500-15,000 >15,000 >15,000 >15,000 Annual Capital Expenses per m2 Rentable Space Base Building and Systems 40.0 18.0 12.0 1.0 Technology 15.0 15.0 4.0 3.0 Refresh/Refurbishment Interiors 2.0-8.0 - FF&E (excluding technology) - 18.0-2.0 Other - - - - Total capital expended per m2 Rentable Space 57.0 51.0 25.0 5.0 Building Operating Expenses (per m2) Building Operations (excluding Energy/Uilities) 759.0 68.0 144.0 9.0 Energy/Utilities 18.0 25.0 106.0 26.0 Total Centre Operations Rentable Space per FTE 733 2,200 161 778 Payroll/Benefits per m2 111.0 14.00 84.00 118.00
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%
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%
Profitability Report Output Comp Set Buildings (Sorted by Profit Margin) Sample 1 2 3 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%
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
Event Profile Report Output Comp Set Buildings (Sorted by Number of Events) Sample 1 2 3 # Events Conventions/Congresses (with Exhibit) 40 71 30 32 Conventions/Congresses (without Exhibit) 10 167-8 Total Conventions/Congresses 50 238 30 40 Trade Shows 20 40 8 27 Consumer Shows 30 431 16 26 Meetings 250 29 243 172 Food and Beverage 50 531 140 38 All Other Events 75 4-27 Total 475 1,273 437 330 # Attendees Conventions/Congresses (with Exhibit) 200,000 43,299 42,865 99,322 Conventions/Congresses (without Exhibit) 30,000 101,030-11,710 Total Conventions/Congresses 230,000 144,329 42,865 111,032 Trade Shows 150,000 1,275,924 6,394 51,269 Consumer Shows 500,000 550,680 141,500 482,939 Meetings 100,000 36,446 41,963 94,095 Food and Beverage 50,000 630,425 37,615 27,672 All Other Events 55,000 - - 26,637 Total 1,085,000 2,637,804 270,337 793,644 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%
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 1,000,000 29.8% 500,000-28.3% 21.4% 8.2% 18.1% 15.6% Average Median Average Median Average Median North America Australia/Asia/Africa Europe
Event Profile Report Output (Continued) Sample Comp Set Buildings (Sorted by Number of Events) 1 2 3 Attendees/Event Conventions/Congresses (with Exhibit) 5,000 610 1,429 3,104 Conventions/Congresses (without Exhibit) 3,000 605-1,464 Total Conventions/Congresses 4,600 606 1,429 2,776 Trade Shows 7,500 31,898 799 1,899 Consumer Shows 16,667 1,278 8,844 18,575 Meetings 400 1,257 173 547 Food and Beverage 1,000 1,187 269 728 All Other Events 733 - - 987 Total 2,284 2,072 619 2,405 Conventions (with and w/o exhibits) by Attendees <200-194 - - 200-500 5 26 11 3 500-1,000 10 12 10 7 1,000-1,500 5-4 8 1,500-3,000 10 2 4 10 3,000-5,000 5 2-8 5,000-10,000 10 1-1 10,000+ 5 1 1 3 Total 50 238 30 40 % of 5,000+ 30.0% 0.8% 3.3% 10.0%
Convention Attendees Convention Attendees <1,000 1,000-5,000 Convention Event Profile Analysis 5,000+ 100.0% 2.1% 1.5% 90.0% 80.0% 14.7% 22.1% 20.0% 5,000+ 1,000-5,000 70.0% 26.7% <1,000 60.0% 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%
Gross Revenue Report Output Comp Set Buildings (Gross Event Revenue) Sample 1 2 3 Gross Event Revenue Range >50 million >50 million >50 million 10-50million Gross Revenue per Event by Event Type Conventions/Congresses 398,000 521,000 320,000 182,000 Trade Shows 2,005,000 737,000 2,198,000 132,000 Consumer Shows 1,719,000 855,000 723,000 405,000 Meetings - 4,000 18,000 323,000 Food and Beverage 138,000 - - 544,000 All Other Events 16,000-161,000 316,000 Total 235,000 60,000 608,000 267,000 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%
# Conventions Gross Revenue Analysis 250 200 150 100 50 0-100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Euros per Convention
# Conventions Gross Revenue Analysis 100 80 60 40 20 0-20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Euros per Convention
Utilization Report Output Comp Set Buildings (Gross Event Revenue) Sample 1 2 3 Gross Event Revenue Range >50 million >50 million >50 million 10-50million Exhibit Hall Utilization Average Event Days 150 87 101 106 Average Move In/Move Out Days 50 146 122 63 Total 200 233 223 169 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 125 91 96 144 Average Move In/Move Out Days 20 162 132 52 Total 145 253 228 197 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 100-79 - Average Move In/Move Out Days 15-23 - Total 115-102 - Utilization 31.5% 0.0% 27.9% 0.0% Move In/Out as % of Total 13.0% 0.0% 22.5% 0.0%
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% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
Labour Report Output Comp Set Buildings (Sorted by Total FTEs Employed by Centre) Sample 1 2 3 4 Labour FTEs (Employed by Centre) General & Administration 25 8 5 1 2 Events Services/Event Management 21 23 8 7 5 Sales & Advertising/Marketing 13 10 17 6 5 Food & Beverage - - 4 - - Building Operations 81 2 10 2 6 Housekeeping - - - 5 - Guest Services 15 - - - - Security - 1 - - - Other 24 - - - - Total 179 44 44 21 17 Payroll/Benefits/FTE (Employed by Centre) General & Administration 25,200 95,000 70,000 60,000 105,556 Events Services/Event Management 19,048 73,043 50,000 27,143 146,000 Sales & Advertising/Marketing 23,846 70,000 43,529 41,667 171,739 Food & Beverage - - 35,000 - - Building Operations 15,309 95,000 20,000 35,000 114,545 Housekeeping - - - 38,000 - Guest Services 6,000 - - - - Security - 80,000 - - - Other 11,667 - - - - Total 16,480 77,500 41,591 36,190 138,462 Payroll (In-House and Contract) as % of Total Revenue 29.1% 23.7% 22.6% 20.8% 37.9%
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
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
Questions???