澳门科技大学酒店会议chapterPPT课件.ppt

FacultyofHospitalityandTourismManagementHotelConferenceOperationsHMGT1305酒店會議經營 Dr Wang Yongqiangyqwang must edu mo Lecture4TheIncentive SMERF andOtherMarkets 1 LearningObjectives Afterstudyingthischapter youwillbeabletodiscuss TheSMERFmarkets social military educational religious fraternal Theincentivemarketandtheuniquerequirementsofthissegment Thetourandtravelmarket andhowithasdrasticallychangedinrecentyears Thesenior theater andsportsmarketsegments INTRODUCTIONTOURANDTRAVELMARKETINCENTIVETRAVELMARKETSMERFINSURANCEMEETINGSRELIGIOUSGROUPSGOVERNMENTGROUPSEDUCATIONALMEETINGSFRATERNALPUBLICSERVICEORGANIZATIONSMEDICALANDHEALTHCAREMEETINGSLABORUNIONSADDITIONALMARKETSTOCONSIDER Lecture4TheIncentive SMERF andOtherMarkets Thefollowingmarketscanprovideasignificantamountofbothindividualandgrouproomnightsforsometypesofhotels Someofthesemarketsalsohavemeetingsandtradeshows whichcanprovidemorethanincrementalrevenue Thesemarkets however arenotpresentedinorderoftheirrevenuepotential Historically eachhotelindividuallyevaluatesthepotentialofeachmarketsegmentandthendevelopsitsmarketingplansaccordingly INTRODUCTION Thetourandtravelmarketislikealargeumbrellathatcoversmanyothermarkets Inrecentyears thismarkethasundergoneunprecedentedchangeinbookingpracticesandprocedures Untilthelate1990s retailtravelagentswereresponsibleforthemajorityofbothgroupandindividualbookingsforbothtransportationandaccommodations Sincethentwohugeeventshavecollectivelybroughtaboutthischange ThefirstwastheInternet whichquicklyrevolutionizedhowpeopleplannedandbookedtheirownvacationsandbusinesstrips TOURANDTRAVELMARKET TOURANDTRAVELMARKET continued Second butnotindependently theairlineindustryhasslowlycutthecommissionstotravelagents Sincemassairtravelfirstbegan commissionsofaround10percenthadbeenstandardtoagentsfortheirservicesandissuingofairlinetickets Subsequently commissionsbecamethestandardbywhichothermajortravelservices especiallyhotels rewardtravelagenciesfortheirbusiness Atthesametime therehasbeenanincreaseintheamountofleisuretimeforsometravelers whereasothersoftenneedtocombinebusinessand family vacationsintoonetrip Aspreviouslymentioned manywell traveledindividualsnolongerrelyon orseethebenefitof atravelagent therebyrenderingtheretailtravelagentobsolete TOURANDTRAVELMARKET continued Consequently almostallagenciesnowmustchargeafeefortheirserviceswhenbookingairfareand orahotel asthecommissionshadpreviouslyprovidedtheirlion sshareofincome AscustomershavebecomemorecomfortableusingtheInternet theyhavesimultaneouslybeentargetedforthemajor Internet onlyprice discountsadvertisingcampaignsbythemajortravelindustrycorporations Thoughtherearemanycontributingfactors theendresulthasbeenthatmanyretailandwholesaletravel tourcompanieshavegoneoutofbusinesssince2000 Therecentincreaseintravel relatedbusinessfailureshasnotgoneunnoticedbytheconsumer resultinginanincreaseintravelinsuranceandbookingsmadedirectlybytheuser TOURANDTRAVELMARKET continued Thetravel touragenciesthathavesurvivedthedownturninbusinessarethosethatbegandevelopingalternativemarketsegmentsuptoonedecadeprior Thesuccessfultravelplanningcompanytodayhasactivesalespeoplesolicitingalltypesofgroupsthattravel usuallyforleisurepurposes Travelarrangementsforindividualcorporatebusinesstravelerstodayareroutinelymadethroughtheirownoffices Sincethelate1980sanumberoftravelagencieshavebecomethein housetraveldepartmentforlargecorporationswithmanyemployeeswhotravelfrequently Historically thesetypesofagreementshavesuccessfullytrimmedthetravelbudgetsthroughvolumediscounts Thisleadsustotheimpactsonthehotel conventionindustry Manyin housetravelagentsareaskedtogatherbidsforroomratesfromhotelsforcompanymeetings whichusuallyinvolvessomeeventplanning ImpactsontheHotel ConventionIndustry Fromtheperspectiveofthehotelsalesdepartment thistypeofbusiness corporategroup canyieldhigherreturns higherroomrateandfunctionrevenue thantheindividualtourandtravelmarket Bothsmall tenorfewer andlargetourgroupshavereapedpackagediscountsthroughthissystem whichisintegraltothismarket Transportationisaveryimportantfactorbecauseitcanincludethemeanstoarriveatadestination airlines motorcoaches railroads orlimousines oritcanbethefinaldestinationitself suchascruiseships Moreover transportationconveyancescanbeusedatthedestinationforgroupmovementandentertainment e g deep seafishingboatsorspecialexcursiontrains ImpactsontheHotel ConventionIndustry continued Technically theincentivemarketispartofthecorporatemarketdiscussedinnextarticle However thissegmentaloneprovidessubstantialrevenuetomanyfull serviceluxuryresortproperties Therefore wewilltreatitasaspecialcategory Incentivetravelisanawardthatisofferedasaprizeormotivationtoemployeesordistributorswhoachievethegoalestablishedbyacompany Historically incentiveprogramshavebeensuccessfullyusedforthoseinsalesorsellingpositions Sinceitisareward onlythemostexclusiveandexoticdestinations resorts andcruisesarechosen Meetingsareusuallylimitedtofourtosixhourstotalforincentiveprograms TheitineraryisdevelopedwiththeIRSguidelinesinmindforincentiverewards Forfurtherinformationoncurrentgovernmentreportingrequirements contactSITE SocietyofIncentiveTravelExecutives seeAdditionalResourcesattheendofthearticle ThelargercompaniesthatplanthesemotivationalprogramsbelongtoSITE INCENTIVETRAVELMARKET Theindustriesthatgeneratethemostincentiveprogramsareinsurancecompanies automobiledealers andhomeappliancedistributors fromhottubstorefrigerators Asincentivedemandhasincreased sohastheneedforprofessionalstoorganizetheseprograms Knownasincentivetravelhouses thesecompaniesnegotiatedirectlywiththehotels airlines andrelatedtravelservices Thereareamultitudeofservicesthatincentivehousescanprovideiftheclientneedscompletecoordination Theimportantthingistoknowwhatwillmotivatedifferentpeopleandcreatetherightprogramforeach allatthesamedestination INCENTIVETRAVELMARKET continued TheSocietyofIncentiveandTravelExecutivespartnerswiththeMotivationTradeshow ITME toannuallybringtogetherthemajorbuyersandsellersofincentiveproductsandservices Onlydestinationandhotelfacilitiesdesirabletothismarketwouldconsidermakingtheinvestmentforaboothatthisshow whichusuallyhasawaitinglist Remember too thattherearemanyothernon travelindustryproductsthatcompetefortheincentiveindustrydollar Theleadersintheseproductlinesalsoarerepresentedatthisshow Sowhatdestinationsandactivitiesgetpeoplemotivatedthesedays Whatarethelatesttrendswithprograms ThefollowingisparaphrasedfromanarticleonincentivesbyCarolynBlackburn inMeetingsWest September2004issue IncentiveIndustryTrade shows Groupincentivetravelnowincludesactivitiesfromwine pairingculinaryclassestooff roadHummertours Groupsrangefromthemidtolate20stotheearly60s Activitiesincludewhite waterrafting waterskiing horsebackriding golf spatreatments finedining andbungeejumping Someofthefactorsthatinfluencethisdecisionare Incentivebudgeteconomy howstrongistheeconomyinthecountryinwhichthesponsoringgroupisheadquartered Buyingpower strengthortheU S dollar exchangerateinthecountriesbeingconsideredatthedestination Politicalclimate post 9 11terroristalertlevel customer fearfactor Value amenitiescomparedtootherdestinations Uniquenessofexperience havetheseparticipantsexperiencedthistypeoftripbefore IncentiveIndustryTrade shows continued AmarketsegmentquitedifferentfromtheIncentivebusinessistheSMERFmarket whichreferstoanumberofdifferentgroupsthathavecommonattributesandrequirements TheacronymSMERF believedtohavebeencoinedlongagobyhoteliers standsforsocial military education religious andfraternal Thoughmanyfeelthistermispass thehotelsalesprofessionalswhospeaktomyclassesstillrecognizethemarketandusetheterm SMERF SMERFssharethefollowingcharacteristics Nonprofit Veryprice sensitive needlowrates Meetduringtheslow off seasonandoftenbringfamilymembers Themeetingplannersareusuallyvolunteerandchangeeachyear Rangefrom50to500 sleepingroomspernight oftenstaytwosinglesperroom Varygreatlyintheirmeetingroomrequirements SMERF continued Thebottomlineisthatthesegroupsareoftenthosethatwillfillslowdates whateverthetypeofpropertyandlocation OftenSMERFattendeesrepresentinganavocationalassociationholdfuturepotentialbusinessfromtheirprofessionaswell UndertheSMERFumbrella therearealmosttoomanysubstitutionsforthegroupsthatholdeachlettertitle Forexample somehaveusedtheRtorefertoreuniongroups andsincetherearenorealhardandfastrules thisalternativeisacceptable Additionally someusetheSforsocial wherereunionsmightbecategorized ThereunionmarketsegmenthasreallygrownwiththehelpoftheInternet Schoolalumnifromhighschoolstocollegeshavefoundeachotheronline andenlistedgroupslargeenoughtohireaprofessionalwebbasedplannertoorganizetheirreunions SMERF continued TherestoftheSMERFsegments education religion andfraternal allprovidesignificantsleepingroomblocks foodandbeverage andusuallyneedsubstantialmeetingspaceaswell Thoughthesesegmentsmayseemtobeverymuchalike theyeachhavespecificneeds EachoftheSMERFmarketsegmentshasitsowninternationalassociation buttheyhaveenoughissuesincommontomakeitbeneficialtoshareresourcesandarticles whichiswhysomearticlesarepublishedinmorethanonesegment Formorein depthinformationonthetradeassociationsforeachsegment pleasegototheirWebsite SMERF continued Likeincentives theinsurancemeetingmarketispartofthecorporatemarket However theyalsofallintoaspecialnichemarket inpartduetothelargeamountofmoneyspentbytheinsuranceindustry Interestingly theinsuranceindustry typicallylargecorporations isthelargestuserofincentivetravelawards Theyareshownbymeetingplannerssurveysconsistentlytobethenumberonespenderannually Thenumberofinsurancecompanieschangesfrequently asmergersandacquisitionsoccuroften Thisactivityalonecreatesaneedfornumerousmeetings Eachinsurancecompanycanholdupto20meetingsayearincludingnationalandregionalconventions trainingseminars andconferences Thissegmentalsohasmanyprofessionalmeetingplannerswithtitleslikevicepresident marketingdirector andmeetingplanner INSURANCEMEETINGS Sinceinsurancecompaniesarecorporations mostplannersinthiscategoryaremembersofoneormoremeetingmanagementassociations OneistheInsurancePlannersConferenceAssociation ICPA ThelargestinsuranceplannersusuallybelongtotheProfessionalConventionManagementAssociation PCMA www pcma org Thissegmentincludesplannersrepresentingthelargergroupsthatbelongtothetradeassociation theReligiousConferenceManagementAssociation RCMA whichrepresentsover200differentdenominations AsthePCMAhomepageshows thisorganizationhasmuchdiversificationinitsmembership PCMAbeganasahealthcarememberorganizationbuthasexpandedtoincludethescientific engineering andinsuranceindustries INSURANCEMEETINGS continued Thelargestreligiousconventionsbring10 000to30 000attendeestocities typicallybookingeveryhotelandmotelroomavailable KnownasacitywideconventionbythelocalConventionandVisitorsBureau CVB moreonthisserviceinalaterarticle religiousconventionscanlastaweekorlonger Manyplannersrepresentingthelargergroupsbelongtothetradeassociationthatrepresentsover200differentdenominations theRCMA RefertotheirWebsiteforadditionalinformationonthisassociation Ingeneral religiousgroupsmeetduringtheweekend typicallyslowerperiodsfordowntowncityhotels RELIGIOUSGROUPS ThisvastmarketsegmentiscomposedofliterallythousandsofgovernmentagenciesthroughouttheUnitedStates Ingeneral thegovernmentsegmentiscontrolledbytheperdiemsestablishedbytheU S GeneralServicesAdminis tration GSA whichdeterminestheamountofmoneythatwillbeallowedfortravel relatedexpenses Mostplanners andtherearemultiplecategories belongtotheSocietyofGovernmentMeetingPlanners SGMP ThisassociationisalsopartofthepublishingresourceMeetingsNetWebsite refertothissiteforadditionalinformationonthisassociation Thegovernmentmarketsegmenthasverywell establishedguidelinesforbidsrequestsforproposals whicharediscussedinlaterarticles Thissegmenttypicallybooksshortterm fourtoeightmonthsout Additionally othergovernmentmeetingsthatcangoovertheperdiemamountscanbeidentifiedthroughnetworkinggovernmentcontactsandresearchviatheSGMPmembership GOVERNMENTGROUPS Educationalgroupsalmostexclusivelymeetduringthesummerandwillusedormitoriesandcollegeclassroomswhennecessary AswithotherSMERFs roomrateisparamount asmostattendees educators payallorpartoftheirownexpenses EDUCATIONALMEETINGS Thismarketiscomposedoftwotypesofgroups bothofwhicharestrongadvocatesofcommunityservice Firsttherearethefraternalserviceorganizations Themostwell knowncommunitycivicgroupshavefamiliarnames Rotary扶輪社 Kiwanis同濟會 LionsClub獅子會 andtheLoyalOrderofMoose Otherwell knowngroupsinthefraternalcategoryincludeInternationalShrinersandveteransrelatedgroups suchasAmericanLegionandVFW VeteransofForeignWars Plannersinthiscategoryarealmostallvolunteers Theseorganizationsallhavearticlesineachcity whichholdlocalmonthlymeetings Theyareundoubtedlywellknownforthewidevarietyofcommunityeventstheyrun FRATERNALPUBLICSERVICEORGANIZATIONS Thesecondtypeconsistsofcollegesororitiesandfraternities Theyhavelargeeventsonlyduringthesummerandmayneedonlyoverflowguestroomsandmeetingspace Theyoftenusecollegedormitoriesandclassrooms Plannersforthelargesteventsoftenarepaid andbooktwotothreeyearsinadvance FRATERNALPUBLICSERVICEORGANIZATIONS continued Composedofthebroadhealthcareprofessions includingpharmaceuticalcompanies thisisafast growingsegment Themajorityofmedicalmeetingsareusuallyfewerthan200people Typesofmeetingsincludeintroductionofnewproductsbydrugmanufacturers pharmaceutical andconferencesonnewsurgicalproceduresandtreatments MEDICALANDHEALTHCAREMEETINGS Thereareestimatedtobeatleast150differentlabor trade unions whichcollectivelyrepresenthundredsofthousandsofmembers Thisisavastmarketthatholdsnumerousregionalandnationalconventions Twocriticalfactorsdeterminesiteselection lowroomrate andwhetherthehotels employeesaremembersofanyunion Forexample therestaurantorfoodandbeverageemployeesareoftenmembersofoneunion whereasotherdepartmentsmayberepresentedbyacompletelydifferentunion Meetingsheldusuallyincludenational regionalconventions national regionalconferences andexecutivecommittees Thehotelmaynotbeconsideredforthebiggereventsuntiltheseoccur PlannersareoftenprofessionalswhoholdthetitleofUnionSecretary LABORUNIONS ArelatedarticleontheimpactofunionsfromtheMeetingsNetWebsitecanbefoundattheendofthisarticle Itaddressesthegrowingimpactofunioncontractsonthehotelandconventionindustry Thearticlesuccinctlydescribestherecentfalloutwhenlaborcontractnegotiationsfailedintwomajorconventioncities Whenworkers unionmembers walkedofftheirjobs managementwaschallengedtoprovideexcellentserviceforin houseconventiongroups Additionally thearticleoffersstrategiesformeetingplannerstoprotecttheirmeeting LABORUNIONS continued Finally thereareafewadditionalmarketsthatwarrantconsiderationforpossiblegrouporindividualfrequentorevensmallgroupmeetingbusiness Eachhotelshouldfollowitsrespectivemarketingplans which ifdonecorrectly willhavepredeterminedthemarketmixbasedonthepositioningofthatproperty Sincethisisnotamarketingtextbook Ihaveincludedonlyonechapteronhospitalitystrategies Therefore thefollowingmarketsshouldbeconsideredonlyaspossibilitiestoinvestigateforfurtherdevelopment ADDITIONALMARKETSTOCONSIDER Theaterorartsmarket Isthehotelinornearthetheaterdistrict Contacttheateroperators productioncompanies andactorsguild orstagecrew artists displaylocalartistswork Sportsandteamsmarket Widevarietyofgroupeventsforalltypesofhotels TeamsfromLittleLeagues otheryouth orientedactivitiestoprofessionals allneedhotelaccommodationswhentheytravel Contactsincludethecoach athleticdirector orteammanager Inadditiontosleepingrooms specialmealarrangementsareoftenrequired Seniorcitizenmarket WidevarietyofgroupbusinessincludingGreyPanthers AmericanAssociationofRetiredPersons AARP Thisisthefastestgrowingagegroupandwillonlycontinuetogrowasmorebabyboomers peoplebornbetween1946and1964 reachretirementage ADDITIONALMARKETSTOCONSIDER continued Thesemarketsegmentswillcontinuetoprovidesubstantialrevenueforthehospitalityindustrybothdirectlyandindirectly Differentfromboththeassociationandcorporategroupbusiness theSMERFshavelimitedbudgetanddateflexibility Seasonedhotelsalesprofessionalsknowthatthisistheidealmarketsegmenttofillthoseslowperiods However inabuyer driveneconomy thereisstillmuchcompetition Thecompetitionforthehigh end full serviceincentivemarketispalpablebutlimitedtoonlythemosthigh endresortfacilities Ingeneral thereissuchawidevarietyofroomsandmeetingsbusinessopportunitiesherethatmosthotelscanbesuccessfulwithdevelopingoneormoreofthesemarketsegments SUMMARY DMC DestinationManagementCompany Professionalcompanyengagedinorganizingeventsofalltypes andtheirrelatedactivities F