Hotel Convention Sales, Services and Operations

HOTEL CONVENTION

SALES, SERVICES,

AND OPERATIONS

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HOTEL

CONVENTION

SALES, SERVICES,

AND OPERATIONS

Pat Golden-Romero

Hospitality & Convention Industry Educator and Consultant

AMSTERDAM • BOSTON • HEIDELBERG • LONDON

NEW YORK • OXFORD • PARIS • SAN DIEGO

SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO

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CONTENTS

Preface xiii

Acknowledgements xv

About the Author xvii

1 THE CONVENTION AND MEETINGS INDUSTRY:

AN OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Learning Objectives 1

Introduction 1

Service Sector Economic Impact 2

Types of Facilities That Hold Meetings and Conventions 5

Convention Centers 6

University and College Campuses 7

Types of Meeting Planners 7

Meeting Industry Reports 9

Additional 2005 Meetings Market Report Highlights 9

Trends and Practices 11

Review Questions 13

References 14

Glossary 14

Appendixes 14

2 THE ASSOCIATIONS, CONVENTION, AND MEETINGS

MARKET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Learning Objectives 19

Introduction 19

Definitions of Associations 20

Association Purpose and Benefits 20

Types of Associations 25

When Conventions Are Held 25

Types of Facilities Selected 25

The Decision-Making Process 26

Types of Events and Their Requirements 26

vii

Meeting Rotation Cycle and Other Areas Governed by

Association Bylaw Requirements 27

Trade Shows 28

Resources 29

Summary 30

Review Questions 30

References 30

Additional Resources and Web Sites 30

Glossary 31

Appendixes 31

3 THE CORPORATE MEETINGS MARKET . . . . . . . . . . . 39

Learning Objectives 39

Introduction 39

Event Requirements for Each Type 40

Site Selection 41

Who Makes Decisions? 42

From the Author 43

Certification 45

Sources of Business for the Corporate Meeting Market 46

Return on Investment, Justifying Your Existence 47

In Closing 49

Review Questions 49

References 51

Additional Resources 51

Appendix 53

4 THE INCENTIVE, SMERF, AND OTHER MARKETS . . . . . 57

Learning Objectives 57

Introduction 57

Tour and Travel Market 57

Incentive Travel Market 59

Smerf 63

Insurance Meetings 65

Religious Groups 67

Government Groups 67

Educational Meetings 71

Fraternal Public Service Organizations 71

Medical and Health Care Meetings 73

Labor Unions 73

Additional Markets to Consider 74

Summary 75

Review Questions 75

References 75

Additional Resources and Web Sites 75

Glossary 76

Appendixes 77

viii CONTENTS

5 THE ROLE OF CONVENTION BUREAUS AND OTHER

DESTINATION MARKETING ORGANIZATIONS . . . . . . 97

Learning Objectives 97

Convention and Visitors Bureaus 98

Leads Programs 102

The Mission of Convention and Visitors Bureaus 102

International Association of Convention and Visitors

Bureaus (IACVB) 104

Summary 108

Review Questions 108

References 108

Additional Resources and Web Sites 108

Glossary 108

Appendix 109

6 MARKETING AND ADVERTISING STRATEGIES . . . . . . 115

Learning Objectives 115

Introduction 115

The Four Ps Of Marketing—the Marketing Mix 116

The Marketing Plan 116

Advertising to the Group Meeting Planner 119

Distinguishing the Advertisement 127

Summary 130

Review Questions 131

References 131

Glossary 132

Appendixes 132

7 CONVENTION SALES NEGOTIATIONS AND

CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

Learning Objectives 141

Introduction 141

Procedures 142

Other Forms of a Proposal 142

Contracts 146

Differences between a Tentative Proposal and a Final

Contract 146

Room Blocks 153

Negotiation 153

Attrition 154

Summary 157

Review Questions 157

References 158

Glossary 158

Appendixes 160

CONTENTS ix

8 FOOD AND BEVERAGE FUNCTION PLANNING . . . . . . 177

Learning Objectives 177

Introduction 177

Function and Menu Planning 178

Banquet Menu Pricing 179

Types of Beverage Setups 184

Wines 186

Beverage Controls and Procedures 186

Banquet Event Orders (BEO) or Function Sheets 186

Sponsors 191

Methods of Control and Tracking 192

Guarantees 192

The Seller’s Perspective 192

Head Table Planning 193

Catering Guidelines and Policies 194

Labor and Union Issues 194

Gratuities and Tipping 194

Summary 194

Review Questions 196

References 196

Additional Resources and Web Sites 196

Glossary 197

Appendix 199

9 MEETING ROOM AND CONVENTION PLANNING . . . . 201

Learning Objectives 201

Introduction 201

The First Step 201

Types of Function Rooms 202

Function Room Assignments 207

Meeting Room Design and Specifications 213

Computer Technology Improvements 213

Summary 214

Review Questions 216

Additional Resources and Web Sites 216

Reference 217

Glossary 217

10 ON-SITE EVENT PLANNING: SERVICING THE EVENT . . . 219

Learning Objectives 219

Introduction 219

Accounting and Billing Procedures 221

Gratuities for Hotel Service Employees Staff 221

Billing and Gratuity Guidelines for Corporate and

Nonassociation Groups 222

Postconvention Review 223

x CONTENTS

Preconvention Meeting 223

The Banquet Event Order (BEO) 226

Computerized Group Sales and Event Forms 227

Postevent Follow-up and Questionnaires 227

Guest Group Room Block Reporting 227

Summary 230

Review Questions 230

References 231

Additional Resources And Web Sites 231

Glossary 231

Appendix 232

11 EXHIBITION AND TRADE SHOW INDUSTRY

OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249

Learning Objectives 249

Introduction 249

Exhibitions 250

Booths 250

Floor Plans and Diagrams 251

Who Does What in Planning an Exhibition Trade Show? 251

Review Questions 254

References 254

Additional Resources, Web Sites, and Publications 254

Related Organizations 254

Glossary 255

Appendix 256

12 INDUSTRY TRENDS AND RESOURCES . . . . . . . . . . . . 285

New and Emerging Trends 285

References 295

Appendixes 296

Index 305

CONTENTS xi

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PREFACE

During the first half of my hospitality career I was always in the minority—

my undergraduate degrees were in the same field in which I had chosen to

work. Though I’d obtained my degrees from well respected academic institu￾tions, there were a limited number of Hotel Management college programs in

the U. S. Today, many of the both 2- and 4-year college programs, in every

hospitality industry related discipline, are experiencing record growth. The

tremendous industry support provided to these institutions is quite evident at

career placement fairs; graduates interview with multinational hospitality cor￾porations. I am happy to say that I’m no longer in the minority!

During the second half of my hospitality industry I began teaching in the

aforementioned programs. I noticed that the vast majority of those enrolled in

college programs in this discipline, entered school with some previous indus￾try experience. Additionally, they often continued working many hours while

enrolled in school, either out of necessity or because of their enjoyment of their

work. Over the last 16 years countless students have provided valuable con￾tributions to my classes from their own “work experience.” This book and the

accompanying instructor’s guide include relevant examples and case studies

from some of those students who’ve kept in touch and shared their hospital￾ity industry successes.

Through out my teaching career I have tried to share this philosophy with

students: “I truly believe that this is one subject in which actual work experi￾ence is necessary to be an effective teacher.” This book represents the marriage

or joining of my dual careers in this interrelated, exciting industry. I am priv￾ileged to have this opportunity to share my knowledge and experience with

you.

WHO SHOULD USE THIS BOOK

The book has been created for a few different audiences. This includes stu￾dents enrolled in a hospitality, meeting & convention, or tourism management

program. The accompanying instructor’s guide, which includes comprehensive

course and testing materials, will facilitate the learning process through “real

xiii

world” case studies. It will also be useful for those already engaged in indus￾try careers selling or servicing the hospitality product. The key group markets;

their wants and needs are explored, and effective marketing strategies are

examined.

This book will also provide the beginning meeting or special event planners

with more knowledge of the facility side of the planning process. Many group

planners are part-time, have other responsibilities, and often receive little or

no formal training. This book will provide those individuals with additional

knowledge about the facility and services available at the destination, thereby

improving their overall meeting success.

It has been my experience, that as, hospitality industry suppliers gain expe￾rience, many gravitate to the planner side. Regardless of your current focus

Hotel Convention Sales, Services, and Operations will improve your under￾standing of both sides, with often overlapping responsibilities, facilitating

alternative career exploration.

ORGANIZATION OF BOOK CONTENT

Each chapter offers a consistent structure beginning with learning objectives,

main topics, industry “insider tips,” discussion questions, internet and addi￾tional resources. The book also features terms and definitions from the Con￾vention Industry Council (CIC) Glossary of Terms. Located towards the end

of each chapter, these definitions have been developed through industry wide

collaboration. A number of chapters have an appendix which features useful

CIC event planning guides and forms, also created through industry wide coop￾eration. Each chapter contains samples, contributed by industry sources, of

standard forms and procedures.

The first chapter of Hotel Convention Sales, Services, and Operations begins

with an introduction to the key elements of this vast industry. Chapters 2–5

discuss each group market segment; their facility requirements, and services

available at the destination. Chapter 6 is devoted exclusively to the marketing

and advertising strategies employed, to develop business from each group

segment. Chapters 7–10 focuses on the negotiation process, contracts; event

planning and facility coordination of group services. Chapter 11 provides an

overview of the key components of the exhibition trade show industry and

ancillary service providers. Finally, Chapter 12 presents some of the current

industry trends and discusses their potential impact.

Pat Golden-Romero

Temecula, CA

April 2007

xiv PREFACE