Conference Planning, Hotel Negotiations and Avoiding the Dreaded Penalty

by Bunnie Riedel, Host, Nonprofit Conversation

This year I’ve heard more stories about bad conference attendance, being hit with hotel or meeting space penalties and outright cancellations of conferences.  For nonprofits who count on conferences to bring in needed revenue, having a disappointing conference can not only be discouraging but can threaten the bottom line.

Nonprofits, businesses and government agencies are cutting back on travel or eliminating it altogether. A friend told me that even if he wanted to spend his own money to travel to a conference (and take vacation leave) he was discouraged from doing so because his government agency thought it would just “look bad.” I know of two regional conferences that were cancelled because of low registration due to travel bans. One of them was heavily penalized by the conference center because their contract guaranteed room rental and meal expenditures. I also know of two national organizations that received large penalties because they didn’t meet their room night obligation. In these instances, nonprofits who could little afford to pay the penalties were forced to do so because of contractual requirements.

Perhaps it is time for your organization to take a hard look at your conference tradition. While conferences and meetings can mean a lot to your organizational culture; bringing members together for networking and fun; is a conference absolutely necessary and what will it mean to your organization to skip next year’s conference? Are you afraid of disappointing members or losing momentum? Without a conference will you become less relevant? Will you lose members if you don’t host a conference? Do you count on a conference as a source of revenue? And right now, can you count on a conference as a source of revenue or will it become a liability?

Could you achieve some of the same goals without a conference? Many organizations are moving to online meetings and workshops. Others are beefing up their online resources or hosting chat boards to give members a sense of connection. I think your members will completely understand if you take a one or two year conference hiatus.

If you negotiate hotel contracts a few years in advance (which actually is my recommendation) you may not have a choice in whether you host a conference or not. Typically for medium to large conferences, the opt-out period is eighteen months prior to the conference. Which brings up a point for current negotiations, tighten the terms of the opt-out period to at least one year and attempt to negotiate penalties for a nine month and six month opt-out. It is better you pay a flat penalty if you opt-out at nine months than go forward with a conference that causes you to pay conference planners, trade show costs, advertising costs, audio-visual expenses, meal guarantees and room night penalties.

Additionally, be sure to include in the contract a clause that if the hotel advertises a lower rate to the general public than what you have negotiated, your room rate drops to that lower rate. The last thing you want is to have your room rate undercut by online booking sites such as Priceline or Orbitz. Conference attendees will want that lower rate and will book outside of your block and that could cause you to not meet your room night obligation.

As a final note, everything, absolutely everything is negotiable right now. From how much you pay for coffee to what items you will serve for dinner to how much you will pay for audio-visual set ups (usually the most expensive items for conference). The economy has taken its toll on hotels and conference centers in the same way it has affected everything else. Don’t settle for fixed menus; work with the hotels and caterers to design menus that will be appealing but less expensive. You are bringing them business they would not have otherwise, allow them to accommodate you.

Contact Bunnie Riedel at info at riedelcommunications dot com

Conference or meeting tip:  Don't buy tea, hardly anyone drinks it and you will be charged $65 to $85 just for hot water at every break set-up. 

Hotel Negotiations: Getting Deals for Your Conference

Amidst all the bad news of this economy, there is a silver lining for nonprofits who host conferences. Hotels have found their income off as executive travel budgets and meetings have been cut back. Now is an excellent time to negotiate with hotels to get a great room rate, concessions on meals and extra services.

I am a big fan of planning years in advance. But the timing of your conference planning will depend on how large your organization is and how many people attend your annual or bi-annual conferences. If you have over 200 people attend your conferences on a regular basis, then negotiating hotel contracts three even four years in advance can work to your advantage. You can lock in rates now for a conference three years from now, so even if hotel business picks up, you can get bargain basement rates for the future at this year’s prices.

If you’re unsure how the economy will affect conference attendance, do a members’ survey. Are your members’ travel budgets being reduced or eliminated? What is the likelihood they will attend your conference in 2010 or 2011? It’s important to get a sense of what your members’ circumstances are so that you don’t overbook room nights and get stuck with a penalty.

The first stop to negotiation success is to work closely with the convention and visitors bureau. What have they heard about hotels in their city? The CVB’s can do the initial shopping and save you loads of time. Send them your conference needs, attendance records and agenda and let them pick out the hotels that fit your requirements. How many breakout rooms do you need? How large should the general meeting or banquet space be? Do you have to have a hotel that is unionized? Do you need space for a trade show? CVB’s can also give you a schedule of special events happening during the dates of your conference and ideas for how you can leverage them for your members.

Speaking of dates for your conference, if you have some flexibility you will save lots of money for yourself and your members. Weather, time of year, and location can all drive room prices up and certainly can drive airline prices through the roof. For instance, Washington, D.C. is very busy in the spring and summer with tourists and special events. Tampa is very busy in the winter but fairly quiet in the summer. A late October conference in D.C. or a mid-summer conference in Tampa, will allow you to negotiate excellent room rates. (Yes, I know it’s hot in Tampa in July but nearly every hotel in Tampa has a huge swimming pool and face it, most people attending conferences spend most of their time in the hotel anyway).

Don’t be afraid to “play” hotels off one another. If one hotel offers you lower room rates, go back to the others and ask them to beat the price. It also helps if you do a little intel. Check out the CVB calendar to see what conferences will be in town, if it looks slow, you will have an advantage.

And it’s not just room rates. Meals are huge bargaining chips. If you know for a fact that your organization spends $40,000 on meals (including breaks, refreshments, etc.) tell the hotel you will guarantee them a minimum of $35,000 in meals. I’ve had hotels stop in their tracks when I gave them a meal guarantee and instantly concede to what I wanted in room rates. Hotels make BIG money on their meals and breaks. Regardless of what you spend, give the hotel a meal guarantee, you will see that it makes a difference.

As for meals, I always under estimate banquet meals. Hotels will make 10% more than you requested and not every conference attendee will attend the banquet, even if they have paid for the meal. This underestimation keeps me from getting stuck with paying for meals nobody ate and I have never been comfortable with throwing away food.

You have to commit to a minimum number of room nights and sometimes that’s scary because if you don’t reach that number (or typically 90% of that number) your organization will have to pay for the rooms you booked, out of your pocket, as a penalty. This doesn’t have to be an art. Go back to previous year’s conferences and see what your room nights were. Here again, it’s better to under book rather than over book. You can usually add room nights as you get closer to the conference, but you can’t deduct room nights.

Also, never, ever, ever, ever…pay for meeting rooms! Hotels will sometimes suggest that there is a charge for meeting rooms. Unless you are just meeting at the hotel and you are not bringing them meals and room nights, then you will have to pay for the meeting room. But, if you are bringing their hotel paying customers, do not fall for paying for meeting rooms. Those rooms are the enticement of the hotel to get you to bring your conference to them. Ergo: FREE.Always keep in mind, the staff at the hotel you are negotiating with are “salespeople.” They have to sell those rooms and facilities, in fact, they are anxious to sell those rooms and facilities. Remember that when you walk in the door, you are potentially bringing a lot of business to the hotel and you are helping the hotel keep its doors open.

Contact Bunnie at info at riedelcommunications dot com

The Economy's Impact on Decision Making

It's easy to throw up your hands and just blame everything on the economy. But, can you? Debra BenAvram tells us that it's a little more complicated than that. Why donations are down or conference attendance is off may require a bit more research, investigation and introspection. Bunnie

The Economy’s Impact on Decision Making

by Debra BenAvram, CEO, American Society for Parenteral and Enteral Nutrition

One of the more subtle effects of the economic downturn is its impact on analyzing and using data to make strategic decisions. You can’t necessarily compare facts and figures from today with years past – 2009 is an anomaly. Without having meaningful statistics to rely upon, determining the direction of an organization can be extremely challenging. This is true of any organization, but the lack of comparable statistics has significant repercussions for non-profits.

Many non-profit organizations may find themselves blaming the economy for dwindling membership or light attendance at events. And in some cases, that may very well be true. It’s worth digging a little deeper, though, to see if there is another root cause.

More Art than Science

If you can’t rely solely on data and you can’t just write off issues to the downturn, what do you do? The truth is, due diligence around decision making is far more art than science. Organizations must carefully examine data not only from 2009, but going back several years to identify possible trends and norms. This information will then need to be filtered through the lens of:

· The Board and its vision for the organization;
· Environmental issues and factors that may affect any given program; and
· What members seek to get out of their relationship with your organization.

Here’s a real-world example: at the American Society for Parenteral and Enteral Nutrition (A.S.P.E.N.) - an interdisciplinary organization whose members are involved in all aspects of clinical nutrition therapies - we experienced a drop off in attendance at our annual conference, Clinical Nutrition Week. It would be very easy to blame the situation on the economy. There are probably very few, if any, organizations that have not faced the same issue this year. But it’s important to validate or disabuse that rationale.

Through data analysis, we determined that driving attendance at CNW has been an historic issue and is not just specific to 2009. By digging a little deeper, we learned that we lose a large percentage of attendees each year. Could it be the content? Or because a competing organization’s conference was held at the same time? Or that we didn’t offer enough networking opportunities? These are questions that a combination of quantitative and qualitative data can help to answer.

Simple Steps to Making Good Decisions

In 2009, how do you know if a program is less successful because of the economy? How do you know it’s not the topic or even the day of the week? Here are a few ideas to help you make decisions in the current economic environment:

Use what’s available to you. Make an effort to reach out to industry peers. Each conversation adds up to your own qualitative data gathering mission. It seems so simple, but the feedback you gather from these conversations can be invaluable.

Refer to existing studies. There is a lot of available research that can help paint a picture of what is happening in the non-profit space and how to effectively use data. For instance, the American Society for Association Executives (ASAE) provides a number of resources on its web site including The Winter 2009 Impact Study - Beliefs, Behaviors, and Attitudes in Response to the Economy (http://www.asaecenter.org/AboutUs/newsreldetail.cfm?ItemNumber=39061).

Engage members. If a program isn’t working this year (or any, for that matter) start by going back to the group or committee within your organization that planned it. Casting a wider net to help solve problems and make decisions will provide you not only with more arms and legs, but fresh ideas and insights.

Understand your members. This is a year where people are evaluating every dollar they spend. Members can be fickle, especially if forced to whittle down the number of industry affiliations they have. Gaining insights into what your members really want is key to keeping them on board.

Ask questions. Maintain an ongoing dialog with members. Quantitative data is one thing, but going straight to the source is absolutely imperative. This can be accomplished by hosting open conference calls or Web-based discussions or by conducting focus groups and Town Hall meetings. And, of course, there is always that old stand-by, the membership survey. Whatever option – or mix of channels – you choose; the most important thing is to be sure to ask questions.

Everyone has been hit by the economy – I don’t want to undervalue its impact. But don’t assume that it is the cause of all organizational woes. By drilling down and using both a qualitative and quantitative approach, you may just find your organization has come out ahead by 2010.

Debra BenAvram, CAE serves as the chief executive officer of the American Society for Parenteral and Enteral Nutrition. She is a certified association executive with areas of expertise including strategy, organizational culture, and volunteer management. She enjoys the balance of working with internal staff, the Board and others to shape the organization. Working with these partners, she works to facilitate the articulation of and movement toward the organization’s vision of its future.

Creative Conference Planning

by Bunnie Riedel, Host of Nonprofit Conversation

I’m hearing it from everybody. Conference attendance is down. Conference sponsorship is down. Conference revenues are suffering. And if your organization relies on conference revenue as an income generator, these are scary times. Are there some things you can do to adjust how you create and budget for your conference so that at the end of the day you won’t be hit so hard?

Think about the barriers to conference attendance. Many organizations, businesses and most government agencies have scaled back travel budgets. What changes can you make in your conference to accommodate these reductions?

Location, location, location

Where do you normally hold your conferences? First tier cities such as Los Angeles, San Francisco, Miami or Philadelphia? First tier cities pose a challenge because room rates are typically much higher. Could you hold your conference in a second tier city such as Sacramento or Reno or Richmond or Dayton? Will you find less competition in these cities and more cooperation from the convention and visitors bureaus? Is the city willing to “throw in” incentives for your bringing your conference to them? Perhaps free space at their convention center or special accommodations at city owned attractions such as the museum or the zoo or perhaps free bus transportation to special events?

The only caution I will provide in looking at second tier cities is sometimes (not always) airfare is more expensive and direct flights are harder to find. But other than that, I have always found that the smaller cities are very willing to go the extra mile to make sure they win conference contracts for their hotels.

Do you really need to have a national conference?

National conferences are wonderful because they bring your members together in one place. But, if your attendance has been waning, perhaps it’s time to think about smaller regional conferences. Perhaps it’s time to take the conference to the membership with conferences that could draw attendees within driving distance from surrounding regional areas. It’s like breaking up the conference into manageable bits. Let’s say rather than a four or five day conference, you create several two to three day conferences. You lower the actual conference registration rate, provide trade show vendors with the opportunity to show at one or several “regionalized” conferences (package deals) and increase overall attendance because more people can attend these regional events than the one large national conference.

Lower your overhead

Do you really need to serve all those cookies at the break or could you just serve coffee, water and sodas? Will people be offended? Not usually. Especially if they understand that your trimming back is part of the organizational trimming back. Members actually like when the organization is spending their membership dollars wisely. By the way, never-ever buy the “tea,” you will be paying $65-$85 per gallon of hot water with very few people actually using the tea bags. Or if you live in a country where you absolutely have to have tea as a beverage option, negotiate that you will only pay for tea bags that have actually been used.

Can you negotiate meals with the hotel? I once booked a cruise on the Potomac as our conference party and was able to afford it because I negotiated a lunch menu rather than a dinner menu. It dropped the cost per attendee from $75 per person to $35 per person. And guess what? Nobody noticed that the chicken entrée wasn’t a dinner entrée but instead the luncheon entrée.

Can you contact members with an online brochure? Do you really need to print the brochure? And if you really do need to print it, can you print it two color rather than four? One of my favorite tricks is to use lighter weight paper, it reduces mail cost.

Is it possible to replace staff with volunteers so you can reduce travel costs and staff hours (and potential overtime)?

Is it time to move from a cloth conference bag to a plastic one, can you use clip on badges rather than lanyards, do you really need to provide a notepad to every attendee?

Did you know that people really do like the “dinner on your own” night? That way they can have time with friends and catch up with one another.

Can you combine special events? Perhaps you can combine an awards ceremony with the keynote luncheon.

I’m not saying be cheap, I am saying be frugal. And right now, as we see all across the globe, “frugality” is in style.

Offer special registration incentives

Make sure your early bird registration is discounted enough from regular registration to make it attractive (and do have an early bird registration, it helps so much in conference planning). Offer a special discount to attendees coming from the same organization or business. Perhaps one at full price and the other 25% off; two at full price and two at 50% off, etc. Have a contest: those organizations or businesses sending the most attendees will receive a certain number of free conference registrations next year (and include hotel expenses). Offer a discount on membership with each registration, combine the package: membership = $100 and conference = $100, combine them for $135.

Make sure your trade show vendors also receive special perks

You can hang on to charging $2,000 for a booth or you can charge $1,200 and have more vendors. And while the cost of drayage will be more overall (more booths), at least you will have a trade show that will be worth attending and your vendors will be more likely to come.

Remember that trade show cotton candy is the attendees’ list. Don’t scrimp on that, these vendors have paid to be at your trade show give them the attendees list, with phone numbers included, and I prefer email addresses but some organizations have policy against that. Combine your trade show charges with advertising charges and provide a discount.

Start early

A previous post discussed negotiating with hotels and recommended you always be looking three or so years in advance. The same with conference publicity, let your members know where your conferences are going to be and when, well in advance. Having advance notice allows attendees to budget for the cost of attendance or make special arrangements with their organization or business.

I hope these tips help you in conference planning. Re-thinking how you “do” conference can save you quite a bit of money and increase attendance.

Contact Bunnie info at riedelcommunications dot com