Virtual conferencing:
Enabling the industry, or obliterating it?
By Kathy Ombler
The cost savings, attendance numbers and carbon emission reductions might have been impressive when multinational networking systems supplier Cisco bought 19,000 international staff together in its first virtual conference last year. However feedback from participants was less so, with sales staff reporting they did not feel virtually motivated or inspired.
Also not impressed, when Cisco Australia New Zealand vice president Les Williamson lauded the merits of the virtual experiment at the AsiaPacific Incentive AIME business events forum, were conference industry representatives.
Instead of bringing some 15,000 international staff together in the usual, traditional conference forum in Las Vegas, where many delegates ‘got lost in the bars’, Williamson said 19,000 people registered for the virtual conference, from 600 locations across 24 time zones. Of those, 93 percent logged in, 13,000 participated in a ‘Threshold Alternative Reality Game’ and 8,000 participated in a chat zone; realising a much higher ‘attendance’ than when actually meeting in Las Vegas.
The virtual model realised a 90 percent cost reduction, 334,000 hours less travel time and an 84,000 ton reduction in carbon emissions, said Williamson.
However, he said disadvantages included the inability for a virtual conference to deliver dynamic sales inspiration.
‘Feedback from sales team staff said they did not feel they could be motivated or inspired virtually. The perception is it can’t be done so they weren’t giving it a chance. The audience still emphatically felt they wanted to be doing this in person.’
While Williamson conceded a need for a hybrid virtual/real conference mix, he said technology enabled people to connect.
‘I believe corporates need to change the way they connect with their people. There is a conspiracy theory that the Cisco boys, driving the virtual industry, will have an (adverse) impact on the hotel and airline industries. It’s about people connecting. Technology enables – it is not a total replacement – it’s about connecting to people and I think technology can certainly add value.‘
Feedback
CINZ New Zealand CEO Alan Trotter accused Cisco of being an obliterator of the conference industry.
‘You don’t enable, you obliterate. Abandoning the Las Vegas format I felt quite disquieting from an industry point of view.’
MEETINGS:review CEO James Latham wondered if the 90% cost reduction was worthwhile if feedback from sales staff was that the virtual conference didn’t motivate or inspire them.
‘In terms of motivation, the live meeting experience cannot be replicated in the virtual world.’
Williamson countered that the financial environment at the time forced a lot of companies, including Cisco, to change their operational models. ‘Did we go too far? I don’t think so and yes, we will swing back to a hybrid model.
‘We made a business decision that bringing together 15,000 people to Las Vegas won’t happen, (but) we will still have theatres bringing people together in the US, Europe, Australia and New Zealand. When I go trying to get dynamic sales inspiration I’ll be looking for venues I can book in every Australian and New Zealand city.’
Cisco’s virtual conference had been watched carefully by members of the United States Professional Convention Management Association, said CEO and president Deborah Sexton.
‘I don’t think virtual is going to obliterate the industry. Today if convention providers are not embracing technology I think they’re making a mistake. (However) I don’t think it’s going to destroy the big face to face meeting. If a company wants to introduce a new product people want to feel it, touch it. I think Cisco will once again bring their international people together, I think they realise they have too much to lose.’
John Clarke, general manager of Millennium Hotel Queenstown, catches up with Caroline Trevaskis, Kate Fraresso and Ida Karlsson, all from Organisation Unlimited
Late for an important date
For many years, suppliers to the conference and event industry have been lamenting the turn towards last minute business. From a venue or caterer’s point of view it makes life much harder to plan and budget for, while operational and logistical problems can arise if time has been too tight to organise things well.
At the same time, especially in this economic environment, a supplier with a gap in the diary would be downright foolish to turn away business – even if it is for 100 people wanting a banquet tomorrow.
In terms of late bookings, nothing is improving and the industry suppliers just have to take a deep breath and get on with it (or turn business away and watch it go to competitors).
A number of commentators have pointed out that business events were postponed and cancelled in the depth of the recession last year and many companies are now making quick decisions to hold strategic meetings, educational seminars and conferences to get the company back on track.
That’s undoubtedly part of it, but there is also evidence that corporates are waiting until the last minute to book a venue and services for calculated financial reasons. Barry Quayle, president of the Exhibition and Event Association of Australia’s New Zealand chapter says managers don’t want to tie their staff up on events for as long as they have in the past – so they give the PA a fortnight to do what used to take a month. There is also a reluctance to hand over a deposit, and many companies would rather risk missing out on their first choice venue than spoiling cash flow. More of Quayle’s comments are on page 9.
Corporate meeting planners have also gained the perception that by making a decision late they will get ‘distressed’ space and possibly cheap accommodation.
There is also a much wider issue that has nothing to do with any particular industry – people want instant gratification and they want it now.
One thing is for sure, the trend is not going to reverse in a hurry. The industry certainly understands this and many suppliers see it not as a threat but an opportunity to fill conference rooms, restaurants and beds. (Even weddings are booking later than they used to).
I suppose all suppliers can hope for is that if something goes wrong, the client will at least recognise that tight time frames put extra pressure on the venue, hotel, caterer and everyone else. Perhaps we will hear someone say ‘well it’s ok, after all we booked really late.’ How does that famous Tui beer advert go?
Stu Freeman
Editor
Demand back – yield the challenge
Mantra Group has seen demand for conferences and incentives ‘flow back’ since late 2009, but ‘financially prudent’ business events will be the order of the next year.
Kent Davidson, group director of sales and revenue with Mantra Group, says there is no doubt the conference market was one of the hardest hit during the global financial crisis. ‘Our properties in the Gold Coast, Sunshine Coast and Tropical North Queensland all continued to do well in the leisure markets – stimulated by rates initiatives and specials. But the corporate market really suffered.’
He says the slowdown began in October 2008 and continued for 14 months.
Mantra Group operates more than 140 properties Australia wide under the Peppers, Mantra and Breakfree brands.
Davidson feels that the challenge now is to get hotel rates back where they were in 2008 – but he concedes that could be a long, slow process and vary from destination to destination.
‘The conference market is coming back strongly and the demand is up where it was prior to the GFC. A lot of companies (last year) lost the opportunity to bring their teams together, while at the same time facing a difficult year strategically. They could not address the issues because of the restraints put upon them.
‘There is no doubt companies realise they need to regain the strategic aspect of their businesses in 2010 and the best way to rally resources is to pull them together.
‘However, we are not going to see as much team building and there will continue to be a reduction in lavish dinners and the bells and whistles.
‘I think the attendance numbers will hold up, but the conferences may be over a shorter time frame.’
He says factors such as recession and ‘animal flus’ invariably lead to price wars. ‘It takes a heart beat for prices to fall and months or even years to get them back to the level they were at. In the Sydney CBD demand is as strong as ever, but rates are still down.’
Davidson, who held a press briefing at AIME 2010, says Melbourne is likely to have its own challenges as a huge increase in inventory takes hold this year.
‘Melbourne should expect a drop in revenue per available room from between 12 to 15%. Melbourne is a particularly resilient market because of its events calendar, but we still expect the market to be put under pressure and the occupancy to be spread across the new and existing inventory.
‘So we have seen rates drop in 2009, they are picking up now and then the new inventory will bring pressure again. So it is an up and down ride. The four star market in the CBD will be under pressure – they will be up against pre-opening specials. The challenge for the five star market is that they have to be careful not to cannibalise their own market.’
Gloom lifts – mood upbeat
After last year’s gloom, a definite upbeat mood was sensed among Kiwi exhibitors at the 18th Asia-Pacific Incentives & Meetings Expo (AIME).
Compared with 2009, which was challenging for everyone, there seem to be more opportunities for business this year, says Auckland Convention Bureau’s Anna Hayward. ‘It’s been very positive, we have a number of proposals and opportunities to work on. Where people had been holding off and reluctant, now there is opportunity to go after business. We’re very optimistic.’
For Wellington, day one at AIME was the most profitable in seven years in terms of genuine, large, conference activity, says Wellington Convention Bureau’s Martin Boland. ‘Business we’ve discussed has included medical and technology industries looking for 1000 plus conferences’. We’ve had people seek us out, they’ve done their research on Wellington and they’ve come to suss us out.’ Wellington was represented at this year’s AIME by just the bureau and Wellington Convention Centre, with Te Papa and other venues staying away. However Boland said this had worked well. ‘This is a very expensive show and us being here will have flow onto other Wellington suppliers.’
Christchurch and Canterbury Marketing had also noticed an upbeat mood, said Leonie Ashford. ‘This time last year it was a real softly softly approach, with the people we are talking to now we feel it’s really going to happen, there is certainty now. It’s looking very positive for the next four years and more, there is a lot of interest post 2011.’
Having a trans-Tasman service has made all the difference for Rotorua, according to Brett Jeffery of Events & Venues Rotorua, with Air New Zealand now flying Sydney/Rotorua twice weekly. ‘It’s going great. With the Australian flights the Australian enquiries have taken off as they realise Rotorua is a serious market.’ Ngahihi o te ra Bidois, supporting Jeffery and promoting his own speaker’s profile, said there was definitely more interest in Rotorua.
‘Having those flights has made all the difference, we’re getting enquiries with good lead times, to 2011 and 2012, for events from 170 people to 1000.’
From a buyer’s perspective, Conference Brokers’ Neil Maitland was happy. ‘I’ve had a lot of success finding smaller high quality lodges and venues with a difference, which is what I’m trying to put together for incentives groups. Also, making contact with other locations, throughout the Pacific, Ireland, India and other places I’m sure will be helpful at some future stage. The product at AIME is great, making contact with fellow PCOs is helpful, and everything that surrounds the show is high quality.’
Cook Island Tourism’s Chris Ingram says AIME was a huge investment for smaller Cook Island suppliers but there were good rewards for those who did get business.
‘Our operators are happy with very full appointment schedules. Certainly this next year is going to be a challenge for every destination however talk has been very positive, I guess the proof is in the pudding.’ Ingram says the cyclone damaged Aitutaki was well on the road to recovery. ‘The cyclone hasn’t affected us too adversely. I think we managed it well, we kept the trade and travel media well informed about progress on individual properties and we’ve learned we need to keep that information up to date.’
A total of 800 exhibitor stands, with 195 new exhibitors, and more than 500 hosted buyers attended AIME 2010, at the Melbourne Exhibition and Convention Centre.
The Heritage team spotted at the AIME opening party at The Goods Shed South (from left) Susan Gibson, Shelley Eastwood, Toni Stockham
[news
Lead times shrink
even more
The continuing trend towards short lead decisions, even for comparatively major events, is continuing as organisations keep a tight rein on budgets.
Barry Quayle, chief executive of Mystery Creek Events Centre in Hamilton, says event planning is being condensed – not just by 10 to 20% but sometimes 50%. Quayle, who is also president of the Exhibition and Event Association of Australasia’s (EEAA) New Zealand chapter, says the trend is evident not just with expos and conferences but also gala dinners, smaller meetings and other functions.
‘We’ve already had two conferences this year (by late February) that we didn’t have on our books at the end of last year. The trend is for late commitment, even organisers of events which need to be advertised are waiting until the last month or even fortnight before they go to market. That brings problems for venues and suppliers getting a fix on numbers.’
Quayle says that organisers see an opportunity to trim costs by shortening planning and preparation time and having staff involved with these events for a reduced period.
‘That’s fine if you don’t have hiccups, but there is definitely potential for more difficulties.’
Rachel Leitch, business development manager Holiday Inn Auckland Airport, says the hotel has noticed shorter lead times over the last 10 to 12 months. In early March, the property had a meeting of 40 people with one day’s notice from enquiry to it happening and on a recent Friday there was an enquiry for a 20 delegate meeting which was held on the following Monday.
‘It is not unusual for us to have only two or three days notice for medium sized meetings. Our team is well practised at quick turn-arounds.’
Bring it on,
says Melbourne boss
Sandra Chipchase, chief executive of Melbourne Convention + Visitors Bureau says she has no problem at all with short lead times.
‘If you’ve got some of that business, call me.’
Chipchase says a number of association conferences have made late changes because of terrorism fears, asking Australia to put quotes together as an alternative. More commonly, however, short lead business has been generated when corporates have postponed their meetings, then decided at late notice to bring them forward again.
‘When it comes to incentives there is a need to start rewarding staff again. Everyone is saying there will be considerable staff turnover (as the economy improves) and in Asia there are already people asking for quick turnarounds on incentive programmes. It is a problem we like.’
Marque in Christchurch
Christchurch’s newest hotel opened its doors to guests for the first time on Thursday March 18.
The Marque Hotel Christchurch is in the heart of the central business district and occupies 15 floors of the tallest building in the South Island.
The first of The Marque Hotels brand in New Zealand, the hotel has 171 guest rooms and suites, a bar and restaurant. It also contains two conference rooms, which can be used for events for up to 50 people.
‘The Marque Hotel Christchurch is a contemporary, vibrant and stylish business hotel, where guests will receive hassle-free service and value for money,’ the hotel’s general manager Brad Watts says.
Free wireless internet is available in all the public areas and in the Biz business centre. Every room has easy-to-use free high-speed broadband access for up to a specified limit, iPod docking stations as well as a desk and a comfortable ergonomic chair. Laptop-sized room safes are also provided.
The hotel offers guests the option of a virtual concierge service, a 32” LCD touch screen in the lobby where guests can search for local attractions, shopping, transport and entertainment. It’s interactive and allows guests to book online with instantaneous confirmation.
The Marque Hotel Christchurch has a tram stop right at its doorstep and is just a minute’s walk from Cathedral Square, making it perfect for business travellers.
Its distinctly styled restaurant, called Fresh, showcases fresh seasonal produce. Executive chef Adrian Lowrey designed the menu to complement New Zealand’s quality produce and wine. The show kitchen style of the restaurant means guests can watch their meals being prepared by the hotel’s team of experienced chefs.
Wet, the hotel’s ground-floor hip bar, offers a selection of international beers, wine, spirits and non-alcoholic beverages as well as an innovative snacks menu.
Careful attention has been paid to mitigating the impact of the hotel on its environment. The facade is completely double-glazed throughout and high-grade insulation has been used to reduce the energy costs during the life of the building. The latest energy saving systems have also been incorporated wherever possible as part of property manager Ernest Duval’s commitment to reducing the environmental footprint of the building.
The lobby is contemporary, functional and welcoming with a stunning fireplace that immediately draws the eye and beckons people in.
‘A lot of planning has gone into the interiors because we want to make sure our guests are comfortable, but also that our business travellers have access to everything they might need during their stay’, Watts says.
The Marque Hotel Christchurch is operated by the Rendezvous Hospitality Group (RHG), which is based in Singapore.
The Marque Hotel, Christchurch
Vidcom provides range
of solutions
Vidcom is a specialist in the audio visual field, placing an emphasis on the service provided to clients.
‘We always consult with our clients to establish their needs, providing various options and solutions for audio visual equipment for meetings, conferences and staging events,’ says Wayne Martin, general manager of Vidcom New Zealand Ltd.
Originally established in 1999, Vidcom operates from four branches located in Auckland, Hamilton, Wellington and Christchurch. This gives the company an excellent base to provide audio-visual services in the main centres of New Zealand and nationwide for major events.
‘This has been a deciding factor in many leading companies choosing Vidcom to be their AV partner when putting on roadshows,’ Martin says.
Vidcom offers a full range of AV related services from basic laptop and projector rentals, right through to managing full scale launches and events utilising the latest technology.
‘Keeping up with the latest trends and assisting many companies reduce their carbon footprint, Vidcom also offers video-conferencing services both in their own bureaux and on-site at the client’s premises or conference location if required. Many companies are also taking advantage of the long term rental options for audio visual products to conserve their capital expenditure and keep up to date with advances in technology.’
A team of up to 40 operators from Lake Taupo, Ruapehu and Hawke’s Bay and their respective regional tourism offices (RTOs) will visit Auckland (March 31) and Wellington (May 5) to update conference organisers on the latest product development and options in their areas.
‘We welcome trade from all sectors of the industry, whether they be conference organisers, event planners or inbound agents,’ says organiser Di Christie from Destination Lake Taupo.
‘The eXplore event is a one stop shop for the trade to gather the latest product information and engage directly with tourism operators.’
The format allows for the trade to visit each stand at leisure without the constrictions of set appointment times. ‘We’ve found this format works well and it means that trade with specific interests can spend a little more time with some operators,’ adds Chirstie.
Meeting planners and the trade can register online at http://www.laketauponz.com//tradeshow-register
Inflatable Skyview balloons offer branding and staging solutions for marketers and event organisers. The product was launched and profiled to the Auckland market during a function at Sale St in February.
Even a small Skyview delivers 20 square metres of branding and content around 360 degrees.
Andre Dromgool of Baton, which sells, rents and leases the balloons, says many companies have shown interest in using Skyview orbs during next year’s Rugby World Cup.
South Taranaki’s new sports, events and recreation complex, the TSB Hub, was officially opened this month.
The modern $20 million facility, based in Hawera, offers spectacular views of Mt Taranaki and caters for a wide range of sporting, function and event occasions. With two lounges, three fully equipped commercial kitchens (with on-site caterer), a café, fitness centre, two bars, a small bore rifle range, three indoor courts, ample car parking and a function room which can comfortably accommodate 400 seated dinner guests, the TSB Hub is the best equipped and most affordable centre of its kind in the Taranaki region. The two court indoor stadium also doubles as an 800-seat banquet venue or 2,000-person entertainment venue should more space be required. Centrally located and within close walking distance to Hawera’s Aquatic Centre, town park and motels, the TSB Hub really is a venue like no other.
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