TSMI's Trade Show Marketing Report

Is Chicago Still Your Kind of Town?

Somehow, in the midst of 100-hour weeks, I missed the announcement that National Manufacturing Week was moving from McCormick to Rosemont.

The reason is plain and simple:  cost (pdf - check out the exhibitor quotes at the end).

One of my own clients was planning on moving their largest show to Chicago because they've been venue bound in Orlando for the past two years.  But they couldn't get the concessions necessary to make the move work for exhibitors.  So they're headed back to Orlando.  Better to be venue bound than to have customers rioting over huge labor cost increases.

NMW is not an insignificant piece of business.  I'm actually surprised it can fit in Rosemont, since its two major events, National Design and National Plant, alone comprise 400,000 nsf and Rosemont is only 840,000 gross.

Will other shows follow NMW's example? 

I'd guess some might, if they find dates.  But let's face it, Rosemont isn't Chicago.  Sure, there's a Morton's nearby.  But half the reason for attendees to go to Chicago is to enjoy Chicago.  So whether attendees are really going to be interested in visiting Rosemont is a bit of a gamble. 

Granted, something like 60%-70% of NMW attendees are within a couple hours drive.  But will those other 30%-40% who aren't still find the show as compelling when it's located in a vanilla suburb?  What's more important to attendees, being 5 minutes from the airport or actually enjoying themselves at night? 

And if indeed some portion of those 30%-40% stay away, will exhibitors be happy trading off cost savings for fewer non-Chicagoland leads?

If you're thinking of bolting McCormick for another venue or know any shows that are, let's hear from you.

Dallas Using Novel Approach to Attract Visitors: Laser Tag

Next time you're in Dallas for a show, take a break at B.B. Owen Park in The Colony.  Dallas will be among first cities in the country to offer laser tag in a public park space.

There's nothing like fresh air, exercise and blasting away and your colleagues to get ready for another day on the show floor.

JD Events Moves ShowBiz Expo from LA Convention Center to an Airplane Hangar

A growing number of organizers have been looking for non-traditional venues for their events.  But typically these venues have been museums and galleries.  And usually only for smaller events.

But an airplane hangar?  In Santa Monica?  For a show that historcally draws 300 exhibitors and 18000 attendees?

Not so dumb.  The Barker Hangar isn't just any hangar.  It has been part of the set for numerous movies, commercials and music videos.  It has also hosted numerous events, including The Billboard Music Awards, The MTV Movie Awards, The American Television Awards, Nickelodeon's Annual Kids Choice Awards, and The People's Choice Awards.

And it might be this Hollywood connection that Joel Davis was considering when he moved ShowBiz Expo from the amenity-rich Los Angeles Convention Center to Barker Hangar.

It appears to be an act of inspriation, not desperation.  And Joel has been charmed of late, with the continued success of AD:TECH.

But, ShowBiz Expo is on its third owner in as many years, having gone from Reed (Daily Variety) to Mindshare Ventures to JD Events.  The show was hammered by the internet swoon, losing as much as 40% of its exhibitors and space between 1999 and 2000.  So it's probably going to take more than an airplane hangar to get back to ShowBiz Expo's halcyon days.

But we like the move.  And with US Airways, Delta, ATA and United all in dump, there might be a glut of unused airplane hangars coming on line faster than you can say, "Howard Hughes.

Sheldon Adelson Hits Another Jackpot

Sales of stock for Sheldon Adelson's Las Vegas Sands Corp. went on sale this morning at about $5.00 above the initial asking price and just kept going.

By end of day, shares increased 65%.

The stock sale raised about $690,500,000.  Previous reports noted Adelson controls about 88% of the stock, or about $607 million.

Admit it, you're jealous.

Las Vegas Sands Due to Hit NYSE

Las Vegas is all about luck.  And we should all be as lucky as Sheldon Adelson, who parlayed a declining Comdex into ownership of the Sands Expo and Venetian hotel, and who is now poised to become even richer with the upcoming listing of his company's stock on the NYSE this week.

If I'm reading this article from the Mercury News (subscription) correctly, Adelson and various trusts he controls will hold onto 88% of the stock. 

Still, the stock offering is expect to raise $712 million, which will be invested into his new Palazzo hotel/casino in Vegas and up to six new properties in Macau, the Sin City of the Far East ("Whatever happens in Macau, stays in Macau.  But you'll want to do it again a half-hour later.")

We're not qualified to offer investment advice, but Adelson's whole career seems to have defied odds, so smart money would likely bet with him.  Besides, luck is already on his side again.  The initial offer price increased $4/share just last week.

China Expo Forum. Since You'll Have to Do Business There Eventually. Especially You Tech Shows.

Executives from IAEM, SISO, Messe Frankfurt, Feira Milano, VNU Europe, Reed and other international organizers are headed to CEFCO. 

From the IAEM News & Industry Report:

CEFCO Designed as a Platform for Industry Exchange
The focus of the China Expo Forum for International Cooperation (CEFCO), 11-13 January 2005, will be to build a platform for exchange and cooperation between the Chinese and international exhibition industries. The platform is intended to develop the exhibition economy within the legal system, specialization, internationalization, and strategic partnerships. Attendees will be able to exchange ideas, share wisdom, present corporate images, and discuss cooperation. Attendees include members of Chinese and international exhibition associations, chambers of commerce, trade promotion organizations, exhibition service providers, and governmental departments. The number of visitors is expected to reach 500. The event will be held at the China World Hotel in Beijing, China.

A team from CEFCO is coordinating a matchmaking effort to bring together Chinese and foreign enterprises that have mutual interests to discuss the industry at CEFCO. Approximately 1,500 questionnaires have been sent to those in the Chinese exhibition industry to learn in what ways they are interested in cooperating with their foreign counterparts on capitals, projects, and services. The feed back is immediately publicized and updated daily in Chinese and English on the CEFCO Web site, http://cefco.ccpit.org.

We seem to be talking a lot about China lately.  With good reason, since the country is positioning itself to dominate just about everything.  Including the US economy.

But that won't happen for awhile.  In the short term, the Chinese only plan on taking over standards for wireless technology, DVDs and some other stuff your kids use everyday.

Myrtle Beach CVBs Kiss and Make Up

This is sort of irrelevant, but I just happen to like Myrtle Beach and am somewhat surprised they don't do more convention business in niches with attendees who love to golf.

So I guess healing this rift this is good news for Myrtle Beach.  But I admit, I had no idea there even WAS a North Myrtle Beach CVB.  Did you? 

Seems the joint effort has identified two hot markets:  Canada (which makes sense since Canadians will golf whenever it's above 45 degrees and the Canadian Pro Golf Tour plays at the Barefoot Resort) and brides.

Brides?

My wife and I golfed three times during our honeymoon in Hawai'i a few years back.  But if you didn't golf, you still had Hawai'i.  Myrtle Beach is a different animal.  It's the Disney World of golf.  You don't go there for anything else.

Those brides better be bringing their sticks.

TSNN lists six shows in 2005 in Myrtle Beach.  It never ceases to amaze me that there are still new market niches to be conquered.  Small cemetery management?

They must be golfers.

All-Suite Hotels. A Convention Center Alternative?

On the surface, this looks like just another announcement about more Embassy Suite hotels being built.

But maybe there's more to this. I'd like to think somebody has asked this question before, but if they did I missed it: "Why not just book an entire Embassy Suites hotel for your next trade show and skip the Convention Center?"

Seems to me this makes sense, especially for smaller regional shows where most of the booths are 10x20 or less.

Advantages to organizers:
- No attrition concerns. Whatever rooms exhibitors don't take, attendees will. You have a sellout every time.
- No contractors, except for registration and some easel signs. Exhibitors simply cart their stuff up to their room. No muss, no fuss.
- By booking the whole hotel, you essentially 'own it'. Charge whatever makes sense. The trade show model is still operational - you're delivering attendees to meet exhibitors, so there's value in charging $1,500 or more for a $129 hotel room. But look at the expenses you don't have - floor plans, decorators, operations staff. Conceivably, the hotel could even collect your money for you.

Advantages to exhibitors:
- Comfort. Exhibitors are in their own room with plenty of space for both a display and a conversation area. They can bring in their own food and drink at reasonable prices from the grocery down the street. And there's always a bathroom five feet away.
- No unions to pay or argue with. Exhibitors set up their displays right in their 'living room' areas. OK, maybe they need a standardized easel signs outside the door. But that's about it.
- More privacy. The guys from your competitor's booth aren't watching everything you do. Unless they're going to sit on your couch all day.
- Lower cost, assuming the organizer passes on its savings to the exhibitor.

Advantages to attendees:
- Comfort. Yes, there's still walking involved. But the carpet is better. And every room has a couch. And a bathroom.
- Costs. Most Embassy Suites are near other mid-level hotels, all with free parking. So in most cases you can park for free and walk over to the 'show hotel'. And most of these properties are less expensive than the average convention hotel. Plus, if enough exhibitors are offering refreshments, no need to wait in line for that $7 concession hot dog. You can just pick at snacks all day long.

In most Embassy Suite properties you'll still have meeting space for some seminars and you can use ballroom or reception space for larger exhibits.

And if memory serves me right, Embassy Suites still does that happy hour thing between 5:00-7:00pm, so you have a built-in reception every night.

What am I missing? And why isn't anyone doing this?

Anatomy of a Small Convention Center

Interesting article on the new Tacoma Convention Center, especially as pertains to funding, costs and meeting market demand.

Sounds great for Tacoma in terms of filling a need for a booming local and regional market. They say they're also expecting some national meetings, but I wouldn't count on that. It's a real pain getting to SeaTac from the Northeast.

In the article,Corbin Ball is quoted: "I've seen cities completely transformed by convention centers - San Diego, Baltimore, San Jose." That's true for those cities, although San Jose, one of the hardest facilities to book in the late 90s, is currently having problems due to fewer tech conventions.

A later quote from Ball includes Boston on that list. I'm wondering if Corbin has been to the new Boston facility. My personal opinion is that the Boston convention center doesn't meet Ball's "provide an identity" to the region philosophy. Boston is a box in a part of town (South Boston) not served by the T (although buses will start service soon), not within walking distance of any shopping or historical sites, and currently serviced by one hotel which eliminates 20% of potential guests as it is 100% non-smoking guest rooms.

TSW's Hughes: "We'll See a Major City Pull Out of the Business"

Thanks to Sue P. for pointing out this link about the controversial expansion plans for New Orleans' Morial Convention Center.

Michael Hughes is sticking his neck out with this prediction (at bottom of article), much to his credit. I don't know if he's right, but our industry could use a well-placed contrarian. And Hughes certainly has a voice.

I have a client with a show that's half a million nsf. There are only six cities that could host it. New Orleans is one of those. But when the show was last held in New Orleans, attendance was down. The trouble with the Big Easy is that for shows that benefit from a local attendance - which is most manufacturing and distribution oriented events - there is very little local attendance from which to draw. You could say the same about Vegas, but that's Vegas.

The five cities New Orleans competes against for our show and others of similar size are: Vegas, Chicago, Orlando, Atlanta and Dallas. And when you get down to it, New Orleans is really only competing against Atlanta and Dallas as each of the other three cities have other attributes in their favor: Vegas (gambling, nightlife, golf), Chicago (huge advantage in regional attendance base), Orlando (family-friendly, tons of nearby attractions, golf) against which the other three cannot effectively compete.

I imagine it's a difficult call for the locals who have to decide on expansion. At the same time, I'm surprised they're considering a new football stadium. The Superdome will only be 30 years old next year. Razing that structure is like destroying your home once the mortgage is paid off. It seems frivolous. So if the choice is a new stadium or an expansion, maybe a third choice is needed, like a hotel at the OTHER end of the Morial behemoth.