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www.iapco.org Interacting with the PCO for mutual advantage “knowing each other better to understand each other better” Philippe Fournier, IAPCO Board Member Managing Director, MCI France1 “Interacting with the PCO forCongress mutual advantage” Director, MCI www.iapco.org Content What are our congresses ? IAPCO The congress economical impact Working together for better interaction 2 “Interacting with the PCO for mutual advantage” www.iapco.org Flash back 25 years ago, CC’s bidding for events Then, CVB’s and PCO’s 25 years ago, 40% less meetings than today… Was a new “industry” Increasing demands and competition since then IAPCO : a brend of quality and professionalism 3 “Interacting with the PCO for mutual advantage” www.iapco.org Who is doing what ? “Client” (who is he ?...) brings the event - the reason for meeting, the topics for discussion, the delivery and the participants The Centre provides the purpose built infrastructure to hold the event The PCO brings the IP, resources and infrastructure to plan and execute the event 4 “Interacting with the PCO for mutual advantage” www.iapco.org A Win-Win Situation Needed All parties involved in our meeting & exhibition industry must make a profit! How can all parties win? By focusing on the client and the best outcome for the event How? - Focus on areas of responsibility - Share knowledge and information - Allocate expenditure to achieve best value 5 “Interacting with the PCO for mutual advantage” www.iapco.org What kind of Meetings do we have ? “Non commercial” events for associations. (Range from small training workshops through to large domestic/regional or international congresses). Conventions for Private Sector. (GA’s, Sales force meetings, Product launches, seminars, etc.) 6 “Interacting with the PCO for mutual advantage” www.iapco.org What is an Association Meeting? A non commercial event with limited budget. Range from small training workshops through to large domestic/regional or international congresses. 50% of them use the services of an “agent”, out of which only 60% are real PCO’s. 7 “Interacting with the PCO for mutual advantage” www.iapco.org What is a Private Sector Meeting? A commercial event with limited budget! Range from small training seminars through to large domestic/regional or international conventions. 60% of them use the services of an “agent”, out of which only 10% are PCO’s. 8 “Interacting with the PCO for mutual advantage” www.iapco.org IAPCO members are mainly dealing with association meetings 89 members and affiliated members (Subsidiary companies, branch offices) 7 Inter-governmental members 4 Honorary members 33 countries represented Brand of quality and professionalism : Annual training seminar Other seminars per region Our journal “PCO” (4 times a year) Specific documents issued by working groups Annual awards : International award, National client award, national supplier award HCA : Healthcare Congress Alliance (with Hcea and Ipcaa) Strong membership criterias Quality control Ethics committee 9 “Interacting with the PCO for mutual advantage” www.iapco.org Associations partnering with IAPCO American Society of Association Executives ASAE Asian Association of Convention & Visitor Bureaux AACVB Association Internationale des Interpretes de Conference AIIC Association Internationale des Palais de Congrès AIPC European Association of Event Centers EVVC European Federation of Conference Towns EFCT Healthcare Convention & Exhibitors Association HCEA International Association of Convention & Visitor Bureaux IACVB International Congress & Convention Association International Pharmaceutical Congress Advisory Association ICCA IPCAA Joint Meetings Industry Council JMIC Meeting Professionals International Professional Convention Management Association Society of Incentive & Travel Executives MPI PCMA SITE 10 Union of International “Interacting with the PCOUIAfor mutual advantage” Associations www.iapco.org Supporters of IAPCO Official Sponsor of IAPCO Annual Seminars Teletech ConferenceCommuni cation Official Air Line for IAPCO Annual Seminars Swiss Air Lines Supporter of IAPCO Annual Seminars Switzerland Convention & Incentive Bureau Supporter of IAPCO Annual Seminars Insurex Expo-Sure 11 “Interacting with the PCO for mutual advantage” www.iapco.org International Confex London Confex Industry Activities of IAPCO Incentive Travel & Conventions Meetings Asia Incentive Business Travel and Meetings Exhibition Industry Meetings Exhibition Incentive Travel & Conventions, Meetings IT&CMA EIBTM IMEX IT&CM CHINA 12 World Travel Mart WTM “Interacting with the PCO for mutual advantage” www.iapco.org IAPCO members are a proof of quality We develop our profession We permanently discuss with “allies” (AIPC, IPCAA, etc.) Therefore, Use IAPCO member for better treatment of our common clients. Help us identify important or new issues arising 13 “Interacting with the PCO for mutual advantage” www.iapco.org What does an IAPCO member do? He is a “risk manager”, a “banker”, a “marketing team”, an “organizer” Often gets a mandate to organize the whole event and therefore acts on behalf of the non-for profit organization. Sets-up the budget, often pre-finance and becomes the client : he takes for himself the role and interest of the client. Knows the whole picture - formulates the management strategy, organize the promotion, marketing and communication. Provides his expertise - the staff, knowledge, technology and brings the “money in, to pay everyone !” Works with the Committees to plan, formulate a program, market, budget and communicate with all participants. The PCO is a kind of “conductor” bearing LOTS of responsibilities. 14 “Interacting with the PCO for mutual advantage” www.iapco.org AN IAPCO PCO IS ALWAYS RELAXED !... AND DOES NOT RISK ANYTHING… ! 15 “Interacting with the PCO for mutual advantage” www.iapco.org Let’s look at an association congress The total spend by all participants THE PIE ANCILLARY EXPENDITURE 50% ECONOMIC IMPACT 20% MEETING BUDGET 30% 16 “Interacting with the PCO for mutual advantage” www.iapco.org But who benefits from it ? The delegates, speakers, sponsors and exhibitors, The owner organisation The host organisation The direct suppliers - PCO, venues, hotels, AV & IT suppliers, printers, Indirect suppliers - hotels, restaurants, attractions, transport - taxis, ferries, trains, airlines, food and beverage industries, souvenir shops, general retail etc 17 “Interacting with the PCO for mutual advantage” www.iapco.org Do not forget 70% of the association meetings have less than 1000 participants But alltogether, the annual revenue of the congress industry (in France for instance) is more than the Olympic games… Most of them have not the first € to start building their « adventure » The PCO is a « risk manager » 18 “Interacting with the PCO for mutual advantage” www.iapco.org Quick look at Congress Budget REVENUES OF A CONGRESS EXHIBITION 30,00% REG FEES 50,00% SPONSOR 20,00% 19 “Interacting with the PCO for mutual advantage” www.iapco.org Sample Expenses of a Congress Budget Exhibition - booth, electricity 14% Venue - rental, F& B 20% Marketing & communication 10% Program 10% Accompanying persons 1% PCO 10% AV 5% Logistics - on site 10% Social events 12% Association payment 5% Legals,banking,insurance 3% 20 “Interacting with the PCO for mutual advantage” www.iapco.org Final results of a Congress Budget… Revenue 100% Expenditure 90% Client Profit 10% Difference between Private sector and Non for profit event… Easy task! 21 “Interacting with the PCO for mutual advantage” www.iapco.org The « congress world »; define which one we are interested in … Local meetings National meetings Regional meetings International meetings World meetings Which one are we interested in ?... 22 “Interacting with the PCO for mutual advantage” www.iapco.org Medical meetings Trade association meetings Professional meetings Continuing education meetings Which one are we interested in ?... 23 “Interacting with the PCO for mutual advantage” www.iapco.org We probably are interested in all of them… So, working together for our mutual advantage is KEY! Let’s get to know each other better! 24 “Interacting with the PCO for mutual advantage” www.iapco.org A team approach at bid stage Together : Create the needs ?... Encourage and support bids to hold meetings -Study the best outcome for the client -by knowing what the competition is doing -by knowing the field and sector involved Provide strategy, define overall client’s expectations, think of lobbying/networking campaign Know the city well and the competition 25 “Interacting with the PCO for mutual advantage” www.iapco.org Start Working together EARLY ! Conducts site inspections together to build up mutual knowledge about clients expectations in order to make best use of venue Issue bid documents together and present the bids together at the preceding event Set-up the “potential possible” budget together in full transparency Let’s build also our community : motivating all parties at the very early stage 26 “Interacting with the PCO for mutual advantage” www.iapco.org Get information from client but do not always trust him ! • Client advises past experiences • Components of meetings • Objectives and targets to achieve • Expectations • Revenue opportunities • Programme content • Last budget, participant numbers • Study carefully the “feasibility” Stop re-inventing the wheel each time! 27 “Interacting with the PCO for mutual advantage” www.iapco.org Planning together the meeting • Provide time, expertise, consultancy & develop strategy : the best way to use the venue • Understand clients concept • Brings money in and the best way to manage the budget • Marketing • Spend the money together ! • Meet regularly • Run the meeting in the best possible way • security • sustainability • achieve the goal, measure the success Let’s build our community! 28 “Interacting with the PCO for mutual advantage” www.iapco.org FUTURE TRENDS Professionalisation of the associations leeds to : Methods of procurement professionals ? Stricter rules for venue choice Competitive budget approach Comparative studies « Total cost » = product ? 29 “Interacting with the PCO for mutual advantage” www.iapco.org Inter acting for mutual advantage CC manages the site PCO manages the budget CC’s manage the hard, PCO’s manage the soft The Heart and the Brain : cannot live without each other … Both CC & PCO are specialists in their own fields and are the client’s contact 30 “Interacting with the PCO for mutual advantage” www.iapco.org Conclusion We need : - Improved communication amongst us all. Exchange more to benefit from the information. - Delivering top quality meetings is no longer enough. Demonstrate together the benefits that the congresses deliver for the associations. 31 “Interacting with the PCO for mutual advantage” www.iapco.org Now that we know each other better, we can only interact in a better way… 32 “Interacting with the PCO for mutual advantage” www.iapco.org PCOSituation – Now and to theVENUE future CLIENT 33 “Interacting with the PCO for mutual advantage” www.iapco.org Your Reference for PCO’s Thank you for your attention! Prepared by : Philippe Fournier, IAPCO Board Member Managing Director, MCI France Congress Director, MCI 34 “Interacting with the PCO for mutual advantage”