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We’re taking a slightly new tack on this month’s Take 10, in that presenter Bonnie Wallsh tapped some top meetings industry professionals to help answer some of your questions.
As mentioned during the March 31 broadcast, we’ve included Wallsh’s listening exercise at the end of this Take 10 after the questions and answers. Enjoy!–Ed.
Grateful acknowledgements are given to the following people who provided responses to the questions posed during the March 31 webinar, Leveraging Your CVB Relationship—Bonnie Wallsh
Meghan Brennan
Director, Navy Pier Accounts, Chicago Convention & Tourism Bureau
Mike Butts
Executive Director, Visit Charlotte
Barry Hoehn
Sales Manager, Birmingham CVB
Sandy A. Mukitarian
Director of Sales - Southeast Palm Beach County Convention & Visitors Bureau
Michael Williamson
Director, Worldwide Accounts, Hyatt Hotels
Ann Garvey
National Sales Manager, Visit Baltimore
1. I already have my conferences planned for 2010 and 2011. Is it still worth it to get the CB involved?
Meghan Brennan: Yes, because they may still be willing to extend their free services to you if they are able to obtain your information and possibly follow up with you regarding future years.
Michael Williamson: What better time than now to start pre-planning? Such things as getting assistance to place banners on street lamps, get information on activities taking place over the dates of the conference, getting recommendations for registration help, transportation, etc.
Barry Hoehn: Yes it is, for numerous reasons. We know the city we represent and know how to help you navigate through various aspects of your meeting. The CVBs are there to help you.
Mike Butts: It depends on what you’re looking for and what the CVB is capable of doing. Always ask. Even if they can’t help you they can probably save you some time by sending you in the right direction. So absolutely contact them.
Sandy A. Mukitarian: The CVB has to be involved from the beginning to justify our ROI. But, we will always try to assist a group with any questions on the destination as the hotel does not know the destination as the CVB does for offsite events, tours, etc.
2. How do I know which CVB to contact? Our conference is being held at the National Harbor in Maryland and I can't figure out who I should contact: D.C., Maryland? Any ideas?
Ann Garvey: If you are booked in Maryland, the obvious would be to contact the Maryland CVB. Some destinations may only have one CVB that covers the entire state. If the contact calls the DC CVB they will most likely refer them to the Maryland one, as the National Harbor is a member of the Maryland CVB.
3. We usually have a third party book our annual meeting. We've found that their relationships with the resort industry are very helpful, especially with negotiating attrition. Can a CVB help us with these same concerns?
Meghan Brennan: A CVB cannot negotiate contracts, so that is something that would be left up to the planner. CVBs can express the group’s interests/requirements to hotels/resorts and stress key issues. However, it is their position to remain non-biased.
Barry Hoehn: CVBs can help you through various aspects of your contract negotiations. You need to advise your CVB representative what you will and will not accept in the terms of the contract. With that knowledge we can advise the hotels. However, it is ultimately up to the hotel through your negotiation process what they will/will not accept.
Mike Butts: A CVB can help you with many of those same things, although they usually do not do your negotiating for you. They can be your advocate, but in the end only you can decide what is acceptable.
Meghan Brennan: CVBs do not negotiate on the client’s behalf; a CVB is a resource for the client as a one-stop shop to find the appropriate hotel, DMC, attractions and venues for the group’s needs.
4. Could you further address the best way to use both CVBs and national sales? Generally, how are each "compensated," or have sales goals set?
Meghan Brennan: Simply copy your CVB rep on an RFP that you are forwarding through national sales. If you do not want to explore hotels outside of the NSO’s properties, then the CVB will NOT distribute it further. CVBs recognize that NSOs should get credit for the lead so they in no way are taking away from them. Copying your CVB does NOT take away anything from that rep. CVBs are typically compensated for confirmed bookings, but they just need to be working with them to provide sales or services prior to the actual confirmation at a venue. Long answer, but the fact of the matter is, we have members we need to put our customers in front of, so regardless of who is heading up the effort, it is always smart to get the CVB involved so that they, too, can demonstrate their value.
Michael Williamson: CVBs typically, and I can't respond for all because they all operate differently, are judged on how much business is placed into their specific territory. Going around the CVB does not help them with funding, etc., plus they are only a benefit. I always recommend copying your NSO on any RFP you send, since they are the contacts that follow you from city to city and know the background of your organization, etc. There is no kickback in NSO as they have goals and are paid by the hotel company. CVBs all operate differently depending on their funding. If limited funding, they may require a hotel to pay a percentage of room revenue, but all is negotiated and should be revealed up front, not after the meeting. Get it in writing from the CVB.
Barry Hoehn: CVBs: The Greater Birmingham CVB is compensated through the “bed tax” portion of the sales tax on rooms. Whether you use our FREE services or not, we still receive the “bed tax.” I cannot speak on the subject of how NSOs are funded. Generally, the hotel pays fees to the hotel company to compensate them. Both parties have sales goals. From the CVB side we have “lead goals” and “room night goals” established for each sales person.
Mike Butts: The CVB has a thorough knowledge of the city and the various hotel options in a city. They can send a lead to only those hotels that meet your criteria and save you a lot of tie in acquiring various options to consider. They have the latest information regarding transportation options, unique venues, service providers and other amenities that are important to make your meeting successful. The national sales offices are best at hotel information for one brand. Both are generally compensated by the amount of business booked. And both usually have goals that are related to how much business is booked.
Sandy A. Mukitarian: Both generally have goals to meet, but you may have built a relationship with your national sales [contact], as they are working for you on numerous destinations for all programs. The best solutions is to keep both national sales and the CVB copied at the beginning of your research, as both will be able to assist the program booking.
5. Can you also mention that third parties also partner with CVBs, and that is not considered a conflict?
Barry Hoehn: Many CVBs have third parties as members. We work with numerous third-party partners, and it is not considered a conflict. They utilize us as we know the city better and can assist them in narrowing down the selection of hotels that can accommodate their meeting.
6. Once the lead reaches the hotels, the NSOs are locked out from representing us as the client. Can you explain why this is?
Barry Hoehn: The hotel takes over from the point of the lead going to them from the NSO. They shouldn’t be “locked out” from representing you. Any seasoned veteran, if they have developed a relationship with the client, should be able to help mediate with the hotel on your behalf. On the other hand, CVBs are unbiased and can represent you in all aspects of your meeting. Many of our hotels, once they receive a lead from an NSO, come to us for our assistance.
Sandy A. Mukitarian: That is correct, and it is the same with the CVB; if the client goes directly to the hotel we basically cannot get involved once it is negotiated and booked.
7. If the CVB is membership-driven, what's the best way to contact those that are not members, if the CVB doesn't offer what you need?
Barry Hoehn: The local chamber of commerce. All CVBs have resources to vendors that we utilize to help make your meeting a success.
Mike Butts: Just because a CVB has a membership program does not mean they are restricted to just members. We will go to which ever source can best meet the needs of the meeting planner.
Sandy A. Mukitarian: Yes, our membership always comes first, but we will also offer what will fit your group needs, and if that means offering a non-member, we will do that to help the client.
8. If I use a national sales manager, then I shouldn't send it to the CVB as well?
Michael Williamson: If it's a one hotel meeting and you pretty much know where you want to go, then you don't need the CVB to assist in the sourcing of your meeting. Remember, some CVBs are mandated to send RFPs to every hotel member. You want to verify this before working with them.
Barry Hoehn: You should also send it to the CVB so we can get your other competitive bids from other flagged and independent hotels. NSOs only represent their chain; CVBs represent all our hotels.
Mike Butts: You should definitely send it to the CVB as well unless you are stuck on just using one brand. But if you do, you’ll miss getting the assistance for all the other services needed to make a meeting successful.
Sandy A. Mukitarian: You most certainly send it to both at the same time. If the CVB is copied from the beginning we can still offer our COMPLIMENTARY services.
9. What are the big differences between CVBs that are member driven and those that are not?
Michael Williamson: Advertising dollars, sponsorship opportunities. Some clients like the CVB for the following year’s meeting to attend the year before, but with no funding, they can't participate, and it goes on from there.
Barry Hoehn: CVBs that are funded by the “bed tax” can reach out to more vendors to assist you. CVBs that are member-driven can only reach out to their members. This may limit your options.
Mike Butts: Those that are member-driven have a built-in group of partners that are usually better educated and committed to working with the CVB to book business. This is first due to a required investment made by the member that shows their commitment to the CVB efforts.
Sandy A. Mukitarian: There is no big difference--it varies in each destination. For example, my CVB is a member and bed tax organization. Some just are member-driven and some just work for bed tax.
10. Do CVBs honor requests from independent planners who plan individual events, i.e., family reunions, milestone birthday parties, etc?
Meghan Brennan: Yes, and because the Chicago CVB gets so many of them, we have developed a quick and easy online system called EZ Meetings to help the planner and hotels get in touch with each other faster for 50 or less sleeping rooms on peak night.
Michael Williamson: Some CVBs have staff to handle these requests, so you should inquire or ask them for a recommendation.
Barry Hoehn: Yes they do. The Greater Birmingham CVB has a Tourism Sales Department that not only specializes in tours, but also family reunions, milestone birthday parties, etc. Some CVBs may not have the luxury of having a staff that particularly specializes in convention and meeting sales, tourism sales and sports sales.
Sandy A. Mukitarian: Absolutely. Everything, as that is revenue into the destination. We do not just look at heads in beds, but also revenue for our attractions and restaurants.
Bonus Questions!
11. Will CVBs take on new events without a history?
Michael Williamson: Of course, every program out there started as a first-time meeting/event at one point.
Ann Garvey: Yes we will. We will be very conservative with your number of guest rooms, number of people in attendance, etc. You as the client should also be very conservative until you have a handle on the event.
Mike Butts: Yes, but know that CVBs will typically be very conservative in their approach. The more information you can provide the CVB about what you’re trying to accomplish, what your experience level is, and what kind of resources are you putting toward the event, then the more they will be able to help you.
Sandy A. Mukitarian: I cannot speak for everybody, but we do--everybody has to start somewhere. People are so confused what CVBs are there for; we are a one-stop resource so the client does not have to call five to six to seven different hotels to get answers to find out if the group will fit it a property. The CVB can find the appropriate properties that will fit the group requirements; we find the appropriate off-site venues and restaurants; we will assist the group when they arrive in the destination with airport arrival and at the registration desk; we provide goodie bags for the group. We know the entire destination, so this allows us to gather all of the information and recommend to the client. The hotels and NSO do not have that knowledge, they only have knowledge of their properties. So this allows only one phone call by the client and they do not have to waste their time in researching a destination they do not know. The key factor here is this is it is a complimentary service from the beginning to the end of the programs operation!
Listening Exercise No. 1
A business person had just turned out the lights in the shop when a man appeared and demanded money. The owner opened the cash register. The contents of the cash register were scooped up and the man sped away. A member of the police force was promptly notified. Questions to ask…
1. A man appeared after the owner had turned off the lights. True, False, or Unanswered in this story?
2. The robber was a man. True, False, or ?
3. The man did not demand money. True, False, or ?
4. The person who opened the cash register was the owner. True, False, or ?
5. The owner scooped up the contents of the cash register and ran away. True, False, or ?
6. Someone opened the cash register. True, False, or ?
7. After the man who had demanded money scooped up the contents of the cash register, he ran away. True, False, or ?
8. While the cash register contained money, the story does not say how much. True, False. or ?
9. The robber demanded money from the owner. True, False, or ?
10. The story concerns a series of events in which only three people are referred to. The owner of the store, a man who demanded the money and a member of the police force. True, False, or ?
Answers:
1. ?
2. True
3. False
4. True
5. ?
6. True
7. ?
8. True
9. ?
10. ?
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