While there are built-in challenges between SMERF groups (where attendees frequently pay their own way) and conference centers (which typically have stricter attrition policies), economic factors have conspired to bring the two together in a big way.
"I absolutely believe conference centers have looked to work more with SMERF groups in the recent economic downturn," says Eric Whitson, director of sales and marketing for The National Conference Center, in Leesburg, Va. "Most open-market conference centers are driven by corporate meetings and training, both of which have seen a sharp drop in demand since 2008.
"For The National Conference Center, SMERF has always been part of our focus," he continues. "Also, for us, seasonality is more about weekends and holidays. During those down times, we really target the social and religious markets where we can provide them with the best value."
Regarding the future of SMERF in relation to conference center events, Whitson is optimistic that the two can be a strong fit.
"For most market segments, including SMERF, conference centers are often misunderstood," he says. "But any market looking for a dedicated environment for the group, where the planning is easy, can find a great solution in the conference center world."
At the International Association of Conference Centers (IACC), Executive Vice President Tom Bolman, CAE, shared some insights he's heard from his organization's members.
"Even before the financial meltdown, conference centers began looking at the SMERF market to fill weekends and valley periods," Bolman says, adding that while the limited capacity of many conference centers may make huge gatherings impossible, the unique environments of conference centers appeals greatly to smaller and medium-sized SMERF events.
Bolman also says that with more than a third of IACC's member conference centers being campus-based, the educational market remains a huge part of their business.
"And because colleges and universities tend to understand the conference center concept, they also book meetings at commercial conference centers," he says. "This is clearly the most active segment of the SMERF market for rooms and meeting space at conference centers."
In addition to the attrition management challenges, Bolman says that the CMP (complete meeting package), which bundles room rates in with meals and other meeting components, can be another negotiating obstacle between SMERF groups and conference centers, but is growing less so.
"Conference centers have become adept at customizing the CMP for individual groups and, in some cases, even offering a la carte pricing in order to appeal to a particular group," he explains. "Overall, both sides often need to compromise in order to create a win-win piece of business for a conference center."
