Following are responses to some of the outstanding questions from Meetings Focus’ last international webinar: International Meetings: Preparation Is Key. Thanks to webinar presenter Charles Chan Massey for answering the following queries:
- Are there any websites that have “quick hit” things to let people know about subjects such as currency, cultural considerations, etc., so we don’t have to reinvent the wheel?
For currency, I think the best is http://www.oanda.com. They update the exchange rates in real time and their conversion figures are generally relatively accurate. As for cultural considerations, here's the link to the Lewis Model (which I referenced in my slides): http://www.crossculture.com/services/cross-culture. This link will also allow you (and your attendees) to sign up for a trial version of the Culture Active tool: https://secure.cultureactive.com/index.lasso.
- Can you please repeat your advice on credit card payment offshore?
Generally, credit payments are subject to a 3 percent service charge from your provider, and in many cases, even hotels will resist taking credit cards for the master account and rather require a wire transfer up front for full payment of the master account. Venues and other vendors are also resistant to accepting credit cards, and when they do they often also charge a service charge ranging from 3 percent to 5 percent.
- We are holding an international meeting in Japan next year and we are used to handling our own housing but have been told by the Japanese visitors bureau that Japanese hotels are not really open to doing business with westerners directly. Have you had this experience?
I haven't booked a meeting in Japan myself but have heard this before. It's probably a good idea to consider booking with a major chain and sending the lead out through your hotel Global Sales contact, or working through the bureau to find out who they would recommend for handing your housing. Japan is probably one of the most "foreign" foreign destinations and it probably would be easier to have a third party to serve as the "go between" between you and a hotel, if you choose to go with a Japanese chain or independent property.
- How much flexibility do you find when negotiating hotel contract terms with international venues?
The answer here is an "it depends.” To an extent, I've found that working through my GSO with major chains I have had more luck negotiating terms than with independent properties or venues; that said, even with the major chains, there are many items that we are normally able to negotiate in North America that are very "black and white" in offshore contracts. My rule of thumb is ask; all they can tell you is "no.”
- For buy-in or optional activities, how do you recommend collecting payment from the attendees? In regards to exchange rate variations, how do you cover that variance?
First, I try to see if my vendors will negotiate in guaranteed U.S. dollar rates. If they won’t, you can use http://www.oanda.com to get a 12-month comparison of exchange rates and build your fees from there. I generally build my pricing so that there's a 5 percent buffer to cover any exchange rate variances.
- What are the concerns with sending promotional merchandise as part of incentive trip give-aways?
My general rule is to hand-carry; otherwise, make sure you work with a customs broker in the country you are going to. Be sure to start the dialogue BEFORE ordering your merchandise--to expedite getting everything through customs.
- What are some very basic questions you should ask attendees at the beginning of the planning process?
I know this sounds silly, but ask them about their passport: Do they have one? How long until it expires? etc. Also, ask them if they have ever travelled outside the U.S., Canada, Mexico and/or the Caribbean before. That'll give you an idea about the basic demographics of your group. Also, perhaps some basic questions could include ones such as, When travelling internationally do you prefer to experience the local culture or are you more comfortable with experiencing things "just like at home?" That'll help you determine what kind of hotel, off-site venues and activities to plan.
- What are some common things to look out for on contracts?
Attrition allowances. In many, if not most, international contracts for hotels and venues it may not be mentioned, but that doesn't mean it doesn't exist. If you say you're bringing them 200 people, 600 room nights, that's what they're expecting and what they'll hold you to. Also, make sure to look for clauses that discuss payment terms. Are you going to have to pay 100 percent up front? Will you be able to use your credit card? Things like that.
- How do I go about finding a good DMC? Are there references I can check?
The best source is ADME (The Association of Destination Management Executives). They're similar to "an MPI of DMCs" and are membership based, so they can offer you non-biased referrals to member DMC's in other countries. There's also The DMC Network: www.dmcnetwork.com. Although they're primarily North American-focused, many of their individual members have relationships with DMCs outside of North America.
- Do you go through customs saying you are traveling for business or leisure?
I generally say "I'm attending a conference" and instruct my delegates to do the same. I find I'm more likely to get "20 questions" going into other North American countries than when I'm entering Europe or many Asian countries, where I generally get no questions at all. It always is a good idea to have all required customs and immigration paperwork completed before you approach the first person you see at immigration. That lets them know you're prepared.