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Con Olimpia Ponno

Christian SavelliFederico Toja

Meetings moves US forward 

Incontro con il mercato americano: analisi, tendenze, prospettive per la destinazione Emilia Romagna

Bologna, 21 novembre – Starhotel Excelsior

Sempre quando mi reco in un luogo che non ho mai visitato prima spero che sia il più diverso possibile dai posti che già conosco.

Ritengo che per un viaggiatore sia naturale cercare la varietà e che sia soprattutto il fattore umano a esaltare ai suoi occhi le differenze.

Se gli uomini e i loro modi fossero ovunque gli stessi, non avrebbe neppure senso spostarsi da un luogo all’altro. (Paul Bowles)

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…If people and their manner of living were alike everywhere, there would not be much point in moving from one place to another...” Paul Bowles

Argomenti

• Introduzione al mercato americano e suoi trend a cura di MPI

• Le destinazioni più richieste in Europa e relativi segmenti di mercato

• I processi di acquisto e di risposta: strategie integrate SMM/RFP

• Il posizionamento dell’offerta Italia: testimonianze e contributi

• SWOT Analysis: focus su Italia e Regione Emilia Romagna

• La negoziazione efficace: demo culture active tool

• La competizione territoriale: Economic Impact Study e ritorno sull’investimento

• Suggerimenti per migliorare la percezione del brand Emilia Romagna

• Q&A

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ABOUT MPI

Vision

To be the first choice for professional career development and a prominent voice for the global meeting and event community

Mission

To provide MPI members, chapters and the global meeting and event community with innovative and relevant education, networking opportunities and business exchanges, and to act as a prominent voice for the promotion and growth of the industry

70 Chapters Globally

8 Chapters in Canada45 Chapters in USA2 Chapters in Latin America

13 Chapters in Europe

2 Chapters in Asia

MPI’s global footprintMPI’ Global Chapters

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Planners in more than 50 Countries

USD $23 BILLION BUYING POWER Based on 92.9% of the MPI planner community completed profiles as of Sept 2012

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Introduzione al mercato americano e suoi trend

Europe and Italian Market Profile Destinazioni più richieste, processi d’acquisto

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from US perspective

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How is business14

Business is getting better15

Meeting Type Activity 16

Attendance is also increasing

Attendance has been growing at a faster pace than budgets thus creating a challenging environment for Meeting Planners

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Rising Costs Impact

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Doing More With Less!19

Strategic Meetings Management20

Key SMM Drivers*

81.7% Savings/cost avoidance

59.8% Communication across the organization

56.2% Visibility/transparency

55.6% Improve value of meetings management

54.9% Increase productivity

48.3% Need to simplify processes

48.1% Enhance participant experience

42.2% Demonstrate ROI for meetings spend

39.0% Risk management

37.8% Demonstrate ROO for meetings spend

35.1% Leadership buy-in

32.4% Competitive advantage

30.3% Demand for data

*MPI Research 2013

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What is Your Organization Doing*?

• We use standard operating procedures (SOPs)

• We use preferred supplier agreements

• We use electronic requests for proposals (RFPs)

• We align meeting objectives with our organization’s objectives

• We use centralized procurement

• We use third-party or agency sourcing

*MPI Research 2013

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A More Disciplined Approach To Meetings23

The rise of eRFP

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eRFP Coverage Top Destinations Europe

Destination

# of Properti

es

Room Inventor

y

Sq Ft of Meeting Space

# of Meeting Rooms

United Kingdom

3,571 346,311

6,135,966

29,516

Germany

2,674 299,909

9,531,632

17,187

Spain

1,445 217,357

5,789,870

7,613

Italy 1,992

177,344

3,492,852

8,892

France

1,542 156,469

1,986,246

8,869

Sweden

369

62,074

779,002

3,329

Switzerland

705

61,821

4,313,650

3,682

Greece

296

58,453

1,423,328

1,490

Netherlands

430

54,942

1,511,250

3,389

Turkey

236

46,448

1,100,802

1,659

Portugal

333

43,809

678,890

1,733

Norway

307

37,025

645,205

2,557

Ireland

391

35,329

915,774

2,322

Belgium

362

29,737

811,605

1,892

Denmark

353

29,566

620,185

2,390

Finland

236

28,675

295,970

1,747

Poland

180

26,178

241,619

1,024

Hungary

147

21,134

354,756

808

Slovenia

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8,058

59,819

179

Ukraine

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6,790

84,700

134

Italy has good exposure mostly versus France, a key competitor, but volume is markedly below the volume in the U.K and significantly lower than Germany regarding meeting space

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eRFP Coverage Top 20 Destinations Italy

Destinations

# of Properti

esRoom

Inventory Sq Ft of

Meeting Space# of Meeting

Rooms

Rome 161 22384

436,887 845

Milan 132 16824

454,329 764

Florence 82 6602

155,692 487

Venice 52 4973

85,406 214

Bologna 42 4532

54,932 226

Turin 39 3473

46,857 163

Naples 25 3084

58,366 152

Palermo 18 2745

26,450 75

Verona 30 2494

33,863 130

Genoa 23 2340

39,469 245

Abano Terme 13 1957

646 32

Rimini 26 1872

44,023 108

Sorrento 12 1464

1,076 65Montecatini

Terme 14 1404

22,754 50

Perugia 20 1396

34,579 97

Cagliari 6 1389

51,175 39

Bari 15 1245

48,145 103

Mestre 10 1199

29,821 41

Villasimius 2 1195

6,491 8

Taormina 13 1132

19,222 38

Two of Top 20 Destinations represented on eRFP inventory tool aligned with Emilia Romagna

Bologna room profile very close to Turin’s profile

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WORLD ECONOMIC FORUM2013 Travel & Tourism Competitiveness Index - Rank Score (out of 140)

1 Switzerland2 Germany3 Austria4 Spain5 United Kingdom6 United States7 France8 Canada9 Sweden10 Singapore11 Australia12 New Zealand13 Netherlands14 Japan15 Hong Kong SAR16 Iceland17 Finland18 Belgium19 Ireland20 Portugal21 Denmark22 Norway23 Luxembourg24 Malta25 Korea26 Italy

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MasterCard’s Top 20 Global Destination Cities in 2014

1 London2 Bangkok3 Paris4 Singapore5 Dubai6 New York7 Istanbul8 Kuala Lumpur9 Hong Kong10 Seoul11 Barcelona12 Amsterdam13 Milan14 Rome15 Taipei16 Shanghai17 Vienna18 Riyadh19Tokyo20 Lima

annual report produced by the credit card issuer that estimates travel flows (leisure and business) and their spending impact on 132 cities worldwide

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The international association meetings ICCA 2013International Congress and Convention Association

Italy in 6° position with 447 meetings (453 in 2012)

Top 10 city ranking

1. Paris 2. Madrid3. Vienna* 4. Barcelona 5. Berlin 6. Singapore 7. London8. Istanbul 9. Lisbon 10. Seoul

Top 10 country ranking

1.US2.Germany3.Spain4.France5.UK6.Italy7.Japan8.China9.Brazil10. Netherlands

2013 n° 11,685 2012 n° 12,224meetings per year

In 2013 Vienna generated an economic value of 832 million euros

30Strenght•50 properties inscribed on the World Heritage List•Magnetism and charme•Creativity and creative industry export•Culture•History•Food & Wine•Style•Design•Variety of programs and sites•Problem-solving attitude•Health and safety •Marine protected areas•Weather and temperature

Weakness•Missing benchmarking data (last update 2011)•Price competitiveness = value for money•Lack of infrastructure and investment to host great international events•Quality of ground transport network•Lack of a coordinated effort and local cooperation among stakeholders•Unknowledge of meeting & event industry international standard provided by CIC and APEX (Accepted Practices Exchange)•Tighter budgets•Deregulations of prices/rates offered

Opportunity•Economic Impact Study and specific MICE Industry Competitiveness Report as Government prioritization to invest in infrastructure and customer orientation•International business connections (as for EXPO15)•International leisure arrivals to be changed into MICE demand•Content marketing campaign and effective marketing to promote the Italian meeting & event industry offer abroad•Evaluation and measurement system of ROO/ROI/BVOM •Sustainable policies/processes/proposals•Professional Associations/membership/networking

Threat

•Government absenteism •Unawareness of the real T&T /MICE Industry economic benefits•Regional and territorial deregulation•Bureaucratic obstacles•Taxation•Recession•Euro-area sovereign debt crisis•MICE Inventors (anybody could organise events without specific knowledge)•Individualism

SWOT Analysis MICE Italia

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Opportunity Threat

SWOT Analysis MICE Emilia Romagna

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Placeholder Interview/Contribution

Si ringraziano:

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The benefit to be Culture ActiveCommunicate across culture: meeting and event organisers should be versed in the basics and in many situations carry out detailed research on the cultures they are targeting, because meeting attendees and conference delegates can easily be alienated by the simplest mistake in etiquette.

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“The importance to be CultureActive in managing events: introduction to MPI Global Best Innovative Tool and practical demo to better understand clients' needs, communicate with other cultures and languages, minimize errors, elevate the performance, improve the business, measure the customers' satisfaction”

Objectives and strategic advantages for the participants

•Prepare organizations for global expansion and EXPO 2015•Work out a strategy and conduct business negotiations on international level•Increase effectiveness in managing and being managed across cultures•Minimize unpleasant surprises (culture shock) and expensive errors (risk management)•Increase the span of influence of meeting professionals to engage senior management and clients on the nuances and cultural expectations in international business•Understand the value of cultural knowledge to perform successfully in the MICE industry•Guarantee professional international standards to lead, grow and compete effectively

Seminar

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Tourism

Meetings & events

Two parallel and converging pathways

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Definition of Tourism by UNWTO

United Nations World Tourism Organization

<Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors. Tourism is different from travel. In order for tourism to happen, there must be a displacement>

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Definition of MEETINGS by UNWTO, Reed Travel, Exhibitions, ICCA, MPI

<A gathering of 10 or more participants for a minimum of four hours in a contracted venue to confer or carry out a particular activity. The key purposes of meetings are to motivate participants, conduct business, share ideas, and learn and hold discussions on professional, scientific, or business matters. Frequency can be on an ad-hoc basis or according to a set pattern, as for instance annual general meetings, committee meetings, etc>

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The social legacies and outcomes of business events beyond tourism: tangible and intangible benefits

• Dissemination of new knowledge, ideas, skills, techniques, technologies, materials, practices, products, services

• Social interaction and networking of delegates to develop collaborations and business opportunities

• Identification of emerging leaders and solutions

• Development of intercultural understandings, contacts and friendships

• Opportunity to create a collaborative environment/learning and share best practices

• New investments

• New insights into research programs

• Motivation of workforce and opportunities for career advancement

• Involvement of the local government

• Reputation growth of the destination, the local community and industries to put on the “map”

La competizione territoriale: Economic Impact Study e ROI

EIS: Why do we matter?Measuring the economic impact of meetings and events at national level

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EIS Studies Conducted

National Business Events Study

The Economic Contribution of

Meetings Activity in Canada

The Economic Significance of Meetings to the

US Economy

The Economic Significance of

Meetings to Mexico

The Economic Contribution of Meeting Activity

in Denmark

UK EIS

Country Australia CanadaUnited States of

AmericaMexico Denmark UK

Year 2005 2014 2013 2011 2012 2013

UNWTO MethodUnderpinned the UNWTO Method

Yes Yes Yes Yes Yes

Direct Expenditure in B

$17.4B (AUD) $29B (Can) $280B (USD) $18.1B (USD) 20.8B (DKK) 59.6 (BPS)

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EIS Impact Success Stories

• Canada: EIS projects from 2006 and 2008 helped industry in achieving national recognition => Lead to more complex regional level EIS released in 2014

• CEIS key part of National Meetings Day in April 2014

• U.S.A: EIS key factor on supporting “Meetings Mean Business” effort to educate Congress/Government on the value of meetings in a challenging

environment.

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UK EIS Impact

Value of Press Coverage as of April 2014

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EIS exposureU.S and CanadaLink Meetings Mean Business: http://www.meetingsmeanbusiness.com/index.php#about

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Why a Simplified Approach?

• Current EIS are complex, expensive and require significant funding making it difficult to support for mid-size countries

• Some of the detail contains in current EIS are not always needed to support initial meetings industry recognition efforts

• Focus on key impactful national metrics

• Simplified approach could help create interest and lead to full approach once value of findings are demonstrated

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Feasibility Study

• A pre-research feasibility study follows due-diligence identifying barriers ahead of time and calculating total costs for undertaking an economic impact study in a country  

• A recommendation is then made to confirm the most appropriate approach, timeline and a total project cost

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A Simplified Approach1.   The study would produce data at national level only 2.   The study would exclude two stakeholder groups –DMOs and Exhibitors 3.   The destination government would need to have an Input-Output table* 4.   The study would use Tourism Satellite Accounts (TSA)* as part of secondary research if available but would not construct an extended Meetings TSA (MTSA) 5.   The study would follow a standard template of results 6.   The study would produce one report combining 10 profile findings and the economic impact calculation comprising 5 key figures, Gross Domestic Product (GDP), Employment, Salaries, Taxes and Import 7.   The study would exclude panel survey use apart from for attendees and attendees in one international market. 8.   The study would rely on investors supplying access to their own databases for single use for the Economic Impact Study (EIS). However if responses were low from venues and meeting organisers – a panel survey could be used for an additional cost  9.   The country would need to have published and accepted information on number of meetings, number of attendees and number of venues. There would also need to be international passenger data  

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Estimated Cost

• Feasibility study € 5,000 (included in the total cost of study, if commissioned)

• Simplified EIS € 150,000

• If criteria as defined in simplified approach are not met, feasibility study would determine cost more accurately

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Timeline

Month 1 – 2   Feasibility studyMonth 3 – 4 questionnaire design / refine / translateMonth 5 – 7 data collectionMonth 8 – 9           data analysisMonth 10               report collation

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Deliverables

• Feasibility report

• If Simplified Approach Validated:

• One comprehensive report which includes a national level economic impact calculation including

• Employment

• Salaries

• Import figures

• 10 profile facts to show the size and types of meetings (for example)

• Marketing Strategy Outline (based on previous studies)

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Appendix 1: Definitions

*Input-output modelling is fundamental to the impact calculation. In order to model correctly, a country must have a full input-Output table which determines how much of each input is needed to produce €1 of each output, containing data on the inputs used by industries for each of 1 type of product. An input-output table also has data on GDP and the GDP generated in the production of each product. Input-Output multipliers are derived from this table. The economist-led team will establish is the table exists and is detailed enough to undertake the calculation in order to determine the price. To produce an input-output table is a very costly and time-consuming exercise so it is essential to establish the location and quality of these tables from the outset. * Tourism Satellite Account (TSA) is a component of the National Accounts that enables the economic contribution of the tourism industry to be measured and compared in a method consistent with the National Accounts. A TSA extracts the tourism-related activity from the National Accounts by examining the expenditure patterns of tourists collected via surveys and extracting expenditure made by tourists within other industries listed in the National Accounts. Countries do undertake expenditure surveys, so the economist team will establish whether this surveying exists and that a TSA is available within Government or academic institutions.

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Suggestions to improve brand recognition and perception of Emilia Romagna

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Q&A

info@olimpiaponno.com, csavelli@mpiweb.org, ftoja@mpiweb.org