Value Cities

Shopping for an affordable site for your meeting? Here are some criteria to consider when evaluating potential host cities.

By Laura Moss

No meetings market is more interested in affordable meetings destinations than the religious conference market. And as travel costs continue to rise, that interest is greater than ever. Here we highlight some simple metrics you can compare when evaluating

destinations to host your meeting or convention. Of course, there are many other factors to consider in the site-selection process, but these metrics can be a good place to begin when you are shopping around.

Average Hotel Rate
The average hotel rate will increase by 5.3 percent this year to roughly $109 a night, according to PKF Hospitality Research. While the expected rate increases are the smallest since 2003, this is still unwelcome news to planners.

“I try my best to keep the rooms under $100. When people start seeing triple digits, they get uneasy. Right now my 2011 bids are mostly below the $100 mark, but I know they’ll go up because prices are going up,” says Nancy Butterfield, senior project coordinator for the Rocky Mountain Conference of the United Methodist Church.

While it’s impossible to avoid the rising cost of hotel rooms, planners can look to a city’s average hotel rate, published quarterly by Smith Travel Research, to get a general idea of what room rates are like. In addition, Duncan Hines, sales manager for the Bowling Green Area CVB in Kentucky, recommends that planners get in touch with the city’s CVB as soon as possible. “We are really under-utilized by meeting planners, but we can do everything from setting up site inspections to working out deals with hotels and local attractions.”

That point is echoed by Alana Cooper, executive director of the Monroe-West Monroe CVB in Louisiana. “It’s our job to work with hotels to get groups the best rates possible,” she says, “So it’s just a matter of getting in touch with us and letting us know what your needs are.”

Some planners suggest setting a top-level price that you’re willing to pay for a room. “We get together before we begin any negotiations and decide on a price ceiling. We’re not under the illusion that we can stay at $79 or $89 a night forever, but we come up with a range of what hotels might give us and what our participants are willing to pay,” says Rachel Swartzendruber-Miller, associate director for convention planning at the Mennonite Church USA. “We basically look at our history and come up with a steady progression of price increases. If a city can’t give us the price we need, we walk away. We don’t waste that city’s time.”

Hotel Room Tax
Hotel room tax varies by city, but meeting planners can expect to pay as little as 2 percent of the room cost per night to as much as 18 percent at the top of the scale.

Room taxes are a critical revenue generator for many communities, and they have creeped up significantly in the last 15 years as cities struggle to find revenue to fund, among other things, the local convention bureau.

But for many planners it’s not an expense that’s usually in the forefront of their minds. “Room tax is an issue, but it’s not something we look at immediately, explains Swartzendruber-Miller. “All things being equal, if one city has a room tax of 7 percent and another has a tax of 14 percent, we’re going to go with the first city, but if everything else is in line with the second city and we’re getting a good package, room tax won’t be a deal breaker. But at some point room tax could play a role in where we decide to go.”

Vangie Waybright, an independent planner at Conference Planning Resources, says she always wants a breakdown of costs, including any taxes.

“The costs would then be used to determine the feasibility of holding an event in that location and other decisions,” she says. Mozella Brown, contract administrator for Women of Faith, says that her organization takes all taxes and fees into consideration before booking a hotel. “We have to get all that information upfront to evaluate the cost and see if we can really afford to stay there. Some places have been cost-prohibitive for us.”

Air Travel Costs
Travelers can expect a 1- to 5-percent increase in economy-class airfares this year, according to American Express’ 2008 Global Business Travel Forecast. But the good news for religious conference planners is that the report also states that increased competition among airlines (thanks to low-cost carriers) could help keep airfare prices down.

While many planners in the faith-based market organize events where the majority of participants drive to their destination, others plan national meetings where air transportation costs for attendees are a big factor.

Joshua Townsend, sales manager of the Little Rock CVB in Arkansas, says that when it comes to affordability and accessibility, Little Rock is highly competitive. “We’re positioned in the center of the country and in the center of the state so whether you’re flying from the East Coast or the West Coast, it’s a good meeting point for your conference.”

Adds Lyndsay Rossman, director of corporate communications for Visit Jacksonville: “The air ticket price to Jacksonville is comparable to most other cities, especially within the state of Florida. Once planners get here, they fall in love with the city and it’s affordability, which is how we have an 85 percent retention rate.”

Planner Rachel Swartzendruber-Miller says she tends to hold her meetings in second-tier cities, but that a large airport and low airfares are a definite plus. “A city that is an airline hub is a great perk, but it’s not always a must. I find that smaller cities usually have more value for us.”

This is welcome news for CVBs that don’t want to be overlooked just because their airfare isn’t the cheapest. “Getting into Columbia sometimes takes creativity and a few more steps than some destinations, but once you arrive, the savings really add up,” suggests Twila Jones, senior sales manager at the Columbia Metropolitan CVB in South Carolina.

Cost-of-Living Index
And that brings up another metric to consider during the site-selection process: the cost of living in an area, which is measured by the consumer price index. By consulting the monetary cost of maintaining a certain standard of living in a city, planners can get a better idea of what transportation, food, and other goods and services will cost within that city.

Not surprisingly, many second-and third-tier cities have substantially lower costs of living than first-tier destinations, such as Chicago and Philadelphia. The bottom line is that when evaluating the affordability of a destination, planners must consider other costs beyond hotel rates and fees and the cost of getting to and from the meeting.

“Visitors can find shopping, dining, and night life nestled away in small pockets all over the city,” says Jones. “From The Vista to Five Points, Columbia offers the best of everything in every price range. And taxi fares to most areas of the city cost under $20.”

Utilizing the CVB
By contacting the local CVB early, meeting planners, especially in the religious market, might learn that they’re eligible for grants or incentives, which can bring a whole new meaning to the term “value city.”

For example, the Duvall County Tourist Development Council in Jacksonville offers grants to qualifying groups to offset the cost of their meetings, and Visit Jacksonville, the local CVB, is there to help planners with the application process. Moreover, in January, the city launched an incentive program to encourage planners to hold their events in Jacksonville. “In our market we’ve seen that hotel occupancy is down from July to December, so we have this program to offer special deals to meeting planners,” Rossman notes.

Many cities that own and operate the convention center are in a good position to work with planners to reduce the cost of utilizing the center. “We are able to offer an incentive because we own and operate the convention center here, which enables us to offset meeting costs on a sliding scale,” says Little Rock CVB’s Townsend.

“There are meeting planners who don’t realize all the things a CVB can do to assist them, which is a mistake,” adds Nancy Butterfield, Rocky Mountain Conference of the United Methodist Church. “Even when I’m planning a meeting in Denver I work with the CVB, because even though it’s my city, they know it better and can help me get the deals my group needs.”

Redefining a Value City
Swartzendruber-Miller says that one of the best ways to find a value city is by looking to second-tier cities. “I definitely lean toward second-tier cities. As the only event in town we take over the downtown and we can command better hotel rates as the only event. And it’s also good for the city because we try to give back by doing service projects while we’re there. We like to feel connected to a city and have an impact on it, and that’s difficult to do in a large city.”

Vangie Waybright agrees that being the “big fish in a small pond” is certainly appealing. “The venue staff is focused on serving one group versus several,” she says. “And meeting guests appreciate having the primary use of the venue because it helps with networking and building camaraderie.”

Faith-based planners can also find value in smaller cities by taking advantage of community and volunteer support, notes Lisa Anders of the Gwinnett County CVB. This is especially appealing to religious groups meeting in Gwinnett, a thriving suburb of Atlanta with its own convention center and arena.

“There are many mega-churches in our area, as well as the headquarters of groups like the Presbyterian Church in America,” Anders says. “They often have volunteers who are willing to help out, which helps keep costs down.”

Proving Your Value to CVBs
When it comes to establishing your meeting’s value to a destination, being
able to show a reliable record of your past meetings is essential.

“The most crucial thing for a meeting planner to provide is history. Any past events, room blocks, total amount of food and beverage, cash concessions -really any money invested in a venue or hotel-is what helps us sell a group, because as the CVB, we have to sell planners on the destination and then sell their meetings to hotels,” explains Joshua Townsend, sales manager, Little Rock CVB in Arkansas.

Lisa Anders of the Gwinnett County CVB encourages planners to submit detailed RFPs that explain exactly what they’ll need, as well as the history of their meeting with specific spending and room night data.

“I know that I need to prove that my meeting is valuable to a city,” says Mozella Brown, contract administrator for Women of Faith. “So I do that by carefully lining up the economic impact our event brings to the city.”

And as the number and size of religious meetings continues to grow, more and more destinations are really beginning to see the value of hosting such events in their cities.

“I think cities are finding more value in religious meetings. Corporate business is always nice because it pays more, but it’s also risky because they might cancel last minute. But religious meetings are consistent. Once we sign a contract, our people are coming,” says Rachel Swartzendruber-Miller, associate director for convention planning at the Mennonite Church USA.

“It’s like stock and bonds,” she continues. “The corporate meetings are the stocks because they have more payout, but they’re also more risky. I think of us as the bonds because, while we bring less revenue, we’re more reliable. That’s what makes us so valuable.”