OFFICE DU TOURISME DE NICE

1
OFFICE DU TOURISME DE NICE

• A revue of the United Kingdom market place
• Conference and Incentive Segmentation
• Prepared by
• MOULDEN MARKETING LIMITED
• 18 January 2007

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THE UNITED KINGDOM AN ECONOMIC REVUE AND
FORECAST.

• According to 31 independent forecasts submitted
  November 2007- the GDP is set to finish 2006 at
  2.6 and move to 2.4 in 2007.
• Inflation currently running at 2.6 should fall
  in this year to 2.0.
• The unemployed now at 0.97 will grow to 1.02.
• Interest rates now at 5.25 are expected rise to
  5.50 in 2007 making this the highest rate since
  the single currency began, meanwhile house prices
  often said to be levelling are again forecast to
  rise by up to 15 in 2007.
• This forecast indicates relative stability for
  the British Economy for the and the domestic
  conference providers forecast steady growth,
  domestically and internationally for the year
  ahead.
• When we discuss the U.K market place however we
  have to take into account so much of the business
  generated from U.K is global in terms of
  conferences, congresses, product launches,
  exhibitions, and Incentives is global either in
  terms of delegates or /and decision making.

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AN ECONOMIC REVUE AND FORECAST

• Market feedback suggests that business is buoyant
  in all quartersdespite the very relevant fact
  that margins most usually based global companies
  purchasing has been severely reduced.
• It is no surprise that this single factor has had
  the most profound effect on the agencies. First
  in terms of profit, and as a direct result their
  staffing over the past two years.
• As will be demonstrated later this means many
  companies have downsized to the point amongst the
  major agencies that up to 75 of their staff may
  now be freelancers. This removes any chance of
  suppliers presenting to the staff of these
  companies and removes even more any chance of
  training, or even direct interface with many of
  the largest agencies.
• Many of the employees let go are the most senior
  agents, who have a wealth of experience, yet
  often find themselves becoming freelancers, or in
  the best cases setting up as solo agents. The
  latter though can take some time before they
  become productive.
• The plus side of downsizing is the profit
  increases a company may effect by taking on
  workforce only when they need them and not having
  to pay social charges for temporary staff

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MIT MAGAZINE FINANCIAL BENCHMARKETING SURVEY
2005

• In June 2006 this survey reported buoyant profit
  increases amongst the top 100 agencies who agree
  to submit their trading figures to this survey.
• During 2005 this showed a five fold increase of
  profits across those surveyed rising to 19.3
  million. This shows companies have embraced the
  new trading conditions and responded to them.
• The market grew in 2005 by 3.16
• Payroll rose by 6 which reflects the need for
  agencies to retain key staff and management by
  higher wages and bonuses-in an industry suffering
  a skills shortage. It is noted this is much
  higher than inflation but reflects the fact
  better paid staff work harder and more
  productively.
• The MIT travel survey compares the trading
  results of 95 companies with year end falling
  between December 1 2004 and November 30 2005 with
  the previous year. The full survey can be found
  on www.a14bha.co.uk

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Agency ranking by turnover
6
Ranking by Profit before tax as a of turnover.
7
THE CORPORATE SPEND

• Many elements of the following reflect domestic
  purchasing but are worthy of note and
  comparison. Survey conducted by the UK
  Conference Market Survey published by the Meeting
  Industry Association.
• The average corporate event organisers budget
  rose to 141,000 from 99,700 and the
  association budget rose to 93,400 from 89.400
  in 2005.
• The hotels however are not seeing the benefit,
  the of residential meetings has dropped and so
  has the budget line for hotels.
• Budgets for daily delegate rates were down the
  associations from 47.70 to 39.00, corporate DDR
  down form 52.90 to 48.70.
• Web casting and video conferencing grew
  substantially as has the demand for unusual non
  hotel venues. These rose from 8 in the previous
  year to 25.7 in the period of the survey most
  will be associations using university campus or
  dedicated training centres.
• Bench marketing conference results only 62 of
  corporate organisers said that conferences or
  events improve business results.
• Interesting for these organisers quality of
  service has become a more important factor
  influencing destination, and venue selection
  after location price access and availability.

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THE COST OF MEETING IN U.K.

• The cost of meeting in U.K conference centres
  based on a theoretical one day event for 500
  delegates, October 2007. The rates include a two
  course buffet lunch and two breaks coffee tea,
  with mineral water and soft drinks.
• Of the main cities surveyed such as Edinburgh,
  London, Manchester, Birmingham the total spend
  fell within the amounts of 26,000 (Euros 38220)
  in Manchester through 30,000-33,000 (Euros
  44000-48000) for most London based centres save
  only Birmingham our largest space which quoted
  against the totals spec at 43,000 (62700).

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CHANGES IN THE MARKET PLACE.

• Talking Point limited now trading as BCD Holland
  saw Paul Ratcliffe their ops director departs in
  2006 and he has not been replaced. Robin Smith
  the MD has a short term contract due to finish
  this June who has also assumed Pauls duties
• The Grass Roots Group Limited acquired Maritz
  Limited and Maritz Travel and though both operate
  with independence some synergy is developing as
  for instance in the choice of preferred DMC as
  most Maritz DMC preferred partners were USA.
  appointed originally clients now have choices to
  use either companies often different preferred
  partners. Penny Lewis left Maritz as did Sean
  Casey left but joined a technology company.
• Genesis Limited has purchased Adoration, who it
  seems will move to the Genesis hq within two
  months.
• Western Oriental has bought Travel Management
  Team, and Lynton Cooper both operate
  independently.
• Eyas Limited has been purchased outright. Their
  new owner is from outside the industry and Scott
  Gibbons continues in the role of director.
• ICC Limited ceased to trade but Bob James the MD
  has re-emerged as BJ Events.
• Qudos Limited was purchased by THA Group, and
  Debbie Watt the THA former MD is now at
  Grassroots in a similar role. Penny Noble left
  THA and formed Blank Canvas
• Venues Unlimited merged with Holly Benson
  Communications they still operate out of their
  Swindon address.
• Expotel bought Meetings fare which ceased
  trading, but the two directors have each formed
  new trading companies B2B and What Next. Expotel
  formed an incentive division now up to eight
  staff all handling up to 25 group enquiries per
  month but their department chief Veena Lidbetter
  left at Xmas.
• PCI-Fitch directors, Bridget Laing and Jeff Gale
  formed new company Laing Gale and Associates.
• Capital World Travel has ceased travel events and
  Chris McQue and Peter Stipetic with one other
  director David Woodcock have formed Creative
  Directions.
• PMM Limited lost Jane Tattersall, and gained Sue
  Sexton though not in the same roles. Together
  with AYM ltd their earlier purchase their
  collective holding company is now named Motivcom.
  
• World Event Management are moving to their next
  door office following their rapid recent
  expansion, now with over 70 staff on site.
• The Informer group, made 24 staff, including
  their whole association division redundant in
  December and no longer trade out of Mortimer
  Street. Damian Hutt with his team is in the
  process of forming a new company Compelling
  Conferences.
• Banks Sadler opened offices in York, Warsaw, and
  soon to be in Milan, and Paris in most cases to
  assist GSK offices there. These will be called My
  Venues

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Effect on Our Work

• How have all the changes in buying and the people
  who buy effected our work.
• With less senior and even less staff in place
  combined with multi tasking our buyers with both
  large and small agencies, have become more
  mobile, more multi tasked and more difficult to
  obtain appointments with and those who do grant
  appointments are likely to offer us supplier
  liaison or the ever changing account management.
• Some agencies have intensified their limitation
  of access, some taking one day a week or month,
  for one supplier only to visit their offices,
  many the large venue finders will only see
  preferred suppliersthose hotel chains who offer
  increased commission via overrides who in turn
  complain they also cannot get appointments.
• The traffic situation on our roads, and
  motorways, gets ever more packed and delays are
  frequent, making asking clients to travel to us
  for functions and events even after hours
  hospitality more difficult.

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Effect on Our Work

• Clients increasingly work from outside the
  greater London area, and travel times into and
  out of all major cities by road or even public
  transport is time costly.
• Corporate clients are unable in most cases to
  involve visitors or educationals unless they have
  a programme in planning, as this is considered
  anti trust
• Pharmaceutical's have intensified their 4 and
  non resort pronouncements and some include Nice
  as a resort.
• More clients are asking for the new countries of
  Europe.
• Some Incentives specify they need to include
  social programmes of environmental or charitable
  interest to include active delegate
  participation.
• All need wi-fi and barco.
• Senior staff or management has become a priority
  to access.
• Clients demand to see price right alternatives.
• Many agencies will no longer see an individual at
  all especially an individual hotel.
• There is a demand for sales blitz as long as we
  can demonstrate the attendee presenters and their
  subject at point of request.

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How have we adapted to meet these increased
challenges ?

• Event driven activities, We have now undertaken
  to qualify every hosted buyer from all countries
  outside of the USA for REED exhibitions. They
  have allowed us to take 70 hosted buyers to
  EIBTM, and we accompany all U.K buyers to each of
  their other shows at AIME Melbourne, GIBTM Abu
  Dhabi, CIBTM Shanghai-China, and Convention India
  in Delhi. These shows attract different buyers
  and we travel with them a minimum of four days
  most often with pre-post tours. We qualify and
  attract different buyers, and often the more
  senior management, and they allow us time to
  better get to know each individual and their
  buying needs whilst travelling with them to every
  destination we work with.
• Data bases the many activities we support offer
  up a wide range of new contacts, annually all are
  qualified to establish buying needs by
  destination and event type. We are currently list
  cleansing a huge data base which will include
  telephoning every addressee to establish need and
  direct booking possibilities.

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Adaptation

• MM trade show events with multi-hosts are
  usually well prescribed to, whether in UK or
  abroad or for 20-100 delegates,. Through reasons
  of negotiations, and the time it takes we cannot
  always advise you of Moulden Marketing dates for
  trade shows so far in advance of the year we
  will not ask you to share tables and for a single
  product we charge at 350 and for multi product
  500.
• In 2007 dates for our trade shows are Imex 18th
  April 50 UK buyers, EIBTM 28th November 70
  buyers. Each now offers after several years trial
  and error a one hour cocktail slot with open
  appointments and tables for each supplier
  followed by a buffet dinner with buyers choice of
  seating and suppliers seated by space not
  specific names so everyone has fluidity of
  networking maximised.
• Our two one day trade shows are yet to place in
  UK or overseas we have various options pending
  but will select the first week June and the first
  week, November for one day only these welcome
  each 100 buyers who choose their 15 minutes
  pre-set appointmentsover the year we have plenty
  of repeat guests but always have in the region
  of 40 of the whole more than 300 buyers who are
  first timers by individual or company. Out other
  convention bureau members are attending in large
  numbers Nice have been sadly missed come back
  these are cost effective means to see a lot of
  buyers in the environment the buyers enjoy most.
  

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Adaptation

• Educational workshop we have suggested to Monique
  the trade workshop x 30 persons is the best way
  to reach the buyers who may not, and there are so
  many who have not seen Nice. The programmes here
  always come together well and with interesting as
  well as the balance to use good venues and time
  around the old town. Sales workshop-educationals
  we did 13 last year, which explains their
  popularity. There have been noted absentees from
  recent events again the cost is low and whilst we
  respect your many commitments to this market
  place and others beware other destinations are
  now producing elaborated programmes of like type
  which involve all their commercial partners.
  Please support the work of the bureau.

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Adaptation

• Sales Blitz Ensure with our clients that any
  sales week, or sales blitz, are well rehearsed by
  each supplier presenter. For a sales blitz if you
  have two hoteliers and one DMC or Convention
  Bureau host nominate first a single presenter,
  who will showcase the product destination
  emphasising in the first ten minutes, access,
  hotel accommodation in general, highlights and
  new features, before addressing each their
  individual product. DMC must be creative in their
  suggestions, and hoteliers know how to identify
  their unique selling points. Price value, and
  floor plans, or, and interesting venues and
  things to do should be included.Nice has not
  effected sales weeks for some time as a
  collective, and your competitors are doing more
  and presenting very professionally. Collective
  sales must be well rehearsed, with a presentation
  which neither repeats, nor becomes an individuals
  talent show !!! with a light touch and be
  contained, allowing no more than 45 minutes in a
  clients, premises. PLANNING TIME is needed three
  months, or more to get the right appointments and
  be aware some agencies are closed out until Sept
  07 already, when we have all the teams identified.

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Conclusion

• In conclusion, I finish with a quote from Angela
  Adams at Absolute Corporate Events, When asked
  how do you perceive Nice the reply came back
  everyone loves Nice never enough room though
  !!_at_
• If you work as a team, to hone your professional
  presentation skills, and join the low cost
  initiatives that we offer you will have a very
  good coverage of the U.K buying market place.
• Any of you who have specific guests to include in
  invitations we can always furnish you with the
  invitation to send to every address you may wish
  to directly so long as the response is direct to
  our address.
• We hope to see your support ever increased for
  2007 and are always strongly in support of this
  great destination, for which we thank you for our
  always friendly welcome and open support.

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Programme for 2007

• Product launch new brochure for press and MICE,
  postage press gifts
• 25-27 April 2007.Destination workshop for 20-30
  buyers in NICE.
• April 18 2007, Hosted buyer Moulden Marketing
  Group IMEX- Maritim Hotel 19.00-22.30 hours. 50
  uk hosted buyers
• June 1st Sofitel St. James 2007, Moulden
  Marketing Workshop,
• 2nd -6th July 2007 sales blitz-max 5 partners
  Nice CVB
• November week 1 2007 Moulden Marketing
  Destination workshop.
• November 18 2007, Hosted buyer Moulden Marketing
  Group EIBTM, Princesa Sofia Hotel, 19.00-22.30
  hours, 60 uk hosted buyers.