Who Pays Financing Meetings and Events

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Who Pays? Financing Meetings and Events
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Is it all about money?
No, but it is a major part of it..
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Association Meetings

• Host organisation (the association)
• Takes responsibility for the whole event income
  and expenditure - and all payments, either direct
  or via a professional congress company (PCO)
• Budget is flexible depending upon numbers and
  income sources
• Discuss JV events with shared financial
  responsibility

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Association meetings - sources of income

• Main sources
• Delegate registrations
• Sponsorship/advertising
• Exhibits
• Commissions

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Association meetings - sources of income

• Additional sources
• Ticket sales to functions/sessions
• Accompanying pax registrations
• Government (mainly local regional) grants and
  in-kind subventions (free venue, city
  reception, local transfers etc)
• Merchandising

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Association meetings - source of income

• Additional sources
• Airline support, mostly in-kind
• International NGOs
• Aid organisations
• Government loans
• Government assistance with security

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Association meetings - financing events - issues

• Association cash-flow problems local host may
  need bankrolling
• Deposit and contractual conditions may have
  negative impact
• Host may overestimate anticipated numbers
• Exhibition may undersell
• Sponsorship may have been too ambitious

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Association meetings - financing events - issues

• Too many free of charge delegates
• Costs blow out
• Registration fees set too high
• Unforeseen risks
• No insurance or premium prohibitive
• No foreign exchange hedging if pricing in another
  currency

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Corporate Meetings/Incentives

• Host company
• Takes responsibility for the whole event and all
  payments, either direct or via a professional
  congress organiser (PCO) or travel management
  company or destination management company
• Usually only expenditure, no income
• Usually a set budget and organiser has to work
  within this

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Differences

• Association meetings (conventions) rely on
  delegate and other income variable income and
  variable expenses.
• They are looking to make a profit!!!
• In the end the delegate pays - many cheques
• Corporate meetings have a fixed budget.
• They are focused on costs!!!
• One cheque

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Exhibitions - who pays what?

• Organisers
• Rental of entire exhibition hall
• (build up - trade show -dismantling)
• Cleaning
• Security
• Insurance for third party liability

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Exhibitions - who pays what?

• Organisers
• Advertising and promotion
• Special events during the exhibition
• Hosted buyers and their programme

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Exhibitions - who pays what?

• Organisers
• Seminars and conferences to be held concurrently
  with the exhibition
• Shell schemes, signings, overall presentation of
  the exhibition hall

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Exhibitions Who pays what?

• Organisers
• Market the exhibition and get paid per square
  meter from the exhibitors
• Seek sponsorship for the exhibition, including
  transfers, banners, VIP lounges, refreshments,
  registration counters
• Seek partnerships for the seminars and
  conferences held concurrently with the exhibition

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Exhibitions - Who pays what?

• Exhibitors
• Pay per square meter exhibit space
• Freight costs
• Construction of special designed booths or cost
  for standard booth
• Electricity, water, internet access etc

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Exhibitions - who pays what?

• Exhibitors
• Advertising and promotion for their own
  participation, e.g. trade magazines, official
  exhibition directory, tickets, internet banners
  etc
• Staff and travel costs
• Hotel and Food Beverage for staff

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Thank You