1	CVB/ Building Management Session Embassy Suites Paradise Valley, AZ January 18, 2006
2	Session Objectives Discuss need for broader industry discussion on operating models 2. Review historical development of DMO/CC Management Relationships 3. Identify Current Industry Challenges 4. Formulate agenda for future discussion
3	"Background/Evolution" Background/Evolution 1895 Detroit journalist proposes concept of businesses joining together to promote the City 1904 World’s Fair is the impetus for St. Louis to form CB 1909 After DNC Denver business leaders create early CB 1914 IACB is founded to share information about convention holding groups
4	"1920’s" 1920’s Conventions and Meetings Roaring 1923 IACB issues initial code of ethics and initiates “service” to convention holding groups 1927 Minneapolis builds “auditorium” to host large events 1930’s Depression-Conventions largely suspended 1941 WWII further depresses meetings market
5	"1948" 1948 Soldiers begin returning from the war and occupy majority of available hotel rooms forcing displacement of conventions in New York. IACB, ASAE, AHMA and HSMA meet to find solution. CLC formed soon thereafter and produces Group Room Booking model and Housing Reservation Service both under the aegis of IACB. 1950’s Interstate Highway system completed and jet air service is introduced enhancing convenient cross country travel
6	"1960’s" 1960’s H.O.Tax identified as financing mechanism to build CC’s and fund marketing through CB. Some CB ‘s begin to separate from Chambers as new financial resources are identified. Many seek private sector support through dues assessments on hotels and service establishments, restaurants, etc. Convention Center construction commences in many cities where the building is viewed as a “loss leaders”. 1964 First purpose-built convention center opens in Chicago-McCormick Place
7	"1970’s" 1970’s Facility bookings become more complicated as more utilization increases creating conflicts between consumer events and non-local users. Debate in many markets ensues as to whom should exercise calendar control and for what periods. CBs expand services to event organizers including housing, registration personnel and equipment. CBs mission expands to serve leisure travel, film industry, and special events, etc. (IACB adds the “V”) Competition for HOT funds grows with CVB, facility management and other community groups all vying for share.
8	"1979" 1979 California’s Prop.13 passes ending public subsides on many facilities. Although not the target, CC’s are greatly impacted, forcing “break even” operating policies. 1980’s Prop 13 philosophy expands across the country and CC’s and CVB’s agree to booking windows that protect local revenue generating shows and conventions 1990’s Hub airline concept expands bringing new service to smaller and moderately sized destinations, driving new round of convention center development and expanding competition
9	"1990’s" 1990’s Overall hotel occupancies increase and demand approaches supply for the first time in 20 years. Hotel companies begin to sell physical assets and move to management model. New ownership appoint asset managers that implement new policies driving cancellation and attrition penalties. Customer responds by shortening booking cycle invalidating traditional forecasting models. Performance expectations grow mounting additional pressure on the CVB
10	"2000’s" 2000’s Meetings market wanes and new inventory exacerbates profitability as more destinations and new facility expansions expand competition. Booking pressure drives sales incentives that drain marketing resources and facility revenue streams. Hotel occupancy slides as national economy falters and terrorism fears diminish all travel market segments. Hotel occupancy taxes slide and sales tax revenues wane. Municipal governments facing debt obligations and growing operating subsidies use general fund revenues to meet debt payments and seek greater accountability from operations and marketing.
11	"2000’s" 2000’s Wall Street scandals and shrinking public revenues force constituent demand on public officials who, in turn seek greater accountability and performance from the CVB. Public scrutiny of CVB management practices and how public monies are spent to attract business is openly and publicly debated. Local media suggest corruption and misuse of public trust forcing CVB management to overhaul management practices. Industry critics point to flawed sales projections from consultants justifying new and expanded convention centers in the 1990’s. Criticisms of traditional practices leads to experimentation with new destination marketing models.
12	"Session Objectives" Session Objectives Identify Current Industry Challenges Formulate an Agenda for a Broader Industry Discussion Agree on the Desired Outcomes from such a Discussion
13	CVB/ Building Management Session Embassy Suites Paradise Valley, AZ January 18, 2006