Last year was a time for fresh faces at
convention and visitor bureaus around the country. From Providence,
R.I., to Honolulu, a fleet of new executives has taken over the
helm at local CVBs sometimes following hotly publicized shake-ups,
always amid fervid competition.
The class of 2003 arrives at a difficult period for bureaus.
Although industry forecasts are cautiously optimistic for 2004,
convention business continues to show the lingering effects of 9/11
in the form of skittish air travel and cost-cutting among corporate
and association groups. Add to that a boom in nationwide convention
space, and CVBs find themselves in a pickle of increased supply and
decreased demand.
To cope, many have ratcheted up their sales efforts, sometimes
raising ire among local politicians and media who have sparked
allegations of misspending or mismanagement. Indeed, 2003 saw many
CVBs across the country singled out, dressed down and shaken
up.
Enter the new crop of bureau presidents. “We’re passing the
torch to a new generation of CVBs,” says Leslie Doggett, the
recently appointed president and CEO of the Baltimore Area
Convention and Visitors Association. “It’s about consensus
building, policy making, customer service and selling.”
How’s the view from the top of a CVB today? To find out, M&C
conducted a series of interviews, asking the new leaders what it is
like to helm a bureau in a time of promise and peril.
M&C: Given the tremendous competition among
cities to lure conventions, what plans are in the works to make
your city more attractive to planners?
Doggett: It’s always an issue of selling your assets.
Baltimore is a visitor-friendly waterfront destination with easy
accessibility, whether flying or driving. Its location on the East
Coast allows for higher attendance and affordability.
Tennant: People are amazed how easy it is to get around
San Antonio. We have a very authentic destination. Our tourism
industry is based on our strong heritage dating back even before
1718, when the Alamo was established.
Wood: We’re adding 166,000 square feet of exhibit space
to the Kentucky Fair and Exposition Center. Downtown, we have a
621-room Marriott scheduled to open in spring 2005.
Jones: The Dallas CVB is in the middle of a rebranding
process to showcase the diversity of the city. We’ve improved the
Dallas/Fort Worth Airport. And you can get on the light rail
downtown, and 10 minutes later you’ll be at the North Park shopping
mall.
Whiting: With so many hotel improvements and openings
in the Greater Providence/Warwick area, planners will be
hard-pressed to find a meeting facility or hotel that is not
accommodating. The many options include the new 80-room Hotel
Providence, the newly renovated Westin Providence and Providence
Marriott hotels, and the expanded Crowne Plaza Hotel at the
Crossings.
Monahan: Hawaii is a great place to meet and do
business. We have world-class meeting and convention facilities
statewide, plus the award-winning Hawaii Convention Center in
Waikiki. Waikiki Beach has been invigorated with an impressive
beautification, while resort areas on all islands have undergone
extensive renovations and upgrades.
Meet the New Bureau Chiefs
Leslie Doggett is the president and CEO of the Baltimore Area Convention and Visitors Association. Prior to taking the post last July, Doggett spent eight years at the U.S. Department of Commerce, where she managed a global staff of 98 people and oversaw an annual budget of $17 million. Her appointment at the BACVA followed a yearlong controversy at the bureau over allegations of inflated booking and membership numbers.
Phillip Jones was appointed president and CEO of the Dallas Convention & Visitors Bureau last October, following a seven-year stint as secretary of the Louisiana Department of Culture, Recreation and Tourism. Jones, who also has worked as a director at the U.S. Department of Commerce, has vowed to keep Dallas in the top five convention destinations in the country.
John Monahan was selected in October 2003 to head an embattled Hawaii Visitors and Convention Bureau. Prior to that, for 11 years Monahan was a senior executive at Liberty House, Hawaii’s largest retail department store. He also sat on the board of directors for the Polynesian Cultural Center on Oahu. His appointment came three months after Tony Vericella resigned as HVCB president and CEO, following a state audit criticizing the bureau’s spending practices.
Melvin Tennant became president and CEO of the San Antonio (Texas) Convention & Visitors Bureau in July 2003. A Texas native, Tennant logged 11 years in Charlotte, N.C., as head of that city’s convention and visitors bureau. In San Antonio, Tennant oversees a budget of $16 million and a staff of 106.
Brian Whiting was selected to head the Providence Warwick (R.I.) Convention & Visitors Bureau last October. Whiting, who began his tourism career as a sales manager for the Newport County (R.I.) Convention Bureau, previously worked at PricewaterhouseCoopers, the Travel Industry Association of America and the Massachusetts Department of Economic Development/Office of Travel and Tourism.
James T. Wood, a former president and CEO of the Greater Providence Warwick Convention & Visitors Bureau, is now president and CEO of the Greater Louisville (Ky.) Convention & Visitors Bureau. His 23-year career in hospitality has included a wide variety of roles in catering, sales and marketing.
M&C: What issues are you hearing about from
meeting planners?
Tennant: We find our customers want quicker responses,
so we will continue to improve our internal processes to
accommodate them.
Whiting: From my brief time so far as president/CEO and
my recent experience at PricewaterhouseCoopers interviewing
thousands of meeting and event planners, it would appear that
attrition, booking outside of room blocks and decreased attendance
at events are the three hot issues affecting the meetings/trade
show industry.
M&C: Attrition is a hot-button topic for
many planners. What is your bureau doing to address this as well
as out-of-the-block bookings?
Doggett: We are trying to work with planners to create
packages and incentives where it makes sense to book inside the
block. We know this is an issue and a challenge a national
challenge.
Tennant: In the next few months we’re going to
implement RegLink, which will enable people who book through
Passkey to do conference registration at the same time as hotel
registration. Requiring attendees to get hotel rooms through the
association or corporation is one way to address the attrition
issue, but I don’t know how soon the planning community will
embrace that wholeheartedly.
Wood: We’re trying to offer technology-based options
that will encourage delegates to use established housing
blocks.
Monahan: Attrition has affected some of Hawaii’s larger
conventions since 9/11, but it has not been a major issue with
single-property meetings and incentives, which is our area of
responsibility. Regarding out-of-the-block bookings, the HVCB
leaves it up to the client to determine incentives and/or penalties
to help discourage this from taking place.
M&C: What is your bureau doing to address
stagnant or falling trade show attendance?
Doggett: We have a history of good attendance because
we have a nearby airport served by Southwest, and we’re easily
accessible for those who are driving.
Tennant: Fortunately, we have not experienced falloff
in attendance. We started out as a leisure destination first, so
we’ve been able to stay very competitive in terms of retaining
attendance.
Wood: We’re trying to provide the greatest value by
investing in infrastructure. We have the Frazier Historical Arms
Museum opening in 2004 and also the Mohammed Ali Museum opening in
2005.
Digging Out
Some CVB heads are under particularly intense pressure to run a clean business: They’ve stepped into the hot seat after former management was ousted due to ethical controversies.
Leslie Doggett’s predecessor at the Baltimore Area CVA, Carroll Armstrong, resigned from his post amid allegations of inflated booking numbers. “We learned research is critical, as is making sure the numbers are sound,” says Doggett. “When we find out that is not the case, we have to adjust immediately,” she adds. “Accountability is part of the new generation.”
In agreement is Phillip Jones at the Dallas CVB. The bureau’s former head, David Whitney, resigned in January 2003 after controversy over the bureau’s spending practices. “We restructured our accountability and expense systems,” Jones notes. “The city council even changed our entertainment policies [forbidding hosting clients in adult clubs]. There’s no worry that anything like that will ever happen again.”
Similarly, John Monahan of the Hawaii Visitors and Convention Bureau says things have changed since former president and CEO Tony Vericella resigned under fire last July, after a state auditor’s report questioned the HVCB’s spending of state funds. “As a consequence, our board has introduced a series of measures to tighten up procedures,” says Monahan. “I plan to continue that process.” -- B.M.
M&C: How has your city’s marketing and
sales approach changed in the past few years as a result of changes
in the marketplace?
Doggett: One thing the BACVA has done is institute
quarterly reporting so we can be strategic and analytic in our
approach and spot trends. We know from research in our first
quarterly report that meeting planners like and know Baltimore, but
their boards of directors often don’t know about the city.
Tennant: The SACVB has increased its focus on new
market development and equipping salespeople with the tools they
need for sales calls and trade shows. We’re developing a much more
sophisticated means to boost returns on investment of all marketing
opportunities.
Wood: One of the changes we introduced in Louisville
about a year ago was cold cash initiatives of $10,000 to meeting
planners a financial incentive that can go right back to the
association.
Monahan: Two changes have occurred regarding Hawaii’s
marketing. First, the responsibility to market the Hawaii
Convention Center was transferred from the HVCB to the operator,
SMG, effective Jan. 1, 2003. Second, the Hawaii Tourism Authority
reassigned the international marketing of leisure travel from the
HVCB to companies based in those markets. This change took effect
at the start of this year. The HVCB retains responsibility for
promoting leisure and corporate meetings and incentive travel in
North America, our largest and most important market.
M&C: Has your relationship with meeting
planners evolved as a result of market changes?
Tennant: I think there’s more of a sense of cooperation
and not taking advantage of the situation in a way that will harm
suppliers.
Jones: We’ve definitely seen a change. Customers know
the value of their business. Groups on the books for years are now
calling to renegotiate their original deals. That pendulum will
swing back at some point.
Monahan: Demand is excellent and growing. It’s due in
part to Americans choosing to stay within friendly territory, and
Hawaii is an exotic yet welcoming destination.
M&C: When are you projecting an industry
recovery to pre-9/11 levels?
Doggett: There are so many variables between consumer
confidence, the war and security issues. The forecast is you’ll see
a recovery by 2005.
Tennant: I can’t say 2005 will be the year of pre-9/11
levels, but 2005 and 2006 are looking strong.
Wood: A lot of us are hearing things will be better
sometime in 2005. But because of the uncertainty of our world
environment, we basically operate with our fingers crossed that
nothing of a tragic nature will happen.
Jones: Our goal is to be back in 2005 or 2006. In the
short term, we’ll focus on the leisure side. While we have a
downturn in meetings, we’re trying to fill hotels with leisure
visitors.
Whiting: I expect convention center demand will return
to pre-9/11 figures by 2005. However, it is important not to
confuse demand with occupancy, as the latter will continue to be
“depressed” compared to pre-9/11 levels, due to significant
increases in the supply of new and expanded centers.
Monahan: Next year, 2005, is projected to be a big year
for Hawaii’s meetings industry, with increases in all market
segments exceeding pre-9/11 levels.
M&C: Will the recent changes made at your
bureau remain once the economy recovers?
Doggett: Coming from the Commerce Department, I think
that, like for any product, you need research and development, so
we will continue reporting in good times and bad.
Tennant: Absolutely. I’ve seen three other major
downturns, and a lot of practices that got us in trouble before
were revisited. I don’t see that happening this time. The higher
level of customer attentiveness and aggressive and creative sales
will stay.
Wood: Some initiatives will stay and others will
experience the normal business cycle. I think financial incentives
are here for quite a while, to varying degrees.
Jones: Absolutely. One thing I did is to reorganize the
DCVB into a leaner, more efficient organization. We combined the
tourism division and sales division; combined all PR, marketing and
web-based activities in the marketing division; and restructured
some administrative components. We eliminated 14 positions from the
bureau. It will end up saving us a half-million dollars.
Monahan: Yes, Hawaii’s current tourism marketing
structure will remain in place for the foreseeable future.
M&C: What is it like to operate a bureau in
a time of increased public scrutiny and public accountability?
Doggett: I feel we have a sense of mission, hope and
purpose, and a sense of great potential. Although it’s tremendous
pressure, it’s also tremendous opportunity. I feel honored to serve
the people of Baltimore.
Tennant: Our position as a department within the city
government gives us certain parameters that keep us out of trouble.
Everything we do is open to review. I’ve always advocated internal
review and having a high level of structure, so it doesn’t bother
me personally.
Wood: I welcome it. It helps us to be good managers and
salespeople. We have to make sure everything we’re doing can pass
the blush test; if it doesn’t, then it’s something we shouldn’t be
doing.
Monahan: We are largely a publicly funded agency, so
the scrutiny comes with the territory. I absolutely don’t mind
that. I’m a strong believer in accountability. Personally, I’m
delighted to have the opportunity to play a pivotal role in
charting the success of Hawaii’s tourism and contributing to our
state’s economy.
M&C: How has your past experience
influenced your approach to your current job?
Doggett: In the government, research, accountability
and consensus-building are critical. In private business you can
make a decision and move forward, but in public businesses, you
need to build consensus and use analysis. It certainly helps to
have a national network. For example, we obtained the 50,000-person
National Baptist Convention, and it so happens the meeting planner
was someone I had known when I first went to the Commerce
Department, and we developed a positive working relationship.
Whiting: I’m sure my recent experience with
PricewaterhouseCoopers has prepared me well to lead this
organization, considering the detailed level of public scrutiny
accounting firms have been under post-Enron. Plus, my experience
conducting market, financial and economic-impact analyses for
facilities and destination marketing organizations has provided me
with a strong understanding of national and regional trends.
Monahan: Liberty House was very much intertwined with
the fortunes of Hawaii tourism, and as a consequence I’m well
acquainted with the workings of our visitor industry. I learned in
retail that success is perishable, and you can’t take business for
granted no matter who you are. There’s a direct relationship
between marketing and getting customers to buy your product. It’s
not optional.
Tennant: Back when I started at the Charlotte CVB, the
city was at a different stage in its destination development. The
convention center was just being built, and it took until the
mid-1990s for the city to be successful in the national association
market. So I bring a level of aggressiveness in selling a city that
had to create an image and name for itself in the marketplace. It’s
a blessing to come to a city like San Antonio that already is an
established destination.