BUSINESS TOURISM, Niš As A Conference Destination, Milan Komadina

VISOKA POSLOVNA ŠKOLA STRUKOVNIH STUDIJA
BLACE
DIPLOMSKI RAD
BUSINESS TOURISM
*Niš as a conference destination*
Milan Komadina
U Blacu, 2015. god.

VISOKA POSLOVNA ŠKOLA STRUKOVNIH STUDIJA
BLACE
BUSINESS TOURISM
*Niš as a conference destination*
- DIPLOMSKI RAD -
Kandidat: Mentor:
Milan Komadina 06/12T Marija Boranijašević
U Blacu, 2015. god
2
CONTENT
INTRODUCTION......................................................................................5
PART ONE – BUSINESS TOURISM
1. CONCEPT AND TYPES OF BUSINESS TOURISM….……………7

2. MEETINGS……………………………………………….…………….8
2.1. ASSOCIATION MEETINGS…………………………………………12
2.2. CORPORATE MEETINGS……………………………..…………….13
2.3. SMALL GROUPS……………………………………………………..14
2.4. THE MEETING INDUSTRY…………………..……………………..15
2.4.1. Meeting planners…………………………………………………….16
2.4.2. Dealing with meeting planners………………………………………17
2.4.3. Corporate travel manager……………………………………………19
3. INCENTIVE TRAVEL………………………...………………………21
3.1. THE INCENTIVE TRAVEL INDUSTRY……………………………23
4. CONVENTIONS ………………………………………………………25
4.1. VENUES………………………………………………………………27
4.1.1. Restaurants …………..………………………………………………27
4.1.2. Conference center.……………………………………………………27
4.1.3. Hotels…………………………………………………………………28
4.1.4 Academic and sporting venues….…………………………………….29
4.1.5. Other suppliers………………….…………………………………….30
5. EXHIBITIONS AND TRADE FAIRS…………………………..……..31
5.1. THE EXHIBITION AND TRADE FAIR INDUSTRY………..……….33
6. INDIVIDUAL BUSINESS TRAVEL………………………..………….34
6.1. Staff comfort…………………………………………………………….36
6.2. Staff safety………………………………………………………………36
6.3. Staff loyalty and morale…………………………………………………37
6.4. The individual business travel industry…………………………………38
6.5. Business travel agencies and agents…………………………………….40
7. TRENDS IN BUSINESS TOURISM…..……………………………….40
7.1. Economic trends………………………..……………………………….41
7.2. Growing corporate cost – consciousness ……………………………….41
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7.3. Technology
trends…………………………………………………………………………42
7.4. Social trends………………………………..……………………………42
PART TWO – CASE STUDY

Niš as a conference destination
1. THE CITY OF NIŠ………………………………………………………46

2. CONFERENCE FACILITIES………………..…………………………47
2.1. HOTEL “VIDIKOVAC”………………………...………………………48
2.2. HOTEL “TAMI RESIDENCE”…………………………………………48
2.3. HOTEL “GRAND”…………………………………...…………………50
2.4. HOTEL “RADON”………………………………………………………51
2.5. HOTEL “ALEKSANDAR”………………………………………………52
2.6. HALL “ČAIR”……………………………………………………………53
2.7. NIŠ’ FAIR……………………………………………………………...…54
CONCLUSION……………………………………….………………………55
REFERENCE………………………………………….………………………56
4
INTRODUCTION
People travel for many different purposes. A journey could be achieved for two main
reasons; a job - business obligation and a pleasure which is free choice. In practice, tourists, of
course, travel for pleasure. But it also doesn’t mean that some of them would not use possible
opportunity on vacation to establish some business contacts. On the other hand, business
travelers, as well, find some time dealing with tourism activities between meetings, seminars and
other business obligations. Travelling for the purpose of carrying out trade and engaging in
commerce was one of the earliest types of tourist activity undertaken by enterprising members of
ancient civilizations. Even at times in history when those undertaking any form of travel had to
contend with the ever-present dangers of attack from bandits, pirates and highwaymen, as well as
the severe discomfort of slowly progressing along poorly constructed roads or across perilous
seas, the business motive was strong enough to drive intrepid merchants and other entrepreneurs
to leave their native lands in search of distant markets in which to buy or sell goods and products
not found locally. Today, business tourism – principally travel for commercial, professional and
work related purposes – represents the major non-leisure form of tourism and business tourists
are widely recognized as the highest-spending categories of business tourism and the trends
affecting this industry. In this work we shall explain the phenomenon of business tourism giving
insight to its main concepts and types. We’ll introduce to readers main MICE division
exhaustively dealing with Meetings, Incentives, Conventions and Exhibitions (Fairs), theoretical
processing the structure of each part of MICE industries. Readers could learn much about some
special insights to modern trends in business tourism. In part two, there is a case study of special
emphasis on the business tourist area of the City of Niš and its potential for the development of
this form of tourism. Certainly, you will enjoy reading.
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PART ONE
(https://iwantabroad.files.wordpress.com/2011/07/157403m.jpg, accessed 20.05.2015.)
BUSINESS TOURISM
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1. CONCEPT AND TYPES OF BUSINESS TOURISM
One of the most important types of organizational business is group business. It is

important for marketing managers to understand the differences between a group market and a
consumer market. The group business market is often more sophisticated and requires more
technical information than the consumer market. Many group markets book more than a year in
advance. During this time, cognitive dissonance can develop; thus, marketers must keep in
contact with the buyer to assure them that they made the right decision in choosing the seller's
hotel. The four main categories of group business are conventions, association meetings,
corporate meetings, and SMERF (social, military, educational, religious, and fraternal
organizations) groups. Conventions attract large numbers, but meetings occur much more
frequently than conventions. There are about ninety-five meetings held for each convention.
Fifteen hundred people attend the average convention, 78 people attend the average corporate
meeting, and 165 people attend the average association meeting.1 When choosing a hotel, an
important consideration for a meeting planner is whether the hotel can house the participants.
Most hotels have the potential of attracting hundreds of small meetings, whereas larger hotels
can attract conventions. Group business is a very important segment for most hotels. Successful
hotels know which groups to attract, how to use group business to fill need dates, and how to sell
groups on the hotel's benefits rather than just price. The Convention Industry Council (CIC) is
made up of thirty-four member organizations that represent both buyers and suppliers to the
meetings industry. They recently developed the Accepted Practices Exchange (APEX), which
brings a set of standards and best practices to all parties involved in the creation and
implementation of a meeting. APEX's event specifications provide a template of a checklist for
planning an event, and its glossary brings a common meaning to terms used in the meetings
industry. APEX is a great tool for those involved in sell-mg or planning meetings.
Modern-day business tourism takes four principal forms:
• travel for the purpose of attending conferences and other types of meetings
• incentive travel
• travel to attend an exhibition or trade fair
• individual business travel
In the vast majority of cases, each category of business tourism is in some way connected to the
traveler’s professional life or their role in the buying and selling process that underpins much of
modern commercial life.
1
Kotler, P.,Bowen, J.T.,Makens, J.C.,2010. Marketing for Hospitality and Tourism, New Jersey: Pearson Education.
New Jersey, United States of America, p.181
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2. MEETINGS
Travelling in order to attend a meeting of some kind is one of the most widespread forms
of business tourism. Meetings take many forms and vary enormously in size and purpose, but the
meetings that stimulate business tourism are primarily those organized with an objective linked
to the attendees’ professional activity. This is most evident when the meeting’s attendees all
belong to the same profession or trade association. Many of the highest-profile meetings belong
to this association category of meetings. They can attract many thousands of attendees (or
participants or delegates, as they are also known) and their economic impacts on the destinations
in which they are held can be considerable. For example, the conference of the European Society
of Cardiology, the members of which are medical professionals specialized in cardiovascular
diseases, now regularly attracts over 20.000 delegates.2 These five-day events provide the
delegates from all over Europe and beyond with an invaluable opportunity to meet together and
exchange ideas and information on new challenges and new techniques related to the field of
cardiovascular medicine. It is clear that the collective spending of the delegates on items such as
transport, accommodation and catering brings extensive economic benefits to the business
operating in the cities in which this event takes place. The cities in which the conference has
been held in recent years are shown in the table 1. Not all meetings are of this magnitude,
however. The vast majority is held with colleagues who work for the same company, and these
are known as corporate meetings.
Table 1. Locations of the European Society of Cardiologists’ conferences, 1993-20073
Number of
Year and location
participants
2007 Vienna, Austria 23.091
2006 Barcelona, Spain 25.501
2005 Stockholm, Sweden 18.242
2004 Munich, Germany 19.049
2002 Berlin, Germany 19.342
2000 Amsterdam, Netherlands 17.112
1999 Barcelona, Spain 17.074
1996 Birmingham, UK 11.686
1994 Berlin, Germany 16.436
1993 Nice, France 10.516
2
Holloway, J.C., Humphreys, C. Davidson, R.2009, the Business of Tourism, Pearson Education Limited,
Edinburgh, England, p. 286
3
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Companies large and small have a number of reasons of organizing meetings of their staff, but
all are linked to the companies’ need to operate effectively in the field of business. Any
enterprise whether business, commercial or non-profit needs to plan for the future. For example,
many corporate meetings are held for the purpose of training staff in the skills, costumer relation
skills, information technology skills and so on, depending on the nature of company’s business.4
Other types of corporate meetings may be arranged with the objective of giving managers the
opportunity to discuss the company’s future strategies – for marketing, expansion, crisis
management and so on. Most such meetings are comparatively small (ranging from a handful of
employees to several dozen), so can be held in the type of small seminar rooms offered for hire
by hotels. Indeed, a visit to most 4-star and 5-star hotels will provide information on exactly
which corporate events are being held there that day as such meetings are usually prominently
listed in the reception area, for the benefit of the delegates attending them. All types of
companies organize meetings for their staff, but some sectors tend to have more meetings than
others. The finance (banking and insurance), medical and pharmaceutical, automotive and
engineering sectors are the principal markets, in the most countries, for the meetings industry.
While association and corporate meetings comprise the lion’s share of this particular form of
business tourism, they are not the only elements. Governments and political organizations at all
level (local, regional and national as well as international legislative bodies, such as the
European Commission) also need to hold regular meetings to discuss strategies choose
candidates and announce new initiatives. Among the most visible of these meetings are the
annual conferences of political parties that are held in most countries. In the UK, for example,
the 124th annual conference of the Conservative Party was held in Blackpool in 2007. It attracted
around 10.000 attendees5, including Conservative Members of Parliament and Members of the
European Parliament, councilors and policy advisers, as well as the representatives from the
press and other media, business groups, charitable organizations, think tanks and campaigning
organizations. The other types of organizations that frequently hold meetings are neatly
encapsulated in the American acronym SMERF, which stands for social, military, educational,
religious and fraternal. The SMERF sector of demand for meetings is a useful catch-all category,
covering most types that are not held by professional/trade associations, companies or
government organizations.
• Social meetings This segment includes all groups meeting primarily for social interaction,
such as collectors, hobbyists, special interest groups and non-military reunions. An
example of such a meeting would be the Harley-Davidson Owners Group’s 2008 annual
rally and convention that was held in the city of Fredericksburg, Virginia, and which
attracted 3500 attendees, generating 5000 room nights and resulting in approximately
$2,6 million of spending of spending for the local economy.6
• Military meetings This segment largely comprises the reunions of people who served in
the armed forces during periods of conflict. The intensity – and often tragedy – that can
characterize such conflicts means that those who lived through them often find comfort in
reuniting with their fellow fighters at regular intervals to discuss their wartime
experiences and commemorate their comrades who did not survive the hostilities. Many
4
Morden, T., 1993, Business Strategy and Planning, McGRAW-HILL Book Company Europe, England, p. 55
5
6
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such meetings bring together veteran serviceman and women, such as the 600 ex-
servicemen and women who attended the Battle for Malta Veterans Reunion that was
held in Malta over a 7-day period in 2006.
• Educational meetings Those who attend such events are generally teachers, lecturers and
academic researchers who meet in order to share their research in their particular subject
area, as well as new challenges and other developments affecting the teaching of their
specialist subject. A typical example of an educational meeting would be the annual
conference of ATLAS (www.atlas-euro.org), an international association of lecturers
specializing in the teaching of travel and tourism.
• Religious meetings Some of the largest gatherings organized in the world’s major cities
are for the purpose of bringing together, for one or more days, people who share the same
faith. At such events, worship and prayer are often combined with debates and workshops
during which topical issues relating to the attendees’ particular religion are discussed.
The 3000-person general assembly of the Presbyterian Church (USA) That was held in
San Jose in 2008 is an example of such a major religious meeting.
• Fraternal meetings This segment includes primarily meetings of sororities, fraternities
and other fraternal organizations. The attendees at fraternal meetings are often people
who went to school or university together and wish to reunite from time to time, to
relieve the memories of their student days. University alumni reunions are a typical
example of a fraternal meeting.
On a broader scale, this meeting classification includes smaller specialty organizations that are
price sensitive. The individual pays for the majority of the functions sponsored by these
organizations, and sometimes the fees are not tax deductible. They want a low room rate and
often find the food and beverage within the hotel too expensive, preferring to eat elsewhere or
purchase food and eat in their rooms. When SMERF organizations were asked about the number
of room nights for the largest function, the median was 485 nights at a budget of $180.0007.
Because attendees are price sensitive, one of the biggest challenges is to get the attendees to
book within the room block. The Internet has enabled attendees to search for lower rates for the
same hotel. Hotels often provide concessions such as free rooms or a free or reduced food and
beverage function based on the number of room nights in the group's block. If the block does not
materialize, the meeting planner is responsible for extra charges. On the positive side, SMERFs
are willing to be flexible to ensure a lower room rate. They are willing to meet during the off
season or on weekends. Weekends are often preferred because most participants attend meetings
during their free time. Also, the size of these segments should not be overlooked. In the United
States, over 50,000 religious organizations have group travel programs.8 Thus, SMERFs provide
good filler business during off-peak times. Someone new to hotel sales often starts with the
SMERF market.
7
Kotler, P.,Bowen, J.T.,Makens, J.C.,2010. Marketing for Hospitality and Tourism, New Jersey: Pearson
Education. New Jersey, United States of America, p.182
8
Education. New Jersey, United States of America, p. 183
10
Table 2. Segmentation of Group Markets by Purpose of the Meeting9
Sales Decision
Conventions Conferences Seminars Meetings
Variables
Many: committees, Conference Boss, secretary,

Seminar organizer,
Decision markers chapter presidents, organizer, meeting regional manager,
boss, secretary
high-ranking officers planner meeting planner
Decision influencers Many Limited Limited Few
Degree of
High political Somewhat political Personal Highly personnel
politicization
Short time;
Decision time Years One year or less Months
sometimes one day
Customer price
Very Somewhat Somewhat Not highly sensitive
sensitivity
Personal service
Low Moderate High Extreme
sensitivity
Opportunity for up
Low Moderate Moderate High
sell
Team selling
Definitely Sometimes Probably not No
opportunity
Special advertising
Definitely Usually no No No
promotion
Usually not, but

International Definitely Possible Probably not opportunities exist
(board of directors)
Repeat sales
Long time, poor Moderate time Yes Definitely
opportunity
Need for personal Depends on the

Probably yes Probably no Probably no
sales call (travel) situation
Besides dividing group markets into convention, association, corporate, and SMERF, they also
can be broken into the purpose of the meeting. Four major purposes are conventions,
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conferences, seminars, and meetings. Table 2. shows a matrix describing some of critical sales
decision variables for these types of gatherings. This matrix reflects the general nature of sales
decision variables within the group market. Exceptions can and do exist. A discussion of major
sale segments of the group market follows. While government and SMERF meetings display a
wide and often colorful variety of themes, the vast majority of meetings fall into either the
association of corporate segments, but they defer considerably from each other in a number of
important respects. Consequently, it is important to understand the distinguishing characteristics
of these two segments and be able to compare them accurately. Table 1.2. highlights some of the
most important contrasts between the association and the corporate segments of the meetings
sector of business tourism.
2.1. Association Meetings
Associations sponsor many types of meetings, including regional, special-interest,

educational, and board meetings. There are over 71,000 associations; 92 percent of them hold
meetings. These associations create 227,000 association meetings annually, generating meeting
business valued at $70 billion.10 For example, the American Marketing Association (AMA) has
chapters in many large cities. These chapters gather once a month, usually at a luncheon or
dinner meeting. The AMA sponsors or cosponsors educational meetings. It also has special-
interest meetings, such as the marketing educators meeting held every August and February.
Every major association schedules scores of meetings held throughout the year in various
locations. The most important attributes of a destination for an association meeting planner are
availability of hotel and facilities, ease of transportation, distance from attendees, and
transportation costs. Climate, recreation, and cultural activities are not as important as they are to
the convention market because the meeting itself is the major draw. In selecting a hotel, the
association meeting planner looks for food quality, rates, meeting rooms, billing procedures, and
attributes similar to the convention planner except for exhibition space. Notice that for the
association meeting planner, food and beverage are the most important attributes. Membership in
the American Society of Association Executives (ASAE) is beneficial for hotels actively
pursuing association business. It provides an opportunity to network with association executives
and is a source of information on national and local associations. Many of the hotel's corporate
clients are also members of trade associations. These customers can become ambassadors for the
hotel at their trade association meetings. Members attend association meetings voluntarily. The
hotel should work with meeting planners to make the destination seem as attractive as possible.
Making sure that the meeting planner is aware of local attractions, offering suggestions for
spousal activities, and assisting in the development of after-convention activities can be useful to
the hotel and the meeting planner. It is important to market both the destination and the hotel.
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2.2. Corporate Meetings
For employees of a company, a corporate meeting is a command performance. They are

directed to attend the meeting without choice. One implication of required attendance is a short
lead time. Because corporations do not have to develop and implement a marketing plan to gain
attendees, they often plan meetings with a few weeks lead time. Today, about 800.000 corporate
meetings are held with an average expenditure exceeding $36.000 per meeting, creating a $45
billion market.11 Corporate meetings are smaller than association meetings, and there are about
four times as many corporate meetings as there are association meetings. Many corporate
meetings are set up by mega agencies, such as American Express, Carlson Wagonlit, and
Consortia. These agencies provide travel management services for companies, and the meeting
planning area is a growing portion of their business. Thus, when seeking business from
corporations, a hotel manager must understand who has the responsibility for booking meetings.
The corporation's major concern is that the meeting be productive and accomplish the company's
objectives. Types of corporate meetings include training, management, and planning. Another
type of corporate meeting is the incentive meeting, discussed later. To a corporate meeting
planner, the most important attributes in the choice of a destination are the availability of hotels,
ease of transportation, transportation costs, and distance from the attendees. The most important
factors in the choice of a hotel are as follows:
• Food quality
• Meeting rooms
• Rates
• Sleeping rooms
• Wireless Internet access
• Two-line phones
• Fitness center
• Support service
• Billing procedures
Corporate meeting planners want to ensure that meetings are productive and the corporation gets
good value for the money it spends. Their success depends on planning smooth-running
meetings. Hotels interested in capturing and retaining corporate meeting business must make
sure that meeting rooms are adequate and set up properly. Because meeting planners want
attendees to be comfortable, sleeping rooms are important to them. They are also concerned
about the quality of food. Recreation facilities may also be important. In a multiday technical
meeting, the interaction of the participants outside the formal meetings is valuable. Golf or tennis
can be used to encourage participants to interact socially and break up the monotony of the
classroom sessions. Similarly, an evening outing to an area restaurant, sporting, or cultural event
can serve as an enjoyable break for participants. Corporate culture also plays an important part in
the choice of a hotel. Hotel salespeople must develop an understanding of the client's corporate
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culture to gain insight into benefits the hotel can offer. Some companies feel meetings should be
austere, rather than lavish. Such companies may feel they are setting an example for their
employees, encouraging them by example to spend money wisely. Others view meetings as a
time for employees to relax and enjoy themselves, a well-deserved break. Companies that
believe meetings should both educate and rejuvenate employees and build their enthusiasm
toward the company are willing to spend more money on food and beverage, entertainment, and
deluxe hotel facilities.
2.3. Small Groups
The small corporate meeting, less than fifty rooms, is gaining the attention of hotel
chains. Although small in terms of number of participants, thousands of small meetings are held
every month. Hotels and hotel chains have developed special packages for small meetings, a
segment often overlooked by large hotels. Upscale hotels such as the L'Ermitage and The
Peninsula, both in Beverly Hills; go after executive meetings where expense is not a problem.
Sheraton has also developed executive conference centers. These centers are designed for board
meetings, strategic planning sessions, and training sessions. The amenities in the centers were
developed as the result of focus groups with clients to find out what they wanted in small
meetings; these amenities were included in the executive conference centers and their smart
meeting rooms. Select Sheraton hotels in Europe offer "Sheraton Smart Meetings", a program
designed to provide small meeting planners with the technology needed for today's meeting. The
smart meeting offers rooms equipped with ISDN lines, data port entries in the floor, built-in
projection, and landline videoconferencing. Small meetings often have a thirty-day or less lead
time; thus, Sheraton has also expedited the reservation process by targeting meetings of fifteen to
forty people that book on short notice.12 The Holiday inn Oceanfront in Ocean City, Maryland,
near Washington, D.C., has developed a small meeting plan targeted at the many government
agencies located in the area. Their "government package" provides a double occupancy room,
continental breakfast, meeting room with audiovisual equipment, and morning and afternoon
beverage breaks for a set price per person. The set price makes it easy for meeting planners to
understand their costs. Simplifying small meeting arrangements is critical because those who
plan small meetings are often not meeting planners. The meeting package is available Sunday
through Thursday, reserving the weekends for leisure travelers who want to come to the beach.
12
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Table 3. Association and business conferences contrasted13
Association conferences Corporate conferences

Delegate numbers can be in the hundreds – even Delegate numbers tend to be fewer – usually under a
thousands. hundred and often a few dozen.
The decision process for choosing the destination can The decision process for choosing the destination is
be long and complex, often involving a committee. shorter and simpler – it is often made by one person.
Spending per delegate per day can be moderate, as the Spending per delegate per day can be higher, as the
delegates are usually paying out of their own pockets. delegates’ companies are usually paying.
These can last for several days, or even a week in the These are generally shorter and often last for only one
case of large international association conferences. day.
For associations conferences represent an opportunity For companies, conferences represent a cost that must
to make a profit, which can in turn be used to pay for be financed out of the profits made elsewhere by the
the associations’ running expenses. companies.
Many association events are held in large, purpose- Many corporate events are held in the seminar rooms
built conference centers. of hotels.
The lead-time for an association conference can be The lead-time for a corporate conference is usually
several years. much shorter than for an association conference
Association conferences are rarely cancelled as the Corporate conferences can be cancelled more easily,
by-laws of the association usually state that an annual particularly in times of financial hardship for the
conference must be held. company.
Delegates’ partners are usually welcome to attend Delegates’ partners are rarely encouraged to attend.
association conferences, so parallel partners’ programs
of events are often planned for them.
2.4. THE MEETING INDUSTRY
Since the Industrial Revolution, the economics of the United States and many other
countries have grown tremendously. As recently as 20 years ago, the expression “meetings
industry” was hardly ever used14, in the sense of an umbrella term describing all of those
business existing wholly or partly in order to provide the wide range of facilities and services
that are required to make meetings possible and ensure that they are run professionally and
effectively. Now, the use of this term is widespread and the meetings industry is firmly
established as an expanding and vitally important in its own right. The principal elements of the
meetings industry will now be reviewed.
Meeting Professionals International (MP1) defines a green meeting as a meeting in which
methods are used to create an environmentally sensitive meeting (use of the Internet instead of
paper, use of china instead of paper plates, donation of surplus food to a food bank, use of
recycling, etc.). The green practices of the meeting site should also be considered. Does the
facility derive any of its electricity from renewable, nonpolluting sources such as wind or solar?
Three areas come into consideration when conforming to green meeting standards. The first are
green standards that are built into the meeting facility. The Leadership in Energy / and
Environmental Design (LEED) Green Building Rating System provides design guidelines for
13
14
Abel, A. B., Bernanke, B. S., Croushore, D., 2008, Macroeconomics, Pearson International Edition, Boston, USA
p. 282
15
environmentally L friendly buildings. A good environmental plan begins with the construction of
the building. Once the building has been built, general facility management comes into play,
such as the temperature setting in the rooms, the use of lighting (changing incandescent light
bulbs to light-emitting diodes [LEDs] or compact fluorescent light bulbs), recycling programs,
and other programs that are implemented to minimize the negative effect of the meeting venue
on the environment. The third component is measures that relate specially to meetings that
involve both the meeting planner and the venue, for example, serving "boxed lunches" as a
sandwich buffet rather than using a disposable cardboard box with packaged chips and cookies
that some people will not eat. Bartenders can have cocktail napkins available but not
automatically give them with a drink. Some hotels and restaurants have installed water
purification systems, so they can serve bottled water quality from pitchers, eliminating the need
to use water in disposable plastic or glass bottles. Some suggestions for meeting planners include
providing electronic copies of PowerPoint slides on the Internet, rather than have copies made
for every attendee. Recycling name badges saves money and reduces solid waste. Green
meetings are good business. A recent study found that 90% of the 140 largest companies in the
United States believe that adapting environmentally responsible practices is important for their
reputation. This group also feels the importance of environmental sustainability will continue to
grow. Through recycling and donation programs, San Francisco's Moscone Center cut hauling
costs by half a million dollars per year. Serving bulk sugar and cream for coffee and tea cuts the
food cost on those items by over 50 percent. A survey of the Travel Industry Association of
America found that over 80 percent of the customers surveyed were willing to spend 6.5 percent
more on products and services provided by environmentally friendly companies.15 MPI claims
that some of its members live in low lying coastal areas or on small island states that will be
under water by the end of the century. Green meeting practices can enhance reputation, save
money, increase revenue and are the right thing to do for the planet.
2.4.1. MEETING PLANNERS
It is already evident from the above that the planning of meetings today can be a highly
complex task. The destination and the venue must be chosen, the attendees’ travel and, if
necessary, visa requirements must be taken care of and their accommodation arranged, plus
topics and speakers for the event must be selected. Some conferences, such as those of
associations, must be marketed to prospective attendees and registration payments processed. At
the actual event, someone must organize appropriate security measures, particularly if VIP
attendees or speakers are involved, and someone must liaise with and manage the providers of
audio-visual and catering services16. These tasks – and many more – are the responsibility of the
meeting planner. In recent years, the role of the meeting planner has increasingly been
recognized as a profession in its own right and its importance in the meetings industry cannot be
overestimated. Many now bear the job title “professional conference organizer” or PCO,
although a range of other titles exist, such as events planner, conference coordinator and
15
16
There’s an example of Gate Gourmet which is the world’s second largest catering company that manage to
provide 534.000 meals a day worldwide (Mangan, Lalwani, Butcher, 2008)
16
meetings executive. Many meeting planners are employed by a single organization – usually
association or a company – organizing, on a full-time basis, all of the meetings, seminars and
conferences that their organization needs. Others, often called independent meeting planners, are
self-employed, offering their services to a variety of association and companies on a consultancy
basis, charging a fee for the meetings that they organize on behalf of their clients. This
arrangement can be particularly beneficial to smaller organizations that do not hold sufficient
events on a year-to-year basis to justify having such a person on their payroll as a full-time,
permanent member of staff. What we have termed the “meeting industry”, therefore, comprises
those men and women who earn their living from the provision of facilities and services for the
successful running of meetings large and small. Managing and marketing venues, supplying
catering, interpreting and audio-visual services for meetings and taking responsibility for the
coordination and planning of the actual meeting event – these are the principal functions of those
who make successful events possible. It is worthy of note, however, that, while some individuals
and companies operate entirely and solely within the meeting industry, for many others, this
sector of business tourism represents only a part of their activities. For example, many venues, in
addition to providing space for meetings, also hire out their facilities for events such as concerts,
weddings, and graduation ceremonies. In many organizations, the planning of meetings is only
part of the job the person who undertakes the task, does – a part that they may not executive who
also organizes events from time to time. Many airlines and hotels, for example, are hardly aware
of the role that they play in supplying vital services to the meetings industry by transporting and
accommodating attendees and speakers.
2.4.2. Dealing with Meeting Planners
When negotiating with meeting planners, it is important to try to develop a win-win

relationship. Meeting planners like to return to the same property. Jim Jones, president of James
E. Jones Associates, states,17 "For me, prior successful experience is the number one factor in
choosing a site. Knowing the property takes away most of the anxiety. I know what the hotel can
and cannot do, and I know that they're familiar with the idiosyncrasies of my client. I never book
a hotel if I plan to use it once. Discussions over price can drive the meeting planner and the hotel
sales executive apart, or they can bring them together. One successful technique for negotiating
with a meeting planner is to determine the group's requirements in detail and work out a package
based on needs and budget. Some meeting planners try to negotiate every item separately,
starting with the room rate. Then they choose a $65 banquet and try to negotiate the price to $45.
In this scenario, every line item becomes a point of contention between the meeting planner and
the hotel salesperson. Taking a consultative approach is much more effective. If the hotel knows
that the meeting planner wants to spend $50 for dinner, the chef can develop alternatives within
this price range, suggesting something the attendees will enjoy, and the hotel can produce the
meal at a profit and sell it for $50. The hotel gains a profitable meeting, and the meeting stays
within the planner's budget. Debra Kaufman, an association meeting planner, states that if
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attendees are able to get work done while they are at the conference they will stay longer." If
space is available, the hotel can offer a small meeting room set up with business services,
including Internet access, computers, and printers. Given the space is available; this can be a
low-cost item to the hotel that has a high value to the meeting planner. The hotel salesperson
must remember that most group rates are no commissionable. Meeting planners sometimes turn
meetings over to travel agents, who book about 5 percent of all corporate meetings. If the
meeting planner does so without understanding that the rate is no commissionable, problems can
arise when the travel agent tries to collect a commission. If the rates are to be commissionable, it
should be determined during the negotiation process. It is also common for hotels to give one
complimentary room-night for every fifty room-nights that the group produces - another point of
negotiation. Suites are usually counted as two rooms. Thus, a suite for three nights would be the
equivalent of six room-nights. When a hotel has a smaller meeting room that it will not be able to
sell during a proposed meeting, it can be used in the negotiation process as a boardroom or a
space for the meeting manager to work. The hotel salesperson must look for items that will
create value for the meeting planner without creating costs or sacrificing revenue for the hotel.
Many associations have a president, elected from the membership, and a professional executive,
often called the executive vice president. In such case, the executive vice president usually sets
up the meeting or supervises a meeting planner. In larger associations there may be a paid
executive director, a convention manager, and one or more meeting managers who handle the
association's meetings. In some associations the elected officers also like to get involved in the
selection of sites and hotels for meetings or conventions. To further complicate matters, last
year's president usually becomes the chairman of the association's board of directors and, as
such, can hold great power in the association, as can other past presidents. It is important for the
salesperson to find out who is involved in the decision making process, both officially and
unofficially. Gatekeepers can give useful insights into the decision-making process within the
organization. When the vice president of sales asks a junior salesperson to organize a sales
meeting, the salesperson is usually unsure of how to proceed with newly assigned and unfamiliar
tasks. However, meeting administrators often know the business as well as the hotel salesperson.
Salespeople should listen to the meeting administrator to understand his or her requirements.
Sometimes they know exactly what they want and simply desire a quote for the meeting
according to their specifications. If this is the case, a salesperson trying to alter their
specifications arbitrarily can appear unprofessional and lose the meeting administrator's business.
For example, a hotel salesperson altered the meeting administrator's menu and developed a
quotation based on the altered menus. The meeting administrator was planning a series of
training sessions to be presented at various locations throughout the United States and had
developed menus to meet group needs. This uninvited intrusion by the hotel salesperson
infuriated the meeting administrator, who then proceeded to a competitive hotel. Most meeting
planners maintain a history of the group for the purpose of planning future meetings. This
includes past dates, locations, and attendance figures. They also have evaluations of past
meetings. A salesperson can gain valuable information by asking questions about past
conferences. These questions can provide insight into room pickups, attendance at banquets, past
problems with a hotel, and what their members have enjoyed. In addition to information
volunteered by the meeting planner, the salesperson should interview hotels that hosted the
conference in past years. Consider the following expectations of meeting planners. Meeting
planners want their calls returned the same day they are received. When they ask about the
availability of meeting space, they expect a response the same day and a complete proposal in
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five days. They want check in and checkout to last no more than four minutes. Most meeting
planners want their bill within one week of the event, and 25 percent want it within two days.
Planners feel that hotel management should empower the convention service manager to solve
their problems. They do not want to wait while the convention service manager checks with a
superior. Ultimately, when dealing with group business, the hotel has to please both the meeting
planner and the meeting planner's clients. These clients include those attending the conference,
association executives, and the president or senior officer of a corporation. Jonathan Tisch,
president and CEO of Loews Hotels, states,18 "What we're looking to do is to create a win-win
situation. If the senior officer is happy, then the planner's happy, and if the planner's happy,
we've done our job. One of the most important aspects creating a successful function is a pre
function meeting between the hotel staff and the meeting planner before the function.
Accounting should be at the meeting so they can get acquainted with the function to make sure
the bill meets both of their expectations. The bell captain should know if a gratuity for their staff
is included in the package. If it is, Renee Goetz, a meeting planner, states that the staff should be
instructed to say, "Thank you, that's been taken care of," when a guest offers a tip. The concierge
needs to know the meeting has open nights with no banquets because this will allow the
concierge to set aside tables at local restaurants. If garage space is limited, arrangements need to
take place to make sure there is adequate space for the group. The hotel staff that will be
receiving questions about the event and the event schedule, such as the front desk and operators,
should be briefed. The reservations agents should know the names of the group's VIPs and who
should get early check in privileges. Those responsible for receiving packages for the meeting
should know who will be sending packages and how they will be addressed so they can store
them properly. A pre function meeting going over the logistics of the meeting can go a long way
to creating a successful event.
2.4.3. CORPORATE TRAVEL MANAGER
A non group form of organizational business is the individual business traveler. Most
hotels offer a corporate rate, which is intended to provide an incentive for corporations to use the
hotel. Because of competitive pressures, most hotels have dropped the qualification requirements
for their basic corporate rate, offering it now to any businessperson who requests the corporate
rate. To provide an incentive system for heavy users, hotels developed a second set of corporate
rates. The basic corporate rate is about 10 percent to 15 percent below the hotel's rack rate; the
contract rate is a negotiated rate, usually 10 percent to 40 percent below the hotel's rack rate. It
often includes other benefits besides a discounted rate. Common benefits include morning
newspapers, upgrades when available, use of the hotel's fitness center, early check ins, and late
checkouts. When negotiating a corporate contract, it is important to understand what creates
value for the company. The corporate business traveler is a sought-after segment. Although the
corporate contract rate is a discounted rate, it is higher than the group rate. In addition to paying
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a good rate, the business traveler is also on an expense account and makes use of the hotel's
restaurants, health club, laundry, and business center facilities. The competition for business
travelers, once limited to mid-class and luxury hotels, has spread to limited-service hotels.
Budget and economy hotels now have a 34.5 percent market share of rooms generated by the
business traveler. The strong showing of economy hotels in this segment can be attributed to the
upgrading of amenities found in economy hotels and businesses needing to cut costs to remain
competitive. Companies that would have not considered putting their people in an economy
brand (two-star hotels) a few years ago are now using economy-brand hotels. These companies
realize that they can save thousands of dollars by purchasing less expensive accommodations and
yet meet quality standards of guests. Larger companies have corporate traveler management
programs run by the company or in house branches of a travel agency. These managers negotiate
the corporate hotel contracts. These are the most important attributes to the travel managers
when negotiating a hotel contract:
• A favorable image of the hotel's brand by the company's travelers

• Guaranteed availability of negotiated rate (Focus groups have told us that a quick way to lose
their business is to charge them a higher rate during citywide conventions or tell them rooms are
not available during these conventions.)
• Location
• Reputation of the hotel's brand
• Negotiated rate
• Flexibility on charges for late cancellation of room reservations
In addition to developing corporate hotel contracts, the travel managers set per diem rates,
specifying the amount a company traveler can spend on food and beverage. Often, these rates are
set at different levels, with the per diem amount increasing as one move up in the corporation. It
is important to find out what a company's per diem rates are to determine whether the hotel is in
the company's price range and what level of manager the hotel can expect to attract. The hotel
can use this information to determine the volume the company will give them. For example, if
the per diem for a company's salespeople is in the hotel's rate range, the hotel can expect more
volume than it could expect if only the executive management falls within the price range. Some
corporations use in/house travel agencies, or in-plants, that also represent other corporations,
providing the advantage of negotiating leverage. A business represented through an in-plant may
have only 100 room nights a year in New York, but the travel agency represented by the in-plant
may service ten companies with a total of 1.500 room nights in New York. The travel agency can
negotiate a rate based on the 1.500 room nights and pass this rate along to the individual
companies. The hotel compensates in-plants by straight commissions, monthly fees, or a
combination of a fee and commission.
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3. INCENTIVE TRAVEL
One particular type of meeting is usually regarded as being sufficiently as distinct from
all the others to justify it being given its own separate category. Incentive travel is the name
given to the travel, usually in groups, of employees who have been awarded a luxury trip,
entirely paid for by their company, as a prize of high achievement at work. The practice of using
incentive travel to motivate19 employees to work harder was originally started by American
companies in the 1950’s and employers in the USA are still the major generations of this sector
of business tourism. Since then, however, for use of incentive travel has spread throughout
industrialized world and is now widely recognized of being one of the most effective
management tools for encouraging employees to be more productive and make a greater
contribution to their employers’ profitability. The Society of Incentive Travel Executives (SITE),
defines incentive travel as “a global management tool that uses an exceptional travel experience
to motivate and/or recognize participants for increased level of performance in support of
organizational goals.” Most incentive trips are won by individuals (or teams) who have sold,
within a given period, the most units of whatever it is their companies make weather this is
tractors, insurance policies, pharmaceutical products or any other type of manufactures goods or
services. For this reason, most of those who travel on incentive trips are members of their
companies’ sales forces. Put simply, a company using incentive travel as a reward will announce
a competition to their sales force, informing them that their individual or team sales figures
during a particular period (often 12 months) will be recorded for the purpose of determining who
sold the most during that time. The prize for being one of the most successful salespeople during
that period is the incentive trip, typically of three to five days duration, which will be described
in detail and in the most enticing terms, in order to encourage the sale staff to do their utmost in
order to win the trip. It would be no exaggeration to say that incentive travel is one of the most
luxurious, highest spending and therefore lucrative forms of tourism that exists. In order to
motivate employees to work harder to achieve greater results in the workplace, the travel prize
they are competing for must be an extremely attractive one. This is particularly the case when
those competing to win the prize are managers who travel often, on business and for leisure, and
are therefore not easily impressed by yet another flight and another hotel in a foreign destination.
Exotic destinations, luxury accommodation and a dazzling variety exciting and exclusive
activities are classic features of incentive travel. Incentive travel winners – those who get to go
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Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of
voluntary behavior. Direction refers to the path along which people engage their effort. This sense of direction of
effort reflects the fact that people have choices about where they put their effort. In other words, motivation is goal-
directed, not random. People are motivated to arrive at work on time, finish a project a few hours early, or aim for
many other targets. The second element of motivation, called intensity, is the amount of effort allocated to the goal.
For example, two employees might be motivated to finish their project a few hours early (direction), but only one of
them puts forth enough effort (intensity) to achieve this goal. In other words, intensity is how much you push your-
self to complete the task. Finally, motivation involves varying levels of persistence—that is, continuing the effort for
a certain amount of time. Employees sustain their efforts until they reach their goals or give up beforehand. To help
remember these three elements of motivation, consider the metaphor of driving a car in which the thrust of the
engine is your effort. Direction refers to where you steer the car, intensity is how hard you put your foot down on the
gas pedal, and persistence is how long you drive toward that destination (Hill, McShane, 2008).
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on these magnificent trips – must be given the impression that they are privileged and greatly
valued by their employers, which is why incentive trips must be delight and indulge those who
are fortunate enough to receive this form of reward for their performance of work. The key work
here is “work” for, although incentive travel participants may look and behave like leisure
tourists – dressing casually, relaxing, sightseeing and enjoying sporting and/or leisure activities –
the motive underlying their trip is most definitely connected to the participant’s working life,
which is why this form of travel is firmly categorized within the business tourism sector.
Nevertheless, there are clearly alternative ways to motivate staff to work harder and reward them
when they achieve outstanding results. The tool most commonly used cash bonuses for those
who reach specific targets in their work. Gradually, however, more and more employers are
beginning to realize that the use of incentive travel as a reward offers them a number of
advantages that simply awarding staff the cash equivalent does not. Companies give awards for
both individual and team performance. For instance, the employees of the best performing region
might be recognized. Michael Kennedy, manager of retail development at Isuzu Commercial
Truck of America, has kept his Winners' Circle program going through the 2008 economic
turndown.20 He states, "If you polled our salespeople, the Winners' Circle would be right up there
as one of the reasons they want to work for us." This shows the power of a well-planned
incentive program. The top-tier Winners Circle members go to a lavish international destination;
the silver winners go to an exciting domestic destination. Kennedy demonstrates the value of an
incentive trip by recapping the percentage of sales that come from the winners, which is always
high. A hotel salesperson selling incentives must be able to help their client justify the
expenditure. Percentage of sales of the attendees is an excellent way to do this. Because travel
serves as the reward, participants must perceive the destination and the hotel as something
special. Climate, recreational facilities, and sightseeing opportunities are high on an incentive
meeting planners' list of attributes looked for in a site. The Caribbean, Hawaii, Europe, and resort
destinations within the continental United States are common incentive travel destinations.
Incentive trips used to last from three to seven days; however, the current trend is to keep the
trips short and get the participants back to their jobs. Scott Walker, director of incentive and
promotion certificates for Hyatt Hotels, states, "I am hearing, 'Let's change it from five nights to
four, but add extras.' These extras include meals, spa treatments, a round on the golf course, or
Hyatt Cheque certificates that they can spend any way they want."21 The average expenditure per
room is high. Winners of incentive trips sometimes receive a cash deposit to their account that
can be used for charges to their account or services provided through the hotel, such as rental
cars. For example, participants in an incentive trip sponsored by Revlon for the best regional
sales performance received a $500 credit on their hotel bill that could be spent as they wished. In
such cases the participants spend freely in the hotel's restaurants and bars, often supplementing
the credit with their own money. Thus, incentive travel can be very profitable for a hotel. Like
other leisure travel, the experience is important. Brian Jones, vice president of sales for Le
Meridien Hotels & Resorts, states, "It is no longer about having good hotels in the right
locations. Now it is about creating unique experiences that motivate, celebrate, or educate. The
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more we speak to these issues the more successful we will be."22 Incentive travel planners
usually determine the budget on a per person basis. It is important for hotel salespeople to
recognize that incentive meeting planners work on a per person cost because certain costs may
not be proportional. For example, a meeting room may cost $8 per person for fifty people, but
the cost can be reduced to $4 per person for 100 people. Similarly, the entertainment for a gala
banquet may cost $2,000 - if 100 people attend, this is $20 per person; if 200 attend, and the cost
is reduced to $10 per person. When the meeting planner is thinking in per person costs, the hotel
salesperson must also think in per person costs. In 2007 per person expenditures for an incentive
meeting were $3.400.25.23 Incentive travel is handled in house or by incentive houses, travel
agencies, consultants, and travel fulfillment firms that handle only the travel arrangements. The
trend is moving away from in-house planners to incentive houses, fulfillment houses, and travel
agencies. One reason for the shift is that outside organizations specializing in incentive travel
often buy blocks of airline seats and hotel rooms. As a result, they can put together packages
more efficiently than in-house planners. Incentive houses usually provide a choice of several
locations to the company, so the ultimate choice of location is made by the company, even when
it uses an incentive house. The hotel must work with both the incentive house and the decision
makers within the company.
3.1. THE INCENTIVE TRAVEL INDUSTRY
In our review of the principal elements of the meetings industry, it was seen that a
number of specialist suppliers are required in order to make the effective functioning of meetings
possible – venues, audio-visual companies, interpreters and so on. By way of contrast, the
incentive travel sector of business tourism largely makes use of the same services, facilities and
recourses that are used by leisure tourists – airlines and other forms of transport, hotel
accommodation, tourists attractions, guides, shops, cultural and sports events and so on. Of
course, the incentive travel sector does tend to make most use of that end of the tourism market
spectrum characterized by 4- and 5-star hotels, exclusive restaurants and privileged, private
access to tourist attractions and prestigious events. The one type of specialist agency required in
order to facilitate the functioning of the incentive travel industry is the incentive travel house.
This is the term commonly used for an agency that designs incentive programs for its clients –
companies using this technique to motivate their staff. Agency staffs are professionals who
oversee the entire operation, from designing the rules of the competition for employees and the
selection of winners, through the choice of the destination and activities for the incentive trip to
the planning of the detailed logistics for the trip, including all transport, accommodation and
catering arrangements. While some companies entrust the planning of their staff incentive
programs to high-street generalist travel agencies, they are in a small declining minority. Most
companies understand that the planning and execution of incentive trips is so extremely technical
and demanding in terms of the high expectations of the winners, that this process is best placed
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in the hands of specialist incentive travel houses. One of the many pressures that those employed
by incentive travel must contend with is the necessity of creating the essential “wow” factor for
every trip they organize. It is often claimed that “wow” is the most important word in the entire
lexicon of the incentive travel sector of business tourism as any trip that fails to surprise, delight
and inspire the participants in this way can fairly be said to have failed in its objectives.
Supplying that “wow factor”, as all incentive travel professionals understand, is not simply a
case of spending vast amounts of the client’s money on extravagant entertainments for its
winning employees. Great creativity and imagination are the essential qualities required by
anyone wishing to work in this aspect of the incentive travel industry. A vivid, but not
particularly unique, example of these qualities at work in the design of an incentive travel
program is the group of incentive winners on a trip to Finnish Lapland, who were given fishing
rods and instructed of how to cut a round hole in the Arctic ice so that they could spend the day
fishing as Eskimos do. The cost of this simple activity was minimal, but the impact of the group
was outstanding. It fired them with enthusiasm and enchantment – as all good incentive trips
should. There are many advantages of incentive travel. Employees spend time with each other, at
leisure. This informal networking offers them the opportunity of getting to know each other
better, which in turn can help create a stronger team spirit when they return to work, having
shared a number of enjoyable and memorable experiences together. For the few days of the trip,
the company has an opportunity to inculcate some of its most productive employees with
“company values”. Pep talks are common features of incentive trips – motivational speeches
praising the incentive travel winners for their hard work and extolling the qualities of the
company they work for. This is one of the management techniques employed by companies to
reduce staff turnover and, in particular, retain those employees who make the most valuable
contribution to their company’s profitability. Incentive travel is more effective than money at
encouraging non-winners to try harder to win the next competition run by their company. The
incentive travel winner’s absence from work and their subsequent return, full of stories of what
they have seen and done on their trip make this a highly visible prize, as opposed to money,
which is far less likely to be discussed with colleagues. Non-winners can be motivated to work
harder to win next time when they hear their colleagues recount their incentive trip experiences.
An incentive trips offer those who participate in them the opportunity to relax and/or engage in
physical pursuits, it means that they tend to return to work refreshed and rested and this boost to
their wellbeing can be beneficial to their performance in the workplace. At the same time, it is
undeniable that the use of cash awards offers its own advantages, when compared with sending
high-achieving staff on incentive trips. Cash awards are attractive by the very nature of their
simplicity. Money is always welcomed by the recipient, but the participant’s response to an
incentive trip is less predictable. Poor weather, the wrong choice of incentive destination or
disappointing accommodation are among the factors that can turn what should be an enjoyable,
motivating reward into its opposite. No loss of productivity. When some of the company’s
highest-performing members of staff are absent from work for several days, enjoying an
incentive trip, the impact on the company’s profitability can be considerable. With cash awards,
the winners continue to work and there is no negative impact on the company’s sales figures.
When it comes to flexibility the employee in receipt of a cash bonus for meeting a demanding
sales target, for example can spend the money on whatever he or she wishes or needs. This,
should be, of course, a holiday or short break, in which case the tourism industry benefits for the
spending of this award, but it could equally be spent on home improvements, repairs to the
family car or simply invested in a savings account. Finally, in an era when attention is
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increasingly being focused on employees’ work-life balance – the balance between the time they
spend working and the time they spend with friends and family – it is widely recognized that
awarding an incentive trip, however luxurious, as a prize for high achievement at work does
mean that the participants are automatically obliged to spend additional time away from home in
order to take part in the trip. This may not always be welcomed by employees, particularly those
who already find themselves spending evenings away from their friends and families, travelling
on company business. Cash bonuses, therefore, can be a more motivating prize for such
employees.
4. CONVENTIONS
Conventions are a specialty market requiring extensive meeting facilities. They are
usually the annual meeting of an association and include general sessions, committee meetings,
and special-interest sessions. Hotels with convention facilities, such as the Chicago Hyatt or the
Atlanta Marriott Marquis, can house small and midsized conventions. Conventions that use a
major facility, such as the Jacob Javitts Convention Center in New York, often have tens of
thousands of delegates. They are called citywide conventions because hotels throughout the city
house their delegates. There are almost 14.000 conventions held each year in the United States.
Convention delegates stay an average of 3.6 days and spend an average of just over $1.500 per
event. Of this amount about $350 is spent on lodging.24 Associations usually select convention
sites two to five years in advance, with some large conventions planned ten to fifteen years
before the event. October is the most popular month for conventions, followed by November,
September, and April. Some associations prefer to have their conventions in the same city year
after year, whereas others prefer to move to a different area of the country each year. A
convention can be a major source of income for the sponsoring organization. Registration fees
from attendees and sales of exhibition space in the trade show are major sources of revenue. A
trade show gives suppliers to the association's members a chance to show and sell their products.
Companies such as GES Exposition Services work with the association and conference center to
provide electrical hookups, booth setup, and other services to make sure the trade show
exhibitors have the resources they need to set up their exhibits. The price that can be charged for
exhibition space is related to the number of attendees. When choosing a convention location, an
association looks for sites that will be both accessible and attractive to members. Balancing the
annual budget depends on a good turnout. Convention planners listed the following as the most
important factors in choosing a destination:
• Availability of hotels and facilities

• Ease of transportation
• Transportation costs
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• Distance from attendees Climate
• Recreation
• Sights and cultural activities
Here are the most important attributes of the hote1:
• Meeting rooms
• Negotiable rates
• Food and beverage quality
• Sleeping rooms
• Support services
• Billing procedures Check in/checkout
• Staff assignment
Note that food quality is very important to the convention planner. Exceptional banquets, out of
the ordinary receptions, and unique coffee breaks can be a point of differentiation at a
convention, something the attendees will discuss with colleagues. In contrast, poor food and poor
service can generate negative feelings about the convention among the participants. Support
services must be available when needed. A nonfunctioning DVD player must be repaired or re-
placed quickly to ensure that the presenter's flow is not interrupted. Many hotels contract with
independent audiovisual (AV) companies to supply and maintain this, equipment. In large hotels,
AV companies have an office in the hotel to store equipment and house technicians. For large
meetings, AV companies have on-site technicians to remain with the group during the meeting to
correct problems as they occur, thus ensuring that speaker presentations proceed as planned.
Having your meeting online for meeting planners to access is important because more than 30
percent of meeting planners use meeting-specific software. Almost all meeting planners (99
percent)25 use the Web for information with convention and visitor bureau, hotel, and local city
sites the top ones visited. Billing procedures are also important to convention planners. Billing
can create problems for hotels that take it for granted and do not have a customer-oriented
accounting department. Professional meeting planners want a bill that is understandable,
accurate, and delivered in a timely manner. Without these characteristics, the bill can be a
nightmare. Important attributes for a convention planner other than facilities and rates are food
quality, billing procedures, and the professionalism and attention of the hotel's staff. Convention
bureaus are nonprofit marketing organizations that help hotels sign conventions and meetings.
These organizations are often supported by a hotel or sales tax and are run by chambers of
commerce, visitor bureaus, or city and county governments. They are often one of the first
sources of information for a convention or meeting planner. A hotel relying on meeting business
for a significant portion of its occupancy should have a good working relationship with the
convention bureau, which includes active membership in the organization.
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4.1. VENUES
All meetings require some form of venue in which the attendees can gather for the
duration of the event. Derived from the Latin verb venire (to come), the word venue is used to
denote the building in which delegates come together in order to attend the event. In its most
basic form, a venue comprises four walls, a roof and a collection of chairs for the delegates’
comfort, but the variety of venues is almost as great as the variety of meetings held within them.
4.1.1. Restaurants
Restaurants are designing their space so they can take advantage of meetings. A room off
of the main room that can be closed off for meetings give the restaurant the option of using it as
part of the public dining space on Saturday night or a meeting room during a weekday.
According to a meeting research firm, meetings held in space of 700 square feet or less (20 feet
by 35 feet) increased by over 25 percent in the past two years. Meetings of 50 people or less can
be a great source of business for a restaurant. Many times they are held at off-peak times, such as
during a weekday. Restaurant Dante in Boston does a great private events business with 70
percent26 of its business coming from small corporate meetings, and it has its own marketing and
events manager. Many restaurants are adding private rooms and hiring salespeople to gain their
share of the meetings market.
4.1.2. Conference centers
The city centre locations, sheer vastness and often iconic designs mean that these
buildings are certainly the most visible indication that any city is active in hosting large
meetings. Many conference centers, such as the harbor front Hong Kong Conference and
Exhibition Centre, have become important symbols of the cities in which they are located27.
These venues are most often used for meetings requiring large open spaces and are built on a
scale that enables them to accommodate hundreds or even thousands of delegates. In addition,
they generally offer space for the types of exhibitions that are often run in parallel with large
conferences, as well as the high-quality audio-visual and other technical facilities that are
essential to the success of such large-scale events. In their construction, conference centers are
either of the purpose-built or converted types. Most are purpose-built that is, they were originally
and solely planned to be venues for conferences. Many of the most interesting and charming
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27
According to statistics there are around 700.000 conferences held annually within Great Brittan including one day
meetings (Rabotic,2012)
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conference centers, however, particularly in Europe, were converted into meeting venues from
their original, different, function. Prisons, hospitals and factories are just a few of the types of
buildings that have been converted into conference centers to serve the meetings industry. For
example, the Mediterranean Conference Centre in Valletta, Malta, was originally constructed as
a military hospital, but was converted into an out-standing conference venue in 1990.28
Their immense capacity makes conference centers, purpose-built or converted, particularly
suitable for large meetings of associations. Because, as mentioned, attendees at international
association conferences can number in their thousands, conference centers are usually the only
type of venue capable of holding meetings on this scale, particularly when, as is often the case
with medical events for example, space is a required in which to situate a parallel exhibition of
products relating to the theme of the conference.
4.1.3. Hotels
Long before the first conference centers were built, meetings were regularly taking place
in rooms designed for the purpose in inns and hotels and, to this day, they remain the preferred
type of venue for most of the world’s meetings. Whether hotels are situated are situated in city
centres, suburban locations, airports or rural areas, most depend to a significant extent on the
income they earn from renting out their meetings rooms and the conference-related spending on
catering and (for residential events) accommodation. Many hotel chains have branded their
meetings facilities to ensure that customers using them are assured consistent standards of
facilities and quality, wherever in the world a particular hotel may be located. With the notable
exception of the “convention hotels” found in US cities such as Las Vegas, which offer meetings
facilities capable of hosting conferences of several thousand attendees, most meeting spaces
located in hotels are designed for smaller events of several dozen or several hundred attendees.
Indeed, many hotel boardrooms are exclusive venues for fewer than 20 attendees. The average
size of seminar rooms and other meeting facilities offered by hotel venues makes them eminently
suitable for corporate events such as staff training sessions or senior management strategy
meetings. Hilton Meetings brand is designed to provide personalized meeting services that
enable clients to hold successful and hassle-free meetings for groups of 50 guests or fewer.
Hilton Meetings was created in 2000 at Hilton hotels in the United Kingdom and Ireland and
gradually expanded globally, finally being introduced to the majority of Hilton hotels in North
America in 2008. Hilton business clients can choose between a formal boardroom setting and
flexible multipurpose room for their small meetings. These well-designed layouts are
complemented by guaranteed standards of Hilton Meetings service and amenities that aim to
minimize the environmental impact while offering time-saving technology and consistent
personalized service. Hilton Meetings guests have access to fresh and contemporary meeting
spaces with high-quality furnishings, local artwork to help stimulate creativity and advanced
technology to keep guests plugged in. All rooms include a 3MTM Digital Easel that instantly
records flipchart content electronically into a variety of formats for Mac and PC computers and
enables collaboration with participants in multiple locations via a shared meeting application.
Radio-controlled clocks, keeping accurate local time, help keep guests on time, while high speed
28
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Internet connectivity keeps guests connected. Tables are designed with build-in table-top power
and data points for easy connections and chairs offer extra comfort with their padded armrests
and lumbar support. Meeting rooms also contain a refrigerator and safe that can hold at least four
laptops, have doors that lock for added security and outside-in spy hole viewers to minimize
disruption. Dedicated meetings specialists are assigned to each Hilton Meetings room to assist
with individual service needs. A “Service Connect System” button links guests directly with their
meeting specialist. Each meeting planner receives a welcome kit containing specific details about
their event, the hotel and the meeting space and a welcome wallet holding lunch and break
menus. Hilton also serves Hilton participants food and beverage items specifically selected to
help boost their energy and keep their minds sharp (such as peach smoothies or mini shish
kebabs with lemon yogurt sauce) along with complementary tea and coffee served all day.
Hitlon’s e-Events online group booking tool, Guest List Manager and Personalized Group Web
Page features allow event planners to easily book their group event or meeting and promote their
event to attendees. The Hilton meetings products reinforce Hilton’s commitment to
environmental sustainability. The hotelier has reduced the use of chrome in meeting room
furniture and fixtures and is using sleek and hard surfaces for tables to eliminate the need for
linens and the chemicals used for cleaning them. To further support the brand’s efforts to
increase local sourcing, artwork featured in rooms is acquired from local artists. “Hilton
meetings” is also fully supported by new online event management and meeting planning tools,
which helps to reduce paper waste. In-room signage provide guests with tips on how to be an
environmentally sensitive meeting participant, such as turning of the lights before leaving the
room and recycling paper when it is an option. Also, rooms include eco-friendly meeting
materials made from recycled paper and biodegradable ink. These materials are placed on self-
service stands to eliminate full place settings of notepads and pens, which often create
unnecessary waste. The further attempt to reduce waste of notepads contains lines on both sides
on each page.
4.1.4. ACADEMIC AND SPORTING VENUES
In many countries, universities and other educational institutions are active suppliers of
meetings facilities, particularly during student holyday periods and weekends, with their lecture
theatres, classrooms, audio-visual facilities and catering services, such venues offer everything
that is required to host meetings, large and small. When such meetings are hosted outside the
teaching period, student accommodation may also be used by those attending residential events.
In several countries, universities have created their own marketing consortia to promote
themselves as meetings venues. For example, Venuemasters (www.venuemasters.co.uk) is a
consortium that promotes the facilities available for hire to meeting planners at over 80 academic
venues in the UK. Venuemasters’ members are venues that are either owned by an educational
establishment or have as their core business the provision of further, higher and professional
education. The consortium offers a venue-finding service for organizations and companies in
search of meeting rooms and, if needed, accommodation for their events. While rarely offering
the standards of luxury found in 5-star hotels, academic venues have the advantage of being able
to offer their facilities at fairly comparative rates. For that reason, they are often used as the
location for meetings where attendees are paying out of their own pockets and costs have to be
29
kept at the moderate level. Certain association events as well as some types of SMERF meetings
are therefore natural clients of the academic venue sector of the meetings industry. This category
includes the meetings facilities offered by a wide range of properties such as museums, stately
homes, castles, theatres and theme parks as well as other tourist attractions such as zoos and
aquariums. For most of these, the provision of meeting facilities is an activity that is secondary to
the property’s principal function, but, nevertheless, an important source of revenue. For example,
many sporting venues, such as football stadiums and horseracing tracks, supplement the income
they earn from such events by hosting meetings when the facilities are not being used for their
original and principal purpose. The world-famous Stade de France in Paris is a typical example
of an unusual venue of this type, advertising itself as a meeting venue for events of up to 5.000
attendees.29 The main motivation for holding a meeting in an unusual venue is to make the event
memorable and attractive to attendees. The organization holding the meeting can also benefit
from the reflected glory of the great prestige associated with certain unusual venues. For
example, any meeting held in the Victoria and Albert Museum in London will automatically
benefit from the considerable cachet associated with such a venerable institution.
4.1.5. OTHER SUPPLIERS
It is clear that, in order to run a successful meeting, such more is required than simply a
suitable venue. A wide range of facilities and services is necessary for the smooth running of any
such event. Attendees need to be fed and refreshed at regular intervals during the meeting, so the
provision of food and beverages is vital, whether for a simple coffee break or lunch or the type of
sumptuous gala that is often held on the final evening of a grand conference. On such occasions,
the decoration of the tables and the dining room can be as important as the quality of the food
and wines, particularly for prestigious events. As well as professional catering, most meeting
makes extensive use of audio-visual resources to make their events look and sound as good as
possible. This is one of the ways in which the production of meetings has changed most in the
past few decades. The days of conference speakers making use of a flipcharts or overhead
projector to communicate with their audiences are long gone. In the twenty-first century,
information and communications technology has revolutionized the meetings industry, as it has
so many other sectors. Multiple screens, PowerPoint presentations and surround sound quality
are now widespread, turning many large-scale conferences, such as those of political parties, into
veritable “shows”, characterized by high quality sound and near television production standards.
In an increasingly globalized world, the provision of the interpreting services is of growing
importance as meetings may well be attended by delegates who speak a variety of different
languages. Conference interpreters are the people whose considerable skills make multilingual
meetings possible and conference centers are generally designed to include interpreter’s booths,
where professional interpreters can listen to, translate and relay the conference speakers’ words
simultaneously and accurately – no easy feat.
29
Edinburgh, England, p.293
30
5. EXHIBITIONS AND TRADE FAIRS
Some of the largest flows of business tourists are to be found when many thousands of
people gather in a destination for one or more days to attend an exhibition. As the subject of this
chapter is business tourism, the types of exhibition under consideration here are not of a cultural
nature, such as exhibitions of paintings or sculptures found in the art galleries and museums, but
events were the exhibitors hire stands (or in American English, booths) to present their
companies’ goods or services to those visiting the exhibition. Although the word “exhibition” is
often used generically, it is common to distinguish between exhibitions, which attract the general
public, and trade fairs (known as trade shows in the USA), which are mainly attended by
business visitors. Thus the Union des Foires Internationales (UFI), now known as the Global
Association of the Exhibition Industry, gives the following definitions:
Exhibitions are market events of a specific duration, held an interval at which a large number of
companies present a representative product range of one or more industry sectors and sell it or
provide information about it for the purposes of sales promotion. Exhibitions predominantly
attract the general public.
Trade fairs are market events of a specific duration, held at intervals, at which a large number of
companies present the main product range of one or more industry sectors and mainly sell it on
the basis of samples. Trade fairs predominantly attract trade and business visitors.
Those who travel in order to attend exhibitions are generally members of the public seeking to
buy, or find information about, goods or services that they need for their own personal
consumption. An example of this type of event could be the Stitch & Craft show
(www.twistedthread.com), which is held each year at the Olympia exhibition centre in London.
It is open to anyone from the general public whose hobbies include stitching, knitting and
handicrafts such as making greetings cards and jeweler. Visitors can purchase a wide range of
materials and tools necessary for their hobby, as well as attend creative workshops and
demonstrations at which they can learn new techniques. Similarly, in each of the Polish cities of
Warsaw, Krakow and Poznan, an annual exhibition, called the Education Fair, is held, organized
by the World Educate Business Association (WEBA). The event is divided in two areas, one for
universities and colleagues and the other for boarding schools and high schools. Those who
attend the exhibition are young people and their parents seeking information on study
opportunities in Poland and other countries (www.webafairs.com). Those who visit trade fairs
are people who are in search of goods and services that are vital to the effective functioning of
their businesses. For example, the biennial Forest Products Machinery & Equipment Exposition
(www.sfpaexpo.com), held in New Orleans in 2009, showcases the latest products and services
for the wood products industry, with manufacturers of industrial sawmill machinery, cranes,
forklift trucks and other items essential to the forestry industry exhibiting their wares. Clearly,
these are not intended to be purchased by members of the public for their own personal use, but
by forestry and wood-processing professionals who attend this event, for business purposes. An
industry much more familiar to the most people is the cinema sector of entertainment, which also
has its own trade shows throughout the world. One such event is Cinema Expo International,
held at the Amsterdam RAI venue (www.cinemaexpo.com). Those who travel to this event, from
all over Europe and beyond are mainly proprietors and managers of cinemas in search of
31
information on, and the opportunity to purchase, the latest equipment and services required by
their businesses, such as seating staff uniforms, food and beverage kiosks, amplifiers and
projection equipment. Having made this distinction between exhibitions and trade fairs, it is
certainly not the case that all events fall neatly into one or the other category. It is possible for
the same event to be both an exhibition and a trade show. For example, an event primarily aimed
at those running businesses in the construction industry may also be open to members of the
general public who are interested in DIY as both categories of visitors to such an event will be
keen to see the vast range of building materials and tools on show. It is common in some cases to
have certain days that are reserved for trade visitors only and others were the general public may
also attend. It is clear that each one of all the hundreds of thousands of goods and services that
we use in our personal and professional lives are bought and sold at their own exhibitions and
trade shows, in destinations all over the world. From everyday objects such as shoes, books and
mobile telephones, through much more expensive items such as cars, boats and holiday homes,
to services such as educational courses, investment products and ski holidays, they all have their
specific events, sometimes regional, sometimes national and sometimes international, to which
potential customers can travel, in order to obtain information, negotiate and even possibly make
a purchase. Regarding patterns of travel to such events, it is often claimed that travel to
exhibitions fallows a different pattern from travel to trade shows. As most visitors to exhibitions
are members of the public – people travelling with their friends and/ or family members – they
tend on the whole to be making day trips to such events. For example, a family may go to a local
exhibition to visit a ski show with a view to buying new ski equipment or booking a ski holiday.
For the family this is a pleasant day out, the journey often made by car – much like the trip to
their local shopping centre. By way of contrast, many trade shows are of such a highly-
specialized that they attract business visitors from other regions and, indeed, other countries,
even continents. Such visitors, because of the distances they have travelled, tend to stay longer at
their destination, creating valuable business for hotels and restaurants, as well as for the transport
companies. Not only do travel patterns for exhibitions and trade shows differ, but this sector of
business tourism may also be distinguished from the other sectors covered in this chapter in the
sense that both exhibitions and trade shows stimulate the travel of not one but two groups of
people: the exhibitors and the visitors. So, whether the visitors are families on day trips or
business owners who have travelled internationally to attend the event, the exhibitors inevitably
remain in the destination for the duration of the trade fair or exhibition, bringing business to the
local hospitality industry. At large events, the numbers of exhibitors can be substantial. For
instance, the number of exhibiting personnel at the World Travel Market in London) rose to over
20.000 in 2007 (www.wtmlondon.com, making it extremely challenging for anyone to find a
vacant hotel room in the city during the four days in November when the event took place. A
total of 7400 professionals from 69 nations attended the three-day Euro Attraction Show held in
Seville, Spain, in January 2007 (www.euroas.com). As it was a trade show, it was closed to the
general public, so visitors were primarily owners, general managers and operators of amusement
and theme parks, family entertainment centers, water parks and carnivals. Additional attendees
represented fairs, exhibitions, zoos, aquariums, museums and science centers. Over 270
manufacturers exhibited their amusement park rides, inflatable attractions, high-tech automata,
such as robots, theme park food and beverage products and costume characters. Moreover, like
many trade shows, the Euro Attractions Show offered a number of other valuable reasons for
visitors to attend, in addition to the products on display. There was an educational program,
featuring presentations from industry experts on topics such as current trends in theme park
32
attendance; there were tours of local attractions; there was a series of industry meetings featuring
debates on issues affecting amusement and theme park businesses; and there were networking
events for industry professionals, at which they were able to make new contacts and renew
acquaintances with other owners and managers in this sector of the leisure industry.
5.1. THE EXHIBITION AND TRADE FAIR INDUSTRY
The successful planning, marketing, hosting and execution of exhibitions and trade shows
calls for the concerted efforts and expertise of a wild range of specialist professionals. Exhibition
halls and exhibition centers rent out their facilities to provide the basic shelter and security that
are necessary when hosting these events. They also have to provide all necessary utilities such as
electricity, water, gas and communication connections (telephone, ISDN, the Internet), as well as
a clear signage system. Infrastructures such as restaurants, parking areas (usually one for
exhibitors and another for visitors), toilets and entrance areas, are often integral parts of these
venues. Moreover as conference and seminars are often held as well as fairs and exhibitions,
appropriate meeting room facilities are also included at these venues. An exhibition halls and
exhibition centers are often vast buildings, requiring many hectares of space; they are frequently
situated in areas where land is cheaper, well away from city centers. Frequently, they are to be
found in between the city’s centre and its airport, where there is ample space for parking and
easy access for visitors arriving by air. Venues may be either owned by the local municipality, as
is generally the case in countries such as Germany, Italy and France, for example; or privately
owned and rented out with a view to making a profitable return for their owners. Opened in
January 1982, the Geneva Palexpo (palais des expositions, www.geneva-palexpo.ch) is situated
at Geneva International Airport and 3.5 kilometers from the city centre. It has played host to 35
million visitors since its opening. To put that figure into perspective, it equates to
approximately 80 times the current population of Geneva itself. The ensuing economic benefits
for the canton of Geneva have amounted to many billions of Swiss francs. During the time it has
been open, the available exhibition surface area has doubled to reach 102.000 square meters of
continuous, covered exhibition space. The venue also offers the following services.
• Event organization, marketing services a team of multilingual professionals is available to help

organize an event.
• Press and public relations for all communication and media activities.
• Organizing the stand Technical services to plan and build the stand.
• Logistics and transportation help in handling and clearing customs.
• Security, access, traffic, parking easy access, parking and security, designed by professionals.
• Utilities (electric, plumbing) electrical and plumbing services will help in enabling stands to
run power and water.
• Telecommunications and audio-visual A team of professionals to design turnkey solutions.
• Onsite caterer - the official caterer provides a high-quality service for all types of catering
throughout the Geneva Palexpo site
33
• Catering partner - the selected catering partners provide a high-quality service, both within the
exhibition halls and on the stands
While large venues such as the Geneva Palexpo are the places where by far the most exhibition
and trade shows are held, it is important to remember that many smaller events may be held in
hotels or other buildings such as arenas, concert halls or conference centers. Some events, due to
the nature of events being exhibited are, in fact, more suited to outdoor venues. For example,
agricultural shows, where live stock and farm machinery are on show, or aviation trade shows,
such as the annual EUR-AVIA event (www.eur-avia.com) held at Cannes Mandelieu
International Airport on the French Riviera, are generally held in the open air.
The organizers of these events are the people and organizations that create the exhibition or trade
show, rent the venue then market the event to prospective exhibitors and visitors. They earn a
living from identifying opportunities for new exhibitions or trade shows and running these
events, usually on a regular basis, for profit. A considerable amount of research must be carried
out by them initially, to determine whether or not a particular theme for an exhibition or trade
show is viable – in other words, are there sufficient numbers of exhibitors who are prepared to
pay to have stands at an event dedicated to their industry? In turn, potential exhibitors will only
agree to buy space at an event if they are satisfied that sufficient potential buyers will visit it,
making their investment worthwhile. Therefore, one of the key tasks of organizers is to market it
widely to potential visitors. The mark of a successful exhibition or trade show is when most
exhibitors are satisfied with the numbers of visitors coming to their stands and most visitors are
satisfied with the variety and range of products of display range of products on display and,
further, both groups consider it worthwhile returning to the event at a future date. As stated
earlier, visitors and exhibitors attend these events not only to buy and sell but also for the
opportunity to attend educational sessions and networking events during the exhibition or trade
show. It is another responsibility of the organizers to ensure that an interesting and topical series
of seminars is programmed during the event and there are adequate opportunities for the
attendees to mix and mingle informally - for example at opening receptions or after-hours
cocktail parties. Most exhibitors rely on specialist contractors to design and build their stands. In
recent years, this task has become an increasingly creative and technical one as stand design has
become more imaginative and elaborate, using new materials and new technology to make
exhibition stands ever more eye-catching and attractive to visitors. High visibility is essential at
such events where every exhibitor is vying with all others to entice visitors to approach their
stand and engage with those who are there to sell or provide information on their companies’
products. Color, layout, lighting and prominent display on the companies’ logo all have a part to
play in making a stand attractive and welcoming to visitors. Contractors may also be used to
construct the stand before the event and dismantle it at the end.
6. INDIVIDUAL BUSINESS TRAVEL
The final sector of the business tourism industry that was identified earlier is that of
individual business travel, which may also be termed corporate travel. This sector comprises the
trips of all men and women whose work obliges them to travel, either regularly or on occasional
basis. These employees are often known by the somewhat tongue-cheek title of “road warriors”,
34
due to the time that they spend “on the road” carrying out company business. In the modern
world, most organizations require some of their employees to travel from time to time in order to
conduct some aspects of the company’s business. Often, the objective of such trips is to find new
customers, in which case a sales or marketing manager may be required to travel in order to
present the company’s products or services to prospective clients and negotiate prices with them.
As companies expand internationally, with branches in more than one country – and more and
more often, as a result of globalization, in more than one continent – staff find themselves
travelling to meet their colleagues in other branches and work with them for a few days to solve
a problem or share their expertise. This type of transient movement of staff between different
branches of a company is another driver of individual business travel. Some people, whether they
are company employees or self employed, find themselves travelling regularly on business due to
the nature of the job they do. For example, most investigative journalists, whether for the print
media, radio or television, could not work effectively without frequently travelling in order to
carry out their enquiries. Similarly, those who have highly specialized skills, such as hostage
negotiators or opera singers, often find themselves travelling to where their skills are needed at
any particular time. Given, therefore, the number of reasons that exist for employees travelling
on company business, it should come as no surprise that individual business travel is a major
expense for many firms. Indeed, spending on business travel is second only to spending on staff
pay. For this reason, most companies put into place a number of measures to control and limit
their employees' spending on transport and accommodation while travelling on company
business. The main technique used for this purpose is the company's travel policy. It is rare these
days for any company or organization (except, perhaps, for the smallest) not to have a written
travel policy giving staff clear guidance on how they can and, more crucially, cannot spend their
employer's money on individual business travel. Most such policies will state, for example,
which class of air travel the employee is entitled to use when flying somewhere on behalf of the
company. Typically, this will depend on a variety of factors, such as the length of the journey to
be undertaken (short-, medium- or long-haul) and the employee's level of seniority within their
company (junior, middle or senior management). Similar constrictions may be included in the
travel policy for other elements of business trips, such as the class of hotel that may be used or
the class of vehicle that may be hired. In this way, companies and organizations attempt to avoid
the type of anarchic free-for-all that could arise if no controls were in place. Many companies
find it worthwhile employing a business travel manager to monitor the travel of employees and
ensure that they comply with the travel policy. Business travel managers may also have the
responsibility of negotiating with suppliers such as airlines, hotels and car hire companies on
behalf of their employer. Large companies, in particular, are in a powerful negotiating position
by virtue of the sheer volume of travel their employees undertake each year. So, while members
of the general public using hotels only once or twice a year have very little leverage in terms of
negotiating rates for overnight accommodation, a company with a sales force of 50 people,
spending between them several thousand nights per year in hotel rooms, is advantageously
positioned to bargain with a hotel chain that has properties in the cities visited regularly by its
salespeople. A common task of the business travel manager, therefore, is to negotiate with a
limited number of airlines, hotel chains and car hire companies, guaranteeing them a certain
volume of business annually in return for preferential rates for the company. When such
agreements exist, the employees are generally instructed (in the travel policy to use those
suppliers rather than others with whom the employer has no preferential rates. Nevertheless,
although companies are constantly seeking the best value for money from travel companies and
35
accommodation providers, it would be a mistake to believe that they always look for the very
cheapest fares and hotel rates for their staff that are travelling on business. There are three main
reasons for employers wanting to avoid cutting their business travel costs to the bare minimum:
• Staff comfort
• Staff safety
• Staff loyalty and morale.
6.1. Staff comfort
Travelling in comfort can be an important consideration when it is vital that staff arrive at
their destination fully refreshed and immediately ready to do the job that they have been sent to
do. Managers taking a long-haul overnight flight may save their company a considerable sum of
money by travelling in economy class, but the probability that they will be able to sleep well and
work at their seat - on their laptops, for example - is much less than if they were travelling in
business class, with more personal space, more legroom and less likely-hood of being kept
awake all night by the crying baby from hell in the seat behind them. If they have not been able
to rest and relax, they will hardly be in a fit state to attend an important business meeting in order
to make a presentation or negotiate on behalf of their company. They may even need a day to
recover from the flight, which means that an extra night in a hotel must be paid for, as well as
meals and other expenses. Most importantly, a whole day's work may effectively be lost after
both the outward and return journey, due to the business travelers’ loss of sleep. When all of
these considerations are taken into account, the economy class ticket may seem less of a bargain
than it appeared to be at the time of booking.
6.2. Staff safety
Employers have a legal duty of responsibility to do everything within reason to ensure the
safety of those travelling on company business. It is often claimed that business travelers face an
even greater range of dangers than those travelling for leisure purposes. They are much more
vulnerable, due to the fact that they are likely to be travelling alone, they make more attractive
targets for criminals as they may be carrying information in their laptops that could be
commercially valuable if it fell into certain hands and, in some countries, businesspeople may be
targeted by kidnappers, who understand that their employers will be prepared to pay a substantial
ransom for their safe return. Women travelling on business often feel the presence of these and
other dangers more acutely than men and a great number of self-help organizations and web-sites
(such as www.womentraveltips.com) exist to give advice on how to stay safe when travelling on
business. The safety of business travelers must therefore be of paramount concern to their
employers. Accordingly, when a company's employee has to arrange to stay overnight in another
city, in order to meet a client, for example, the company will usually authorize the booking of a
room in a city centre hotel, although it may be much cheaper to book a room in a more distant,
36
suburban hotel. This reduces the business traveler's need to travel around by taxi or public
transport in an unfamiliar situation, thereby decreasing risk.
6.3. Staff loyalty and morale
Although many claim to enjoy it, individual business travel can be extremely trying at
times. It temporarily separates people from their friends and families and can be a source of
stress and frustration, in the same way that travel for leisure purposes can. Jet lag, grueling
security measures at airports and loss of opportunities for exercise are just a few of the of these
privations, business travelers also feel that their companies are cutting travel and accommodation
costs to the bare minimum, they are hardly likely to feel positively about the firm they work for.
Resentful and unmotivated members of staff tend to feel very little loyalty to their employers.
So, most companies, keen to retain their most valuable members of staff, will avoid adopting a
penny-pinching approach to travel expenses and will resign themselves to paying for the
occasional in-room movie or mini-bar item enjoyed by their intrepid road warriors.
6.4. THE INDIVIDUAL BUSINESS TRAVEL INDUSTRY
Most of the facilities and services used by individual business travelers are also used by
leisure travelers. Few of the specific needs of business travelers will be considered and
contrasted with the requirements of those travelling on holiday or for other leisure purposes. A
glance at the type of full-page advertisement paid for by airlines targeting business travelers, or
at those who book their trips, shows that a major priority for those travelling on company
business is punctuality. The expression 'time is money' certainly applies to the countless hours
spent each year by business travelers waiting at airports or railway stations for delayed or
cancelled flights or trains. Notwithstanding their personal stress levels and frustration, well-paid
executives in this situation are (even in the age of wireless communications and laptops)
generally far less productive than they would be if they were at their desks working. Punctuality
and reliability of service are therefore much sought-after qualities for the individual business
travel market. Frequency of services is also a feature that is taken into account by business
travelers choosing which carrier to use. Many individual business trips have to be flexibly timed,
due to the uncertainty that can exist over when the work will be completed and the traveler is
able to make the trip back home. Negotiations, for example, can run into unforeseen
complications that delay the return trip or, conversely, they can go faster than expected, leaving
the business traveler free to return to base earlier than planned. In either case, a frequent
transport service allows for the flexibility that is required by the traveler faced with an
unanticipated change of schedule (the ability to make last-minute changes to their itineraries is
often given by business travelers as a further reason for avoiding the very cheapest fares, as these
rarely offer the advantage of this type of flexibility). An onboard environment conducive to work
37
is key. As mentioned earlier as a justification for the use of business class seats, the ability to
work while on the move is a preoccupation of many business travelers - and their employers.
Even before the ubiquitous laptop became an indispensable item in the carry-on luggage of
anyone between the age of 16 and 60, those travelling on business tended to work for at least part
of their journey - briefing themselves to prepare for their meeting, catching up on work-related
reading, working through company accounts and so on. A tranquil environment, good lighting
and, on trains, Wi-Fi connectivity and power sources for laptop computers and mobile
telephones are examples of the types of facilities much sought after by those who wish to remain
as productive as possible while travelling on business. As with transport, accommodation that
offers guests the ability to continue to work productively is at a premium for the business
traveler. While leisure guests may be attracted to hotels that promise to be a 'home away from
home', business guests tend to seek facilities that turn a hotel into an 'office away from the
office', with Internet connections and the possibility of having documents faxed, photocopied
and even (in some hotel business centers) translated. Lounges in business-orientated hotels are
just as likely to be used for one-to-one business meetings as for drinks between leisure guests.
There are also a number of other hotel services that are particularly appreciated by the business
market, such as early check-in/late check-out, laundry services and the serving of meals in hotel
bedrooms.
6.5. BUSINESS TRAVEL AGENCIES AND AGENTS
All but the very smallest companies and organizations tend to use some form of
intermediary to book their business travel services. Some may use their high street travel agency,
if their business travel needs are fairly simple and low-volume, but most medium and large-scale
companies make use of specialist business travel agents or travel management companies
(TMCs) as they have come to call themselves — to make their travel arrangements, including the
booking of transport and accommodation, providing advice on visa and vaccination issues and
even, in some cases, issuing guidance on business etiquette for the destinations concerned. In
order to keep control of spending on business travel, most companies opt to employ a single
TMC, usually chosen following a competitive tendering process and remunerated on a
management fee basis. Some TMCs are small to medium sized businesses, but others, such as
American Express Business Travel and Carlson Wagonlit, are vast companies with a global
presence. Business travel agents have spent a lot of time and effort during the past decade or so
justifying their existence. To a large degree, the agents have been responding to the challenge of
the Internet and the threat that customers would desert them in favor of online booking channels
or simply do it themselves. The erosion and, in many cases, wiping out of commissions paid by
airlines changed the way travel agents were seen and how they perceived themselves. No longer
simply agents of suppliers, they began to call themselves travel management companies (TMCs)
and the commission was replaced by fees to clients. A good thing, too, some said, because it
would concentrate minds on the value of services being provided, but it also forced the agents to
demonstrate that savings passed on to customers were significantly more than the fees they
charged. This in turn spurred them to develop new services, such as providing companies with
38
increasingly sophisticated information on the travel habits and expenses of their employees.
Have the TMCs succeeded in making the case? The answer is a qualified yes. Mike Platt, group
industry affairs director of Hogg Robinson Group, claims the cost of using a TMC is 'no more
than 5 percent of corporate travel expenditure but can reduces overall spending by as much as 30
per cent. About 20 per cent comes in the form of air fare savings, partly by ensuring that
travelers stick to company policy, flying whenever possible on airlines with which the company
has negotiated ticket discounts and sometimes added value in return for providing those carriers
with certain levels of business. Much of the other 10 per cent, says Mr. Platt, is 'all the bits round
the back', such as accounting and credit control.30 We have won the major battle in that
companies have been over us with fine-tooth combs and we have persuaded them of the value we
offer. The next battle is to persuade the travelers, who don't see those benefits. When they are
asked to pay they don't see the bigger picture. They see a low fare they can book direct online
and ask why they are paying us extra. The challenge for us and their employers is to get them to
buy in, otherwise they will be more tempted to book outside travel policy. He readily concedes
that HRG needs to keep reinventing itself. It has been working towards providing analyses of
total trip costs, so that travel managers would be able to review all the implications, say, of a
traveler's decision to book a low-cost flight from its impact on targets agreed with a preferred
airline to the sometimes unconsidered cost of huge taxi fares from a secondary airport miles from
town. 'We see ourselves more as a provider of various corporate services rather than purely
making bookings. We are doing a lot of work helping clients to deal with anything from a flu
pandemic to reducing the carbon emissions caused by travel.' The attacks of September 11 2001
underlined the importance to companies of being able to locate their staff in emergency. TMCs
have taken on this task. American Express Business Travel, for example, has launched Track
Point, a Web-based tool which enables corporate travel managers to track down staff in the event
of such disasters. It is already available to customers in North America and Europe, and is being
piloted in the Asia-Pacific region. Security delays at US airports have prompted efforts to spare
frequent flyers the worst effects. BRD Travel, for example, is planning to offer US customers
discounted access to the Transport Security Administration's registered traveler program, which
will be operated by the private sector. With companies under increasing pressure to limit their
contributions to global warming, TMCs are either already providing or planning to provide them
with assessments of carbon emissions. The global distribution system (GDS) operator Sabre has
developed a product that will help them do this. Each report is divided into four sections
detailing the number of air segments (single flights) booked over a given period, distance flown,
the amount of fuel burned expressed in kilograms and liters, the quantity of CO2 produced as a
result and a breakdown of the other greenhouse gases produced. All this activity appears to be
paying dividends. Figures from the UK's Guild of Travel Management Companies indicate an
overall increase in trips organized by its members over the past two years. Total transactions
with suppliers - airlines, rail operators, hotels and car rental companies - increased from about
10.2 million at the end of March 2004 to just over 11 million a year later and some 12.2 million
by the same date this year.31 It seems, says the Guild's chief executive Philip Carlisle. that the
business of business travel is quite healthy. A survey published by Carlson Wagonlit Travel
painted a similarly optimistic picture in the short term. It showed that in North America and the
30
31
39
Asia-Pacific, 63 per cent and 59 per cent of corporate travel managers expected their company's
expenditure on trips to rise this year, while only 8 per cent and 11 per cent believed it would
decrease. Europeans were a little less buoyant, with 49 per cent anticipating an increase and 15
per cent fearing a drop. In all cases, the remainder believed spending would match that in 2005.
In the longer term, however, TMCs may still have some defending to do. A significant majority
of the managers questioned by CWT (87 per cent, 75 per cent and 76 per cent respectively)
thought it 'very' or 'somewhat' likely that travel would be increasingly supplanted by video
conferencing over the next five years. Self-booking tools, which can be primed to establish travel
policy, may persuade some companies whose staff makes predominantly straightforward
bookings to eliminate the middleman. (Roger Bray, 'Business travel agents', Financial Times, 4
September 2006).
7. TRENDS IN BUSINESS TOURISM
The rest of this chapter looks at some of the most important trends that will present
opportunities and challenges to the global business tourism industry in the years ahead. Many of
those trends are already emerging and others may be anticipated because of changes in the wider
market environment. The market for business tourism services and facilities is an extremely
dynamic one that is highly sensitive to changes in the political, economic and social
environment. This sector is also affected by the accelerating rate of innovation in information
and communications technology. On one hand it offers significant opportunities for the
development of more attractive business tourism products, but, on the other, may also create
certain threats to the long-term prosperity of this sector.
7.1. Economic trends
The rise of new business tourism destinations in many developing economies of the
world is a major - and ongoing - phenomenon in this sector. People travel for a variety of
reasons, such as leisure, visiting relatives, medical treatments and of course business reasons.
Service sector holds the most important position in the structure of the world economy,
participating in the creation of GDP of a large number of developed and less developed countries
with over 60 percent.32 As recently as 60 years ago, North American cities and European capitals
had a practical monopoly over the hosting of inter-national association meetings, for example.
They were virtually the only places equipped with the infrastructure required to host these large-
scale events. The decades since then, however, have seen a burgeoning of destinations entering
all sectors of the business tourism market: Australasia, South East Asia, South America and,
more recently, Central and Eastern European countries and cities in the Middle East have entered
32
Petrovic, P. Mirkovic, A., 2010, The Business of Tourism, No. 6/2010, The importance of tourism for regional
development and cross-border cooperation; Smith, R. A., 2012, The Business of Tourism, No. 9/2012, Corporate
social responsibility: economic influence of tourism and sustainable development, The College of Tourism,
Belgrade, Serbia
40
the market as vibrant new destinations for the hosting of meetings, trade shows and incentive
trips. At the same time, developing economies create additional demand for business tourism
events as their new businesses add to the need for corporate events, and members of the
expanding professional classes increasingly have the means to travel to conferences and
exhibitions in other countries. This phenomenon is particularly seen in China and India, two of
the world's fastest-growing economies, and countries widely believed to be major sources of
international business tourism consumption in the years to come. These two countries represent
the two economies that are set to generate the greatest expansion in outbound business travel for
the short and medium term. Citizens of these countries are already travelling to other destinations
in their own regions, on business, but they will extend their scope to Europe and other long-haul
destinations in rapidly increasing numbers in the years ahead. In China, growing levels of
personal disposable income, Chinese companies' investment overseas and a fast-increasing
number of international air connections with cities in major destinations are factors that will
ensure the rapid growth of Chinese outbound corporate meetings and incentive trips and Chinese
delegates at international association meetings and exhibitions in the near future.
7.2. Growing corporate cost-consciousness
As competition between business tourism venues and destinations intensifies, buyers

have become aware that they are purchasing services in a buyer’s market. Much of the corporate
market in particular has lost no time in reaping the benefits of this situation and meeting planners
have quickly learned how to negotiate to their best advantage. With no sign of imminent change
in the relationship between supply and demand, corporate buyers are set to become even more
cost-conscious in the years ahead. Almost every survey of demand for business tourism events
suggests that corporate buyers expect the number of events they organize to increase in the
immediate and short term future, but there is no corresponding indication that their budgets are
going to increase at a proportional rate. On the contrary, most surveys reveal a general reduction
of per-delegate expenses as the central issue for many companies becomes that of ensuring better
overall value and a higher return on their investment. Therefore, all business tourism
destinations, and the venues within them, must constantly look for ways to manage their tariffs
and demonstrate the cost effectiveness of these. Quality, but at an attractive price, will be a
dominant requirement for the foreseeable future, as the majority of businesses now recognize the
strengths of their considerable purchasing power.
7.3. Technology trends
Information and communications technology (ICT) has already transformed many

aspects of the business tourism sector and there is no doubt that further advances in ICT will
continue to have a profound impact on how such events are planned, promoted and experienced
in years to come. Young people now entering employment in this sector will never understand
the extent to which the Internet alone has revolutionized the planning, marketing and execution
of events such as conferences and exhibitions. It is rare indeed, nowadays, to find a major
41
conference or exhibition without its own website, where potential participants can read, in
advance, full details of the event, register to attend and plan their schedule for the event itself.
Developments such as PowerPoint and hand-held devices that allow the audience to respond in
real time to conference presentations have enhanced delegates' experience, while radio frequency
identification (RFID) promises to make the tracking and identification of exhibition visitors more
efficient. The rate of Wi-Fi deployment in conference and exhibition venues and in large hotels
is expanding fast and is increasingly expected by people travelling on business.
7.4. Social trends
Changes in the profile of the global working population have, in turn, had a very
significant effect on the profile of participants in business tourism events. The most prominent of
these is the ongoing increase in the proportion of women in professional employment. Women's
share of professional jobs continued to increase in the first few years of the twenty first century
in the vast majority of countries, and this trend shows every sign of continuing. Women are
already well represented in a number of professions, such as healthcare and finance that are
expanding rapidly in most countries. Women are also making inroads into traditionally male-
dominated professions. For example, in some countries, the women's share of the ICT sector is
already significant. This continuing trend means that there are more women travelling on
business, for all work related purposes, including participation in conferences and exhibitions.
The growing presence of female delegates at such events has had a number of impacts on
business tourism services, from how conference and exhibition venues are designed (more toilet
facilities for women), to the food served during breaks (lighter and generally healthier). Another
indication of the feminization of the market is the increase in popularity of spas as incentive
travel products - and not only for women. Partly through the influence of female participants, the
spa has become an amenity that a growing number of delegates expect in hotels and resorts.33
The European and North American working population is ageing significantly and will continue
to do so for the foreseeable future, adding to the proportion of those in employment who are in
the older age categories. Increasingly, people in their sixties and seventies are remaining in
employment, either through choice (they find fulfillment through their work) or through
necessity (they cannot afford to retire). With a significant proportion of workers in the older age
groups working in managerial and professional positions, it is highly likely that they will
continue to travel on business and to business events, for a number of reasons.
• Because they can! As members of the baby boom generation start to enter their sixties, it is
clear that they are considerably healthier, fitter and more socially involved than those of the
previous generation were at that age. Travelling to business events and fully taking part in them
presents them with none of the physical challenges that their parents would have faced in their
sixties.
33
Modern, fast and urbanized way of life results in great stress consequences on the human body. As a consumer of
such a life, men is unable to allocate more time than a few hours to relax and recharge vital energy, so Spa and
Wellness centers become places for a quick and efficient recovery of energy which is necessary to the body to
continue to function normally (Todorovic, 2013).
42
• Older workers understand that networking is particularly important to them as the type of upper
level management positions they are often seeking are not likely to be advertised. Attending
conferences of their professional associations provides them with a valuable opportunity to
network.
• There is a positive relationship between older workers staying in the workforce and their need
for ongoing training opportunities. Particularly with so many older workers continuing to work
in the fast-evolving 'knowledge industries', constant in-service training events are vital to them
for keeping their skills up to date. This means that they will be increasingly present at corporate
meetings that have a training objective.
• A growing number of retired people are choosing to continue being members of their
professional associations - in many cases, for the mental stimulation that profession-based
meetings provide, as well as for the opportunity to maintain contact with colleagues.
Over the next few years, associations will face growing difficulties in attracting attendees to their
events. This is partly due to the prevalent phenomenon of people being time poor that is, a
growing number of association members have extensive demands on their limited time. It
appears, however, that the new and upcoming generation of association members “Generation
X” (those born between 1964 and 1977) and “Generation Y” (born between 1978 and 1994) -
may also take some convincing that there is value in attending conferences. Generation Xers,
unlike their parents, do not so readily see the value of face-to-face events. As they have grown
up with electronic media as a primary communication tool, face-to-face events are less attractive
to them (this is even more the case with Generation Yers). If this contention proves to be
accurate, it presents serious meeting attendance issues for associations, as these two generations,
between them, account for a combined demographic of 120 million people in the USA alone.
What can be done to reach this vast and growing section of the workforce and interest them in
attending MICE events? Understanding their profile, developing strategies and targeting each
group with appropriate messages is the key to motivating Generations X and Y to join
associations and attend their conferences. Both groups have a sophisticated understanding of
technology and expect it to be well utilized; the Web wins over traditional media as a primary
source of information; they often select personal fulfillment over monetary rewards, seeking a
casual work environment, telecommuting options and time off to enjoy life. As time moves on,
the behavior and preferences of Generations X and Y will come to shape corporate and
association life. Therefore, time spent now in understanding their needs and convincing them of
the rewards of attending face-to-face events will reap rewards in the future. The field of
corporate social responsibility (CSR) has grown exponentially in the last decade as companies
increasingly seek to engage with their stakeholders and deal with potentially contentious issues
proactively. Now, more companies than ever are engaged in integrating CSR into all aspects of
their business, encouraged by a growing body of evidence that CSR has a positive impact on
businesses' economic performance. The US-based organization Business for Social
Responsibility (BSR) defines corporate social responsibility as achieving commercial success in
ways that honor ethical values and respect people, communities, and the natural environment.
This organization also says that CSR means addressing the legal, ethical, commercial and other
expectations that society has for business and making decisions that fairly balance the claims of
all key stakeholders. The business tourism industry itself is beginning to show increasing
awareness of the need to demonstrate its CSR and this will intensify in future years. As the drive
for greater transparency grows, all industries and organizations, public as well as private, will be
43
increasingly obliged to demonstrate their ethical, environmental and social credentials. All
stakeholders in the business tourism industry, from airlines, hotels and venues to intermediaries
and the delegates themselves, will need to examine their own commitment to CSR. This will
mean that business tourism stakeholders will increasingly be obliged to demonstrate their
concern for the natural environment as well as the host communities that live and work in the
destinations where events take place. This is particularly the case when the standard of living of
the host community is markedly below that of the business travelers themselves. The apparent
luxury and extravagance that characterize certain events can stand out in very stark contrast to
the abjectly poor and chronically disadvantaged conditions in which some of the local
inhabitants live. For that reason, it is encouraging that a number of conference and incentive
travel organizers have begun taking steps to invest in projects which have a positive impact on
the communities residing in the destinations where their events are held. Conference delegates
raising money for a local charity or incentive travel participants spending a day making
environmental improvements to their destination are typical examples of this growing trend. In
the years ahead, more business tourism stakeholders will become aware of the benefits to
themselves, and to host communities, of investing time and money in giving something back to
underprivileged people living in some of the destinations where their events take place.
Picture 1. Business tourist (http://la-kasbah-agadir.com/process-organizacii-biznes-turov/ accessed 24.5.2015.)
44
PART TWO
(http://masstravels.ru/assets/images/Tegi/business_travel-001.jpg, accessed 20.05.2015)
CASE STUDY
Niš as a conference destination
45
1. THE CITY OF NIŠ
The city of Niš is the third Serbian city by size, after Belgrade and Novi Sad. It is situated
by the river Nišava. Niš is a cultural, economic, commercial and university seat of
southeast Serbia. A city located 192 meters above sea level and spanning the surface area of 600
square kilometers. Its population is over 250 000 inhabitants.
Picture 2. The city of Niš
It is a university center with 13 faculties and one of the oldest European cities, as testified by
numerous prehistoric finds on the territory of the city. A city long known as “the east/west
gateway” since it is situated at a crossroads connecting Europe with the Middle East. The city is
connected to the world with airlines departing from “Constantine the Great” international airport.
It is the second airport by size in Serbia (after Belgrade’s Nikola Tesla airport). It was renovated
in 2003.The airport is only 3.5 kilometer away from the central city zone and is located on the
northern outskirts of Nis, close to the highway leading to Belgrade. Niš is well connected to the
Serbian and European railroad network, too. Niš’ Train Station is located at the city exit leading
south to Leskovac and is a 20 minute walk away from the city core. All regional and
international buses come to Nis and go from the main bus station near the green market and
fortress of Niš, 10 minutes walking from the city center. When it comes to traveling by car, it is
very well connected by road since it is situated at a European crossroads. The European highway
E-75 coming from Hungary branches in two directions near Nis: towards the south, Macedonia
and Greece (E-80) and towards the east, along Nisava valley, toward Bulgaria, Turkey and
further on to the Middle East. Extending from Nis there are also roads to the northwest (toward
Zaječar, Kladovo and Timisoara in Romania) and the southwest (toward the Adriatic Sea). It is
surrounded by magnificent mountain ranges of Suva Mount, Svrljig Mount and Seličevica
Mount. As well it is the birthplace of the famous Roman emperor Constantine the Great who
issued the Edict of Milan in 313 embracing Christianity as the official religion of the Roman
46
Empire. The city of Niš annually hosts over 70.000 visitors34 from across the country and around
the globe. A place of turbulent historical past, today offers a pleasant, memorable experience.
Renowned for its cultural heritage Niš has just started to be explored to its full potentials, taking
the very forefront in the European history.
2. CONFERENCE (CONGRESS) FACILITIES
In consideration of the role and importance of business tourism and MICE product as a
tourist destination Niš had started from the vision of positioning Niš’ business tourist market.
Thanks to its geographical position and existing traffic infrastructure, the city has opportunities
to develop tourist offer and successful positioning in the market of business tourism.
Table 4. Conference capacity of Niš
Congress (conference) Congress (conference) Congress (conference)

Hotel
halls up to 500 seats halls up to 200 seats halls up to 100 seats
Hotel "Vidikovac" Conference hall with 500

seats
congress hall of 250 seats
conference hall of 330
Hotel "Grand" congress hall of 130 seats
seats
Institute of Niška Banja, congress hall of
congress hall of 60 places
hotel "Radon" 260 places
conference hall of 60 seats
Hotel "Tami Residence" conference hall of 180 congress hall with 40
seats seats,
congress hall with 30 seats
conference hall of 100
Hotel "Aleksandar"
seats
34
Zivanovic, N., Djordjevic, M., Todorovic, J., Marjanovic, I., Zdravkovic, A., Petrovic, M., 2014, City of Nis,
Tourism organization of Nis, Serbia
47
2.1. HOTEL “VIDIKOVAC”
Hotel “Vidikovac” was established in 2002. The most exclusive and influential social
events have left their mark on the life of the hotel, which is still present despite the passage of
time. It is located on a place giving the most beautiful view from the lookout of the city of Niš.
Hotel creates an intimate atmosphere, relying on a unique combination of old spirit and modern
design. In its composition hotel features 76 rooms and 9 suites. Hotel’s philosophy states that
every meeting implies different customer needs. From small corporate meetings to large-scale
congresses, customers can enjoy the flexibility of creating the schedule according to their needs.
All conference rooms are equipped with audio and video technology and technical support. The
staff of the Hotel “Vidikovac” consists of a team of professionals capable to realize and achieve
your ideas. Many years of experience in organizing business meetings, perfect ambience and
superbly equipped rooms are a good foundation for achieving your goals.
Picture 3. Hotel “Vidikovac”
The congress center has 2 air-conditioned rooms and covers an area of 500 square meters
for up to 300 participants. There is a possibility of organizing seminars in four separate rooms of
100 attendees. All halls are equipped with adequate multimedia equipment. From the wide range
for making presentations to the cloud data storage systems secured via the website of the hotel.
2.2. HOTEL “TAMI RESIDENCE”
Opened in September 2009, the Tami Residence **** Hotel is situated at the very heart
of the convention and sports complex of the Tami – Trade d.o.o. Company, located at one of the
most beautiful viewpoints of the City of Niš, only two kilometers from the downtown, well
connected with the commercial centre of the city. The hotel is positioned in a quiet environment,
reflecting the beauty of surroundings and specificities of the ancient imperial Niš. There are also
a free parking and garage, enabling organizing of various events and stay of guests in the Hotel.
In the modern ambience of the Hotel that exudes European elegance and Southern hospitality, it
is managed to mix business and pleasure in order to provide a sense of home atmosphere and a
48
pleasant stay for our guests. This Hotel is characterized by a special devotion to and care for the
guests and first-class service in each domain. Hotel capacity is 60 standard and deluxe rooms,
including 4 suites and the Tami Residence annex with 10 deluxe rooms. All the rooms and suites
offer amenities like LCD TV, cable and internal television, Wireless, LAN connection, direct
telephone line, mini bar, individual room temperature setting, 24-hour room service, possibility
of bed extensions, safe, hair dryer, shoe cleaning sponge, sewing set, shower cap, personal
hygiene set, disposable slippers and bathrobe upon request.
Picture 4. Hotel “Tami Residence”
Hotel offers two elegant conference halls and three meeting rooms, perfectly adjusted to
the needs of modern business people. All the premises are air conditioned with natural and
artificial light of high quality, equipped with complete audio/video support, stereo surround
system, wireless internet, LCD TV devices, DVD players, lap tops and flipcharts. The
Convention Center consists of a separate room technically equipped for simultaneous
interpretation, with professional and technical support of our staff. The expert team of the Tami
Residence Hotel is available for professional design and organizing of various types of business
events like conferences, seminars, workshops, meetings, social and cultural events. All the
premises offer the possibility of mutual communication in the form of video-conference. Hotel
also offers a modern convention centre - several multifunctional conference halls with between
250 and 180 seats and meeting rooms with between 100 and 50 seats. The halls are equipped
according to high standards and trends, offering a pleasant ambiance, technical support of
professional staff and service tailored to fit the requirements of event organizers. Hotel affords to
its guests moments of relaxation after daily duties in the newly opened SPA & Wellness Centre
TAMI which offers various types of massage, fitness program, sauna, tepidarium and jacuzzi.
49
2.3. HOTEL “GRAND”
Hotel “Grand” is located in the center of Niš across the main city square. It is a high
quality, 4-star hotel. It was built to the highest technological and ecological standards. The hotel
has a state of the art BMS (Building Management System), which saves energy and regulates
central air-conditioning and ventilation. In addition to natural ventilation in public areas and
rooms, fresh air is introduced through the air-conditioning system. Hotel “Grand” is the first big
modern hotel in Niš. It has 120 rooms and suites, two large conference and banquet halls, elegant
restaurant. Due to its superb location, high quality and affordable prices it is the natural choice
for those who expect only the best hotel in the city and are not willing to compromise on quality.
Hotel “Grand” offers excellent conditions for holding successful conferences, seminars,
corporate celebrations, meetings and workshops. Excellent location, luxurious ambience, modern
and well-equipped conference rooms have made hotel “Grand” the leading venue in town for
top-level meetings and events. Hotel has two large, modern conference halls and one meeting
room. They are equipped with complete audio/video support.
Picture 5. Hotel “Grand”
Grand hall is located on the reception level. Exceptional ambiance and natural lighting
makes Grand hall ideal for organizing conferences, seminars, banquets and all other major
events. It is equipped with flip chart, projector, screen, sound system air condition. Wi-Fi is all
over the hall.
Metropolitan hall - Located on the first floor. The modern décor, natural
lighting, simultaneous translation system and balcony for coffee break makes Metropolitan hall
ideal for all kinds of business meetings and events.
Boardroom - VIP meeting room with a fixed setting, for a maximum of twelve people. It
is ideal place for business meetings, equipped with projector, screen, flip chart, lap top, LCD
monitor and Wi-Fi access.
50
Many well-known companies regularly held successful conferences and seminars in hotel
“Grand” such as Roche, Actavis, Beiersdorf, Generali insurance, Vaillant, Telenor, Unicredit
bank, Raiffeisen bank, Avon, Herbalife, Philip Morris, Johnson Electric and many others.
2.4. HOTEL “RADON” – Institute of Niška Banja
The Institute "Niška Banja" is a health, scientific-teaching and investigating institution

which deals with treatment and rehabilitation of patients suffering from cardiovascular and
rheumatic diseases. The Institute is equipped with contemporary medical apparatuses for
diagnostics and treatment in the field of non-invasive cardiology diagnostics, rheumatology, and
orthopedic surgery, as well. Total lodging capacity of the Institute is 560 beds, located in three
stationeries: "Radon", "Zelengora" and "Terme". Each of the stationary is unite for itself and it
consists, beside lodgings, of a complete therapy block (hydro, kinetic, electro and mud), as well
as numerous, various gyms for both organized group and individual recreation and fun. Beside
health-recreate tourism the Institute offers all guidelines for both organizing and maintenance of
sport tourism (tennis courts, both open and covered basket-ball and hand-ball court as well as a
yard for small soccer, start terrains for paragliding), as well as for Congress tourism
(amphitheater with contemporary technique equipment, with 300 seats, plenum auditory with 60
seats), restaurants and saloons for various occasions (meal serving and parties) with well-known
national dishes.
Picture 6. Hotel “Radon”
There are many medical symposium held for medical experts in facilities of the “Radon”
Institute each year. Faculty of Medicine, University of Niš held different conferences of many
medical fields such as Rheumatology, Osteoporosis, Cardiovascular, etc.
51
2.5. HOTEL “ALEKSANDAR”
Hotel “Aleksandar” *** is a luxurious hotel of the highest class in the south part of the
city of Nis, located on a hill which offers a panoramic view of the city. Four minutes from the
city center, this contemporary building is a perfect choice whether your stay is for business or
pleasure, tourist or transient. The hotel prides itself on a wide range of services, hospitable and
professional staff, luxury amenities, secure and guarded parking lot and a welcoming
atmosphere, where one can enjoy a choice of local and international cuisine prepared by top
chefs. Our mission is your satisfaction.
Picture 7. Hotel “Aleksandar”
Completely separate space covering 420 square meters, designed for organizing large
gatherings such as conferences, symposiums, lectures, promotions, as well as cocktails and
receptions. The Conference hall can accommodate 150 people using cinema style seating, and 80
people using amphitheatre style seating. A separate room for lecturers and complete technical
logistics necessary for holding large gatherings are provided. All this make the Congress Center
of Hotel “Aleksandar” the most exclusive venue of this kind suitable for prestigious events.
52
2.6. HALL "ČAIR"
Hall "Cair" covers an area of 11.000 square meters and 700 square meters of business
space. The building was founded in 1972 and put into operation in 1974 and in 2011 was
completely reconstructed. It has a universal character so that in addition to extreme sports
purposes can be used for fairs, exhibitions, concerts, screenings of films, theatrical performances
and various cultural - entertaining programs. Capacity for sports events is 4.000 seats, and for
other types of programs 6.500 seats.
Picture 8. Hall “Čair”
Next to the building is a hotel with 50 beds and a restaurant with 200 seats, a small hall
for training which hosts some minor matches, Press Center, which serves as a space for different
kinds of presentations, press conferences, promotions and hospitality.
Picture 9. Hotel “Čair”
53
2.7. NIŠ’ FAIR
Nis’ Fair is located in the Nis’ part of city named "Duvaniste". Its area is 2.306 square
meters and has 98 exhibition booths and 4 premises. In front of the fairgrounds, there is a large
parking. Every year Nis’ fairground maintains a multitude of exhibitions and trade fairs for
which many business people from Southeast Serbia within groups and as individuals visit Nis.
Picture 10. Niš’ Fair
54
CONCLUSION
This chapter has reviewed the elements and characteristics of the business tourism sector,
as well as some of the key trends and challenges that the sector is already dealing with and will
continue to face in the future. There can be no doubt that the market environment for business
tourism will continue to evolve and mutate in ways that are perhaps impossible to predict at the
present time. It is in this very unpredictability, however, that the challenge and excitement of
operating in this sector of the travel and tourism industry lies. In the complex, volatile flux of
market trends and forces, one element that will remain reassuringly constant is human nature
itself. Men and women will continue to attend business tourism events, not only for the
opportunity to obtain personal and professional development for themselves and business growth
for their organizations but also for the simple pleasure of meeting those with whom they share a
common interest or goal. Buyers and participants will be drawn to attractive destinations and
venues that deliver efficiently run and memorable events, using state-of-the-art technology, as
well as distinctive cultural experiences in a healthy and unique environment. According to
mentioned above, the case study has shown that the City of Niš as a tourist destination has
appropriate infrastructure whose maximum use along with the assistance of well-planned
destination management could further develop business tourism in its area. Niš’ Fair, Hall
"Čair", a sufficient number of hotels that offers small and large conference venues represent a
tourist destination management resource that should be recognized and valorized through the
creation of many different business tourism offers to a number of business conferences,
exhibitions and trade fairs in the coming years. MICE have increasing trend in Niš’ area and it
would certainly exert a positive effect on the inflow of picking up funds sent to the budget of the
city of Niš.
55
REFERENCE
1. Holloway, J.C., Humphreys, C. Davidson, R.2009, the Business of Tourism, Pearson

Education Limited, Edinburgh, England
2. Kotler, P.,Bowen, J.T.,Makens, J.C.,2010. Marketing for Hospitality and Tourism, New
Jersey: Pearson Education. New Jersey, United States of America
3. Morden, T., 1993, Business Strategy and Planning, McGRAW-HILL Book Company Europe,
England
4. Hill, C. W. L., McShane, S. L., 2008, Principles of Management, McGRAW-HILL Book

Company Europe, England
5. Abel, A. B., Bernanke, B. S., Croushore, D., 2008, Macroeconomics, Pearson International
Edition, Boston, United States of America
6. Mangan, J., Lalwani, C., Butcher, T., 2008, Global Logistics and Supply Chain Management,
John Wiley & Sons, New Jersey, United States of America
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wellness tourism “BSWT”, Hajdi doo, Nis, Serbia
8. Petrovic, P. Mirkovic, A., 2010, The Business of Tourism, No. 6/2010, The importance of
tourism for regional development and cross-border cooperation, The College of Tourism,
Belgrade, Serbia
9. Smith, R. A., 2012, The Business of Tourism, No. 9/2012, Corporate social responsibility:
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12. Turisticka organizacija Nis (www.visitnis.com)
56
13. Hotel “Vidikovac” (http://www.vidikovac-nis.com/)
14. Hotel “Grand” (http://www.grandhotelnis.com/)
15. Hotel “Radon” (http://www.radonnb.co.rs/ci/)
16. Hotel “Tami Residence” (http://www.tamiresidence.com/)
17. Hotel “Aleksandar” (http://hotel-aleksandar.com/)
18. Hall “Cair” (http://sccair.rs/o-hali/)
19. Nis’ Fair (http://www.trznicanis.rs/pijace-duvaniste.htm)
57
58
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VISOKA POSLOVNA ŠKOLA STRUKOVNIH STUDIJA

U Blacu, 2015. god.

U Blacu, 2015. god

PART ONE – BUSINESS TOURISM

1. CONCEPT AND TYPES OF BUSINESS TOURISM….……………7

PART TWO – CASE STUDY

1. THE CITY OF NIŠ………………………………………………………46

(https://iwantabroad.files.wordpress.com/2011/07/157403m.jpg, accessed 20.05.2015.)

One of the most important types of organizational business is group business. It is

Table 1. Locations of the European Society of Cardiologists’ conferences, 1993-20073

Many: committees, Conference Boss, secretary,

Decision influencers Many Limited Limited Few

Usually not, but

Need for personal Depends on the

2.1. Association Meetings

Associations sponsor many types of meetings, including regional, special-interest,

For employees of a company, a corporate meeting is a command performance. They are

2.3. Small Groups

Association conferences Corporate conferences

2.4. THE MEETING INDUSTRY

2.4.1. MEETING PLANNERS

2.4.2. Dealing with Meeting Planners

When negotiating with meeting planners, it is important to try to develop a win-win

2.4.3. CORPORATE TRAVEL MANAGER

• A favorable image of the hotel's brand by the company's travelers

3.1. THE INCENTIVE TRAVEL INDUSTRY

• Availability of hotels and facilities

Here are the most important attributes of the hote1:

4.1.2. Conference centers

4.1.4. ACADEMIC AND SPORTING VENUES

4.1.5. OTHER SUPPLIERS

5.1. THE EXHIBITION AND TRADE FAIR INDUSTRY

• Event organization, marketing services a team of multilingual professionals is available to help

6. INDIVIDUAL BUSINESS TRAVEL

6.1. Staff comfort

6.2. Staff safety

6.3. Staff loyalty and morale

6.4. THE INDIVIDUAL BUSINESS TRAVEL INDUSTRY

6.5. BUSINESS TRAVEL AGENCIES AND AGENTS

7. TRENDS IN BUSINESS TOURISM

7.1. Economic trends

7.2. Growing corporate cost-consciousness

As competition between business tourism venues and destinations intensifies, buyers

7.3. Technology trends

Information and communications technology (ICT) has already transformed many

7.4. Social trends

Picture 1. Business tourist (http://la-kasbah-agadir.com/process-organizacii-biznes-turov/ accessed 24.5.2015.)

(http://masstravels.ru/assets/images/Tegi/business_travel-001.jpg, accessed 20.05.2015)

Niš as a conference destination

Picture 2. The city of Niš

2. CONFERENCE (CONGRESS) FACILITIES

Table 4. Conference capacity of Niš

Congress (conference) Congress (conference) Congress (conference)

Hotel "Vidikovac" Conference hall with 500

Picture 3. Hotel “Vidikovac”

2.2. HOTEL “TAMI RESIDENCE”

Picture 4. Hotel “Tami Residence”

Picture 5. Hotel “Grand”

2.4. HOTEL “RADON” – Institute of Niška Banja