International Congress and Convention Association www.iccaworld.com Benchmarking 47 th ICCA Congress & Exhibition November 3, 2008 International Congress & Convention Association
International Congress and Convention Association www.iccaworld.com
Benchmarking47th ICCA Congress & Exhibition
November 3, 2008
International Congress & Convention Association
Definition
• Best Practices
• Comparison driven evaluation
• Assessing relative performance
– Time
– Cost
– Quality
– Quantity
– Productivity
– Revenues
– Profits
– Efficiency
International Congress and Convention Association www.iccaworld.com
Productivity
• Most common form of benchmarking
• Quantity / Time
– 4 units per hour
– 50,000 delegates per year
– Annual occupancy (hotels notcentres/CVBs)
– ADR or average price per SQM sold
– REVPAR or revenue per SQM
– $12 million per year profit or loss
• But at what cost?
International Congress and Convention Association www.iccaworld.com
Efficiency
• Less common form of benchmarking
• Cost / Quantity
– CPU
– Cost per delegate produced
• Benefit / Cost
– ROI
– Current Value Delegate spend / Costof Sales
• Quality / Quantity
– Success or Failure rates
– Conversion or bid loss ratesInternational Congress and Convention Association www.iccaworld.com
Strategic Management
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Balanced Scorecard – StrategicPlanning and ManagementSystem (Kaplan & Norton)
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Discussion on Possible ICCABenchmarking Projects for CVBsand Convention Centres
International Congress and Convention Association www.iccaworld.com
Destination Comparability
• Funding levels
• Personnel
• Air service
• Major venue space
• Hotel rooms
– Total, size, class, location
• Accommodation rates
• % business derived from MICE
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Rooms in Relation to Venue
1
3 KM
5 KM
8 KM
10 KM600
800
400
7,600 rooms (12 hotels) in 6 KM catchment13,400 rooms (30 hotels) in 10 KM catchment
Room Clusters
1000 1200
200
5,000 rooms (6 hotels) in 3 KM catchment
Financial Benchmarks
• Bureaus– Average fees per member
– Public vs Private funding ratios
• Centres– Profitability to utilization ratios
– Costs and revenues per RSM
– Costs and revenues per PAX (occurring)
– Govt subsidy as % of revenue & RSM
• Both– Cost per delegate won (future business)
– Won business value vs investment
– Operating cost ratios
– Cost per staff member
International Congress and Convention Association www.iccaworld.com
Customer Benchmarks
• Bureaus
– Client or member services offered
– Destination service ratings
• Centres
– Contract policies
– Move in / Move out policies
– Venue service ratings
• Both
– Venue finder on website
– RFP system on website
– Budget for delegate boosting
International Congress and Convention Association www.iccaworld.com
Internal Process Benchmarks
• Bureaus– Won room nights per sales person
– Won room nights per room available
– Destination market share & fair share
– Ratio of members to population
• Centres– Venue occupancy
– FTE per RSM and per PAX
– Risk management
• Both– Won business to rentable space ratios
– Won Delegates per sales person
– Delegates occurring per plenary seat
– ROI evaluation procedures
International Congress and Convention Association www.iccaworld.com
Learning & Growth Benchmarks
• Both
– Research programs and investment
– Training / personnel cost ratio
– HR policies and procedures
– Work environment
– Internal communications
– Benefits / recognition / rewards
– Morale monitors
– Staff retention rates
– Membership in marketing alliances
International Congress and Convention Association www.iccaworld.com
Benchmarking Benefits
• Information based decision making
• Credibility – independent standards ofmeasurement
• Evaluate under AND over investment
• Efficient sales and marketing, improved ROI
• Information for efficiency improvements
• Evidence to back up budget requests
• Facts to improve competition analysis
• Comparative data for planning
• Effective goal setting
• Track innovation
International Congress and Convention Association www.iccaworld.com
Thank you!47th ICCA Congress & Exhibition
November 3, 2008
International Congress & Convention Association