THE RETURN OF CONVENTION BOOKINGS

Hello, this is Les Goldberg, and welcome to The Road Ahead. The Road Ahead podcast is dedicated to the future of the live events business, bringing together industry experts. Hello, production world. This is Les Goldberg and The Road Ahead. Today I have two amazing guests. I have Adrienne Siemers. She's the senior vice president of sales for the Nashville Convention & Visitors Corp. And I also have Mike Waterman, who's the chief sales officer at Visit Orlando. Everyone, welcome to the show. Thank you. Thanks for having us. Today we're going to talk about the return of the convention booking. And as both of you work with organizations within the cities that we live in, that what are clients thinking about when they're rebooking or trying to book conventions right now, especially with all the turmoil and all the COVID and all the reasons why we're not doing shows. So what I want to do is start out by asking a question to Adrienne. And the question is really when you're talking to a meeting planner or someone who's thinking about doing a show, what's the conversation like? Kind of like, what are they thinking about? And, and kind of what are they throwing those kind of curveballs to you about, you know, what is it going to take them to, to. Yes. Well, first of all, thanks for having me. It's actually been a great couple of weeks here in Nashville. We've seen an uptick in leads, which is definitely a huge inspiration for us, where for a little while things have gone a little stagnant. But when talking to the planners, I mean, it's a variety of questions, right? And it changes monthly, constantly changing, but we're just happy to provide the resources they need. I mean, of course, their current concerns are, you know, what's it like on the ground in Nashville? What are the restrictions? And that's obviously a resource we can provide for them in terms of information. Every day is an adventure. Everything shifts a little bit, but we're definitely feeling some encouragement given the vaccine news, as are the planners. And that is definitely given us a little bit of a jolt. And finally being able to plan and start looking out into the future. So it's been a good couple of weeks in the city of Nashville. I hope that answers your question. It does. I'm going to throw the same question to Mike and tell me in Orlando, you know, people that are thinking about booking conventions here, what are they thinking about and how is the conversation going? Great question. Yeah, we we also are seeing a little bit of an uptick since the last couple of weeks, which is great because Orlando and Florida are open. What most of the clients are asking us, especially those who are either already booked definite in 2021 or looking to potentially move their meeting from a highly restricted area to a more open area that can allow them to actually have their meeting. They're asking questions like, are you open? Are there any risks of the governor shutting you back down? Because that's happened in a couple of our competitive cities. What your requirements, if you're whether you're in a hotel or in the convention center, you know, we do let them know. We've had a mask ordinance in place since June and it still is in place. They ask about restrictions from a number of attendees, which we don't have any, although many of our venues and attractions have self limited capacity, like the parks, for example is 35%. Most of our hotels have limited their space to 50% capacity. Although the governor has basically said we can we can be open as much as you want to be open, but we're being sensitive to the fact that we really can't abide by CDC guidelines without, you know, allowing the appropriate space, whether it's in the convention center or in a hotel. So those are the questions. And really, they want to know what health, what health and safety protocols the location is doing, whether that's a local Virus Advisory Council certification or if the venues have their own certification. You know, we they look at us to help them with a, you know, location information, but they also know we're not the medical experts. And we've been able to bring in, like Orlando Health and some other regional health experts that help us with the clients to make sure they can put on a a self and or a healthy meeting and a productive meeting. You know, that's a really interesting answer, because ultimately, if I'm holding a meeting or I'm thinking about it, I have to go to the local jurisdiction, the region to try and find out, you know, what is going on and how can I plan effectively. So I'm going to throw this question to Adrienne, and what are the obstacles that people are thinking about that we have to overcome to get them to book space or to book an event? You know, these these optics, these obstacles that Mike had mentioned, a few which were information based. But in your opinion, what are you hearing and what do we have to kind of give them the right answer to something for them to get their association, their group, their their convention? It could be a corporation to to the. Yes. What do we have to deliver to them? Well, first of all, they can do us as a resource, just given the enormous turnover at the hotel community, in the hotel community, they come to us for information about who's their contact on property, and they come to the hotels and really are asking them for some flexibility. At this point, that's truly what we're trying to do, is connect them with the hotel community. For any groups arriving at 21 and beyond actually really 21, providing some kind of flexibility as far as attrition, cancellation them to move forward with their program in some way, shape or form, even if the numbers they originally anticipated aren't going to happen. I mean, obviously we're going to see some fall off the other piece of it. You know, big concern they have is airlift. That's been a big, you know, piece of conversation in order for them to move forward with their current program as is. So we've been able to connect them with the airport. Talk a little bit about lift. But again, you know, just obstacles. There's so many questions right now. I mean there's questions about testing. I mean, that's another piece of the conversation that we're trying to get active in. Obviously, in order to see the city wide start coming back online, we're going to have to see some increase in testing and connecting them with those resources. Obviously, here in Nashville, we're not in a similar situation where Mike is in. We do have some restrictions at this point. We're really sitting at cap of eight. Anything above that in terms of group numbers has to be specifically approved by the city with central distancing. So our city has definitely been much more strict in limiting that capacity. So they're just looking for some reassurance that we're by their side advocating through them throughout the process, which we are, and connecting them with the local government authorities and then advocating for them, obviously, with the local hotel community and Music City Center, make sure they get what they need so that their guests feel safe, because that's what it's going to take to get folks back and meeting again. Is that feeling that they're going to be safe in the environment they plan to meet in, and we're happy to provide that for them and connecting them to the resources that they need. So I just want to add clarity. So if a group is more than eight people, it goes. They submit an application for a process that says I've got 800 people and and this space and it just gets approved by some local official, correct? Yes. There is actually a very detailed form that the hotel community fills out and submits to our metro government. There's a variety of factors taken into consideration. Everything from alcohol to social distancing, but just really making sure that the hotel understands that in order to keep the group safe, there's a certain set of requirements they have to follow. But I will say this even though that cap is in place, we have seen groups as large as 1000 meeting in the city, just making sure that the group understands that we're keeping an eye on them, and they need to be dotting eyes and crossing their teams when they bring a group to the city and making sure that they're ensuring guest safety. Guest safety is a big deal for people to feel comfortable. So I'm throwing the same question to you, Mike. And obviously, I personally know the Orange County Convention Center has been open and doing shows. And I will say this, I have to say that I'm proud to say that I've been in Nashville at the Music City Center in Orange County for many years, some of the nicest convention centers and people in the in the world. So I'm very fortunate. But same question to you, Mike. You know, as far as getting over through the obstacles and getting people to. Yes, you know, as far as the convention center and the local area. What do you think we have to do to get someone comfortable with that? You know, that booking and committing to to to go to a show. Yeah, it's it's a multiple step process. Like Adrienne said I will tell you what we've been doing. And we've hosted over 50 live in person events since July of last year. Most recently, two weeks ago, we had Surf Expo in. They had a thousand exhibits and over 3000 buyers, and we filmed over the span of two and a half days. We filmed the entire show and we also filmed the airport. We filmed some of the hotels and what they're doing, and we we started creating these proof points because clients candidly want to see what what an event of that size looks like. How are the aisles spaced? How are people wearing masks? How many sanitized, you know, sanitizing stations do you have? So we've really worked hard and have a plan in every live event. And we have 77 events still on the books for for 2021 citywide events. So we plan to film as many of those events as we can just to show what a live event is going to look like. And then, as I mentioned earlier, we have a collaboration with Orlando Health and they collaborated no additional charge with the planner to to to talk about protocols like temperature checks and social distancing and what the menu should look like or what the physical distance should look like in the meeting space. So really it's about giving the confidence and the proof points that you can actually, you know, conduct a live in-person meeting and not only do it safely, but do it enjoyably right. Because if it's a miserable experience, you know, whether you're safe or not, you're not going to do it again. No miserable experience, as in our event we've we've we've cut out the misery part. That is unacceptable. Only happy customers smiling happy fun. I'm going to throw this question back to Adrienne. I think you mentioned testing, but right now vaccines have started to come out. And I think with what I've heard on the news, the Biden proposal, there's like a million injections a day they want to go for for the first 100 days. So my question to you is how will vaccines and testing impact, you know, the ability for a meeting planner or someone putting a convention together for them to get over the hump, to say, we're starting to turn the curve? And do you think also there's like a two part question, do you think that there'll be COVID testing, whether it's a rapid on site or required to come to the show? You know, what are your thoughts on the on the COVID protocol as far as you know, do you have to go get tested before you can come? Well, I mean, I think what we're hearing from the planners is that they're expecting that to be part of the process that we all we already seen that from the airline industry, that that's become part of the standard process anyway for groups that are coming into the city. So I think just the perception in general that the vaccines are being distributed and, and just the sentiment that eventually we're going to get to that, you know, you know, point where people will be resistant to COVID. I think that just the perception in general is going to help us. And I think that also, you know, we're calling for we're anticipating some kind of rebound, I would say in terms of leisure market come March, just because of the vaccine distribution and with the current federal administration is able to put that out there in terms of the 100 days. But no, we definitely I think that's just the perception in general that we're going to be able to move forward is really having a positive effect on the meeting planning community. And and like I said, we've really an uptick in leads this week as a result of it. But I expect 100% that testing to be part of that process for in order for meetings to come back online, the question is, are we going to have access to it, or are we going to be able to have that test out there? And that's definitely going to rely on some assistance. So let me just clarify something. So if either in testing it's I come with something on my phone or some document that says I've been tested or I just wanted to make sure, do you think it's testing on site, or do you think it has to be done prior to getting there? I think it's both. I mean, I think it's kind of, you know, it could be a variety of different ways. I mean, I think it's so interesting throughout all of this is every group is different. I mean, I've seen groups who've come to us and said, hey, you know, we want it written into our contract that we don't have to wear masks in the city. I mean, I've seen we've seen everything from that to, you know, clients who want excessive or I wouldn't say excessive. It is what they want in order to feel confident and moving forward with the program. But wanting testing on site in a designated area where every day, every morning that they're on site, they get a test. So it really varies with what the client feels as though the attendee needs in order to feel confident moving forward with their program. And I think that that's a resource that, you know, CVS provides it as well, in coordination with the center, is being able to customize a plan for each individual group because one size absolutely does not fit all. I mean, I think that has been, you know, nailed down as far as, you know, this new world we're in, the every group is different. And that's the that's the service that we're trying to provide in recognizing that for groups that want to move forward. Got it. So so Mike, same question about COVID testing and vaccines. And and obviously Florida and Tennessee are two different states. But I'm just curious as to your thoughts whether they'll be on site testing, whether people are going to show up with some type of proof of a test, temperature checks, you know, whatever the we already talked about that. But back to the COVID thing. Do you think that is a key element that meeting planner will request or require, or what are your thoughts? Yeah, Adrian hit it right on the head. I mean it's going to it varies by group. I will tell you. You know, as I mentioned earlier, we've already had quite a bit of of live events happen and continue to happen. We have a really large event. Could be up to 10,000 people next month. That's a relocation from another city. And they're not requiring testing. They are requiring masks. They have to wear masks. It's our ordinance. I think it's going to be a combination of both. The challenge with the test, unless you do a test prior to arrival and a test prior to coming into the event, you know there's this gap where you can test negative today, been exposed yesterday. In three days from now come, come negative. So that's the you know it becomes a liability issue for for the planners. And by the way as a side most of or every one of these events that have happened post COVID, you know, have created a a waiver, if you will, that, you know, that basically protects the, the the show organizer if somebody gets, you know, gets COVID. So, you know, at the end of the day, even until we get to this herd immunity point, which if we're lucky, it'll happen, you know, end of Q1 and Q2, I hope that happens. I feel like it's going to be more like, you know, spring summer. But until we get to that, herd immunity, we're still going to have to wear a mask. We're still going to have to physically or socially distance. So that's not going to change. Even if you show negative or test negative, whether it's two days before or in, you're still going to have to do the things that we're doing today to, to to hold a safe and productive meeting. So this next question goes to Adrienne. And if someone is thinking about coming, do you all have whether it's incentives or something to promote or offer to a potential client to get them, how do I say they really consider it? And, you know, I know a lot of the things that we've talked about could be optics, you know, of we're going to the bureau is going to provide something or do something to ensure they're safe meeting, you know, have you all come up with any idea or plans as to things that you can incentivize clients with that that kind of pushes the idea of, we want to get you in the door, and this is what we're willing to go do. Well, let me start that out by saying that I'm sure Mike can relate to this. We're broke. As for any kind of financial incentives, I will say across the board that has been a real struggle. I know the clients have come to us and asked for some financial assistance, especially as it relates to hybrid meetings. And as we all know and have heard on many occasions, the hybrid meetings are are very expensive. We while we're not able to provide direct financial assistance, we certainly have worked, as I said before, and advocated on behalf of the client with the hotel community to bring them together some flexibility and cancellation terms and attrition and and advocating for them side by side just to make sure they get what they need in order to move forward. Just give them reassurance. I've seen a lot of our hotels provide flexibility and, you know, maybe not, until, you know, 72 hours prior that they are actually able to walk away from that, that takes that added pressure of all of these outside factors on the planner, that takes that, you know, off their shoulders that they can make a game day decision three days prior in order to move forward with their program. So that's basically, you know, a variety of being kind of that we can provide just to help the client along the way and advocate on their behalf. So so, Mike, same question. And obviously, you know, these shows that are potentially coming back, they're probably coming back a little smaller because they don't have the same volume of attendance. So that might affect a show manager's income stream. But have you thought about any type of incentives that might work for a potential customer who's going to go ahead and kind of get to yes, and to get them over the hump, so to speak? Sure. You know, the first the first thing we did on above, you know, above and beyond the certification component for our venues in our hotels is, like I said, this Orlando Health collaboration, because at the end of the day, the client needs to be able to say to their exhibitors and attendees that our plan has been sort of reviewed and approved by a medical professional, which Orlando Health is. That's first and foremost because that's sort of the, you know, that's the golden seal of approval that that that a medical provider has reviewed our plans and has approved our plans, and they can actually have have a seal that you can put on your website that says, hey, this this meeting has been certified. That's one, two. We do have several different funds. We have a business development fund and a co-op fund which can be used, which traditionally is used for rental or bussing or housing. But Adrienne's point we we, we are all DMOs across the country are struggling because most of us are funded through some sort of tourism development tax, which as as we all know, is way down. So so the funds aren't as much as they or as large as they used to be. But we do have access to funds. We have talk to groups about doing testing. We have had several conversations with some third party providers. You know, once testing can get to a point. And you mentioned it earlier that we can do it rapidly, inexpensively and daily, you know, at 5 or $10 a pop. And we've we've had some conversations about, you know, can we use CARES act funding to purchase, to purchase testing products, etc.. So so we're going down those paths. We haven't had any any we haven't booked anything or had to had to offer that type of incentive yet to any of these groups. Candidly, most of the groups that have booked with us that have been moved to, booked, booked us because we're open and they can, you know, they can come and have a live meeting. Very, very interesting. So do you think, Adrienne, do you think shows are coming back? Second quarter, third quarter, fourth quarter. What's the temperature of when shows will return in any meaningful way. Yeah we're we're very excited. We've got actually some city wide traffic on the books in June. And beyond that still holding with the news of the vaccine. We've certainly seen a decrease in the number of city wide inquiries regarding potential cancellation or shifting. So really, June and beyond currently, as it stands, CMA Music Fest, scheduled for early June, is still on track to move forward, which will be key for us. Obviously, it won't be at the same capacity as what they have hosted in the past of 100,000 folks, but at least with some form of capacity, we expect them to move forward. So I think it's just at this point the inquiries have slowed down, which has definitely given us a little bit of hope. And then also, I will say you asked earlier regarding the possibility of shifting, if we're receiving those kinds of questions from the client set, and we've certainly wanted to shift some folks later in the year who wanted to cancel. However, we're kind of a victim of our own success. We've been unable to do that because lack of availability later in the year. So that's encouraging to us that our calendar is holding in order three and quarter for now, whether those meetings move forward at the same size that they originally anticipated, I think that's questionable, but at least we feel encouraged that some of those groups are holding on. What are three and quarter for us? Okay. So so just so I'm clear, you think the kind of the restart or is April May what do you start see us. We're going to start climbing the hill again. We actually we've seen some leisure traffic. We've been very fortunate to be able to pull in some leisure traffic, you know, up until this point. But we definitely see leisure starting to come back in March, groups starting to come back shortly after that. Small groups and then potentially, you know, slide coming in in some version quarter three quarter us forward for for us we've just had a slower than other. Well it sounds like it sounds like March April May. We're kind of coming back and it on starting like June July things are going to hopefully hold through the rest of the year, which is awesome. Mike. Same question. What is your temperature on the return of groups. And you know, and what you're, you know, you're experiencing. Yeah. Ditto for Adrienne. We we we had an unbelievable Orlando was actually the most visited you know city in the country during Christmas and New Year's break. Highest deployments in a so so we know visitors want to come and feel safe when they come. We're optimistic. It's all domestic. We're optimistic that March with spring break in the holidays, Easter holiday, it's going to be busy for us. We think, you know, busy for us is 50%. And then we also feel small groups, hotel in house groups are happening May, June, March, April, May, June. And then and then you know like Nashville, our calendar is absolutely booked for 2021, Q3 and Q4. We typically do about 105 citywide groups a year. We have 77, and almost all of those fall into Q3 and Q4. So it sounds like things are just going to get better. And that is the optimism. I'm taking your optimism, and I'm just going to sprinkle it everywhere because I, I just love hearing that kind of stuff. So I have two I have two more questions. One, and this is to Adrienne. Adrienne, how many shows when they come back in the third and fourth quarter are going to have that virtual component? Do you think that's going to be something super popular? Oh, absolutely. I think they're all going to have some form of virtual component to them. I think that I mean, the cat's out of the bag. I mean, I think it's a potential, you know, revenue stream that planners didn't have in the past. And recognizing they're able to reach a certain number of attendees that maybe, maybe originally weren't able to travel in for their program. Our hotels have certainly tried to prepare for that in some form of virtual studio on site, and our Music City Center is talking about that, as well as several. Oh yeah. No, we're putting that in in Music City Center. We're going to let you say that and but but no, I think we're preparing for that. Of course. You know, we want events to come back in person 100%. Of course. You know, I say I say that selfishly because that's, you know, that's our motivation this point. You know, our goal is to bring people to the city. But I think in order to provide that comfort level, in order for events to come back full steam, you know, that's going to be definitely part of the process in coming back online. And I certainly think people are missing the live and in-person portion of it. But I think in the short term, especially through the end of 21, it's just not going to be possible for some folks to come in. And so if they have that ability to provide that additional revenue stream, the organization is producing the event that we certainly want to encourage that which ultimately helps us out as a destination in the end. Well, I will say this, that I think all of us on this call have this desire or thirst to go to live music. And especially in Nashville as Music City Center, there is something that I think we're all just missing in our lives and live entertainment. And so there is a little bit of pent up demand for that. So I would completely agree. So so I'm going to throw the same question to you, Mike. Mike, do you see these groups using a virtual component? Do you see that as part of the equation of the 77 city wise coming? Yeah, I think I think if the if this pandemic has taught us anything, the organizations that are going to succeed are the ones who have figured out how to shift their business model to allow for, you know, sort of this hybrid deal. And thank you for all the work you've done to create this remarkable studio inside the Orange County Convention Center. You know, that's the type of thing we need to show to clients because of the cost is so problematic to put these hybrid events on. What we're trying to do, as you know, is show that we can, you know, we can do the heavy lifting. You still have to pay a portion of it, but it's nowhere near what it would have cost you to build this thing from scratch. And, and clients have figured out, you know, if they can get if they normally would have a 10,000 person meeting and they now have 2500, how do they get that 7500? Or maybe, you know, maybe 10 or 12,000 folks to, you know, to be able to dial in at a lower price point who maybe aren't comfortable yet to get on a plane and fly. It is a definite revenue stream for the planners. And really, you know, I think the data we've seen is if you get somebody hooked, you know, in your based on your, your what, you're offering, virtually the probability of them coming when you go live is is is astronomical. Astronomical, Yeah. I was going to say real quick to I think to just to add to, to what I mentioned, you know, I think and also what you had mentioned about live music venues in the city, I think we're in a unique position as well, just that local flavor as well, having all of these, you know, potentially virtual concert venues available to a client to be able to broadcast from on site, live on site, whether that be at the convention site or even off property, one of these concert venues who are all very hungry to pivot and host some version of any kind of convention business. At this point, I think we're in a unique position in that respect as well. So we've got some actually already built in hybrid options for the client to come in and experience. Well, I will tell you that there is no question that people want to gather. They just want to do it safely. I think there's kind of a strategy that we've kind of discussed about how to get, how do I get a meeting planner to get through the obstacles, to kind of see the other side of this? And, and I guess, Mike, as you explain, you know, by doing it and demonstrating it, it it tells a story that it is possible. And the more we do, I think it's just going to take a few big groups. You know, that person who has the courage to bring a group in and things go well to kind of restart a trend. And we all cannot wait to go back to a ballroom, a convention center, to any venue space, and to see people in three dimensions. Whether I'm wearing a mask, I'm not wearing a mask. I still, I think there's this value of humans gathering together and the the energy that is created for product reveals, for recognition, for rolling out, you know, new business plans and strategies. This is all the kind of stuff while we have done, I don't know. Five, 600 virtual meetings in the last six months. I said, there's still nothing like getting together in person, live and telling a story and engaging an audience. And so I appreciate both of you joining me today. I'd like to thank Adrienne and Mike for joining today, and I look forward to the day that we could all be together, potentially without masks, having some form of our new normal. And and if we could even remember what that was like, it was so long ago. Oh my goodness. So anyway, crazy. Thank both of you. Orlando and Nashville are amazing cities, and I'm fortunate to be partners with both of your convention centers. And this is Les Goldberg and The Road Ahead, everybody. Good job. Thank you. Thanks. Appreciate it.