A three-daymeeting for 1,000 people will generate between $1million and $2million in gross income for a hotel. That includes the amount the association pays formeals and services as well as the income fromattendee-rented roomnights, bar bills, roomservice, gift shop, and spa/golf services.
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income generated by the meeting, and they offer freemeeting space as an enticement here in North America. This model of free meeting space offered for meetings is not typical in Europe and Asia, and is the reason thatmany U.S.-based associations decide not to meet overseas, or do so rarely. Indeed, if ourmeeting were hosted in Europe or Asia—with 1,000 attendees, plenary sessions in themorning, and multiple breakout rooms in the afternoon—it easily could add $50,000 to $150,000 to the expense side of this ledger. My association clients hate giving up that profitwhenwe go to Europe orAsia.
Foodandbeverage—This figureworks out to approximately $263 per person, and reflects three continental breakfasts, five breaks, and one sit-down dinner. At these meetings, we focus on propertieswhere delegates can get their own lunch at various price points.Attendees at European and Asian meetings expect a sit- down lunch daily, and that expense can drive food-and-beverage costs up quickly.That is not the case with these meetings in the United States. If Iwere to host themin Europe orAsia, I would add another $100 per person to the F&B cost—for a total addition to the expense side of $100,000.
Audiovisual—Thesemeetings all have plena- ry sessions for two or three days,with appropri- ate staging, lighting, and video coverage as well as audiovisual for all breakout rooms. Remarkably enough, I see very little fluctuation in price around theworld, becausemany of the major suppliers are international and have local representation.
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Exposition hall — There is no charge for the exposition space because it is part of ourmeet- ing package, so all of this expense is for basic booth set-up. We then sell that space to our exhibitors for a profit.
Printing — This includes printed programs, signage, and sponsor banners.We believe that professional signage is critically important for ourmeetings,because it sets a tone fromthe very firstmoment of arrival.
Keynote speakers—Two groups out of eight do not pay keynote speakers, although they do pick up the speakers’ airfare and hotel expens- es.Consequently, the average price of $33,000 is a bitmisleading. The typical budget is clos- er to $50,000 for thosewho pay for keynote speakers.
Allother expenses—This includes the cost of staff travel,webdesign, registrationservices, sup- plies, awards, shipping, marketing, on-site labor, entertainment, security, and numerous other small costs.
PROFIT TOTAL INCOME TOTAL EXPENSE
NET PROFIT
$893,250 $510,137
$383,113 Letme be the first to acknowledge that this is
a very rough average based on a small pool of meetings. It is a peek insidemy own personal ref- erence notebook, and I am certain that some of youwould bemore—and somewould be less—
Knowing. A core problem with meet- ings is that most everyone has attend- ed several, and that bit of familiarity leads most people to think they pretty much know how to run one. They have a little knowledge— which, as we all know, is a very dan- gerous thing.
Doing. Great meet- ings are complex. They are technical. They require a broad set of unique skills and, when well organized, they appear to be seam- less.When properly run, these very complex events do indeed appear to be easy. Failing to recognize this fact is the primary reason that so many confer- ences and meetings underperform financially.