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HOTEL BUSINESS REVIEW

SEPTEMBER FOCUS: Hotel Group Meetings

 

Tradeshows and Technology: Finding the Synergistic Sweet Spot

By Michael Sturman, Ph.D. Professor, Human Resource Mgmt, Rutgers School of Management & Labor Relations | August 2015

Communications technology has become an important but in some ways unheralded feature of tradeshows. Although interactive technology may someday replace the tradeshow, that day has not yet come. Instead of replacing tradeshows, communications technology has become essential to tradeshows' operation by improving efficiency for participants. As we discuss here, tradeshow organizers should seek a "sweet spot" that balances the cost of technology with the amount and type of technology used by exhibitors and attendees.

To understand the importance of digital technology to tradeshows, let's start with the reasons that exhibitors and attendees participate in tradeshows, as reported in a study published by the Center for Hospitality Research. The study's researchers are HyunJeong Han, who is on the faculty of the National Research University in Moscow, and Rohit Verma, who is a professor at the Cornell University School of Hotel Administration. With the assistance of the ASAE Foundation, Han and Verma surveyed 2,527 tradeshow participants: 674 exhibitors and 1,853 attendees.

Not surprisingly, exhibitors and attendees give somewhat different reasons for their tradeshow attendance; nonetheless, these reasons are complementary in many ways. Organizers must therefore find a "sweet spot" in many areas of the tradeshow operation, including size, technology, and educational offerings.

Information exchange is central to both groups' participation in a tradeshow, and technology has become essential in this process. The exhibitors identified these top four reasons for tradeshow attendance: to promote their brand, to develop market leads, to network with industry peers, and to introduce products and services. The attendee group gave the following four top reasons for traveling to a tradeshow: to attend educational sessions, to learn about the latest products, to network with industry peers, and to attend speeches or other sessions.

Comparing these lists, we see that exhibitors, who are focused on developing sales leads, can meet their potential customers' needs if they focus their presentations on their new products or processes. That approach gives attendees the opportunity to meet their goal of learning what is newly available in their field. Because time is a critical element for both groups, this is one area where technology can enhance exhibitors' reach and save time for attendees.

Exhibitors can focus their booth presentations on their newest and most important products and processes, while at the same time offering information about the rest of their product line via web pages, through QR codes, or by distributing stick drives containing the information. As a side benefit, that approach also improves a tradeshow's sustainability, because printed collateral is no longer needed. Regardless of sustainability issues, the survey found that attendees are not interested in hauling large quantities of collateral away from a tradeshow.

Missing from the priority list of reasons to participate is being a tourist-that is, attending the show as an excuse to visit the location or for other personal reasons. At the same time, the respondents had definite opinions about tradeshow destinations. Some participants pointed out the excitement of such destinations as New York or Las Vegas over the more modest amenities found in smaller cities. In the end, however, there was no consensus on whether a tradeshow's location helps or hurts attendance. The show itself is the key, not the destination.

Setting aside the destination, survey respondents had strong opinions about what they wanted to see in a show. To rank the value of the tradeshow's elements, Han and Verma asked the exhibitors and attendees to rate the utility of various attributes by assigning utility scores ranging from 0 to 1.00.

Once again, the two groups had contrasting priorities. For instance, the size of the show, in terms of the number of attendees, is a key point of difference. Exhibitors gave "large number of attendees" a perfect utility score of 1.00, but attendees saw little value there, with a minuscule utility score of less than 0.1. Thus, show size appears to be an attribute that requires a sweet spot, with enough attendees to make it worthwhile for the exhibitors, but not so many that serious contacts are crowded out. Exhibitors also want a show with a sufficient number of exhibitors-a critical mass-so that it will draw a strong attendance.

In addition to giving a low utility to crowded shows, attendees' focus on education came out in this utility analysis. They assigned a utility above 0.9 to the quality of educational offerings, quality of speakers and panelists, and the topics of talks, panel discussions, or workshops. For this reason, many tradeshows are connected with professional conferences. Exhibitors did not ignore these educational attributes, but their utility scores were not as high on these factors.

One other factor that did emerge here is affordable event registration cost. Both exhibitors and attendees recognized the importance of expenses relating to the tradeshow, and both assigned a solid utility score near 0.7 on registration cost. The average registration cost for this group of respondents was slightly over $300. Other travel-related costs for attendees were much higher, including lodging costs (at about $550), food and dining (just over $400), and transportation costs (about $350). For exhibitors, the booth fees represented the highest single cost, exceeding $5,000 for this sample. Other expenses, such as freight and logistics, insurance, cost of entertaining clients, and sponsorships added several thousand dollars more.

The duration of the event is another area where tradeshow organizers should look for a sweet spot. Based on responses from the two groups, the show should be long enough to give exhibitors the chance for maximum exposure, but not so long that all the attendees have departed before the show concludes. The respondents noted that early departure is a common practice among many attendees.

Hosted buyer programs are growing in importance for exhibitors, although they are not on most attendees' radar. In this sample, the exhibitors gave hosted buyer programs a utility of .10, but that is ten times the utility from attendees, who were near zero on this item. Exhibitors are interested in these programs because they increase the likelihood of promoting sales. Most attendees in this survey simply were not yet aware of such programs.

With an understanding of the goals held by exhibitors and attendees for attending a tradeshow, we can return to the question of the technology sweet spot, or the appropriate level of technological support as balanced against the cost of those applications. Ironically, technology is not given as a strong reason for participation in a tradeshow. Instead, it appears that both exhibitors and attendees simply expect the show to provide current technology applications. Given that understanding, it's clear that tradeshow organizers are integrating technology throughout their shows in response to their customers' demands.

Exhibitors in particular take note of what type of technology is available in a tradeshow venue, perhaps because they are more aware of the tradeshow's nuts and bolts. A substantial percentage of survey respondents in both groups reported the following technology options at the venues of shows they had recently attended: wi-fi internet access, video displays, an internet cafe, mobile apps for phones and tablets, social media integrated with the event's website, and touch-screen displays.

A relatively large percentage of attendees also stated that the event provided applications for scheduling meetings with exhibitors, and those who had access to that option made good use of it. Like the hosted buyer program, scheduling software focuses on the key element of tradeshow attendance, which is to make the most efficient use of the time available as sellers connect with their potential buyers.

Of course, making technology available does not mean that everyone uses it. About 20 percent of the attendees never used an internet cafe, the social media on the event's website, or any mobile apps. Han and Verma do not see this statistic as a reflection on the tradeshows as much as a reflection of the fact that not everyone is ready to use the latest technology. On the other hand, even those who seemed reluctant to embrace new technologies took advantage of having customized information on the event's website or used matchmaking software to schedule meetings and appointments.

The exhibitors and attendees who did use the available technology gave the systems generally high marks, and the study found little difference in the satisfaction ratings given by the two groups. They gave high ratings to being able to log into the internet using the venue's wi-fi server, and the availability of an internet cafe also was highly rated. Other high rated technology applications included the custom website, mobile apps, matchmaking software, and video displays and touchscreens at the event. Attendees also liked having virtual displays of the exhibitors, and many of the exhibitors also took advantage of that application.

As is the case with technology, tradeshow participants expect organizers to provide sustainability programs, but (also like technology) green operation is not a prime reason for attendance (or a decision not to attend). Nonetheless, respondents in this survey expressed higher satisfaction when they attended tradeshows that did employ sustainability programs. Once again, exhibitors were more aware of the sustainability options provided by a tradeshow than were the attendees. High percentages of responding exhibitors noted the existence of on-site recycling programs and the use of technology to reduce the amount of paper for handouts and flyers.

Other, less common sustainability programs included reusable and environmentally friendly display items, LEED certification of the event facility, energy efficient lighting, and motion sensors for light and climate control. Attendees also noted some of these green efforts, but again it seems clear that they are not as focused on the nuts and bolts of the tradeshow compared to the vendors. It's also possible that the tradeshow venues have adopted other green practices that were not noted by either group of participants.

Han and Verma conclude that the basic purpose of a tradeshow remains the same as ever-to facilitate business outcomes for both exhibitors and attendees. To the extent that technology helps both groups achieve their goals, the amount of communications and sustainability technology will continue to grow. Although it's clear that exhibitors and attendees have different goals for tradeshow attendance, technology will be a key element in connecting the two groups, and the sweet spot for technology will continue to evolve as the exhibitors and attendees find new applications that help them achieve their complementary agendas.

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Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

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Fred Realbuto Sustainable Practices: Beyond the Hotel Room
  • By Fred Realbuto, Director of Green Lodging / Green Hospitality Certification, Audubon International

    • As the hotel industry continues its vital transition into the brave new world of Green Hospitality and implements new sustainable best practices every day, it's easy to overlook the fact that all change takes place on two big fronts: what guests see and experience, and what they don't.In other words, efforts behind the scenes further a property's stewardship commitment for the guest's (and planet's) benefit, while bolstering the bottom line, not only in capital expenditures but in customer satisfaction and return business. Vacationers look for and expect sustainable practices in every corner of the hospitality experience. Following are examples of...

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Haley Payne Bridging The Attention Gap: The Importance of Air Quality in Hotel Meeting Spaces
  • By Haley Payne, Head of Commercial, Pure Wellness

    • The distant stare, absent-minded twirling of the pen, subtle fidgeting on an uncomfortable chair - all too familiar signs of boredom, fatigue, and disconnectedness during meetings and events. This tendency to zone out has plagued the corporate world for eons and has become even more prevalent as companies embrace hybrid and remote work models, ditching their on-site meeting rooms (and, often, office spaces altogether) to bring like-minded individuals together off-site in hotel conference and event spaces. There, time spent together is a precious commodity, and attention spans are fleeting-therefore, maintaining focus and alertness in hotel meeting spaces becomes paramount....

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McKayla Dyk Capitalizing on Citywide Events to Drive Occupancy
  • By McKayla Dyk, Senior Media Manager, Crowe PR

    • Hotels constantly navigate the multipronged challenge of maximizing occupancy while delivering exceptional guest experiences. Cultivating a keen awareness and active participation in citywide events is one of the most effective strategies for achieving both objectives simultaneously. Authentic involvement at the local level allows properties to create unique, memorable stays that resonate with multiple audiences, including out-of-town guests and the broader community. From major sporting events to cultural festivals and concerts, large-scale gatherings present hotels with unprecedented opportunities to showcase their properties, drive revenue and build lasting relationships with guests. The Strategic Value of Event-Based Marketing Citywide events...

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Cara Silletto Transforming Management Effectiveness: How Strong Are Your Managers' Leadership Skills?
  • By Cara Silletto, President & Chief Retention Officer, Magnet Culture

    • The hospitality industry thrives on exceptional service, seamless operations, and a dedicated workforce. However, as a workforce retention expert, I see too many managers lacking the basic leadership skills essential for driving team success, providing quality service, and ultimately retaining employees. High turnover not only disrupts operations but also drains resources. Identifying and addressing the root causes of management issues through targeted training can significantly improve an organization’s performance and employee retention.The Hidden Costs of Poor Management When turnover is high, everyone and everything suffers. Replacing employees is costly, both financially and in terms of the time required to...

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Wendy Hansen Understanding Subordination, Non-Disturbance and Attornment Agreements (SNDAs)
  • By Wendy Hansen, Counsel, Eversheds Sutherland

    • At some point in the ownership lifecycle of nearly every hotel, the owner will seek debt financing – whether for construction, acquisition, recapitalization or renovation. The basic loan documentation will be consistent with loans for other commercial property types, typically including a promissory note, loan agreement, deed of trust or mortgage, assignment of leases, UCC-1 financing statements, and a subordination, non-disturbance and attornment agreement or “SNDA”. While the SNDA is a fairly common instrument in commercial real estate transactions and the underlying principles are the same, there are unique considerations when applied to a hotel financing. This article is...

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Josh Felix How to Support The Mental Health of Hospitality Staff When The Pressure's On
  • By Josh Felix, Director, Solution Design, Axonify

    • The third season of “White Lotus” recently wrapped and left an indelible mark on pop culture. The award-winning and widely-discussed show, known for its sharp-as-knives satire and meme-worthy moments, follows the interactions between the ultra-wealthy hotel guests and the staff who cater to their needs at the namesake luxury resort, putting the hospitality industry front and center in the cultural conversation. Watching these heightened characters behave in absurd, poignant and violent ways was not only prestige TV at its finest but also an opportunity to explore the complex dynamics at the intersection of privilege, service and human behavior within a...

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Sanat Patel The Federal Open Market Committee Has Reduced the Lending Rate - What Now?
  • By Sanat Patel, Chief Lending Officer, AVANA Companies

    • Following the Federal Reserve’s 0.50% reduction in the Fed Funds rate on September 18, 2024, the hospitality lending sector faces new opportunities and risks. Cheaper borrowing costs could stimulate investment, but rising unemployment and potential inflation pose challenges. This article explores three scenarios for hospitality lending: 1) A recovery scenario driven by strong liquidity and increased demand; 2) A cautious growth scenario, tempered by economic uncertainty; and 3) A recessionary scenario marked by rising defaults and tightening credit. Additionally, new development and construction financing are heavily impacted by these economic dynamics, influencing lenders’ willingness to fund new hospitality...

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