International Congress and Convention Association

1. International Congress and Convention Association Today’s and Tomorrow’s PCO 44th ICCA Congress & Exhibition, Monday 7 November 2005 iccaworld.com

2. International Congress and Convention Association Today’s and Tomorrow’s PCO Panellists: - Sarah Markey-Hamm ICMS Pty Ltd, Australia - Julio Urban Idealiza Events, Brazil Moderator: - Jurriaen Sleijster MCI, Switzerland iccaworld.com

3. International Congress and Convention Association • Today’s and Tomorrow’s PCO • PCO views from 3 continents: how we see the future • A lively debate with the audience: how you see the future • How do PCO’s need to change? • What are the biggest challenges? • Which business models? • What do clients want next? iccaworld.com

4. International Congress and Convention Association Model for this session: Client PCO Competitor Supplier iccaworld.com

5. International Congress and Convention Association • Model for this session: • Bold statements about the future • Graphs projecting trends • Lively debate to see if we agree! iccaworld.com

6. International Congress and Convention Association Perspective 1: The PCO Client PCO Competitor Supplier iccaworld.com

7. International Congress and Convention Association • The PCO: • Business Model • Staff • Technology • Finances & Fees iccaworld.com

8. International Congress and Convention Association • The PCO: Business model • Services: From logistics to knowledge-management • From PCO to Core-PCO to Association Management • More different services • Brand: Increasingly important • Risk-sharing & creating own events versus “simply supplying” iccaworld.com

9. International Congress and Convention Association • The PCO: Business model • Size matters: bigger AND smaller + _ time iccaworld.com

10. International Congress and Convention Association • The PCO: Business model • Location: PCO must be close to the client • Location: PCO must be close to the event destination • Groups, partnerships, mergers and acquisitions (national & international) • Purchasing key to success (preferred suppliers, set contracts) iccaworld.com

11. International Congress and Convention Association • The PCO: Staff • More educated: “consultants” • Higher salaries for better skills • Fewer staff for same workload • “What’s in it for me?” attitude • International staff is a “must” iccaworld.com

12. International Congress and Convention Association • The PCO: Technology • Less in-house data management • Increasing on-line tools • Do-it-yourself service tools • Cost of IT increasing • IT skills KEY in staff efficiency iccaworld.com

13. International Congress and Convention Association • The PCO: Finances & Fees • Price (cost to client) increasingly important • Transparency will kill % margins & kickbacks • Selling added value instead of time: “price per service” • Cash flow: a need for more cash? • Client will shop around more • PCO should be “client-selective” iccaworld.com

14. International Congress and Convention Association • The PCO: Finance & Fees • Invoicing: From % to time to added value added value + time $ % _ iccaworld.com

15. International Congress and Convention Association Perspective 2: The Client Client PCO Competitor Supplier iccaworld.com

16. International Congress and Convention Association • The Client: • Sophistication • Needs • The new client iccaworld.com

17. International Congress and Convention Association • The Client: Sophistication • Outsourcing versus in-house • Improved purchasing • Knowledgeable buying • Client staff moves around: ex-colleagues and ex-competitors become clients • Clients increasingly become good references or barriers (they exchange ever more information) iccaworld.com

18. International Congress and Convention Association • The Client: Needs • Specific services rather than package solutions • Will use multiple suppliers • From sole risk to shared risk • Will shop for simple (logistical) solutions… • …but needs consulting & added value (opening for PCO’s who are ahead of the curve!) iccaworld.com

19. International Congress and Convention Association • The Client: The new client • Emerging markets • “Between meetings” • Corporates behaving like associations • PCO’s creating their own events iccaworld.com

20. International Congress and Convention Association Perspective 3: The Supplier Client PCO Competitor Supplier iccaworld.com

21. International Congress and Convention Association • The Supplier: • Quality & price • Partnerships iccaworld.com

22. International Congress and Convention Association • The Supplier: Quality & Price • PCO’s will increase demand for quality from suppliers: their success is the PCO’s success • Price pressure from client to PCO gets passed on to supplier • Same solution for supplier as for PCO: become an added value (competition on price leads to certain death) iccaworld.com

23. International Congress and Convention Association • The Supplier: Quality & Price • PCO’s become more knowledgeable buyers • PCO’s will use purchase agreements and preferred vendor agreements iccaworld.com

24. International Congress and Convention Association • The Supplier: Partnerships • Contracts become increasingly important, but… • …building relationships with suppliers is KEY to success (“we’re all in this together!”) • Best network = winning advantage • Suppliers as source of new business iccaworld.com

25. International Congress and Convention Association Perspective 4: The Competitor Client PCO Competitor Supplier iccaworld.com

26. International Congress and Convention Association • The Competitor: • The ones you know • The other ones… iccaworld.com

27. International Congress and Convention Association • The Competitor: The ones you know • The strong ones will get stronger: the battle will be harder • Niche-marketing PCO’s: small and nimble, picking little pieces • Who’s buying who? A new way of competing • The client & his do-it-myself solutions iccaworld.com

28. International Congress and Convention Association • The Competitor: The ones you know • Competition moves from price to skill to added value added value + skill C price _ time iccaworld.com

29. International Congress and Convention Association • The Competitor: The other ones… • The all-in-one event venues • Convention bureaus who supply PCO services • DMC’s who expand their services • Marketing agencies & PR agencies (ditto) • AV agencies, production companies (ditto) iccaworld.com

30. International Congress and Convention Association Client PCO Competitor Supplier … and your perspective ? iccaworld.com

31. International Congress and Convention Association Thank you! Today’s and Tomorrow’s PCO 44th ICCA Congress & Exhibition, Monday 7 November 2005 iccaworld.com