Convention & Trade Show Sales Performance FY ’03 – FY ‘09

1. Convention & Trade ShowSales PerformanceFY ’03 – FY ‘09 Presented by Milt Herbert Executive Director Boston Convention Marketing Center January 27, 2010

2. Agenda • Overview – We Are Different • Bull’s Eye Performance • BCEC Performance • Hynes Performance • Industry Analysis • Conclusion

3. MCCA/BCMC/GBCVBWe Are Different • Typical City has Convention Center selling the building and the CVB selling the rooms we have this integrated for “one-stop” shopping • Typical City results in customer negotiating each individual hotel package for rates/terms/room block we have this integrated for “one-stop” shopping • Typical City has contracts that are based on handshakes and verbal agreements we have signed contracts and collected deposits • Typical City is fractured in terms of meeting the customer needs we are committed and unified toward customer satisfaction

4. Bull’s Eye Performance • Bull’s Eye Event is an event that generates 1,000 peak room nights or more • Definition selected to create a measure of performance • There is no good singular definition of compression because it depends on what else is going on in the city • Have contracted 402 separate pieces of business between FY ’03 – FY ’09 • Sales occur in a given year for a future year with range being inside 12 months through 20+ years later

5. BCEC PerformanceFY ’03 – FY ’09 Events and Room Nights Sold

6. Average (FY07 – FY09) Historic BCEC Results: Bull’s EyeBull’s Eye = one or more exhibit halls and > 1,000 room nights on peak Number of Events Number of Room Nights

7. Average (FY07 – FY09) Historic BCEC Results: Total Events Number of Events Number of Room Nights

8. Hynes PerformanceFY ’03 – FY ’09 Events and Room Nights Sold

9. Average (FY05 – FY09) Historic Hynes Results: Bull’s EyeBull’s Eye = one or more exhibit halls and > 1,000 room nights on peak Number of Events Number of Room Nights

10. Average (FY05 – FY09) Historic Hynes Results: Total Events Number of Events Number of Room Nights

11. Analytical View of SalesFY ’03 – FY ‘09 • Early years selling against an empty BCEC book • FY’05-’06 Difficulty of Hynes Sales due to evaluation of an alternative use for the facility • Early years could not book large association events because they were already booked (tend to book 5-10 years into the future) • Early years resulted in significant corporate business which we can no longer obtain due to booking window and availability of dates/space • Convention sales and room nights have stabilized somewhat with increasing quality of events • We knew FY2009 was coming… the following 2 slides were from a presentation given in 2005

12. 40 450,000 400,000 35 350,000 30 300,000 25 250,000 20 200,000 15 150,000 10 100,000 5 50,000 0 0 FY05 FY06 FY07 FY08 FY09 FY10 FY05 FY06 FY07 FY08 FY09 FY10 Definite Contracts Pending Contracts Definite Bookings Pending Contracts Recurring Customers Projected Bookings Recurring Customers Projected Bookings Historical Average for Hynes Projected Hynes Results: Bull’s Eye Number of Events Number of Room Nights

13. Projected Range for BCEC Projected BCEC Results: Bull’s Eye Number of Events Number of Room Nights

14. Future BCEC & Hynes PerformanceFY ’09 – FY ’13 • Projections are performed for future years • Projections include: • Definite Contracts • Recurring Customers (annuals) • Pending Contracts (customer has chosen Boston, but contract not complete) • Projected Bookings • Projecting Bookings are based on the quantity of qualified prospects in the sales pipeline and the historical conversion rate • Projection analysis has performed very accurately for the past 6 years and is expected to continue

15. Historical Average (FY07 – FY09) Projected BCEC Results: Bull’s Eye Number of Events Number of Room Nights

16. Historical Average (FY07 – FY09) Projected BCEC Results: Total Events Number of Room Nights Number of Events

17. Historical Average (FY05 – FY09) Projected Hynes Results: Bull’s Eye Number of Events Number of Room Nights

18. Historical Average (FY05 – FY09) Projected Hynes Results: Total Events Number of Events Number of Room Nights

19. Sample: Sales Production Statistics

20. Events and Room Nights by Year ROOM NIGHTS EVENTS

21. Room Nights per Year by Building HYNES BCEC

22. Events and Room Nights by Market Segment ROOM NIGHTS EVENTS

23. Convention & Trade ShowSales PerformanceWhere Are We? • We have traced nearly 500 separate events as lost business since 2007: main reasons • No dates • No space • No hotel inventory • Insufficient ballroom space • Overall costs • Alternative city selected • There are an estimated 200 additional events that are lost business because we couldn’t get beyond the initial discussion regarding dates, space, hotels • Our competitive set of cities and their associated convention support facilities continues to make investments that make their offerings more attractive to the meeting planner …In February we will discuss the details and the ramifications for future and more business in Boston