Three cities will be the setting of major, international events this and next year. Tampa, Florida; Charlotte, North Carolina; and Washington, D.C. will have a microscope on their respective cities for the political conventions and the Presidential Inauguration:
• Tampa will host the Republican National Convention 27-30 August 2012.
• Charlotte will host the Democratic National Convention 3-6 September 2012.
• Washington D.C. will host the Inauguration January 2013.
Can the Presidential Inauguration be treated like any other major event?
In offering advice to hoteliers, Jasinski said, “A couple more revenue and rate strategy-related items to consider are the extended-stay occupancy percentage, group ‘pick up’ and your regular, corporate clients.”
Expect and plan for cancellations
Both Republicans and Democrats will book early for the Inauguration in 2013. But what if their party doesn’t take the White House? Most cancel their trip, including large groups. Therefore, prepare for cancellations and write your contracts accordingly. A well-written group room’s contract will inform and prepare the guests, as well as protect the hotel.
In November 2008 when President Obama was elected, the hotels located in the city center of Washington filled immediately, first with large groups, at a lower rate, then transient/leisure guests at a higher rate—a good plan.
The suburban Washington hotels first accepted the higher rated transient/leisure rooms with expectations to fill the rest of their rooms with smaller groups—also a good plan. All was fine until the economy continued its sharp decline in November, December and January of 2009. Many of those big groups canceled inside the District of Colombia and moved their rooms to the lower-rated suburban hotels as far out as Dover, Delaware. This opened up a huge void of guestrooms in downtown Washington, and by the end of December, the guests profile had changed; those previously willing to pay high rates because they were location-sensitive were now cost-sensitive and location didn’t matter as much. It was a fun, chaotic time for Washington-area hoteliers.
*Note: 20 January falls on a Sunday in 2013, which means the actual inauguration for public view will be held Monday, 21 January, extending the weekend one extra night. In the past, when 20 January falls on a Sunday, U.S. presidents have been officially sworn in during a private ceremony on the 20th. Plan accordingly.
Some helpful tips:
• Plan early, revise often
• Offer value-added packaging
• Use competitors as reference, not guidelines
• Communicate the cancellation policy
• Use advance deposits
• Focus on the whole guest experience
Planning for the DNC and RNC
The Inauguration happens in the same city every four years. The Republican and Democratic National Conventions are held in a different city every four years, much like the Olympics. These cities are selected by the Democratic National Committee and the Republican National Committee.
According to a Charlotte Observer article from February, 2011, the Democratic National Convention starts on Labor Day 2012 and is expected to generate more than US$150 million in economic benefits. It will bring in more than 35,000 delegates and visitors as well as international attention to Charlotte.
With the DNC and RNC cities being selected 18 to 24 months in advance of the event, it allows the city’s political and business leaders to prepare and plan for this major event. Also, it allows travelers the chance to plan. Hotels and hospitality leaders start preparing from the day the conventions are announced. With all this time to prepare, it would be a failed strategy to simply sell-out all the guestrooms at the highest rate possible for the dates of the event.
Native Charlottean Clarke Allen, founder and president of Charlotte Arrangements, a destination management company, said, "You're leaving money on the table if you are just selling rates, dates and spaces. An international event like the DNC offers you a chance to make incremental income by packaging your product with the local resources. Whether you package by adding valuable shuttle transportation to area events or you bundle tickets to attractions, you can provide your guests with a great ‘experience’ while increasing your bottom line.”
Allen suggests contacting your local destination management company. They can assist in putting together packages that include a host of amenities and options that will differentiate your property from the competition.
Managing revenue
Of course, as with any large citywide event, there is the question of how to manage the revenue. As for rate strategy, David Love, GM at the Residence Inn Charlotte Uptown, is holding inventory for group opportunities two to three weeks before and one to two weeks after the main event because there will many contractors for the pre-convention services as well as post-convention services.
Bob Morgan, president and CEO of the Charlotte Chamber of Commerce, said, “Delivering customer satisfaction is not complicated. You need to know what your customer’s expectations are and then be intentional in exceeding them. I would think that having staff on hand during the DNC who can answer basic questions—‘What’s happening, when and where? Directions on how to best to get there? The places not to miss? Where to eat?—will be critical.”
Meeting this request might be a regular scheduling task for a full-service property, though it might take some planning for hotels in the select-service sector.
I brought up this topic during a phone conversation with Bob Morrison, executive director of the Tampa-Hillsborough County Hotel Motel Association, whose city is expecting more than 15,000 media and support members to visit for the August RNC. He said it’s all about the guests. He sees huge value in creating a “welcome” package for first-time visitors to the city. He also suggested getting to know the food-and-beverage schedule of the convention center or event venue. If there is limited food available on one of the dates, then you can expect your restaurant to be busy. Morrison said that the select-service hotels will be used to house contractors and IT support people, which rarely get a chance to eat at the venue, so be prepared for them to frequent the complimentary breakfast buffet before heading to the event.
The secret sauce is in the preparation. London will be hosting the 2012 Summer Olympics in August. If it’s perspective you desire, give some hoteliers a call overseas and they will offer up advice three years in the making. If you’re thinking “big picture” and want to get involved in the selection process of these major events, contact your local chamber of commerce or convention and visitors bureau, which have “host” committees dedicated to attracting major events such as the RNC and DNC.
Good luck and have fun!
Adam Zembruski is the president of Pharos Hospitality, a Charlotte, NC-based hotel investment platform explicitly designed to acquire, own and operate franchised upscale select service hotels. Adam oversees all operating entities at Pharos, including Property Assessments and Takeover, Sales and Marketing, Revenue Management, Human Resources and Culture Development, System Implementation, Financial Analysis, and Talent/Performance Tracking. Adam can be reached at 704-333-1818, ext. 12, or via email at azembruski@pharoshospitality.com
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