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February 1995
Second-Tier Cities
Do they still have the "big fish-small pond" advantage?
By Jenny Tesar
In the early days of the exposition industry, organizers of large and midsize expositions used the fingers on one hand to count suitable cities for their events. Then came so-called "second-tier" cities, which opened an entirely new chapter in site selection. Show managers had more choices; their business was more attractive to more cities; and competition improved both service and price. Today, however, so many cities have entered the exposition arena that second-tier cities are no longer the alternative; they're the norm. Now there are four or five mega-cities, and "everyone else."
So, have show managers lost the advantage they once had in second-tier cities -- that of being a big fish in a small pond? Most say no. But you can still be that big fish, there are just more ponds from which you can choose. And there are some significant reasons for choosing a second-tier city, but there may also be some disadvantages.
A spirit of cooperation
A major plus is the vast number of second-tier cities from which to choose. In addition, many smaller cities are willing to go an extra mile or two to obtain business. "They try harder to work with a show," says Vinnie Polito, Managing Director of The Interface Group. "The bureau tries a little harder to get your business. The hotel community is cohesive, working as a unit against other cities rather than as individuals against each other."
Paul Mackler, Chief Executive Officer of CMC, agrees: "You get an enormous amount of attention and service from the bureau, convention center, hotels and vendors, all of whom very much appreciate your business -- and recognize that you have a wide range of choices for a city."
Many of the cities offer special services to large groups. For example, St. Louis has a citywide program for groups that use the convention center and more than three hotels. "We put banners on the streets, place signage in the malls and give the hotels welcoming ribbons," says Greg Deininger, Vice President of Sales and Marketing for the Saint Louis Convention & Visitors Commission. The commission, he points out, is one of only a handful that both markets the destination and manages the convention center. "We're one team speaking with one voice, which makes it easier for the customer. We have one board, one sales and marketing force, one group of people looking at the value of a group in terms of room tax and occupancy, as well as convention center revenue."
Obviously, the economic impact of an exposition will be felt more keenly by a second-tier city. "I think the city would recognize the economic impact of the event and would assist you in overcoming hurdles that you might not experience in major convention cities," says Carol Fojtik, Vice President at Hall-Erickson Inc. "For instance, major cities often have very convenient shuttle-bus service running on a frequent basis between the airport and hotels. An alternative city may not have such frequent service on a normal day-to-day basis. But perhaps they would put out additional taxis or in some other way increase transportation to meet your needs."
Big fish, small pond
Filling an entire convention center rather than one corner of a larger facility makes your show look more impressive to exhibitors and buyers. "It also gives you better control of the facility," says Stuart Aizenberg, Director of Trade Shows for the National Automatic Merchandising Association. "The facility is not in the position of having to mediate between competing events that perhaps want meeting rooms on the same afternoon. The on-site folks are just dealing with you; they aren't thinking about another group of people down the hall."
Leslie Hogan, Director of Convention Sales and Marketing for the Greater Boston Convention and Visitors Bureau, says: "A medium-sized show can pretty much be the only game in town. Organizers can book the entire Boston Convention Complex, which includes the Hynes Convention Center and three major hotels under one roof, with another 3,000 rooms within walking distance."
Being a big fish in a smaller pond is fine -- unless you're too big for the pondkeepers to service. "These cities don't always offer all the services you're used to in the major cities," says Susan L. Schwartz, Vice President of Epic Enterprises Inc. "Sometimes the convention center doesn't have enough tables and chairs for your breakout meetings. Sometimes you can't get signs made as quickly as you want. Nothing that isn't insurmountable if you know in advance, but you have to be aware of potential problems."
Mackler adds: "While some second-tier cities do a fabulous job, others just don't have the proper staff to handle a show that fills every square foot of their convention center, every meeting room and every sleeping room. It's one thing to have the capacity, it's another thing to know how to manage the capacity. We have had some shows in second-tier cities that maxed out the facilities in every way. People in the city were simply unprepared; they did not deal with the situation in a way that we thought was as professional as that found in the major cities."
Some second-tier cities may have a fabulous convention center but insufficient hotel rooms -- or plenty of hotel rooms but an inadequate facility. The city may not have quite as much to offer in terms of dining, entertainment and sightseeing. "This may be important for shows that are spouse-oriented, because spouses prefer cities that have more to offer," says Peter W. Nathan, Executive Vice President of Expocon Management Associates.
There also may be transportation problems. While some second-tier cities, such as Toronto and St. Louis, are served by virtually every major airline, others, such as Atlantic City, NJ, are less easily accessed by air, which may make it difficult to attract people traveling a distance. This may not be a drawback for some shows, such as the one held by the Northeast Spa & Pool Association. This show has achieved impressive growth since moving to Atlantic City, NJ, in 1982; its enthusiasm for the city is evidenced by the fact that NSPA has reserved show dates there through 2004.
"Our show always takes place the week after Martin Luther King's birthday," says NSPA's Executive Director Joel Caesar. Midweek business in January is nice business to offer a seaside resort like Atlantic City, NJ, and Caesar gets "great cooperation" from hotel and convention center personnel. "We are able to negotiate very good hotel rates and, though most of our attendees drive to Atlantic City, we get those rates extended through the weekend for the convenience of air travelers who need a Saturday layover."
Certainly a big plus of many second-tier cities can be lower costs for meeting space rentals, hotel and meal charges, and labor rates. "These cities are anxious to get you to come there, so they may offer you better deals, in terms of building costs, meeting room costs and other niceties," says Nathan. "Secondly, the hotel packages are sometimes much more reasonable than in the major cities, so it becomes more attractive to your attendees."
Mackler adds: "A lot of these cities also have relaxed work rules that save exhibitors an enormous amount of money and create a more user-friendly environment for our customers."
Aizenberg advises show managers to look at the overall budget, not individual items: "Where you might save money in one area, you'll spend it somewhere else. Cities vary tremendously on individual line items. But we find that when you add it all up, the net washes out to be much the same."
International visitors
If your event attracts -- or hopes to attract -- a significant portion of its attendance from overseas, holding the event in a second-tier city may create problems. People may be reluctant to attend if getting there involves connecting flights and increased travel time. Also, Fojtik says: "A lot of international people really think of only major U.S. cities for expositions. They may not view a second-tier city as hosting a significant event. If the show is well known, an identity problem doesn't exist. But if it's not a significant show in its industry or if it is in a growth period, perhaps people will view it as a second-level show in a second-level city."
Organizers also need to recognize that overseas attendees frequently come not only to see a show but also to enjoy well-known attractions of the show city. "They are looking for a vacation on top of the event," says Schwartz.
This potential barrier can be overcome by heavily promoting a city's attractions in your promotional literature. Many of these cities have wonderful cultural, historic and scenic opportunities. And don't overlook the attractions of the surrounding region.
You also can overcome resistance by offering outstanding conference sessions, Nathan says. "Sessions of high quality, with good topic content and class speakers should be a significant factor in helping to attract a wide range of people," he says. "I think that a good conference program is even more significant when you go to some of these alternative cities."
Atmosphere of cooperativeness
One show organizer after another stresses a critical point: "My exhibitors and I like cities where the atmosphere of cooperativeness, from the top to the bottom, is strong." By and large, they say, such an atmosphere exists in the second-tier cities. It starts with the positive first impressions people get when they land at the airport and continues with the "how can we help you" attitude of the convention center labor force. Best of all -- for organizers and the market they serve -- it concludes with memories of a pleasant experience.
Even after examining all the advantages and disadvantages of holding your show in a major convention city vs. a second-tier city, the primary site selection criteria is the effect the city has on your exhibitors and attendees. Paul Mackler, Chief Executive Officer of CMC, says: "One primary factor drives our decision as to where a show is held: where can we most effectively bring the largest number of buyers and sellers together? For example, we hold Viscomm, which is a visual communications expo, in New York for the East Coast and in San Francisco for the West Coast because of the strength and concentration of the markets served by Viscomm in those places -- despite the fact that we could save money for ourselves, our exhibitors and our attendees if we went to less expensive cities. If we feel we can attract the same number of buyers and sellers or do an equally effective job of serving our market, then without any question, we'll go to a city where we can save ourselves and our customers money."
Stuart Aizenberg, Director of Trade Shows for the National Automatic Merchandising Association, agrees. He periodically surveys attendees, asking them to indicate the likelihood that they would attend NAMA shows in various cities. "We only look to book in cities at the top of the list," he says. "Certain buying companies will attend regardless of where the show is held, but many, many others attend only if the destination is convenient or desirable to them. For instance, our people tell us their three favorite Western destinations are Anaheim, Reno, and Las Vegas, so we rotate our Western show among these three cities."
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