Trade Show Executive

creating
new
MODELS
MCCA has invested $500,000 in a strategy and product
development team to explore new revenue streams for the
three convention facilities that MCCA manages.
“Nothing is off the table,” said Rooney. “That may mean
creating, executing and partnering on trade shows, or that
may mean developing new products and services to provide
alternate revenue streams.”
MCCA budgeted for eight staff members in the fi rst year.
The department is budgeted to cover its costs by revenues
generated by 2015.
“There may be people who feel like it’s not a good thing
for a public building to compete with the private sector,”
said Rooney. “But I hope there are many others who will
see this as an opportunity to partner with destination like
they’ve never done before.”
Team Players. MCCA’s new strategy and product development
team will explore alternate revenue streams for the Boston Convention
& Exhibition Center, John B. Hynes Veterans Memorial Convention
Center and MassMutual Center. Pictured from left to right: William
Sell, director, event development; Mark Michaud, director of business
strategy & innovation; Stephanie Shalkoski, director of digital media;
Johanna Storella, chief strategy offi cer; Siroun Majarian, market
research analyst; and Chris West, manager of product management.
One successful strategy MCCA has
employed is to repurpose 20,000 square
feet of underutilized meeting space at
the Hynes Convention Center and convert
it to restaurant space. “We created
partnerships with two restaurants that
has generated $2 million in revenues,”
said Storella. “Are there other ways
we can generate non-event revenues?”
Blazing the Trail
European convention centers — like
Messe Frankfurt, Messe Dusseldorf and
Hannover Fairs — have been producing
their own events for years. These quasipublic
entities produce some of the most
successful events in the world, including
CeBIT, Automechanika and EuroShop.
“The German trade fair model has
been successful, and facilities in China
are starting to do the same, as many
convention centers outside Beijing and
Shanghai operate at less than 50% occupancy,”
said David DuBois, president,
International Association of Exhibitions
and Events (IAEE). “It’s a global trend that
we will see more of in 2013 and beyond.”
MCCA is looking to develop events
that don’t compete with existing clients.
“We will look at creating events that
are not offensive to our customers,” said
Rooney. “We’ve looked at events, such as
Art Basel in Miami, which has grown to
become one of the largest international
art shows in the world. I can see MCCA
launching a regional art show.”
A handful of U.S. convention centers
have dabbled in this strategy, and some
have realized modest success. For example,
the Ernest N. Morial Convention Center
in New Orleans (MCCNO) launched the
International Disaster Conference & Expo
(IDCE) in January 2012 (see our feature,
Strange Bedfellows?, in the August 2011
issue of Trade Show Executive.)
In 2013, IDCE, which attracts private
and public sector disaster professionals,
increased attendance by 10-15% and
exhibitors by 15%. “The show is generating
revenue for the facility,” said Bob
Johnson, general manager, MCCNO.
“In addition to creating our own
events, we are able to lend support to
existing events and provide services for
a fee,” said Johnson. The three-person
department will assist a state association
If you look at it
honestly, for-profits
and associations
are subsided by
taxpayers under
the current model.
I understand the
argument, but the
lines are blurring
in almost every
industry.
James Rooney,
EXECUTIVE DIRECTOR,
MASSACHUSETTS
CONVENTION
CENTER AUTHORITY
www.TradeShowExecutive.com | March 2013 43