Home' micenet eMag : micenet August 2016 Contents “Secret commissions are illegal in our industry.”
To that CVBS’s Anthony Jepson says in any
industry there will always be a small percentage
of `rogue operators’ who are unscrupulous and
put their own interests first.
From his experience they don’t last long.
“Our business survives on `repeat and referral’
repeat business from existing clients and
referrals by existing clients to new ones.
“There are a number of clients that have been with us from the start. And why? Because of
our customer service – pure and simple.
“Everything that I have said here doesn’t just apply to our company; it applies to any
reputable venue finding agency or PCO. Luckily, that’s about 95 per cent of the MICE industry.”
Ros McLeod, MD of PCO company Arinex, says venue finders is an American concept and
was created because of the large size of associations in the U.S. who have to outsource a
range of services.
“In the case of venues there is such a range of availability in the USA that it takes expertise
and lots of time to work your way through offerings in any of the big destinations,” she says.
“Population base is the reason for this with the USA being 13 times the size of Australia. It
therefore works for a number of American clients to outsource to a venue finder who can source
the right meeting space over the right dates and execute the contract on behalf of the client to
meet their particular needs. The same applies to accommodation bookings.
“Applying this model to Australia and indeed many other countries is not always a good idea
as there are specialist local conditions and demands that a venue finder is not familiar with and
the market operates differently. Both the hotels and the client/participants are familiar with the
workings of the venue finder model in the USA but here in Australia it is a different concept and
not always understood by this market.
“The service stops at the booking stage and the commission is paid simply for connecting the
client with the venue/accommodation. Here in Australia conference clients and hotels expect the
PCO or housing service to be there from the booking stage till the final bookings are confirmed.
“When PCOs receive commission for hotel bookings the PCO/housing service is paid by the
IN ANY INDUSTRY THERE WILL
ALWAYS BE A SMALL
PERCENTAGE OF `ROGUE
OPERATORS’ WHO ARE
UNSCRUPULOUS AND PUT
THEIR OWN INTERESTS FIRST.
hotel to do a complete service, the same as
a travel agent does for their clients. The value
of paying a commission is not just the
introduction of a client but relieving the hotel
of the work involved in servicing the client up
till they check-in. Commission is not a gift, it
is a payment for work done.”
Another Canberra-based venue operator
has no problem with venue finders.
“If they’ve built themselves a business –
and it doesn’t cost the client anything – I say
good luck to them,” she says.
“In our industry we have organisers who
charge a management fee to clients whereas
venue finders charge nothing, and there are
some people who operate somewhere
“I can say that there are some well-
established venue finders who bring hotels a
lot of business. The ones that are doing really
well have long-term repeat clients. And hotels
see value in paying them to do that.
“There are some really good venue finders
and some pretty dodgy ones. It’s the same
for PCOs. There’s a lot of really great PCOs
and dodgy ones too.”
One comment from a long-standing client
of CVBS had this to say about their working
relationship with the venue finder:
“I have relied on CVBS over the last 13
years to research and book many venues on
my behalf. My requirements have been for
events from four people to 500. CVBS know
my requirements and expectations and have
always provided the right type of quote for
my needs. They have often had to negotiate
the best deal for my budget – with excellent
results. There have been times when some
venues have been less than accommodating
and CVBS have always negotiated a mutually
beneficial outcome on my behalf.
“W ith the constant changes in contacts at
venues, it has always been a bonus to know
the stability that CVBS offer full support when
things go pear shaped at a venue and they
can utilise their extensive network of industry
contacts to solve issues. They constantly
travel and review properties, which is apparent
by their up-to-date knowledge of the event
and conference industry which has been of
huge benefit, saving me hours of research.
“They build relationships, not databases
and their honesty and quick responses have
always been appreciated.” m
Searching for venues for
meetings and events is a
full-time job, says CVBS’s
micenet | 5
Links Archive micenet June 2016 micenet October 2016 Navigation Previous Page Next Page