Displayed in (Fig. 2, p.5) indicates pricing of all- inclusive packages for conferences are also important, as expenditure for business travel is not as elastic as previously in the areas of corporate and incentive travel.
Fig .2 Dimensions of demand in business travel and tourism
The level of The level of
Frequency demand for demand for
of travel particular particular
destinations venues
The level of demand
Expenditure for different types of
during the trip accommodation
Business
The duration Travel The level of demand
of the trip for the product and
and services of particular
suppliers and
Tourism intermediaries
The segmentation of
The purpose of the trip The the market on the basis
and the type of seasonality of type of employer,
business tourism of demand age, sex, race and
Nationality for example
(Source: Swarbrooke and Horner, 2001, p.24.)
“The demand generators for the conference business can be most conveniently categorised into the corporate market and association market” (Shone 1998, p.19). Demand is for discretionary businesses aiming to make profit and those promoting an association as in the Scottish Labour Party Conference.
Supply Issues
In supplying business tourism, strong characteristics and benefits include a key role in local economies and the multiplier effect on local trade, employment, and promotion the of global areas, countries and cities. Supply is linked with the main organisations and professional bodies in the industry and their quality event management including promotion and sales via ambassador programmes and the e-commerce industry.
Reacting to threats to the industry including War with Iraq, and 9/11 the United Kingdom (UK) was the top European destination for meetings. “Comparing the current confidence with that of the early nineties, the Gulf War led to a greater drop in business, than that prompted by September 11.” (ITMA Industry Trends 2002). Glasgow was the fastest growing conference city and the UK was second globally to the United States. (Creevy 2002, p.9).
Data in Fig 3 shows results of the UK’s supply performance indicating success in initiatives including ambassador’s programmes. Eddie Friel, (2002, p.9) Greater Glasgow and Clyde Valley Tourist Board chief executive states that the “ambassadors programme pulls in 50% of our business and our online bid service will insure awareness of Glasgow as a meetings destination of international stature”.
Fig 3. Top five European meetings countries
(Source UIA, 2002, p. 9)
The British Association of Conference Destinations (BACD), one of the main industrial organisations remains confident that business will remain stable in 2003. As business travel expands over the internet the Website of the BACD provides critical links to the Scottish Convention Bureau and in the City of discussion the Aberdeen and Grampian Tourist Board’s business travel division the Aberdeen and Grampian Convention Bureau who aim to increase the discretionary business tourism in the area.
The City of Aberdeen
The Energy Capital of Europe, Aberdeen is benefiting from the positive UK economy, where interest rates, inflation and unemployment are low. Indicating Aberdeen as an inspired destination for UK business visitors, statistics are above Scottish levels (Fig. 4, p.7).
Fig. 4 Main Purpose of UK Tourist Trip to Aberdeen 2000 (%)
(Source: City Focus 2002, Tourism in Aberdeen and Grampian (2000): Visit Scotland)
As a conference destination Aberdeen has the strengths of access by rail, road or airport (Fig.6, p.12). Convention hotels include the onsite Holiday Inn, the Thistle Hotel, Altens (largest with 216 bedrooms) and the Hilton Treetops Hotel with the largest theatre for meetings of 1000 delegates. (Appendix 1, p.18). The expansion and upgrading of the Exhibition Centre (AECC) to the largest in the North East of Scotland includes a capacity of 4,700 in The Press and Journal arena. The University of Aberdeen also has a theatre capacity of 594 delegates. Aberdeen can also offer unique venues such as Aberdeen Football Club, Maritime Museum, Crathes Castle, - Aberdeen’s top paid attraction in 2001 with 93,467 visitors -(Scot exchange 2003), and the Marcliffe at Pitfodels. (Aberdeen and Grampian Convention Bureau, p.10).
Aberdeen also has an invested interest in oil, gas and renewable energy with strong new business links in West Africa.
The weaknesses in Aberdeen include the poor road infrastructure, infrequent airport links by bus service, one small 5-Star Hotel and the location of the main AECC is remote from the largest hotel in Altens. Aberdeen has yet to implement a pedestrian only main street and does not have the benefit of a unique selling point and good weather.
There are opportunities in Aberdeen to develop business tourism, led by Jacky Selway (Business Tourism Manager) and her small team at the Aberdeen and Grampian Convention Bureau who ascertain bids and promotes Aberdeen as a place offering culture, commerce history, and scenery, to compliment the new business sector. (Aberdeen and Grampian Convention Bureau, p.5).
Threats remain from competition in Glasgow, Edinburgh, Belfast, Dublin, Amsterdam and Stavanger and golfing favourites including St. Andrews and Turnbury as they are more accessible by air and/or have more sophisticated larger 5-star hotels.
The City of Aberdeen will benefit from a recent announcement that a new body Called Event Scotland will be established with £10m funding from the Scottish Executive (Conference and Incentive Travel 2003).
This will help aid the Aberdeen and Grampian Conference Bureau in funding for bidding, improvement of IT facilities and internet website, to promote Aberdeen attracting large scale events to Aberdeen and to increase their immature small sized organisation.
Fig 5. Events planned for Aberdeen
(Source: Adapted from ‘Diary’ in Energy 14 March 2003b, p.2 and Press and Journal 14 March, p.11).
The current events planned for Aberdeen (Fig.5, p.8) show the importance of entertainment along with oil, gas and their links with the future of renewable energy (including wind farms). The All-Energy conference is in its third year and is an example of how a potential commercial risk from David Stott of Offshore Europe fame. (Energy 2003a, p.5) can lead to success.
Aberdeen has recently completed an £18m+ expansion project at the AECC including 23 new breakout rooms has signed a sponsorship deal with the Press and Journal “The main auditorium at the AECC will now be called the Press and Journal Arena.” (Allan 2003, p.11).
Aberdeen runs another example of a successful ambassadors’ programme, which has earned the city £8m in business since it was launched in 1999. “We should be going all guns blazing to develop it further,” says Jacky Selway, who notes the city has particular areas of expertise that may be attractive to conference organisers, including oil and gas, marine biology, energy and food research. (Conference and Incentive Travel 2003).
Munro’s Tourist Agency handles all accommodation for Offshore Europe and is geared solely to meet the requirements of Commercial Clients. In assisting Aberdeen and Grampian Convention Bureau their experienced staff have an extensive knowledge with regard to the obtaining of competitive air fares for journeys, and are trained to organise complex itineraries for today's business travellers at short notice. (Munro’s Tourist Agency 2003).
The benefits of Offshore Europe are tremendous to the local economy. It has recently been revealed that Scottish tourism’s main event Expo 2004 will be held in Aberdeen, after being held in Glasgow for 11 years. VisitScotland marketing director stated “the tourism sector in the North East made it evident that is eager and capable of hosting this event and has shown great commitment to making it a success and a benchmark for future trade shows.” (Findlay 2003).
Aberdeen Gateway to the Future in Business Travel
To maximise business travel Aberdeen has to look at certain areas for improvement.
- Improved city transport links
- Establishment of a 5 Star Flagship Hotel
- Create a Unique Selling Point for the City and Venues
- Increase direct flights to Aberdeen
- Increased productivity of Ambassadors Programme
- Recruit Graduate Students
- Avoid seasonality trends
1. Improved city transport links
A new Park-and-Ride scheme has been approved by the city’s planning committee for the use of air passengers. (Press and Journal 2003, p.6) This is a weak attempt by the council to improve the traffic situation. There is need for a mono-rail link of a vastly improved airport and city bus service as in operation in Glasgow and Edinburgh.
The proposed plans in Aberdeen Futures Western Peripheral Route (WPR) were delayed until 2004 and allowing for the advance work of evaluation, proving the case, planning, land acquisition, tendering and construction this could take around 10 years. (Aberdeen City Council 2003). This includes the Scottish Executive’s cash pledge for the planned airport expansion. (Hepburn 2003, p.14).
Further announcement on 19 March 2003 by the Scottish Executive revealed a £97m commitment to the WPR, aimed to open in 2010 including a ‘crossrail service’ Inverurie-Aberdeen-Stonehaven. (Barnham 2003, p.1).
2. Establishment of a Five Star Flagship Hotel as a Unique Selling Point
Aberdeen has only one 5 Star hotel with 40 rooms, The Marcliffe at Pitfodels (Member of Small Luxury Hotels of the World) and one of the concerns of Jackie Selby as a guest speaker at Aberdeen Business School on 6th March 2003 was the concern in provision of rooms. Previous delegates attending offshore Europe have been accommodated as far away as Nairn.
“We would like to see a large five-star or good quality four-star hotel in the city centre. There is talk of a small five-star property opening on the outskirts of the city and another in the old town,” says Aberdeen & Grampian Bureau business tourism manager Jacky Selway. “There are 4,000 rooms in the city at present, with a number of budget hotels, including a recently opened Premier Lodge.” (Conference and Incentive Travel 2003.)
Conference and seminar delegate rates are below the national average include the Westhill Inn offering a daily delegate rate of £25 and a 24 hour rate of £90 inc VAT (Westhill Hotel 2003). Located at the airport the Speedbird Inn offers a day delegate rate for £17.50 and a 24 hour delegate rate of £83.45. (Portland Hotels 2003).
3. Create a Unique Selling Point for City and Venues
Through intense and improved communication with the local council pressure must lobby them to be entrepreneurial and create a unique point to attract all tourist visitors.
Shone (2001, p.17.) points out “The key element of all special events is their uniqueness – every one will be different.” Offshore Europe Partnership 2003 has been successful in this area with the creation of the Real Time Zone. Such is its success is that 75% of the exhibition space in Real Time Zone is already sold out. (Offshore Europe 2003).
Not only does Aberdeen require a’ unique’ characteristic for the city but to each event, even if it is held on a regular basis to effectively implement sales and marketing activities through the maximum use of IT facilities.
4. Increase direct flights to Aberdeen
It seems that travel to Aberdeen has always been restricted in choice of departure cities and highly priced seats. An increase in budget flights has been welcomed but the future demand for conference and events are more direct flights.
Currently direct flights into Aberdeen include Heathrow, Gatwick, Jersey, Amsterdam and Dublin. The Aberdeen and Grampian Convention Bureau can now vigorously target France as from 27 October 2002 Air France started 3 daily services from Aberdeen to Charles de Gaulle airport in Paris. (Travelmole, 2002).
Fig.6 Inward Flights to Aberdeen
(Source: Aberdeen and Grampian Convention Bureau)
New flights from Malaga and Barcelona will start in June, opening a new potential discretionary market.
5. Increased productivity of Ambassador Programme
The Local Conference Ambassador Programme already has over 50 members actively trying to influences their association to secure more business conferences in Aberdeen (Aberdeen and Grampian Exchange 2003).
Glasgow and Edinburgh have over 300 ambassadors and the marketing of Aberdeen’s programme must cover a wider area to include key hoteliers, restaurateurs and other influential people to back up the specialists in areas of energy, health oil and gas.
6. Recruitment of University Graduates
Defining career prospects in conference and event management Rogers (2001, p.170) states “Unlike many other professions, the conference industry does not yet have clear entry routes, or easily defined career paths”, emphasising one of the immature aspects on the industry.
The subject of Conference and Event Management is now being lectured in Robert Gordon’s University Business School of Hotel and Hospitality, which could provide suitable applicants for the present vacancy for an ‘Executive’ (Press and Journal, p.29) incorporating new ideas to complement the bureaus small experienced team. This will open opportunities at the bureau as a learning organisation to facilitate the rapid growth and change in the industry, as defined by Torrington (1995, p.307) a learning organisation will succeed by “keeping ahead of competitors and gaining competitive advantage”.
7. Avoid Seasonality Trends
Statistics reveal that popular times for conferences are for Non-residential conferences are likely to be held in March (11%), September (10%) and October (11%). Residential conferences are most likely to take place in September (11%) and October (11%). (British Conference Market Trends Survey 2002).
“It is often said that one of the advantages of business travel and tourism is that is less seasonal than leisure tourism”. (Swarbrooke and Horner 2001 p.28).
To maximise the full potential of the industry as 365/ 24 hour business, attempts have to be made to market Aberdeen as an all year round destination for conference events. This is an area that has to be investigated to attract international delegates from European countries when meetings take place at 5pm in the morning until 10pm at night.
“Organising a conference involves not only identifying in great detail the potential customers needs and requirement to insure their ultimate satisfaction but also planning, preparing and directing the conferences activity at the time” (Jones and Paul 1993, p.294).
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