 |
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
Hot News
| Exhibition Triumvirate Assails Exclusive In-House Service Contracting |
| Meeting Industry News |
According to Steven Hacker, President, IAEE, the new statement revises an existing policy the organization has had since the mid-90s. “We have seen some disturbing incidents happen in the last two years,” said Hacker. “This new statement has stronger language, and focuses on the venues, where the previous statement also included show It is too strong to say the new statement puts venues on notice, however in no uncertain terms, the revised policy clearly specifies that only permitting in-house services undermines the entire industry. IAEE’s statement says in part, “IAEE urges facility management to promote and maintain competition in the marketplace by restricting the adoption of exclusive in-house services to only those functions that bear directly on
the health, welfare and safety of the facility’s occupants.”
The sluggish economy seems to be fueling an emerging trend: many venues, Convention & Visitors Bureaus and other meeting entities are seeking additional revenue streams by expanding their in-houses, including cleaning and maintenance, internet service providers and audio/visual suppliers.
The statement is not opposed to venues offering in-house services, just exclusive contract arrangements that do not permit organizers to consider service contractors unaffiliated with the facility. “It is important for organizers and exhibitors to have the Right to choose the vendors of their choice, and appreciate the options the facilities offer at the same time," said Lew Shomer, Executive Director, SISO.
Members of SISO are responsible for producing 1,700+ events globally including
 trade and consumer shows, industry and targeted conferences, and other face-to-face events. "SISO strongly opposes any policy which allows facilities to
require show organizers to use only in-house, appointed vendors for services
that are available in the general marketplace,” added Shomer.
The potential for forcing planners to select only in-house services seems to have increased as some municipalities, faced with budget shortfalls, seek to create additional revenue streams from a meeting venue. “While IAEE recognizes that many of its member facilities are facing difficult economic circumstances, especially those that are funded by city and state entities, the fact remains that customers, both show organizers and exhibitors, prefer the option of choice when it comes to making service provider decisions,” said Hacker.
The President of the IAEE, whose membership of show organizers, exhibitors and exhibition suppliers are responsible for 20,000+ exhibitions, tradeshows and other buyer-seller events worldwide, points out that by reducing a meeting planner’s choice not only can prohibit the ability to find the best market price for a service, but places the planner in an no-win situation regarding existing arrangements.
“The Many organizers and exhibitors have long-term contracts with service providers such as maintenance and cleaning, telecommunications, audio visual and many others types of event service,” said Hacker. “Arbitrary, exclusive in-house mandates intrude into these contractual relationships.”
The organization most threatened by a potential proliferation of exclusive contracting services is the ESCA, whose membership is mostly made up independent service contractors and related companies. The organization’s mission statement states that it is “dedicated to the advancement of the exhibition, meeting, and special events industries.
“Exhibitors and Services Contractors will be directly impacted by the selection of services or vendors at exhibitions and events, so it is essential that the organizer have the freedom to select the best partner for any particular show,” said Larry Arnaudet, Director, ESCA. “With IAEE and SISO, we agree that in-house exclusive arrangements are detrimental to the overall process.”
To read the full statement, click here.
|
 |
|
 |
|
|
|
 |
|
 |
|
 |
|
 |
|