ICCA Iberian Chapter and MPI Spain got together to debate this phenomenon at EIBTM 2013.
Low-cost events are a phenomenon that appears to have come to stay in the MICE market, for quite a while at least. But what is not so clear is what a low-cost event really is. A seminar organized by the ICCA Iberian Chapter and MPI Spain at the EIBTM show in Barcelona two weeks ago set out to do just that. During the meeting, members of both chapters discussed the emergence of a new event format, involving cutting costs to the bone, which is now seen as a way to optimize the profitability of events that are suffering from the effects of budget reductions.
"Are we low cost?" This play on words was used to kick off the Spanish seminar, a round table discussion organized by the Iberian chapters of the international associations ICCA and MPI, to try and define the low-cost concept applied to event organization and other forms of price-cutting and unfair competitive strategies that are currently affecting the market in general.
Mistaken perception
Taking part in the round table were Marta Ventura, director of the agency MdV, Montse Escobar, director of the Reputation Division for the Grey Group in Spain, Laura Valdeolivas, commercial director at Port Aventura Business & Events, Ramzi Shuaibi, director of Leading Sense; and Eric Mottard, director of Evento Plus. "We have a mistaken perception of low cost," said Shuaibi, who signalled out Ryanair as being the worst example of a low-cost supplier that has contributed to associating the concept with low quality. "Low cost tries to optimize, reducing costs and eliminating frills in order to offer highly competitive prices. But this does not automatically signify that quality has to be sacrificed."
Tailored to measure
The professional panel unanimously acknowledged that they had had to adapt to the new recessionary conditions in the market and the budgetary pressures on their clients. "We are tailoring our services," explained Valdeolivas. "But what we cannot do is offer the same as we did before at a lower price." As an expert in brand management, Escobar commented that companies, to safeguard their image, don’t want to be seen by their clients to be cutting costs and therefore trying to pass most of the effects of the reductions on to their suppliers: "All brands are negotiating. I defend low cost as long as those who offer it are companies who know what they are doing; one has to find – or not – a right niche for low cost."
Added value
Venues, such as the Autonomous University of Barcelona, whose representative Assumpta Cros was among the audience at the session, set out to stimulate austerity and the value of the meeting itself by working with scientific societies that, even if they cut back on superfluous expenditure (coffee breaks, gala dinners, etc.), don’t scrimp on products and services that bring added value to their events. "This trend is here to stay," highlighted Cros, an assertion that was seconded by Ventura, who also has scientific societies among her clients: "Each meeting is a world of its own. For us, bringing down prices means enabling everybody to budget events according to their means. We have to keep adjusting to be able to keep moving forward and to generate business for all."
The animated networking party held the same night with clients and members of ICCA and MPI in the Suite Aribaul provided everyone with the opportunity to prolong the discussion on this and other burning issues affecting the industry. Sponsored by Port Aventura Business & Events, the party concluded with a much-acclaimed musical performance by Shuaibi and his group (on this occasion appearing under the name of Ramzi & The ICCA Band).
Marta Ventura (director of the agency MdV); Montse Escobar (director of the Reputation Division for the Grey group in Spain); Laura Valdeolivas (commercial director at Port Aventura Business & Events); Ramzi Shuaibi (director of Leading Sense); and Eric Mottard (director of Evento Plus)
