Leveraging our conference dollars: African Americas are the convention industry's biggest customers—to the tune of $5.6 billion. It's time we flexed our collective muscle and cashed in on some benefits - Consumer Empowerment - Statistical Data Included

Black Enterprise, August, 2002 by Jeffrey McKinney

BEFORE THE NATIONAL BAPTIST CONVENTION BOOKS A CITY TO HOLD ITS ANNUAL SESSION, THE 8.2 million member group uses its clout to rack up such perks as free meeting spaces, hotel rooms, and limousines, a savings of about $175,000 to $300,000 per event. The nation's largest black religious group also flexes its financial muscle to reap the best rates for delegates.

It's no wonder cities scurry to meet this group's demands--as the saying goes, there is power in numbers. Last September, the National Baptist Convention's 121st session attracted about 35,000 ministers, deacons, laymen, and women missionaries to the Minneapolis Convention Center. Its out-of-town delegates spent an estimated $45 million while visiting the Minneapolis/St. Paul area making it one of Minnesota's largest black events. The event made a strong impression, particularly since it occurred when the state's convention business is normally slow.

The National Baptist Convention's annual conference, however, is just one black event among many. African Americans are one of the most popular and one of the fastest growing segments of the nation's $545 billion travel industry, according to the Travel Industry Association of America (TIA), a Washington, D.C.-based travel and tourism group. TIA also reported that African American travel rose to 69.6 million personal trips in 1999, up 16 percent from 60.1 million in 1997, the biggest gain among any minority group and much higher than the one percent growth for all U.S travelers in 1999. The increased activity among African American travelers translates into billions of dollars for U.S. cities, especially among those hosting major conventions, conferences, and festivals.

But while African Americans are among the nation's biggest travelers and conference goers, experts say they typically fail to get the best deals from

local cities, convention and visitors bureaus, hotels, convention site operators, and travel businesses. In fact, some black groups are even tricked into overpaying because hotels and other service providers often tack on hefty service fees for the large number of "paying" guests the group is bringing in.

But smart event planners know better and this piece will tell you why you have clout, how you can use it, and what benefits you stand to gain. So whether you're planning a full-fledged black convention or your next family reunion, you'll know the financial juice your group brings to the hosting city and be able to claim your fair share of benefits.

WHY YOU HAVE CLOUT

In 2000 there were an estimated 1,600 black conventions and conferences with an economic impact of $5.6 billion in the U.S., up from 1,500 such events in 1999 where $4.9 billion was spent, according to Black Meetings and Tourism magazine, which tracks the black travel industry. And those numbers are conservative because they only include what was spent on things like hotels, food, and shopping, not other expenses like airline travel. Those numbers also don't include the additional dollars spent at events and retreats where overnight stays are not required. The millions of dollars African Americans spend on shopping, dining, and partying are also not recorded. Plus, vendors have been more open to negotiate since Sept. 11.

African American conventions can range in size from 25-30 attendees to 25,000-35,000 participants or more. The average attendance at black conventions is about 300. The average delegate, including those at black conventions, spent about $814 per event in 2000, up from $785 in 1999, according to the International Association of Convention & Visitor Bureaus, a Washington, D.C.-based trade group. In addition, the $80-billion-a-year hospitality industry gets a hefty $6 billion to $8 billion from African American conventions, one of its fastest growing segments.

"The minority market is a large and fast-growing market," says Cathy Keefe, spokeswoman at the TIA. According to the TIA survey, minority travelers accounted for 20%--or $90 billion worth--of total domestic travel in 1999, paying for such things as shopping and travel to destinations. And of all minority groups, African Americans were more likely than any other group to travel on group tours to attend business or group conventions, cultural events, and festivals. "That's why many major cities, like St. Louis and Washington, D.C., are taking great pains to target the market and promote what they have to offer," adds Keefe.

WHAT YOU STAND TO GAIN

As evidence mounts to prove the importance of the black consumer in the travel industry, it's more imperative than ever that black groups stake a claim on their share of the benefits, according to the National Coalition of Black Meeting Planners. But the organizers of these various conventions often consist of board members, executives, or staff who don't have the know-how or experience to negotiate for the best deals.

For instance, when it comes to boob ing hotels for conventions, many black groups are unaware that everything from hotel rates--including commissionable room rates that provides rebates--as well as surcharges for long-distance phone calls and meeting space fees are negotiable, experts say. That means black groups end up shelling out millions of dollars in convention expenses that could be saved or used to train staff to bargain for the best deals.