white paper on housing bureau services for associations ......up by qualified bookkeeping staff to...

WHITE PAPER: HOUSING BUREAU SERVICES FOR ASSOCIATIONS HOSTING CONFERENCES IN SOUTH AFRICA

October 2016 | African Agenda

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Housing Bureau Services for Associations Hosting Conferences in South Africa

White Paper October 2016



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Introduction In this white paper we will address the complexities involved in running a housing bureau service for a large international or local conference, one with 2,500 or more delegates.

As South African cities have built and developed world-class convention centres, the wide variety of

companies required to deliver the requisite goods and services to ensure that international and local

associations can deliver world-class conferences has grown apace.

Major conferences have been held in South Africa since at least 2000, when Durban first hosted the

International AIDS Conference with more than 18,000 delegates. Soon after, in 2002, Johannesburg hosted

the World Summit on Sustainable Development, attended by 56,000 delegates. In 2006 Cape Town hosted

the 19th World Diabetes Congress, attended by 12,300 delegates, and in 2016 Durban again hosted the

International AIDS Conference, this time for 15,000 delegates.

For each of these mega conferences hosted in South Africa, the host association was responsible for

planning, marketing, fundraising, registration, programme and event management, but each host association

chose to use a local housing bureau to handle accommodation and other related ground arrangements.

A housing bureau is a dedicated service provider that manages the accommodation needs of a large

conference. The services of a housing bureau are solicited by a conference host or a Professional

Conference Organiser to secure hotel rooms, negotiate rates and take bookings from delegates.

Many companies claim to offer a housing bureau facility but few are truly equipped to handle all aspects of

this complex service. Handling thousands of individual bookings, meeting the needs of VIPs and group

bookings, collecting deposits, following up on final payments, and handling cancellations and special

requirements is not for the faint of heart. And of course there is the important interaction with the hotels:

obtaining room blocks, negotiating terms, managing inventory, and contracting and taking the risk as the

responsible party.

A truly professional housing bureau needs the most robust and up to date systems, used by a customer

service-focussed team who administer bookings and attend to calls and enquiries. All of this must be backed

up by qualified bookkeeping staff to manage the finances.

One thing that is absolutely crucial is the software you have for accommodation services. We use EventsAIR, which has quite a good accommodation module. Probably the most important thing, and key, is a group accommodation portal that allows group leaders to easily upload, change and amend data for their room blocks and this being directly reflected in our system.

Andre Vietor, Barceló Congresos, Spain



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Why offer a housing bureau to delegates? There are a number of disintermediary channels such as Booking.com, Trivago, Expedia and Airbnb; these are a

reality and the days of the central housing bureau being the only solution for conference accommodation are

gone. However, official hotels are specifically chosen because they are well located, offer the desired amenities,

and are likely to ensure delegate satisfaction. They also serve as gathering and meeting places for delegates and

can be a continuation of the conference networking benefits. Finally, official hotels are the only accommodation

options that are contractually required to guarantee the preferential rates for the duration of the conference

dates.

The value of the conference’s endorsement of the hotel, guaranteed preferential rates, the opportunity to

interact with other conference delegates, being located on the conference transport route, and being able to

work through a reputable and professional channel should not be underestimated. These benefits provide the

rationale for using a housing bureau and offering official conference hotels.

Marketing to delegates the importance or desirability of staying in an official hotel is important element in the

success of the offering.

What are the benefits?

A well-subscribed housing bureau translates into

straightforward management of the bulk of

delegates: knowing where delegates are staying

enables ease of communication and ease of

transport; it allows for planning around the timing

of conference events, and allows peace of mind for

the conference delegates who have access to safe,

good quality accommodation through a reputable

and accountable channel.

Volume and terms dependent, there is a potential

financial benefit to the host association as well.

Hotel partners are motivated to provide booking

incentives, including complimentary rooms for staff

and other hotel concessions (e.g. meals, meeting

space, etc.) that conference organisers would

otherwise pay for. They may also provide a rebate

for each room booked, making it possible for the

host association to receive an income on hotel

bookings while still providing the lowest possible

guaranteed rate to delegates.

What are the risks?

The risks are minimal, assuming that a reputable

housing bureau service provider is selected. While the

host association will have the opportunity to approve

the hotel range selected, the service provider

negotiates the contracts and assumes the risk. There

should be no financial burden or risk to the host

association.

Should the service provider fail in any way (in service

delivery or as a result of financial default with the

hotels), the reputational risk to the host association is

significant as the provider is seen as an extension of

the host.

The risk of poaching/piracy has been increasing. This

is the establishment of a competitive, non-official

housing bureau; sometimes simply a competitive

offering, but often more a sinister, illicit front whereby

bookings are offered, but once made, no service is

provided. Communication and awareness-raising is

ultimately the only response to these fraudulent

offerings.



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What does it cost and who to choose? We have described some of the intricacies involved in handling the accommodation for a large conference in

order to highlight how important it is to select a service provider that truly understands and can deliver a world-

class service. Problems related to accommodation bookings can jeopardise an otherwise well-planned and well-

run conference.

The housing bureau service provider will frequently receive a commission from the contracted hotels and this

should cover the fees they would require in order to offer the comprehensive and streamlined service. This

should never be at the expense of the conference delegate who should at all times have access to the best

possible rates and service.

When selecting a housing bureau service provider, ensure that they possess the capacity, systems and

experience to provide a full service, as well as the financial wherewithal to carry the risk and contractual

obligations with the hotels. Local expertise is important and relationships with local hotel groups can be the

difference between a 90-day release and a 60-day release, making a huge difference for delegates and their

booking flexibility.

As with any appointment of this kind, track record and references are crucial; so too are systems and proven

relationships with hotels.

For accommodation you need very specialised skills in purchasing and a good software to manage the contracts with the different conditions for the blocks. Accommodation service is difficult and geographically limited to places were you have very good relationships.

Alain Pittet, Congrex, Switzerland



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Some industry terms defined Professional Conference Organiser (PCO): A company or an individual professionally engaged in

organising meetings.1

International Association of Professional Congress Organisers ( IAPCO) PCO: An IAPCO PCO is a

Professional Conference Organiser or Meeting Planner who administers and brings to fruition the organisation

of a congress, meeting, event or convention in a professional manner. Such a professional manner will include

timelines, efficiency, financial responsibility and good management.

An IAPCO PCO has achieved a professional standard as judged by their peers and their clients. Each member

has to undergo rigorous entry criteria and to maintain their membership by participating in an annual quality

assessment.2

Destination Management Company (DMC): A DMC is a professional services company possessing

extensive local knowledge, experts and resources specialising in the design and implementation of events,

activities, tours, transportation and programme logistics.3

While many leading Professional Conference Organisers will offer extensive DMC services, some DMCs are more

like travel agencies, focused on corporate business, sports or incentive groups of smaller sizes, who do not

handle contracting with individuals but rather work on a group basis.

Housing Bureau: A housing bureau is a dedicated service provider that manages the accommodation needs

of a large conference. The services of a housing bureau are solicited by a conference host or a Professional

Conference Organiser to secure rooms, negotiate rates and take bookings from delegates.

1: IAPCO Online Dictionary, http://www.iapco.org/publications/on-line-dictionary/, 19 Oct 20162IAPCO, http://www.iapco.org/all-about-iapco/what-we-do/what-is-an-iapco-pco/, 21 Oct 20163Wikipedia, https://en.wikipedia.org/wiki/Destination_management, 21 Oct 2016



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Some useful local South African information in relation to the accommodation industry In South Africa, the bulk of the hotels located near the convention centres in the major cities (Cape Town,

Durban and Johannesburg) typically belong to major international chains such as Hilton or Marriot or the major

South African national chains such as Tsogo Sun, Sun International and City Lodge. In addition to this are a

number of excellent, smaller, local chains and independent hotel.

These different chains/companies have different terms and conditions, translating into difficulties in establishing

standard booking terms and conditions. Some generalities, however, are as follows:

> Single and double rates. Most hotels offer

single or double rates rather than a room rate.

> Bed and breakfast. Most hotels include

breakfast with the single/double rate

differential reflecting the cost of an additional

breakfast.

> VAT. Value Added Tax at 14% (currently) is

included in the stated hotel pricing. The VAT is

payable by everybody and is not reclaimable

by international delegates upon departure, as

it is for goods purchased.

> Local tourism levy. This is currently 1% and

needs to be clearly indicated as included or

excluded in any quoted rate so as to avoid

surprises at check-out time.

> Yield management. Most hotels now work on

yield management systems, seeking to maximise

revenue on any particular night. Peak South

African tourist times include December and

January, around Easter, and school holidays and

at these times demand pushes up prices, as

does the demand around major events.

> Deposits. Most hotels will demand a full pre-

payment or the lodgement of a credit card with

a minimum of one night’s stay at least six

months out, and the balance payable 90 or 60

days prior to the conference. With mega

conferences the demands are normally

stricter. Hotels normally implement a full

cancellation on any no-shows in order to avoid

the loss of revenue.

> Internet faci l i t ies. Most hotels have Internet

facilities in the room and common areas. Some

hotels provide a limited service free of charge,

while others have various offering. This needs

to be explicitly detailed.

> Location of hotels. In most instances (not all,

and local knowledge is important here) it is

possible to offer good quality, safe hotels within

walking distance of the convention centre, with

provision of some transport depending on the

conference budget and the profile of the

delegates. This avoids expensive transport costs

and the inconvenience of travelling during peak

traffic times



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About African Agenda

African Agenda are masters of conferencing. We offer expert insight and skills in substantiating and documenting your objectives, then designing and executing your conference with a high degree of proficiency.

Whether you are hosting a national or international conference for 100 or 10,000 delegates, African Agenda understands how important delivering a truly innovative and memorable conference is for you and your organisation.

With our group of expert and creative professionals, we will work with you every step of the way, acting as your dedicated partner to bring together your tailored conference.

www.africanagenda.com @AfricanAgenda AfricanAgenda

+27 (0)21 683 2934 120 Belvedere Road Suite 231, Private Bag X18 +27 (0)21 683 0816 Claremont 7708 Rondebosch 7701 [email protected] Cape Town, South Africa Cape Town, South Africa

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