THE RETURN OF THE EXHIBITION AND TRADE SHOW INDUSTRY

Hello, this is Les Goldberg, and welcome to The Road Ahead. The Road Ahead podcast is dedicated to the future of the live events business, bringing together industry experts. Hello everyone. Welcome to the Road Ahead. I have two amazing guests. I have Jeff Blosser, who's the president and CEO of the Washington State Convention Center. And I also have Mark Tester from the executive director from the Orange County Convention Center. Guys, welcome to the show. Thanks, Les. Thank you. Glad to be here today. We're going to be talking about the return of the exhibition and the convention trade show. And as to two leading convention center guys that run large executives from the convention center industry, I want to throw out some questions and get your thoughts on this. So I'm going to throw this right to mark my first question is what needs to happen for people to feel good about having live conventions with groups of people together? What do you think has to happen? Well, first, I think some people need to come out and have events and show that they can be done safely, that people can follow the protocols that that that all the protocols that are in place. And we've worked really hard the last several months on our three pronged strategy, which is our recovery and resiliency guideline. The Star accreditation, which we received last month. And then we now have a medical concierge program with Orlando Health. But but that being said, all the, you know, you can do all those things, but until people come and start having events and feeling comfortable that they can be done, I think that's the best start. And we had two events in late July. First, the national volleyball champion junior National Volleyball Championships, which had about 9600 athletes, coaches and and chaperons no spectators. Very successful event. They felt very comfortable. They had a lot of protocols, temperature taking. Everybody wore masks unless they were playing. They had people coming in one side of the building leaving on the other. So that really worked out well. And then last, last Friday and we could go to actually today from when we're taping is we had the Together Again Expo, which was an expo for people in our industry really focusing on new protocols. And it was just just a one day event, but everybody were mask. Everybody commented how safely it was done. All the stuff that we were doing was, was evident. And I think people that attended that event or people that were, were on the virtual platform felt very comfortable that, that that it was a safe event and that events could come back. So it's getting those things coming back and people one right after the other. Hopefully a number of events will get everyone to feel comfortable that we can we can do events, live safely. You know, I was at that event, we exhibited at that event, and it was so nice to be actually in a in the convention center with an exhibit booth. And I think there was such an aura of fresh air that people were like, we are so back to this is what we do, and we so miss it. So I'm going to throw this back now toward Jeff and say, Jeff. So Mark gave us some kind of protocols and certain things. And maybe people had to see people doing events, but maybe you could take me into the mindset of maybe the show organizer or the attendee, and maybe your thoughts are, what do you think we have to do to? Or what has to happen for for us to kind of get the live events scheduled and people feel comfortable to do those? I think it's probably a little bit twofold less. I agree with Mark. I think getting people back into the buildings and back into the to the the normalcy, if that's the right term these days of the convention business is really one of those things for for me and the attendee, I think the attendee has to feel safe all the way through the process, from the airport to the hotel to the convention center. And so it takes in our case, and I think most cities, it takes really everybody getting on the same page and being able to provide that activity. Because the convention center at the end of the day, is one of the elements, and everybody is still wanting to, you know, be safe at the hotel, still wanting to hopefully maybe go out and have something to eat and then come to the convention center. So we're in the process as well right now, trying to get certified here probably in the next month. And I think those protocols of how the building will be cleaned is going to be one of the critical components as well for an attendee, especially that says, hey, that place understands what is supposed to take place and I feel safe there. I think show management has a big role here, too. They need to be able to help the convention center and the attendees in terms of what they that they think their protocols are going to be, what is that they're going to require? Do you have to wear a mask? Do you have to take a temperature or, you know, are we going to restrict show timing in terms of staggering them and entrances and exits so that people have that feeling that when I come in here that everybody has thought about this, planned it well and executed it well, and I think those are the kinds of elements, you know, to Mark Mark's point is, and once you do that a couple of times and show management sees that and understands that, I think that's going to help in our case here. We also have to convince our health folks that getting back into business is going to be okay. The West Coast is a little different than the East Coast. We have obviously California struggling pretty hard. But, you know, our governor has been probably more conservative. We were the first hot spot in the whole country. And so that that laid the groundwork for that. But I really think the health folks need to feel comfortable with what we're we're trying to do us in California, the state of Washington, state of California. I'm not sure if Oregon's doing it, but we did. And we got a coalition of convention centers, large hotels, as well as Columbia Hospitality, which is a company that runs golf courses and and conference centers and hotels as well, and put together a coalition of safe meetings. And we put a whole laundry list of items together for the governor's office, the Secretary of Health, as well as the local county health folks to say, hey, this is how we're going to do this, and this is how we think we can do this. And so first we have to be able to get open. So there's there's that part and we're we're not there yet. And then too I think once we can establish and I think out of state folks and meeting planners, if they see that the health companies of the health organizations locally are comfortable with opening up buildings and that we show them that we can and how we're going to do it, and then we follow suit with in lockstep with the show manager going through the processes and the steps. I think that would be a huge issue of helping people feel comfortable. Vaccine wouldn't hurt. It'd be nice if we get that. I think the vaccine would be great. That'll be a big element for sure. Once that comes into play, where people are feeling comfortable, more comfortable that even if I get sick, I have a means to to get out of it. So but I think from, from our standpoint, those are the kind of elements we've been trying to deal with, to try to get ourselves back into play. You know, it's interesting you said something about a partnership with a health organization. I know, Mark, you guys have a partnership with the Orlando Health. And I think strategically that's got to be something the show organizer has to put some value in in the approach. So kudos to what, you know, accomplishing that. Could you touch Mark on just what the the cleaning that you were mentioning. It was a g g g g star. I can't remember the name what you were pronouncing it. Yeah, it's the global bio risk advisory councils G star accreditation. So gold star it's done through the Issa the world's cleaning organization with with protocols specifically written for convention centers. And it goes through cleaning, disinfection and disease control. Really all aspects of of of key keeping your clean your facility clean and safe not only from the cleaning what what chemicals they use, what what, what machinery to use, but how to handle inventory control, how to handle waste management, how to audit the program, how to have inspections so that you're ensuring that those things and I happen consistently and regularly throughout throughout the time. So health and safety is so important to the attendee. So take me into the future a little bit, Jeff, when when we're open and we're doing shows and we've gotten a green light and some attendees might not want to actually travel, still based on what part of the world they're living. A lot of international travelers. So do you think there's going to be a hybrid event where there's a virtual component to your live events? Do you think that's going to be a popular approach? I think probably in the short term, less it will be. I think that makes some sense. You know, not everybody gets to the comfort level all at the same time. And if you want to be able to access show education opportunities or show information or trying to get with your peers, and you are restricted to traveling because some organizations are restricting travel or you just don't feel comfortable. I think that hybrid option is one of the better ways to do that. I think we're going to see a face to face component and a hybrid component virtual component, making it a hybrid event. Those make a ton of sense to me as we go forward. As you know, less, we're putting together a studio here at the convention center and in Washington, and we think that's going to be one of the elements that's going to help us, probably in the short term, to be able to provide a another resource for show management, to be able to showcase their events and their education sessions to those that can't come and probably be an add to their whole, their whole show activity. So I really do think in the short term it will be I don't, you know, face to face meetings are not going to go away. We've had this conversation. I've been doing this for 40 plus years, and this conversation has been going on for 30 of those. And I just don't think that, you know, people have to get together. They want to get together. There is a special thing about networking and developing new relationships, and it's hard to do that if you're not face to face and talking to each other. So I still think that's going to happen, but it's going to be in a different format. I believe in the short term for sure, and maybe in the long term, but I think that's a viable option. And facilities and show management probably will be asking for that. So I kudos to the the idea of the hybrid event, the studio, the virtual. Those are all pieces that are in our future. So so Mark, what do you think the new normal will look like when we come back into a trade show? We'll we'll trade shows look different in the sense of where the booth layouts are or the spacing of where people are sitting. I mean, do you think that'll be like our look, a feel of a trade show will look the same or it will look different? Well, you know, I think for the for the near term, I think it'll look different because everybody will be wearing masks and should be wearing masks. And I think, as Jeff said, it really is up to show management to to make that a requirement. And, and certainly masks are, are something that is, is are going to be in for the for the near short term for sure. The other thing that we've done that really looks normal, it looks a little different is you normally have housekeeping behind the scenes. And so they're they're they're not visible. They're not prominent in public spaces. And we've really made them more visible. We're cleaning the doorknobs and other high tech areas, numbers and numbers of times a day. And it really is me. And I got that that, that comment from people Together Again Expo as they felt good seeing people in between sessions, wiping the chairs down, wiping the doorknobs, doing that. So our, our environmental services, we call them team is much more, much more visible. You know, together again also you know, did do physical distancing. Aisles were significantly wider. They did do one day one one way aisles. They, you know, staggering of attendees into the exhibit for something that I've heard bigger shows are looking at this gather again Expo had significantly large areas for for concession areas so that you can really spread out. We actually had way, well, more concessions stands that we needed. All of them equipped sneeze, sneeze guards. So that's something you'll you'll see differently. We did do the plenary session right in the room of physical distancing all all along. That's not a that's not a new new technique. But but keeping everyone in one area and having them ability to to to spread out something I think that is certainly, you know, is going to be around for, for some time. So so Jeff, with the new normal coming and when we're able to have all our convention centers open, do you think there'll be more pent up demand for meetings and events when things return? What do you think the demand picture looks like? We've been talking. We're in the middle of a expanding our facility and adding a second building. So we like that. Yeah, we do to it's a little difficult right now on the funding side, but we're working through that. But we think I think the destinations that have were popular and have provided a lot of activity are going to do that in the future. I think that's going to be one of those things that people are going to want to travel. We keep hearing, you know, with all the cancellations that happened this year, all of the shows are we want to come back. We want to come back in 21. We want to come back in 23. We want to come back in 24. So we're hearing that, the ease of the world and stars of the world, the hotel community is telling us that actually, actually occupancy is going to be at pre-COVID levels sometime the end of 23 or 24. So that starts to tell me that, you know, this this is a downtime for sure and a difficult period, but that it's not going to just keep us down. It's going to be a thing that people are going to want to come back and want to come back, probably more so than in the past, just because they've had this, you know, this, this divide or this time away from each other. And it really makes it more difficult, I think, for people to do their business. I know it's I'm sitting in my home office here and I haven't ever worked from home. So it's been difficult for people. And I want to be back in the building and see everybody and see the clients. And so I think that's going to be the similar to what folks are going to want to, to do. Once everything seems to be back to a place where travel is okay and I feel safe and and now I can take my family and go someplace for a vacation or, or those other kinds of activities. So I think, I think there will be a pretty good surge in that with the pent up demand. You know, it's interesting the I think big deals are not necessarily done on a zoom call. I think big deals are done in person. And I think on the networking on the show floor where you can see a product and you can you feel, taste, smell, whatever the senses are. You know, I'm throwing this question to Mark. Mark, what is the most important role a convention center plays in a community? Because obviously most of the major cities have them and they're a hub of business. But in your opinion, how could you describe what that role looks like? Well, first I just want to add one little comment to what Jeff was saying about me. And, you know, both both both Seattle and in Orlando have a significant amount of corporate business that we that we we greatly. And all of the events that we had this year that were corporate that canceled have rescheduled with us. And and I've said this to other people that if, if, if anybody didn't feel the value of of their face to face meetings and that would cancel them would be corporations, you know, they're looking to generally not, you know, looking to be be held as moneymakers for the organization. They're there to help them develop their communities and the relationships they have with their customers. And if they absolutely didn't believe that 100% that they weren't valuable to their customers or to their organizations, they would cancel them. And that hasn't been the case at all. We've had every single one reschedule with us. So there's certainly that. And so as it relates to the value of the community, you know, for us it's it's economic development that that really is our mission. That is what we're here to do. We're here to drive the tax base. We're here to bring people into the city. We're here to be a job provider. We're we're here to help support those industries like the medical field. When we have a medical meeting that gives all the orthopedic surgeons, when the orthopedic surgeons are here and all the other businesses to, to help prop themselves up, you know, all, all boats, all boats rise. And when you have a particular industry that meeting their meeting in your in your, in your destination, it helps that whole whole community, you know, obviously tourism and conventions, you know, are the biggest job provider here in Orlando. So IT tourism and conventions are absolutely necessary and, you know, required part of our community. And, and and so us and what we do and driving especially during slower periods to keep people working to keep the restaurants and the parks filled during traditionally slower times a year, just really makes the whole year that much, that much better. So for us, absolutely, its economic development. Jeff, do you want to comment on that, on the the role of the convention center? Yeah, I would agree with Mark for sure. It is definitely one of those demand generators for out of town guests coming to the city, which is really what you're trying to do in terms of having new money come in and be spent in your community that you don't have to have services for. So, you know, you don't need to build a schools or add to your police force or your fire department or anything else like that for convention business. They come in and pay their their fees and their their room rates and their taxes and they leave. So it's really one of those, those elements that is very beneficial to the community and the way for us to be able to draw folks to, to the, to the city, to be able to do what Mark said, which is, you know, provide retail and restaurant opportunities and those workforces in that opportunity and everything that's inside the hospitality community, like florists or decorators or AV companies, for example, or things like that. I think those make some sense in our case, to we provide the local community a meeting place for things like the Washington State Bar Association, where, you know, lawyers come in to get recertified, or just local meetings for any type of organization or consumer shows or whatever the case may be. We do 50 plus national conventions a year back in before COVID, and but we also do 300 local meetings a year at the convention center. So I think we have a foot in both of those camps and both of those markets. And I think we provide both of those opportunities for the whole community to be able to access something that may be coming from out of town, like Mark said, or being able to provide their own event location. You know what, guys? I am proud to have had multi-year relationships with both of your facilities and both towns. Well, I reside most of the time in Orlando. I love the Seattle. What a great city. And I'm fortunate to have, you know, business relationships with both of you guys and that that their premier facilities. I can't wait till the part two is done in Seattle. It's just a matter of time. It's kind of like when Orlando was part one and then they built part two. But I want to ask the last question. I'm gonna throw it to Mark and then and then to you, Jeff, what are you most looking forward to when crowds return to the buildings, whether it be the north south or the west concourse? Mark, what would you say is the thing you're looking forward to most, or just to fill a field building one right after the other? You know, I used to just love move ins. We see the trucks lining up, and now I kind of love the first day where everybody is flowing the event, and there's so much anticipation. And each each industry has their, you know, goals. And you see people that are looking to to sell their products. And and, you know, I've had the opportunity to talk to exhibitors. And I remember talking to one a few years ago, and he had his hands on his head. And I said, well, you know, I introduced myself and what's, what's the matter? And he said, I'm just trying to figure out how I'm going to fill this order that I just got, and I just don't know how I'm going to do it. And that's an awesome problem, is change my life. And we got it. We got this big order, and I don't know what I'm going to do now. I've got to fill it. And that's the type of thing. And the, the just the, you know, feeling of optimism that every show brings. And then you do them one right after the other. There's nothing more exciting. I'm throwing this question right to you, Jeff. What are you looking forward to when the crowds open up and I even throw it out? So when the new buildings done and the crowds are in there and you have both buildings going, I mean, what, what how would that feelings can you share? Sure. I think for me it's activity on the street is very cool. When we have a big convention, you see all the badges and everybody's moving around and enjoying the community. I really like that. I also really like kind of in marks cases where you see everybody having a great time at the convention. I'm networking, I'm learning things, and I'm having a really good time for the 3 or 4 days that I'm there, and the convention and the building provide that atmosphere and that that opportunity for them to be able to do that. And that's, you know, the noise in the building. I mean, that there's there's nothing like it, you know, when there's nothing in the building because the activity is different and the whole atmosphere is different. So I really like when you that happens in the building. And I really like enjoy the, the different activities. There's so many different associations, so many different things coming into your facility that you really gives you the opportunity to kind of see, you know, as they say, there's an association for everything, but you really get to see the opportunities that people are getting and and the look on their faces and their their joy to a certain extent, of being able to attend something like that. And that makes it all worthwhile, especially when we've been part of that. You know, you guys are both amazing and you have amazing convention centers. I'm proud to be a part of those. And I want to thank both of you for joining us today, and I look forward to the energy that's going to be created when we have the noise, as you said, Jeff, and the and the hustle and bustle and and goodness gracious, I can't wait till they place all the big AV orders and then there'll be happiness in the land. Guys, thank you again. And this is Les Goldberg with The Road Ahead. Take care guys. Thanks, Les. Thank you.