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San Francisco Customer Advisory Council – September 8 - 9, 2010
Council Members (in attendance)
Marty Balogh American Bar
Association
Randy Cross SPIE
Kathy Doyle Cisco Systems, Inc.
Mark Erwin Intel Corporation
Cele Fogarty SmithBucklin
Nicole Garbolino United Business Media
Gia Garunchio Semiconductor
Equipment and
Materials
International
Sandra Toms LaPedis RSA Security
Bill Lynch National Association
for the Specialty Food
Trade
Steve Pitt National Automobile
Dealers Association
Robin Preston National School Boards
Association
Karen Reul Salesforce.com, Inc.
Germaine Schaefer American Diabetes
Association
Beth Strelitz Endocrine Society
Brenda Weaver American Geophysical
Union
Johnnie White Cardiovascular
Research Foundation
Council Members (unable to attend)
Elaine Howard Mortgage Bankers
Association
Rob Mesirow CTIA – The Wireless
Association
Jodi Morrison Oracle
Felix Niespodziewanski American College of
Surgeons
Victor Robinson American College of
OB/GYN
Janet Skorepa American Urological
Association
Chris Wehking American Society of
Anesthesiologists
Local Partners
Joe D’Alessandro San Francisco CVB
Leonard Hoops San Francisco CVB
Walden Agustin San Francisco CVB
Scott Baublitz Hilton San Francisco
Joe Curran Hotel Nikko
Michael Dunne Hilton San Francisco
Murat Eskicioglu Moscone Center
Mary Gallagher San Francisco CVB
Ernie Garcia San Francisco CVB
Lanie Griffin Starwood Hotels
Kathryn Horton San Francisco CVB
Tamra Howes San Francisco Marriott
Jon Kimball The Westin St. Francis
Toni Knorr St. Regis Hotel & SFCVB
Board Chair
Peter Koehler InterContinental Hotel
Melody Lendaro Moscone Center
Lysa Lewin San Francisco CVB
Deidre Lewis San Francisco CVB
Brenda Ly Kimpton Hotels
Kenley Moy San Francisco CVB
David Nadelman Grand Hyatt
John Noguchi City & County of San
Francisco
Leonie Patrick San Francisco CVB
Anna Marie Presutti Hotel Nikko
Wendy Ramirez San Francisco CVB
Bob Sauter Moscone Center
Dick Shaff Moscone Center
Matt Stiker San Francisco CVB
Roxy Stone Grand Hyatt
Joan Varadi Moscone Center
Meeting Facilitator
David Kliman The Kliman Group
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 2
SAN FRANCISCO CUSTOMER ADVISORY COUNCIL
MEETING MINUTES
September 8 - 9, 2010
Confidential
Wednesday, September 8, 2010
The Council was welcomed; goals and objectives for the meeting were
outlined. New and returning Council members and San Francisco hosts
were introduced.
Jon Kimball, General Manager of the Westin St. Francis (host hotel)
discussed the 100+ year history of the St. Francis and its importance in the
civic life of the City; the hotel recently underwent a $40 million renovation,
― so new you can smell it‖!
Joe D’Alessandro and Toni Knorr discussed the importance of the
Council’s recommendations and feedback which is used to create
improved products and services and make San Francisco an even better
meetings destination. The CVB is celebrating its 101 anniversary in
November 2011; it was founded in the St. Francis Hotel.
Leonard Hoops outlined San Francisco destination highlights:
Moscone expansion
o Analyzing 2 scenarios based on buyers’ feedback which
emphatically stated desire to stay near Moscone; don’t build a
remote Center
Scenario One: Moscone East: located at 3rd St. and Folsom between
Hawthorn and Howard Streets just east of Moscone South
o Underground connector to the South with a total of 364,000
square feet of new space
Scenario Two (could be built concurrently with Scenario 1): Re-
configure Moscone North and South in the area west of the Concourse
which hasn’t been excavated; approximately 20,000 square feet
o Gateway Ballroom reconfigured as flex space to create 500,000
square feet of continuous space
o No property related issues as all real estate is controlled by the
city
o Overall focus on not displacing existing business
o 2018 is targeted for completion
o Scenario Two is the most likely
Bay Bridge Construction; completion in 2013; $5.5 Billion project will
create a seismic ready bridge with a 150 year lifespan
http://baybridgeinfo.org/
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 3
SFO terminal 2 opens Spring 2011 as home to American and Virgin
America with 13 gates http://tinyurl.com/ydbksad
TransBay Terminal will open 2017; $4.2 Billion project; Phase 2 includes
high speed rail link to Los Angeles http://transbaycenter.org/
New cruise terminal opens in 2014 with 500,000 square feet of event
space; working on booking policy to make it usable for large scale
events with long planning timelines http://tiny.cc/u9aja
Central Subway opens 2018 linking ATT Park to Moscone Center, Union
Square and Chinatown http://tiny.cc/6mwa3
Exploratorium opens in 2013 at Piers 15 & 17 http://tiny.cc/frqno
Museum of Modern Art (MOMA) expansion to house Donald Fischer
(Gap founder) donated art collection; will triple gallery and public
space; located in the Firehouse on Howard Street near Moscone
www.sfmoma.org
34th America’s Cup; San Francisco is possible site for the next race;
largest economic impact after World Cup and Olympic Games;
decision expected next week; massive upgrades to numerous
waterfront areas including an amphitheater at Piers 30 and 32 if San
Francisco is chosen http://www.americascup.com/
Customer Report – Randy Cross – SPIE – www.spie.org
SPIE Photonics West, January 23-28, 2010
Meeting Overview:
18,000+ people gather annually from around the world to explore the
latest advancements in light-driven research and technologies. Operates
as 4 concurrent meetings:
BiOS—Biomedical Optics is the world's largest international
biomedical optics and biophotonics conference
LASE—Lasers and Applications covers the science and the sources
of all types of lasers and their applications
OPTO—Optoelectronic Materials, Devices, and Applications;
addresses the latest advancements in integrated optoelectronic
devices, semiconductor lasers, and LEDs
MOEMS-MEMS—Micro and Nanofabrication enables mass-
produced miniaturized products and systems of the future
Goals and objectives:
Move meeting from San Jose to San Francisco at the time of
economic downturn and maintain attendance levels by registration
category. Deemed successful by SPIE
Learn attendee hotel usage in first year to fine tune hotel
contracting for 2011
Demonstrate to attendees that San Francisco is a dynamic and
appealing venue for this meeting. Great feedback from attendees
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 4
Bring exhibition all under one roof - had used tents in San Jose for
400 of the exhibitors
Maintain or increase number of exhibitors and produce an
acceptable audience (quality and quantity) to demonstrate that
the exhibition is at least as strong as it was in San Jose. Exhibitors
really appreciated the improved facilities
Learn what venues work best for which meeting elements – fine
tune for 2011
Number of attendees:
18,000 registrants - 1,000+ exhibiting companies
Attendee demographics:
Multidisciplinary scientists and engineers primarily representing
applied science, but with a smaller component of academicians
Attendance is about 75% male/ 25% female, that demographic is
starting to change as more women enter engineering
Number of Hotel rooms used and hotel package:
Peak night 2,641
ROB 1,124
Total 3,765
Singles 87%
Doubles 13%
15 hotels contracted (32 hotels in 2011)
History:
Prior 18 years in San Jose
Future:
Booked annually in San Francisco now through 2014 and Letter of
Intent 2015-2019
Venue usage:
Moscone North & South plus Hilton and Westin; also planning to use
Marriott and Intercontinental in 2011
Offsite venues:
Jillian’s and Hilton; Exhibitor reception at Jillian’s; maxed out, but
exhibitors liked it
Member reception at Cityscape Hilton was a great venue
Airlift & transportation issues:
No Airlift issues; need increased attendance from South Bay in 2011
Safety and Security issues:
One death (heart attack); well managed by EMTs
Attendees annoyed (commented on) street panhandlers
EMT service in Moscone was good
Security good at Moscone
Maloney Security was good
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 5
Labor and Union Issues:
Persistent interruptive and annoying calls and emails from Unite Here
Local 2 (Julia Wong)
Learning the ―ropes‖ during first time in San Francisco and the Unions
(especially hotels); but all worked out well after our staff established
rapport and working relationship
Took time to develop teamwork with unions by vendors to find
workable solutions
Any other issues of importance:
Housing was a concern; rooms were being sold at lower rates by
wholesalers despite no lower rate contract clause, forced to contact
some hotels weekly to force them to take lower rates off the web
CVB understood problem, but was not able to find solution. Housing
company spent a lot of time wrestling with this issue.
Room pirates; big problem during September 2009
Highlights
Robynne Weaver CSM at Bureau was great!
Wonderful to get our exhibition all back under one roof
Hilton staff were terrific – Sales (Scott & Alexis), CSM (Erin),
Catering/Banquets (Eddie Imperial was incredible), Front Desk,
Concierge, Housekeepers said hello to guests in hallways, all very
helpful/friendly. GM (Michael Dunn) present in the lobby each
evening to greet and engage attendees
Dick Schaff was highly visible, accessible, great interacting with him
Westin was very responsive and helpful during events at the hotel
Great ―temp‖ staffing in San Francisco. Used Trade Show Temps, VNH
Staffing and Premier Staffing
Areas for improvement
High Catering Costs:
Catering prices were a huge jump compared to San Jose even though
cost of living and consumer price indices comparing San Jose and San
Francisco didn’t support the increase
While the indices show 17% differential; we experienced catering price
increases up to 65%
Even after ―significant‖ catering price negotiations, ended up with
average 35% catering price increase over San Jose. Negotiations
resulted in decrease in quality of catering to lower costs
Competed with other events with higher F&B spend for catering
services and staffing
Difficult to negotiate opening concessions where and when needed to
drive traffic to the appropriate locations. One concession location
was in disrepair and could not be opened
Limited variety of food; poor hot food choices at concessions noted on
exhibitor survey responses
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 6
Communications:
Communications among CSMs and Catering Managers and their staff
should have been better and more proactive
Service staff on several events did not have the most recent
information that had been transmitted to them days or weeks
previously
Expectation is that Moscone CSM (or designee) works same hours as
SPIE staff (agreed upon start/end time per day); this did not happen
Seating/sets for areas:
Need more seating in Exhibition halls for catering
Need enhanced communication prior to event regarding options
Consistency regarding space allowed for sets in common areas; we
saw areas set for other groups during our sites that were not allowed for
SPIE; disregarding fire marshal regulations
Need more general seating throughout Moscone
Other:
Keep restrooms clean on setup days
Garbage cans around Moscone were often overflowing, need more
frequent service
Need for recycling staff to be present for weekend exhibition move out
Utilize more mixed paper recycling bins throughout the exhibition floor
Need better maps/listing of nearby restaurants for lunch time when
attendees are on their own
Noise bleed between rooms on the Mezzanine
Improved HVAC control in Mezzanine rooms
Paging system in Exhibition Halls (especially South Hall) is unintelligible
Upgrade the swing spaces in South Hall, it’s unusable as meeting
space
Comments from the Council
How is the city involved and how are prices set?
25% commission on F&B is paid to the City
Murat is working to lower prices, however the City has right to
review and approve pricing and city government is looking for
more revenue
Customer Report - Marty Balogh - American Bar Association -
www.abanet.org
Background and Key Issues
ABA first met in San Francisco in 1912; in 1950 started meeting here
regularly; in the 1970s met here every 5 years and in 1990 began every
3 year rotation; other cities including Chicago, New York and
―wildcards‖ Toronto and Boston
Strong meeting focus (not exhibitor); 1,400 meetings over 6 days
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 7
Meeting is designed as 27 specialty groups which meet concurrently;
looks and feels like a self contained meeting
Moscone West used as HQ for educational meetings and staff
2010 attendance was down 7% vs. 2009 in Chicago; due to less walk in
attendance
8,000 people booked 14,300 room nights in 16 hotels, plus 1,100 room
nights booked outside the block (despite excellent rates at all
contracted hotels)
No rate issues with the hotels, (vs. 2009 Chicago experience which
resulted in more rooms booked outside the block)
―It’s like doing business with friends in San Francisco; ―more a
hometown feel (than Chicago); we have a ―great bond‖; ―feel so well
looked after; our interests are protected‖ it’s a ―great feeling doing
business here; working with Walden Agustin in Chicago office is great!‖
―Great meeting with very few complaints‖
Taxis are always hard to find around Moscone from 5:00pm to 6:00pm;
drivers frequently rude about taking short trips
Labor jurisdiction issues at Moscone are counter productive and
annoying
Labor costs are 25% higher than in Chicago (comparison is against
Hyatt Regency Chicago, not McCormick Place)
Pipe and drape hung by AV Union, not Drayage companies; cost is too
high; electrical union costs are expensive, but they do excellent work
CVB did an excellent job in mitigating Unite Here and other Union
issues
Because ABA meets in other expensive destinations; they feel Moscone
food prices are fair when compared to Chicago and New York
Received no hotel complaints; overall great feedback
President’s Reception at City Hall catered by Dan McCall was ―so
great I would like to use them in other cities‖ www.mccallssf.com
Herbst Theater event was also excellent; ―a great experience‖
DMC services from Cappa & Graham was great www.cappa-
graham.com
Changing demographics and dynamics of the meeting: less critical for
lawyers to attend ABA meetings and reduced desire to bring their
families
San Francisco feels like ―a whole new city‖ offering lots of dining and
entertainment options; managed 150 dinners with 20 to 50 attendees;
the City offers new venues and great relationships; this is a ―very
special‖ and unique asset
Challenges for 2013 meeting
Homelessness and street cleanliness
Taxis (acknowledges it is very hard to create an effective system in a
city whose residents don’t rely on taxis like New York and Chicago)
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 8
General Comments
Sandra LaPedis Toms at RSA also experienced Union jurisdiction
issues; forced into situations in which they had to change the name
of certain equipment: digital signs became information boards in
order to continue set up work. All works stops when these issues arise
until resolution
Consensus that this is an ongoing issue
Dick Shaff stated that there is no vehicle within the labor movement
to resolve jurisdiction issues; Unions need to agree on who does
what and where
Establish protocol in which meetings are scheduled in advance to
address issues with Union; make part of the site inspection process
and follow through right up to the Pre-Con meeting
All Union costs need to be clearly stated in manuals and show
planner guide
Kathy Doyle (Cisco) unexpectedly had audio capture labor costs
billed to her master account; ―took a lot of time to mitigate it‖
Outdated union regulations resulting in everyone claiming
jurisdiction, particularly with regard to more hi tech equipment
being used at shows; this ―has to be addressed transparently‖
Steve Pitt (NADA) experiencing a total of $276,000 in increased
costs vs. Orlando for General Session ($70K); workshops ($36K);
security ($176K)
Concern that San Francisco will soon become overpriced and too
expensive for many shows
Lack of marshalling yards make its difficult to stage large numbers of
shuttle buses; need to invest in infrastructure
Open Topics and Key Trends
Virtual and hybrid meetings; increased use of technology for events
requires significant improvements to the networks found at
Moscone; groups have to bring teams to build separate networks
and wireless access; few Centers are providing adequate access or
networks; the same goes for hotels. ExCel London www.excel-
london.co.uk was cited as a best practice especially on the show
floor
Create a sub-committee to work with Moscone and their tech
consultants in the next few weeks to address this issue. Members
are Karen Ruel, Kathy Doyle, Sandra LaPedis Toms and Johnnie
White; hotel members are Roxy Stone and Scott Baublitz
Game Developers conference is seeing exhibitor floor shrink; cost to
exhibit is too expensive; some are meeting in nearby hotels;
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 9
American Diabetes Association is charging attendees $750 to book
a hotel meeting room
Surprised none of the housing companies are marketing to
attendees using Amazon style customized preferences; seems its a
good market opportunity
Bed bug infestations were discussed; ―hard to get a straight answer
from hotels‖ and inconsistent responses have been found within
hotel chains. See Joint Statement on Bed Bug Control in the United
States from the U.S. Centers for Disease Control and Prevention
(CDC) and the U.S. Environmental Protection Agency (EPA)
http://tinyurl.com/2fzkrzz
Room Pirates were discussed; no conclusive solutions have been
identified; need to continuously communicate with and educate
attendees regarding these fraudulent organizations
Social Media Issues
Cisco is using social monitoring tools (Twitter) to respond in real time
to address content and logistical issues
Salesforce.com uses an internal app with 200 ambassadors for
content and customer services
RSA planning to use www.yelp.com style site in 2012
Specialty Foods attendees are ―not tech savvy‖, but using Twitter as
a trend measuring tool for hot products
Near Field Communications (NFC) is a new type of RFID style
technology
Nephrology used Twitter last year, but it was not well understood or
used
Most expect print and paper to decrease and ultimately disappear
from shows
Generational struggle within some organizations
FourSquare was discussed but no one is using it at this time
www.foursquare.com
SMS text messaging is considered ―old school‖ technology by some
young meeting attendees
Geo location apps are highly desirable
SFCVB is analyzing Social Media and running a contest with
developers to create San Francisco app; expect details soon
Moscone Related Tech Issues
Technology is constantly evolving; many groups are dependent on
Moscone’s network; but many have lack of confidence in it
Hard to get a signal in some underground areas at Moscone
Expect more groups to request Wi-Fi buy outs at Moscone
Need Moscone to play a role in enhancing network connectivity
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 10
Moscone should play a role in connecting attendees; provide apps
for networking; should not just be up to show managers to create
apps; buyers want more from Centers
Thursday, September 9, 2010
Moscone Center Renovation Updates – Paul Woolford – HOK
Paul reviewed the renovation plan; the following summarizes his
comments:
Moscone is the showcase of our creative, colorful, diverse cultures and
communities within the natural beauty of Northern California
Goal is to develop a creative, colorful, sustainable environment which
uses a bright and modern palette to showcase our cultures and
communities within a backdrop of natural materials from California
$55 million project will be completed within 2 years with minimal
disruption to customers’ shows
Work has already begun and will be completed by June 2012;
upgrades include:
o All new carpeting and ceilings
o 24 upgraded rest rooms; new hot water systems; less institutional
look and feel
o Hall E and Esplanade new airwalls are completed
o East West Mezzanine airwalls scheduled for July 2011
o Doubled wireless access in North Lower area and increased by six
times the 3G and 4G bandwidth (May 2010); in house systems now
include a second 100meg network
o New escalators
o New HVAC systems
o Enhanced data network
o Seeking LEED Silver Certification www.usgbc.org
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 12
The Council was asked to prioritize key projects; the following summarizes
their feedback:
Mezzanine space is the # 1 priority for upgrades and renovation
Connector space between North and South also requires work to
make it more useful as a series of networking spaces with excellent
lighting, power sources, flexible seating and enhanced tech options
(Skype stations) etc.
Increase number of electrical outlets and create brighter and more
flexible lighting scenarios
Take care not to create color palates that will compete with show
decorators’ ability to create custom looks for their clients’ shows; keep
look and feel simple and fresh and use minimal floor space
Replacing crash door hardware is not a priority
South Lobby potential to fill in horseshoe area and create more
efficient registration area was endorsed by the Council provided the
space is flexible
Space at the bottom of North escalators is prime area for visual impact
Hall D North Airwall must be improved
Well placed digital displays and interactive stations - searchable
interactive technology
Enhanced way finding features using colors and the graphics and
signage plans shared with the Council were viewed favorably
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 13
Mirrors outside ABC Halls are dangerous (people walk into them during
peak congested times); needs solution
South Hall swing space - 100 rooms are too dark, make them more
appealing
Washington DC Center way finding was cited as highly effective
Creating Best in Class RFP Responses
When asked to provide information regarding ways in which San
Francisco can design and provide responses to RFP that are best in class;
the Council provided the following feedback:
When a client sends a form, be sure to complete it completely and
accurately 100% of the time; incomplete or inaccurate responses are
often disqualified
Ask potential client to define their key ―hot buttons‖
Describe how a show will look and feel in San Francisco by providing
specific examples relevant to the customers’ industry; ―show me similar
organizations that have been successful‖ here
Provide examples of successful attendance building specific to clients’
market; include groups with record breaking attendance broken down
by market and including planner contact information
Custom research is critical to provide meaningful responses, take extra
efforts to ―dig deep‖ can pay off
Go back to basics; provide comparison pricing (gallon of coffee,
internet drops etc.)
Superimpose client’s logo on Moscone graphics to indicate how their
show will look in San Francisco
Don’t ask questions which are covered in the RFP
Best-in-class RFP response: a hotel company sent sales team with iPad
presentation which accurately reflected the brand and services
offered by hotel
Ask for the business; surprising that ―old fashioned selling‖ techniques
(just asking for the business) are often not used
Promotional video should show examples of successful events at
Moscone; ―bring the show in San Francisco to life‖
Use Century Gothic font (used in this report); it uses 30% less ink than
Arial tiny.cc/n4v78
Ensure electronic responses will print properly
Ensure that RFP responses sent to clients at large organizations are sent
using a ―trackable‖ service such as FedEx; do not rely on regular mail
Letter from the Mayor is not meaningful
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 14
Future of Trade Shows
The Council discussed their views regarding the future of trade shows; the
following summarizes their comments:
Some organizations are shifting show floor focus from selling to
education; this requires the creation of quiet spaces on show floors
Other shows remain strongly focused on selling; however, almost all
need to mitigate costs
Attendees want to interact with someone who truly understands the
product
Some shows are seeing exhibitors reducing booth footprint due to cost
The Council was asked their opinions regarding the CVB’s involvement at
meeting industry shows such as MPI, ASAE, PCMA etc; the following
outlines their comments:
Strong desire for customized experiences; ―I want to be invited to a
smaller event‖ with educational element to share trends and have
close interaction; peer to peer experience are also desired
Scheduled appointment during show: appointments won’t work for
some very experienced buyers who are too busy during shows; less
experienced planners are best targeted for appointments
Dinners events
o One size won’t fit all, but be sure to get invitation out as early as
possible; make personal follow up calls to key attendees
o Invite current client as ambassadors to sell peer to peer to
planners from similar organizations
San Francisco Supervisors Lunch
San Francisco Supervisors Bevin Dufty http://tinyurl.com/242dd39 and
Carmen Chu http://tinyurl.com/24ryoc8 joined the Council during lunch
at the Hotel Monaco. The Supervisor took questions from the Council
regarding Union, Hotel Tax, Streetscape and Homelessness issues.
Because the other 7 Supervisors were unable to join the lunch, the
following questions have been sent to all Supervisors requesting written
responses and answers will be shared.
Questions to the Board of Supervisors:
Proposed hotel tax increase; what are the Supervisors’ thoughts and
plans?
o We appreciate that tourism is not be a visible part of all Districts’
infrastructure
o People working in the tourism industry live in all the districts in San
Francisco
o Want the Supervisors to truly understand the huge impact
tourism has on all areas of the City
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 15
o Raising the hotel tax is extremely counter productive; it would
put San Francisco in the very top tier of hotel tax levels in the
country
o What can the Council members do to help defeat the hotel tax
and/or help the City to improve the visitor experience such as
letters, testimonials etc.
Labor and jurisdiction issues at Moscone Center are extremely time
consuming and counter productive for meeting professionals and
show planners – what can be done to address these issues?
How can the City help ensure that Moscone costs are competitive for
space rental fees, food and beverage, labor, and other services?
o All convention centers are loss leaders that generate economic
impact and tax revenue for destinations far beyond their
operating losses
o Does the Board of Supervisors truly understand that focusing on
minimizing the operating losses of the buildings can/does
jeopardize the overall economic impact of conventions?
Are you supportive of expanding Moscone Center?
o Many annual/regular rotation groups are outgrowing the
facilities and/or need more contiguous exhibit space (rather
than splitting exhibits into more than one building)?
o SFCVB economic analysis studies shows there is demand for
more space
o What can the Advisory Council do to ensure an expansion is
funded and happens in a timely manner?
What’s being done to keep the city streets clean
What’s being done to improve the homeless population situation (the
situation has improved) but what’s planned for the future?
What can be done to improve taxi service in and around Moscone
Center and the Union Square area?
Open Forum with Hoteliers, The City and the CVB
The following outlines the comments and feedback from the session:
Union Issues
Unions are calling labor actions a ―siege‖ and other unions are not
honoring informational pickets which typically have only a few
participants
Hilton, Hyatt, Intercontinental and Starwood are in on-going labor
negotiations; contract was up in August 2009; all have had multiple
negotiation sessions; expect contracts will eventually be settled
All major hotels are equipped to operate effectively despite labor
actions
No meetings have been interrupted by labor actions to date
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 16
San Francisco Business Times named the Grand Hyatt as one of the
best places to work based on employee feedback
Moscone has a signed contract with Local 2 and an agreement that
there will be no work stoppage due to labor action
Hotel Tax Increase
Hotels are united in defeating the proposed hotel tax increase
Council members expressed concern that future hotel rate increases
will far exceed the impact of proposed 2% tax; this could make San
Francisco too expensive
Cost of Doing Business in San Francisco
High cost of doing business here, operating margins are 5 to 10% higher
than other cities
Health care costs $1,200 per employee vs. $300 in San Diego
Trying to create ways to mitigate high costs to ensure the City is not
price prohibitive for meetings and events
Gia Carunchio offered to review cost comparison spreadsheets
Moscone is holding prices till August 2011 and offering more lower
price options such as express box lunch, lower costs buffets and one-
time pay for unlimited individual coffee
25% of F&B revenue is paid to the City
Strong concern that high costs will force planners to book other
destinations; ― the joy of San Francisco is not enough to offset high
costs‖
PKF reports that 2008 hotel rates will not return until 2014; 2008
operating margins won’t be seen again until 2018; current hotel rates
are 20% lower than 2008. Highest hotel rates were in 1999
www.pkf.com
Managing Costs - Customer Perspective
Buyers are seeking increased costs concessions, more aggressively
seeking F&B discounts, free Wi-Fi
Actively renegotiating hotel rates
International Markets
International attendees can make up 50% for some San Francisco
meetings
San Francisco is the country’s 3rd largest inbound international
destination after LA and New York; San Francisco market share is the
largest at 40% international
Despite a down economy, SFO Airport grew 11% over last year with
new air service from Swiss, Air Berlin, United and Air France
No significant negative perception issues cited by international visitors
San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 17
Wrap Up
Joe D’Alessandro thanked the Council for their constructive feedback
and on-going commitment to San Francisco; these meetings energize
the City and provide a real catalyst for productive changes and
improvements. The Council’s feedback is taken to heart.
Special thanks to the Westin St. Francis and Kimpton Hotels for hosting
the meeting.
Actions Items and Recommendations from the September 2010 meeting
Establish protocol to schedule meetings to address Union jurisdiction
issues; make this part of the site inspection process and follow
through right up to the Pre-Con meeting
All Union costs need to be clearly stated in manuals and show
planner guide
Create a sub-committee to work with Moscone and their tech
consultants in the next few weeks to address network and wireless
issues. Members are Karen Ruel, Kathy Doyle, Sandra LaPedis Toms
and Johnnie White; hotel members are Scott Baublitz & Roxy Stone
Gia Carunchio to review cost comparison spreadsheets
Offer international telephone calling cards and develop SIM card
partnership for international guests; sell at Moscone and in hotels
Create more seating and networking areas at Moscone
Communicate new Moscone way finding color schemes to
planners and show managers
Create and publish Geolocation coordinates for all Moscone
meeting space http://tinyurl.com/yahemfo
Send comments regarding Moscone improvements to Lynn
Farzaroli, Executive Office Liaison [email protected]