THINK MICE OCTOBER-DECEMBER 2018

OCTOBER-DECEMBER 2018 ISSN 2543-4497

THINK MICE W W W. T H I N K M I C E . P L

TAURON ARENA KRAKÓW In the four years since its opening in 2014, TAURON Arena Kraków became the cultural, sport and business calling card of the city. Poland’s largest sport and entertainment arena - and one of the largest venues of this kind in Europe - attracts events of international renown, also connected with the meetings industry.

THINK DESTINATION ZAGREB - WELL WORTH A VISIT

PROFILE PAVEL NEDOSTOEV: EVERY DAY IS A BRAND NEW STORY S P EC IA L ED I T I ON

INSPIRATIONS BE LIKE SANTANA! WHY DOES HARD WORK PAY OFF?

EDITORIAL

A PARADOX OF INFRASTRUCTURE The U.N. COP24 climate summit will be staged in Katowice in

the Polish-language edition of THINK

December. Once again, for close to two weeks, the whole world

MICE. Using the example of the

will be looking at Poland. This is no exaggeration, especially when

renovated Centennial Hall in Wrocław,

you consider the fact that the event in question will be attended by

he emphasised that designs of this type

tens of thousands of participants, including delegates from close to

of buildings include, i.a. broad entrance

200 countries from all continents. From the viewpoint of the MICE

gates making it possible to drive large-

industry, an event of this scope is obviously a great advertisement

size objects inside, a logical arrangement

for the host destination, promoting it as a place where you can

of layout of rooms and gangways,

effortlessly stage truly grand meetings. Such perception is inspired

a spacious area for guest registration

by the skills and know-how of local agencies and subcontractors,

or to host a chillout zone. Daylight

but it is the infrastructure that is key here.

access is also a welcome feature.

In some kind of a paradox, an unfortunate historical background

Polish venues already boast all

made Poland’s meetings industry start developing later than in the

of these advantages - thanks

West. On the other hand, the Iron Curtain and the whole

to their “young” character they

communist era had an indirect impact on what is happening today

have been designed and

with one of the largest advantages of our country. This is where

erected in a way that matches

the abovementioned infrastructure comes into play.

most recent trends and the

A decisive majority of Polish congress and conference centres, as

expectations voiced by

well as other venues that can be applied for events (i.a. stadiums,

representatives of the

trade show halls, arenas) are new, no older than 10-15 years. In

MICE industry.

addition, the more historical venues (e.g. post-industrial, cultural,

In any case, the investment

palaces and manor houses) are systemically modernised. All of this

boom in Poland is in full swing, as

makes the discussed offer well-adjusted to the needs of present-

demonstrated by the hotel industry, which is investing in new

day meeting planners. It is a matter of architectural solutions rather

venues not only in major cities, but also in smaller towns. As a

than simply room equipment and most advanced technical gear,

result, you can bring even the largest and most demanding events

which can always be rented if necessary. Rob Davidson, long-term

to the country by the Vistula. How does it all look like in practice?

business tourism lecturer at London universities, author of several

This is something that you should really find out for yourself…

books dedicated to the meetings industry, currently Managing

Let us meet in Poland!

Director with the research and consultancy company MICE Knowledge, recently recalled this fact in a blog post reprinted by

Michał Kalarus

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COVER PHOTO: TAURON ARENA KRAKÓW EDITOR Michał Kalarus michał.kalarus@thinkmice.pll

Photo: NCF Event

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Photo: IT&CMA

MICE & MORE MEDIA GROUP THINK MICE Business Link PGE Narodowy Al. Ks. J. Poniatowskiego 1, 03-901 Warszawa tel. +48 690 12 12 69 redakcja@thinkmice.pl www.thinkmice.pl www.facebook.com/thinkmice/

Photo: THINK MICE

THINK MICE 08

NEED TO KNOW 06 New Polish Congress Ambassadors announced in Poznań 06 New BEIC members 06 David Thompson announced new Director of IBTM World 08 IT&CMA or Asia-Pacific in a pill IMEX AMERICA 10 THINK MICE at IMEX America THINK EVENT 12 Grand show celebrates the 25th anniversary of Volkswagen Poznań

EDITORIAL TEAM Ksenia Bednarek, Agnieszka Jurewicz Maciej Kompała, Monika Kowalska, Tomasz Nowak Jacek Słowik,

THINK INCENTIVE 16 Southeast Asia: what’s new for MICE? 18 Family incentives gain momentum

ADVERTISEMENT Aleksandra Lublińska aleksandra.lublinska@thinkmice.pl reklama@thinkmice.pl SUBSCRIPTION prenumerata@thinkmice.pl DESIGN Iwona Borowska Roman Borowski studio@thinkmice.pl

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PROJECT MANAGER Anna Łukasik think@thinkmice.pl

THINK VENUE 20 TAURON Arena Kraków THINK DESTINATION 24 Katowice: all eyes on UN climate summit 26 Zagreb - well worth a visit

ISSN 2543-4497 THINK MICE is a magazine dedicated to the Polish and international meetings industry (MICE – meetings, incentives, conferences, events) and its scope encompasses all of the segments in question: meetings, incentive trips, congresses and conferences. By adopting an in-depth and multifaceted approach to all covered issues, we present the role and significance of the industry for, i.a. broadly defined marketing communication, employer branding and destination marketing.

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PROFILE 30 Pavel Nedostoev: Every day is a brand new story INSPIRATIONS 34 Be like Santana! Why does hard work pay off?

Photo: Fotolia

©COPYRIGHT BY MICE & MORE MEDIA GROUP

Photo: Departament

PRINTING HOUSE TAURUS

TECHNOLOGIES 37 Blockchains, cryptocurrencies and the MICE industry

37

REPORT 40 Prices are going up, but not everywhere

NEED TO KNOW

WARSAW played host to Global DMC Partners Connection

Staged in the capital of Poland, Europe’s first Global DMC Partners Connection conference consisted of business meetings, an educational programme, a number of networking events, and trips intended to showcase the potential of Warsaw and Poland as a noteworthy MICE destination. The event was attended by close to 200 representatives of DMCs (Destination Management Companies) from all over the world. Staff members of European bureaus made up 40%, with guests from other continents rounding out the rest. North America (USA and Canada) dominated, although there was also no shortage of professionals involved in the MICE industry in, i.a.

Argentina, Australia, Brazil, Dominican Republic, India, South Korea, Costa Rica, RSA and United Arab Emirates. All of them came to Warsaw to establish business relations, discuss current topics and the future of the meetings industry, as well as to learn more about Poland. The conference was arranged by the U.S.-based Global DMC Partners, one of the largest international organisations associating DMCs, together with its Polish local partner, Select Poland, and Warsaw Tourism Organisation. “For the first time we decided to bring our regular event to Europe.

The choice of Warsaw was an unequivocal success.

The very fact of setting the conference in the ‘old continent’ had a noticeable impact on attendance

figures”, says Catherine Chaulet, President of Global DMC Partners.

The event’s chief component, 15-minute B2B meetings at tables, attracted DMC professionals, sponsors and representatives of clients. As for the informative section, a large emphasis was placed on the latest industry trends and the way they can influence the functioning and shape of incentive travel. The agenda also encompassed the most topical issues, with a leading role played by the General Data Protection Regulation, which was implemented in the entire EU in late May. The less official networking and entertainment section was focused on exploring Warsaw. In addition to attending lunches, cocktails and ceremonious dinners, the participants had an opportunity to become involved in several thematic tours of the capital. The more active guests could sign up for a morning walk and a bike ride along the city’s streets. The list of available options also included a post tour to Kraków, which - depending on the preferences of attendees - was connected with sightseeing the Wieliczka Salt Mine, the Auschwitz-Birkenau Museum and a rafting trip down the Dunajec.

The Global DMC Partners Connection conference was held at Sheraton Warsaw Hotel on 16-19 August. mk

ANNA GÓRSKA running for ICCA Board of Directors Anna Górska, Business Development Director at EXPO XXI Warszawa, for six years the Chairperson of ICCA Central European Chapter, is running in elections for the association’s Board of Directors (venues sector).

Her candidature was submitted by Stefan Lohnert of ICS International Congress Center in Stuttgart, also head of ICCA German Committee, and Mahira Julfara of Dubai World Trade Centre, current member of the ICCA Board. The online voting for the new board member was inaugurated in the second half of September. All 381 ICCA members representing the venues sector are eligible to vote. Votes can be cast at this year’s ICCA congress scheduled to take place in Dubai on 11-14 November. This is also where each candidate will present an “election promise” during a five-minute speech. The Polish candidate is supported by the President of Polish Tourism Organisation (Polska Organizacja Turystyczna – POT) and Polish ICCA members, who are planning promotional initiatives during the congress. The list of candidates for ICCA Board of Directors in the venues sector also includes Clare Amsel, Executive Consultant Conferences at Megaron Athens International Conference Centre in Greece, Jonas Scharf, Managing Director of Congress Center Basel in Switzerland, and Anja Stas, Chief Commercial Officer of Flanders Meeting & Convention Center Antwerp in Belgium. The new member of the board will be announced on 14 November, on the last day of the ICCA congress. kos

THE LARGEST Meet The Bidder in history Staged at Novotel Warszawa Centrum on 21 November, the largest-ever edition of Meet the Bidder SMART Fairs will showcase the offer of close to 100 exhibitors from five continents - Europe, North, Central and South America, the Caribbean, Africa and Asia. They will conduct a number of B2B meetings with representatives of Polish and foreign agencies specialising in arranging MICE travels. The Meet The Bidder team recommends the event for all managers developing international incentives and

luxury and tailor-made trips. Divided into morning and afternoon sections, the new all-day formula will make it possible for particular guests to attend Meet the Bidder at an optimal time. In addition, it guarantees a wide range of additional highlights and surprises. This year the Diamond Partner of Meet the Bidder Grand Edition title will go to Singapore Tourism Board, with THINK MICE acting as the event’s media partner. Everyone interested in attending should register through an application form available at www.meet-the-bidder.com/zgloszenie.html.

Participation is free, but there is a limited number of seats. mk

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NEED TO KNOW

DAVID THOMSPSON ANNOUNCED NEW DIRECTOR OF IBTM WORLD Global Incentive and Business Travel and Meetings Exhibition with Conferences (IBTM) revealed David Thompson as the new Exhibition Director for IBTM World. Over the course of 14 years spent in the MICE industry, David Thompson was arranging events for brands such as Haymarket Exhibitions, BBC, Informa, Daily Mail Group and Clarion Events. Thanks to cooperation with key global companies and promotion of events in Europe, the Middle East and the United States, he gained recognition within the MICE community, as confirmed by numerous awards. Earlier responsible for securing international mass events at Clarion Events, now David Thompson will be in charge of arranging IBTM World, one of the largest cyclic events in the portfolio of the IBTM group.

As usual this year’s IBTM World 2018 will be held at Fira Gran Via in Barcelona. The expected attendance figures include more than 3,000 exhibitors and 3,500 buyers from more than 150 countries worldwide. IBTM is a part of Reed Travel Exhibitions (RTE), one of the key tourism organisations of an intercontinental scope. tn

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New POLISH CONGRESS AMBASSADORS announced in POZNAŃ The group of Polish Congress Ambassadors now features 16 new laureates. The official ceremony honouring them was held on 27 September during a festive gala staged in the Earth Hall, the showpiece of the Poznań Congress Centre. Jointly implemented by Polish Tourism Organisation (Polska Organizacja Turystyczna - POT)/Poland Convention Bureau and the Polish Conference and Congress Association (Stowarzyszenie Konferencje i Kongresy w Polsce - SKKP), the Polish Congress Ambassadors programme is aimed at promoting Poland as a host destination of international congresses and conferences. This year’s 18th edition of the gala introduced 16 new Ambassadors. In addition, the Polish Congress Patron title was awarded for the first time in the programme’s history as a way of acknowledging the role of sponsors supporting the

Photo: THINK MICE

Four new members joined the Baltic Event Industry Club (BEIC) – two representatives of Latvia and one from Germany and Sweden each. BEIC associates agencies specializing in event marketing operations that are based in the ten countries of the Baltic region. It is also the organizer of Baltic for Events Forum.

The list of new BEIC additions includes two Latvian companies – 3K Management, providing services in the field of broadly defined marketing communication, whose portfolio also encompasses event projects, and Meduza Events, an agency specializing in staging events. In addition, BEIC now encompasses Sweden’s Nordic Arena Group, also involved in marketing and brand communication, and Vok Dams, one of the largest event agencies operating in the German market.

“I believe that joining forces is key for the improved promotion of the emerging event and live communication market in countries representing the Baltic Sea region. I am looking forward to meeting new, inspiring people who have great ideas and an enthusiastic approach to working and developing projects in the area of marketing communication. This is the type of contacts I find absolutely crucial”, says Colja Dams, Chief Executive Officer, Vok Dams. mk

Photo: THINK MICE

NEW BEIC MEMBERS

staged meetings and events (winners included ADAMED Group, Fortum Power and Heat Polska, and Concept Music Art). ICP Group won the competition for the largest international congress staged in Poland in 2017 in recognition of organising WOMEX (World Music Expo) in Katowice. The evening Ambassadors Gala was preceded by the Poznań Meetings Challenge conference held by SKKP and dedicated to challenges faced by the Polish and Poznań meetings market and issues relating to the cooperation between meeting organisers and their sponsors and partners. The list of topics brought up by the Poznań Meetings Challenge also included the future of the city’s meetings industry. Panel participants discussed, i.a. the role a major trade and congress venue plays in the city’s promotion. mk

NEED TO KNOW

IT&CMA OR ASIA-PACIFIC IN A PILL

Photo:. IT&CMA

Pattaya and Worldwide Cruise Associates boasted record-breaking results in this field”, comments Darren Ng, Managing Director with TTG Asia Media.

Still, many hosted buyers were pointing out the absence of representatives of some countries that are important from the viewpoint of staging MICE events.

“I believe that slightly more countries should be present in Bangkok so that we could gain a wider perspective on the region and its potential in the field of the offer aimed at business tourism. For example, representatives of Cambodia were barely visible and the same goes for, among others, Laos and Myanmar”, admits Magdalena Tupikowska, Telco Key Account Manager at Motorola (Lenovo Polska).

IT&CMA organisers seem to be aware of the fact that there is no point in changing a well-proven and successful formula of the event. This might explain why the latest edition had several new features, but generally opted for the usual pattern of a strong focus on business and information rather than any revolutionary changes.

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THINGS COULD HAVE BEEN BETTER

This year’s Incentive Travel & Conventions, Meetings Asia (IT&CMA) and Corporate Travel World (CTW) Asia-Pacific attracted approx. 900 exhibitors representing 316 destinations and companies providing MICE services and more than 460 hosted buyers from 45 countries worldwide. Arranged by TTG Events (part of the TTG Asia Media group), it is perceived as one of the most significant events dedicated to the meetings industry in the region of Asia-Pacific.

As in previous years, IT&CMA participants observed that the group of exhibitors included numerous major hotel venues, often belonging to international chains. “Their offer was aimed at large groups, often conference participants. On the other hand, there were relatively few boutique venues, such as wellness & spa centres, which personally I am most interested in”, notices Katarzyna Borowiec, General Manager at Hills of Skills. Magdalena Tupikowska shares this view: “Each of us is familiar with chain hotels. I missed seeing something unique and one-of-a-kind, especially since there are so many places of this kind in Asia. For example, I am thinking here of the rainforest spa centre on the Thai island of Ko Samui. I am surprised that venues of this kind were not promoted”, says Tupikowska.

NEW EXHIBITORS

GOOD BUSINESS

This was the already 26th edition of IT&CMA, which 17 years ago moved to Thailand where it enjoys the strong support of Thailand Convention & Exhibition Bureau (TCEB). Moreover, since 2004 it is held together with the CTW Asia-Pacific corporate travel management conference. Although this year’s total exhibition area of the two events was identical as in 2017 (6,000 m2), many new exhibitors showcased their offer, including American Airlines, Japan Airlines, Princess Cruises, Hiroshima Convention & Visitors Bureau, Kobe Convention Bureau, Seoul Tourism Organization and Switzerland Tourism. “In addition, many of our guests decided to expand their booths.

Thailand Convention & Exhibition Bureau, the city of

Despite these shortcomings, the overall assessment of the event is positive equally among exhibitors and hosted buyers. Participants were comparing it to London’s The Meetings Show, both as regards size and prevailing ambience. “Thanks to the event’s intimate character, almost everyone knows each other after the first day. This has a noticeable impact on the quality of meetings, which thus become less formal. I view it as a great advantage making it possible to establish lasting relations”, says Anna Kopek, owner of the Teja Tur agency. With certain exceptions, exhibitors were lauded for their preparation for talks, which is not always the case. “Obviously there were some general presentations that did not contribute

anything new but, thankfully, they were in the minority. The majority of meetings were very productive”, says Katarzyna Borowiec. Booths from the Philippines, Japan, South Korea and India were particularly praised for the comprehensive and professional character of the prepared offer. “A representative of Jaipur immediately presented me with the agenda of a whole trip, including must-see destinations, transfer time and all other details. In addition, he could answer all of my questions. As a client I found this very helpful”, emphasizes Magdalena Tupikowska.

SIDE HIGHLIGHTS Each year there is more to IT&CMA than meetings staged in an exhibition hall. Mention is also due to a number of side events. “This year we prepared about 30 networking, tourist and educational events of all sort”, says Darren Ng. The opening ceremony, two pre-tours and post-tours to Thailand and the Philippines constituted an important component of this offer. As for the educational agenda, the organisers came up with 22 sessions attended by about 50 speakers representing all branches of the MICE industry. In addition, MICE Cruise Conference, a new feature of IT&CMA, was dedicated to the market of cruises in Asia, while representatives of associations, such as IAPCO, ICCA, SITE and World PCO Alliance, shared their experiences as part of the Association Days Forum. “The organisers ensured the presence of representatives of associations from literally all over the world. Unfortunately, knowledge transfer mostly concerned managing an association as an institution, with events outside of the scope.

However, I did notice that the Polish market is exceptionally interesting from the Asian perspective.

As a result, I lobbied for EIAP to become an institution used not only to establish relations with our members and the Polish industry, but generally to act as a ‘window’ to Europe”, says Dagmara Chmielewska, Managing Director with Events Industry Association Poland (EIAP).

IT&CMA was held on 18-20 September. THINK MICE was the event’s official media patron and organized a group of hosted buyers. The international edition of our magazine was also distributed in Thailand.

Michał Kalarus

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Photo: THINK MICE

THINK MICE AT IMEX AMERICA MID-OCTOBER SAW THE IMEX AMERICA EXHIBITION HELD IN LAS VEGAS FOR THE EIGHTH TIME. ACCORDING TO ORGANISERS, THIS WAS THE LARGEST EDITION IN THE EVENT’S HISTORY. HOW DID ITS RECORD-BREAKING SCOPE AFFECT THE BUSINESS PERFORMANCE OF POLISH AND FOREIGN EXHIBITORS? WHAT WAS THEIR FEEDBACK? WHAT ARE THE GREATEST DIFFERENCES BETWEEN THE EUROPEAN AND U.S. EDITION? FIND ANSWERS TO ALL OF THESE QUESTIONS AND MUCH MORE IN OUR COVERAGE OF IMEX AMERICA. IMEX America is a sister event of its Frankfurt-based counterpart. Even though the exhibition was launched relatively recently (2011), it quickly became known as one of the largest events dedicated to the meetings industry to be staged in North America. This year IMEX America was attended by about 13,000 participants, including 3,500 exhibitors from more than 150 countries worldwide and more than 3,300 hosted buyers.

KEY DIFFERENCES

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Although the groups of both exhibitors and hosted buyers involved in IMEX America contain representatives of countries from virtually all continents, the majority of guests

hail from North America (mostly the United States), Central and South America. This trend makes IMEX America a noteworthy proposal for everyone wishing to establish or reinforce business ties with the markets in question. IMEX in Frankfurt is dominated by European companies and offers slightly smaller opportunities in this field. “As for differences between the European exhibition and its U.S. counterpart, they are mainly evident in the proportions and selection of hosted buyers. At IMEX in Frankfurt firms from the United States, other North American countries, South America and Australia have a decisively smaller presence. An opposite situation can be observed in the U.S, where there are fewer European

delegates. This is good news as the probability of meeting the same people at both events is relatively small. By travelling to Las Vegas we get an opportunity to reach entirely different groups of clients”, said Aneta Książek, Chief Conference Expert at Poland Convention Bureau POT. On both sides of the Atlantic, more or less in the same proportions, you will meet representatives of Asian and African markets. Another feature making IMEX America stand out from similar events and speaking in its favour involves the fact that many attendees travel to Las Vegas on their own. They represent the world’s largest global corporations, most of which have headquarters in the adjoining California. Due to the short di-

IMEX AMERICA stance, they are not interested in participating in a hosted buyers programme and instead choose to travel without any assistance. “As a rule, they neither have the time nor the desire to meet the conditions required from hosted buyers, who need to stage a defined number of meetings, attend trade fairs, etc. They prefer to come for one day, take a look around and focus exclusively on establishing relations of importance for them. These are highly esteemed clients, who are of great value for the event”, explains Sabina Linke, Executive Director at Nurnberg Convention Center.

This year the growing interest shown in IMEX America convinced its organisers to add one more arena to the exhibition space. The decision was mostly influenced by the fact that 81 returning exhibitors (27% of all that have participated so far) chose to expand their booths (i. a. Detroit Metro Convention & Visitors Bureau, DMI Hotels, Rwanda Convention Bureau, Royal Caribbean International, Bermuda Tourism Authority). In addition, the event featured 60 entirely new exhibitors, whose list included representatives of, i.a. Meet New York, Malta Tourism Authority, Morocco National Tourist Office, Nobu Hotels, Visit Dallas and Pacifica Hotels.

many exhibitors. On the contrary, South American hosted buyers offered an opportunity for promotion in the market in question, creating a noteworthy added value and sometimes even becoming the priority group of recipients. “We mostly target hosted buyers from Mexico and Latin America. From our viewpoint, they constitute an optimal group of clients, which is why we want to reach them with our message”, says Esteban Sierra Gayon, Marketing & Sales Executive at Greater Bogota Convention Bureau.

Exhibitors from Asian destinations, such as Charlie Kim, Senior Manager at Korea’s Coens, shared this view. “I have been talking with both U.S. hosted buyers and their colleagues hailing from other parts of the world, in more or less equal amounts. Taking a strictly business approach to the meetings, I consider the Frankfurt exhibition to be the more attractive option.

This is not because of any shortcomings in IMEX America’s organisation, but rather the fact that Asia is simply more popular in Europe as a target destination of MICE travels. In addition, the majority of associations, with which we collaborate, are based in the old continent. Still, this does not mean that the Las Vegas event is not worth showing up for, if even to put your name out there in North and South America. We are forging new paths and can already see the first consequences of this policy”, confirms Charlie Kim.

POSITIVE FEEDBACK

POLISH ACCENTS

How did all of this affect the business performance? According to the opinions of exhibitors, the general effect can be considered pretty successful. “We have been attending IMEX America for several years now and we are highly satisfied with the exhibition. We focus on the American market, as U.S. meeting planners constitute our main group of clients”, admits Morgan Miller, Convention Sales Manager at Oklahoma City Convention & Visitors Bureau. From the very outset IMEX America was aimed at hosted buyers from North America, with particular emphasis on the United States, which is perfectly understandable due to the event’s setting. Still, the Las Vegas event also attracts quite many hosted buyers from Latin and South America – certainly many more than IMEX in Frankfurt.

Nevertheless, this did not pose a problem for

Polish exhibitors were also present at IMEX America. “I have been involved in the exhibition for seven years. Particular editions represent a similar level, as does the number of meetings ranging from 15 to 25. Still, it is not quantity but quality that counts. Fortunately, things are similar also in this area. According to my observations genuine business opportunities are generated by approx. 20% of meetings. This is a pretty good result”, comments Tomasz Mlącki, Sales & Business Development Director at DMC Poland. The Polish national booth – co-financed by Polish Tourism Organisation-Poland Convention Bureau and the Małopolska Tourist Organisation – also showcased the offer of DMC Poland, Ernesto Travel and Intercrac. “Poland is becoming an increasingly attractive destination for meeting planners, especially if they are looking for new

A LARGER AND MORE COMFORTABLE EXPERIENCE

and so far unexplored places. This is happening thanks to the growth of conference infrastructure, the expansion of hotel and gastronomic venues, as well as the continuous development of the network of connections.

We are already aware of our assets, but now it is time to convince the clients. This explains the presence of Poland at the world’s largest exhibitions of the meetings industry”, clarifies Aneta Książek.

GOOD RESULTS Meetings between exhibitors and hosted buyers were in most cases set up prior to the event’s opening. Thanks to this approach, the former could influence the choice of their business partners. What is more, they could also avoid meetings with representatives of countries, whose markets they do not consider a priority or whose delegates are present at European exhibitions. “At IMEX America I took part in about 25 highly businessoriented meetings, which I am satisfied with.

Some of them related to inquiries about the period of 2020-2023 for groups of up to 1,000 participants. I must admit that hosted buyers in the United States are much better prepared for talks than their European colleagues. In the majority of cases they know what they want and immediately get down to business”, says Aneta Książek. Even though the Polish booth mainly placed emphasis on talks with U.S. clients, meetings with representatives of Asian markets, i. a. Singapore, were also highly promising. With PLL LOT launching a direct flight to Singapore, local clients became much more interested in Poland. “Talks conducted with a Hungarian contracting party – the general secretary of an international cartographic society – also proved to be productive. He is interested in bringing a congress of 1,000-1,500 participants to Poland”, adds Aneta Książek.

IMEX America was held at the Sands Expo and Convention Center in Las Vegas on 16-18 October. Its next year’s edition will be staged slightly earlier - on 10-12 September. THINK MICE was Poland’s only official media partner of the event. The English-language edition of our magazine was also distributed in the United States.

Michał Kalarus

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THINK EVENT

Grand show celebrates the 25th anniversary of Volkswagen Poznań

Photo: NCF Event (2)

A SCREEN OF 6,000 M2 SET ON A STADIUM PITCH, A MULTIMEDIA SHOW PRESENTING THE BRAND’S HISTORY AND LIVE PERFORMANCES OF TOP POLISH ACTS - THIS IS HOW VOLKSWAGEN POZNAŃ CELEBRATED ITS BIRTHDAY.

The 25th jubilee of Volkswagen’s presence in Poznań was a crucial event for the company’s management. This is why a series of smaller functions was complemented with a large-scale event for employees, partners and their families - a total of tens of thousands of people.

Inaugural preparations for the event began last summer, with Volkswagen Poznań issuing a call for bids for its comprehensive organization.

The brief included information that the event should offer something more than only a concert of popular artists, that it should deliver the “wow effect” and find a way to awe and engage the spectators.

CREATIVITY ON TOP

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The tender procedure involved several agencies (also from abroad). Following an initial verification of their offers, three companies were invited to take part in the second phase. At the turn of the year, after a thorough analysis of all proposals (including agendas, creative concept, suggested solutions and costs), the customer

decided to select the Warsaw-based NCF Event agency. “This is a company we were familiar with as we have already worked together. Indeed, our cooperation is constantly developing.

This time our choice was mostly influenced by the awe-inspiring concept of an extraordinary multimedia show devised by NCF Event. As Volkswagen Poznań’s operations are following the philosophy of Industry 4.0, we wanted to make sure that our employees deal with advanced technologies – not only as part of their daily work, but also during the event. As a result, we found the proposal of involving a great deal of state-of-the-art equipment and showcasing its potential in practice to be the most interesting”, explains Monika Olejniczak, Head of the Department of Communication and Compliance at Volkswagen Poznań.

FREEDOM OF ACTION NCF Event was responsible for the comprehensive arrangement of the whole show. In addition to its creative concept and coming up

with the multimedia part, it also handled all the logistics connected with the event’s organisation (i.a. entering all the essential agreements, coordinating issues connected with venue rental, booking artists, public transport, branding, guest registration, catering, etc.). Katarzyna Boszko was the agency’s contact in charge of all event-related logistics. On the part of the client, a special working party was set up to supervise relations and cooperation with the agency. Its members included more than ten people, i.a. staff of communication and HR departments previously involved in staging events for employees and a social partner (a trade union representative). “As regards the first part of the event, the multimedia show, we decided to leave all arrangements to the agency.

Our interference was limited to the concert section. We wanted to influence what artists will headline the line-up and made some suggestions. At working meetings, on average held every eight weeks, we used to discuss how the works are proceeding, consulted our con-

THINK EVENT cepts, explained our priorities, which components we would like to emphasise and which we can live without if necessary”, explains Monika Olejniczak.

ELEMENT OF SURPRISE The main idea of the event was to surprise the audience as much as possible. After entering the stadium guests did not see anything extraordinary. Sophisticated set designs were nowhere in sight. A round stage of a 25-m2 diameter was set up in the middle of the stadium’s turf, properly secured against damage. Scaffoldings were placed in four corners, concealing vehicles, on which enormous screens were installed to broadcast all the upcoming highlights. “The whole performance was planned in such a way as to keep all participants in the dark about what was going to happen. Things were even a little bit boring, obviously on purpose. All of this changed as soon as guests heard the first sounds signalling the show’s proper opening”, explains Maciej Sobkowiak, Partner at NCF Event and the show’s director.

That very moment - at 8.40pm to be precise it turned out that the turf ’s security systems were actually an enormous display surface of 6,000 m2 (the entire structure was larger by 1,000 m2), on which the multimedia spectacle was shown. For this purpose, 32 laser projectors were applied, each boasting 41,000 ANSI lumens. The 23-minute animated film was produced in a resolution of 10,000 pixels. On top of that, additional animated videos were prepared for all artists performing during the concert (with each band playing 3-4 songs).

All 20 films were produced by NCF Event, while NEWMOTION Studios, represented

by Paweł Kozłowski, handled the show’s video production at the agency’s request.

“We are very proud of the truly impressive final effect”, says Maciej Sobkowiak. The organisers admit that producing the animated films in question constituted one of the greatest challenges connected with the event’s arrangements. The time needed to render the 8K video footage was at the top of the list of problematic issues. “The equipment at our disposal represents world-class quality and eventually needed as many as 5.5 days to render the 23-minute material used for the main show.

In addition, the hard disk capacity of the device

displaying the completed animated film equalled 2TB. While this is certainly an imposing number, it still was not enough for us. As the disk is integrated with the device, expanding its capacity was out of the question.

As a result, we had to slightly reduce the rendering quality to match the capacity we were working with”, says Maciej Sobkowiak.

TONS OF EQUIPMENT Another significant issue involved compiling and setting up the indispensable equipment.

TSE Group was responsible for multimedia services provided for the event. “We have been working together for more than 25 years and produced numerous major projects. We trust each other”, explains Maciej Sobkowiak, adding that “Obviously in the case of an event of this scope it is simply impossible for one company to have all the required equipment stored in its warehouses. Especially since we used a wide variety of diverse devices of all types. Some had to be rented, others brought from abroad. TSE Group was in charge of all the arrangements”. Preparations for the event were launched virtually immediately after the

tender results were announced, at the turn of the year. Direct onsite assemblage took place only a few days before the event. A match was played in the Miejski Stadium on the weekend before, making it possible to only set up fibre optic installations on the stadium’s dome (at the height of more than 45 m). “The greatest challenge was connected with finding the right positions for 32 projectors suspended on the structure of the roof ’s stands and illuminating the pitch, picking the right height and angle of the light, so that all spectators in the stadium were equally comfortable while watching the videos. In addition, the process of synchronizing projectors in such a short period of time was also highly complicated and demanding – we only had two night for the calibration and configuration of parametres”, reveals Łukasz Kubiak, General Director at TSE.

THEORY VS. PRACTICE Because of the specific character of the host venue, a stadium, and the number of events staged in it, the organisers had to face another challenge in the form of the limited time scheduled for work and rehearsals conducted on-

DOSSIER Event: 25th anniversary of Volkswagen Poznań Date: 8 September 2018 Venue: Miejski Stadium in Poznań Client: Volkswagen Poznań, https://volkswagen-poznan.pl Organiser: NCF Event, http://ncfevent.pl Director: Maciej Sobkowiak (NCF Event) Event producer: Katarzyna Boszko (NCF Event) Multimedia: TSE Group, http://tse.com.pl

Video production: NEWMOTION Studios, http://newmotion.pl Lighting: Adam Tyszka Choreography: Monika Moskwa Performers: Małgorzata Ostrowska, Oddział Zamknięty, Norbi, Grzegorz Hyży, Czadoman, Sound'n'Grace (featuring Filip Lato) Number of participants: approx. 26,000

VOLKSWAGEN POZNAŃ Established in 1993, over the course of 25 years the company evolved from a relatively small car assembly shop (initially employing 69 people) into a highly professional automotive manufacturing plant. Today, it has four production facilities in three different locations (Poznań, Swarzędz and Września). Last year Volkswagen Poznań staff produced close to 240,000 light commercial vehicles (Caddy, Caddy Maxi, Transporter T6 and Crafter), Poland’s second best result. In addition, a Poznań-based foundry is operating since 1996 and annually manufactures close to 4.6 million castings. In turn, VW Crafter and MAN TGE models have been assembled in Września since 2016. Since its launch Volkswagen Poznań invested close to 2 billion EUR in the discussed plants. This and next year the planned investments are expected to add another 500 million EUR to this impressive figure. The company provides work for approx. 11,000 people, making it the largest employer in the region of Wielkopolska.

13 THINK MICE

Photo: NCF Event (3)

THINK EVENT

site. “Until we actually entered the stadium, only a few days before the event, our operations were purely theoretical and took place via plans, mock ups and calculations. Afterwards, we had to quickly find out if all that I have come up with would actually work in practice”, explains Maciej Sobkowiak. Suspending the first section of projectors, projection rehearsals and appropriate lighting adjustments (Adam Tyszka was in charge of the latter) were the most important. After the whole system was calibrated, before the rehearsals, it turned out that two out of 32 projectors were not working due to damaged power supply units. “We had two back-ups onsite, but could not simply replace the projectors (which were already compounded, four in each assembly block) as our whole calibration would, to put it bluntly, crash with the slightest movement”, describes Łukasz Kubiak.

“To solve this problem, new projectors had to be installed in entirely new random positions and properly synchronised with the rest of the image. Only the sophisticated features of the Disguise media server and the experience of our producers made it happen. Without solutions available in the media server, such as advanced features of point tracking, automatic calibration, angle correction and dynamic image blends, we would not be able to so quickly and effectively combine and calibrate the image anew. Also our experience in the production of major technologically-complex events proved to be a great asset at this time”, adds Kubiak.

Still, technology is not everything. The video projection of the multimedia show was closely connected with choreography – it was complemented with more than 100 dancers and 10 Volkswagen vehicles (both vintage and

latest models). “Choreography was prepared

by Monika Moskwa, with whom I have been working for more than 10 years”, says Maciej Sobkowiak. As the dancers could not practice in the stadium (as a result of other events discussed above and the fact that the pitch had to remain intact), all the necessary rehearsals were conducted in standard gyms.

“From the very outset I knew that the greatest challenge would involve holding only one rehearsal once the stadium’s turf was all set. By its very definition, this seemed like mission impossible. It eventually worked only because I got my finest partners involved in the project’s arrangements. Kudos to Kasia Boszko and Monika Moskwa”, sums up Maciej Sobkowiak.

Organisers themselves admit that this was the largest event to be ever staged in Poland.

Michał Kalarus

ABOUT THE EVENT

14 THINK MICE

The lavish 25th jubilee of Volkswagen Poznań successfully accomplished its objective of being well-remembered by all invited guests. The main items on the event’s agenda involved a multimedia show and concerts of top Polish artists, whose repertoire covered a selection of songs from the last 25 years (vintage classics to latest chart hits). While names of the acts in question (Małgorzata Ostrowska, Oddział Zamknięty, Norbi, Grzegorz Hyży, Czadoman and Sound'n'Grace featuring Filip Lato) were announced long before the event, the multimedia show remained shrouded in mystery until the very end. In other words, it was the musical selection that mostly attracted guests to the Miejski Stadium in Poznań.

This was a deliberation action on the part of the organisers, who thus paved the way for the big surprise once all lights went off in the stadium and the proper show started stunning the spectators. In a single moment the centrally-located round stage (enabling the audience to easily see the image from each part of the stands) was transformed into an island around which extraordinary things started to happen. The 23-minute show began with a big bang meaning to symbolise the creation of the universe. Then earth appeared, followed by the first tribes and the

evolution of mankind. Some time later the scenario reached the times of industrial revolution and the emergence of first factories. As you might image, this aspect made it possible to make a smooth transition to the history and success of Volkswagen. Animated videos were displayed on a projection screen of 6,000 m2 set above the pitch. The sheer size of the screen, which took up almost the entire playing field, multiplied the “wow effect”. Moreover, the choreography of dancers was designed in such a way as to match the displayed images. The dancers were following lights, thus creating an impression that they are actually creating and changing the projection. The audience particularly cheered the screen “appearance” of roads, with actual Volkswagen cars driving along - both latest models and their vintage counterparts. The whole show received a thunderous ovation. After a brief official section (including a speech of Jens Ocksen, CEO of Volkswagen Poznań, and a presentation of VW cars manufactured in Poland), the time came for concerts of top Polish pop music groups. This part was also accompanied by one-of-a-kind animated videos, with the majority of musicians driven to the stage by… Volkswagens.

PERFECT MICE VENUE in the heart of Poland Diverse nature and architecture, convenient setting in the centre of Europe and an extensive cultural offer annually attract to Poland millions of tourists from all over the world. The MICE industry is also discovering the huge advantages of this destination. Centrum Kulturalno-Kongresowe Jordanki (Jordanki Cultural and Convention Centre) is among the most noteworthy venues launched in recent years. It is located in Toruń, a city boasting a friendly attitude to specialists in the meetings industry, congresses, trade fairs and authors of cultural events.

Centrum Kulturalno-Kongresowe Jordanki is a mixed-use venue set in the very heart of Toruń, a major economic, cultural, scientific, academic and tourist centre. The local Old Town was included on the UNESCO World Heritage List in 1997.

Each year the city is visited by 1.6 million tourists from Poland and abroad. Visitors are drawn by world-renowned cultural and sport events.

Convenient location should be mentioned among the more important aspects of Toruń. The near-by A1 highway is the main link between nor-

thern and southern regions of the country. Proximity of the international airport in Bydgoszcz (50 km) is also an unquestionable advantage.

Designed by Spanish architect Fernando Menis, the building’s brick interiors refer to the adjacent Old Town. The oft-awarded venue was, i.a. already named one of National Geographic’s 7 New Wonders of Poland. In addition, it received an award for the „best cultural project” presented at the 2010 World Architecture Festival in Barcelona. Modern solutions in the field of

acoustics and auditorium layout make the centre an excellent venue for organisers of all types of meetings, both major cultural events, congresses, conferences and trade shows, as well as their more intimate MICE counterparts.

In the nearest vicinity of the venue you will find all the largest four-star hotels, restaurants, cafes and stores.

Get in touch with the Jordanki Cultural and Convention Centre to explore its architecture and technical capabilities.

FOR MORE INFORMATION VISIT US AT WWW.JORDANKI.TORUN.PL OR CONTACT US DIRECTLY: KAROLINA SZCZEPANOWSKA Head of the department for cultural events, concerts and shows Tel. +48 516 278 017 k.szczepanowska@jordanki.torun.pl

DOMINIKA NOWICKA Event manager - conferences, congresses and corporate events Tel. +48 516 277 766 mice@jordanki.torun.pl

MACIEJ TREICHEL Space rental specialist - rental of conference rooms, training sessions, direct sales Tel. +48 516 277 832 m.treichel@jordanki.torun.pl

15 THINK MICE

THINK INCENTIVE

SOUTHEAST ASIA: WHAT’S NEW FOR MICE? DESTINATIONS THAT REMAIN RELATIVELY UNEXPLORED, CONTINUOUSLY EXPANDED HOTEL AND CONFERENCE INFRASTRUCTURE, NEW AIRPORTS AND INTENSIVE PROMOTIONAL OPERATIONS - THESE ARE SOME OF THE NEW FEATURES AWAITING ORGANISERS AND BUSINESS CLIENTS VISITING SOUTHEAST ASIA. LET US TAKE A CLOSER LOOK AT THEM. Southeast Asia has virtually always been popular among incentive travel organisers.

Excellent weather, delicious cuisine, highly diverse local destinations and a wide range of highlights making it possible to build noteworthy programmes are among its trademarks. More than anything else, we should mention the highly attractive ratio between prices and the quality of provided services.

A TEMPTING PROPOSAL Southeast Asia is frequently described as “an exotic experience at a good price” and owes this status mostly to two components. First, it is the relatively inexpensive air travel rates (in comparison with Africa or South America, not to even mention Australia). Second, it is the highly attractive hotel rates. As regards airline ticket prices, North America (and the United

States in particular) can sometimes compete with Asia, but in the category of hotels the discussed region does not have many rivals. “In Asia you will found truly magnificent and unique hotels at very affordable prices. In other parts of the world it is virtually impossible”, admits Magdalena Tupikowska, Telco Key Account Manager at Motorola (Lenovo Polska).

Obviously, the hotel service quality differs between particular countries (some organisers draw attention to, e.g. the issues they faced in Vietnam, while Myanmar also continues to be a rather demanding destination), but it is safe to say that it usually represents a high and satisfying level.

NO SHORTAGE OF NEW FEATURES

time now, nothing suggests that countries from the region in question will soon fall out favour. The great variety of destinations and highlights make it a constantly popular option. Still, organisers are always on the lookout for brand-new inspirations to awe the participants of arranged trips. Fortunately, new features are in abundance here, similarly to activities undertaken by local governments wishing to create further incentives for potential clients to pick this particular region.

Below, you will find a short list of key news items - investment announcements, marketing plans and the latest intriguing news bytes from Southeast Asia as discussed at this year’s edition of IT&CMA in Bangkok. Staged in late September, the event is covered in more detail on p. 10 of this THINK MICE issue.

Despite the fact that many corporate trips have been heading to Southeast Asia for a long

Photo: Fotolia (2)

THAILAND: NEW STRATEGY OF TCEB

16 THINK MICE

In mid-September Thailand Convention & Exhibitions Bureau (TCEB) launched the “Thailand REDEFINE Your Business Events” campaign, which assigns separate strategic plans to each of the key MICE industry segments. In the category of corporate meetings and incentive trips (M-meetings, I-incentives) a decision was made to focus on Asian clients as their main target group. The main objective for conferences and congresses (C-conferences) will involve enhancing Thailand’s competitive advantage by offering clients access to factual background. Finally, the so-called 360-degree support will be provided for exhibitions (E-exhibitions), mostly consisting of financial incentive programmes intended to contribute to increasing the sales of exhibition space and the numbers of visitors.

Michał Kalarus

THINK INCENTIVE

Photo: Fotolia (6)

INDONESIA: 10 NEW BALI The “10 new Bali” programme announced by the Indonesian government focuses on creating a strategy aimed at recreating the phenomenon of Bali, the island that continues to be Indonesia’s undisputable tourist favourite. The project shall encompass ten other destinations located throughout the country: the area of Lake Toba in North Sumatra, the Tanjung Kelayang beaches on Belitung Island, the Tanjung Lesung beaches in the far-west part of Java, the Seribu islands (Kepulauan Seribu) in the area of Jakarta, the Borobudur Buddhist temple on Java, the Bromo-Tengger-Semeru National

Park, also on Java, the area of Mandalika in the West Nusa Tenggara province, the town of Labuan Bajo, the archipelago of Wakatobi islands, as well as the island of Morotai. In addition to promotional operations, the undertaken activities mostly relate to infrastructural investments - in hotel and gastronomic facilities, expanding local roads and modernizing airports. The project’s costs range from 1.5 to even 4 billion USD for each of the listed destinations, while the campaign’s first effects should be visible already in late 2019.

TAIWAN/MACAU: SMALLER DOES NOT MEAN LESS IMPORTANT Three brand-new conference and congress centres will be launched in Taiwan – in Tainan (2021), Taizhong (Shuinan International Convention & Exhibition Center, 2022) and Taoyuan (2023). Next year will also the see the completed construction of the second arena of the capital’s Taipei Nangang Exhibition Center. In addition, the island boasts an operating and continuously improved Best Rewards Program that offers a system of incentives and bonuses for meeting organisers, who decide to bring their events to Taiwan (e.g. financial support and assistance in staging site inspections, souvenirs for participants, VIP souvenirs for organisers, city tours, public transit tickets,

welcome letters and banners). Macau is also making heavy investments in business tourism. In the next two years, by 2020, several hotels will join its portfolio, together capable of adding more than 3,000 new rooms to the current number of approx. 37,000 rooms available in venues of all categories. Finally, world’s longest bridge of 55 km connects Hong Kong to Macau and the mainland Chinese city of Zhuhai. It was opened this year and is expected to boost the numbers of business tourists visiting Macau. In a decisively tourist-friendly maneuver, the new sea-crossing will reduce the time spent on travelling from the Hong Kong airport to about 30 minutes.

PHILIPPINES: INVESTMENT BOOM Many of the major infrastructure-centred investments currently being implemented in the Philippines directly affect the country’s perception as an attractive country among business tourists. Still this month an international airport is expected to launch on the tiny island of Panglao.

The grand opening of a second terminal in the Mactan-Cebu International Airport, located close to the city of Lapu-Lapu (Mactan island), took place in July. The airport in Davao (Mindanao island) is also expected to be expanded, while a new passenger terminal in the Diosdado Macapagal airport in Angeles will welcome first passengers in 2020. Furthermore, only a few weeks ago the government announced the plans of building an airport in Bula-

can, north of Manila. MICE travellers will certainly be interested by the fact that in the coming years the Philippines shall witness the opening of 25 new high-class hotels (four-- and five-stars) capable of offering more than 7,000 rooms. Importantly, more than half of the discussed rooms (as many as 3,700 to be exact) will be available by the end of this year. While most of the discussed hotels will be set close to Manila (i. a. The Westin Manila Sonata Palace, Novotel Suites Manila, Seda Suites, Seda Bay Area), many investments are also being implemented in the area of the city of Sebu, an island of the same name, and the neighbouring small island of Mactan (i. a. Sheraton Mactan Hotel, Seda Central Bloc, Dusit Thani Mactan Cebu Resort).

MALAYSIA: PROMOTION IN EUROPE AND NEW PLACES Representatives of Malaysia Convention & Exhibition Bureau (MyCEB) announced their intentions to make Malaysia more recognizable in Europe. For this purpose the bureau has already established cooperation with a local tourist organization (Tourism Malaysia), the Ministry of Tourism and several cultural institutions. In the nearest future Malaysians will intensify their promotional enterprises by, i.a. participating in industry trade fairs (Malaysia will act as the patron country of next year’s edition of ITB Berlin travel trade show). In addition, the country also decided to showcase a relatively new and up-to-now relatively unknown destination.

The Desaru coast, located far in Malaysia’s south-east, is the place in question. Among its key advantages, mention is due to the setting - only a 1.5 h drive from Singapore. In recent years considerable funds were invested in the expansion of Desaru’s hotel and conference infrastructure (including Malaysia’s first Hard Rock Hotel). The Desaru Coast Adventure Waterpark, also hosting MICE events, was opened in late July. Successive upscale hotels will soon be joining this list, i.a. The Westin Desaru Coast Resort or Anantara Desaru Coast Resort & Villa, which will feature Desaru Coast Conference Centre (capacity of 1,000 participants).

17 THINK MICE

THINK INCENTIVE

FAMILY INCENTIVES GAIN MOMENTUM

Representatives of Maritz Travel, a U. S. company specializing in sales, marketing and research on incentive programmes and sales support, noticed some time ago that so-called family-friendly incentive travel is becoming an intriguing alternative for a group of clients.

Their Family-Friendly Incentive Travel study mentions the fact that participants thus can spend quality family time, the amount of which is often already limited by multiple work-related responsibilities. Elliss Stevens, Head of Business Development and Incentives at the UK-based Open Smoke agency, explains that a considerable added value for organizers of such travels consists of building a positive public relations image. Companies arranging trips with families are perceived by potential incentive beneficiaries as friendly and caring about not only the business side of things, but also their private life. This has a positive impact on i.a. the effectiveness of hiring new employees.

THE AGENCY PERSPECTIVE

18 THINK MICE

In the Western world family incentives might not dominate, but still are a regular affair. “We usually prepare programmes for 4090 participants - members of a given team, without accompanying persons. They are intended as a reward for impressive results or other accomplishments. From time to time more exclusive trips are also staged for smaller groups of max. 20 participants. In this case family members are welcome to join us”, admits Elliss Stevens. The Polish market also features agencies that already a long time ago introduced business travel with families.

Photo: Fotolia

WHILE INCENTIVE TRAVELS ATTENDED BY ACCOMPANYING PERSONS ARE NOT A NOVELTY, FOR MANY YEARS THEY CONSTITUTED ONLY A MARGINAL SHARE OF ALL PROJECTS. TODAY THEY ARE BECOMING INCREASINGLY POPULAR AS THE CONCEPT OF WORK-LIFE BALANCE RISES TO PROMINENCE.

Among them, BFC has launched the concept 20 years ago. “The BFC Club we are running has for 25 years been specializing in family trips for individual clients. In other words, offering a proven product to our business clients was simply the natural thing to do. We often apply the Together but Apart formula we devised and which consists of developing two parallel programmes for children and adults.

It offers participants an option of more flexible time arrangements and works perfectly in the case of, i.a. skiing holidays”, assures Łukasz Adamowicz, Vice President of the BFC Group and Vice President of Incentive Travel Organisers Association.

As in the West, the fact that the discussed travels are arranged does not mean that there are many of them, at least for the time being.

“True, we do implement incentives with the

client inviting his clients, trade partners, employees, etc. all with accompanying persons, but this category makes up a small percentage of all inquiries and projects. Nevertheless, I believe that the need for market flexibility and market niche benefits will boost its further development in our country”, explains Magda Szczypierowska, Managing Director with MWM Group. At present, the most frequently applied solution has accompanying persons invited to business trips connected with attending conferences and congresses. “For more than a decade we have been staging trips to international congresses, mostly legal and medical. Each group includes spouses accompanying some participants.

In certain cases they travelled with us so many times that we have already learnt their habits and expectations. This way it is much easier to

THINK INCENTIVE develop an appropriate offer”, notes Majka Szura, General Manager and co-owner of Polka Travel.

WHAT DO CLIENTS THINK ABOUT THIS? What is the clients’ perspective on this trend?

“Personally I am a big fan of family travels.

This is the reason why, whenever possible, I try to implement incentive travel-related projects in the discussed way – so that invited guests can bring along their closest family members”, explains Renata Taberska, Marketing Manager at the Department of Marketing and PR with Warta S.A. Insurance and Reinsurance Company. Several years ago Warta held a series of international trips under the name of “Culture worth exploring”, each lasting several days. Travels, mostly to a select European capital, were combined with an intriguing cultural agenda. “The list of participants included our business partners with their spouses. The concept received positive feedback and the trips themselves were hugely popular”, says Renata Taberska.

As seen by Agnieszka Suliborska, Event Services Procurement Manager at the Polpharma Group, the validity of staging family-friendly incentives should be assessed from the perspective of the market, in which the discussed trips are held. For example, in Western Europe travels of this kind mostly exclude sales representatives. This is a group of people that work a lot, usually have children, and each day, dusk till dawn, have to juggle business and family responsibilities. “As a result, it makes sense to invite them to a trip that they can attend all by themselves. This will enable them to forget about everything for several days, switch off and relax. Naturally, it is happening at the expense of time spent with families, but we should keep in mind that, for example, in Poland employees are entitled to an annual leave of 20 or 26 days. Besides, their financial condition makes it possible to organize family trips on their own”, analyses Suliborska.

Things are highly different in other parts of the world, including developing countries (i.a. in Asia or North Africa), where family ties are very strong and people often seek employment only to support siblings, cousins, not to

mention children. “Offering an opportunity to take their closest family members on an incentive trip is thus treated as the greatest reward possible and constitutes one of the strongest incentive tools. As a result, it makes a lot of sense to stage family incentives, which work well in practice. Mention is also due to visa issues.

Without the support of major companies and corporations inviting participants, they probably would not be able to obtain visas required to travel to many countries. Finally, they simply would not be able to afford travelling because of expensive air rates”, adds Agnieszka Suliborska.

SOME HELPFUL HINTS Ultimately, both clients and organisers emphasise that the point of taking one’s “significant other” or an entire family to a corporate trip depends on the overall objective set by the client. If the focus is on team building, strengthening relations between team members or building employee loyalty, then the presence of accompanying persons can actually become an obstacle of sorts. The same holds true for training trips. „When accompanying persons are involved in the travels we arrange, a smaller interest is usually observed in integrating with other participants, including our client.

As a result, such trip loses some of the business relevance that can be accomplished by not including accompanying persons on the guest list”, comments Magda Szczypierowska of MWP Group.

On the other hand, the situation is slightly different in the field of strictly reward-oriented trips. „I believe that in this case the presence of family members is required. This is simply what our guests are expecting. A good example is provided by a competition I arranged some time ago for sales representatives. After the results were announced, we asked victors if they would like to go together on an upscale incentive trip or rather get a voucher that would allow them to select a family trip from a travel bureau. Everyone opted for the second option”, says Renata Taberska.

AGENDA IS MOST IMPORTANT A component that you absolutely must pay attention to involves preparing the right agenda for a family-friendly incentive travel.

Łukasz Adamowicz emphasises that the trip should maintain a unique character (rather than simply act as free vacations), but be developed in such a way as to combine achieving the client’s business objectives with typical family highlights. “Compared to situations when they travel alone, participants tend to have a more personal approach to family trips.

They want to make sure that their families are offered a comfortable experience”, explains Adamowicz. Eligibility rules are also crucial. „When inviting one accompanying person, he or she should not be under 16 years of age.

We want accompanying persons to be self-sufficient and be able to take care of themselves when, for example, informative meetings are staged for participants”, explains Agnieszka Suliborska.

When employees or business partners are taking part in meetings or training sessions, keeping accompanying persons busy is usually a welcome feature. “There are always several options available, bound to match everyone’s interests – from shopping to competitive sports.

We individually arrange the agenda with each accompanying person. This is a highly meticulous task as often everyone is interested in a different leisure time activity. I remember this one trip to Mexico, back in 2014, when the congress organizer spontaneously and somewhat carelessly kept changing the agenda. Making sure that the programme for accompanying persons (approx. 30% of a group of several hundred participants) matches all the updates was enormously challenging. While the situation was highly stressful, our efforts were ultimately successful”, says Majka Szura.

WHO IS PAYING? Settlements and payments for incentive travels that can be attended by accompanying persons can assume highly different forms.

As a rule, they are subject to individual arrangements. Sometimes everything is funded by the client, but a much more frequent practice involves accompanying persons paying for the stay on their own (preferential rates rather than the full amount). A popular solution has accompanying persons paying for the flight and accommodation, while all other onsite highlights are funded.

Michał Kalarus

19 THINK MICE

THINK VENUE – PROMOTION

TAURON ARENA KRAKÓW IN THE FOUR YEARS SINCE ITS OPENING IN 2014, TAURON ARENA KRAKÓW BECAME THE CULTURAL, SPORT AND BUSINESS CALLING CARD OF THE CITY. POLAND’S LARGEST SPORT AND ENTERTAINMENT ARENA - AND ONE OF THE LARGEST VENUES OF THIS KIND IN EUROPE - ATTRACTS EVENTS OF INTERNATIONAL RENOWN, ALSO CONNECTED WITH THE MEETINGS INDUSTRY.

20 THINK MICE

Located four kilometres from the Main Market Square TAURON Arena Kraków has already hosted several hundreds of various events participated by more than 2.7 million guests. The list spans from major sport and cultural events (concerts, festivals, musicals, film screenings, circus shows, ice shows) to their counterparts matching the definition of the MICE industry (conferences, congresses, trade fairs, training sessions, corporate events).

According to Jacek Majchrowski, Mayor of Kraków, this feature of the venue is what considerably boosted the competitive edge of the whole city as a centre of major domestic and international events.

BENEFITS FOR THE ENTIRE CITY Only last year TAURON Arena Kraków played host to close to 160 events that attracted almost 600,000 people. More than 90 of them were staged in the Main Arena and the remaining ones in the Small Hall, conference rooms and the area surrounding the Arena.

This is the best proof that the multifunctional character of the complex makes it the perfect match for arranging virtually all types of events. Furthermore, the sheer number of events staged at TAURON Arena Kraków has obviously a positive impact on the city’s economy in general and the performance of the

local hospitality industry. This trend is confirmed by reports prepared by BBS Obserwator at the request of Agencja Rozwoju Miasta S.A. (City Development Agency), the manager of TAURON Arena Kraków. According to the second edition of research conducted between January and July 2018, non-residents constituted 52% of all guests participating in the Arena’s events. More than 14% of them booked accommodation in the city with the average costs of their overnight stay amounting to 405 PLN. Close to 24% of arrivals also took advantage of the diverse offer of the city’s highlights (sport and cultural events, restaurants, shopping, sightseeing, etc.), allocating an average of

388 PLN for these purposes. “In other words, during the six months under scrutiny, participants of events hosted by TAURON Arena Kraków spent approx. 16.5 million PLN on accommodation in the city and approx. 27.5 million PLN on additional highlights. Their total expenditure equalled approx. 44 million PLN”, says Jacek Gryzło, Deputy President of the Management Board of Agencja Rozwoju Miasta S.A. “Based on data compiled in the two heretofore editions of the research, we are estimating the economic impact of TAURON Arena Kraków to have reached 292 million PLN since its emergence”, adds Gryzło.

OFFER FOR EVERYONE It is no secret that organisers of MICE events constitute an important group of TAURON Arena Kraków customers. They are encouraged by the venue’s attractive location and infrastructure. The whole complex consists of two halls:

the Main Arena and the Small Hall. Their offer is complemented by two conference rooms and business lounges. In addition, the expansive green areas surrounding the venue in question make it possible to implement open-air events.

Importantly, TAURON Arena Kraków is Poland’s only venue of this kind to be a member of the European Arenas Association (EAA), which brings together Europe’s largest entertainment and sports structures. At present EAA associates 36 arenas representing 22 countries, including London’s The O2 Arena, Berlin’s Mercedes-Benz Arena, Stockholm’s Ericsson Globe and the AccorHotels Arena in Paris. The objective of EAA is to propagate high standards and continuously improve the level of services aimed at arena clients. Guaranteeing that their guests are safe and satisfied with the events they participate in is a top priority for all EAA members, including TAURON Arena Kraków.

Michał Kalarus

MEETING THE MICE SECTOR’S EXPECTATIONS A conversation with Małgorzata Marcińska, President of the Board of Agencja Rozwoju Miasta S.A. (manager of TAURON Arena Kraków) TAURON Arena Kraków is the country ’s largest and most advanced arena.

What are its advantages?

First of all, our venue is distinguished by its capacity - it accommodates a total of 22,000 guests. There are more than 15,000 seats on its stands, while the Main Arena pitch has an additional standing capacity of 9,300. We are the only venue to boast a LED display of 0,5 km on the building’s facade. Event organisers can freely arrange the auditorium, with comfortable backstage facilities for athletes and performers at their disposal, along with extensive multimedia and stage systems. What is more, the great acoustics of the Arena positively impacts the number of organised concerts. Finally, the multipurpose nature of the venue makes it possible to stage events of highly diverse character and scope. The list include sports events - European and world championships; cultural events: concerts, festivals, film screenings, ice shows and all types of events, galas, congresses, banquets, trade events and outdoor meetings.

How important are MICE clients in your strategy?

They represent one of the key segments of our operations. The MICE industry is always looking for the latest solutions and attractive destinations to host events. Our efforts are intended to meet its expectations.

Each of our spaces can be adjusted to the needs of organisers: Main Arena, Small Hall, conference rooms, a VIP zone with 28 lounges, restaurants and the venue’s surrounding premises.

What else will organisers gain by choosing your venue?

First, mention is due to the support of the experienced ARM S.A. team, which always offers its professional assistance. Second, the “package” also includes Kraków, certainly Poland’s most recognisable city in the world. Numerous historical monuments, museums, theatres, sport venues, hundreds of events, extensive network of hospitality venues, the city’s easy and quick access by car, rail and plane - all of these features are of crucial importance. Organisers appreciate cities, which can offer their guests something more than a given event. The impressively diverse portfolio of Kraków makes it the perfect choice.

VENUE’S FUNCTIONALITY AND TECHNICAL PARAMETRES Total space: more than 96,815 m2 MAIN ARENA Space: 58,442 m2 Main pitch area: 4,917 m2 Pitch size: 36x67 m (all-seating capacity) 43x74 m (without the first four rows) 53x93 m (without movable stands) Capacity: max. 20,400 (main pitch and stands) LEVEL 0 (MAIN PITCH) - standing capacity: 9,300 - seating capacity: 2,400 - banquet-style setup: up to 3,000 participants - conference-style setup: up to 3500 participants - trade fair-style setup: up to 230 booths (3x3 m) LEVEL A - movable stands: 3,766 seats - fixed stands: 2,872 seats - disability sector: 104 seats LEVEL B - stands: 983 seats - 561 seats in front of lounges LEVEL C - stands: 6,744 seats SMALL HALL Pitch area: 1,750 m2 Café/foyer space: 842 Pitch size: 38x46 m Capacity: - banquet-style setup: up to 864 participants - conference-style setup: up to 1,300 participants - trade fair-style setup: up to 70 booths (3x3 m) - concerts: up to 1,300 participants

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THINK VENUE – PROMOTION WORLD YOUTH DAY KRAKÓW 2016 Date: 26-31 July 2016 Organiser: Knights of Columbus Number of participants: more than 75,000 Applied spaces: Main Arena, Small Hall, conference rooms, restaurants, foyer, outdoor area

CONFERENCE ROOMS Number of conference rooms: 2 (VIP level) Area: 264 m2 (Western Conference Room), 257 m2; (Eastern Conference Room) Size: 11x24 m each (can be divided into two smaller modules) Capacity: approx. 200 each (theatre-style setup)

In addition, the venue has 28 lounges (area from 23 to 45 m2) available for smaller meetings and training sessions

Event profile: For the World Youth Day TAURON Arena Kraków hosted the international Mercy Centre aimed at English-speaking guests. On 31 July the Main Arena played host to a meeting between Pope Francis and World Youth Day volunteers and organising committee.

Each day more than ten thousand visitors participated in events staged in the venue. While the majority of guests hailed from from the U S., Canada and Australia, there were also pilgrims from Brazil, France, Malta, India, RSA, Nigeria, Ukraine, Poland, Panama, Spain, Argentine and Italy. The Mercy Centre programme focused on conferences and holy masses, also attended by representatives of the episcopates of Australia, Canada and the U.S. In addition, there were addresses delivered by renowned Catholic speakers, discussions on faith and religion, concerts, exhibitions and adorations.

Handling the catering offer prepared with WYD participants in mind, the Arena Catering company daily served dozens of thousands of warm meals and beverages. The World Youth Day is an excellent example of an event fully showcasing the potential of TAURON Arena Kraków, its mixed-use character and the options of simultaneously applying all available spaces. In addition, it demonstrated that a venue usually known for shows and sport events can also be a great place for hosting congresses and religious gatherings on the greatest scale.

MEETUP 2017 & 2018 Date: 9 September 2017, 1 September 2018 Organiser: Gethero Number of participants: approx. 10,000 Applied spaces: Main Arena, foyer, conference rooms

PREMISES SURROUNDING TAURON ARENA KRAKÓW Area intended for outdoor events: 74 a Level A promenades Parking lot: more than 1,300 vehicles; upper outdoor parking lot: 3,700 m2; technical parking lot - 770 m2 CONTACT TAURON Arena Kraków ul. Lema 7, 31-571 Kraków Space rental inquiries: tel.+48 739 455 600 e-mail: wynajem@tauronarenakrakow.pl www.tauronarenakrakow.pl

Event profile: The MeetUp 2017 and MeetUp 2018 events were targeted at Poland’s increasingly expanding YouTube community. Participants gathering at TAURON Arena Kraków had an opportunity to meet their idols and other people fascinated by the YouTube scene. About 100 top Polish YouTubers took part, with

leading content creators additionally acting as the event’s ambassadors, i.a. ReZigiusz, whose YouTube channel boasts more than 3.2 million subscribers, and Izak with an equally impressive number of 1.8 million subscribers.

MeetUp’s programme includes speeches by YouTubers, concerts, discussions, competitions, as well as meetings with special guests. Rafał Sonik, Polish quad rally driver and winner of the Dakar Rally, is among the event’s annual partners.

The main section of MeetUp was held on the pitch of the Main Arena, where, i.a. a stage was set up to accommodate the invited YouTubers. Additional meetings were arranged in conference rooms. The participants also had at their disposal extra highlights prepared by sponsors and event’s partners in special booths located on the Main Arena’s pitch and the venue’s foyer

EVENTS AND CONFERENCES AT TAURON ARENA KRAKÓW Date: 2014-2018 Organisers: Rossmann, Alior Bank, Les Mousquetaires, Shell, Motorola and many others Number of participants: up to 3,500 Applied spaces: Main Arena, Small Hall, conference rooms, VIP lounges, restaurants, foyer

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Event profile: The various spaces of TAURON Arena Kraków each year host numerous conferences, business meetings, banquets and corporate events. The technical potential of the venue enables organisers to arrange the rooms in any way they want. Thanks to animated visuals displayed on special screens the Main Arena has already been successfully transformed into, i.a. the Main Market Square in Kraków. A dance floor, a stage for the main act of the evening and dozens of tables prepared for a banquet for company employees are all becoming increasingly common at TAURON Arena Kraków.

The Small Hall was also subject to similar metamorphoses. Usually associated with sports, on numerous occasions it was transformed into, i.a. a ballroom for high school graduates, a room for corporate events, a press centre for

accredited journalists (e.g. at 2016 European Men’s Handball Championship), as well as in a chapel (for World Youth Day). Corporate events, training sessions and symposia at TAURON Arena Kraków are staged by both small companies and major chains (e.g. Rossmann, Shell, Motorola) or banks (i.a. Alior Bank). Moreover, the Arena played host to trade fairs, conferences and congresses, including Poland’s largest incentive congresses, such as Life Without Limitations 2 featuring Nick Vujicic, the world’s most famous motivational speaker.

THINK DESTINATION

KATOWICE: ALL EYES ON UN CLIMATE SUMMIT We sat down with Mariusz Skiba, Vice-President of Katowice, to discuss the city’s preparations for hosting COP24 and related challenges and costs.

The Ministry of Environment closely cooperates with the Katowice City Hall on preparations for the COP24 climate summit in December. How did you divide your tasks?

The responsibilities of Katowice to a large degree revolve around activities corresponding to the familiarity with the city and its environs. They were defined in an agreement signed on 15 May by Minister of Environment Henryk Kowalczyk and President of Katowice Marcin Krupa. The document in question specifies all operations connected with hosting the climate summit and divides them between the Ministry and the City Hall. Unquestionably one of the most important components, for which we are responsible, involves preparing and implementing a model of organizing public transit for COP24 participants. This is a certain novelty, at least in comparison with the previous summit in Bonn, where the whole region of North Rhine-Westphalia was dealing with the issue in question. This time it rests on the shoulders of Katowice.

This might be a better solution as Silesia features the Municipal Union of Transport of the Upper Silesian Industrial Region. We would also like to take this opportunity to demonstrate that we are following the latest environmental trends both as a city and a country. I am thinking here of electro mobility that recently received a great deal of attention. At present Katowice is adding electric buses to our fleet. Optimally they will be delivered by December so that they could drive COP24 delegates. Simultaneously, we are encouraging the manufacturers of such vehicles to present them during the summit and advertise their offer. We have already sent several inquiries on this matter and received great response. At the same time, there is more to transit organization than buses. The holders of COP24 badges will also be entitled to free tram and train rides. This certainly is going to become an important feature, since the setting of accommodation will make our guests highly scattered.

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Speaking of which… What is your estimate of the number of people that might attend COP24? Is the local hotel infrastructure ready to accept such numbers?

The number of COP24 participants is an issue that we continuously analyse and estimate. Treating the earlier editions as a point of reference, we are also taking into consideration the increased interest inspired by a change of the climate summit’s

character, which made it even more important today than only several years ago. We expect to attract more participants than the climate summits previously staged in Poland. In addition, attendance figures will certainly be boosted by the adoption of the Paris Agreement implementation guidelines, which is planned to take place in the course of COP24. We are suspecting, therefore, that approx. 30,000 guests from all over the world might appear in Katowice. Obviously this does not mean that all of them will be taking part in the conference from start to finish. For example, the so-called top-tier representatives usually do no turn up until the second week of sessions. As a result, we are expecting the number of people simultaneously staying at the summit to be around 12,00013,000. As for hotels, guests will be staying not only in Katowice and its immediate surroundings, but virtually all over the Śląskie voivodeship, even all the way to Małopolskie and Opolskie voivodeships, e.g. in Częstochowa, Bielsko-Biała,

THINK DESTINATION Opole and Kraków. In other words, there should not be any problems with finding a place to stay. Naturally, we would prefer if most of them, whenever possible, stayed in venues in Katowice and the conurbation of Górny Śląsk (Upper Silesia), if only because of transportation logistics. Still, it would be difficult to say for sure which factors are going to be decisive in choosing a place to stay for the night, especially since the distance to host venues is not always considered crucial. While this state of things can be seen as a challenge of sorts, we will make every effort to guarantee free transportation for as many delegates as possible, even if their hotel will be located in a more distant place. For this purpose, we are already in talks with organisations in charge of public transit in other regions, including adjacent voivodeships.

Besides transportation, what else are Katowice authorities responsible for?

Another seminal ingredient involves promotion - both of the city as a potential place for staging similar major events in the future and activities connected with environmental protection. Katowice went through a remarkable transformation. We want to publicise the fact that we are no longer a city of industrial monoculture. We want to show that the entire Górny Śląsk has come a long way in the last ten or so years. This objective generates many additional activities. COP24 is intended to be aimed at not only delegates, but also regular citizens and residents interested in the subject matter at hand. This is why the so-called space for residents will start operating in the Katowice Market Square already in September. A place available for everyone, it will host numerous events with the participation of our local community, including young people from Katowice schools. Mention is also due to a whole bunch of other events, some of which have already been held (e.g. the Forest Family Picnic “Environmental responsibility” or the “Polish path to clean environment” pre-COP24 conference). In addition, we are working on various “field” operations. Despite the fact that Poland’s weather conditions in December are not particularly tourist-friendly, we wish to encourage our guests to also venture outside of Katowice. This is why we shall prepare an offer of trips to the region’s most intriguing must-sees. Missing out on the Guido Mine, the Black Trout Adit, the Tyskie Książęce Breweries, the Water Park in Tychy, which boasts energy self-sufficiency based on biogas, as well as many other venues set along the Industrial Monuments Route would simply be unthinkable.

When did all these preparations begin? What else remains to be done?

The decision about Katowice hosting COP24 was made in June. Virtually immediately after receiving this information we have set up a certain organizational structure. The established teams were responsible for, i.a. security, media and communication issues, voluntary work, as well as the event’s topical agenda. Thus began the preparations, whose milestones included the agreement concluded with the Ministry of Environment in May and the special act on organizing the UN climate summit that was passed in January and gave us a mandate to implement a wide range of activities. Of course, there are many things that remain to be done. First of all, we need to arrange the area in the Culture Zone, which will host the sessions in question.

After all, COP24 is an enormous event that is not only based on fixed infrastructure, such as Spodek or ICC. Additional temporary venues will also have to be set up, just as it was the case in Bonn or Marrakesh. An operator selected by the Ministry will be in charge of this area (Poznań International Fair - Ed.). While the challenges are numerous, let us keep in mind that Katowice is well-experienced in staging major and seminal events. The European Economic Congress is a great example. Thousands of people visited us and all of them left satisfied. I believe that things will be the same in the case of COP24. As a matter of fact, I can say that in Katowice all eyes are already on the climate summit.

What expenses will the city incur in relation to these arrangements?

Katowice participates in the costs of organizing COP24. The city’s budget earmarks about 12 million PLN for this purpose.

Due to the events’ character, we also hope to acquire some funding from the Voivodeship Fund of Environmental Protection. In addition, we are making efforts to establish partnership cooperation with other institutions or companies.

The abovementioned plan that has the producers of electric buses making their vehicles available for the purposes of COP24 is a good example of this approach.

How can staging an event of such great scope as COP24 affect the growth of business tourism in Katowice? What benefits are you counting on?

I believe that COP24 will strongly reinforce our position as a centre of business tourism. After all, we are talking here about a one-of-a-kind event that will unquestionably capture the whole world’s attention. Delegates from close to 200 countries will attend. It seldom happens that a non-capital becomes a matter of interest for so many embassies and consulates. Their representatives visit us regularly to ask how the preparations are going. It is important from the viewpoint of services aimed at delegations representing their homelands, which will attend the summit. At the same time, this is also an excellent advertisement for Katowice as a destination hosting large-scale and vital events. An opportunity to showcase the city and its infrastructure available for congresses, conferences and transportation. Furthermore, an event of this sort is a magnet for investors. For example, the hotel industry wants to build new venues in Katowice. This is certainly good news, as there is still a shortage of accommodations in our city. An increase in their numbers will make the potential of Katowice even more attractive for MICE customers.

Interview by Michał Kalarus

MARIUSZ SKIBA Graduate of political sciences at the University of Silesia, management and production engineering at the Silesian University of Technology, and post-graduate studies on European project management. Former employee of the City Hall of Katowice and Marshal’s Office of the Silesian Voivodeship. Before being appointed to the office of Katowice’s Vice-President, he held the position of councilor in 2010-2014. Skiba was also involved in the Committees of Budget and Infrastructure and Environment, which he presided since 2013. In his spare time, he likes to play basketball and jog. Born and raised in Katowice, where he lives up to this day.

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THINK DESTINATION

ZAGREB - WELL WORTH A VISIT When did the Zagreb authorities become interested in business tourism?

The MICE industry in Zagreb has a long history, dating back to the 1970s. This is when a special department, a convention bureau, was set up as part of the local tourist organization. As one of the largest cities in the region, Zagreb has virtually always attracted congresses and conferences plus it is often visited by people travelling for business. In 1992, when Croatia became independent following the breakup of Yugoslavia, we continued this tradition of promoting business tourism and established our organization, Zagreb Tourist Board & Convention Bureau.

What areas do you focus your activities on?

While we promote our city in different ways by applying many channels, we attach greatest importance to live and experiential marketing [a strategy aimed at generating unique sensations and experiences among its target group – Ed.). As a result, Zagreb Tourist Board & Convention Bureau is present at all the key MICE industry-centred European trade fairs, such as IMEX in Frankfurt and IBTM World in Barcelona. We are perfectly aware of the fact that the most effective method of securing clients involves having them visit a given destination. This is why we make efforts to showcase Zagreb to organisers of events, conferences, congresses and incentive trips. We simply invite them to pay us a visit.

What can Zagreb offer business tourists? Why should they pick this particular city?

Zagreb has numerous assets. First, it is increasingly easy to reach. With the local airport being expanded with a new terminal, the number of flights is continuously increasing. The city centre is compact, which makes it easy to sightsee, even if you are only passing. This works well for short events and incentive trips. In addition, the majority of hotels and tourist highlights, as well as noteworthy event-friendly venues, are set close to each other and are easily accessible within a short walking distance. Importantly, Zagreb is also a place where you can feel truly safe, virtually at all times, night and day. Hospitable residents and a pleasant ambience combined with highquality services at the disposal of business guests are precisely what make Zagreb worth visiting.

What challenges is the Croatian capital facing today?

One of the largest problems of Zagreb is the lack of a major conference centre. I am talking here about a place that would be capable of hosting events for more than 2,000 participants. We are aware of the fact that this type of venue is needed to draw more international congresses and conferences and start securing the largest events. The project of a conference centre has already been included on the list of investments of strategic importance for the city’s development. We believe that it will be implemented in the next years to come.

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How does Zagreb Tourist Board & Convention Bureau cooperate with private companies creating the local MICE industry?

The public sector is responsible for many areas strictly connected with the meetings industry,

Photo: Dražen Lapić/Zagreb Tourist Board

Iwona Borowska sat down with Martina Bienenfeld, CEO of Zagreb Tourist Board & Convention Bureau, to discuss the advantages of Zagreb and methods of its effective promotion.

noticeably making the experience of visiting guests more comfortable (such as municipal infrastructure, including roads, parking lots, business centres, etc.). Zagreb authorities are deeply involved in related projects.

As for relations between Zagreb Tourist Board and the private sector – we closely cooperate with each other in all fields connected with the promotion of business tourism. A good example is provided by study tours arranged for meeting organisers. We also support the involvement of local companies in trade fairs and other events intended to advertise Zagreb as an attractive destination for events, conferences or incentive trips. In consequence, we are involved in all types of initiatives inspired by the private sector.

What type of MICE events is staged most often in Zagreb?

Since Zagreb is a capital, it naturally attracts the majority of congresses, conferences and other seminal business events staged in Croatia.

Recently, as a result of additional promotion and development of the incentive offer, it also became a popular place for this kind of trips. We launch our own events as an attempt to encourage potential guests to visit us. Almost all year round there is always something happening here. Advent, staged at the turn of December, is a great example. For three years in a row, the event won the prestigious award for Europe’s best Christmas fair and in the process became an exceptionally popular tourist highlight, not only for individual guests, but also among corporate travellers.

The excellent performance of the Croatian team in this year’s World Cup in Russia was also probably a good advertisement…

Certainly. On the whole, the 2018 FIFA World Cup did a lot to promote the entire Croatia. Millions of people started to search for information about our country and wanted to visit us. While it is hard to precisely assess the impact of this phenomenon for the meetings industry, there is no doubt that it was positive.

Iwona Borowska

MuzeuM Śląskie SPACE FOR YOUR PROJECT located in the very heart of upper silesian conurbation, Muzeum Śląskie, owing to its scale and innovational formula, fits into the idea of dynamic, spatial, economic and cultural development. Together with the international Congress Centre and Polish National Radio symphony Orchestra, it comprises the katowice Culture zone, the centre of the city’s cultural life. The zone is located at the kraków–Wrocław main arterial road.

The modern glass forms illuminating underground museum exhibitions, harmonized with the elements of post-industrial history of this place – the renovated historic red brick bulidings and the shaft headframe – create the exceptional flavour of this place. The sensory garden complements the whole. The beauty and uniqueness of the place have been frequently appreciated by the public, which was expressed through awards in many prestigious competitions.

The underground spaces of Muzeum Śląskie comprise 6 thousand square metres of modernly designed exhibition spaces in which works of art significant for the world heritage are presented, as well as exhibitions in the scope of history and tradition of the region, archeology and ethnology,

scenography and design. Our guests have a museum shop at their disposal, as well as the possibility to avail themselves in cafeteria and restaurant.

Muzeum Śląskie offers 10 modern, varied in size, air-conditioned conference and educational rooms, designed with various groups of users in mind.

The largest and the most representational conference and event space is located at the lowest level of the museum. Comprising 332 seats in the audinence layout, the auditorium is fitted with modern image presentation, sound and lighting systems, as well as facilities for simultaneous translation including two booths. A foyer is adjacent to the auditorium, of almost 500 m2 in area, equipped with a catering counter and complete kitchen facilities.

Muzeum Śląskie, katowice Contact: Audience and Event Organization Department ul. T. Dobrowolskiego 1, 40-205 Katowice t: +48 32 213 08 57, +48 32 213 08 54 e: wynajmy@muzeumslaskie.pl www.muzeumslaskie.pl

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Photo: Departament

PROFILE

EVERY DAY IS A BRAND NEW STORY THE BUSINESS CAREER OF PAVEL NEDOSTOEV IS SOMEWHAT SIMILAR TO A PUZZLE GAME. WHILE IN THE BEGINNING THERE WAS CHAOS, AT SOME POINT ALL THE VARIOUS PIECES STARTED FORMING A COHERENT WHOLE, CREATING THE PICTURE OF A MAN WELL PREPARED TO MANAGE AN EVENT AGENCY.

Our profile feature focuses on a representative of Russia. It goes without saying that this is a truly intriguing country and the same holds true for its event industry. The fact that Russians are more than willing to participate in all kinds of events - whether organised to fete holidays, state ceremonies or staged by companies - is certainly beneficial for agencies operating in the discussed market. Celebrating significant events is simply a part of the national tradition. As a result, clients are aware of the value of events and perceive them as a tool that can contribute expected benefits. Furthermore, they appreciate all types of innovations and new technologies, even those only launched onto the market. In other words, agencies usually get the green light for experimenting and introducing the most diverse innovations. “This trend also affects the seemingly ordinary, standard events. Clients mostly care about the fitting quality of programmes so that they could be proud of them”, explains Pavel Nedostoev.

Comfortable budgets All of this sounds good as long as there is enough money to cover the expenses. Just like in any other country, in Russia too budgets are subject to a thorough analysis. According to Pavel Nedostoev this examination has a multilevel character and is conducted in reference to concrete goals that are expected to be achieved. The list of priority objectives includes at least several examples concerning, i.a. direct communication with current and potential clients and trade partners, the engagement of employees (binding them closer to company) and drawing media attention (the advertising aspect). Based on these assumptions and the related complexity of projects, decisions are made about the levels of budgets allocated for particular events. In the big picture, however, they are quite comfortable, often higher than their Polish and even Western counterparts. Pavel Nedostoev comments that “The more modest examples start at about 50,000 dollars but frequently we are speaking

about much larger amounts, up to a million dollars. There are also projects worth several million dollars, especially when staged in a number of destinations - at home and abroad”.

Artistic upbringing This profile of the attitudes of clients and their budgets paints a picture of Russia as a country offering a considerable range of opportunities for event organisers. Looking at the produced projects - their inventiveness, spectacular character and execution - we can safely say that this precisely is the case as we are dealing with one of the most mature and advanced event markets. On the other hand, people working on the events in question set the bar very high for themselves and must keep their finger on the pulse. Every day they look for inspirations and apply all their creativity to keep surprising clients. Pavel Nedostoev, the owner and brand director of Departament, one of Russia’s top and best-known agencies, is exactly this sort of person. The fact that he is not only a manager, but also an artist, certainly helps him develop original, oneof-a-kind projects. Already as a child (he was born in 1983) he was attending many extracurricular activities connected with the fine arts, theatre, music and even fashion. “I am grateful to my parents for sending me to all these schools and making sure my schedule is well-organised.

They wanted to protect me from going down the wrong path and becoming a hooligan, which might have happened if I spent too much time in the streets” reminiscences Pavel Nedostoev. Even though his days were filled with various duties usually keeping him busy until about 10:00 pm, this lifestyle suited him well. “I actually had a good time. In the end I did become a hooligan, albeit in a slightly different meaning of the word. For example, we started a rock band in the musical school and painted a whole lot of daring and extravagant works in the art school”, he adds with laughter. Naturally, all these experiences had an impact on his further career.

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PROFILE Unintended step in the right direction He did not learn all of this until later. At first, Pavel Nedostoev was not planning to become involved in events. This is understandable considering that at the time the industry was still in its period of infancy.

However, he was not also thinking about broadly defined business or what is interesting from the viewpoint of his interests - about art. He wanted to become a teacher instead and thus enrolled at the Faculty of Economics and Information Technology at the Bryansk State Pedagogical University. This choice is best explained by Pavel himself. “To be honest I was not really thinking too seriously about my future. The decision was somewhat accidental, it was one of those strange things you do when are young”. Some time later a twist of fate forced him to change the university with Nedostoev ending up in Moscow or, to be more specific, at the Faculty of Economics of the Russian State University for the Humanities.

Nedostoev admits that “Things were different over there, more serious” but this did not stop him from not paying much attention to studying. Instead, music and stage performances became his main point of interest.

PAVEL NEDOSTOEV Nevertheless, Nedostoev successfully graduated with a Master of International Business degree.

Owner and brand director of the Moscow-based agency “Even though the choice of my studies was rather Departament. Holds a degree in international business as a unpremeditated, I came to realize how much it graduate of the Faculty of Economics at the Russian State University for the Humanities in Moscow. A former rock helped me with my subsequent business career”, band member and graphic designer creating logotypes, stage acknowledges Nedostoev.

fascinated by Western brands starting with the more ‘standard’ and available examples, such as Pepsi and Fanta, all the way to representatives of top automotive designs, event invitations, and gadgets. Started organizing manufacturing groups. “I found events as a university student and in 2007 founded the this world completely enthralDepartament agency specializing in event marketing activities plus PR and video production. Works with leading ling. I remember that when I was Russian and global brands. Lives in Moscow.

Still, let us focus on the college period for a while. still a student Audi got in touch The life of a musician was nothing like the with me asking to design invitaproverbial bed of roses. It also was not cheap which tions to some major event. I felt is why Pavel had to make money - not only to pay for the instruments, deeply honoured”, reminiscences Nedostoev. Pavel’s big breakthrough but also to support himself. For a talented designer graphic design felt came on the day when he was offered the chance to make an advertisement like the natural next step and Nedostoev began creating logotypes, stage and an invitation to an event celebrating the opening of a new designs and display windows. At first he was doing it for his colleagues Lamborghini showroom in Moscow, connected with the launch of one of and after some time also for companies outside of this network, including the models. “I asked for materials dedicated to the brand and got this great event agencies. He ‘set up’ a team of several members involved in booklet discussing the seven deadly sins of Lamborghini. I adapted this designing invitations for all types of events, souvenirs for their perspective and started working. I wanted to surpass myself, present participants, advertising posters, etc. At this time he also met his future everything the best way I could and simultaneously place emphasis on a business partner – Petr Ivanov. “He was a very extravagant guy, same as highly original, out-there concept. I reached out to people who were me. Both of us were fed up with boring, repetitive events. We wanted to manufacturing paper using traditional methods and vintage machinery bring something new to the table. Let me give you an example. We helped they were literally pressing sawdust and obtaining parchment in the organise many college parties staged at the University. When you are doing process. I used it to paint a car with ink, Renaissance-style, almost like something like this, you can try cramming, let us say, 50 people in one of Leonardo Da Vinci”, he says with a smile. In addition, the final product the small campus rooms. Everyone is dancing, the place is crowded and was made to look appropriately older. Once text and great envelopes were sweaty, but you pull it off, if barely. On the other hand, you can arrange it added, genuine invitations were created. The effect was truly impressive. in a completely different way. Come up with the idea of a private event in a secret venue. Record hints on how to get there on a cassette tape that also acts as an invitation. Sounds better? My friend was usually throwing The story discussed above took place 12 years ago. Since then our this type of parties in a grotto in one of the parks, with everyone wearing protagonist not only designed hundreds of other invitations, but also animal skins. Everything new, unusual and radical was our thing”, admits organised hundreds of events with the Departament agency he founded.

Pavel Nedostoev. As a man born and raised in the U.S.S.R, he was also

Going to business

Spectacular productions

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PROFILE sure that it remained the focus of the mapping beam. The presentation of Hyundai Sonata was distinguished by a slightly different albeit equally original ambience. In this case, the agency decided to compare driving a new Hyundai to playing the piano. Young pianist Nikola Melnikov was asked to compose matching works especially for this occasion and perform them together with a symphony orchestra. The whole enterprise was complemented by a multimedia show. The list of noteworthy projects also includes the launch of Porsche Panamera’s new generation (with the vehicle set on a boxing ring) or test-driving the Subaru XV crossover on a track designed to resemble a human brain (intended to match the model’s “Follow the Mind” advertising slogan). The presented examples are just the tip of the iceberg. “As an event specialist and, predominantly as an artist, doing something new is what I enjoy most. Something that no one has ever attempted before. Every day is a brand-new story. It is all about the moment when we push boundaries - whether by adopting an innovative approach to the subject matter at hand or by applying an entirely new technology. These two aspects often go hand in hand”, adds Pavel Nedostoev.

The Moscow-based launch of Lamborghini Urus is among the more recent examples (February 2018). Developed together with the Sila Sveta agency, the event in question was widely commented both in Russia and abroad. All this publicity is due to an exceptional production applying 3D animation displayed directly on mobile volumetric boards (56 bright triangles) moving on kinetic winches. “The inspirations often come from anywhere. While doing one thing, I get so inspired that I come upon an idea how to implement something entirely different. Naturally, mistakes do happen and things might not be not working as they should be or are below our expectations. The difficult part is to quickly make the necessary corrections and move on. This type of lessons will really teach you a lot”, says Pavel.

Car launches are among the events that enjoy great acclaim in the Russian market. One look into the Departament portfolio will convince you that they constitute a substantial share of all productions. Therefore, it is even more important that the invited guests are each time awed by a brand-new element. This also explains why creativity and originality play such an important role, as demonstrated by numerous examples. More than two years ago, when working on the launch of Audi Q7, the agency headed by Pavel decided to place its bet on the VR technology, for the very first time applied on such a great scale. A hundred spectators simultaneously admired a virtual show with the help of Samsung Gear VR headsets (the #imagineQ7 event was covered back in our 12th issue).

This year, the so-called smart glass was used for the Audi A8 L exhibition at Moscow’s GUM department store opposite Red Square. Milky white at first, it turned entirely transparent if an interested audience member raised his hand and thus momentarily revealed the advertised vehicle.

New technologies also dominated, i.a. the event celebrating the launch of Audi A5 Coupe (“AI vs. You”). Its creative concept was based on developing a mobile projection mapping displayed on a car moving on a 300-metre projection surface. Advanced movement tracking systems synchronised graphics and lighting with the vehicle’s movement, making

International recognition In addition to most spectacular projects, charity events, i.a. of social or educational character, also mean a lot to Pavel. In the last decade Nedostoev have implemented many initiatives centred on regular people. Among the latest examples, the “Personal Affair” educational project is aimed at teachers working with children coping with difficult life situations, including orphanage residents. “We gathered approx. 100 such teachers from all over Russia plus psychologists and instructors working in charity organisations. They spent three days in Kazan sharing their experiences, knowledge, best practices, and new techniques such as, e.g. the fairy tale therapy method. They were learning and saying how much they enjoy voluntary work”, explains Pavel Nedostoev.

Nedostoev’s professionalism translates into successes of the agency he is running, whose projects are often short-listed and received about 35 prestigious awards in domestic and international industry competitions (i.a. Eventex, EuBea Festival, Bizbash Event Style Awards, Autovision Awards, ADCR Awards). “We are carefully observing what is going on in other markets, looking for the dominating trends. Some time ago we also began submitting our projects for international competitions. Initially, we were somewhat surprised by receiving so many awards. However, I believe that they are the best example that we have already accomplished a proper, world-class level”, says Pavel. As most people involved in events, he admits that although everyone should find balance between private life and business, he considers himself lucky as he does not recognise what he is doing as strictly work - it is his passion, his lifestyle. “A dynamic growth is a distinguishing feature of our industry. All the time we have to keep learning and updating our products. As I really enjoy learning about the new solutions, the boundaries between professional duties and a hobby become blurred. All of this affects quality. We are better at certain things and worse at others but at the end of the day we are doing a good job” sums up Pavel Nedostoev.

Michał Kalarus

33 THINK MICE

INSPIRATIONS

BE LIKE SANTANA! Why does hard work pay off?

IT TAKES A GREAT TALENT AND SKILL TO COMBINE PASSION WITH WORK SO THAT IT CREATES AN OASIS OF TRANQUILLITY AND OFFERS A WELL-EARNED BREAK… HOW SHOULD YOU WORK TO ACHIEVE THE ABOVEMENTIONED EFFECTS? SIMPLY LISTENING TO THE GUITAR VIRTUOSO MIGHT NOT BE ENOUGH, AS YOU NEED TO “BECOME THE SANTANA OF YOUR FIELD”, THE SANTANA OF THE MEETINGS INDUSTRY! According to Forbes (2018) an event coordinator is the world’s fifth most stressful job, with 2017 median annual income of approx. 45,000 EUR. What, then, is the secret, the mysterious power of top planners? After all, planning events is not easy. Quite contrary, it is a highly challenging job full of stressful situations, but still some organisers seem to be doing well. Eventbrite (2018) comes to the rescue

by presenting seven key activities conducted by successful planners.

First, check your key metrics

34 THINK MICE

One defining trait of a successful event planner is that they leave nothing to chance – everything is measured and analysed. Collecting data from events ensures organisers can devise effective strategy and work towards consistently improved results. Metrics that should be reported and monitored include event costs and savings; ticket sales and event revenue; attendee population, engagement and satisfaction; as well as website and app usage and social media engagement. Checking this information daily means

you can be proactive in reallocating marketing spend, for example, knowing how much food to order, or inviting more people to your event, rather than waiting until it is too late.

Second, prioritise and work on the most important things first Busy event organisers have limited time so it is critical they understand the most important areas to focus on.

Because they are measuring performance they can react quickly when a challenge presents itself and put all of their effort into getting things back on track. To set priorities, planners must have concrete and useful data about their events, communicate the priorities to their staff, and implement processes to ensure that these priorities are carried out.

Third, talk to clients When it comes to organising events on behalf of other people, communication is key. As all successful event planners know, it is vital to understand exactly what your clients want and expect, and keep them fully informed of progress.

Now back to Santana. Carlos’ father was a professional violinist and taught him to play the instrument. Already as a child Carlos joined his dad’s band. However, upon hearing blues and

rock & roll for the first time, he was lured away from the violin toward the guitar. In 1966 Santana formed his first band – Santana Blues Band – which soon became known as simply Santana.

The band came to public attention following its breakthrough performance at the Woodstock Festival, which elevated its status to Latin rock pioneers and key representatives. Santana successfully brought the genre into mainstream through hard work and by not shying away from successive challenges. After Santana’s popularity waned in 1980s and 1990s, he made a comeback with Supernatural released in 1999. The eclectic record was a star-studded collection of songs featuring mostly younger pop and rock acts. It also demonstrated that Santana started talking with and listening to younger musicians. The track list includes such chart hits, as “Smooth” featuring Rob Thomas of Matchbox Twenty, “Maria, Maria” featuring The Product G&B, “Put Your Lights On” featuring Everlast or “Corazón Espinado” featuring Maná. In other words, songs you must have heard at least once, if only at a Latin-themed corporate event, always a popular choice among customers. But let us get back to business.

Fourth, take time out to contemplate, reflect and relax Since the job of a meeting planner is stressful, you should know when to take a break, when to sit down and listen to some music, and when you should belt out your favourite

INSPIRATIONS songs when you really do not have the strength for anything else.

The fifth component discussed

by Eventbrite is the most important one for me We are all driven by a search for new concepts and testing them, paying attention to trends or at least finding our creative muse, the source of our inspiration. These actions provide us with a much-needed adrenaline boost, making us want to read a text message or do something crazy. In addition to planning sensible time spent on relaxation and catching up with his team, a wise organiser also reads about the latest industry goings-on and case studies. It is highly recommended to stay up-to-date and well-informed or simply track your competition. It is important to show interest and concern.

Activity number seven – nurturing relationships – is equally essential A good marketing strategy is based not only on staying in touch with and talking to your current clients, but also on reaching out to past clients.

Finally, asking for feedback is also worth keeping in mind Seeking and acting upon feedback is one of the most important factors in organising successful events. Asking for feedback from attendees, participants and stakeholders is nowadays

not only simple, but also highly effective and helpful.

Being a true professional, the Santana of your industry – an effective event organiser in this case – is a resultant of well-organised activities, a systematic approach and listening to others.

Perhaps nobody is irreplaceable… but it was Carlos Santana together with his band that was inducted into the Rock and Roll Hall of Fame in 1988 and ranked by Rolling Stone as the 15th greatest guitarist of all time in 2003. Be like Santana!

And how are things really like in the hotel industry?

Hotel chains are merging, new ideas are being born, and there are new venues and concepts. Both tourists and business guests are looking for novel solutions. Still, does hard work pay off? Is it worth it to study and work hard to get your dream job in the hotel sector?

At the request of CNN Money (2018) employee recruiting firms MRINetwork and Spherion pulled together a shortlist of well-paying jobs where the demand for good candidates outstrips the supply. General managers at premier resorts and hotels were ranked third. The demand for them has gone up because there are not enough people being trained in positions that lead to the job. Plus, we need to keep in mind that the industry needs not only experts, but also staff specialised in e.g. sport venues or other activities (e.g. golf or casinos). In the case of hotel general

managers, they usually get their start as sales managers in the hospitality industry, and then work their way up to director of sales and marketing, a job that pays more than 100,000 EUR annually. Is it worth it to work hard and create long-term plans? Indeed, it takes even 18 years to become a GM at a top-rated hotel, but once there, you can earn up to 250,000 EUR. Other noteworthy examples that act as an incentive to work hard in the hotel sector are provided by the Hcareers. com portal, which lists hotel managers among the best jobs in the hospitality industry. The number of potential employers is on the rise, while the opportunities for promotion, pay rises and travelling are unmatched.

It is worth recalling here soegjobs.com and its list of jobs that might suggest the right direction for people planning a career in the meetings and hospitality industry. The focus was on the best-paying jobs, which can be found in, i.a. restaurants, cruise ships, resorts, hotels, bars, hospitals, shopping arcades, aviation industry and theme parks. The final breakdown of professions that, on the one hand require relatively long employment history and considerable experience but, on the other, generate great satisfaction and offer impressive wages, encompasses chefs (executive, pastry, bakery, etc.

– senior management), hotel managers, restaurant managers, event coordinators, engineers (chief and executive engineers), recreation workers, heads of housekeeping, chief sommeliers,

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35 THINK MICE

INSPIRATIONS casino property general managers and flight attendants/crew members.

To sum up, it is worth recalling the MPI Summer 2018 Edition of Meetings Outlook Report, whose authors predict favourable business conditions, with a 2.8% growth expected over the next year. In addition, more than 67% of respondents describe the current business climate as a seller’s market. Only 13% claim to be experiencing buyer’s market conditions. Finally, for the first time in almost three years live event attendance is expected to grow more than virtual attendance – though the difference is slight (1.8% and 1.7%, respectively).

Such results demonstrate that the meetings and hospitality sector is developing and will be growing in strength. Thanks to travels, new merges and the global economic situation meetings are and will be needed.

And as for the question if hard work brings actual effects – let us use the example of Santana once again. The musician started working at a very young age and as a teenager washed dishes in a restaurant to support his family and

36 THINK MICE

take care of his own needs. Santana himself admits that this was a highly unpleasant and exhausting job, but already back then he knew that being a dishwasher would be nothing more than an episode.

Today the musician is promising to never say never. While he once declared that he would ne-

ver play in Las Vegas, in the last two years Santana has become a regular presence in the local House of Blues. Music has always been the most important thing in his life. He had his share of muses, which gave him power, inspired him and enabled to keep creating. Be like Santana!

Work hard and make your dreams come true.

ABOUT THE AUTHOR DR KRZYSZTOF CELUCH is a speaker, an academic lecturer, an entrepreneur and certified trainer (CMM, CITE, CIS, HMCC, CED). His company Celuch Consulting specializes in the meetings industry and event marketing helping organizations in a journey from content to impact.

Head of the Poland Convention Bureau Polish Tourist Organization (2009-2017).

Krzysztof gained professional experience by working in convention bureaus, being involved in international associations and organisations, as well as by conducting scientific research. As a lecturer he cooperates with, i.a. San Diego State University, Skema Business School and several Polish universities. He is an author of articles and books dedicated to the meetings industry, reports and research projects, including The Economic Impact of Poland's Meetings Industry.

Finally, Krzysztof has been distinguished by numerous international awards and distinctions, i.a. MPI Rise Award, Events Industry Council Pacesetter Award and presented by the Ministry of Sport and Tourism of the Republic of Poland, the honorary distinction "For contributions to tourism".

TECHNOLOGIES

BLOCKCHAINS, cryptocurrencies and the MICE INDUSTRY THE BLOCKCHAIN TECHNOLOGY IS DISCUSSED IN THE CONTEXT OF A REVOLUTION SIMILAR TO THE ONE INSPIRED BY THE DAWN OF THE INTERNET AGE. CRYPTOCURRENCIES, IN TURN, ARE SAID TO BE CAPABLE OF RADICALLY CHANGING THE GLOBAL FINANCIAL SYSTEM AS WE KNOW IT. IF THESE FORECASTS COME TRUE, BOTH PHENOMENA WILL ALSO AFFECT THE MEETINGS INDUSTRY. THE FIRST SYMPTOMS OF THEIR IMPACT CAN ALREADY BE SEEN TODAY. An average media consumer, someone who is not professionally involved with financial institutions or the latest technologies, might have heard about cryptocurrencies, and bitcoin in particular, already a long time ago. Things are a bit different in the case of the blockchain technology that, to put it simply, makes cryptocurrencies possible; for a long time it remained relegated to the background. However, the last several months in Poland witnessed a genuine boom for all information related to both phenomena. The all-time high reached by the bitcoin price in December 2017 and the following downward trend were among events that certainly influenced this exposure. In April 2018 everyone curious about cryptocurrencies was closely watching the actions of the Ministry of Finance, who initially intended to impose a tax on all related trading. Interested parties flagged that the manner in which the Ministry set out to solve the discussed issue would in practice ban all investments in cryptocurrencies. Eventually, the Ministry refrained from the proposed methods and as a matter of urgency appointed a team intended to work out solutions regulating the taxation of cryptocurrencies. According to analyses available online, they are currently taxed under general rules and subject to personal income tax. Whether anyone, with emphasis on tax authorities, can unambiguously state how the tax should be correctly deducted, is another issue entirely.

All this commotion might suggest that cryptocurrencies have already a long time ago stop-

ped being a novelty that, while potentially profitable, remains cryptic for most observers. Instead, they became a regular feature of the financial market. In addition, the act on counteracting money laundering and terrorist financing, passed in early March, included information about what constitutes virtual currencies, the first such definition in the history of the Polish legal system.

Another key event for the discussed market involved the Polish Financial Supervision Authority putting BitBay, Poland’s largest cryptocurrency market, on its public warning list and filing a possible offense notification to the prosecutor’s office. As a result, the market’s owner decided to move it to… Malta. In a strange turn of events, only several months later the Financial Supervision Authority invited him to join a working party aimed at defining arrangements governing the activities of such markets. It is also worth mentioning here that for some time now the Financial Supervision Authority has been conducting public awareness campaigns warning about the dangers of cryptocurrencies. Last year it launched the uwazajnakryptowaluty. pl website and this year spent more than half a million zlotys on the “Where will you be when the bubble bursts?” campaign.

These examples show the amount of controversies, confusion, conflicting opinions and unanswered questions relating to cryptocurrencies. The status of blockchains is slightly different. First of all, we are dealing with a tech-

nology – a tool that was applied as a core component of bitcoin. From the start, there are no suspicions that its sole purpose is swindling money. In a way it can be compared to money printing equipment that can also be used to print other things. Blockchains are somewhat similar as it was quickly determined that the technology has a much wider range of applications (for example in the more conventional financial sector). A wave of enthusiasm followed along with the abovementioned comparisons to the Internet. Still, it should be mentioned that all this excitement tends to be cooled down by opinions drawing attention to the limitations of bitcoins – most of all, their costly, complex and energy-consuming character.

BLOCKCHAINS IN THE MEETINGS INDUSTRY The potential applications of blockchains in the event industry discussed by Corbin Ball in the Polish-language April issue of THINK MICE focus on a system of selling event tickets. The described mechanism is based on blockchains and bitcoin. Our guest blogger believes that in the near-term this type of solutions will be of major use for large sporting and music events.

The list of direct benefits brought up by Ball also includes the elimination of ticket duplication and counterfeit tickets plus getting rid of scalpers (a situation when ticket-bots and touts buy up large blocks of tickets to later resell them at exorbitant costs). In addition,

37 THINK MICE

TECHNOLOGIES

38 THINK MICE

blockchains make it possible to introduce a uniform resale and refund system, so that every event can be governed by a smart contract regulating ticket issuing, payment processing, refunds and resale. Another argument voiced

by Ball mentions the potentially lower costs: “Although this technology will likely be resisted by the 800-pound gorilla ticketing companies such as Ticketmaster, the process is more secure and efficient. As society moves to accept cryptocurrencies (despite the seemingly explosive bubble bitcoin is experiencing currently), the process can disintermediate ticket sales eventually leading to lower costs”.

Will these predictions come true? They certainly touch upon an actual issue that distributors of tickets for major events (and, obviously, the latter’s participants) have to deal with. In this context, it is worth recalling the August events connected with Ed Sheeran’s performance at the Narodowy Stadium in Warsaw. The English singer gave two concerts in a row. Tickets for both Polish gigs were snapped up almost immediately. Despite this, a few days before the events, information about available tickets seemed to be all over the Internet, posted both on online auction websites (OLX, Allegro) and specialized ticket reseller services. While organisers and official distributors were reminding people to stay cautious, their warnings proved ineffective. A good example is provided by a story widely discussed in the tabloids. Actress and TV host Barbara Kurdej-Szatan bought a ticket through the viagogo resale marketplace and used social

media to vent her frustration: “I opened my inbox and everything was looking great. But as soon as I wanted to print the ticket, it was sent to a completely different location, somewhere in Belgium. Viagogo is making fools out of people and now we won’t get in (…)”. KurdejSzatan also emphasized that there were many other people in the same predicament.

If using blockchains to distribute tickets can eliminate situations of this sort, then this is certainly an important argument advocating its application. Obviously, both the case study discussed above and the examples provided by Corbin Ball relate to major mass events.

However, there is a significant probability that the technology can also be used for selling tickets for smaller events. Furthermore, some steps are already being taken in Poland to make this happen. Or at least this is what seems to be going on.

MICE AND BLOCKCHAINS ON A SINGLE PLATFORM? Blockchain Smart Technologies (BST) is an initiative that presents itself as a technological startup and a marketing agency specializing in blockchain and ICO projects. At present, it focuses on introducing a brand-new platform, CoinCo, intended to gather information about currently organized blockchain-themed conferences all in one place. Its ultimate goal is to provide everyone interested with an opportunity to stage their own events, without the need to involve intermediaries. This is supposed to happen thanks to a platform integrating all

chains indispensable for implementing an enterprise of this kind: experts on the blockchain technology, people interested in acquiring this expertise (and in buying tickets) plus entities capable of delivering the essential event infrastructure (venues, catering, etc.).

BTS promises that “an easy step-by-step guidebook will enable everyone to stage a successful networking session, a conference or other meetings”. It is this particular component that provides the whole undertaking with its MICE-related character. But that is not all.

In a conversation with us Sandra Waśkowska, CEO at BST, explained that the team behind the platform was inspired by, i.a. belief in the power and significance of face-to-face meetings and networking, which also constitutes the very foundations of our industry.

The CoinCo platform is intended to be based on the blockchain technology and its authors already started selling their own token (ConferenceCoin), which in the future will act as the platform’s target means of payment. Still, sufficient funding has to be raised to first make the whole undertaking come into being. This is the potentially most questionable element that also made us unsure if we should be covering the project at all when BST representatives first reached out to us. What seems to be the problem?

The fundraising is conducted through the so-called initial coin offerings (ICOs), a crowdfunding method that consists of startups raising capital by means of cryptocurrencies.

It should be noted that about 10% of all ICO fundraising goes to identified scams that from the very outset are intended to con investors out of their money and are based on projects that no one was ever planning to implement.

To get a broader picture, we should add that an imminent feature of start-ups is the fact that some of them fail. In addition, let us keep in mind the risks related to cryptocurrencies and blockchains. Nevertheless, the very existence of the fundraising initiative under analysis (even if it never really takes off) shows that if blockchains and cryptocurrencies become what everyone is predicting they will become, the revolution will also affect the MICE industry. In this case, the examples covered above can suggest the direction we are heading in.

Maria Krzos

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39 THINK MICE

REPORT

PRICES ARE GOING UP, BUT NOT EVERYWHERE

Fot. Fotolia

In a global perspective, in the months to come we will face growing costs related to the organization of business trips. However, there is good news - the fact that Central and Eastern Europe is among the regions, where a slight downward trend in prices is forecast.

Travelling is becoming expensive, predominantly influenced by the growing prices of air travel and hotel rates, the two fundamental components of each trip. Next year we should expect them to rise by 2.6 and 3.7% globally, respectively. At least that is the outcome of data presented in the 2019 Global Travel Forecast report compiled by Global Business Travel Association (GBTA) and Carlson Wagonlit Travel (CWT), a worldwide company providing services in the field of business travel management.

INCREASING TRAVEL SPENDING

40 THINK MICE

Taking a closer look at the prices of air tickets, GBTA and CWT experts are forecasting that the largest growth will be recorded in Western

Europe (4.8%), the region of Asia-Pacific (3.2%) and North America (1.8%). In addition, in some countries representing the abovementioned continents the prices might go up far above the average. Unfortunately, to a large degree this trend is expected to affect European destinations. For example, the prices of travelling by air to Norway, flying within the country and applying the services of Norwegian airlines will grow by 11.5% (a record-breaking result in Europe). An increase of 7.3% is anticipated in the case of Germany, followed by oft-visited France and Spain (6.9% and 6.7%). Travellers planning flights to Finland (6.6%) and Great Britain (5.5%) should also prepare for rising prices. In the region of Asia-Pacific, everyone planning to fly to New Zealand (7.5%) and India (7.3%) are recommended to start saving. China, Indonesia

and Singapore are among other markets expected to see considerable rises in 2019 pricing. Canada (5.7%) will lead the unfortunate trend in North America.

Regardless of which continent we are discussing, climbing oil prices are among the factors responsible for this state of things. Following three years of decline, oil prices recovered and continue to rise. While its growing consumption is obviously an important mechanism here, mention is also due to fear of its reduced supply, stemming from a geopolitical situation that includes, i.a. sanctions on Iran imposed by the U.S, the turmoil in Venezuela, etc.

In addition to fuel prices, the costs of travelling by airlines are also driven by the good condition of the global economy, which imposes pay increases. This phenomenon is particularly evident in the aviation sector, which is beginning to struggle with pilot shortages in consequence of a record-breaking dynamic growth. According to data presented

by CAE, an aviation training organization, in Europe alone more than 50,000 new pilots will be required by 2027, while in the region of Asia-Pacific the number will reach about 90,000. This trend intensifies the rivalry between airlines competing for potential employees, consequently sending their wages through the roof. Such policy affects ticket prices.

GREEN ISLANDS In spite of all this and contrary to global trends, prices are actually going to drop in some regions. Central and Eastern Europe are among the lucky few, with air rates predicted to decrease by approx. 2.3% in the next few

REPORT The trend will be especially pronounced in the already highly expensive Norway (11.8%). This time Spain will take second place (8.5%) followed by Finland (7.1%) and ex aequo France and Germany (6.8% each). The growth across the region of Asia-Pacific will not be much lower, with prices expected to rise at the level of 5.1%. The main difference lies in the rather considerable discrepancy between changing rates in particular countries.

For example, prices in New Zealand are set to rise by 11.8%, in China - by 6.9% and in Singapore - by 5.9%. On the other hand, rates in Japan will fall by 3.2% due to the country’s added accommodation capacity related to preparations for the planned Summer Olympic Games which the country will host in 2020.

North America also belongs to the list of regions, where we expect to see rising prices (2.8%). Both in the case of this continent and all areas listed above, the upward trend in hotel rates will likely continue for the whole coming

months. This is certainly good news for all organisers and clients working on business trips heading to this direction. In addition, the trend will make it possible to at least partially alleviate the “losses” caused by trips to Western Europe, which is expected to deal the hardest blow. What is the reason for dropping prices in Central and Eastern Europe? The aviation market, albeit rapidly growing, has not yet accomplished the same impressive dynamics as its Western European counterpart. As a result, the price war aimed at attracting pilots is not as fierce. The statistics are also influenced

by Russia, which recorded air rates decreased by 0.7%, mostly in consequence of the growing number of flights to the country, an aftermath of, i.a. Russia’s increasing openness following the 2018 FIFA World Cup and ensuing improvements of airport infrastructure, as well as recovery in oil prices. All of these factors put together improved the financial condition of our Eastern neighbours and activated their business operations.

People travelling to Africa, Middle East and South America will also enjoy air prices expected to fall by 2%. Here, competing for employees as the decisive factor was replaced by competing for clients by particular airlines developing their networks of flights in the discussed regions (i.a. Kenya Airways, Ethiopian Airlines and Turkish Airlines).

One of the world’s largest airports, whose opening is planned to take place in Istanbul still this year, will act as an interchange hub for the discussed carriers.

mote destinations. Launched in March 2018, the ultra-long haul flight from Perth to London (handled by Australia’s Qantas Airways) is an excellent example. Mention is also due to the Singapore to New York flight, suspended in 2013 and now reactivated by Singapore Airlines in October. Representatives of airlines admit that these operations are intended to draw a greater number of business travellers, who can now cut back on their precious travel time and afford flying the much more expensive business class or at least economy premium.

REINVENTING ULTRA-LONG TRAVEL

EUROPE: HIGHEST PROJECTED AIR PRICES IN 2019

Obviously higher air prices will not have a detrimental impact on the demand for business travel. On the contrary, the global economic growth already discussed earlier will consequently intensify this particular field.

The growth is expected to continue worldwide (at an annual level of 3.4%), with the title of the most dynamic region going to Asia-Pacific, where China is acting as the main driving force, now considered the world’s largest corporate travel market. The growing role of business customers is demonstrated by the policy of some airlines that are introducing increasingly longer direct flights between even the most re-

GOOD TIMES FOR THE HOTEL INDUSTRY The sheer growth of the number of business travellers also spells good news for the hotel industry and makes hotel rates systematically go up. As was the case with air rates, the largest growth is predicted in Western Europe.

Authors of 2019 Global Travel Forecast predict that the rates will rise by an average of 5.6%.

2019 AIR PRICE PROJECTIONS

2.6% GLOBAL

4.8% 3.2% 1.8% Western Europe

-2%

South America

Norway

Asia-Pacific

North America

-2% -2.3%

Africa and Middle East

Eastern Europe

11.5%

Germany

7.3%

France

6.9%

Spain

6.7%

Finland

6.6%

United Kingdom

5.5%

Italy

5.5%

Denmark

5.1% Source: 2019 Global Travel Forecast

41 THINK MICE

year. Professionals involved in organizing business travel are aware of these forecasts.

What is more, with the growing occupancy rate in mind, many of them will prioritize booking a room in the preferred location and date, with the price factor often relegated to the background (making hotels happy). This is particularly evident during trade fairs, conferences and congresses, when rooms in the most sought-after venues are sold out even several weeks earlier. Another trend to gain popularity in the hotel industry, the so-called dynamic price management, relies on adapting prices to the demand conditions available at a given time. In other words, prices during key events might grow even several times in comparison to the rest of the year. To at least partially “alleviate” the ensuing losses, business customers increasingly often make efforts to establish long-term, even multi-annual, cooperation with hotels (or hotel chains). In exchange, they can expect to negotiate

more preferential rates, even in the so-called peak periods, which might prove an affordable solution for companies regularly sending large numbers of employees on business trips.

Middle East, Africa, South America and Central and Eastern Europe are among the regions where hotel rates in 2019 are predicted to be slightly lower than before. In the case of Central and Eastern Europe prices are expected to drop by 1.9%. In other words, this part of the Old Continent will be able to offer business travellers both more convenient rates of air travel and accommodation. The combination of these two components will likely generate significant savings. While they might not be crucial in the case of travelling for strictly business purposes (meetings with contracting parties, visiting branches, contract negotiations, etc.), when price and destination are not decisive, such savings will certainly be important in the context of attending trade fairs, conferences, congresses and scientific symposia. As an ad-

2019 HOTEL PRICE PROJECTIONS

3.7% GLOBAL

5.6% 5.1% 2.8% Western Europe

Asia-Pacific

North America

-1.3% -1.5% -1.9% South America

Africa and Middle East

Eastern Europa

EUROPE: HIGHEST PROJECTED HOTEL PRICES IN 2019 Norway

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11.8%

Spain

8.5%

Finland

7.1%

Germany

6.8%

France

6.8%

Italy

6.3%

Denmark

4.5%

United Kingdom

3.5% Source: 2019 Global Travel Forecast

ditional incentive, they might encourage getting involved in events of this kind staged in the ‘budget” regions of the world.

ALTERNATIVE SOLUTIONS Business travel organisers, who will pay more for air travel and accommodation when sending employees on business trips might find some solace in the fact that prices of services connected with ground transportation in their target destination should not rise too much (barely by 0.6% globally). While car rental companies are unable to maintain prices at the heretofore level and are introducing new, slightly higher rates in consequence of the increasingly high fleet maintenance costs, the discussed changes are not particularly drastic.

In addition, vast majority of employees travelling for business take advantage of opportunities generated by car-sharing, Uber and Lyft, all of which offer money-saving options. In certain parts of the world (i.a. North America) this solution became so popular that car rentals sometimes supply vehicles for Uber or Lyft drivers, treating it as an additional source of income. If available, trains are picked more often as a means of transport. However, the main obstacle impeding a more dynamic development of rail transport continues to involve the relatively underdeveloped booking systems and competition from so-called budget airlines, whose rates are often highly similar to the ones offered by railways.

The 2019 Global Travel Forecast report was prepared using a special statistical model developed by GBTA and market and economic research company Rockport Analytics. It is based on evaluating and precisely analysing historical price behaviour, which makes it possible to forecast how prices might be shaped in the nearest future. In addition, the report’s projections used data from Carlson Wagonlit Travel branches worldwide, with particular emphasis on CWT Solutions Group, which specializes in business travel consulting. Key macroeconomic and per-country indicators, such as current and expected GDP growth, consumer price index, unemployment rates and crude oil prices were also used in the statistical model.

Michał Kalarus