san francisco customer advisory council september 8 … · san francisco customer advisory council...

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San Francisco Customer Advisory Council – September 8 - 9, 2010

Council Members (in attendance)

Marty Balogh American Bar

Association

Randy Cross SPIE

Kathy Doyle Cisco Systems, Inc.

Mark Erwin Intel Corporation

Cele Fogarty SmithBucklin

Nicole Garbolino United Business Media

Gia Garunchio Semiconductor

Equipment and

Materials

International

Sandra Toms LaPedis RSA Security

Bill Lynch National Association

for the Specialty Food

Trade

Steve Pitt National Automobile

Dealers Association

Robin Preston National School Boards

Association

Karen Reul Salesforce.com, Inc.

Germaine Schaefer American Diabetes

Association

Beth Strelitz Endocrine Society

Brenda Weaver American Geophysical

Union

Johnnie White Cardiovascular

Research Foundation

Council Members (unable to attend)

Elaine Howard Mortgage Bankers

Association

Rob Mesirow CTIA – The Wireless

Association

Jodi Morrison Oracle

Felix Niespodziewanski American College of

Surgeons

Victor Robinson American College of

OB/GYN

Janet Skorepa American Urological

Association

Chris Wehking American Society of

Anesthesiologists

Local Partners

Joe D’Alessandro San Francisco CVB

Leonard Hoops San Francisco CVB

Walden Agustin San Francisco CVB

Scott Baublitz Hilton San Francisco

Joe Curran Hotel Nikko

Michael Dunne Hilton San Francisco

Murat Eskicioglu Moscone Center

Mary Gallagher San Francisco CVB

Ernie Garcia San Francisco CVB

Lanie Griffin Starwood Hotels

Kathryn Horton San Francisco CVB

Tamra Howes San Francisco Marriott

Jon Kimball The Westin St. Francis

Toni Knorr St. Regis Hotel & SFCVB

Board Chair

Peter Koehler InterContinental Hotel

Melody Lendaro Moscone Center

Lysa Lewin San Francisco CVB

Deidre Lewis San Francisco CVB

Brenda Ly Kimpton Hotels

Kenley Moy San Francisco CVB

David Nadelman Grand Hyatt

John Noguchi City & County of San

Francisco

Leonie Patrick San Francisco CVB

Anna Marie Presutti Hotel Nikko

Wendy Ramirez San Francisco CVB

Bob Sauter Moscone Center

Dick Shaff Moscone Center

Matt Stiker San Francisco CVB

Roxy Stone Grand Hyatt

Joan Varadi Moscone Center

Meeting Facilitator

David Kliman The Kliman Group

San Francisco Customer Advisory Council – Meeting Minutes – September 2010– Confidential 2

SAN FRANCISCO CUSTOMER ADVISORY COUNCIL

MEETING MINUTES

September 8 - 9, 2010

Confidential

Wednesday, September 8, 2010

The Council was welcomed; goals and objectives for the meeting were

outlined. New and returning Council members and San Francisco hosts

were introduced.

Jon Kimball, General Manager of the Westin St. Francis (host hotel)

discussed the 100+ year history of the St. Francis and its importance in the

civic life of the City; the hotel recently underwent a $40 million renovation,

― so new you can smell it‖!

Joe D’Alessandro and Toni Knorr discussed the importance of the

Council’s recommendations and feedback which is used to create

improved products and services and make San Francisco an even better

meetings destination. The CVB is celebrating its 101 anniversary in

November 2011; it was founded in the St. Francis Hotel.

Leonard Hoops outlined San Francisco destination highlights:

Moscone expansion

o Analyzing 2 scenarios based on buyers’ feedback which

emphatically stated desire to stay near Moscone; don’t build a

remote Center

Scenario One: Moscone East: located at 3rd St. and Folsom between

Hawthorn and Howard Streets just east of Moscone South

o Underground connector to the South with a total of 364,000

square feet of new space

Scenario Two (could be built concurrently with Scenario 1): Re-

configure Moscone North and South in the area west of the Concourse

which hasn’t been excavated; approximately 20,000 square feet

o Gateway Ballroom reconfigured as flex space to create 500,000

square feet of continuous space

o No property related issues as all real estate is controlled by the

city

o Overall focus on not displacing existing business

o 2018 is targeted for completion

o Scenario Two is the most likely

Bay Bridge Construction; completion in 2013; $5.5 Billion project will

create a seismic ready bridge with a 150 year lifespan

http://baybridgeinfo.org/

http://baybridgeinfo.org/


SFO terminal 2 opens Spring 2011 as home to American and Virgin

America with 13 gates http://tinyurl.com/ydbksad

TransBay Terminal will open 2017; $4.2 Billion project; Phase 2 includes

high speed rail link to Los Angeles http://transbaycenter.org/

New cruise terminal opens in 2014 with 500,000 square feet of event

space; working on booking policy to make it usable for large scale

events with long planning timelines http://tiny.cc/u9aja

Central Subway opens 2018 linking ATT Park to Moscone Center, Union

Square and Chinatown http://tiny.cc/6mwa3

Exploratorium opens in 2013 at Piers 15 & 17 http://tiny.cc/frqno

Museum of Modern Art (MOMA) expansion to house Donald Fischer

(Gap founder) donated art collection; will triple gallery and public

space; located in the Firehouse on Howard Street near Moscone

www.sfmoma.org

34th America’s Cup; San Francisco is possible site for the next race;

largest economic impact after World Cup and Olympic Games;

decision expected next week; massive upgrades to numerous

waterfront areas including an amphitheater at Piers 30 and 32 if San

Francisco is chosen http://www.americascup.com/

Customer Report – Randy Cross – SPIE – www.spie.org

SPIE Photonics West, January 23-28, 2010

Meeting Overview:

18,000+ people gather annually from around the world to explore the

latest advancements in light-driven research and technologies. Operates

as 4 concurrent meetings:

BiOS—Biomedical Optics is the world's largest international

biomedical optics and biophotonics conference

LASE—Lasers and Applications covers the science and the sources

of all types of lasers and their applications

OPTO—Optoelectronic Materials, Devices, and Applications;

addresses the latest advancements in integrated optoelectronic

devices, semiconductor lasers, and LEDs

MOEMS-MEMS—Micro and Nanofabrication enables mass-

produced miniaturized products and systems of the future

Goals and objectives:

Move meeting from San Jose to San Francisco at the time of

economic downturn and maintain attendance levels by registration

category. Deemed successful by SPIE

Learn attendee hotel usage in first year to fine tune hotel

contracting for 2011

Demonstrate to attendees that San Francisco is a dynamic and

appealing venue for this meeting. Great feedback from attendees

http://tinyurl.com/ydbksad

http://transbaycenter.org/

http://tiny.cc/u9aja

http://tiny.cc/6mwa3

http://tiny.cc/frqno

http://www.sfmoma.org/

http://www.americascup.com/

http://www.spie.org/

http://spie.org/x13196.xml





Bring exhibition all under one roof - had used tents in San Jose for

400 of the exhibitors

Maintain or increase number of exhibitors and produce an

acceptable audience (quality and quantity) to demonstrate that

the exhibition is at least as strong as it was in San Jose. Exhibitors

really appreciated the improved facilities

Learn what venues work best for which meeting elements – fine

tune for 2011

Number of attendees:

18,000 registrants - 1,000+ exhibiting companies

Attendee demographics:

Multidisciplinary scientists and engineers primarily representing

applied science, but with a smaller component of academicians

Attendance is about 75% male/ 25% female, that demographic is

starting to change as more women enter engineering

Number of Hotel rooms used and hotel package:

Peak night 2,641

ROB 1,124

Total 3,765

Singles 87%

Doubles 13%

15 hotels contracted (32 hotels in 2011)

History:

Prior 18 years in San Jose

Future:

Booked annually in San Francisco now through 2014 and Letter of

Intent 2015-2019

Venue usage:

Moscone North & South plus Hilton and Westin; also planning to use

Marriott and Intercontinental in 2011

Offsite venues:

Jillian’s and Hilton; Exhibitor reception at Jillian’s; maxed out, but

exhibitors liked it

Member reception at Cityscape Hilton was a great venue

Airlift & transportation issues:

No Airlift issues; need increased attendance from South Bay in 2011

Safety and Security issues:

One death (heart attack); well managed by EMTs

Attendees annoyed (commented on) street panhandlers

EMT service in Moscone was good

Security good at Moscone

Maloney Security was good


Labor and Union Issues:

Persistent interruptive and annoying calls and emails from Unite Here

Local 2 (Julia Wong)

Learning the ―ropes‖ during first time in San Francisco and the Unions

(especially hotels); but all worked out well after our staff established

rapport and working relationship

Took time to develop teamwork with unions by vendors to find

workable solutions

Any other issues of importance:

Housing was a concern; rooms were being sold at lower rates by

wholesalers despite no lower rate contract clause, forced to contact

some hotels weekly to force them to take lower rates off the web

CVB understood problem, but was not able to find solution. Housing

company spent a lot of time wrestling with this issue.

Room pirates; big problem during September 2009

Highlights

Robynne Weaver CSM at Bureau was great!

Wonderful to get our exhibition all back under one roof

Hilton staff were terrific – Sales (Scott & Alexis), CSM (Erin),

Catering/Banquets (Eddie Imperial was incredible), Front Desk,

Concierge, Housekeepers said hello to guests in hallways, all very

helpful/friendly. GM (Michael Dunn) present in the lobby each

evening to greet and engage attendees

Dick Schaff was highly visible, accessible, great interacting with him

Westin was very responsive and helpful during events at the hotel

Great ―temp‖ staffing in San Francisco. Used Trade Show Temps, VNH

Staffing and Premier Staffing

Areas for improvement

High Catering Costs:

Catering prices were a huge jump compared to San Jose even though

cost of living and consumer price indices comparing San Jose and San

Francisco didn’t support the increase

While the indices show 17% differential; we experienced catering price

increases up to 65%

Even after ―significant‖ catering price negotiations, ended up with

average 35% catering price increase over San Jose. Negotiations

resulted in decrease in quality of catering to lower costs

Competed with other events with higher F&B spend for catering

services and staffing

Difficult to negotiate opening concessions where and when needed to

drive traffic to the appropriate locations. One concession location

was in disrepair and could not be opened

Limited variety of food; poor hot food choices at concessions noted on

exhibitor survey responses


Communications:

Communications among CSMs and Catering Managers and their staff

should have been better and more proactive

Service staff on several events did not have the most recent

information that had been transmitted to them days or weeks

previously

Expectation is that Moscone CSM (or designee) works same hours as

SPIE staff (agreed upon start/end time per day); this did not happen

Seating/sets for areas:

Need more seating in Exhibition halls for catering

Need enhanced communication prior to event regarding options

Consistency regarding space allowed for sets in common areas; we

saw areas set for other groups during our sites that were not allowed for

SPIE; disregarding fire marshal regulations

Need more general seating throughout Moscone

Other:

Keep restrooms clean on setup days

Garbage cans around Moscone were often overflowing, need more

frequent service

Need for recycling staff to be present for weekend exhibition move out

Utilize more mixed paper recycling bins throughout the exhibition floor

Need better maps/listing of nearby restaurants for lunch time when

attendees are on their own

Noise bleed between rooms on the Mezzanine

Improved HVAC control in Mezzanine rooms

Paging system in Exhibition Halls (especially South Hall) is unintelligible

Upgrade the swing spaces in South Hall, it’s unusable as meeting

space

Comments from the Council

How is the city involved and how are prices set?

25% commission on F&B is paid to the City

Murat is working to lower prices, however the City has right to

review and approve pricing and city government is looking for

more revenue

Customer Report - Marty Balogh - American Bar Association -

www.abanet.org

Background and Key Issues

ABA first met in San Francisco in 1912; in 1950 started meeting here

regularly; in the 1970s met here every 5 years and in 1990 began every

3 year rotation; other cities including Chicago, New York and

―wildcards‖ Toronto and Boston

Strong meeting focus (not exhibitor); 1,400 meetings over 6 days

http://www.abanet.org/


Meeting is designed as 27 specialty groups which meet concurrently;

looks and feels like a self contained meeting

Moscone West used as HQ for educational meetings and staff

2010 attendance was down 7% vs. 2009 in Chicago; due to less walk in

attendance

8,000 people booked 14,300 room nights in 16 hotels, plus 1,100 room

nights booked outside the block (despite excellent rates at all

contracted hotels)

No rate issues with the hotels, (vs. 2009 Chicago experience which

resulted in more rooms booked outside the block)

―It’s like doing business with friends in San Francisco; ―more a

hometown feel (than Chicago); we have a ―great bond‖; ―feel so well

looked after; our interests are protected‖ it’s a ―great feeling doing

business here; working with Walden Agustin in Chicago office is great!‖

―Great meeting with very few complaints‖

Taxis are always hard to find around Moscone from 5:00pm to 6:00pm;

drivers frequently rude about taking short trips

Labor jurisdiction issues at Moscone are counter productive and

annoying

Labor costs are 25% higher than in Chicago (comparison is against

Hyatt Regency Chicago, not McCormick Place)

Pipe and drape hung by AV Union, not Drayage companies; cost is too

high; electrical union costs are expensive, but they do excellent work

CVB did an excellent job in mitigating Unite Here and other Union

issues

Because ABA meets in other expensive destinations; they feel Moscone

food prices are fair when compared to Chicago and New York

Received no hotel complaints; overall great feedback

President’s Reception at City Hall catered by Dan McCall was ―so

great I would like to use them in other cities‖ www.mccallssf.com

Herbst Theater event was also excellent; ―a great experience‖

DMC services from Cappa & Graham was great www.cappa-

graham.com

Changing demographics and dynamics of the meeting: less critical for

lawyers to attend ABA meetings and reduced desire to bring their

families

San Francisco feels like ―a whole new city‖ offering lots of dining and

entertainment options; managed 150 dinners with 20 to 50 attendees;

the City offers new venues and great relationships; this is a ―very

special‖ and unique asset

Challenges for 2013 meeting

Homelessness and street cleanliness

Taxis (acknowledges it is very hard to create an effective system in a

city whose residents don’t rely on taxis like New York and Chicago)

http://www.mccallssf.com/

http://www.cappa-graham.com/

http://www.cappa-graham.com/


General Comments

Sandra LaPedis Toms at RSA also experienced Union jurisdiction

issues; forced into situations in which they had to change the name

of certain equipment: digital signs became information boards in

order to continue set up work. All works stops when these issues arise

until resolution

Consensus that this is an ongoing issue

Dick Shaff stated that there is no vehicle within the labor movement

to resolve jurisdiction issues; Unions need to agree on who does

what and where

Establish protocol in which meetings are scheduled in advance to

address issues with Union; make part of the site inspection process

and follow through right up to the Pre-Con meeting

All Union costs need to be clearly stated in manuals and show

planner guide

Kathy Doyle (Cisco) unexpectedly had audio capture labor costs

billed to her master account; ―took a lot of time to mitigate it‖

Outdated union regulations resulting in everyone claiming

jurisdiction, particularly with regard to more hi tech equipment

being used at shows; this ―has to be addressed transparently‖

Steve Pitt (NADA) experiencing a total of $276,000 in increased

costs vs. Orlando for General Session ($70K); workshops ($36K);

security ($176K)

Concern that San Francisco will soon become overpriced and too

expensive for many shows

Lack of marshalling yards make its difficult to stage large numbers of

shuttle buses; need to invest in infrastructure

Open Topics and Key Trends

Virtual and hybrid meetings; increased use of technology for events

requires significant improvements to the networks found at

Moscone; groups have to bring teams to build separate networks

and wireless access; few Centers are providing adequate access or

networks; the same goes for hotels. ExCel London www.excel-

london.co.uk was cited as a best practice especially on the show

floor

Create a sub-committee to work with Moscone and their tech

consultants in the next few weeks to address this issue. Members

are Karen Ruel, Kathy Doyle, Sandra LaPedis Toms and Johnnie

White; hotel members are Roxy Stone and Scott Baublitz

Game Developers conference is seeing exhibitor floor shrink; cost to

exhibit is too expensive; some are meeting in nearby hotels;

http://www.excel-london.co.uk/

http://www.excel-london.co.uk/


American Diabetes Association is charging attendees $750 to book

a hotel meeting room

Surprised none of the housing companies are marketing to

attendees using Amazon style customized preferences; seems its a

good market opportunity

Bed bug infestations were discussed; ―hard to get a straight answer

from hotels‖ and inconsistent responses have been found within

hotel chains. See Joint Statement on Bed Bug Control in the United

States from the U.S. Centers for Disease Control and Prevention

(CDC) and the U.S. Environmental Protection Agency (EPA)

http://tinyurl.com/2fzkrzz

Room Pirates were discussed; no conclusive solutions have been

identified; need to continuously communicate with and educate

attendees regarding these fraudulent organizations

Social Media Issues

Cisco is using social monitoring tools (Twitter) to respond in real time

to address content and logistical issues

Salesforce.com uses an internal app with 200 ambassadors for

content and customer services

RSA planning to use www.yelp.com style site in 2012

Specialty Foods attendees are ―not tech savvy‖, but using Twitter as

a trend measuring tool for hot products

Near Field Communications (NFC) is a new type of RFID style

technology

Nephrology used Twitter last year, but it was not well understood or

used

Most expect print and paper to decrease and ultimately disappear

from shows

Generational struggle within some organizations

FourSquare was discussed but no one is using it at this time

www.foursquare.com

SMS text messaging is considered ―old school‖ technology by some

young meeting attendees

Geo location apps are highly desirable

SFCVB is analyzing Social Media and running a contest with

developers to create San Francisco app; expect details soon

Moscone Related Tech Issues

Technology is constantly evolving; many groups are dependent on

Moscone’s network; but many have lack of confidence in it

Hard to get a signal in some underground areas at Moscone

Expect more groups to request Wi-Fi buy outs at Moscone

Need Moscone to play a role in enhancing network connectivity

http://tinyurl.com/2fzkrzz

http://www.yelp.com/

http://www.foursquare.com/


Moscone should play a role in connecting attendees; provide apps

for networking; should not just be up to show managers to create

apps; buyers want more from Centers

Thursday, September 9, 2010

Moscone Center Renovation Updates – Paul Woolford – HOK

Paul reviewed the renovation plan; the following summarizes his

comments:

Moscone is the showcase of our creative, colorful, diverse cultures and

communities within the natural beauty of Northern California

Goal is to develop a creative, colorful, sustainable environment which

uses a bright and modern palette to showcase our cultures and

communities within a backdrop of natural materials from California

$55 million project will be completed within 2 years with minimal

disruption to customers’ shows

Work has already begun and will be completed by June 2012;

upgrades include:

o All new carpeting and ceilings

o 24 upgraded rest rooms; new hot water systems; less institutional

look and feel

o Hall E and Esplanade new airwalls are completed

o East West Mezzanine airwalls scheduled for July 2011

o Doubled wireless access in North Lower area and increased by six

times the 3G and 4G bandwidth (May 2010); in house systems now

include a second 100meg network

o New escalators

o New HVAC systems

o Enhanced data network

o Seeking LEED Silver Certification www.usgbc.org

http://www.usgbc.org/


The Council was asked to prioritize key projects; the following summarizes

their feedback:

Mezzanine space is the # 1 priority for upgrades and renovation

Connector space between North and South also requires work to

make it more useful as a series of networking spaces with excellent

lighting, power sources, flexible seating and enhanced tech options

(Skype stations) etc.

Increase number of electrical outlets and create brighter and more

flexible lighting scenarios

Take care not to create color palates that will compete with show

decorators’ ability to create custom looks for their clients’ shows; keep

look and feel simple and fresh and use minimal floor space

Replacing crash door hardware is not a priority

South Lobby potential to fill in horseshoe area and create more

efficient registration area was endorsed by the Council provided the

space is flexible

Space at the bottom of North escalators is prime area for visual impact

Hall D North Airwall must be improved

Well placed digital displays and interactive stations - searchable

interactive technology

Enhanced way finding features using colors and the graphics and

signage plans shared with the Council were viewed favorably


Mirrors outside ABC Halls are dangerous (people walk into them during

peak congested times); needs solution

South Hall swing space - 100 rooms are too dark, make them more

appealing

Washington DC Center way finding was cited as highly effective

Creating Best in Class RFP Responses

When asked to provide information regarding ways in which San

Francisco can design and provide responses to RFP that are best in class;

the Council provided the following feedback:

When a client sends a form, be sure to complete it completely and

accurately 100% of the time; incomplete or inaccurate responses are

often disqualified

Ask potential client to define their key ―hot buttons‖

Describe how a show will look and feel in San Francisco by providing

specific examples relevant to the customers’ industry; ―show me similar

organizations that have been successful‖ here

Provide examples of successful attendance building specific to clients’

market; include groups with record breaking attendance broken down

by market and including planner contact information

Custom research is critical to provide meaningful responses, take extra

efforts to ―dig deep‖ can pay off

Go back to basics; provide comparison pricing (gallon of coffee,

internet drops etc.)

Superimpose client’s logo on Moscone graphics to indicate how their

show will look in San Francisco

Don’t ask questions which are covered in the RFP

Best-in-class RFP response: a hotel company sent sales team with iPad

presentation which accurately reflected the brand and services

offered by hotel

Ask for the business; surprising that ―old fashioned selling‖ techniques

(just asking for the business) are often not used

Promotional video should show examples of successful events at

Moscone; ―bring the show in San Francisco to life‖

Use Century Gothic font (used in this report); it uses 30% less ink than

Arial tiny.cc/n4v78

Ensure electronic responses will print properly

Ensure that RFP responses sent to clients at large organizations are sent

using a ―trackable‖ service such as FedEx; do not rely on regular mail

Letter from the Mayor is not meaningful


Future of Trade Shows

The Council discussed their views regarding the future of trade shows; the

following summarizes their comments:

Some organizations are shifting show floor focus from selling to

education; this requires the creation of quiet spaces on show floors

Other shows remain strongly focused on selling; however, almost all

need to mitigate costs

Attendees want to interact with someone who truly understands the

product

Some shows are seeing exhibitors reducing booth footprint due to cost

The Council was asked their opinions regarding the CVB’s involvement at

meeting industry shows such as MPI, ASAE, PCMA etc; the following

outlines their comments:

Strong desire for customized experiences; ―I want to be invited to a

smaller event‖ with educational element to share trends and have

close interaction; peer to peer experience are also desired

Scheduled appointment during show: appointments won’t work for

some very experienced buyers who are too busy during shows; less

experienced planners are best targeted for appointments

Dinners events

o One size won’t fit all, but be sure to get invitation out as early as

possible; make personal follow up calls to key attendees

o Invite current client as ambassadors to sell peer to peer to

planners from similar organizations

San Francisco Supervisors Lunch

San Francisco Supervisors Bevin Dufty http://tinyurl.com/242dd39 and

Carmen Chu http://tinyurl.com/24ryoc8 joined the Council during lunch

at the Hotel Monaco. The Supervisor took questions from the Council

regarding Union, Hotel Tax, Streetscape and Homelessness issues.

Because the other 7 Supervisors were unable to join the lunch, the

following questions have been sent to all Supervisors requesting written

responses and answers will be shared.

Questions to the Board of Supervisors:

Proposed hotel tax increase; what are the Supervisors’ thoughts and

plans?

o We appreciate that tourism is not be a visible part of all Districts’

infrastructure

o People working in the tourism industry live in all the districts in San

Francisco

o Want the Supervisors to truly understand the huge impact

tourism has on all areas of the City

http://tinyurl.com/242dd39

http://tinyurl.com/24ryoc8


o Raising the hotel tax is extremely counter productive; it would

put San Francisco in the very top tier of hotel tax levels in the

country

o What can the Council members do to help defeat the hotel tax

and/or help the City to improve the visitor experience such as

letters, testimonials etc.

Labor and jurisdiction issues at Moscone Center are extremely time

consuming and counter productive for meeting professionals and

show planners – what can be done to address these issues?

How can the City help ensure that Moscone costs are competitive for

space rental fees, food and beverage, labor, and other services?

o All convention centers are loss leaders that generate economic

impact and tax revenue for destinations far beyond their

operating losses

o Does the Board of Supervisors truly understand that focusing on

minimizing the operating losses of the buildings can/does

jeopardize the overall economic impact of conventions?

Are you supportive of expanding Moscone Center?

o Many annual/regular rotation groups are outgrowing the

facilities and/or need more contiguous exhibit space (rather

than splitting exhibits into more than one building)?

o SFCVB economic analysis studies shows there is demand for

more space

o What can the Advisory Council do to ensure an expansion is

funded and happens in a timely manner?

What’s being done to keep the city streets clean

What’s being done to improve the homeless population situation (the

situation has improved) but what’s planned for the future?

What can be done to improve taxi service in and around Moscone

Center and the Union Square area?

Open Forum with Hoteliers, The City and the CVB

The following outlines the comments and feedback from the session:

Union Issues

Unions are calling labor actions a ―siege‖ and other unions are not

honoring informational pickets which typically have only a few

participants

Hilton, Hyatt, Intercontinental and Starwood are in on-going labor

negotiations; contract was up in August 2009; all have had multiple

negotiation sessions; expect contracts will eventually be settled

All major hotels are equipped to operate effectively despite labor

actions

No meetings have been interrupted by labor actions to date


San Francisco Business Times named the Grand Hyatt as one of the

best places to work based on employee feedback

Moscone has a signed contract with Local 2 and an agreement that

there will be no work stoppage due to labor action

Hotel Tax Increase

Hotels are united in defeating the proposed hotel tax increase

Council members expressed concern that future hotel rate increases

will far exceed the impact of proposed 2% tax; this could make San

Francisco too expensive

Cost of Doing Business in San Francisco

High cost of doing business here, operating margins are 5 to 10% higher

than other cities

Health care costs $1,200 per employee vs. $300 in San Diego

Trying to create ways to mitigate high costs to ensure the City is not

price prohibitive for meetings and events

Gia Carunchio offered to review cost comparison spreadsheets

Moscone is holding prices till August 2011 and offering more lower

price options such as express box lunch, lower costs buffets and one-

time pay for unlimited individual coffee

25% of F&B revenue is paid to the City

Strong concern that high costs will force planners to book other

destinations; ― the joy of San Francisco is not enough to offset high

costs‖

PKF reports that 2008 hotel rates will not return until 2014; 2008

operating margins won’t be seen again until 2018; current hotel rates

are 20% lower than 2008. Highest hotel rates were in 1999

www.pkf.com

Managing Costs - Customer Perspective

Buyers are seeking increased costs concessions, more aggressively

seeking F&B discounts, free Wi-Fi

Actively renegotiating hotel rates

International Markets

International attendees can make up 50% for some San Francisco

meetings

San Francisco is the country’s 3rd largest inbound international

destination after LA and New York; San Francisco market share is the

largest at 40% international

Despite a down economy, SFO Airport grew 11% over last year with

new air service from Swiss, Air Berlin, United and Air France

No significant negative perception issues cited by international visitors

http://www.pkf.com/


Wrap Up

Joe D’Alessandro thanked the Council for their constructive feedback

and on-going commitment to San Francisco; these meetings energize

the City and provide a real catalyst for productive changes and

improvements. The Council’s feedback is taken to heart.

Special thanks to the Westin St. Francis and Kimpton Hotels for hosting

the meeting.

Actions Items and Recommendations from the September 2010 meeting

Establish protocol to schedule meetings to address Union jurisdiction

issues; make this part of the site inspection process and follow

through right up to the Pre-Con meeting

All Union costs need to be clearly stated in manuals and show

planner guide

Create a sub-committee to work with Moscone and their tech

consultants in the next few weeks to address network and wireless

issues. Members are Karen Ruel, Kathy Doyle, Sandra LaPedis Toms

and Johnnie White; hotel members are Scott Baublitz & Roxy Stone

Gia Carunchio to review cost comparison spreadsheets

Offer international telephone calling cards and develop SIM card

partnership for international guests; sell at Moscone and in hotels

Create more seating and networking areas at Moscone

Communicate new Moscone way finding color schemes to

planners and show managers

Create and publish Geolocation coordinates for all Moscone

meeting space http://tinyurl.com/yahemfo

Send comments regarding Moscone improvements to Lynn

Farzaroli, Executive Office Liaison [email protected]

http://tinyurl.com/yahemfo

mailto:[email protected]

san francisco customer advisory council september 8 … · san francisco customer advisory council...

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