2016 CORPORATE CONFERENCE CENTER STUDY

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT

I. PREFACE A. Introduction 1B. General Observations 1C. Closing Note 1

II. ALL KEY PERFORMANCE INDICATORS (KPI) Table 1: Key Performance Indicators – Overall 3 Table 2: Key Performance Indicators – By Room Type 3A. General Information 3B. Occupancy Rate 4C. Configurable Room Utilization 4D. Non-Configurable Room Utilization 4E. Total Room Utilization 5F. Cancellation Rate (>48-Hours) 5G. Meetings Per Day (Average) 5H. No Show Percentage 5I. Total Number of Bumped Groups (“Bump Rate”) 6J. Foodservice Usage Percentage 6K. Video Conference Usage Percentage 6

III. DATA INFORMATION A. Average Meeting Length 7B. Operating Service Hours 7C. Track Turned Away Groups 7D. Booking Rules 7E. Track Groups Bumped by Senior Leadership 8F. Track Dollars on External Space 8G. Incentives 8H. Measure No Show Reservations 9I. Appropriate Room Size for Group 9J. No Show Penalty Charge 9

IV. KEY PERFORMANCE INDICATOR (KPI) FORMULAS 10

V. PROFILE OF STUDY PARTICIPANTS 11A. Meeting Room Information 11B. Profile of Participants 11

Table 3: Demographic Information 12

VI. SURVEY QUESTIONS 13

VII. GLOSSARY OF TERMS 14

TABLE OF CONTENTS

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 1

A. Introduction

• SHFM has conducted a small group study on Corporate Conference Center operations. To our knowledge this is the first study of its kind to be conducted exclusively on Corporate Conference Centers. It will be used as a foundation to refine long-term Key Performance Indicators (KPIs) and trends that will set industry standards. The data and industry standards will be used by respondents, members of SHFM and Corporate Conference Centers to improve the day-to-day efficiencies of their Corporate Conference Centers.

• The purpose of this first-time Corporate Conference Center Study is to initiate the process of creating industry standards and benchmarks for on-site Corporate Conference Centers. Key Performance Indicators (KPIs) were established to gather specific data for purposes of creating these industry standards and benchmarks pertaining to non-residential, Corporate Conference Centers.

• The intention of this and future studies is to have Corporate Conference clients and operators adopt a common set of KPIs, and measure on a consistent basis, for the purpose of maximizing space utilization and efficiency, assisting in future space planning and identifying best practices.

• We greatly appreciate the time and effort of all participants. The best use of this data is comparison to your own operations, translations into recommendations to improve methods and practices and recognition of the success of the working teams in your conference services operations.

B. General Observations

• This small group study was comprised of twelve (12) participants who submitted multiple months of operating data.

• Break-out rooms were included in this survey. In future versions, we will identify them separately.

• The results are based on the average total number of days for all reported Operating Periods.

C. Closing Note

• This Study is a statistical monitoring report to measure the efficiency of space within Corporate Conference services. In evaluating your operation, you should also consider additional research into such areas as operating agreement conditions, market conditions and types and levels of service provided to the customers. This benchmarking report should be used as a guide to improve methods and practices of your Conference Center services in the pursuit of continuous improvement.

THANK YOU!

We greatly appreciate the time and effort of all participants.

I. PREFACE

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 2

CORPORATE CONFERENCE CENTERS

A few interesting observations...

80/20 1,696

12523.9%62% 61.5%

Average ratio of Non-Configurable Rooms to Configurable Rooms

Average square footage of Configurable Rooms

Average square footage of Non-Configurable Rooms

Average total meetings per day in Configurable Rooms

Average total meetings per day in Non-Configurable Rooms

Percent more meetings per day in Non-Configurable Rooms than Configurable Rooms

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 3

KPI Configurable Room Non-Configurable Room Meeting Space

Cancellation Rate (>48-Hours) 1.6% 2.0% 0.1%

Meetings Per Day (Average) 30.7 41.3 3.9

No Show Percentage 0.6% 0.6% 0.0%

Total Number of Bumped Groups (“Bump Rate”) 0.13% 0.04% 0.0%

Foodservice Usage Percentage 25.9% 2.9% 52.8%

Video Conference Usage Percentage 2.3% 4.0% 0.5%

Table 2: Key Performance Indicators - By Room Type

A. General Information

The following tables represent the results for all Key Performance Indicators.

Table 1: Key Performance Indicators - Overall

KPI Results

Occupancy Rate 67.6%

Configurable Room Utilization 40.8%

Non-Configurable Room Utilization 146.2%

Total Room Utilization 23.4%

In this first iteration of the Corporate Conference Center Study, room turns are not considered in Occupancy Rate, Configurable Room Utilization and Non-Configurable Room Utilization. In other words, your Occupancy Rate, Configurable Room Utilization or Non-Configurable Room Utilization could track greater than 100%. For example, if you have 10 total rooms in your conference center and five were used once in a day, while five were used for two separate meetings in the same day, Occupancy Rate for that day would be 150%. Note, Total Room Utilization does consider room turns because it measures utilization over the course of all operating hours, which inherently will include room turns.

It’s important to understand the difference between Total Room Utilization and Occupancy Rate, which considers all room types divided by the total number of meetings, regardless of number of seats or square feet per room, or length of time per meeting. Occupancy Rate is a broad measurement.

II. ALL KEY PERFORMANCE INDICATORS (KPIs)

B. Occupancy Rate

KPI: Total Number of Events Total Number of Available Rooms

The total Occupancy Rate for the periods of data provided by participants is 67.6%.

For all available space (Configurable, Non-Configurable Rooms and Meeting Space), 32.4% was not utilized at all.

C. Configurable Room Utilization

KPI: Total Number of Attendees (Configurable Rooms Only) Total Square Feet 15 (Configurable Rooms Only)

Configurable Room Utilization, for the periods of data provided by participants is 40.8%.

Note: The KPI calculation ‘total square feet’ is divided by fifteen (15). This is a common standard utilized as the average number of square feet required per Attendee, and considers various setup types, such theater, classroom and banquet.

D. Non-Configurable Room Utilization

KPI: Total Number of Attendees (Non-Configurable Rooms Only) Total Number of Fixed Seats (Non-Configurable Rooms Only)

Non-Configurable Room Utilization for the periods of data provided by participants is 146.2%.

Again, the metric for Non-Configurable Room Utilization counts the number of times each chair/seat in the room was used, not the number of times the room itself was used. It is not surprising this metric tracks over 100% because non-configurable rooms are often used multiple times throughout a day. To learn about the efficiency of a room size, this metric should be measured alongside individual group sizes and room turns.

Occupancy Rate67.6%

Unoccupied32.4%

Configurable Rooms

0

20

40

60

80

100

40.8%

Non-Configurable Rooms0

50

100

150

200

146.2%

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 4

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 5

E. Total Room Utilization

KPI: Total Number of Hours All Rooms are Utilized per Operating Period Total Number of Rooms Optg. Service Hours Per Day Optg. Days Per Optg. Period

Total Room Utilization, for the periods of data provided by participants is 23.4%. Unlike Occupancy Rate and specific room type Utilization Rates, Total Room Utilization does consider room turns because this metric accounts for all operating hours, which will inherently include multiple meetings in the same room.

F. Cancellation Rate (>48-Hours)

KPI: Cancellations Within 48-hours of Reservation Total Number of Reservations

Reservations that were canceled within 48-hours were the overall highest for events scheduled in a Non-Configurable Room at 2.0%. Following were Configurable Rooms at 1.6% and Meeting Space at 0.1%.

G. Meetings Per Day (Average)

KPI: Total Number of Events per Day Total Number of Days in Operating Period

Non-Configurable Rooms have the highest number of Meetings per Day, with an average number of Meetings per Day at 62.0. Configurable Rooms have 23.9 Meetings per Day on average. Meeting Space has the lowest number of Meetings per Day at 3.3 on average.

H. No Show Percentage

KPI: Total No Show Meetings Total Number of Days in Operating Period

Configurable Rooms and Non-Configurable Rooms have equally low overall No Show Percentage, at 0.6%.

Meeting Space reflected a No Show Percentage of 0.0% for the Operating Periods of data provided.

0

5

0

1.5

0

2.0%

0.1%

1.6%

Configurable Rooms

Non-Configurable

Rooms

Meeting Space

Total Room Utilization23.4%

Not Utilized77.6%

Configurable Rooms

Non-Configurable Rooms

Configurable Rooms

Non- Configurable

Rooms

Meeting Space

0

0.2

0.4

0.6

0.8

1.0

0%

0.6%

01020304050607080

62.0%

3.3%23.9%

I. Total Number of Bumped Groups (“Bump Rate”)

KPI: Total Number of Bumped Groups Total Number of Reservations

A “Bumped Group” is a Group that was relocated or rescheduled due to senior leadership requesting to utilize the Room or Meeting Space after it was booked.

The overall Bump Rates are very minimal for both Configurable Rooms, at 0.13% and Non-Configurable Rooms at 0.04%. Meeting Spaces had no bumped reservations for the periods of data provided by participants.

J. Foodservice Usage Percentage

KPI: Total Number of Catered Events Total Number of Reservations

The overall Foodservice Usage Percentage is the highest at 52.8%, for those Events conducted in Meeting Space at a Facility.

At 25.9%, Events conducted in Configurable Rooms have less than one-half the Foodservice Usage Percentage as Meeting Spaces.

Non-Configurable Rooms have the lowest Foodservice Usage Percentage at 2.9%.

K. Video Conference Usage Percentage

KPI: Total Number of Video Conferences Conducted Total Number of Events Conducted

Non-Configurable Rooms have the overall highest Video Conference Usage Percentage at 15.6%, while Configurable Rooms have 10.4%. Meeting Space had no Video Conference usage.

These results correlate with the results for the Meeting per Day (Average).

0.13%

0.04%

Configurable Rooms

Non-Configurable Rooms

0

0.03

0.06

0.09

0.12

0.15

Configurable Rooms

Non-Configurable Rooms

Configurable Rooms

Non-Configurable

Rooms

Meeting Space

30.7%

0

10

20

30

40

50

60

25.9%

52.8%

2.9%

0

5

10

15

20

15.6%10.4%

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 6

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 7

D. Booking Rules

BOOKING RULES 91.7% The majority of participants, 91.7%, have booking rules that are monitored for compliance, while only 8.3% of participants do not utilize monitored rules.

A. Average Meeting Length

Based on participant responses, 41.7% of total meetings are 4-hours in length, followed by 25% at 2-hours and 8.3% lasting either 1-hour or 8-hours. This KPI suggests there might be opportunity to turn rooms more frequently, particularly in rooms where meetings last only 1 or 2 hours and should be examined alongside Occupancy Rate and each of the Room Utilization metrics.

B. Operating Service Hours

Operating Service Hours are the actual number of hours a conference center is open for operation. Of participants surveyed, 46.2% are open for eight-hours of operations per business day.

Almost fifty-four percent (53.8%) of participants reported “Other” as their Operating Service Hours for participants in this category range from nine-hours to 24-hours per day, with the average at 9-hours per day.

C. Track Turned Away Groups

63.6% TRACK TURNED AWAY GROUPSThe majority of participants, 63.6%, track the number of Turned Away Groups, while 36.4% of participants do not track how many groups are turned away.

III. DATA INFORMATION

0

10

20

30

40

50

41.7%

25.0%8.3%1-Hour 2-Hours 4-Hours 8-Hours Other

8.3%23.1%

01020304050607080

YES NO

63.6%36.4%

YES NO

91.7%

8.3%

Operating Service Hours

7 am 8 am 9 am 10 am 11 am 12 pm 1 pm 2 pm 3 pm 4 pm 5 pm 6 pm After 6 pm

8-Hours

Other 10 Average Service Hours per Day for “Other”53.8%8 Service Hours per Day46.2%

0

20

40

60

80

100

F. Track Dollars on External Space

75.0% DO NOT TRACK DOLLARS SPENT ON EXTERNAL SPACEThe majority of participants, 75.0%, do not track the dollars spent on external space as a result of no Room or Meeting Space availability for a requested reservation. Only 25.0% of participants track this information.

E. Track Groups Bumped by Senior Leadership

50.0% TRACK BUMPED GROUPSAn equal number of participants, 50% track Groups that are bumped by senior leadership.

G. Incentives

100.0% NO INCENTIVES TO BOOK IN LOW DEMAND PERIODSNone of the participants offer any incentives to book meetings in low demand periods.

YES NO0

10

20

30

40

50

60

50% 50%

01020304050607080

25.0%

75.0%

100.0%

YES NO

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 8

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 9

H. Measure No Show Reservations

50.0% MEASURE No Show RESERVATIONSParticipants who measure the number of No Show reservations in a week responded equally, at 50%.

I. Appropriate Room Size for Group

91.7% REQUIRE APPROPRIATE ROOM SIZE The majority of participants, 91.7% require Groups to use a Room with a capacity appropriate to the Group size, while only 8.3% do not have these requirements.

Example: A group of 10 is required to use a room appropriately sized to the number of registrants, rather than a room for 25, even if it’s not their “preferred” space.

J. No Show Penalty Charge

83.3% NO PENALTYOf participants surveyed, 83.3% do not charge a penalty for Groups that do not cancel or are No Show reservations.

91.7%

8.3%

YES NO0

20

40

60

80

100

YES NO

83.3%

0

20

40

60

80

100

YES NO0

10

20

30

40

50

60

50% 50%

16.7%

Dollar amounts were not provided for the No-Show penalty charge.

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 10

Bump Rate*

Total Number of Bumped Groups Total Number of Reservations

Cancellation Rate (>48-Hours)*Cancellation Within 48-hours of Reservation Total Number of Reservations

Configurable Room UtilizationTotal Number of Attendees (Configurable Rooms Only) Total Square Feet 15 (Configurable Rooms Only)

Foodservice Usage PercentageTotal Number of Catered Events Total Number of Reservations

Meetings per Day (Average)Total Number of Events per Day Total Number of Days in Operating Period

No Show PercentageTotal No Show Meetings Total Number of Reservations

Non-Configurable Room UtilizationTotal Number of Attendees (Non-Configurable Rooms Only) Total Number of Fixed Seats (Non-Configurable Rooms Only)

Occupancy RateTotal Number of Events Conducted Total Number of Available Rooms

Total Room UtilizationTotal No. of Hours All Rooms are Utilized per Operating Period Total Number of Rooms Operating Service Hours perDay Operating Days per Operating Period

Video Conference Usage PercentageVideo Conferences Conducted Total Number of Events Conducted (Occupancy)

IV. KEY PERFORMANCE INDICATOR (KPI) FORMULAS

The following formulas can be used to calculate your actual statistical information for measuring the performance of your operations by Operating Period or Year-to-Date. KPI are a valuable resource to identify areas of improvement in methods and practices.

THE ROAD TO SUCCESS...

Strategic use of these Key Performance Indicator formulas will help you achieve annual operational and financial goals when used for the following:

• Space Optimization

• Reduce Off-Site Meetings

• Plan for Future Trends

• Create Best Practices

• Actionable Data

• Increase Catering

• Performance Incentives

• Management Reporting * For purposes of this study, not divided by average Operating

Days per Operating Period.

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 11

V. PROFILE OF STUDY PARTICIPANTS

A. Meeting Room/Space InformationMEETING ROOM/SPACE TYPESInformation was gathered for Configurable and Non-Configurables Rooms and Meeting Space. The highest quantity of room types at an average of 58.9 are Non-Configurable Rooms with Configurable Rooms at 14.8 and Meeting Space at 7.1.

On average, buildings surveyed assign the highest number of square feet to Configurable Rooms at 25,102.6 square feet, followed by Meeting Space at 22,530.3 square feet, and finally Non-Configurable Rooms which make up an average of 9,481.3 square feet.

B. Profile of ParticipantsAUDIO VISUAL (AV) SERVICESThe highest number of participants 50.0% Self-Managed their audio visual (AV) services by the Owner. The following at 33.3% are participants who contract services to a Conference Management Company.

The category “Other” represented 16.7% of participants. Their responses indicated using an audio visual company and a combination of the Owner and Contract Management Company for these services. No participants solely utilize a third party rental for their audio visual services.

CONFERENCE CENTER TYPE All participants for the study have a Non-Residential Corporate Conference Center.

FACILITY MANAGEMENT Over 41.7% of the conference facilities are Self-Managed with Contracted Services, followed by 33.3% of participants who utilize a Management Company. Participants who responded that their Corporate Conference Center is Self-Managed is 25.0%.

FACILITY POPULATIONThe highest participation at 58.3% was from facilities with a >3,500 population, followed by the 0-900 population range at 25.0% and 1,801-3,500 population range at 16.7%. There were no participants with a population range of 901-1,800.

FACILITY REGIONNew York City, the Northeast and the Southeast regions each had 25.0% participation; while the Midwest, Southwest and West Coast each had 8.3% participation. No data was provided from facilities in the Mid-Atlantic or Northwest regions.

Configurable Rooms

Non-Configurable

Rooms

Meeting Space

0

10

20

30

40

50

60

58.9

7.114.8

Average Number of Room Types

Configurable Rooms

Non-Configurable

Rooms

Meeting Space

9,481.3

22,530.325,102.6

0

5000

10000

15000

20000

25000

30000

Average Total Square Footage of Space

INCLUDE COMPANY NAME AS A PARTICIPANT

The highest number of participants, 75.0%, indicated they did not want their name included in the report as a participant, while only 25.0% indicated it was acceptable to include their company names. Based on the high number of participants who did not want their name included, participating company names have not been included in the report.

INTERESTED IN BEST PRACTICES REGARDING CONFERENCE SERVICES

At 91.2%, almost all participants indicated they are interested in being contacted to participate in best practices regarding conference services, while only 8.3% indicated they are not interested in this activity.

Table 3: Demographic Information

The table at the right shows demographic results of participants.

Responses

Audio Visual (AV) ServicesContracted to Conference Management Company 33.3%

Self-Managed by Owner 50.0%

3rd Party Rental 0.0%

Other 16.7%

Conference Center TypeCollege/University Conference Center 0.0%

Corporate Conference Center - Non-Residential 100.0%

Other 0.0%

Facility ManagementSelf-Managed 25.0%

Management Company 33.3%

Self-Managed with Contracted Services 41.7%

Facility Population0-900 25.0%

901-1800 0.0%

1801-3500 16.7%

>3500 58.3%

Facility RegionMid-Atlantic 0.0%

Midwest 8.3%

New York City 25.0%

Northeast 25.0%

Northwest 0.0%

Southeast 25.0%

Southwest 8.3%

West Coast 8.3%

Interested in Best Practices Regarding Conferences ServicesYes 91.2%

No 8.3%

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 12

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 13

VI. SURVEY QUESTIONS

The study was distributed to SHFM member types of Client Liaison or Self-Operator. Following are the questions that were included in the survey.

QUESTION RESPONSES

For purposes of developing best practices regarding conference services, SHFM would like to connectmembers who are responsible for Conference Services. Are you interested in being contacted to participate in best practices regarding conference services?

Yes No

Please indicate if it is acceptable to include your company name as a participant in the Executive Summary Report. Note:  All data is reported in aggregate only.

Yes, it is acceptable to use our company name as a participant.No, please do not use our company name.

CONTACT INFORMATION NOTE: Please provide the contact information for the SHFM member who will receive the Executive Summary Report.

Contact Name:Company Name / Owner (Not Contractor’s Company Name):Name of Facility you are entering data for:Contact Email:Contact Phone:Person Entering Data:Person Entering Data Email:

Facility: City State

Facility Region:

Mid-Atlantic Midwest New York City Northeast

NorthwestSoutheastSouthwestWest Coast

Facility Population: 0-900 901-1,800

1,801-3,5003,500+

Facility Management:Self-ManagedManagement CompanySelf-Managed with Contracted Services

Conference Center Management Company (Operator):Aramark Business DiningCompass Group, NAD

Sodexo, Inc.Other

Audio Visual (AV) Services:

Self-Managed by OwnerContracted to Conference Management Co. 3rd Party RentalOther

Please select the type of Conference Center:College/University Conference CenterCorporate Conference Center — Non-ResidentialOther

What is the average meeting length at this Facility:1 Hour 2 Hours 4 Hours

8 HoursOther

What are your Operating Service Hours Per Day: 8 Hours Other

Do you have more than one Operating Period of data to enter for this Facility? Reminder ... You may enter data for up to two Operating Periods. Please use your data from April and/or May 2016.

YesNo

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 14

QUESTION RESPONSES

Please provide the following Operating information for the data you are entering:

Year (Enter as 4-digits: xxxx)Month (Enter as 2-digits: xx)Days in Operating Period

Please answer “Yes” or “No” for the following questions:• Do you track Turned Away Groups because lack of space or quality of rooms?• Do you have booking rules that are monitored for compliance?• Do you track Groups that are bumped by senior leadership?• Do you track the dollars spent on external space as a result of no Room or Meeting Space availability for

requested reservation?• Do you offer incentives to book meetings in low demand periods? Examples: No room charge, or no AV charge,

or accessibility to Rooms or Meeting Space not usually available to the group placing a reservation.• Do you measure the number of No Show reservations in a week?• Do you require Groups to use appropriately sized rooms? Example: A group of 10 is required to use a room

appropriately sized to the number of registrants, rather than a room for 25, even if it’s not their “preferred” space?• Do you have a penalty charge if a Group does not cancel or No Show?

Amount Charged per No Show: Text fill in

QUESTION (FOR KPI RESULTS) Configurable Room

Non-Configurable Room Meeting Space

Room and Meeting Space information for this Facility. Please tell us about your Rooms / Meeting Space for this Facility.

NOTE: Please enter data as numbers in digit format.

Configurable Room — Room in which furniture can be moved in/out and configured to accommodate various types of Events.Non-Configurable Room — Room with furniture that is fixed and cannot typically be moved or reconfigured.Meeting Space — A section in the Facility, which can be utilized for Events and meetings, but is not a Room.

• Total Number of each type of Room / Meeting Space:• Total Number Square Footage of Space:• Total Number of Fixed Seats (Non-Configurable Rooms Only)

Data Results for Operating Period.

Please enter the data for Rooms / Meeting Space for THIS OPERATING PERIOD ONLY.

NOTE: Data is the total raw data results for the applicable Operating Period.

• Total Number of Reservations • Total Number of Attendees • Total Number of actual Events conducted for each type of Room /

Meeting Space (do not include No Show Events) • Total Number of Cancellations within 48-hours of Reservation • Total Number of No Show Meetings • Total Number of Bumped Groups • Total Hours each type of Room / Meeting Space was Utilized• Total Number of Video Conferences Conducted• Total Number of Meetings that Included Catering

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 15

Attendee – A pre-registered individual actually present at any conference or Event.

Attrition Rate – The rate at which an Event decreases in size or the number of Registrants who do not show up on the day of the Event (i.e., No Shows) divided by the number of Registrants registered for an Event. For example, if 100 people register for a conference, but only 70 people attend the conference, the Attrition Rate for the conference would be 30%.

Benchmark – A measured “Best Practice” achievement.

Benchmarking – The process of comparing one’s business processes and performance metrics to industry bests and best practices from other companies. Key Performance Indicators (KPIs) typically measured include quality, productivity and cost.

“Benchmarking is creating solutions based on a firm knowledge base. It is not copying the best.” - H. James Harrington

Block – Seats or a set of Rooms set aside for group sale; to reserve such space.

Blocked Space – Sleeping rooms, exhibit, Event or other function space reserved for future use by an individual or organization.

Bumped Groups – Groups that were relocated or rescheduled due to senior leadership requesting to utilize the Room or Meeting Space after it was booked.

Bump Rate – The total number of Bumped Groups divided by Total Number of Reservations.

Cancellation Rate (>48-Hours) – The total number of Cancellations with less than 48-hours notice divided by the Total Number of Reservations.

Cancellations – The total number of Groups that provided notification they would not conduct their registered Event, within or outside the cancellation policy.

Catering – Specific, extraordinary services to provide food and beverages for meeting support and special Events.

College/University Centers – A higher educational institution typically owns these conference centers. Core events are normally focused on college/university guests, executive MBA programs or non-affiliated Groups.

Concierge – Person at Conference Center who can arrange for transportation, tours, tickets or restaurant reservations.

Configurable Room – Room in which furniture can be moved in/out and configured to accommodate various types of Events.

Configurable Room Utilization – Total number of Attendees (Configurable Rooms only) divided by the total square feet ÷ 15 (Configurable Rooms Only).

Contract Management Company – Person or management company responsible for operating the conference center.

Corporate Conference Center – A venue, which provides a dedicated environment for Events, especially small Events.

Customer – Individual who schedules Event reservation with the Corporate Conference Center.

Customer Satisfaction Rating – Data gathered from Attendees regarding key areas of the Corporate Conference Center to assimilate the level of satisfaction and identify areas for improvement.

Data Pool Average (DPA) – Represents the average of the data pool in a particular sort.

Days in Operating Period – The actual days in the Operating Period the Facility is open for operation (less holidays).

Discretionary Services (Services) – Any resources that are supporting a meeting or Event such as audio visual, security, housekeeping or other services provided.

Divisible Space – A larger meeting area that can be partitioned into smaller space(s) by using movable walls or panels.

Event – An arranged occasion requiring reservations at the Corporate Conference Center. Examples include meeting, convention, exhibition, conference, special Event, gala dinner, etc.

Events Conducted – The Total Number of Reservations divided by the actual Events conducted in an Operating Period.

Executive Conference Centers – Groups utilizing are commonly corporations, associations and other organizations that emphasize the quality of accommodations and services over price. Facility Events are primarily upper-level management meetings and training/seminars. Facilities are usually equipped with state-of-the-art equipment and located near urban areas.

External User – A Group member who is not an employee of the Owner that has permission to make reservations at the Owner’s conference center.

Facility – The entire building or location where the conference services occur.

Fixed Seating – Seating in a Room or Meeting Space that are permanently positioned, not able to be moved.

Foodservice Usage Percentage – The total number of Catered Events divided by the Total Number of Reservations.

Green Events – Broad guidelines for a greener Event include that it should be organized electronically, minimize carbon emissions for traveling delegates and speakers, save energy, practice recycling, and adopt environmentally thoughtful measures wherever practical and possible.

Group – An Internal or External User who reserves a Room or Meeting Space, for a specified number of Registrants, at the conference center for purposes of conducting an Event.

Group Size Average – The total number of guaranteed Registrants for an Operating Period divided by the total number of Groups that conducted a meeting or Event within the Operating Period.

Internal User – An employee of the Owner who completes a reservation to utilize a Room or Meeting Space at the conference center.

Key Performance Indicator (KPI) – A Core Issue or Quality Indicator; the limited number of measurements in which results, if satisfactory, will ensure successful competitive performance for organizations or companies.

VII. GLOSSARY OF TERMS

SOCIETY FOR HOSPITALITY AND FOODSERVICE MANAGEMENT 16

Meeting Space – A section in the Facility, which can be utilized for Events and meetings, but is not a Room.

Meetings per Day (Average) – The total number of Events that were conducted per operating day, divided by the total number of Days in Operating Period. This is a productivity measurement often used to identify the number of required meeting planners per meeting.

No Show – An expected Registrant who does not attend a scheduled Event and the reservation is not used.

No Show Meetings – The number of meetings that no one used the Room or Meeting Space that was confirmed.

No Show Percentage – The total number of No Show Meetings divided by the Total Number of Reservations.

Non-Configurable Room – Room with furniture that is fixed and cannot typically be moved or reconfigured.

Non-Configurable Room Utilization – Total number of Attendees (Non-configurable Rooms only) divided by the total number of Fixed Seats (Non-configurable Rooms only).

Non-Residential Corporate Conference Center – These conference centers only have Rooms and Meeting Space; no sleeping rooms.

Number of Available Rooms – The actual number of Rooms available for Occupancy in the Operating Period (subtract Rooms out of inventory).

Occupancy – The total number of meetings actually conducted per day.

Occupancy Rate* – Total number of actual Events conducted divided by total number of available Rooms.

* Please note: The usage percentage could be above 100% due to multiple turns of a room per day.

Online Reservation System – A software application or booking tool used to track meeting Rooms or reservable Meeting Space reservations.

Operating Days per Year – Total days in a fiscal year during which the conference center is operated.

Operating Period – A period of consecutive days designated by the Owner to divide the operating year into 12 or 13 reporting periods, based on the Owner’s fiscal calendar.

Operating Service Hours – Specified times in a business day, Monday through Friday, which the conference center is open and provides services.

Owner – Corporation, college/university, or other that owns the Facility.

Peak Utilization Time – A timeframe in the day, week or month that is highly desirable for Groups to schedule Events at the conference center.

Percentage of Meetings using Discretionary Services – The number of meetings using Discretionary Services divided by the Total Number of Meetings.

Pop-Up – Unplanned catering order that comes up on the same day as required Service, usually within hours or minutes of desired delivery/Event time.

Registrants – The total number of individuals guaranteed to attend a specific Event that is registered to occur at the conference center.

Residential Conference Center – These conference centers have sleeping rooms available for Registrants, as well as Rooms/Meeting Space.

Room (Meeting Room) – A purpose built room provided for singular Events and meetings.

Room Set-Up – The layout and arrangement of a meeting Room specified by the Customer, using equipment, chairs, tables and other furniture.

Room Utilization – Total number of hours per day a specific Room is utilized in an operating day divided by the total Operating Service Hours in an operating day.

Self-Managed – Conference center is owned and operated by Owner.

Self-Managed with Contracted Services – Owner conducts and manages the operations of the Conference Center Services with certain components of the Services to be contracted (AV, telecommunications, transport operators, interpreters and translators, after-dinner speakers, entertainers, corporate events companies, specialty caterers, floral contractors, exhibition/exposition contractors, and/or companies which develop specialty computer software).

Square Footage (Usable) – The total square feet that can be used for Attendees in a Room or Meeting Space.

Total Number of Attendees – The total of all Registrants actually present at any conference or Event.

Total Number of Catered Events – The total of Events in an operating day utilizing Catering Services.

Total Number of Reservations – The total number of actual reservations that were conducted in an Operating Period.

Total Number of Seats – Total number of attached or assigned seats in a Non-Configurable Room or Meeting Space.

Total Room Utilization – The total number of Hours all Rooms are utilized per Operating Period divided by total number of Rooms times Operating Service Hours per day times operating days per Operating Period.

Turned Away Groups – The total number of Groups in an Operating Period that were not able to complete an Event registration due to lack of availability of the type of Room/Meeting Space and/or the timeframe.

Video Conference Hours Reserved – The total number of reserved hours for Video Conferencing to be conducted in an Operating Period.

Video Conferences – A meeting, instructional session or conversation between people at different locations relying on video technology as the primary communication.

Video Conferences Conducted – The total number of Video Conferences that were conducted per Operating Period divided by the total number of actual Events conducted (Occupancy).

Video Conferences Time Actual – The total number of actual hours Video Conferencing was conducted in an Operating Period.

Video Usage Percentage – Total number of days in an Operating Period divided by the Video Conferences Conducted.

Webinar – A seminar conducted over the Internet.

328 East Main StreetLouisville, KY 40202Phone: 502.574.9931Fax: 502.589.3602

Email: shfm@hqtrs.com Website: www.shfm-online.org