Event organisers are responsible for many elements of the event planning process. Some event organisers may get so consumed by the logistics associated with organising an event that they don’t leave enough time to develop a sound event budget.

A structured budget helps to monitor costs associated with running the event, gives you an idea of what you can afford and assists you in reporting to management on the financial viability of the event.

Firstly, you need to determine your anticipated expenditures for your event, including venue hire costs, advertising and promotion, event program design and printing, guest speakers/performers costs (including travel), accommodation, catering, equipment/AV, staff costs, administration and printing.

Then you need to determine what income you might receive in order to offset the expenses. This might include registrations/tickets, sponsors and merchandise sales.

The next step is to look at ways to cut costs associated with organising the event. However, it’s vital not to devalue the event in the process, and ensure that all those involved are happy.

Julius Solaris is the editor of the Event Manager Blog and has provided below some handy tips on how you can cut costs for your next event:

One versus multiple events

One main event, where possible, helps you in leveraging your financial/promotional/logistic efforts. Obviously you would need to have content that could be wrapped together into one event.

One versus multiple suppliers

Working with a trustworthy supplier gives you more bargaining power, however this does not come without risks. It is also useful to have a backup plan to sort out last minute AV or catering issues.

Publishing

Do your own publishing where possible. There are several free tools to come up with sound promotional material.

Video conferencing

For meetings and conference organisers, use online tools as much as you can. Try to limit the speakers to 80 per local and 20 per non local, which will in turn decrease the costs associated with travel and accommodation.

Come up with a sound sponsorship strategy

Sponsors can help in reducing the leverage on ticket sales as the main source of income and therefore taking away some of the risk of a loss at the end of the event.

Look for discounts and negotiate

Bulk up and ask for a good price and let them know you are considering different options.

Look out for funds

Leverage off potential interest from your local community that may have some funds available to support your event or a particular component of your event.

What other ideas do you have that an event organiser should do to cut costs to ensure a successful event?

More than half of all people get recommendations and reviews from friends, family or strangers on social media platforms before booking a holiday. With this in mind, Facebook has become a must-have in any hostel marketing strategy and every hostel should have its own page.

According to this research, 54 per cent use sites such as Facebook and Twitter to ask opinions of people who have personal experience of certain accommodation.

The research was carried out among more than 1100 holidaymakers who had been abroad in the past two years. Nearly all respondents (98 per cent) said they did some research before going on their last holiday.

When asked to select from a list of possible research tools, 49 per cent confirmed they researched using social media platforms – and 61 per cent of this group said Facebook was one of the sites they used.

With this in mind, below are some handy tips recommended by evolution, the hospitality e-commerce and e-distribution provider, to maximise your presence on Facebook:

1. Create a custom URL for your Facebook page

Search engines are indexing Facebook and are returning these URLs in results. Simply visit http://www.facebook.com/username and follow the instructions. Your URL cannot be changed once it is set, so make sure you choose carefully.

2. Promote your visual identity through video

Promote your hotel through video on your Facebook page. Create general videos or niche-specific videos and use YouTube to host and share them on your page. Alternatively, you can upload them directly.

3. Use Facebook insights

Through your Facebook insights page, you’re able to analyse which types of posts are the most popular, monitor fan growth and interaction, see page views and track impressions.

4. List the hotel on Facebook Places

Make sure you’re listed as a hotel in Facebook Places. Encourage users to ‘check in’ via Facebook Places by offering an incentive such as a free drink in the bar or a ‘money off’ voucher for a certain number of check-ins.

5. Use the reviews application

The reviews app allows guests to leave honest reviews and opinions of the hotel.

6. Run competitions to encourage interaction

Running a competition on Facebook is a great way of increasing fans and interaction. Be careful – Facebook has guidelines on what you can and can’t do so make sure you read these rules carefully and if necessary use a third party application to run a competition.

7. Customise your page with a welcome page

You can change the settings of your page so every new user automatically lands on your welcome page.

8. Use Facebook questions

You can create quick polls to gather opinions and learn about your potential guests or ask questions – great if you’re thinking of trialling new services or want to put together packages. To get started, visit www.facebook.com/questions.

9. Use Facebook advertising

The beauty of advertising on Facebook is that you can target your preferred demographic based on a user’s profile information. So whether you want to target 20-something women, men who like golf or married couples, you can reach these markets through Facebook. Before you even place an ad, you can use the advertising platform to see how many people are in a certain demographic and then add or remove filters if necessary. You can get started easily by visiting http://www.facebook.com/advertising.

10. Allow users to book directly from Facebook

Think about offering a direct booking functionality through Facebook by installing your own booking widget. It allows access to your booking engine where customers are able to check rates and book special packages created just for them by assigning special rates and offers only available through the Facebook booking channel.

Using Facebook to its fullest can give you an edge over your competition, as well as generating a lot of traffic to your website’s booking engine, with search engines like Google taking account of interaction with social websites and Facebook in its search algorithm.

With Facebook increasingly becoming one of the more favourite platforms of researching a holiday destination and accommodation, are you using it to its full potential? Are you able to share any other ways to maximise your presence on Facebook and use this free marketing tool to your advantage?

Research undertaken by Tourism Australia and Tourism Research Australia on the impact of the increasing Australian dollar on the Australian tourism industry indicates that exchange rates are not as influential in determining travel behaviour as some may believe.

According to this research, the exchange rate has more bearing on tourism expenditure than visitation and has a modest influence on destination choice and travel purchases, with the fundamental driver of tourism for Australia being the economic growth of source countries and the subsequent income, wealth and consumer confidence of their people.

The researchers also found travel decisions are impacted by a complex and interrelated set of variables, which differ by market, travel type and age. While exchange rates are one factor in explaining the travel choices of both Australian and international travellers, their impacts are relatively modest and short-term.

Other influences include airfares and costs associated with the trip purchase, such as accommodation and visitor attractions.

The researchers found:

• A high Australian dollar has more impact on visitors’ spending once they arrive in Australia and less impact on international visitor numbers and nights.
• Different travel segments respond in different ways to exchange rates when it comes to their travel decision-making.
• In choosing Australia, the exchange rate between the source country and Australia was found to play a greater role in the purchasing decision than the country’s overall exchange rate performance.
• Current exchange rates in the US, UK and Euro-zone partly reflect the current weakness in their respective economies.
• The impact of exchange rates is greater on domestic tourism than international tourism, although income is likely to be the biggest driver.
• Australians travelling for holiday purposes are the most responsive to exchange rates, while those visiting friends and relatives are the least.

The outcomes from this research present both challenges and opportunities for the Australian tourism industry. Strong growth in economies such as China and India will present significant opportunities, with the latest international arrivals figures continuing to show the growing importance of Asia as the key driver of Australian’s international tourism growth.

However the greatest challenge is the increasing number of Australians able to afford, and choosing to travel overseas.

Have you noticed a drop in visitors to your business during the time of the increase in the Australian dollar? Let us know.

Social media is fast becoming a preferred communication method for hotels and is a great platform for hoteliers and their managers to communicate socially with their customers, handle customer feedback and complaints in real time.

The problem with most traditional customer service methods is that information takes way too long to reach the proper sources, and in some cases employees could even intercept customer complaints and comments. This lack of customer service could destroy a hotel’s reputation with customers and ruin potential advertising and future revenue.

Social media allows customers to have answers to their issues and problems in real-time, which means queries can now be answered or handled in minutes as opposed to days. This helps keep potential return visitors happy and provides free advertising and customer relations, as well as maintaining a positive public presence which other potential customers will see.

Twitter is a great way for hotels to communicate with customers and below are some top tips to use it to its full potential and effectively.

• The hotel manager or CEO can use Twitter to share his/her personal thoughts and opinions. This is recommended for smaller chains or single hotels where the manager or owner is in the public eye.
• Use Twitter for market research purposes and ask questions of your followers and customer base. It can also be used to poll for statistics and information on future business promotions.
• Use Twitter as a hiring tool to replenish and renew staff, while also bringing lots of attention to your business.
• Announce contests and giveaways and allow followers to participate.
• Announce media appearances and published mentions. If someone talks about your hotel or business, then let everyone know!
• Retweet related content, sources and businesses. Show some love for other hotels and companies, because eventually they are likely to return the favour.
• Offer real-time information and updates about your business and hotels.
• Retweet customer messages and feedback, especially positive feedback.
• Share information, articles, blogs and local hotel news via links and social media.
• Use Twitter to respond to customer questions, comments and concerns. This is the most commonly used method for establishing a Twitter account.

There are many rewards of a social media customer service platform, including real time communication, a free medium to promote your business and the ability to deal with complaints or problems almost immediately.

Does your hotel use Twitter to communicate with your customers and does it work?

Recent research shows the numbers of British backpackers travelling through Australia is slowly decreasing, and are being overtaken by cashed-up Chinese tourists keen to spend big in luxury and upmarket stores.

In the three months to March, 188,600 visitors travelled here from Britain, a decrease of 11.7 per cent relative to the same period last year. Meanwhile visitors from China increased by 23.2 per cent to 179,500 during the same three month period – by far the largest increase of any country.

On average, Chinese visitors spend $6803 each during their trip. Those in the 15 to 29 age bracket stay for an average of 112 nights, twice as long and spending twice as much as British tourists of the same age.

Although this surge in Chinese tourists is great news for Australia, the challenge now for the Australian tourism industry is fully understanding Chinese travellers and adapting to meet the demands of this rapidly expanding wealthy middle class.

“China is a huge country with many, many different target audiences, and we need to spend time gathering the insight to understand them, work out what it is that’s going to attract them, what they want to do and see when they get here, what they want to eat, and then make sure we build a product around that,” Tourism Australia’s Frances-Anne Keeler recently said.

“We have an amazing product in Australia for all types of customer requirements, it’s just understanding what the specific Chinese customer wants that we’re targeting, and making sure we’re delivering that.”

VTIC will be holding a Cultural Awareness Workshop focussing on developing skills in communicating with the emerging Chinese and Indian markets on 15 June in Melbourne. Click here for more information.

What else can we do to ensure we are providing the right product and experience in Australia for this surging market?

According to a recent report from Deloitte Australia, the tourism, hospitality and leisure sectors have softened due to the high Australian dollar and increasing interest rates.

The Hotel Market Outlook for the second quarter of 2011 states that the economic impact on the tourism, hospitality and leisure sector will be high for as long as the Australian dollar remains close to parity with the US dollar.

The report also suggests that consumers are becoming more cautious, with Gen Ys realising they haven’t saved enough for their burgeoning family responsibilities, while all generations are feeling the sting of higher interest rates.

The report states that overall room occupancies through Australia are forecast to remain relatively constant for 2011, while the average room rate is expected to grow by 5.2 per cent to $146, resulting in revenue per available room (RevPAR) increasing by $4.35 (4.9 per cent) to $93.

For Melbourne, the RevPAR increased by five per cent to $138.46 in 2010. Room occupancy matched Deloitte’s forecast at 79.8 per cent, while the average room rate of $173.44 narrowly exceeded the forecast.

Looking ahead to 2012, average room rates are set for double-digit growth of 11 per cent to $204, increasing RevPAR by 12.5 per cent to $169.

The key city markets throughout Australia continue to record improvements in performance, primarily due to an almost total absence of new supply and the significant increase in corporate-based demand.

With an absence of any major additions to the supply of hotel accommodation for more than a decade and not expected to until 2014, there is significant investment potential in several key locations within Australia.

With no increase in supply in the foreseeable future, has this resulted in unprecedented room occupancy levels at your accommodation property and provided more opportunities for you to drive up room rates? We’d be keen to hear your experiences.

Recent research conducted by ATEC confirms Australia is still ranked as the world’s most must-see destination by backpackers and gap year travellers, who also say they would like to return to the country at some point.

The survey of almost 1000 backpackers, undertaken by ATEC in association with Tourism Australia, shows that even in the face of fierce competition from other destinations and a strong currency, Australia is still on the top of the ‘bucket list’ for most tourists and backpackers.

The survey found the perceived stereotypes of kangaroos, sunshine, beaches and surf were still a major drawcard, and the ability to work while in Australia was of high importance, with almost 50 per cent planning to work whilst visiting.

According to ATEC’s Managing Director, Felicia Mariani, Australia remains a highly desirable place for the backpacker market. It’s a dream destination for those looking for excitement and adventure.

There’s some concern in the industry however that Australia’s backpacker market is under threat from major international destinations and that we now have to fight harder to keep high tourist numbers.

Competitors are using the high Australian dollar and the complex logistics of travelling around the entire country to their own advantage in an attempt to deter people from coming down under.

The key to Australia maintaining its lead is selling the country’s unique experiences and the ability to work and travel while here in Australia, overcoming the obstacles of travellers and the high Aussie dollar.

What can the tourism industry do to maintain its status as THE place to visit, work and travel?

Over the past few years, the combined efforts of Tourism Australia, leading city and regional convention bureaux and major convention centres across Australia have made it easier for Australia to compete and be successful on the world stage in attracting business events. Australian associations at a local or state level have much to gain from hosting and attracting international events. Not only is there an opportunity to increase and gain new members, but the events also provide an opportunity to connect and share ideas with people from around the world.

Hosting international events not only benefits the associations that host them, but also provides wider economic benefits for the whole country as well.

Delegates who attend these events will use our accommodation properties, eat at our restaurants and shop at our retail outlets, all resulting from a greater economic impact to the entire community.

The task now is to encourage more international events to come to Australia, and encourage more Australian associations to consider the advantages of hosting one.

There also needs to be some tools and resources available to help these associations attract more conferences and delegates.

What can the events industry do to further promote Australia as an attractive place to hold a conference? What tools need to be developed to assist the Associations in hosting these events?

Let us know your thoughts!

The Federal Government is set to conduct a review of a range of visa classifications, which should be widely welcomed in the local tourism industry.

The review will look at the following with an aim to keep Australia competitive in the international tourism marketplace:

• Working Holiday Visa  – also known as the Working Holiday Maker Visa, which gives young people between the ages of 18 and 30 the opportunity to enjoy an extended stay in Australia for up to 24 months.
• Student Visa  – these are divided into visa subclasses based on the principal course of study in Australia.
• Tourist Visa  – the Electronic Travel Authority for Australian Tourist Visas is the most advanced and streamlined, and replaces visa labels or stamps plus removes the need for application forms. This visa allows you to stay in Australia for up to 3 months on each arrival within 12 months from the date the visa was granted.

ATEC’s Felicia Mariani recently said there are currently too many roadblocks to Australia as a tourist destination including the rising Australian dollar, increasing fuel surcharges, the passenger movement charge, along with the cost and complexity lf getting a visa.

This review and removal of these roadblocks will ensure that Australia is a more attractive place to visit, work and study.

We’ll make sure to keep you up to date with the progress of the review here on the VECCI Blog.

What other things can the tourism industry do to increase international visitation and make Australia the place to be?

The Department of Sustainability and Environment (DSE) has released its Regulatory Impact Statement (RIS) in relation to the setting of the fees for Licensed Tour Operator permits, which has raised a few issues for the local tourism industry, especially for operators using public land.

The RIS process is the culmination of a reform process that started about six years ago and led initially to DSE’s May 2008 Policy Statement Licensing System for Tour Operators and Activity Providers on Public Land in Victoria, and then later to the Crown Land Acts Amendment (Lease and License Terms) Act 2009. The latter document allowed the introduction of identical provisions into five different Acts to provide an authority to charge fees to tour operators and activity providers using public land in Victoria.

The fees for the majority of tour operator and activity provider licences that relate to national and state parks and state forests are currently set by Ministerial Order. The amending Act introduces a uniform licensing regime which will apply to all public land managers.

The legislative changes also allow for longer licence terms (up to 10 years), where the current system only allows for one or three year licences.

The majority of tours and activities that occur in national and state parks and state forests are licensed by Parks Victoria under the Tour Operator Management System (TOMS). Committees of Management and Alpine Resort Management Boards have their own systems in place to administer tour operator licences on the various types of reserves that they manage.

The fee increases proposed in the RIS are the first increases since the licensing system was introduced in 1996.Victoria’s tour operators and activity providers will face a 364 per cent increase in the annual licence fee to retain access to the state’s national parks, forests, sea and waterways.

The increase in fees seek to recover a higher proportion of the costs associated with the licensing system, from around 32 per cent to 75 per cent. The RIS also proposes removing the one-off application fee and significantly increasing the use fees (per head/visitor fees required to be paid by licensed tour operators in addition to their licence fees).

Under the new legislation, there’s greater scope for the enforcement of compliance: it will be an offence to operate a commercial tour or recreation activity on public land without a licence and if an operator does not pay the required fees, or meet the conditions attached to the licence, a land manager may cancel or suspend their licence.

Victoria Tourism Industry Council Chief Executive Todd Blake was quoted in an article says most operators want longer-term licences of up to 20 years to give them the security they needed to invest in the business. They also want a degree of exclusivity with their licences and better access.

Would you prefer to be able to access a longer-term licence of up to 20 years and how would this benefit your business? Do you think that the proposed fee increase is too steep or do you think that it is a fair increase, given that the prices have not risen in 15 years? Or do you think that access to the State’s public land should in fact command a higher price, in return for greater security of tenure or greater exclusivity?