Holland.com > Travel > Featured > BID Procedure
May 14, 2007 4:51 PM GMT
By: NBTC

1. Know the convention market

2. Know all opportunities and possibilities

3. Bid procedure

4. Strengths and weaknesses

5. Suitable PCO

6. Set up your organization efficiently

7. Invest in a site inspection

8. Cover yourself against disappointing results

 

1.Know the convention market

You cannot always tell by the name of an event, nor are there any international definitions. NBTC, however, does make a distinction, even though this is not a binding regulation:

Meeting
A meeting is an international gathering with an explicit consultative nature and a result, i.e. a list of decisions. Examples are shareholders’ meetings and Annual General Meetings of associations.

Convention
A convention is a formally organized gathering at a time and place which have been fixed beforehand, with the following characteristics:

  • the number of delegates ranges from 40 to some thousands;
  • the minimum duration of the convention is two days, and includes one overnight stay;
  • the delegates from abroad make up at least one-third of the total number of delegates;
  • a convention takes place in an external venue: a hotel, convention center or other venue that may be rented and which is intended for meetings (e.g. teaching hospitals and universities);
  • the objective is to exchange knowledge;
  • a convention boosts attention for a specific topic or discipline within the professional group, with the press and politicians.

PCOs, RBCs, DMCs
Holland has some dozens of Professional Congress Organizers (PCOs). As this is not a protected profession, please check the experience and knowledge of a PCO carefully. A PCO can assist you from the very beginning. PCOs are specialized in the administrative and technical aspects of a gathering and can advise you. The PCO can help you determine and realize your objectives, can request quotations and act as liaison between the organizing parties. A PCO can also arrange practical matters for you, including the registration of delegates, finding the perfect location, negotiating with keynote speakers, etc. A PCO is impartial; you remain in charge of the organization and program of your event.

If you have already reached the stage in the preparations that you know in which venue your event will take place, a Regional Convention Bureau (RCB) can help you find the best venue. Regional Convention Bureaus know their own regions like the backs of their hands and can advise you on organization bureaus, service providers and hotel accommodations. An RCB also advises you on the program, social programs and excursions, the production of a bid book, on drawing up a running sheet. Their advice is free, without obligations and impartial.

A Destination Management Company (DMC) specializes in the actual organization and logistics of a meeting or other event. DMCs mainly explore the creative possibilities. DMCs also organize informal get-togethers, partner programs, pre and post meeting programs, catering, dinners and entertainment.

2. Know all opportunities and possibilities

You know what type of event you wish to organize and you are acquainted with the players in the field. The moment has now come to establish support for your plans within your own organization. Invite the relevant decision-makers and present your ideas. Prior to this meeting, you should list a number of convincing arguments why your organization should initiate this event. The objective of the convention should also be clear. Not unless your colleagues fully support you, will you be able to realize your plans.

Timing

One of the first questions you must ask yourself is whether you have sufficient time to organize a meeting or convention. Of course, you can delegate certain tasks to others, but even delegating takes time. After all, you are the initiator and will have the overall responsibility for the event. You will also have to consider whether you have sufficient funds to organize the event yourself, and for the bid procedure which precedes the event. Have promises already been made to other potential organizers? It is, of course, possible that it is simply not Holland’s turn, as international umbrella organizations and the European and world headquarters of organizations use a rotation system.
It is important to consider all these matters prior to proceeding.

Draft program and budget
Start considering the program items and list them:

  • What is the subject matter of the presentations?
  • Should you offer additional activities, such as workshops or an information market?
  • What items should the social programs and the informal part of the event comprise?
  • What type of location is suitable?
  • What accommodation is available?
  • etc.

Bearing the draft program in mind, you have to make a budget. This budget will give you an insight into the feasibility of your plans.

3. Bid procedure

Your organization or company supports you fully and you have written a realistic plan. But you may have competition; foreign colleagues may also wish to organize the same event. For this reason, you will have to present your plans to the right people and with the right amount of enthusiasm in order to be able to actually carry out your plans at a later stage. The convention sector calls this stage the ‘bid procedure’: an invitation to organize a convention in your country. In addition to your own organization, various other parties are usually involved in this bid procedure: the PCO (if you have already selected one at this stage), the RCB and, possibly, the convention venue. NBTC can also support you during this stage, just as it supported you in investigating the opportunities and possibilities. NBTC can help you put together a clear presentation which stands out, and can advise you on putting together the bid book as well as write and obtain letters of recommendation. In addition, you may turn to NBTC for advice on promotional material and visuals on Holland.

Profit
A bid procedure is time and energy-consuming, and requires funds. In return, a sizable international meeting is advantageous for the sector, the delegates meet international colleagues, learn about the latest developments, take advantage of business opportunities and many Dutch professionals in the same field will attend your meeting, as it does not cost them as much as attending a meeting abroad.
Extra income is generated at local level and through taxes, a growing number of tourists is realized and the country becomes better known through opinion leaders who return to their own countries, while such an international event also results in a higher GDP.
This major event creates extra jobs in the city where it is held, increases the GDP, yields additional local taxes and word-of-mouth advertising.

Very first questions
A well thought-out bid does, of course, increase the possibility of being selected as the host country for the event. For this reason, you must consider the following, even before you record the official presentation of your proposal in a bid book:

  • In which country and in which city were the previous conventions held?
  • Which agreements were made at that time on the year and possible future destinations for the next convention?
  • Which agreements were made on the rotation of the convention between continents and countries?
  • What is the first year for which no promises have been made (the so-called ‘first open date’)?
  • Which official guidelines must the procedure meet?
  • Which specific facilities does the convention require (e.g. meeting rooms, exposition area, hotel rooms or social program) and what has already been done previously?
  • Which parties, both at national and local level, are already involved or should be involved in organizing the convention?
  • What is the infrastructure like and what are the logistic possibilities?
  • Is Holland easily accessible for the nationalities which would be attracted by the convention?
  • In which season and which month could the convention be held, taking into account other, similar meetings during this period?
  • Availability of convention venues and hotels in the period in question.
  • What is the available convention budget? What was the budget for previous conventions and which are the financial objectives of the international organization?
  • Where and when will the bid presentation take place?
  • How will the next convention destination be selected? Who has the right to vote, which aspects are considered most important?
  • Etc.

Once you have the answers to the above questions, you can start to put together the bid book, i.e. the official presentation of your proposal.

Bid team
You prepare your bid with other members of the bid team, sometimes called the Local Organizing Committee (LOC). Each member of the team has his or her own input and is, therefore, partly responsible for the outcome of the bid.

Who should be included in the bid team?

  • the initiator of the bid procedure – usually the chairman of the team – who has a prominent position in the relevant discipline;
  • a number of leading or young scientists in the discipline,
  • a PCO representative (if you have already selected a PCO at this stage);
  • a representative of the convention venue;
  • an NBTC expert;
  • a representative of a Regional Convention Bureau;
  • a sponsor (if you already have a sponsor).

4. Strengths and weaknesses

Analyze the strengths and weaknesses in your proposal as soon as possible. By emphasizing your strengths, you can prevent too much attention being paid to possible shortcomings. This allows you to devise a strategy to parry any to questions on the weaknesses in your plan, and will increase your chances of success. It would be advantageous if you could find out the strengths and weaknesses in the proposals of your fellow candidates, in order that you may ask questions on this and put forward the differences with your own proposal at their best advantage.

Examples of strengths

  • the chairman or executive secretary of your organization actually has his or her office within your organization;
  • a number of recognized experts in the relevant discipline work in Holland;
  • suitable convention, meeting and exhibitions facilities are available;
  • attractive destination;
  • excellent infrastructure (transport, hotels, restaurants);
  • the venue is renowned for the organization and execution of similar gatherings;
  • the parties involved – PCO, convention bureau or Regional Convention Bureau, venue, hotels – work well together;
  • favorable exchange rates for the majority of the delegates.

Some weaknesses

  • the available venues do not fully meet the requirements of the event;
  • the group of relevant experts in Holland is relatively small and/or unknown;
  • there is not sufficient guarantee that the required funds will be raised;
  • not all relevant professionals in Holland support the bid;
  • Holland does not have experience in organizing a similar conference of a similar size;
  • the local convention market does not unanimously support the bid;
  • unfavorable exchange rates for the majority of the delegates.

In addition to comparing the strengths and weaknesses in your proposal, your bid will be even better substantiated when you assess the opportunities and threats.

Opportunities

  • this event has not previously been held in Holland or the region proposed;
  • the Dutch experts in the field are renowned and have an excellent international reputation;
  • a rotation system regarding the destinations for future meetings is in place;
  • the local convention market is wiling to invest in the preparation for the event;
  • the destination is perceived as safe;
  • there are sufficient local initiatives to support the event financially.

Threats

  • a nearby country also wishes to organize the event;
  • delegates from countries which are usually well represented have to travel far;
  • hotels in Holland have fewer rooms than those in competing countries;
  • the rates for flights and hotels during the season that the meeting is to be held are not competitive;
  • other countries are bidding for the second time;
  • other countries are lobbying aggressively;
  • political instability in the host country;
  • reservations with regard to personal safety in the host country;
  • unpredictable costs as a result of constantly changing exchange rates.

Even though you may have an insight in all the matters listed above, one thing remains of the utmost importance: to what degree can you meet the official criteria that the international organization has set? Even though your bid – for the presentation of which you are usually allocated no more than fifteen minutes – is extremely attractive, as long as you do not meet all the criteria, it is very unlikely that your bid will be successful.

Checklist bid book

  • official invitation of the Dutch association;
  • up-to-date situation within the discipline in Holland;
  • letters of support from, for instance, universities, industries, ministers/mayors, NBTC and the Ministry of Foreign Affairs promising visas;
  • program concept: format, subject matter, technical visits;
  • finances: draft budget, convention fees, hotel costs, sponsoring for young scientists and delegates from third world countries;
  • description of Holland and of the city in which the convention is planned to take place, the convention venue, tourist attractions and pre and post convention excursions.

5. Suitable PCO

The following three factors should be taken into account when deciding whether or not to employ a PCO:

  • size of the convention or international meeting;
  • available budget;
  • available in-house expertise.

A PCO has lots of knowledge and professional experience. Do take advantage of this!

Advice and support
If you choose to employ a PCO, do this as early as possible. Especially in the initial stages you will need to take important decisions with regard to a suitable venue and the preparation for the bid. A PCO can help you to avoid possible pitfalls and can advise and coach you until the end of the procedure. In addition, a PCO can liaise between the organizing parties and can arrange practical matters for you, such as registration of delegates and negotiations with keynote speakers. Please note that you remain responsible for the financial aspects of the convention and the contents of the program at all times.

How to select a PCO

  • send out a request for tenders;
  • gather information on PCOs that may be suitable;
  • select the most suitable PCOs (depending on the number of years of experience, commitment to the topic, reputation, etc.);
  • ask the selected PCOs for a quotation;
  • compare the quotations you have received (contents and prices);
  • ask references on the PCOs which seems suitable;
  • invite the short-listed PCOs for a short presentation and questions and answers session;
  • select the PCO which best meets your requirements and with whom you feel you will work best.

Ask NBTC for advice
As you will work with the selected PCO for quite some time and you will have close contact, it is important that you get along. When selecting the PCO, please make sure that its culture fits in with yours.
If you have not been active in the convention market before, it is advisable to contact NBTC. Depending on your requirements, NBTC can select two or three PCOs with whom you will have an initial meeting. Afterwards you decide, together with NBTC.
Should you decide to work with a DMC, NBTC can also help you find the most suitable one.

6. Set up your organization efficiently

The organization of a convention or meeting comprises quite a number of elements, products and services. Which of these are the most important depends on the objective of your event; for a scientific convention, for instance, the emphasis will be on the subject matter, the guest speakers, the abstracts and the proceedings. For a corporate meeting the accessibility, hotel accommodation and catering facilities may be the most important aspects.

Main convention elements
In general, convention elements include: subject matter, convention venue, meeting facilities, guest speakers, administration, printed matters and web site, announcement, invitation, registration form, final program booklet, additional documents (such as invitations for receptions, vouchers), name badges, hotel accommodation, catering, visual equipment, transportation, abstracts, convention proceedings (up-to-date information on the convention topic, including presentations, lectures and speeches during the convention, etc.), social program and educational trips. Each of these elements must be prepared in minute detail: what are your wishes, who is responsible for the execution and when?

Delegate tasks and responsibilities
It is quite common when organizing a convention to delegate tasks, authorities and responsibilities to committees, and, possibly, subcommittees. The organizing committee, for instance, is usually responsible for the program content, the financial aspects and logistics. This committee may, in turn, delegate the various activities to a PCO or other service provider. The administration committee is responsible for registration, lists of delegates, name badges, putting together convention information kits, etc. This committee is also usually responsible for the selection of hotels, the transportation and partner programs. Other committees may be put together in addition to these two committees. How many committees are required depends on, among other things, the size of the convention and the wish of the national association which has initiated the convention to actively involve its members in the organization of the convention.

Centralized information flow
Too many committees and subcommittees may prevent you from efficiently running the organization. Moreover, they require more money. There are various guidelines to help you maintain an overview. For instance, you may appoint the chairpersons of the various committees members of the organizing committee, which committee coordinates all activities. You may give each committee its own budget. If you are working with a PCO, it is advisable to centralize the information flow via this supplier.

Convention foundation
It is essential to set up a separate convention foundation which assumes the financial and legal liability for the convention. Not only is this necessary to be able to submit an application to the Pre-financing and Guarantee Fund, but also to indemnify your organization against financial risks. It keeps the money flows relevant to the convention separate from those of your organization. From this moment on, the foundation is the legal and fiscal contact. Your PCO can advise you how to best set up this foundation.

7. Invest in a site inspection

In addition to the program, the venue is a critical success factor. It all starts with the appearance of a building. Whether you choose a castle or a converted hangar depends on what you wish to offer your guests and what their expectations are.

Go see!
Numerous other factors must be taken into account when selecting the most suitable venue.

  • What is the objective of your meeting?
  • How many delegates will attend?
  • What type of catering do you require?
  • What kind of meeting rooms and facilities are required?
  • How much parking is required; how easily accessible should the venue be?
  • What is the location of the venue with regard to hotels and night life?

Quite an extensive list, in fact.

Inspect together
As the organizer of the international convention, yours is the decisive vote in the selection of the venue. However, in order to be successful it is essential that you consult all parties involved. PCO, convention bureau, technician, local governments, transportation company: they all have their own expertise. It is up to you – and the parties who assist you – to carefully consider and decide.

Carefully prepare your site inspection
The most important aspect of the site inspection is for you to be informed on all the venue’s possibilities and impossibilities. All participants in the site inspection must prepare properly from the perspective of their own expertise. Make sure that everyone receives a lay-out of the venue prior to the site inspection and send everyone involved your inspection planning.

Avoid unpleasant surprises
A hotel room which can supposedly be changed into an office, but the furniture cannot be moved.
The brochure shows an in-house video system which you later find out must be rented separately.
If you are not very experienced in organizing a major meeting, you may come up against some unpleasant surprises. In order to avoid these, do pay careful attention to all the details and do not hesitate to ask questions. Another tip: arm yourself with a checklist (see box).

Checklist site inspection

  • Costs

What is included in the venue hire price and what is not included?
Make sure all additional items are specified in the rental contract. Do not book the venue for the actual convention dates only, but also for one day prior and a few days afterwards, in view of the time it takes to set up and dismantle.

  • Location

Distance to the hotel and accessibility from a nearby airport.

  • Outward appearance

Does the outward appearance meet the standards and the character of your organization?

  • Quality of management

Is the venue management service-oriented, experienced, flexible and cooperative?

  • Accessibility

Is there enough space at the entrance for passengers of several coaches to get off or on at the same time?

  • Parking

Is sufficient parking available for both coaches and cars?

  • Suitability of the convention area

Take note of the availability of desks next to the seats, the size of the stage, is the stage clearly visible from all sections of the room, can doors be locked, what projection facilities are available, can multimedia presentations be shown, are light and sound checks possible, are facilities for simultaneous interpreting available, number and type of microphones, satellite connections and Internet connections.

  • Availability of technicians
  • Are offices available and what facilities to these offer?
  • Catering

Is enough space and staff available to provide coffee/tea and lunches for all delegates at the same time?

  • Safety
  • Availability and facilities exhibition area
  • Cloak rooms and cloak room staff
  • Size of storage area for convention materials and transportation of material (elevator, hand trucks)

Nine tips for a successful bid inspection
1. Carefully determine your exact wishes and needs.
2. Make sure you receive the lay-out of the venue, prior to the site inspection.
3. Learn from the mistakes and successes of previous conventions.
4. If you are bidding, gather information on the countries and cities you are competing against and list the unique selling points of your chosen venue.
5. Invite experts who can adequately reply to any questions on geographical, historical and cultural aspects of both Holland and the city involved.
6. Visit a selected number of hotels that are representative for the range of accommodation available, both deluxe and standard.
7. Involve the management of the convention venue in the site inspection.
8. Ask a technician to join the site inspection to answer any possible technical questions.
9. Invite a representative of a local or regional convention bureau to be present.

8. Cover yourself against disappointing results

The number of delegates registering for your convention is not up to expectations.
Help!
If your budget is in danger, you may be saved from financial disaster by the Pre-financing and Guarantee Fund (VGF).

Pre-financing and Guarantee Fund (VGF)
The VGF has a twofold objective:

  • Finance the initial costs of the convention by providing a loan;
  • Stand surety in case of a financial deficit caused by a disappointing number of delegates.

Pre-financing is available for convention organizers who have insufficient starting capital. They may use the pre-financed money for printed matters or for prepayment of the venue.
The VGF does not interfere with how the money that has been loaned is spent.

Thanks to the surety a convention can still take place even though the number of delegates may be disappointing. A condition for this service is that a foundation or association related to your organization acts as co-guarantor. This may be a scientific foundation or association of professionals. The ratio is 1:3. For example, a convention realizes a loss of EUR 24,000. This will cost the co-guarantor association or foundation EUR 6,000. The VGF will pay EUR 18,000; i.e. three times the amount of money the co-guarantor pays and no more than the maximum amount the VGF has guaranteed. The amounts available under this scheme depend on the expected number of delegates in relation to the convention (history, subject matter).

Conditions
It goes without saying that certain conditions must be met in return for this service. When applying, you must submit a budget which feasibility will be assessed based on the program and the convention history.
For applications for pre-financing an additional liquidity forecast is required; when are which expenses expected and when is which income expected?
In addition, there are requirements regarding the amount of time before the convention actually takes place; pre-financing is possible a number of years prior to the convention, while surety usually approximately twelve months in advance. In view of legal responsibility and liability, the convention organization must also be set up in a foundation.

Any convention organizer may ask the VGF for pre-financing or surety. Experience has shown, however, that applications are usually submitted by PCOs.

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