Call it Murphy's Law.

As soon as the International Association for Dental Research (IADR) commits to a meeting in an international city, usually six years out, it seems like economic issues start piling up. "We joke that every time we decide to take a meeting somewhere, we sit back and watch the exchange rate go the wrong way," said Gwynn Breckenridge, IADR's director of meetings.

According to Bloomberg.com, on July 15, the dollar touched its all-time trading low of $1.60 per euro. The same day, it traded at 105.07 yen. And based on financial industry reports, the situation may get worse before it gets better. The dollar will weaken against the euro, yen, Brazilian real, and Swiss franc through the end of 2008, as confidence fades in Fed and Treasury efforts to keep the economy out of a recession, according to respondents to the Bloomberg Professional Global Confidence Index, which questioned 5,450 customers from Los Angeles to Paris to Tokyo in July.

While some U.S.-based organizations may decide to keep their meetings and events at home until the picture improves, there are groups that need to reach an international audience now. Confining their events to North America simply isn't an option. "U.S.-based international associations have to travel internationally to satisfy and grow membership, and to keep their sponsors assured," said Ben Goedegebuure, director of sales for the Scottish Exhibition + Conference Centre in Glasgow.

International association executives agree. "We absolutely plan to continue meeting abroad," said Cici Thompson, CAE, vice president of meetings and member alliances for Worldwide ERC, the Workforce Mobility Association. "Our international initiatives are a major part of our strategic plan, and of great importance to our members."

Added Jennifer Sombar, CMP, manager of travel and event management for the CFA Institute, the Global Association of Investment Professionals: "Our organization's mission is 'to lead the investment professional globally by setting the highest standards of ethics, education, and professional excellence.' We've just begun a continental rotation of our annual conference, and with offices in London and Hong Kong, as well as central Virginia and New York City, we will continue to support and host meetings outside of the United States."

That kind of strategic commitment or organizational directive doesn't make maintaining an event presence overseas any easier. These days, association planners are digging deep for new ways to produce international events that will be viable, affordable - and provide an even greater return on attendees' investment. And many in the industry suggest that planners will simply have to become more creative in the way they approach the challenge. "The price of oil will rise; it will be the standard," said Richard Rheindorf, CMP, U.S. and Canada regional director for the German Convention Bureau. "Planners and suppliers have to be creative and negotiate special deals. With globalization on the rise, American companies and associations have to bring their meetings to international destinations."

To make international meetings work in the current economy, planners must rethink their budgets, forge relationships with destination partners, and even revise their planning paradigms. Here's how some organizations are making it work.

Rethinking the Budget
Just as many U.S. households are cutting out extras in the face of rising prices of everything from food to fuel, meeting planners also must, in many cases, begin trimming expenses. "Meeting planners have always been struggling to meet their budgets, but costs are definitely an issue now, especially when it comes to special events and extras such as décor and gifts," said Laura Saeger, CMP, CMM, business tourism manager for the U.S. office of South African Tourism. The trick is to cut costs without sacrificing the ambiance and success of the event. "The way the dollar is, there's not much you can do to make [international meetings] more affordable other than limiting what you include in the registration price," IADR's Breckenridge said. "Some planners I know don't include meals anymore. At our recent meeting, we had to reduce some things we normally would have done. For instance, we took out extra signage and scaled back on coffee breaks, just offering drinks and no food."

In mapping out future meetings, planners and their organizations will need to keep rising prices in mind and adjust accordingly. "Our planning cycle is typically eight to 10 months out, with the exception of our annual conference, which is confirmed in Edinburgh in 2011 and pending in Singapore in 2013," CFA Institute's Sombar said. "As we look to our upcoming budget cycle, we're definitely increasing our budget for travel, both staff and volunteer, and lodging expenses."

Hedging Funds
Several years ago, when Behroz Daroga, president of MEC-USA, Meetings, Events & Communications, first began planning international meetings, her organization's bank recommended that she begin "hedging funds," or buying foreign currency in advance in order to avoid exchange-rate fluctuation in the future. "We were planning a medical meeting in Italy in 2004, and our bank suggested we keep a certain amount of money in euros because the euro was becoming strong," Daroga said. "The association [we were working with] said it wasn't such a big deal to block $500,000 and buy euros. So, with the permission of the IRS, we did it." By the time the meeting took place, the exchange rate had continued to expand.

When all was said and done, MEC determined that by purchasing euros in advance, it had saved its client from a $35,000 loss on foreign currency. Today, Daroga always buys foreign currency in advance of meetings.

Developing New Revenue Streams
Rethinking the budget doesn't just mean adjusting for increased expenses; it also means finding ways to increase revenues. At CFA Institute, meeting organizers are "also leveraging the content from our live conferences by audio-recording and Webcasting sessions," Sombar said, "and making them available to our membership for purchase."

In fact, according to John Swinburn, CAE, president of Challenge Management Inc., a Dallas-based association management company, some industry insiders say the advent of new technologies, combined with rising fuel prices, airline industry woes, and increased environmental consciousness, may create "a perfect storm" that finally leads to revolutionized meetings that truly leverage the promise of virtual events. In a recent posting on his Challenge Management blog (www.cmiassociationmanagement.blogspot.com), Swinburn wrote that future "physical meetings will become much smaller and much, much more expensive per live participant ... but meetings will become far greater in their reach by drawing in participants from a huge pool that has never been terribly active in 'live' meetings before. Skills in successfully integrating multiple technologies so that event participants from around the globe can have an 'almost-live' experience will be required [for planners]."

By packaging and selling that "almost-live experience" to audiences who aren't physically at a meeting, planners can reach potentially thousands more attendees and boost their budgets for live events at the same time.

Booking Closer Out
In addition to rethinking budgets, planners of international events are finding that they need to reconsider the ways they've always done things. For example, rather than booking meetings six years out as IADR has in the past, Breckenridge is considering shortening the timeframe to three or four years out for international events. "In the United States, you can't get good dates [that close to the meeting date]," she said. "But internationally, they don't seem to fill up as quickly."

Some groups are cutting it even closer. "At the present time," Worldwide ERC's Thompson said, "we are planning no more than one year out [for international meetings], which has helped in terms of recognizing trends and adjusting budget figures."

Said MEC's Daroga: "The trend [of planning meetings several years out] is changing; there's no such thing as 'in advance.'" Case in point: When she spoke to Convene in mid-July, Daroga had just received a request from an association to book rooms for its September meeting in Europe, which she said is "pretty standard at the moment."

Exploiting Existing Opportunities
Aside from simply changing traditional habits and schedules in order to make international meetings viable, North American planners must broaden their horizons and begin thinking globally, according to Philip Logan, general manager of India's Hyderabad International Convention Centre. "The reality is that most U.S. meetings are by the USA, for the USA, and of the USA; it's currently a closed-shop approach, which will inevitably have to change as globalization and emerging economies drive growth," Logan said. "In a commercial world, sponsorship and business opportunity ultimately remains the driving force for change in the meetings environment. Many meeting planners are behind the times [in] seeing opportunities that exist due to inexperience or inability to cope with many facets of their role."

For instance, some of the existing opportunities overlooked by most North American planners include:

• forming strategic alliances with international meeting planners and the International Association of Professional Congress Organizers
• participating in an internship with international meeting planners
• holding several concurrent international meetings linked by video conferencing
• partnering with Telco and technology supply companies for international content delivery, inbound and outbound
• adding international meeting planning content to the required core curriculum in meetings-education programs
• entering international markets through joint ventures, mergers, or acquisitions
• participating in Youth International Scholarship programs to bring international knowledge back to the United States.

"Just think outside the box," Logan said. "For instance, [watch international news program], not CNN 50-state news with Mexico and Canada. The medical, pharmaceutical, and IT firms are already globally exploring; the meetings industry in the United States needs to follow their lead."

Going Against the Grain
When it comes to international meetings, the tried-and-true strategies for cutting costs continue to apply. "Consider areas that are still affordable and less touristy," said Jaime Stephens, executive director of the Color Marketing Group (CMG). "Also, consider the timing of the meeting, and go in an off season. (Do be careful, however, to do your research, so you aren't holding your meeting during monsoon season.) While 'affordable' is a relative term, there are still some bargains to be had."

Seeking out destinations that are off the beaten path, including emerging locales such as Malaysia, South Africa, and Qatar in the Arabian Gulf region, may yield more affordable rates along with unique, memorable meetings. "With tighter budget strings, meeting planners must select destinations that offer the best value for their money, which ensures justification of delegate investment, without cutting costs or comprising a delegate's experience," said Peter Brokenshire, general manager of Malaysia's Kuala Lumpur Convention Centre.

Partnering With Local Providers
Some of the budgeting issues that North American planners deal with when meeting internationally stem from international hotels' different set of operating rules - and sometimes only a local partner can help planners navigate the territory. Breckenridge said she's found that international hotels tend to raise their prices when they learn that a convention may be coming to town. "When we go to hotels and say we're doing a convention, all of a sudden, the rates go up," she said. "Some planners I know go online to check rates and document them, then after talking to the convention bureau, if the rates go up, they'll confront [destination executives]. If a hotel's going to do that, the planners won't let the hotel participate. I've discussed with other planners that it's cheaper to do a meeting for 10 people than for 4,000.

"Hotels overseas also don't negotiate any concessions," Breckenridge continued. "They give you a room rate, and everything else you have to pay for [separately]. You're very lucky if you get a comp room, [and] there's no discount on food and beverage. You have to budget for every item."

When holding a meeting in Barcelona, Breckenridge hired a local professional congress organizer (PCO) to handle hotel booking and contracts for her organization, and saw quick results. "Because of the number of rooms they book in the area, they were able to get a few comp rooms, a few discounted rooms for staff," Breckenridge said of the PCO. "It wasn't what we would get in the United States or Canada, but it was more than we usually get elsewhere. Sometimes it helps to use a local partner." In most cases, local tourism boards and convention bureaus can help match planners with the local supplier partners they need, as well as serve as essential partners in planning viable international meetings. "We can work with airlines for special rates, identify sponsorship opportunities where appropriate," said South Africa's Saeger. "We can help identify low seasons when rates are at their most competitive, and we can direct [planners] to in-country experts who can help them identify cost-effective options."

Added James LaValle, manager of conventions, exhibitions, and corporate events for the Hong Kong Tourism Board: "Planners should always contact the tourism office or bureaus to see what they have to offer. Tourism bureaus and offices can provide effective assistance to budget-strapped planners in identifying local service providers who potentially could offer savings, and sometimes offer assistance with generating local funding for high-profile events from the local government or corporate community. Additionally, most destinations offer some level of reward or privilege program, like our Hong Kong Rewards program, with elements that can offset some of the costs associated with the program by providing some products and services free of charge."

Strategizing
Along those lines, savvy planners will try to use their loyalty points from domestic hotel chains even when meeting overseas. "I try to place [international] meetings in hotels that are part of a chain, such as Starwood," Stephens said, "where I have some negotiating leverage, since CMG currently uses Starwood properties frequently."

As business becomes increasingly global, planners must get creative about making international meetings work, regardless of what's happening in the economy. In fact, for North America-based international associations, holding meetings overseas is an essential strategy for serving members well. "Our membership is global," CFA Institute's Sombar said, "so by bringing our events to various locations around the world, we are bringing them closer to some segments of our membership."

Overcoming the economic hurdles of meeting internationally is, for these planners, simply part of the job. "As far as the current market is concerned, we feel that international planners now see their meetings as even more important to their companies and associations," Scotland's Goedegebuure said. "The view is that conferences are a crucial way of bringing people together to meet their objectives at this time."

International Bureaus Deliver The Goods

Expert international planners know how to utilize the services of an international tourism or convention bureau, which often can lead entire teams of local partners to help create a successful meeting. In Kuala Lumpur, for example, "Team Malaysia" consists of Tourism Malaysia, Malaysia Airlines, the Kuala Lumpur Convention Centre, and the Kuala Lumpur City Hall, working "closely to ensure that all bids showcase Malaysian hospitality and quality and efficient service delivery, from travel arrangements and point-of-arrival to event execution, business opportunities, and cultural exposure," said Peter Brokenshire, general manager of the Kuala Lumpur Convention Centre.

Many bureaus also provide help with marketing a meeting. In Glasgow, for instance, the Glasgow City Marketing Bureau offers marketing assistance before and during an event; during the planning stages for larger meetings, the bureau sends out first-announcement fliers to potential delegates. And for meetings of more than 3,000 delegates, the bureau provides free welcome banners in the center of the city and at airport desks, along with a welcome message on a prominent giant screen in the city center. "Our aim is to make each and every delegate feel part of our city for the duration of their visit," said Ben Goedegebuure, director of sales at the Scottish Exhibition + Conference Centre in Glasgow.

In addition, "tourism bureaus can provide contacts in the professional, education, and R&D communities who could assist in making their programs more robust by incorporating local expertise into their educational sessions," said James LaValle, manager of conventions, exhibitions, and corporate events for the Hong Kong Tourism Board. "We do this by leveraging other government agencies as well as our successful Hong Kong Ambassadors program, a group of local professionals and educators who have volunteered to assist in attracting international meetings in their fields to Hong Kong."

Attracting Attendees To Overseas Meetings

With a weak U.S. dollar and widespread economic woes, how can a planner encourage North American attendees to board a plane for an international meeting?

• Design a can't-miss program. "Planners and program directors need to ensure that there is valid and profitable educational rationale to justify the increased expenses for international events," said James LaValle, manager of conventions, exhibitions, and corporate events for the Hong Kong Tourism Board. "Add program elements that maximize the assets of the destination being visited. For example, if an association is to hold a program in Hong Kong, ensure that the program includes elements that are unique to Hong Kong and maximize the city's geographic- and economic-gateway status for China. Most companies and industries are looking to China for growth and to potentially replace dropping domestic revenues, so bring in experts from Hong Kong in your field who can assist with that transition through their longstanding experience working in the region. By adding elements such as these that might be unavailable elsewhere, you make the program not just viable but essential."
• Educate members about actual prices. While many planners and their members assume that international destinations are more expensive than domestic locations, that's not always the case. "One has to take a closer look," said Richard Rheindorf, CMP, New York City-based regional director for the German Convention Bureau. "I recently took a business trip to Berlin and to Boston. During the first week, I flew to Berlin, spending $420 on Continental, and stayed at the five-star Concorde Hotel for 160 euros, including breakfast. The following week, I had to fly to Boston, and spent $460 on US Airways Shuttle and $370 at the Copley Plaza, excluding breakfast. Taxi in Berlin was 17 euros; in Boston, it was $25."
• Select sites carefully. "The destination is always a key factor, and you should select a destination that appeals to your audience," said Jennifer Sombar, CMP, manager of travel and event management at the CFA Institute. "Since our organization's members are financial professionals, key business markets are draws for us, but are often a bit more expensive. It is a challenge since you don't want to choose a destination or venue that jeopardizes the way you typically host a meeting, which in turn impacts the attendee experience." Instead, the goal is an interesting destination with options for extending the trip for leisure. "I see U.S.-based planners trying to choose desirable destinations, offering pre- and post-tours, and if they're savvy, they work with tourism boards to offer registration incentives and other delegate-boosting efforts," said Laura Saeger, CMP, CMM, business tourism manager for South African Tourism U.S.
• Rely on local members. Associations with global memberships often can leverage local members to help them get the word out about upcoming meetings and help build attendance.

"We rely heavily on our relationships with our members to help spread the word about the meeting to people who are not familiar with our program," said Cici Thompson, CAE, vice president of meetings and member alliances for Worldwide ERC. "We also have offices in Shanghai and Brussels, and are able to participate in local events to increase our brand identity."

Coming to America

With a weak U.S. dollar, it seems as if international attendees would be flocking to U.S. meetings to take advantage of the favorable exchange rate. "It is somewhat easier [to recruit international attendees to North American events] than to recruit U.S. attendees to international events," said Jaime Stephens, executive director of the Color Marketing Group. "It's important, though, that the city be appealing and easy to get to. It would be harder to sell [a third-tier city] as a conference destination than it would be Miami, San Francisco, or Chicago."

While it may be a little easier to interest overseas attendees in coming to North America than vice versa, actually getting them here presents its own challenges. According to Behroz Daroga, president of MEC-USA, Meetings, Events & Communications, the visa issue planners have wrestled with for the last several years "is becoming worse. The U.S. State Department recently said it wants all foreigners entering the United States to have visas. If that happens, it will kill this industry and tourism completely."

At a recent meeting in Toronto, the International Association for Dental Research (IADR) "had quite a problem with people not getting visas," said Gwynn Breckenridge, IADR's director of meetings. "We thought it was easier to get into Canada than the United States, but that ended up not being the case."

A large number of would-be IADR attendees from China, Nigeria, and India - including more than a few individuals who were on the schedule as presenters - were declined visas. "We contacted the convention bureau, and they contacted the embassies," Breckenridge said. "We tried contacting the embassies ourselves, and we provided everything they asked for. In the end, we had to refund the participants' registration fees."

To avoid similar problems, planners should "constantly tell people to begin the visa-application process as soon as they send in their papers," Breckenridge said. "I tell them not to wait to see if their paper is approved, but just start the visa process immediately. Some people go ahead and book their hotel room and their airline, then they can't get a visa and they may not be able to get refunds."

In order to get more international attendees not only at a meeting but inside the room block, Daroga recommends opening the block much earlier than is standard in North America, especially for medical meetings. "Pharmaceutical companies overseas have to get their budgets approved by regulatory agencies [well in advance]," she said. "When they don't get access to the hotel block early enough, they of course go online and get their own rooms, even if they're at a higher price than the room block would be. They have to have time to get their paperwork in."

To avoid the problem and make it possible for more international pharma companies to book inside the room block, Daroga recommends opening the block to international attendees nine or 10 months prior to the meeting.

Avoiding Attrition

A weak exchange rate may have attendees looking for cheaper rooms outside the block. The International Association for Dental Research (IADR) recently completed its biennial international conference in Toronto. "When we booked it, the hotel rates were going to be great and the exchange rate was going to be phenomenal," said Gwynn Breckenridge, director of meetings for IADR. "By the time registration started, everything had changed."

With contracted hotel rates no longer as affordable, many attendees booked outside the block. A number of international attendees, many of whom work at universities, were able to get better package deals through their university travel offices or travel agents, according to Breckenridge. IADR planners set to work to avoid attrition fees. "We gave the hotels a heads-up, and we kept sending e-mails to our members, explaining that if people continued to book outside the block, it would hurt the association and our ability to get future discounts," Breckenridge said. "We also held a drawing, offering a free hotel room for four nights for anyone who booked through our housing bureau." IADR incurred an additional expense by adding shuttle buses to encourage more people to book rooms in the hotel block. After all that effort, IADR ended up just meeting its minimum and kept costs in line, Breckenridge said, "by scaling back on some of the things we normally offer at our meetings."