Message From the Executive Director: Financial Challenges in Producing ASLO Aquatic Sciences (ASM) and Summer Meetings — Interview with Julie Elfand, ASLO Conference Manager

Abstract

ASLO members consistently indicate in member surveys that ASLO conferences and publications are the two things they value most among the many programs and activities we provide. Like all professional societies, ASLO is experiencing sharp increases in the costs of putting on our conferences, with the most dramatic increases seen in food and beverage (F&B) and audiovisual (AV) costs. ASLO has long provided very generous catering and full-service AV, including expansive, no-cost full internet service for attendees at our conferences. The explosion in costs that began in 2020 has accelerated around the globe, impacting our members in their own lives, as well as ASLO.

ASLO has three primary sources of revenue—membership dues, publications revenue, and conference revenue. The latter is comprised primarily of registration and abstract fees, with smaller contributions from exhibitors and sponsors. These primary sources of revenue must generate enough funds to support the society's operations, including membership promoting programs such as travel awards and discounted meeting registration for students and early career researchers. And ASLO is run very leanly, with only three employees and our business and conference management team at Bostrom. Unlike many professional societies, ASLO has no physical structure (owned or leased buildings) nor their high associated costs. Employees all work virtually from their home offices. Our fiduciary responsibility to our members is to ensure that ASLO remains viable, sustainable, and effective—conferences must therefore generate revenue beyond the expenses required to hold our meetings.

I sat down with Julie Elfand to talk about the cost increases, how ASLO is working hard to mitigate these costs, and how new realities are impacting things like the level of F&B spending we can sustain going forward.

ED: WELCOME, JULIE. FIRST, TELL US ABOUT YOUR PROFESSIONAL EXPERIENCE AND BACKGROUND. HOW LONG HAVE YOU BEEN WORKING IN CONFERENCE MANAGEMENT, AND AT BOSTROM SPECIFICALLY?

JE: I've been in the hospitality industry for 30 years and with Bostrom for 28. I started on the hotel side in the catering and convention services department, and then moved to the meeting planning side when I joined Bostrom. At Bostrom I plan conferences for numerous clients, ranging from small board meetings to multi-day conventions for 2500+ attendees.

ED: SHARE WITH US SOME INDUSTRY DATA ON THE INCREASES IN F&B AND AV COSTS IN THE LAST FEW YEARS. CAN YOU GIVE A FEW EXAMPLES OF SPECIFIC COSTS, LIKE COFFEE BREAKS, AND HOW THESE HAVE CHANGED JUST IN THE LAST TWO YEARS?

JE: Since the end of the COVID-19 pandemic, we have seen costs increase significantly. According to data from Maritz Global Events, the average cost per attendee per day has risen 8.75% to US$174 for hotel, airfare, transportation, and meeting expenses. The average cost per attendee per day for F&B has increased by nearly 10% over 2022 prices to $190 bringing the daily cost to $364 per day per person. In addition, we've seen service charge fees rise 26–28%. At the same time, hotels are unwilling to discount food and beverage prices, won't guarantee menu prices, are raising food and beverage minimums, and increasing set-up and labor fees.

In terms of AV, we are seeing that it is sometimes more cost-effective to use an outside vendor versus the in-house provider, assuming the venue allows it, and they don't have additional fees for the use of the outside vendor.

Hotels and convention centers are also beginning to charge fees for things like water stations, electricity, internet, and load-in/load-out that in the past they either didn't charge for or were willing waive or reduce.

ED: WHAT STEPS ARE WE TAKING TO ADDRESS THESE COSTS GOING FORWARD? HOW MUCH BARGAINING POWER DO YOU HAVE WHEN NEGOTIATING THESE COSTS WITH INDIVIDUAL CONFERENCE CENTERS?

ED: ASLO HAS LONG ENDEAVORED TO AVOID OR TO KEEP MINIMAL ANY INCREASES IN REGISTRATION RATES. WHAT TRENDS ARE YOU SEEING IN REGISTRATION RATES AT OTHER PROFESSIONAL SOCIETIES FACING THESE SAME FINANCIAL PRESSURES IN PRODUCING CONFERENCES?

JE: Although no one likes to increase fees, there are only so many ways to reduce costs. Our clients are utilizing a mix of increasing registration fees; reducing or eliminating subsidies for board, committee chairs, VIPs, and speakers; adding credit card fees; increasing registration fees if you don't book a hotel room in the meeting-associated room block; and/or more strongly enforcing late registration fees and being less lenient on waiving cancellation fees. We are also seeing an increase in exhibitor fees and increased attempts at securing sponsorships.

ED: ASLO CURRENTLY HAS ITS CONFERENCE VENUES SELECTED THROUGH TO 2028. HOW IMPORTANT IS CITY SELECTION FOR 2029 AND BEYOND IN CONTROLLING COSTS, AND HOW MIGHT THAT CHANGE WHERE ASLO MEETINGS ARE HELD IN THE FUTURE? WHAT TRADITIONAL CONCESSIONS THAT CITIES ONCE OFFERED ARE NOW BEING REDUCED OR ELIMINATED?

JE: Much like with other aspects of conference planning, venue and location have an outsized impact on conference costs. One thing we have been recommending to our clients is to consider what the industry considers to be “second tier cities.” Utilizing these up-and-coming cities for meetings hosted in the United States, such as Grand Rapids, Michigan, Pittsburgh, Pennsylvania, Louisville, Kentucky, Columbus, Ohio, Madison, Wisconsin, and others, can save considerable dollars, while introducing attendees to cities that they might not otherwise visit.

In order to get reduced or waived rental fees, we're seeing increased food and beverage minimums, as well as increased AV revenue, and other auxiliary fees. At the same time, some cities—through their Convention Bureaus—are able to offer incentives and/or rebates to attract convention business.

ED: DO YOU ANTICIPATE FURTHER INFLATION IN MEETING COSTS FOR THE NEXT TWO YEARS, AND HOW MUCH?

JE: While thankfully it seems that inflation is coming down, all indications are that it will remain above COVID-19 levels. It is reasonable to assume that overall meeting costs will increase 3–6% annually over the next few years.

ED: WHAT ARE SOME OF THE MORE AFFORDABLE CITIES FOR PROFESSIONAL SOCIETIES TO HOLD THEIR CONFERENCES? DO YOU SEE ANY OTHER TRENDS IN CONFERENCE MANAGEMENT THAT WILL IMPACT ASLO IN THE COMING DECADE?

JE: As I mentioned earlier, utilizing so-called second-tier cities can significantly reduce costs. Using the United States as an example, while most of those I referenced previously were in the Midwest, each region of the country has lower cost alternatives to the most popular locations. For instance rather Boston, you may want to consider Providence, Rhode Island or rather Los Angeles or San Diego, you may want to consider Anaheim or Long Beach, California.

ED: ASLO IS A TRULY GLOBAL ORGANIZATION WITH NEARLY HALF OUR MEMBERS LOCATED OUTSIDE THE UNITED STATES ARE THERE ANY SPECIAL FINANCIAL CHALLENGES IN HOLDING CONFERENCES OUTSIDE THE UNITED STATES?

JE: International conferences offer a fantastic chance to immerse oneself in diverse cultures and gain insights from peers across the globe. However, they also come with financial hurdles such as fluctuating exchange rates; increased travel and shipping expenses; VAT taxes; and varying costs for venue AV, food, and beverages. Additionally, planning for an international event requires navigating different regional timelines and time zones, which can extend or shorten the planning process with associated financial implications. Balancing these elements is key to executing a successful and memorable international conference.