ASSOCIATION PURPOSE AND BENEFITS

These members who, as stated in the definition, “band together to accom- plish a common purpose” become the main purpose of the association. The association is made up of its members and the benefits provided to them. The most standard membership benefits usually include the following:

■ Annual national convention and tradeshow

■ Professional continuing education and certification programs

■ Opportunity for interaction and networking

■ Research and statistical data

■ Group hotel, travel, and professional discounts

■ Influence on legislative and lobbyist efforts

Impact of Associations’ Meetings and Conventions

The Destination Marketing Association International (DMAI) (formerly known as International Association of Convention and Visitor Bureaus IACVB) reports that they have as members over 500 associations that hold at least one annual meeting or convention per year. Add to this the state and regional chapters of associations that also hold their own meetings. Though

smaller in attendance, these still provide room nights, as well as food and bev- erage revenue for urban hotels across the country. Financial benefits to the local economy at the destination go way beyond the obvious hospitality industry related services. Just log on to the Web site of any city or area convention and visitors bureau for the latest statistics, which are reported to board members and the general public. (A partial list of CVB Web sites is provided in the appendix.)

The CIC Economic Impact Study, previously discussed in Chapter 1, also shows the tremendous financial impact of the association, and of the meetings and convention industry, on the economy. Most large associations belong to the American Society of Association Executives (ASAE) and the Center for Association Leadership, the trade association for association executives. (Please note that this organization recently changed its name to include the Center for Association Leadership.)

Additionally, their Web site provides further insight into the ways associa- tions are advancing the economy:

■ Associations’ annual budgets now exceed $21 billion, which translates into billions of dollars more in indirect benefits to the U.S. economy.

■ Although largely tax exempt, associations still pay more than $1.1 billion annually in local, state, and federal taxes.

■ Associations employ 260,000 people full time and another 35,000 part time.

■ The ripple effect of association activities on other sectors of the economy is demonstrated by the impact of association meetings and conventions on the travel and hospitality industry. According to ASAE research, association- sponsored meetings and conventions now account for more than 26 million overnight stays in hotels each year.

■ Associations dominate the $102 billion U.S. meetings business. Ninety-two percent of associations hold meetings, accounting for 67 percent of the total meetings industry, according to a study by the CIC.

The association maintains statistics and conducts research on a wide variety of topics pertaining to its members, who represent almost every known indus- try, profession, and avocation. Figure 2.1 shows the homepage from the ASAE

& The Center for Association Leadership Web site.

Now we’ll look at the various types of associations, along with the meetings and events held, so we can better understand the facility needs of each. But first, what do most of these associations attendees (known as delegates) have in common?

■ Unlike corporate meetings, attendance isn’t required.

■ The majority of association delegates who attend conventions pay their own way.

■ Delegates need lower room rates as well as lower travel and registration fees (for the preceeding reason).

■ Delegates intrinsically need to derive a benefit from attending (educational sessions, which offer certifications, can provide this).

Figure 2.2 is also from the ASAE and the Center for Association Leadership Web site. This example shows their monthly publication and services, which

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further illustrates the collective power and value of each association and their respective members.

Defining the Value of Associations

Valuable characteristics of associations are as follows:

■ America’s trade, professional, and philanthropic associations are allocating one of every four dollars they spend to member education and training and public information activities, about three times the amount they spend on direct lobbying of government.

■ Americans active in associations devote more than 173 million volunteer hours each year, time valued at more than $2 billion, to charitable and com- munity service projects.

■ Ninety-five percent of associations offer education programs for members, making that service the single most common association function. This is followed by convention planning and other convention activities (89%), using Web sites and e-mail to share information with members (81%), and public information activities (79%).

■ In terms of annual spending, membership education and training is also the single largest budget item for associations, accounting for $3.6 billion per year, or about 18 percent of the average association’s budget. Additionally, association members spend in excess of $10 billion annually to participate in these education programs.

■ Other noteworthy association activities include industry research, which 7 out of 10 associations offer at a total cost of $615 million a year; and setting industry product and service standards for their industries, which three of five provide at a total cost of about $884 million annually. The survey found that members spend more than $1.1 billion to comply with these association-set standards, which safeguard consumers and provide other valuable benefits.

Size of Conventions

Of the reported 500 associations that hold an annual convention, the number of attendees requiring hotel guest rooms can vary greatly. Current industry statistics break down as follows.

Annual Convention

Average Number of Attendees:

Under 100 attendees = 12 percent 100–149 attendees =23 percent 150–199 attendees =53 percent 2000 or more attendees = 12 percent