HSM 480 test 1 study guide

Iterative Process

A repetitive approach used in planning and problem-solving, where the process is refined through repeated cycles.

Budget Types

deficit, break even, profit, zero-based, and incremental.

Variance

The difference between budgeted and actual figures, used to assess performance.

Meetings

Primary activity is educational or business related in nature

Events

Organized occasion with several different, yet related functions

Are meetings and events defined as the same thing?

No

SWOT Analysis

Strengths, weaknesses, opportunities, threats

Internal analysis of SWOT

Strengths and weaknesses

External analysis of SWOT

Opportunities and threats

Examples of meeting stakeholders

Top-decision makers, sponsors, vendors/suppliers, attendees, hosting organization

Is meeting planning an iterative process?

Yes

Profit budget

Gain a profit for organization during its event (revenues>expenses)

Zero-based budget

No previous budgets (starting from scratch)

Deficit Budget

Expenses>revenue: Sales, training, board meetings, celebratory events

Break-even budget

Revenues = expenses: spend as much as you gain/ profit: government events

Incremental budget

Uses a financial performance or existing budget: make adjustments to customize that year

Portfolio management

Approach of evaluating efficiency and effectiveness of meetings

Measurement

Value of meetings and value of group meetings

(data collection, evaluation, analysis) (detailed objectives and tactics come into play)

Advanced logistics

Vendor/supplier coordination

(Venue, F&B, Transportation, Registration/Housing, Technology, Others)

Meeting Design ⭐️

(Most important step) purposeful shaping of a meeting’s structure and content to accomplish and enhance crucial organization objectives

(Communication, high interactivity, investment results)

Variable costs

Affected by attendees

(F&B, Lodging)

Fixed Costs

Incurred costs regardless of # of attendees

(Venue fees, adverting/marketing)

Overhead/ indirect costs

Organization costs that are not directly related to the meeting

(Salaries)

How to calculate Variance

Actual - Budget

How to calculate variance percentage %

Variance / divided by / Budget x 100

What affects room rates

Seasonality, location, program format {# of attendee rooms needed}

(Providing attendees’ expected room rate range can better guide negotiations with hotel and meeting team)

How seasonality affects the meeting planning process

Room rates: # of rooms you can get at certain pricing (cheap in off-season ~ expensive in peak season)

Availability of space: is it worth it to book your event with the hotel based on price/ benefits/ seasons/ if they have enough space for your event during that season (if already booked up)

Availability of dates: in peak season, the hotel may be booked up on your event dates (you have to be flexible or have different possible dates if you want a certain hotel)

Factors that influence food and beverage decisions

Catering managers 🤞🏽meeting planners

Operational constraints (venue, destination, menu complexity, allergies/diets)

Space requirements (guest comfort over max capacity, setup aspects, rule of thumb)

Menu selection

Trends

Demographics/ group profile

(Timing- Service ratios- Guarantee numbers- Function schedule)

Alcohol

Strategic planning steps

Organizational strategy (define purpose on organization level)

Business unit goals (define purpose on unit level)

Objectives (create specific items to accomplish)

Tactics (create specific action plans

Who creates the RFP

The event planner

True or false: seasonality describes periods of time where demand is high, low, or shoulder, which affects room rates and additional fees

True

I am a planner working on a 3 day conference. I want to host several small sessions all at the same time. What are they called?

Breakout sessions

Most event participants attend a breakfast function true or false

False (only 50% do)

F&B trends of 2024-25

CBD Infused food

Multi-sensory dining experience

Mocktails

Why do we budget

Understand how to allocate revenue sources

Create financial performance indicators

Keep the overall planning process on track