December marked AEG Facilities and the City of Los Angeles three-year anniversary of a successful partnership. The private and public entities have worked together to reinvigorate the Los Angeles Convention Center (LACC) and turn it into an excellent economic driver for downtown Los Angeles. Key highlights of the three-year partnership include record-breaking financial results, surpassing the City’s goal of building a financial reserve, new sales and marketing initiatives, and capital improvement projects upgrading the building.
On December 8, 2013, AEG Facilities assumed management of the Los Angeles Convention Center. Since the transition, the LACC has reported increasing operating profits every fiscal year from $1.7 million in the first year of management to $8.1 million in 2016. In the span of three years, AEG Facilities has generated an operating profit of over $11.8 million after reimbursing the City of Los Angeles $4.6 million for the Department of Convention & Tourism Development (CTD) overhead. Additionally, AEG Facilities has surpassed the City’s initial goal of building a financial reserve of $2.1 million in five years with $6.1 million at the conclusion of 2016.
“The financial accomplishments of the Los Angeles Convention Center in these past three years are testament to an effective and efficient public/private partnership,” said Bud Ovrom, executive director of the Los Angeles Department of Convention & Tourism Development (CTD). “Revenues are up, expenditures are down and we have turned a profit every year. This is a partnership that is flourishing and we have the stats to prove it.” The financial success of the LACC is due to key operational improvements with increases in revenue from parking, food and beverage, event rental, and related revenues.
Since LACC’s transition to private management, AEG Facilities has developed a new approach to sales and marketing of the center. The convention center’s brand was re-launched via a new website and a more entrepreneurial approach has led to more events being booked. The LACC and the Los Angeles Tourism and Convention Board (LATCB) continue to successfully interface and partner to book citywide conventions and special events which provide a significant economic impact to the City of Los Angeles. Through this partnership, the number of citywide conventions has increased over 86% from the three years prior. “The relationships between Los Angeles Department of Convention & Tourism Development, AEG Facilities, and the Los Angeles Tourism and Convention Board have never been better,” said Jon Vein, president, board of Los Angeles Convention & Tourism Development Commissioners. “We have worked collaboratively in marketing and sales and after three years have seen our efforts result in increases in citywide convention bookings that drive material revenue/economic impact to the City of Los Angeles.”
Additionally, filming revenue from commercial, television, and feature film shoots has increased by over 20%, with over 100 film projects booked from 2013 to 2016. In regards to marketing, all social media channels for the LACC have consistently grown to support clients and the LACC brand. The LACC has also developed interactive floorplans and virtual tours, accessible on the improved website, that serve as helpful tools to meeting planners and clients.
Reaching $6.1 million in reserves and creating substantial operating surplus has created the opportunity to take on imperative capital and alteration and improvement projects. Between 2014 and the conclusion of this calendar year, $30 million will have been invested in the convention center in the form of completed and in-progress capital improvement and alterations projects funded through the City of Los Angeles and the annual operating surplus achieved through AEG Facilities’ management of the LACC. A few of these projects include the addition of 190 security cameras installed throughout the facility along with a modernized security command center, 20 magnetometers to further elevate safety and security procedures, installation of water saving toilets and urinals, carpet replacement in public spaces, and the re-landscaping of turf with 30,000 square feet of native and drought-tolerant vegetation to conserve water and aid with the Los Angeles drought, among other projects. “In accordance with best business practices, we believe in appropriating our operating surplus toward sustaining and improving the LACC facility,” said Brad Gessner, general manager of the convention center and senior vice president at AEG Facilities. “Since 2013, the LACC has completed and/or is in progress of over 40 capital and alteration and improvement projects to provide a modern, safe, environmentally conscientious, and competitive facility.”
It’s hard to believe that the holiday season is upon us. Where did this past year go? It would be great if we had the space to reflect on all of the incredible things that you, our members, have accomplished this past year. So let me just say that in our newsletter of 2017, we will be doing a year-in-review presentation.
As our thoughts turn to gathering our families around us during this time of giving, your staff at IAVM wishes you a very happy and healthy holiday season… With time to reflect on all of the wonderful experiences we collectively have had in our industry, your IAVM family thanks you for inspiring others, becoming better leaders, and creating personal and professional relationships that will last a lifetime.
Happy holidays, and may your days be merry and bright!
Imagine packing the power of 14 cell towers inside a single convention facility. That’s exactly what the Las Vegas Convention and Visitors Authority (LVCVA) has accomplished at the Las Vegas Convention Center (LVCC) with the launch of one of the nation’s largest Neutral-Host Distributed Antenna Systems (DAS) throughout the property.
Through a partnership with Cox Business/Hospitality Network and InSite Wireless Group, LLC, clients and guests visiting the LVCC will benefit from state-of-the-art wireless voice and data cellular services that are now being transported over the new DAS. This development will provide wireless subscribers a better convention experience as they navigate the LVCC’s 3.2 million square feet, or roughly 26 football fields, of space.
“Today’s world is a wireless world, and to provide a first-rate customer experience, we have to have the infrastructure to ensure visitors have seamless coverage and service,” said Hugh Sinnock, LVCVA’s vice president of customer experience. “Investments like this will continue to provide our clients with the best possible tools for conducting business.”
“With the support of our partners at InSite, we’ve constructed a neutral host DAS infrastructure that will provide reliable, high-speed cellular connectivity within the Las Vegas Convention Center,” said Derrick R. Hill, vice president of Cox Business and Hospitality Network in Las Vegas. “As a result, cell providers will be able to give their customers improved coverage and this will enhance the overall convention center experience for attendees and guests.”
In addition to the center’s existing high-density Wi-Fi network, the capacity of the new cellular DAS is immense. With an ability to deliver service to more than 100,000 guests simultaneously, visitors to the LVCC can expect faster download speeds on their smartphones than typically provided on most corporate networks
Four major U.S. wireless carriers have signed agreements to launch this service. The system can simultaneously accommodate traffic from all of the participating wireless carriers; serving the exploding wireless voice and data demands that are common at today’s high attendance, technology-rich trade shows and events.
The approximately $18 million DAS project took three years to plan and 10 months to build. The job was so large that four separate installation contractors split up the work, tackling different areas of the campus simultaneously. In addition, various specialized construction trades from HVAC to electrical to fire suppression to custom fabricated steelwork were used to support the massive equipment and antenna infrastructure.
Ungerboeck Software announced the launch of a venue-focused, e-commerce solution for exhibitor sales and service.
The Exhibitor Service Center works to increase the volume and value of exhibitor orders while simultaneously improving communication with exhibitors and operations alike.
“Exhibitors are demanding a true Amazon-type experience while buying their services and I am excited that our venue customers will now be delivering that,” said Ungerboeck Software CEO Manish Chandak. “This product puts venues back in the driver’s seat in terms of exhibitor sales and revenue. With marketplace features like this, it’s just an incredible opportunity to open the floodgates on a whole new revenue stream.”
Services like electrical, internet, security, rigging and items such as furniture and catering are presented via a branded website with a familiar, Amazon-like user experience. Recommendations, suggestions, required services, related upgrades and bundled packages make upsells and cross-sells easy and natural, while the ability to designate featured items draws attention to best-sellers and offerings with higher profit margins. Easy access to important information like deadlines for advance and standard pricing cutoffs, item descriptions and instructions cuts down on time-intensive back and forth with exhibitors, while the immediate availability of submitted orders in both the Ungerboeck database and to the operations team eliminates confusion with venue staff.
“The real value of the solution is that it ties the front-end experience to all of order processing including payments, inventory, item placement and delivery times,” said Ungerboeck Vice President of Product Marketing Shannon Terrill. “Just in the short time it’s been available to our Beta users and early adopters, there have been some significant year-over-year increases in exhibitor sales and satisfaction – and this is all as they’ve spent less time and energy focused on exhibitor sales and service.”
Tammy Koolbeck, executive director of the Venuworks-managed Iowa State Center, announced the promotion of Holly Boman to director of marketing.
Boman has more than 15 years of experience in advertising, marketing and management and is deserving of the promotion, according to Koolbeck. “Holly has been an integral part of our staff since VenuWorks assumed management of the Iowa State Center,” Koolbeck said. “She stepped up to take on more responsibility earlier this fall and earned this promotion with her creativity and work ethic.”
Boman joined the marketing team at the Iowa State Center in 2014 and quickly advanced to the role of director of marketing. Prior to her position at the Iowa State Center, Boman served in management positions with the Des Moines Register and the Daily Tribune, responsible for managing classified and retail sales teams, training and budgeting.
As marketing director at the Iowa State Center, Boman will oversee marketing operations, while guiding the definition and demonstration of VenuWork’s vision for the center.