AMC Institute News Releases

Survey of association management companies documents major role in hospitality commerce

ATLANTA (May 8, 2003) — With an estimated 147,000 U.S. associations in existence today, the association meeting business has become a prime client of the hospitality industry. According to the American Society of Association Executives (ASAE), associations sponsor an average of two meetings or conventions each year. Association Management Companies (AMCs) play a major role in these bookings, averaging 34 meetings per AMC, according to a survey released this month by the AMCinstitute. The survey revealed that AMCs book over one billion dollars annually in combined convention services and room nights.

The new survey conducted by the AMCinstitute found that AMCs handle 18,155 total meetings per year for association clients, encompassing an estimated 2 million room nights. How much does this bring to the economy? AMCinstitute estimates that, for major meetings, AMCs spend an average of $204,992 per meeting, for an annual total of $772 million industry-wide in meeting services from hotels, convention centers and other facilities around the U.S. Meeting expenses include costs for meeting room rental, entertainment, food/beverages, audio-visual equipment and technicians, VIP guest rooms and security. The 2 million room nights documented in the AMCinstitute survey translate into a dollar value of up to $400 million in hotel nights alone for AMC client associations.

“With conventions and meetings representing an association’s single largest source of non-dues income, it’s no wonder that AMCs have such a significant impact on the meetings management business,” said Dee Ann Walker, chair of the AMCinstitute. The AMCinstitute is a joint marketing venture of ASAE and the International Association of Association Management Companies (IAAMC) that serves as a marketing, education and informational resource for AMCs. “Not only do our managed association clients rely on us for the buying power provided by an AMC and its professional meeting services, but many stand-alone associations are now outsourcing meetings management to AMCs for the same reason,” Walker added.

And the trend is upward. According to Convene’s 12th Annual Meetings Market Survey (released in March 2003), even with a challenging economy 84 percent of associations will maintain or increase convention/ meetings budgets this year.

“The math translates into a lot of convention services and hotel room nights booked by AMCs on behalf of associations, and the numbers will continue to grow as associations increase their outsourcing due to economic conditions,” said Carol Buseman, director national accounts for Hyatt Hotels and Resorts. Buseman added, “We see firsthand the high quality and value-added services AMCs bring to their association clients as meeting and convention event planners.”
Where are these AMC-booked rooms? Cities from the United States make up the majority of AMC-booked room nights, at 85 percent of the total. The list of most popular host cities is a diverse group. Washington, D.C. came in as the city with the most room nights. Orlando, San Diego, Boston, New York and Chicago round out the top six in annual hotel room nights booked by AMCs.

As noted by the ASAE in its recent survey, only 52 percent of associations have full-time paid staff devoted to meeting planning. With the importance of meetings as revenue generators, associations listed “gain access to expertise” as the top reason for outsourcing. Outsourced services is a major reason for the growth among AMCs, coupled with the fact that volunteer leaders of associations are acquiring even more responsibilities and demands on their professions, which limits their available volunteer time. Since 1990, the number of AMCs has increased by 40 percent, according to the AMCinstitute.
As for-profit businesses that provide professional services to numerous associations and societies, in addition to meeting planning and administration AMCs manage association finances, membership development, marketing and public relations, information technology, new media and other services.

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