Charlatan de MICE
A “renowned” consultancy expert in the events industry promised a leading global hotel chain the most incredible results. In no time, he was supposed to ensure:
- 80 to 90% occupancy of event capacities year-round, regardless of season or market.
- Doubling the number of international events in the first years of cooperation.
- 9000 new MICE guests, attracted exclusively through his personal network.
- Reaching 70% of all European event organisers with a single digital campaign.
- Direct access to an elite network of event organisers that regularly host events in Asia, America, and Europe.
With tongue in cheek, I replied that he was visited by none other than the Charlatan de MICE.
My phone rings: it’s a colleague, a director of a large hotel, who wanted to inform me about this ridiculous consultancy offering. He half-jokingly reprimanded me for stating that our industry and business is a marathon, when other consultants are sprinters – fast, effective, and, as he said, “masters of their trade”. With tongue in cheek, I replied that he was visited by none other than the Charlatan de MICE.
Yet, my colleague refused to stop praising the expert. He excitedly told me that the consultant personally knew all the stakeholders in the industry, that he would take care of everything himself, with no need for additional teams. He personally guarantees results, with a small investment of a few hundred thousand euros.
Who is a charlatan?
Another colleague in charge of a renowned event destination reached out with a similar question. She asked me for my thoughts and analysis of a serious, if dream-like, consultancy offering that they received at a public tender. I remained neutral when she mentioned specific names, as I wouldn’t want that either as a consultant myself. I focused purely on the content and actual needs of clients, trying to find what was best for both parties in the given situation. Throughout the discussion, I pondered the role of consultants and whether and when AI will take over their jobs. I wondered why someone would even hire a consultant if algorithms can study an incredible amount of data immediately, make scenarios, and propose effective solutions. Yet, I realised that consultants are not only paid for knowledge and information but also for interpretation, context, and, most importantly, human touch. I am sharing my thoughts about consultancy in the hope of helping you avoid charlatans, who, alas, can be found in every industry, even ours.
The definition of a charlatan is straightforward: a charlatan is a person falsely claiming to have special knowledge or skill.
Most often, charlatans are not purposely deceiving others, but are simply overly ambitious individuals and would make even the greatest Hollywood stars go green with envy. Of course, they also need naive clients, most often from destination organisations.
Who are the main groups of consultants in our industry?
Specialised consultancy companies with developed methodology and tools
This group of consultants is likely your best bet, as they combine rich know-how and experiences gathered by a competent team. Their methodologies are tested in practice, their tools are effective, and their references are transparent. Unfortunately, there is only a handful of such experts in the events industry. That is why they are valued all the more (believe it or not, there are only 5 to 7 such companies).
Consultancy companies specialising in tourism, marketing, and similar industries
Such consultancy companies are experts in fields related to the events industry and have an expansive team. However, they do not have specialised experts or tools for the industry. They successfully transfer methods from other fields into our industry.
Educational institutions (faculties, institutions)
They offer a wealth of academic knowledge and research capacities for clients, often with the help of students on internships. Their advantages are fresh outlooks and analytical support, while their drawbacks are a lack of practical experience and know-how for effectively implementing solutions in the real world.
Lone-wolf consultants
Most often, these are former CEOs or Managing Directors with years of experience. Sometimes, these can also be professors or scholars who want to go from theory to practice. They are marked by rich personal experience, individual approach, but usually do not have access to broader methodologies, tools, or a support team because they work alone.
Sales representatives
Sales representatives are also, in a way, consultants, or at least, how I see them. Their database of contacts seems limitless, but no matter the wealth of the sources, it will soon go dry if only one person works on it. That is why systems, teamwork, and tools matter most. In the long run, those who know how to share knowledge, build structures, and develop processes end up on top, not those who are stubborn and always work alone.
Charlatan de MICE
This is an expert who presents themselves as a jack of all trades, yet is the master of none. Often, they are guided by vanity and a lack of critical judgment about their knowledge and competencies. They feel most comfortable in a group, yet their negligence and confidence can be their downfall, leading to clients being disappointed.
I might have missed additional groups, but the role of consultants has evolved tremendously from the stereotypical senior consultant to those on the market today. Modern consultancy is incomparably more dynamic, interdisciplinary, and closely connected to digital tools and other modern amenities that individual consultancy groups cannot capitalise on. In short:
- A long time ago, a business consultant was an authority in their field, an experienced director or member of a renowned consultancy agency, with know-how in destination management, marketing, and economy.
- Today, a business consultant is, by far and large, anyone with competencies and knowledge, often skilled in the digital world, specialised in a niche, and capable of quickly solving problems and bringing added value to clients.
The dilemma of which individual consultant to work with is no longer relevant. What clients should consider is which consultancy group or consortium they should include to holistically address all key issues of the client.
For instance, let us suppose a company requires a world-class pre-investment study about a new conference centre. The study must thus include experts in urbanism and architecture, finance and investment experts, marketing and sales professionals, seasoned veterans in the events and tourism industry, and sustainability leaders. Without a multidisciplinary team working together, such a study cannot be considered comprehensive or holistic. Connecting knowledge and experience from various fields is paramount – from understanding the local environment and global trends to financial feasibility.
Similarly, let’s consider an example of a destination strategy. Such a strategy requires a slew of experts. from analytic experts, tourism planners, marketing and financial professionals, to legal experts. In addition, such a study requires the cooperation among experts in communication, design, and marketing to make the vision, mission, and goals understandable to the general public and policymakers.
To provide even more examples, let’s consider a marketing and sales project for a new event venue. Besides the mentioned professionals, you also need a multimedia expert, a production head, and creative thinkers who know how to transform an idea into an unforgettable experience. Moreover, you require professionals in sales and a product launch chief.
To illustrate, let’s take a look at the investment in the Zagreb Exhibition Centre, estimated at 51 million EUR. This number is suggested by a pre-investment study quoted by most Croatian media outlets. You can learn more about the investment here.
According to international standards, the pre-investment part of the project alone should represent at least 3% of the entire investment. In other words, the budget to prepare the studies, surveys, and expert evaluations should amount to at least 1.5 million EUR. In practice, though, these funds are poured into marketing surveys or financial, legal, and architectural consultancy.
The marketing aspect is even more important. Global experience shows that at least 5% of the investment must be ensured for marketing and developing the brand to make a successful debut of a conference and exhibition centre. This ensures:
- Designing and developing a holistic brand (branding, visual identity)
- Establishing a recognisable digital presence (website, booking engine, CRM)
- Pre-launch campaign (PR, social media, roadshows)
- Establishing connections with MICE distribution channels
- Sales representation in key markets
All in all, every project of this magnitude should ensure a minimum of 5 to 6.5 million EUR in the preparation and marketing phase. Without these funds, it is impossible to talk about a long-term, successful, and internationally competitive project.
Yet the world keeps moving...
As I peruse the daily news, I read that Poreč will soon restart the construction of the five-star resort and conference centre Pical, estimated to be worth a whopping 139 million EUR. In this context, the President of Valamar Hotels’ Board, Željko Kukurin, faces a predicament: picking the right consultants for such a strategically vital project, especially in the field of events and congress tourism. Events will ensure the hotel is fully occupied year-round. Supposing that a not insignificant 25% of all income will be generated by events, and given that international standards dictate that at least 8% of the total investment must be directed at consultancy, the numbers quickly become impressive. In this case, the total consultancy costs would amount to 11.1 million EUR. At least 2.8 million EUR would thus be directed into event consultancy services from that sum.
This is nothing more than a speculation about the new project, but it still begs a key question: How strategically will Valamar approach the positioning of this resort locally and internationally?
Managing event destinations and venues could easily be compared to flying. Just like the aviation world, it is a complex activity that depends on data.
A while ago, I wrote that flying would be impossible without flight instruments and triple flight control: pilot, copilot, and control tower. Managing event destinations and venues could easily be compared to flying. Just like the aviation world, it is a complex activity that depends on data. Despite this, many destinations and venues continue to fly blind, relying solely on instinct. Most often, they do this with consultancy.
A simple list of five things to check before partnering and flying off with a consultant (we all know them, but often overlook them):
1. References – proven projects in the events industry
You must check whether the consultant or consultancy agency has transparent and credible references in the events industry and whether their methods have been implemented before.
2. Methodology – tried-and-tested tools and methodology
Serious consultancy firms have developed in-house methodologies, analytical tools, and transparent processes. If someone only relies on personal contacts or charisma without measurable methods, the alarm bells should be ringing.
3. Expert team – who is behind the project?
Complex projects demand multidisciplinary know-how (urbanism, architecture, finance, marketing, sustainability, and project management). One person cannot achieve everything on their own. You should always check who is part of the team.
4. Realistic promises and achievable goals
The goals should be measurable, attainable, and achievable in a set timeframe. If someone promises you they will double the number of your international events in a single year, you might be talking to a charlatan.
5. Transparent costs – a clear overview of what you pay and what you get
Demand a breakdown of the project costs (additional services, hidden fees, etc.). Pay attention: the consultant can ensure the processes are flawless, but they cannot guarantee results.
Yet, the world keeps on moving, and the number of charlatans seems to swell all the time. Why? Because humans are hardwired to take chances. We love to believe in shortcuts, instant solutions, and wonderful promises of 90% occupancy rates and earning twice the yearly income overnight. But, deep down, we know there are no miracles in this industry. Hard work, methodologies, frameworks, and patience are the keys to success. Yet, the temptation of an instant solution is almost impossible to resist. Hence, charlatans always have enough leverage to find their audience again and again.
In an era of charlatans, the events industry needs excellent consultancy services more than ever.
Charlatans flock to industries where millions abound. Their promised miracle solutions sound attractive, even if, in reality, they are a waste of time, money, and credibility. In a way, deciding on a consultant is also a test of the client’s maturity. Only those with the courage to say no to empty promises will lead their projects with a moral compass and avoid turbulence that has cost many destinations their bright future.
In an era of charlatans, the events industry needs excellent consultancy services more than ever. Most projects are too complex and important for clients to manage based on their instincts. Hence, investing in distinguished experts is an imperative, not only a cost. It is a guarantee for long-term competitiveness and sustainable success. Those who choose the right team today will reap the rewards on the global event market tomorrow.
POWER TO THE MEETINGS!
