 SHOULD THE
INCENTIVE INDUSTRY CHARGE FOR RFP’S?
By Dries Jacobus,
Managing Director Incentive Agency Borealis
 Dries Jacobus started his career in
1996 at the Antwerp-based agency Hebo before joining BBL Travel
American Express (now American Express Business Travel) as Incentive
Manager. In 2002, just 6 months after 9/11, he founded his own
agency : Borealis. It is the only fully licensed SITE member
in Bruges (and northern West-Flanders). He successfully combines
incoming and outgoing management. Only four years after creating
his agency, he won the SITE Crystal Award 2006 for Best Incentive
in the World, in the category “Staff Incentive up to 200 participants
up to 3 nights”. Until today Borealis is the first and only
SITE Crystal Award Winner in Belgium. Dries is also Member of
the Board of SITE BeLux.
I have been in this business for some 12 years. So for 12 years
I have heard about the issue of “to charge or not to charge” for
an RFP (Request for Proposals). Many of you have been in this industry a lot longer than
myself, and I am sure you also had to hear this since the beginning
of your careers.
SO, WHY AN ARTICLE ON THIS TOPIC?
It is clear that there is more than money in life, and let’s
face it, we are blessed to work in a great industry. But it is
frightening to hear that some DMC’s (Belgian and other)
are working at a success rate of hardly 10%. That means that 90%
of what they do is to be filed, and will never be given concrete
form … When I mention this to any entrepreneur from any
industry, they are surprised we are even still alive…
 As
a result I see more and more standardization on the supplier’s
end, in order to control costs. On top of that “fast”
often means “good’ or “more chance to get the
business”.
In my opinion, too many incentive agencies have become group travel
agencies. They pretend to be a real incentive house. Until you
dig deeper. Then you hear that in fact quite a lot of their business
is pure group travel, even tour operating.
Nothing wrong with this, I am not Mr. Morality, it is simply the
gradual changing of the market. But then I ask myself, is this
change in the market (which is obviously driven by our clients)
not the result of this standardization? Some of our clients don’t
know what our industry can offer, how we work and that there is
more on the market than “group travel” sold as “incentive”.
This may have become a vicious circle. If you ask me, we are in
the middle of it, so it is time for action.
Why is it that nobody dares to charge for an RFP? Today it is
happening in the events-industry (yes, in Belgium), where the
big agencies are now charging for the big pitches. They are damn
right.
No offence to any other profession, but when for
example your plumber comes to repair your sink, you will pay him
for each minute he is present at your home. If you are unlucky
you will even have to pay for each kilometer he drove to come
to your home. Sometimes we wait for days until he shows up (if
ever), and find it acceptable… Is that normal? Not at all,
but somehow they managed to get the public so far that we take
it for granted. In the incentive industry we are expected to be
AND creative, AND respond within 24 hours AND do it for free.
 You will agree something is wrong here…
Professionalism comes at a cost. A cost which needs to be covered.
I am not even talking about insurance or other overhead costs,
but purely the cost of labor and creativity.
In a study carried out by the British Event Industry, 50% of the
agencies respond that they work longer than 25 hours to make an
RFP! That same survey also shows that the average profit margin
in the industry is 25,68%. A margin we can only dream of.
Everybody in the industry complains about the fact that they either
don’t find the right personnel, or that they have difficulties
paying them. As a result mainly experienced staff is contracted.
It is hard for young professionals to enter this industry. When
hiring staff, you need an almost immediate result. If not, cost
is too high compared to the profit.
The statement that it is the fault of the previous generation
doesn’t make sense to me, as it is a worldwide problem.
We are (more than ever) identified with tourism where cheaper
is often better. Yes, this is a price-driven industry, but I always
say to many of my colleagues that we don’t work in tourism.
Our industry comes close to a closet called “Tourism”,
so that is we are being put in. Everybody needs a label. Everybody
needs to fit in a closet. This job has little or nothing to do
with tourism, but everything with marketing, communication and
international business. In any case, our industry is so specific
that a new label needs to be invented. Or even better: don’t
give us any label at all. Let us be the creative free riders…
Therefore, it is time to start up the discussion how we can cut
ourselves loose from the label “tourism company”.
Let’s open the path to how we can upgrade our status, upgrade
our industry, upgrade our professionals, upgrade our service,
upgrade our image, and ultimately upgrade our income.
 Most of you will say that the road to hell is paved with good
intentions, that we will shoot ourselves in the foot etc…
An understandable reaction. But if we all look deeper, we know
a change would be more than welcome.
If the industry’s net-income goes up with only as little
as 5%, it would bring the necessary oxygen to train the right
people, invest in software, offices and ultimately : service.
One of the possibilities is to charge for RFP’s. It will
also decrease the shopping around by some of the –well-known-
corporate “clients”. Everyone is always “busy-busy”,
but the output is fairly low. If the inflow of shop-around RFP’s
is cut down, the income rises because clients are paying for RFP’s,
we can finally do what we all are in this business for: be CREATIVE
and THINK OUTSIDE THE BOX. And let that be exactly the reason
why our industry exists!
God, I love this job!
About the author
 Dries has obtained 2 Belgian bachelor degrees.
One in Business Communications and one in Tourism. He passed
the entry exam for Cambridge University (UK) with the highest
possible score (AAA), and followed a 6 months course International
Business and Marketing at Sheffield University (UK).
After having started at Rendevenement, he quickly went to
work for Hebo in Antwerp, where he could do what he wanted to
do : organize and travel. In 1999 he joined BBL Travel American
Express to be head of the Corporate Events department.
Rowing against the stream seems his specialty, as early 2002
only 6 months after 9/11 he started his own agency. The
industry was at its lowest level since the first Gulf War, but
Dries decided not to be a sitting duck, and jumped into the
black hole…
Dries never wanted to join SITE until he felt he was ready
for it, and actually deserved it to wear the SITE-logo. It resulted
in already becoming member of the board in his second year membership.
Only four years after its creation, Borealis, his company,
hit the bull’s eye by winning the  SITE Crystal award. It is
the highest award in the MICE-industry in the world. He is still
the first and only Belgian winner.
Info : dries@borealisdmc.com and www.borealisdmc.com
|
