THE MINISTRY OF EDUCATION AND RESEARCH THE ACADEMY OF ECONOMIC STUDIES Bucharest

PhD. THESIS

Scientific coordinator: Prof. Univ. Dr. Radu EMILIAN

Economist PhD. Alin BURCEA 2005

THE MINISTRY OF EDUCATION AND RESEARCH THE ACADEMY OF ECONOMIC STUDIES Bucharest

THE TOURISM AGENCY MODERN CONCEPTS IN THE DEVELOPMENT OF ROMANIAN TOURISM

Scientific coordinator: Prof. Univ. Dr. Radu EMILIAN

Economist PhD. Alin BURCEA 2005 The Tourism Agency

Contents
Introduction Chapter I The role and importance of tourism in the Romanian economy 1.1. The economic importance of tourism 1.2. The socio-cultural importance of tourism 1.3. The importance of tourism in environmental protection

Chapter II New concepts used in the management of tour-operator travel agencies 2.1. Defining the concept management; the characteristics of the management science 2.2. Short history of the management science 2.3. Modern concepts in the management science 2.3.1. Strategic management 2.3.2. Entrepreneurial management 2.3.3. Motivational management 2.4. Modern trends in managing tour -operating agencies

2.4.1. Modern management systems at the tour-operator level 2.4.2. Specific methods of managing a tour-operating agency 2.4.3. The management of the travel agency and the present legislation. Conclusions

Chapter III Trends in international tourism. Business Tourism 3.1. Events management 3.2. Official trips management 3.3. Incentives management 3.4. Large company trips management

Chapter IV Business tourism: history and concepts 4.1. Short history of business tourism 4.2. Concepts and theories regarding business tourism 4.3. Similarities and differences between business tourism and leisure tourism 4.4. The advantages of business tourism for destinations 4.5. The business tourism market 4.6. Organising meetings

Chapter V - World wide business tourism trends 5.1. The present status of business tourism 5.2. International bodies and organisations in business tourism 5.3. Business tourism in different countries in the world 5.3.1.USA 5.3.2.Japan 5.3.3.Germany 5.3.4.Spain

Chapter VI - Romania- a business tourism destination 6.1. General presentation of business tourism in Romania 6.2.Business tourism organisation in Romania 6.3.Business tourism and the hotel supply in Romania 6.4.Conference and exhibition centres 6.5.The travel agencies offer

Chapter VII The management of a business tourism agency in Romania 7.1.Main activities in business tourism in Romania from the tourism agency perspective 7.1.1.The management of business tourism for official trips 7.1.2.The management of CORPORATE tourism 7.1.3.The management of business tourism for not for profit associations and other organisations 7.2.Organising a business tourism agency in Romania 7.2.1.T icketing 7.2.2.Hotel booking abroad and in the country 7.2.3.Incentives 7.2.4.Events

Chapter VIII New concepts in the Tourism Agency management. Business tourism, a modern solution fopr the development of Romanian tourism 8.1. Paralela 45 tourism agenc y presentation. Short history 8.2. New concepts in the tourism agency management 8.2.1. Demand for business tourism and travel

8.2.2. Business Travel 8.2.3. Events 8.2.4. Incentive travel Conclusions

Bibliography APPENDIXES

KEY WORDS - used in the paper Tourism agency Concepts Management Business tourism Corporate Incentive Conference Congres s Exhibition Event Classes Team-building Ticketing Tour-operator

THESIS SYNTHESIS Modern concepts in the development of Romanian tourism

Chapter I The role and importance of tourism in the Romanian economy 1.4. The economic importance of tourism In the present, tourism holds a very small share both in the G.D.P. and other important macroeconomic indicators: investment, physical immobilizations. Its development would lead to the multiplication of the effects, both vertically and horizontally. The quality of tourism services and the size of the tourism activity depend on level of endowment with the necessary specific means. It is absolutely necessary that the investment efforts to continue, because the present endowment does not properly show our countrys tourism potential true value. It is also important to find new niches which will permit the using of the existing infrastructure and of the anthropic potential at a superior value.

1.5. The socio -cultural importance of tourism The level training for tourism workers is one of the most important factors of work productivity, allowing the obtaining of superior performances and superior quality services. The major problem of tourism in Romania is level of training, and its upgrading needs great efforts. Socially, the creation of new workplaces in tourism is extremely important (although in Romania, in tourism, 140.000 people are employed). Modern tourism helps the revitalisation of cultural activities, promoting the Romanian cultural potential.

1.6. The importance of tourism in environmental protection Tourism is a sector closely related to the environment thr ough the dependency on the natural potential and, thus , tourism must act towards sustainable development in order to ensure the quality of the resources and, most of all, their survival.

Chapter II New concepts used in the management of tour-opertor travel agencies 2.1. Defining the concept management; the characteristics of the management science 2.2. Short history of the management science 2.3. Modern concepts in the management science 2.4 Modern trends in managing tour-operating agencies 2.4.1. Modern management systems at the tour-operator level The management through objectives is extremely important. Generally, agency managers in Romania do not communicate with their employees, do not analyse the companys activity together with their employees, do not present them the objectives that need to be fulfilled, both for the company as a whole and (especially) for each department and each employee, in the end. The most difficult thing is to establish the objectives clearly, according to the market and the company development capacity, for each objective a manager being named. The responsibility should be clear, well established, unipersonal. Obviously, managers must be flexible and be given enough freedom in order to achieve these objectives. The last stage must not be forgotten the analysis and the evaluation of the results, which practically represent the premise of the new objectives. The management by delegation is very important as well. Decision delegation (90%) must arrive at the middle management. Department heads are those who, practically, take the decisions, representing the General Managers working group. The management through the product can be assimilated, in a tour-operating agency, with the destination management. It is obvious that their needs to be a coordinator, a manager for each destination, especially for large operations (charter flights). . The management through projects is generally used for unique actions, the best

example being in business tourism events organising. Practically, each event can be considered and treated as a separate project.

2.4.2. Specific methods of managing a tour-operating agency Distribution networks: a. their own b. franchise c. system sale (disk)

A comparative analysis can be done between two agencies, from the management methods point of view. a. Marshal Turism The president of the company Mr. Ion Antonescu, adheres to the theory I am the company. I know everything, you know nothing. Decisions concentrate generally, into one hand, which makes the decisions flexibility of the department managers and staff to be extremely low. Another consequence is the high employee fluctuation and the relatively low level of professionalism. b. Paralela 45 The management by delegation is pre -eminently used, especially at the department management level. Managers for each destination are named and a team is formed. Meetings take place to analyse results, to establish annual objectives and the responsibilities to attain these objectives. The companys President management principle: I am not the company.

Chapter III Trends in international tourism. Business Tourism 3.1. Shortly defining of the concept of management 3.2. Events management 25 functions for the planning of events and 17 conditions for the accomplishing them have been identified. The 25 functions are: Establishing the events objectives; Selecting the place where the event will be held and the necessary facilities; Negotiating the facilities ; Establishing the budget; Making the bookings; Choosing the transport means ; Planning the programme ; Planning the guide and the documentation; Making the registering procedures; Establishing the additional services; Coordinating the conference activities; Planning (coordinating) all the services that will be supplied; Transport;

Planning the accommodation The exhibition management; Food services management ; Determining the demand for audio -visual services; Selecting the presenters; Programming the pleasure activities; Promotion and advertising; Developing the guest and family programmes; Producing and editing the event documentation; Distributing the gratuities; Post event evaluation.

The independent conditions which influence the planning of the event functions are: Establishing the date for the ev (season, year); ent Working conditions (syndicate); Length of the event; Number of participants; Place (location) facilities (city centre, tourism resort) and type (convention centre/ conferences , hotel); Meeting objectives (education, incentive, exhibition, product presentation) The type of organisation (association, government group, religious group) Place (geographical location) Budget (sponsored, profit) Participants status The managements responsibilities Spaces demand (exhibition space, meeting, banquet) Transport variables (ground or air operator, transfers) Participants (age, genre) Social events Special requests (food, handicaps) Weather

3.3. Incentives management An incentive programme is an action plan to motivate the employees to do the right thing for the company, in order to increase the productivity and the sales volume. Research has shown that giving bonuses or commissions does not represent a sufficient stimulant for performance growth. Incentive programmes can succeed where money failed. An exotic holiday in a place where the employee did not dream of visiting is the best stimulant to make the employees objectives be the same as the companys. These incentives can be offered individually or in group. Generally, there is a travel manage r who will establish the objectives and the budget. Large companies work, as clients, with travel agencies specialised in the creation of incentive packages for groups or individuals.

3.4. Large company trips management Generally, large companies have created departments specialized on travel. Even smaller firms have a manager or another person responsible for these issues. Financial directors are interested in the creation of such departments because savings can be done through a more efficient organising of trips. For most accommodation, the travel department of companies represent an interface between the employee-traveller and the travel agency contracted by the company.

Chapter IV Business tourism: history and concepts 4.2. Short history of business tourism It can be said that business tourism is the predecessor of classic tourism. The first business trips have been done by small traders and artisans who were travelling for thousands of kilometres to sell their products. In the Middle Ages, na val transportation was preferred because of the costs.

With all the difficulties met (pirates, shipwrecks, and reduced transport capacity) sea transport was infinitely cheaper than land transport: 2% of the products value for wool or silk ands 15% for grains . The Silk Road the biggest business trips route of all times. These roads have stimulated the development of accommodation towns and of camel and guide transport services. Other professional sectors which were practicing, in an incipient form, business travel: priests , soldiers (mercenaries) and workers, migrating to search for a workplace. At the beginning of the 20th century, the concepts of conventions (conference) appear in the US. The first offices for events organising appear in cities: Detroit (1896), Cleveland (1904), Atlantic City (1908), Denver and St Louis (1909), Los Angeles (1910).

4.1. Concepts and theories regarding business tourism The word tourist is named by Pegge in 1800, in his paper published in London, Anectodes of the English Language, where he says that A traveller is nowadays called a Tourist. WTO defines the main motivations for travelling in: leisure, recreation and holidays, VFR (visiting friends and relatives), business and professional motivations, medical treatment, religion and pilgrimages. Rob Davidson defines business tourism (1994) as the activities of people travelling for work related reasons which are remunerated in their place of residence. Forms of Business tourism: -International Congresses and Convent ions; -Local Conferences and Meetings; -Trainings (classes); -Commercial Exhibitions and Fairs; -Product Launches; -Incentive travel; -Individual Business Trips.

4.2. Similarities and differences between business tourism and leisure tourism. Transport, accommodation, food services, information and promotional services, tourism agency activities, attractions are present on both markets. The main differences are: DIFFERENCES Influence factors Who pays? Leisure tourism The tourist Business tourism The tourists employer or associations of which the tourist is member Who decides the destination? The tourist The meeting/incentive trip/conference organiser (planner) When do these trips During holidays take place ? and week-ends All year Monday to Friday Organisers (planners) may take delegates wishes into account July and August are avoided for major events Lead time (the period of time between the booking and the departure ). Holidays are usually booked a few months in advance; for a few days trip the booking can be made a few days before. Who travels? Anyone with enough time and money Those persons whos work needs travelling or Some business men/women are accompanied by Important conferences are planned a few years in advance Some business trips can have a short lead time Company owner pay for themselves SIMILARITIES

association members people not involved in the event. What types of destinations are All types: sea, urban, mountain Generally concentrated in Incentive travel destinations are

used?

and rural

cities in industrial areas

similar to those for mass tourism

Source : J.Swarbooke, Susan Hower, cited, p.11

There are four major similarities between leisure tourism and business tourism a) business travellers become leisure tourists once the workday has ended c. a conferences programme include leisure activities for delegates d. incentive trips means offering a holiday as a reward for the work done e. many business travellers are accompanied by partners and/or children who are travelling for pleasure and not business

4.3.The advanatages of business tourism for destinations Revenues are much higher then from leisure tourism; Reduction of seasonality (usually events are organised in low or intermediary season).

4.4 The business tourism market

Suppliers hotels, transport means, restaurants, conference centres, halls. Beneficiaries - a) Corporate sector b) Associations c) Public sector.

4.5 Organising meetings In every company, the marketing director or T.M. decides the o rganising of reunions. For a company with over 20 meetings per year, a corporate organiser is appointed, specialised in organising business meetings and conferences.

Chapter V - World wide business tourism trends 5.1. The present status of business tourism In 2004, 9160 reunions took place in 223 countries and 1557 cities. The number of reunions was 12% (1253 reunions) smaller than the one in 2000 (when there was a record number of meetings). Regionally, the number of reunions reduced with 11% in Africa, 11% in Europe, 6% in North America, 16% in South America, 2% in Australia and The Pacific, and grew with 14,9% in Asia. The percentage of each continent in organising reunions in 2004 was: Table 5.1.1. The market share of reunion organising on continents in 2004 Continent / Market share Total Europe North America Asia South America Africa Australia and The Pacific Source: www.uia.org Table 5.1.3. Top 10 cities organising international reunions in 2004 City 1. Paris 2. Vienna 3. Bruxelles 4. Geneva 5. Singapore 6. Copenhaga 7. Barcelona 8. London 9. Berlin 10. Seul Reunion number 221 219 190 188 156 137 133 131 110 109 Percentage of total (%) 2,41 2,39 2,07 2,05 1,70 1,50 1,45 1,43 1,20 1,19 2004 100 56,8 13,9 14,9 6,4 4,8 3,2 2003 100 58,3 14,9 12,9 6,0 4,8 3.1 2002 100 56,7 16,5 13,7 4,71 4,6 3,8 2001 100 57,66 15,96 12,80 5,19 4,25 4,14 2000 100 56,19 17,17 13,08 5,12 4,03 4,41

Source : www.uia.org Table 5.1.4. Top 10 countries regarding the revenues from business tourism in 2005 M. U. Country 1. USA 2. Japan 3. Germany 4. Great Britain 5. France 6. Italy 7. Spain 8. Canada 9. Holland 10. The Russian Federation Source: www.wttc.org mil U.S. $ 170.728,0 71.756,1 53.365,9 43.480,1 39.828,3 38.571,7 17.488,2 16.755,3 12.246,3 9.875,4

Table 5.1.5. The evolution of business tourism revenues in 1990 -2005 - mil U.S. $ Rank 1990 1. 2. 3. 4. 5. 6. USA Japan Germany Great Britain Italy France 97.635 15.360 14.664 13.401 9.631 6.931 123.474 27.095 26.559 15.595 10.471 10.369 168.950 24.815 21.088 20.321 11.146 8.794 170.728,0 71.756,1 53.365,9 43.480,1 38.571,7 39.828,3 288.190,0 94.619,1 57.071,9 54.293,4 48.316,6 48.030,6 Country 1990 1995 2000 2005 2015

Source : www.wttc.org

Table 5.1.6. Top 10 countries regarding the revenues from business tourism in 2015. M.U. Country 1. USA 2. Japan 3. Germany 4. Great Britain 5. Italy 6. France 7. Spa in 8. China 9. Canada 10. Correa Source: www.wttc.org mil U.S. $ 288.190,0 94.619,1 57.071,9 54.293,4 48.316,6 48.030,6 28.192,3 26.899,9 22.772,1 16.056,9

5.2. International bodies and organisations in business tourism International professional organisations involved in business tourism are: The International Association of Congress Palaces The European Federations of Conference Towns The International Association of Convention Visitor Bureaus The International Congresses and Convention Association Meetings Professionals International Professional Conference Management Association Society for Incentive Travel Executives International Fairs Union International Associations Union

The International Association of Congress Palaces, founded in 1958, is a professional notfor-profit association of international congress, convention and exhibition centres devoted to the promotion and recognition of excellence in facility management. Having the headquarters in Brussels and a global network of the worlds leading centres, its mission is to help members enhance management expertise in developing new facilities. It is also involved in developing and operating training and education programs, creating management and operating standards , promoting the AIPC "quality label" and recognizing facility excellence through the annual award for "The World's Best Congress Centre" (won in 2004 by Cairns Convention Centre in Australia). In November 1964, a few far-seeing European people got together in Brussels to form the EFCT, the "European Federation of Conference Towns", the first European federation of meetings destinations, including 93 destinations in 30 countries.. Every European town can become a member if certain conditions are satisfied: have conference facilities which can accommodate at least 300 participants, with proper equipment and providing the usual services, have a team of experts in conference organisation, furnish proof that it has hosted in a satisfactory manner at least five international conferences during the previous three years, have the freedom of travelling to and from the member's country. IACVB (The International Association of Convention Visitor Bureaus) was founded in 1914 (Detroit, USA) to promote sound professional practices in the the tourism activity and is now the largest not-for-profit convention bureaus association having more than 1300 members and 600 destinations in more than 30 countries. ICCA (International Congress & Convention Association) was founded in 1963 by a group of travel agents, and has the head quarter in Amsterdam. ICCA now is one of the most prominent organisations in the world of international meetings. With over 700 members in more than 80 countries worldwide, ICCA has offices in the Netherlands, Malaysia, U.S.A. and Uruguay Its mission is to maintain and generate significant competitive advantage for the members. According to the statistics presented by ICCA, the international association meetings market was in 2004 presenting in the following way:

Table 5.2.1. Top 10 cities organising meetings of international associations in 2004 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. City Barcelona Vienna Singapore Berlin Hong Kong Copenhaga Paris Lisbon Stockholm Budapest Events number 105 101 99 90 86 76 75 67 64 64

Table 5.2.2. Top 10 countries organising events in 2004 Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Country USA Germany Spain France Great Britain Holland Italy Australia Japan Austria Events number 288 272 267 204 196 181 170 145 132 129

5.3. Business Tourism in different countries

5.3.1. USA USA is ranked on the first place in tourism revenues statistics in general, and business tourism revenues statistics in particular ($170 billion estimated by WTTC for year 2005). In year 2000, US influence regarding the organization of international conferences grew up to 13,81%, at a big difference from the second classified, France (6.07%). Since 2001, after September 11th events, the influence is declining to 11,8% in 2004 (France is dropping to 6,03%). Cities Washington 6% of the total amount of events organized in USA and approx. 1% of the total amount of congresses organized in the world; New York 5% of the American manifestations and 0,8% of the total manifestations in the world and Chicago, with 3,5% of the organized events in USA. The request for the tourism services is growing slowly, after the past events. In spite of this, it can be observed a decline of international business travelling and of long standing (5 or over accommodation nights). These estimates can be looked for in the request for flight tickets, accommodation and rent-a-car. Among those who estimate that they will travel less for business in 2005, the most frequent reason given was reduction of needs for business travelling, 35% of these people justifying by using the modern technology as a substitute for face-to-face communication. Another trend that had been observed during the study made by the National Business Travel Monitor is the preference of business people for accommodation units lower than 300 rooms. Contrary to the registered trends durin g the last years in the tourism activity, it has been observed a raise of the percent of those who prefer using the travel agent services (32% toward 25% in 2004), because of the growing conjecture towards the applied tariffs in different distribution channels, because of the business tourists preference to spent the necessary time to find a location in a different manner, living this thing on the travel agents. In 2004, 68% of the business travellers used the Internet or the on-line services to plan a part of their trip and 54% booked on-line. The growth of on-line booking reflects on the rise of business revenues of travel agents that offer this kind of facilities. Jupiter Research (USA) estimates that the business revenue of $12 billion in 2004 will reach $32 billion in 2009.

5.3.2. Japan Japan is the second country ranked, after USA, in the top of the largest revenues in business travel.

Table 5.1.4. Top 10 countries in business travel revenues in 2005 M. U. Country 1. USA 2. Japan 3. Germany 4. Great Britain 5. France 6. Italy 7. Spain 8. Canada 9. Holland 10. Russian Federation Source: www.wttc.org $ million 170.728,0 71.756,1 53.365,9 43.480,1 39.828,3 38.571,7 17.488,2 16.755,3 12.246,3 9.875,4

Table 5.1.5. The evolution of business tourism revenues during 1990 - 2005 - $million Rank 1990 1. 2. 3. 4. 5. 6. USA Japan Germany Great Britain Italy France 97.635 15.360 14.664 13.401 9.631 6.931 123.474 27.095 26.559 15.595 10.471 10.369 168.950 24.815 21.088 20.321 11.146 8.794 170.728,0 71. 756,1 53.365,9 43.480,1 38.571,7 39.828,3 288.190,0 94.619,1 57.071,9 54.293,4 48.316,6 48.030,6 Country 1990 1995 2000 2005 2015

Source: www.wttc.org

5.3.3. Germany Germany is the leader of Europe regarding the business travel revenues. Our goal was to make out of Germany the first destination in Europe for congresses and meetings by 2007. The fact that we succeeded that earlie r proves that we had a good strategy, said Lutz P. Vogt, Director of the German Convention Bureau.

5.3.4. Spain In 2004, according to the Espagnol Convention Bureau, in Spain took place 11.859 conferences, with 2.457.195 people present. The maximum number of reunion in Spain took place in 2002 (12.563) and, during the same year, it was the largest number of participants (2.534.225). In 2004, in Spain, 55% of the total conferences were organized by public institutions and 45% of private agencies.

Graphic 5.3.4.1. Number of conferences

14000 12563 12000 10073 10183 10000 8655 8000 6497 6000 4289 4000 3695 3102 12336 11856

2000

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: www.scb.es

Graphic 5.3.4.2. Number of delegates

3.000.000
2.534.225 2.514.211

2.500.000
2.002.741

2.457.195

2.000.000
1.568.112

1.789.634

1.874.841

1.500.000
982.954 1.012.905

1.000.000

770.942

500.000

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source: www.scb.es

Table 5.3.4.1. The weight of activity sectors in the generation of conferences in 2004. Rank 1. 2. 3. 4. 5. 6. 7. 8. Sector Economical commercial sector Medical sanitary Public sector Cultural sector Others Higher education sector Scientific sector Technological sector 23,18 22,39 13,70 12,77 8,98 8,95 6,73 5,66 %

Source: www.scb.es

Graphic 5.3.4.10. Complementary activities solicited by delegates at the conferences in 2004.

5,00 4,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00
Go lf Cu ltu ral Cu e mp ara tur i (S ho pp ing ) Al tel e Ga str on om ice Tu ris tice Te nis

4,47

4,38 3,95 3,10 2,16 1,85 1,83 1,72

Chapter VI - Romania a business tourism destination. 6.1. Before 1990, the business tourism was hardly developed. Trips to foreign countries were either the official ones, either missions of the state firms; a departure to a foreign country for a negotiation or closing a contract was necessary to be approved by minimum 10 people. The only events were organized by ROMEXPO (built in 1970). After 1990, chain hotels appeared (Sofitel, Crowne Plaza, Marriott, Hilton, Best Western), broadening the existent accommodation offer for the business (Hotel Bucharest, Hotel Intercontinental) , with conference rooms, endowments etc. New conference centres appeared The International Centre for Conferences The Parliament Palace, WTC Bucharest, as many others in the mountains area and on the seaside.

Table 6.1.1. Arrivals and departures of business and for professional reasons tourists in Romania during 1991 - 1998
Foreigners arrivals Total Year - thousands Foreigners arrivals Business - thousands % business arrivals DeparturesRomanians Total - thousands Departures - Romanians Business - thousands % departures for business

1991 1992

5359 6401

175 196

3,27 3,06

9078 10905

Ac tivi tat i

Ac va tice

111 93

1,22 0,85

1993 1994 1995 1996 1997 1998 Total

y

5786 5898 5445 5205 5149 4831 44074 5509,25 -75,429 0,98 -2

169 154 150 194 183 182 1403 175,375 1 1,01 1

2,92 2,61 2,75 3,73 3,55 3,77 3,18 0,07 1,02 2

10757 10105 5737 5748 6243 6893 57295 7161,875 -312,143 0,96 -4

193 228 197 144 187 204 1357 169,625 13,286 1,08 8

1,79 2,26 3,43 2,51 3,00 2,96 2,37 0,249 1,12 12

R (% )

Source: The Romanian Annual Statistic al Book, INS, Bucharest; editions 1994 - 1999

After 2000, it can be noticed a boom regarding the trips to foreign countries of Romanian business people, but also regarding the arrivals of foreign business people in Romania. The emission of flight tickets, among the 230 IATA agencies, had also a boom (180 million Euro in 2005), as also the hotels bookings (especially on-line during the past few years).

6.2. Business tourism organization in Romania. The National Association of Professional Organizers of Conferences and Expositions was constituted in December 1997 Romanian Convention Bureau (RCB). Starting 1999, RCB is a member of the most important world organization in the domain: The International Congresses and Conferences Association (ICCA). RCB propose itself to win, to improve and to globalize the international acceptance of Romania as an events location, but also to impose a convincing image of the local offer of high quality specific services. Being the only multiprofessional association in Romania exclusively dedicated to conference industry, RCB reunites as members many public institutions categories and private companies in events organization: congresses, conferences, seminars, specialized expositions, national and international fairs, festivals, destination management, business and incentive tourism. The beneficiaries and partners of RCB are different public and governmental institutions, associations and companies from Romania and abroad, which either demand RCB

consultancy in identification of services providers through different offer selections, either by directly approaching the members RCB for professional services contracting. The companies and institutions reunited in RCB annually organize approx. 800 events, of which over 100 are fairs or expositions and over 600 are congresses, conferences, seminars, product launches, and training sessions. These events gather approx. 1.200.000 1.500.000 participants annually. The successive presence of the Association members at the most important specialty fairs of the world: EIBTN (The Global Meetings / Incentive Exhibition) and IMEX (The Worldwide Exhibition for Incentive Travel, Meetings and Events), got the attention of the foreign organizers of events for Romania.

6.3. Business tourism and the hotel offer in Romania In our country, the hotel offer for business tourism is concentrated in Bucharest, Prahova Valley and Black Sea Coast. 1. Intercontinental Hotel Table 6.3.1. Conference halls at Intercontinental Hotel
Dimensions Hall Ronda Intim Hora (m) 43x18 9x6 9x8 Height (m) 4,7 4,0 2,5 Amphitheatre 350 40 100 Capacity Class Hall 250 20 60 Reception 600 50 130 Banquet 250 24 80

2. Bucharest Marriott Hotel Table 6.3.2. Conference halls and expositions at Marriott Hotel
Hall Category Exposition Surface (square meters) Grand Ballroom Conferences Exp ositions Salon A Salon B/C Salon D Salon AB Salon ABC Salon BCD Salon BC Conferences Conferences Conferences Conferences Conferences Conferences Conferences 633 800 Maximum capacity for conferences Amphitheatre Round table 480:40x12 500:50x10 200 70 70 320 370 260 170 40 30 70 U shape

Salon CD Constanta Ballroom Iasi

Conferences Conferences Expositions Conferences Expositions

349

420

170 288:24x12 290:29x10

70 -

45

50

14

Timisoara

Conferences Expositions

92

110

60

40

Sibiu Brasov Cluj Craiova Ploiesti

Conferences Conferences Conferences Conferences Conferences

40 40 24 40 -

28 26 18 24 14

3. Athenee Palace Hilton Hotel 6.3.3. Conference Halls at Athenee Palace Hilton Hotel
Hall

Dimensions (square m)

Height (m)
Amphitheatre Class H all Conference

Capacity
U shape Circular Banquet Reception

Brncusi/ Coanda/ Palady/ Eliade/ Silvestru Le Diplomat Marcu/ Enescu/ Cioran Regina Maria A+B 14x13 4 200 140 140 50 60 140 180 8x9 2 60 36 36 27 40 40 60 18x17 5 400 180 180 80 100 250 350 8x4 2 24 16 16 16 20

4. Hotel Crowne Plaza Table 6.3.4. Conference Halls at Crowne Plaza Hotel
Hall Dimensions (square meters) Height (m) Reception Capacitate Amphitheatre Class Hall Banquet U shape

Ballroom Ballroom 1 Ballroom 2 Transilvania Muntenia Transilvania Muntenia Banat Moldova +

13,8x11,6 6,9x11,6 6,9x11,6 7,5x12,5 7,5x5,5 7,5x18

4,0 4,0 4,0 2,2 2,2 2,2

200 80 80 70 30 70

200 100 100 75 20 75

120 50 50 55 55

80 40 40 50 80

50 30 30 40 40 30

4,6x5,5 6,0x7,5

2,35 2,35

25 30

20 25

25 25

5. Best Western Parc Hotel Best Western Parc Hotel offers in the business tourism field the facilities of 4 conference halls. Terra Hall, polyvalence hall of big dimensions can host at his maximum capacity up to 350 guests. Thanks to a Swedish illumination solution, it can be obtained a impressive light effect, which makes Terra Grand Ballroom a perfect location for product launches, impressive conferences, fashion presentations or private parties. With separate access from the rest of the hotel, the hall dispose of the whole necessary logistics for success: video projectors, mobile and fix screens, a up-to-date sound system, simultaneous translation equipments, but also a computer network with Internet access and video conference system. For other types of events as training sessions or project presentations, it is recommended to use the Meridiane and Atlas halls. Globus hall is for private meetings. The halls have the endowment of audio-visual equipment and computers with Internet access.

Table 6.3.5. Conference Halls at Best Western Parc Hotel

Hall Surface (square m) Atlas Meridiane Globus Terra (Polivalenta) Tronson Terra 98 59 52 15 295 2,5x9,4x6,3 2,5x9,2x5,8 2,5x3,6x4,2 5,1x20,5x14, 4 5,1x6,8x4,4 30 40 50 24 80 60 80 30 30 Dimensions (Lxlxh) (m)
Quadrangle U shape Class Hall

Capacity
Counsel Amphithea tre Round tables Standing

25 25 -

16 16 150

20 20 8 -

50 50 10 350

200

300

6. Sofitel Hotel Sofitel Hotel of World Trade Centre has a business centre, with 6 conference halls of which 2 with a modular structure, plus the amphitheatre with 300 places, offering facilities for simultaneous translation, video projections, plus a up-to-date audio -video system. 7. Continental Hotel Continental chain hotels owns hotels in the big cities of the country, classified at 3*, except the hotel in Bucharest, of 4*. All the hotels have conference halls with facilities for business tourism, having amenities for this kind of manifestations in other cities of Romania, where they have no competition or where it is poorly developed.

Coastal presence Conference halls at coastal hotels Table 6.3.10. Conference halls at the Black Sea
Hotel (location) Hall Belvedere Surface (mp) 181 Number of places 130 quadrangle 160 cinema President 4* (Mangalia) Business Club 308 40 quadrangle 100 cinema Ovidius Mangalia 3* (Mangalia) Savoy 4* (Mamaia) Riviera 3* (Mamaia) Polyvalent Hall Hall Hall 1 Hall 2 Rex 4* (Mamaia) Central 3* (Mamaia) Perla 2* (Mamaia) Majestic 3* (Mamaia) Intim 3* (Constanta) Forum 2* (Costinesti) Hall Hall Hall Hall Hall Polyvalent Hall Meetings Hall Bar Hall 17 Club Bazin (Neptun) Hall 19 Cinema Hall Biliard Hall Day Bar Complex Astoria 3* Cocktail Hall 50 145 190 80 40 180 56 80 25 50 62 203 258 307 15 - 20 150 100 60 80 150 60 200 50 60 400 50 30 30 40 160 200 250 100

(Eforie Nord)

Cinema Hall Terasse Club

60 30

6.4. Conference and exhibition centre : 1. ROMEXPO; 2. International Conference Centre The Palace of the Parliament Table 6.4.2 Conference and exhibition halls at the International Conference Centre The Palace of the Parliament
Exhibition space (mp) Hall Purpose Banquet Classroom Theatre Round Table Unirii Sala Tapiseriilor IC Bratianu A I Cuza Sala Drepturilor Omului N. Iorga N. Balcescu M. Kogalniceanu Conferences Conferences Conferences 250 150 200 Exhibitions Exhibitions Conferences Conferences Conferences 2.450 1.200 3.000 1.000 700 2.500 1.000 550 1.200 150 Consel Maximum capacity

3. World Trade Center Tabel 6.4.3. Conference and exhibition halls at World Trade Center
Hall Purpose Exhibition space (mp) Classroom Capacitate maxima Theatre Round table World Trade Plaza New York Taipei Vienna Vienna&Taipei Seul Mexico City Conferences Conferences Conferences Conferences Conferences Conferences 370 30 45 60 30 30 300 30 50 60 30 30 190 40 60 100 40 40 32 52 64 32 32 30 45 60 30 30 Exhibition 780 500 Counsel U shape -

Cairo Moscova 1&2 Paris Press Room

Conferences Conferences Conferences Conferences

64 -

15 30 30 -

20 50 50 15

20 40 40 -

20 32 32 -

15 30 30 -

3.5. Tourism Agencies offer 1. Marshal Turism. 2. Paralela 45 Turism 3. Olimpic International Turism.

Chapter VII The management of a business tourism agency in Romania Study of the management of the agency Business TOURISM in Romania. 7.1.Main activities in business tourism in Romania from the tourism agency perspective 7.1.1.The management of business tourism for official trips (governmental organisations and national bodies) The Secretaries Era during 1990-1996 The majority of trips abroad (most companies were still state owned) were ordered by the secretaries. We could name this period in the evolution of business tourism in Romania the secretaries era without any mistake. Particular for this period was the selection of the travel agency by mercantile criteria or by personal relations with the services supplier, without looking at the quality. The Duties Notebook during 1996-2005 After 1996, notebooks of duties to be done were created, the forerunner being the Deputies Chamber, and the firts travel agent contracted was Simpaturism. Now these duties notebooks are extremely complicated (especially looking at the flight tickets offers) even though, their demand and offering should be very simple. These complicated notebooks hide, under the pretext of Normative Acts (the famous Official PaperOrdonanta 60- of public acquisitions), clear situations of favouring certain agencies, every ministry having its own duties notebook. Now ANAT (The National Association of Travel Agencies) has started making a unique Duties Notebook, that will be the same for every action, and as fair as possible, to allow access to every interested agency.

7.1.2. The management of CORPORATE tourism In the private sector the selection of the travel agency is much more honest: a. business trips ticketing and hotel booking b. incentive trips c. courses, seminars, trainings d. team-buildings e. product launches, reunions f. exhibitions

7.1.3. The management of business tourism for not for profit associations and other organisations 7.2. Organising a business tourism agency in Romania.

Chapter VIII New concepts in the Tourism Agency management. Business tourism, a modern solution fopr the development of Romanian tourism 8.1. Paralela 45 tourism agency presentation. Short history - ticketing; - on-line bookings; - incentives;

Weak points found during the analysis: 1. There is no company presentation booklet in Romanian (English) for the Romanian market (or a CD) 2. There is no company presentation booklet in English. This should be different from the one made for the Romanian market and should answer the question Why Romania?. 3. There is no dedicated business tourism website (not only at Paralela 45 Tourism Agency but at every agency in Romania). 4. The marketing-sales activity is poor, both in the way the clients are approached and also in the small number of people handling this activity 5. Paralela 45 has not participated at any International Tourism Fair, specialised in business tourism, which makes the Romanian supply generally unknown.

The National Tourism Authority has started to participate at Corporate Tourism Fairs for 2 years, but the number of specialised agencies participating at the fair is extremely small. This represents an excellent advantage for Paralela 45, thus being a practically unexplored niche.

The strengths of Romania as a destination for business tourism are, according to Rob Davidsons presentation at the Academy of Economic Studies in Bucharest, on 17.10.2005: a. Romania is new on the market and is attractive. The nearing EU integration will bring the guaranty corporations need to organise events in Romania. b. The majority of Romanian speaks English c. The infrastructure for organising events in Romania is very good, especially in Bucharest (congress, conferences halls and hotels) d. Prices are much better especially for halls, translators, equipment (30% smaller than in the EU).

8.2. New concepts in the tourism agency management 8.2.1. Demand for business tourism and travel There are generally 3 types of buyers for business travel: a. Corporate private companies b. Associations, not for profit organisations. c. Public sector

8.2.2. Business Travel 8.2.3. Events 8.2.4. Incentive travel

Curriculum Vitae
NAME / SURNAME DATE AND PLACE OF BIRTH BURCEA ALIN NICOLAE 13.11.2005, Pitesti, Romania

PROFESSIONAL EXPERIENCE 1987 1990 Economist at the Public Food Service and Tourism Bureau CENTROCOOP - Sibiu 1990 2000 Shareholder and administrator for S.C.PARALELA 45 TURISM 2001 2002 Secretary of STATE in The Ministry of Tourism 2002 2005 Shareholder and administrator for S.C.PARALELA 45 TURISM, CHICCO Romania, Paralela 45 Investment EDUCATION 1998 1992 1991 International Air Trafic Association Course School of Tourism Professions, Anavyssos, Greece Tourism Managmement and Development, Haifa, Israel 1983 1987 Academy of Economic Studies, Faculty of Commerce, Specialisation: Services economy in public food and tourism 1978 1982 Sf. Sava National College

FOREIGN LANGUAGES English write, read, speak very well Franch write , read, speak very well German write, read, speak well Spanish write, read - well, speak very well Italian write , read, speak well PUBLIC POSITIONS 2005 2004 President at ANAT - Bucharest Euroregion 2003 2005 Member in the Administration Counsel at ANAT 2001 2002 Secretary of State The Ministry of Tourism 1998 2000 Member of The Romanian Business People Association 1993 1998 Vicepresident at ANAT 1990 1993 President and F ounder of ANAT The National Associations of Travel Agencies DISTINCTIONS November 2002 Awarded with The Order of the Faithful Service- the title of Chevalier - by the President of Romania, Ion Iliescu

Participations at significant events

A new warranty service for travel agencies at the beginning of the millennium Symposium Tourism in the context of sustainable development organised by The Tourism and Services Chair at The Acedemy of Economic Studies in Bucharest on the accasion of the National Tourism Fair, 27 October 2000 (speakers: Univ. Prof. PhD.Rodica Minciu, Univ. Lect. PhD. Gabriela Tigu, Alin Nicolae BURCEA)

Noteworthy in the participation as an observer on behalf of Romania at WORLD HERITAGE COMMITTEE, Twenty-sixth session, Budapest, 24 - 29 June

Published articles (author/co-author)

Over 40,000 foreign tourists will travel on the Danube , Nine Clock , 2001 Dracula Forever Newsweek, 11 March 2002 Commotion among travel agencies: are the ticketing commissions disappearing? Market Media, 28.11.2003 Charter Flight: Malmo-Tg. Mures Curierul National - 176, 2003 The 2004 Holiday Package To Go Evenimentul Zilei, 02.04.2004 Holidays in rates Ev. Z ilei, 13.05.2004 How are we selling our country ANAT Media nr. 5 The opinion of a tourism specialist Libertatea, 04.10.2005 The terrorism fear saves our seacoast Cotidianul, 10.2005