Optimizing Campus Resources for Increased Revenue Generation
Explore how to optimize campus facilities for increased revenue through improved rental processes, risk mitigation strategies, and brand promotion initiatives. The proposal aims to enhance revenue streams, strengthen the university's mission and brand, and elevate the campus atmosphere. Recommendations include developing a robust Conference Service Department, implementing growth strategies, and enhancing sales and marketing approaches.
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Presentation Transcript
CONFERENCE SERVICES WORKING GROUP: Executive Summary - April 2021 Optimizing Campus Cultural, Athletic &Facilities Resources 1
Proposal Description TYPE: Key enabler to increase revenue generation from rental and use of our facilities by external clients. PROBLEM STATEMENT: Review of our current facilities rentals identified missed revenue opportunities, potential risk factors, diluted campus messaging and inconsistency in providing on-site services. OPPORTUNITY: Increase revenue; improve risk aversion; promote the mission and brand of the university; be home turf for faculty and staff organizations; offer comparable services to our peers while creating a vibrant campus atmosphere alive with opportunity. 2
Current State Large inventory of unique, saleable assets with specific relevancy to the region along with excellent opportunities for local partnerships. Current CSE department lacks sales, marketing, and coordination capacity to generate additional revenue. Many spaces need capital improvements, especially audiovisual equipment/infrastructure. Multiple points of entry for external clients with inconsistent application of permitting and regulations. Fee structure and rate review processes managed at the unit level and applied without cohesive sales tactics. Minimal use of SBU facilities by faculty and staff professional organizations combined with lack of presence on regional conference circuit. FY18/19 under $500k in conference generated rentals and $1.2M in total volume; externally generated Wang center rental revenue of $237k, insufficient to support building expenses. 3
Opportunity Increase revenue to the University with existing space inventory and continue to develop inventory as sales grow. Adopt sound risk aversion strategies with uniform campus contracts and policy compliance managed through a single point of control. Reinforce the mission and brand of Stony Brook University locally, regionally and nationally as well as within various professional organizations. Support campus programming while providing home turf for faculty and staff external initiatives and professional organizations. Offer hospitality services comparable to other AAU and R1 institutions. Provide deeper learning opportunities for student employees and interns. 4
RECOMMENDATION Develop a more robust and unified Conference Service Department Prevalent in C&U sector, mitigates risk while allowing for growth $5M pro forma target will generate $2M in campus revenue Review potential structures for department Implement a transitional growth strategy with hub and spoke elements Leverage current rental space and space management processes and identify additional inventory opportunities through a tiered strategy Build on existing processes and staff as a base to grow into expanded capabilities, investing as business grows Review accounting processes to allow single point of payment and flow through of revenue to campus departments Developing a forward looking sales and marketing strategy with key milestones and ROI metrics 5
Cost/Benefit Information Conference Services & Events Benefits: Recurring rental and services revenue to campus projected at $2M on a pro forma basis. Benefits Risks Significant reputational enhancement and improved risk aversion while providing home turf to faculty and staff professional associations. Costs/Investments: Initial storefront capital investment @100k for web design, AV, marketing. HR investment @700k (6FTE), $350k up front and $350k as business grows. Ease of Implementation: 6-9 month implementation timeline, @5 years to full maturity. Centralizing processes and procedures will impact implementation, moderate difficulty. Continued coordination with External Client Key Enabler group. 6
Further Discussion 1. Significant pre-implementation development opportunities can be accomplished prior to major investment. 2. Work with external clients group to continue to identify opportunities within SUNY regulations. 3. Investment in infrastructure is required to realize significant revenue at Southampton. 4. Review the Wang Center as dedicated conference facility and propose long term solutions. 5. Will need larger inventory of hotel rooms as business grows. 7
