By choosing a second- or third-tier destination, planners can give attendees a fresh, exciting experience, often in a locale they’ve never visited. Courtesy of Nicola Williams

Major metropolitan areas such as New York, Las Vegas, Los Angeles and Chicago are often among the first choices for planners when deciding where to hold a multiday conference or special event. These “first-tier” cities are known for their world-class venues, extensive amenities and global accessibility. But in recent years, event professionals have increasingly turned to second- and third-tier destinations to host their conferences, trade shows, retreats and other incentive travel. These cities, often overshadowed by their more prominent peers, offer a unique blend of value, authenticity and innovation that savvy planners are learning to appreciate.

From lower costs and less congestion to stronger community engagement and memorable local flair, second- and third-tier cities can provide a compelling alternative for event organizers seeking to do something a little different.

What Are Second- and Third-Tier Cities?

Second- and third-tier cities are referred to that way due to their size, infrastructure and prominence in the event planning industry. While the parameters vary slightly, they are generally defined in this way:

• First-tier cities are major global hubs with large international airports, vast hotel inventories and facilities capable of hosting large-scale events with more than 10,000 attendees
• Second-tier cities are medium-sized urban areas with regional airports, smaller convention centers and sufficient infrastructure to support midsized events
• Third-tier cities are smaller or more rural destinations with limited hotel space and fewer direct flights, typically able to accommodate smaller meetings or niche events

Austin, TX, Charlotte, NC, Portland, OR, and Nashville, TN, are all examples of second-tier U.S. cities, while third-tier destinations might include Boise, ID, Asheville, NC, Spokane, WA, or Duluth, MN. While once upon a time, these places might have been viewed as inferior to first-tier cities, now they are steadily gaining traction, thanks to shifting values in business travel and experiential marketing.

The Shifting Priorities of Event Attendees and Planners

Attendee expectations have evolved significantly over the past decade, so that large, flashy locations are no longer enough to attract them. Today’s audiences are looking for meaning, value and connection, both with each other and with the local environment. Event planners are being asked to do more with less, thanks to tighter budgets, rising costs and logistical complexities, leading to a reevaluation of what truly matters when it comes to destination selection. Sustainability, local engagement, ease of access, affordability and uniqueness are now all factors in the decision-making process.

This is where second- and third-tier cities come in.

Nicola Williams is the chair of the Association of British Professional Conference Organisers (ABPCO), as well as the founder and managing director at Seren Events PCO. Within the last six months, Williams has orchestrated events in Basel, Switzerland; Essen, Germany; Chiang Rai, Thailand; Liverpool, England, and other second- and third-tier cities around the world. She chose these destinations because she was looking to offer attendees a new experience in alternative locales, where PCO conferences had not yet been held.

“Hosting an event in second- and third-tier cities offers numerous advantages, such as more affordable venues and hotel options,” Williams says. “These cities often have fewer major events competing, which means your event can stand out more and take advantage of better availability options.”

She suggests that hosting an event in an emerging or lesser-known city can also position an organization as forward-thinking, as well as offer a unique experience for attendees.

“As our team at Seren Events operates international events with delegates traveling in from all world locations, we find that many second- and third-tier cities have smaller, more manageable airports, which can lead to less crowded travel experiences,” Williams says. “This can make transportation to and from the event more cost-effective, convenient and efficient for delegates.”

One of the most compelling advantages is, of course, cost. Venue rentals, hotel room blocks, catering, labor and even transportation are significantly more affordable in smaller markets. For example, hosting a midsize conference in Cleveland or Omaha might cost 30% to 50% less than it would in New York or San Francisco. The savings can be passed on to attendees or reinvested into higher-value programming, production quality or experiential incentives, like reduced venue rental fees, complimentary transportation, destination marketing support or local sponsorships.

“In our experience, when comparing first- and second-tier cities, we find smaller cities typically have more affordable venues, hotel rates are usually more budget-friendly and flights to smaller cities can often be more affordable, especially if they have direct connections to major hubs,” Williams says. “Additionally, the cost of ground transportation like taxis and public transport may be lower, and getting around the city can be more cost-efficient and convenient.”

Williams says that as part of the event strategy service at Seren, they also research the financial support offered by the destination city’s convention and visitors bureau to incentivize organizations to host events there. Such assistance could include reduced venue rental fees, discounted services or grants, which can further reduce the budget. Overall, a second- or third-tier city can give planners more negotiating power.

The skyline of Austin, TX. Courtesy Photo

The Unique Advantages of Going Small

In first-tier cities, planners often face intense competition for venue space, hotel blocks and even service providers. Prime dates can be booked years in advance, forcing organizations to compromise on timing, location or both. Smaller cities, however, generally have more availability, offering planners greater flexibility. This also allows for more collaborative partnerships with convention and visitor bureaus and destination management companies, which tend to be more responsive and eager to support events in second- and third-tier markets.

Many smaller cities take great pride in hosting events and go the extra mile to ensure success. From local government and businesses to volunteers and hospitality workers, there’s often a genuine community spirit at play, which can lead to deeper partnerships with local businesses, easier access to offsite venues and attractions, opportunities for corporate social responsibility activations and tailored marketing support.

Planners can incorporate local elements, depending on which destination they choose, to coordinate with the theme of the event they’re planning. If it’s a wellness summit, then a destination city known for its scenic natural landscapes and outdoor activities would be a perfect fit. If it’s a tech conference, a second-tier city such as Austin — which has a bustling software and AI scene — might be a better and more unique option than a first-tier city like San Francisco. Incorporating local elements, such as farm-to-table dining or regional art and music, into your events can elevate the attendee experience and forge stronger emotional connections.

Chris Gahl, executive vice president and chief marketing officer for Visit Indy, the Indianapolis CVB, says that personalization is essential for destinations of any size, but midsize cities often have the unique advantage of delivering it in a more thoughtful and hands-on way.

“In Indy, we pride ourselves on going the extra mile,” Gahl says. “Through creative initiatives like local organizing committees [comprising] city and industry leaders, we ensure visiting groups are supported from every angle. We also develop custom citywide signage packages and offer immersive opportunities for attendees to engage with Indy’s culture, cuisine and attractions. Our goal is for every visitor to leave feeling like they’ve truly experienced the heart of the city and taken a little piece of Indy home with them.”

Gahl cites the 2021 National Confectioners Association Sweets and Snacks Expo, which came to Indianapolis in what was meant to be a one-time move due to COVID restrictions in Chicago but quickly turned into something more permanent.

“After more than 20 years in Chicago, the event now rotates between Indianapolis and Las Vegas,” he says. “Our central location, walkable downtown and ability to handle large international events have made a lasting impression on show organizers, vendors and attendees. The convention brings in over 800 candy and snack vendors from 90 countries and uses around 4,300 hotel rooms at peak. Last year, Indy set a new record by hosting 1,000 vendors in the convention center, a 10% increase from the previous year.”

Easier to Get Around

Navigating massive urban centers like Los Angeles or Chicago can be overwhelming, especially for out-of-town attendees. Traffic congestion, complex transit systems and sprawling layout all increase stress and reduce the time attendees spend engaging at the event.

But second- and third-tier destinations are often more compact, walkable and easier to navigate, so attendees spend less time commuting and more time networking, for a smoother overall experience. This also means simpler logistics, which is always a win for event planners.

Supporting Local Economies

Hosting a conference in a second- or third-tier city can have a significant economic impact on the local economy, with an influx of spending that can boost revenue for local businesses.

As vice president of sales and event experience with Visit Milwaukee, the city’s convention and tourism bureau, Leslie Johnson is responsible for direction, training and monitoring associated with convention sales efforts and related activities to promote the Greater Milwaukee area as the destination of choice for events. She says that hosting events in destinations such as Milwaukee has a significant ripple effect on the local economy, adding: “Events bring in attendees who spend on hotels, dining, transportation and attractions, directly supporting small businesses and creating jobs.”

She points out that the 2024 Visit Milwaukee economic impact report shows that through leisure and convention business, direct visitor spending in Milwaukee County in 2023 grew 6.4% year over year, surpassing the domestic inflation rate by 2% and contributing $2.342 billion to the local economy.

But, you may be asking, can second- and third-tier cities support large-scale events?

The answer is absolutely, according to Johnson.

“Milwaukee has made major investments to support large-scale events,” she says. “The newly expanded Baird Center now offers over 1.3 million sf of event space, allowing the flexibility to host conventions, trade shows and national conferences. Milwaukee’s infrastructure includes a growing hotel inventory, walkable streets near event centers and an airport just 15 minutes from downtown, making logistics smooth for attendees. Milwaukee combines modern capabilities with a more manageable scale, offering planners the best of both worlds — big-city infrastructure without big-city hassles.”

She notes that the 2024 Republican National Convention was hosted in the heart of downtown Milwaukee at Fiserv Forum and in the Wisconsin Center District, Milwaukee’s convention center campus. More than 50,000 delegates, media, law enforcement, staff and visitors attended the convention.

If you’re worried about local service providers and vendors in smaller cities being able to meet the needs of large, more modern conventions, the answer, once again, is: Yes, they can.

“Service providers and vendors in smaller cities like Milwaukee are absolutely equipped to meet, and often exceed, modern event standards,” Johnson says. “From high-tech AV companies to creative caterers and logistics teams, Milwaukee’s event ecosystem is experienced, responsive and deeply collaborative.”

Challenges and Considerations

While the benefits of second- and third-tier destinations are numerous, there are potential limitations. Accessibility is one. Smaller airports may offer fewer direct flights, so planners will have to account for travel time and potential connections. Venue size is another. While many cities, like Milwaukee, have venues that can handle large gatherings, other destinations might not, so understanding attendee capacity is crucial. Smaller cities may also have fewer event suppliers, so planners might have to outsource AV companies and production firms from larger nearby cities. Then, there’s perception, as attendees and stakeholders might be skeptical about destinations if they aren’t familiar with them.

The good news is that many of these obstacles can be overcome with proactive planning, local partnerships and clear communication to attendees. First, define your event goals and align the destination with your mission. Then, assess attendee demographics. Note where they are traveling from, what amenities and experiences they value and then consider generational preferences, mobility needs and travel budgets. Effective pre-event marketing is the best way to build excitement about an upcoming event in a smaller, lesser-known city. Do your research and emphasize the destination’s unique identity by showcasing its food, history, landscapes and stories. Lastly, address attendee concerns by highlighting the benefits of the location, such as cost savings, experiences, ease and value.

“When evaluating venues in smaller markets, planners should prioritize flexibility, accessibility and local partnerships,” Johnson says. “[They] should look for places that offer solid infrastructure and a great overall experience.”

It can also help to rely on the city’s convention and visitors bureau, she adds.

“Visit Milwaukee, for example, provides local recommendations that can be a great starting point when assessing which venue is the right fit,” Johnson says. “We can also help planners get the most out of their stay with booking incentives specifically for meetings and convention visitors. Ultimately, smaller markets can offer more personalized attention and greater value, helping planners deliver memorable events without sacrificing quality.”

The Future of Event Planning Is Smaller

The rise of second- and third-tier cities reflects a broader trend toward remote work, regional development and shifting travel norms that make it easier and more appealing for events to flourish beyond traditional urban epicenters.

Says Gahl: “We continue to hear from planners that we offer first-tier amenities with second-tier affordability. Beyond the infrastructure, we treat every event with the same level of importance. We recognize the economic impact each group brings and have a dedicated destination experience team that works closely with planners to create personalized ways for attendees to connect with the community and explore the city beyond the convention center walls.”   I&FMM