Meetings Intelligence Exchange

I’ve had the pleasure of working with the same customer for close to 20 years. The first time we worked together we arranged golf and a meeting for the CEO, him (CFO at the time) and six of their top customers. As they grew their business they grew the size of their meeting. Today it’s two four night back to back programs, a $1.5 million investment in their top customers.

They attribute a large part of their successes to the investment (in time and money) they’ve made to understand their customers and develop products for them. They meet, golf, dine and spend quality time with them at these events. 

He’s always recognized the value of quality meetings and the return they generate.

He’s now the CEO of a rapidly growing private company and is on the board of his industry’s highly visible trade association. Recently I phoned him expecting to catch him at the associations’ annual board meeting. He answered his mobile phone (one of those answers where the car widow is down and the radio is up) and I asked “how is the meeting?”

In his very animated way he said “it was a total waste of time, the content sucked, and it was a boondoggle for a bunch of guys and their wives.” He was so disappointed he left early.

I didn’t expect to hear this from a very successful, down to earth CEO, who volunteers his time to support his industry’s trade association. I doubt he’ll contribute much of his time and expertise to this association in the future.

At a time when companies have severely reduced or eliminated travel and meetings we (the executives who are helping develop the content and the agenda for the few meetings we’re conducting) must do an exceptional job of delivering quality content to our attendees.

Face it; executives are starved for content. The longer they honor the corporate mandate not to travel, run sales incentive trips, entertain customers and let the fear of government scrutiny get in the way of necessary meetings and events (especially those that have a proven history of success and driving a good ROI) the hungrier they’ll get. 

So serve them up a tasty menu (of great content) and watch how quickly the next meeting gets planned. 

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Earlier this week the Hotel Del Coronado in San Diego conducted a 72 hour, 50% off sale for all bookings arriving before December 31, 2009. They probably booked about $2 million of business. 

Today through April 24th the Broadmoor in Colorado Springs is doing their own 72 hour, 50% off sale.  

The Ritz Carlton Laguna Nigel has offered group rates as low as $160 in October 2010 and one of our insiders just booked a very nice hotel in London for less than $200 per night this summer. 

 If you’re in the market to contract a resort meeting you’re likely to negotiate terms like you haven’t been able to since the last economic downturn and group rates that are similar to what you negotiated in the late 1980’s or early 90’s. Deals aren’t limited to down times or off season (especially since many hotels are considering the next 12-18 months as off season) and they’re available year round in the U.S and Internationally.

Hotels and Resorts are really feeling the pain and it’s translating into favorable terms for buyers of meetings, incentives and travel. Smith Travel Research just released their summary of “Five Markets Feeling The Pain.” 

 1. Phoenix: Occupancy down 17%, Rate down 14%

2. Detroit: Occupancy down 15%, Rate down 9%

3. New York: Occupancy down 12%, Rate down 12%

4. Atlanta:Occupancy down 15%, Rate down 8%

5. Miami:  Occupancy down 11%, Rate down 10% 

Basically this data shows that revenue per available room (RevPar) at hotels and resorts in these markets has declined 20 to 30% and I expect these numbers to continue to decline through the summer. If you’re not ready to book now you’re window to negotiate a great deal is likely to stay open.  

 If you’re ready to contract a meeting now many hotel sales managers are ready to bend over backwards to win your business. 

To your meetings success.

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The meetings industry has never faced a downturn like we’re experiencing now.

Two of our biggest buyers of meetings and incentives, Automotive and Financial companies are in the dumps with little expectations of ramping up their travel and meeting expenditures any time soon. 

Even companies that believe in the benefits of sales incentives, meetings and customer entertainment events (can afford them, believe in them, and realize they won’t be as successful without them) are paralyzed by the fear of being publicly criticized for conducting meetings and incentives.  

Hotels and resorts have seen a large part of their business disappear almost overnight and see little or no improvement until the 3rd or 4th quarter of 2010. They’re hunkering down and going into survival mode. And it will affect how they service your meeting. 

So if you’re lucky enough to still be conducting meetings here’s what you need to know about how many hotels and resorts are reacting to a severe loss of business:

• They’re reducing management and hourly employees. Your sales or conference services manager may not be your sales or conference services manager any more.
• Staffing levels are being reduced and departments are operating with minimal staff. Rather than one banquet server for 15 guests you’ll likely have 1 per 20. 
• Expect reduced hours of operations and closures of business centers, restaurants, health clubs, spas, and golf courses.
• Restaurants are reducing menu offerings and serving smaller portions (at the same or increased prices.)
• Guestrooms, suites, entire buildings and floors, will be closed, and won’t be reopened just to give you your favorite room. 
• Capital improvements such as room renovations and new carpeting will be cancelled or delayed.
• You’ll likely be asked to pay for services you haven’t had to in the past.
• Complimentary amenities that you’ve come to expect (daily newspaper, hand lotions, extra towels, free in room coffee) will be reduced or eliminated.
• Fees for parking, internet access and phone calls are increasing. 
• Your sales, conference and other key managers have seen their compensation fall up to 30%. 
• If you have to cancel your meeting, expect to pay the cancellation fee.

Be aware of the challenges hotel are facing, and use it to your advantage. I’m not suggesting you grind them for every possible concession or discount, I’m suggesting you ask strategic questions to determine how to adjust and ensure your meeting is a success.

Ask a your Sales or General Manager a some open-ended questions like these and see where it leads you.

1. How is the recession affecting your business?
2. What changes have you implemented (or what have you done, or what are you doing) to address these challenges?
3. How will these changes affect my meeting and my guests?
4. What can me and my guests expect from you during our meeting?

Combine the intelligence you gather from these questions with the intelligence you gather from your peers at the Meetings Intelligence Exchange and you’ll be better prepared to run a successful meeting. 

To your success,

Tim Ryan

I’m really enjoying Alan Woinski’s, The Daily Lodging Report, insight on the current “perception” issue we’re facing. Following is an excerpt:

Bloomberg published a story on how many hospitality veterans and leaders are labeling Congress as hypocrites. They cited how a group of two dozen senators from both parties left town for a political shindig on the Florida coast right after passing a measure limiting luxury spending for corporate travel by recipients of federal bailout funds. The story said hotel industry leaders are seizing on those trips as ammunition in a campaign to get lawmakers and the Obama administration to tone down the rhetoric against business travel, which they say is adding to their economic difficulties. We know there are a lot of people in this industry who take offense to the views by some on this. They believe commentary by industry leaders and member of the lodging media should not be so anti-president or anti-Congress. A U.S. Travel Association study showed the hotel industry suffered about $1 billion in cancellations in January and February. Las Vegas casino resorts and companies like Starwood Hotels and Resorts Worldwide are reporting companies canceling meetings at the last minute, losing 100% of what they have paid just to avoid criticism and ridicule. While it could just be a coincidence that this happened after the comments by President Obama and publicity by the words of congressional leaders, we also think some believe the Easter Bunny will join us on April 12th. That being said, we don’t think the industry is doing itself any benefit by beating a dead horse. The industry made its case and the best thing right now would be to let things settle down. The fact that a dozen Democrats, including the Democrat who sponsored the amendment to the stimulus package requiring companies receiving TARP funds to curb luxury expenditures, gathered at the Ritz-Carlton in Naples at a room rate of $469 for a coastal view room is not something that should be ridiculed. The 11 Republican senators who held a similar retreat the Breakers resort in Palm Beach paying $475 a night and another $292 for a golf tournament is not such a bad thing either. The industry may be guilty of doing exactly what Congress has done by making a big deal about this. Both parties said the trips were paid for by private donations from contributors, not from taxpayers. Right now politicians should be urged to do this more often to make up for the damage they caused. It is time to let this all go and the uproar to die down so business can get back to normal.

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The U.S. Travel Association is fighting back against the lack of common sense by our political leaders in Washington, launching “Meetings Mean Business” campaign.  The campaign is an initiative intended to push back against the political demonization of business meetings and events.  The campaign is being launched as companies, many who never received a dime of the TARP handout, cancel thousands of meetings and events out of fear they will be singled out by these pathetic politicians.   The Association said the climate of fear is causing a historic pullback of business meetings and events with a devastating impact on small businesses, American workers and communities.  A survey by Meetings and Convention Magazine conducted prior to the latest explosion about Northern Trust, showed more than 20% of companies that did not receive taxpayer assistance have cancelled events due to recent media and political attention.   52% said the news coverage has been extremely or moderately influential on their companies’ decision to hold events.  The campaign will challenge policymakers to tone down the dangerous rhetoric, embrace sensible guidelines for companies receiving assistance and promote travel as an economic solution.  We hope this works but a quicker response would probably be felt if the top brass and board of directors of Marriott, Hyatt, Loews, and the private equity groups owning other hotel companies send a message that there will be NO campaign donations until Congress and the president right the wrong they committed and seem to have no remorse over.

“Alan Woinski, Daily Lodging Report

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Click here to learn more about our free membership program for Meeting Planners and executives who plan meetings.

How many of your friends think you have the best job in the world?

You travel to nice hotels and resorts, meet great people, hear world class speakers, dine with celebrities and athletes and you’re in a different city every week. And who else do they know that has a million frequent flier miles with three different airlines?

The glamour of the meetings business!

Sure all that may be true but we know the reality of our work.

Have we done enough to really educate our friends or our elected government leaders of the value of the meetings industry (by some estimates it’s a $250 billion a year business) that puts food on the tables of millions of workers who benefit from the business of meetings?

I don’t think so! If we did AIG wouldn’t have gotten so blasted (in my humble opinion they deserved some of it and didn’t handle the rest really well.)

So I am happy to see that the Travel Industry Association, SITE, MPI, PCMA are stepping up and educating our government leaders on the contributions that the meetings and travel industry makes to our economy.

“Keep America Meeting!”

It’s pretty safe to say that we’re all feeling some pain. 

Cancelled meetings, uncertainty about the future, and wondering if your next meeting will make the front page of the Wall Street Journal (like Wells Fargo, Morgan Stanley, and Goldman have this week.) 

It’s turbulent times for the meetings industry!

I met with one of our members last week during her annual sales incentive for her top 30 producers. She rewards them with a three-day trip to a very nice golf resort. Top producers, a few key executives, no spouses, lots of golf and half-day meetings.

She works for an international bank based in London, that has not accepted or needed British or US Government bail out money.  She was questioned by a group of golfers (who were playing the same course, for the same fees, on the same day as her top producers) about what company she worked for and why they were playing golf and meeting at a nice resort during a recession. 

Seems like the general public is getting a one sided negative view of meetings and incentives.

So I’m glad to see that our industry’s professional associations are joining forces to communicate the value and benefits of meetings and incentives.

To our success,

Tim Ryan

American Workers, Local Communities Unintended Victims of Cuts in Meetings, Events and Incentive Travel Programs

Travel Community to Issue ‘Best Practice Standards’ to Corporate America

Washington, D.C. – Leaders from key organizations representing the travel, meetings and events industries today issued the following statement regarding federal government efforts to curtail meetings, events and incentive travel programs among companies that have received emergency government lending:

“Americans expect Congress and the Obama Administration to responsibly and effectively oversee the use of taxpayer dollars to companies receiving emergency government lending. Americans also expect the business community and elected leaders to protect jobs and help the country rebound as quickly as possible from the current economic crisis.”

“We are extremely concerned about the unintended consequences of unnecessarily restricting corporate meetings, events and incentive travel programs. Business-related travel generates 2.4 million American jobs, $244 billion in spending and $39 billion in tax revenue at the federal, state and local level. State and local governments rely on this revenue to fund basic government programs such as education, health care and unemployment insurance.”

“At a time when the Department of Labor reports a loss of nearly 200,000 travel related jobs in 2008 and U.S. Commerce Department data predicts a loss of an additional 247,000 travel related jobs in 2009, elected officials and corporate America must take a thoughtful approach to managing the use of taxpayer dollars. Prudent organizations already have in-place travel and meeting management policies that ensure an effective return on investment for stakeholders. In the coming days, the travel, meetings and events industries will provide the business community with additional standards for meetings, events and incentives that demand transparency and accountability.”

““Travelers are an important solution to the economic problems that ail our country. The travel community looks forward to working with America’s elected leaders and businesses to ensure that we keep America moving.”

American Hotel and Lodging Association,
Destination Marketing Association International,
Meeting Professionals International,
National Business Travel Association,
Professional Convention Management Association, Society of Incentive Travel Executives (SITE)
U.S. Travel Association

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The U.S. Travel Association is the national, non-profit organization representing all components of the $740 billion travel industry. U.S. Travel’s mission is to promote and facilitate increased travel to and within the United States. For more information, visit www.ustravel.org.