Business Travel News - December 17, 2007 - (Page 22)

NEWS Buyers Leverage Mtgs., Transient Continued from page 19 Ability To Leverage Block Rates Varies How often negotiated transient rates secured for group room blocks MEETINGS MONITOR with those suppliers that work with us on the transient, so I’ll try to direct business that way whenever possible. It makes more sense to be able to leverage both the meetings and transient spend with each other,” said Patricia Carlin, purchasing manager of global card and travel for Dublin, Calif.based Sybase. She added that suppliers she works with prefer that approach “because the transient is a little bit more predictable than the meetings. You don’t know necessarily that you’re going to have another meeting. I go in there and say, I know this is a meeting, but my transient spend is this. It’s just a part of the negotiation.” Carlin said the preferred suppliers in areas where her company does a lot of business are “pretty good about building it all together, giving me the transient rate. The companies that charge me the same for meetings as they do for my transient or less are the ones I’m looking at,” she said. While buyers are looking to bring in transient spending data to lower meeting rates, “sometimes the benefit ends up being on the transient side,” due to the higher yield of meetings, said Carlson’s Moen. Usually 25% Sometimes 21% Seldom 15% Never 13% Almost always 21% Always 5% Source: A Meetings Monitor survey of 154 corporate meeting buyers Group Spending Often Not Fully Compiled Cos. consolidating meeting expenditures for supplier negotiations No, but plan to within 12 months 7% No 53% MEETINGS MONITOR Yes 40% Source: A Meetings Monitor survey of 154 corporate meeting buyers “The more group travel you can bring to them, the lower your transient rate might be,” he said. “The benefit of the group is that now you can do marketshare agreements with hotel suppliers across many destinations. You can negotiate with them and move share based upon a segment, like certain field meetings if the destination isn’t predetermined.” “What we’re seeing now is using the meetings to help leverage the transient negotiations and the real savvy customers are taking it the other direction as well,” Amex’s Wilkes said. Some hotels have begun to approach buyers with deals for combining spending. Bill Davidson, manager of corporate travel and meeting services of Austin, Texas-based Sematech, said some properties have offered a yearly upfront meetings pricing list based on the company’s historical transient spending with the hotel. “Certain properties that we have good transient relationships with have actually come up to us and offered us meeting packages almost in advance, because we do transient with them,” he said. “Knowing that we may have some 0 5 10 15 long-term strategic partnerships with certain properties, in that case we have corporate standing in our year-over-year spend,” he said. “They’ll come to us and say, ‘Look, this is what we’re willing to offer you for meetings for this year.’ It gives us a starting point.” ■ ehunter@btnonline.com ■ 20 Midmarket Companies Wielding Better Data Continued from page 19 pable. They know how to collect information. Meeting planners are entering into negotiations with more info than they’ve ever had before. Hotels which have traditionally been able to out-report the companies are finding companies coming into it with more accurate and more up-to-date data,” PwC’s Hanson said. However, some buyers feel that it is better not to talk about history and budgets in negotiations. “I don’t necessarily talk about history,” said Patricia Carlin, purchasing manager of global card and travel for Dublin, Calif.-based Sybase, adding that she would rather start with the parameters of a meeting and then work toward a price. “I will say if it’s a kick-off and it’s something we’ve traditionally done in that area. I’ll certainly let them know that. I’ll tell them what we’re looking for in terms of parameters, the numbers the dates, all of the components.” Hotels sometimes try to negotiate in reverse, she said. “I’ve had hotels say to me, ‘What’s your budget? What do you want to spend?’ I don’t like that because I don’t want to tell them I’ll spend $85 a head and have them build up to what they give for $85,” Carlin said. “I’d rather tell them what I want and drive the price down than have them build up. Maybe they’re pricing high because they know we’re going to negotiate it, but at the end of the day we get it to where it’s generally acceptable to all of us.” “Generally, people can be really accommodating. They’ll try to do what they can. As long as they’re making something on the deal, they’ll do it,” she said. Continued on page 23 Exec. Mtg. Spending Rises Continued from page 20 Others see less of a sense of caution around budgets. “We don’t see a great deal of budget sensitivity for these meetings,” HelmsBriscoe’s Malark said. “Not only do I see more executive meetings, I see more money spent on them to ensure flawless execution,” said Catherine Chaulet, senior vice president of events at chauffeured transportation firm BostonCoach. “I see more spent on these meetings so that everything goes well and to address any last-minute changes.” “What’s really important in these types of meetings is that they receive a top level of service,” said Kristina Chaplin, director of group sales for Fairmont 22 Monday, December 17, 2007 Chicago. She cited such valueadds as club lounge and fitness center access. “Attendees at these meetings are all well-traveled, so these are all things that they are looking for and are used to.” High-end meetings still are under public and shareholder scrutiny. Some executives now look to keep meetings near company headquarters, for example, to keep from appearing extravagant. “We have not seen significant downgrading. We have seen a tendency in some companies to avoid overtly leisure destinations. They have become serious working meetings and they want to have that persona,” Malark said. Meetings “really reflect the attitude of the compa- ny. Where they have a board meeting sends a signal to their constituents.” Many companies keep meetings in business centers, like New York and Chicago. They are still going to “full-service luxury hotels,” Malark said. “They are generally staying closer to their offices,” Fairmont’s Chaplin said. “That’s why we’re forecasting an increase in them— because of the amount of corporations based here in Chicago.” “Budgets are always a concern. People want to do right by their shareholders,” said Frank Sandro, WaterColor Inn and Resort’s regional resort sales manager. Based in northern Florida, the resort has hosted board of directors meetings for companies based in the Southeast and Texas. Several suppliers noted that www.btnonline.com executive and board meetings appear to growing longer, with fewer one-night stays and more twoor three-night events. WaterColor’s Sandro said this timeframe was due to the executives’ schedules. “Their time is so valuable, but their time together is valuable as well,” he said. ■ ehunter@btnonline.com ■ BOARDING LOCAL EXECUTIVE MEETINGS: Florida’s WaterColor Inn. Business Travel News http://www.btnonline.com

Table of Contents for the Digital Edition of Business Travel News - December 17, 2007

Contents
Amex to Go End to End
Hood Back at BCD
AirTran First Sabre XML Airline
Inside Track
MasterCard Upgrades Reporting, Data
Amadeus Debuts Hotel Platform
Washington Wire
Kodak Moment
Travel Management
Forum
Mtg. Buyers Give Carriers Lower Marks
Meetings Today
Drawing Boards
Black Book Contents
Airlines
Private Jets/Charter
Associations
Car Rental Companies
Conference Centers
Consultants
Lawyers
Travel Management
Travel Security
Travel Technology
Ground Transportation Companies
Education
Hotel Chains
Corporate Housing
Hotel Management Companies
Hotel Rep Firms
International Business Services
Payment Systems
Technology
Back-Office Accounting
Data Consolidation and Reporting
Hotel Program Services
Meetings Management
Miscellaneous
Reservation Systems
T&E Expense Management
Travel Management Companies
Travel Angency Networks

Business Travel News - December 17, 2007