Business Travel News - May 18, 2009 - (Page 20)

MEETINGS TODAY Hilton, Hyatt Vets Join Mtgs. Third Party ConferenceDirect Two longtime hotel executives who oversaw group business have jumped to join third-party meetings firm ConferenceDirect. Dave Scypinski, who previously served as senior vice president of industry relations at Starwood for eight years—after serving in various roles at Hilton for more than two decades—and Fred Shea, former vice president of sales at Hyatt, who joined the company more than 30 years ago, recently talked with Rayna Katz, executive editor of BTN sister publication MeetingNews. MeetingNews: The two of you combined bring decades of experience to ConferenceDirect, mostly on the hotel side. What does that allow you to bring to your work today? Fred Shea: It allows me to help existing customers with issues from the downturn, such as trying to maximize room blocks to prevent attrition. Also, one area where I’m spending a lot of time is contract negotiations, which is something I worked on a lot at Hyatt. Now, I’m showing ConferenceDirect associates how to do this. Dave Scypinski: We know more about the contracting, dispute resolution and sales processes than just about anyone, because we’ve worked on them since 1991. We’re the Methuselahs of the industry. The skills are transferable. The difference now is we’re making sure the customers are covered, so we have to say the opposite of what we would have said on property. MN: What tips can you give to planners about working with hoteliers and third parties? Scypinksi: Meeting planners need a firm grasp on the value of their business and where it’s welcome—though right now, it’s everywhere. Shea: I’d recommend that any organization should look at all the processes in place and make sure employees—and especially meeting planners—are working on high-value items. The company should bring in more third parties to handle the rest. I don’t want to sound self-serving. I joined ConferenceDirect because I believe this [customers signing on third-party companies] is the THIRD-PARTY FIRST FOR TWOSOME “Methuselahs” Dave Scypinski (left), Fred Shea move to ConferenceDirect. way of the world. Outsourcing makes sense because when you delegate in a corporation or large association, it’s generally to someone with less experience, but with outsourcing, it’s generally to someone with more experience. MN: What are your roles at ConferenceDirect? Scypinski: I am having meetings with big customers of mine, in order to open doors. Shea: I’m responsible for supporting about 60 associates with new business development and enhancing customer-service levels. Once business is booked, we’re a customer-service organization. I also work on enhancing training, because I have a lot of experience training salespeople. MN: What has surprised you about being on the other side? Scypinski: Sometimes your friends don’t necessarily book with you, or they’re reluctant to trust a third party, and sometimes associations aren’t comfortable with it. Shea: There is something exhilarating about being able to work with any hotel in the world, not just the 125 I was working with before. I was in my own little world. MN: What’s your forecast for the industry? Scypinski: There are 5,000 new hotels opening worldwide in the next two and a half to three years, and that’s going to dilute things. Plus, limited-service product is being put next to full-service hotels, and a lot of the limited-service brands have a great product now. That’s going to further dilute the market in the next few years. Shea: I’m amazed that hotel companies are putting their own limited-service brands in downtown markets, where they’re competing against their own full-service brand. The meetings side is going to get better, but in some markets, hotels are overbuilt. Scypinski: To load a market with new product now is almost suicidal. Shea: I think it’s going to get worse before it gets better. Scypinski: Me too. ■ Economy, Backlash Rock Overseas Mtg. Demand,Triggering Deals BY WILLIAM NG The economic slump and recent backlash against corporate events have taken their toll on U.S. outbound meetings and incentive travel. Some international planners are pursuing meetings business outside of planning, while industry experts urge planners to leverage deals now for future meetings abroad. International hotelier David Gabri, president and CEO of Associated Luxury Hotels International, which handles sales and marketing for meetings hotels and resorts in the United States, Europe, Mexico and the Caribbean, said “significant re- tractions” in overseas meetings and of Denver-based Expert Incentives, business travel have occurred, pre- which plans high-end programs in dominantly in Europe. Europe, Australia and New Zealand. “The characterization of meetings, “Companies that do incentives have incentive and awards as junkets has large sales forces—usually public been very damaging to internation- companies that have to answer to al travel,” Gabri said. While compa- stakeholders.” nies have taken conWhile Gabri noted servative approaches Access the 2008 Business small signs of market Travel Buyer’s Handbook to international travel confidence returning, see btnonline.com/handbook because of the downformer National Busiturn, Gabri noted they “don’t want to ness Travel Association president add fuel to the fire with anything Kevin Iwamoto, now vice president that can seem excessive.” of enterprise strategy for StarCite, “At no other time have we been said analysts at the March 30 NBTA so under the microscope by the pub- Business Travel Financial Forum in lic,” said Catherine Peters, president New York City were grim. Iwamoto Business Travel News said some analysts warned hospitality executives that a business travel turnaround might not occur until 2011. Peters anticipates incentive programs will feel the brunt in 2010. “International groups aren’t going to cancel at the last minute if they can help it,” she said, “but they won’t sign contracts for next year, or the programs will be scaled back and closer to home,” citing Hawaii, Mexico and the Caribbean as potential beneficiaries. “Salespeople won’t make their numbers in this economy, so there will be fewer qualifiers.” Continued on page 22 20 Monday, May 18, 2009 www.BTNonline.com http://www.btnonline.com/handbook http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - May 18, 2009

Business Travel News - May 18, 2009
Contents
Inside Track
Profiles In Travel Management
Forum
Aviation
Lodging
Meetings Today
Destinations
Silver Anniversary Celebration

Business Travel News - May 18, 2009