Meeting News - January 5, 2009 - (Page 36)

Florida Incentives Edited by William Ng william.ng@nielsen.com A Silver Lining in the Clouds that Hover Over Incentive Travel While the AIG Effect continues to claim programs, others look to the Sunshine State for the right price and image In mid-October, a big European bank was scheduled to hold a Miami incentive event for 450 attendees that would have been a showcase for how South Florida can roll out the red carpet: five-star hotel overlooking the ocean, plenty of South Beach parties, seaweed-wrap sessions at the spa, moonlight dinner cruises—the works. “It was really going to be spectacular,” said Lynn Griffith, CMP, president of Fort Lauderdale-based Welcome Florida Inc., a destination management company that does both incentives and high-end meetings. But literally the day before incentive attendees were to arrive, Griffith got a phone call. The bank was canceling the event. “What made it really strange was that the bank’s representatives came to Florida, paid me in full for the event, paid the hotel in full, and I am sure paid the airfare in full because of the short-term cancellation,” said Griffith. “So they spent the money and did not hold the event. They were very candid that they had the budget; Like a Florida gator, the mainstream press is out for more prey following AIG, but several planners say incentives in Florida can be both low-key and cost-effective. they just didn’t want to be seen as taking employees on a lavish vacation to Florida, because two other European banks had gone belly-up the week before.” In the wake of the public relations disaster at American International Group (AIG), companies and especially high-profile organizations are justifiably trigger-shy in holding extravagant incentives. Griffith said the European bank’s cancellation was based completely on how its stakeholders might have perceived the incentive. “It was all a perception decision instead of a dollar decision,” said Griffith. “Nobody wants to be the next AIG, with their event written up in a nasty news report.” As much as the AIG backlash is hurting the meetings, incentives, and hospitality suppliers, some incentive planners view Florida as a silver lining in the clouds. “In the scheme of things, Florida is not perceived as lavish and expensive by [U.S.] incentives clients, especially compared to any offshore destination,” said Griffith.“Right now, the Bahamas, for instance, is perceived as an exotic, tropical locale, while Florida is just perceived as a warm state.” Rick Rosen, president of Minneapolis-based TriStar Incentives, said he recently pitched Hawaii and Puerto Rico as destinations for a big financial services company.“They came back and said they didn’t have any problem with the budget for the event whatsoever, but the locations were out— the client did not want to go outside the continental United States because of the way it might look,” he said. Consequently, Rosen recommended Walt Disney World. The park has a wholesome image that is right for these times, he said, noting that motivating top performers with the opportunity to take their children to Disney World is considered “reasonable” by stakeholders. But as the recession deepens, limiting costs remains as much a priority as avoiding scrutiny. Florida is benefiting in these economic times due to factors that are dollar-driven, not just perception-driven, according to Patty Klein, president and CEO of A-Plus Meetings and Incentives, based in Coral Gables, FL. Rosen again recommends Disney World, where in the past he has taken dozens of incentive groups that wanted to save money. He said now, the Bahamas, for instance, is perceived as exotic, while Florida is just a warm state. —Lynn Griffith, president, Welcome Florida Inc. Nobody wants to be “the next AIG. Right ” he likes Disney World for some of the classic reasons planners choose theme park meetings.“You don’t have to create the theme because Disney has already spent millions doing it for you,” Rosen said. Rosen also said Disney World is completely self-contained with its own transportation system, so attendees can wander the park with no need for cabs or rental cars. Florida also has a huge supply of high-end hotel rooms in a buyer’s market, so there are plenty of bargains. “Incentive groups are still staying in high-end hotel rooms,” said Klein. “They are just paying less for them right now.” Moreover, Florida in the high season has an attractive factor going for it in good times or bad, according to Roberta S. Blum, DMCP, president of Tarpon Springs, FL-based HB Associates. “Hey, it’s still Florida,” said Blum. “And in the winter or early spring, your attendees won’t care if you had to cut activities back a little; they’re just happy to be in the Florida sunshine.” —Rowland Stiteler www.meetingnews.com 36 MeetingNews January 5, 2009 Photo: Visit Florida http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - January 5, 2009

Meeting News - January 5, 2009
Contents
What’s Up @ MeetingNews.com
Inside the Industry
People Making News
Hotels & Resorts
CVBs
Convention Centers
Transportation
Destination Insider
Incentive Report
Insider Report
MN Webcast Report
Ad Index
Live from the Forum

Meeting News - January 5, 2009