Meeting News - May 25, 2009 - (Page 32)

Golf Meetings By Frank Rosci Venues Seek A Golf-Meeting Mulligan Independent meeting planners, too, have seen a steep decline in the demand for group golf. “It has certainly dropped, I’d say by 75 percent Resorts waiving golf fees, more actively negotiating in the last year or so, but there is still a bit of Golf at corporate and association meetings has Indian Wells, Calif.-based 530-room Hyatt Grand demand. However, we had a group recently that been a longtime staple, but with the economy Champions Resort,Villas and Spa, director of sales canceled its scheduled golf tournament in Florislicing this way one day and hooking that way and marketing Joseph Alegre, said demand for da and decided to pay the cancellation fee rather the next, and with public and private scrutiny group golf dropped after a new course and club- than be perceived as being extravagant,” said heightened by what happened at AIG, groups house opened in August 2008. Jerry Janove, vice president of sales at the Resort want to avoid being seen as extravagant and over Meetings Consortium in the top, so a golf component at meetings may Cherry Hill, N.J. “They not be the given it was before the crash of 2008. just didn’t want to do it At The Greenbrier in White Sulphur Springs, and the economy, of W.Va., “The groups who come here do have golf course, played a role in as a component, but that business is off by 40 their decision. Those percent this year,” said vice president of sales and two things, the extravamarketing Jerry Wayne. “However, we still have gance issue and the sour good business ahead with 350 groups on the economy, are killing the books, and we’re looking for between 75 and 125 demand for golf, so more groups for the rest of this year. The good groups could go with a news for us is that there is a tremendous amount free day instead.” of pent-up demand. We’re seeing a slowdown Independent planner because of the economy and because groups are Elizabeth Zielinski, pressensitive about being seen as extravagant.” The Hyatt Grand Champions Resort added a course, but demand fell. ident of Meeting Horiresort’s group mix is 70 percent corporate, 30 zons in Fairfax, Va., said, percent association, Wayne noted. “It’s down, just as hotel occupancies and “Demand is extremely low, if not nonexistent, for The 721-room resort, which is being pur- average daily rates at golf resorts are down in my clients.” chased after entering Chapter 11 (see story, page general, just as demand for our spa and other Janove said groups that strike deals now can 1), opened its first golf course in 1914 and offers activities here is down,” Alegre said.“The econ- avoid tournament and greens fees and might be 54 holes of golf today. omy has become more of a factor in the last able to have a resort “throw in a box lunch and With the group-golf demand off, “everything month or so and the negative perception of cor- some gifts,” but the key is to “do those things up is negotiable,” he said. “We’re negotiating more porations is also a cause, with one group we had front when terms are set and the contract signed than at any other time and offering a lot more, opting for a day of team building off the golf and there’s more flexibility, rather than trying to including waiving certain golf fees, especially course, but, of course, team building can hap- get a deal a few months down the line.” when a group can be flexible. No question that pen through golf also.” However, Zielinski hasn’t seen such sweeping our supply is greater than our demand, so, yes, Groups do have “negotiating leverage now and deals. “I have not experienced, ever, in my 20like a lot of resorts in our industry, we could use can work some deals,” he said, noting their sav- plus years of planning, when such fees are waived a piece of business,” Wayne said. ings will be reflected in a lower per-person price entirely, but they are very negotiable items of a The resort’s pricing strategy is based on a min- for a round of golf, what he termed “bottom-dol- meetings budget and the more stress there is on imally acceptable rate, he said, with dates aligned lar value,” rather than in either the removal or the economy, as there is now, the more negotiatand rates adjusted according to a group’s needs. reduction of related costs, such as greens fees, ing power can be leveraged.” “With a new labor agreement signed, the reor- since it still takes a fixed number of resort In the short term, Janove said, resorts want ganization and the economy, it’s been the perfect employees to work a tournament. and need the business, so “anything can be negostorm for us, but we’re still being very aggressive Part of the resort’s pricing strategy, Alegre said, tiated in ’09, but if a group is going in 2010 and about our pricing policies, in terms of acquiring revolves around the minimally acceptable rate beyond, I’m not so sure. If you can get something group business,” he said. formula, adjusting it for each group’s needs, on the table for the fall and summer, you can On the other side of the United States, at the while still staying profitable. probably get some kind of deal.” r 32 MeetingNews May 25, 2009 www.meetingnews.com http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - May 25, 2009

Meeting News - May 25, 2009
Contents
Newsmakers
MeetingNews Research
Viewpoint
Meetings Tech
Meetings Spotlight
Construction Cites
Meeting People
Incentive Insider
Travel Dashboard
Dateline: Reno, Nevada
East Regional
Dateline: Texas
Mid-America Regional
Golf Meetings
Resort Showcase Contents
Atlantis
Beau Rivage Resort & Casino
Bellagio
Harrah’s/Harveys Lake Tahoe Casino & Resort
The Venetian and The Palazzo Las Vegas
Radisson Aruba Resort, Casino & Spa
Special Section: Florida

Meeting News - May 25, 2009