Meeting News - July 27, 2009 - (Page 17)

MeetingNews Research Meetings Demand Down, Cancellations Up example, this month introduced a program letting planners apply 10 percent of room revenue toward such incentives as audiovisual credits, aircontinued from page 1 port transfers, in-room Internet and resort fees, The survey indicated 37 percent of all—and 43 this year compared with what they spent in the Dominguez said. Other hotel companies are percent of corporate meeting planner—respon- first half. The establishment of regulations for the offering attractive attrition clauses—some even dents have had to cancel a contracted meeting or Troubled Asset Relief Program boosted the buy- offer no attrition penalties (see page 8)—to planevent during that past six months. George ers’ optimism, removing some of the uncertain- ners in negotiations. Odom, senior director of business development ty that had swirled around meetings budgets, “This is a brand-new phenomenon,” Odom for Advito, BCD Travel’s consulting division, said said Kevin Iwamoto, StarCite’s vice president of said.“You can call it a shell game, but they’re trythat number would be even ing to keep their rate integrity.” higher if it looked at a broader Sybase’s Carlin said her comExpected Organizational Change In Meeting Planning Expense, Next Six Months period than six months. pany probably has seen the “Almost everybody I’ve talked worst of its meetings spending Decrease by to has had one situation where cuts, but she didn’t expect the 20% or Increase more they had to cancel a meeting in budgets to bounce back to post11% Decrease by the last 12 to 18 months,” he said. decline levels anytime soon. 12% less than 20% “Meetings are getting shortOdom said tight controls enact22% term. The process of having ed around policies—including meetings that have been on the shorter and more regional meetStay about the same books for a year is in the past.” ings and the use of telepresence 55% The outlook for the next six technology to cut down on travmonths, however, is a little more el needs—would stay regardless optimistic. More than half the of economic conditions. respondents in MeetingNews’ “The scrutiny that put the survey said they expected magnifying glass on corporate expenditures to stay about the Source: A June MeetingNews survey of 250 meeting planners meetings isn’t just a short-term same in the next six months, phenomenon,” Odom said. “As and only about one-third said they expect fur- enterprise strategy. the economy gets better, the management of ther decreases. “There was a knee-jerk reaction to cut expen- meetings will continue the way it has been forced This perspective is corroborated by other ditures, cut costs and cut meetings,” Iwamoto to in the tough times.” industry sources. Smith Travel Research reports said.“Meeting planners recognized this was a hot In StarCite’s survey, 70 percent of clients listed that, year-to-date as of May, group occupancy potato and did a really good job in being creative moving meetings closer to home office locations had dropped by 20.6 percent compared with the and cost-conscious to keep meetings going, so as one of their top three tactics to reduce meeting same period of last year, but those occupancy the confidence level is pretty high.” costs. As a result, big meeting cities like Las Vegas levels are beginning to stabilize. “It seems to us The true test of that confidence might come and Honolulu remain in fairly dire straits, while that the 20 percent decline in group demand when it’s time to plan the budgets for 2010, to see such smaller cities near corporate headquarters might be the new bottom,” said Jan Freitag, the if further cuts come, Advito’s Odom said. Many as Oklahoma City and Indianapolis are faring firm’s vice president of global development. meeting planners, however, already have reached better, Iwamoto said. Michael Dominguez, vice president of global the bone in their budgets, he said. Almost 20 percent of planners in the Meetsales at Loews Hotels, said the rate of cancellations “Folks can’t cut their budgets too much more,” ingNews survey said they’ve moved a scheduled began to slow down about three months ago and Odom said. “There’s not enough left to cut that meeting to a lower-tier venue in the past six that scheduled meetings, for the most part, are would let them still be able to meet their corpo- months. Not surprisingly, the luxury tier has seen moving forward.“We’ve talked to a lot of corpora- rate requirements.” the biggest year-over-year drop in group occutions that have canceled their meeting this year, Loews’ Dominguez said the problem now is pancy through the end of May, down 26.7 perand they’re still not sure if it’s going to come back not canceled meetings but lower attendance at cent, according to Smith Travel Research. While next year, but things are starting to go in the right planned meetings, and that would be dependent Advito’s Odom said luxury properties could see a direction. We’re cautiously optimistic.” on employment levels to recover. Even associa- rebound if sales incentive trips come back in Meetings management technology supplier tion meetings, which were holding strong at the 2010, StarCite’s Iwamoto said group business StarCite surveyed 28 clients at its Global Leader- beginning of the year, are seeing attendance lag would be reticent to return to luxury hotels. ship Symposium conducted recently in Phoenix, as a result of corporate job cuts, he said. “There’s a new baseline being formed now, and found three-quarters planned to spend the Hotels are continuing to sweeten offers to spur and it’s foolish for those hotels to think it will same or more on meetings in the second half of a rebound in meetings spending. Loews, for come back when things turn around,” he said. r www.meetingnews.com July 27, 2009 MeetingNews 17 http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - July 27, 2009

Meeting News - July 27, 2009
Contents
Newsmaker
Meetings Spotlight
Meeting Post
Viewpoint
Association Watch
Event Profile
Meeting People
MeetingNews Research
Travel Dashboard
Mid-America Regional
Golf Meetings
Hawaii

Meeting News - July 27, 2009