What Meeting Planners Want
What meeting planners want, how to pump up revenue, tapping new markets and meetings trend data
By Karyn Strauss, Senior Editor -- Hotels, 3/31/2007 11:00:00 PM
What Meeting Planners Want
• You have to provide Wi-Fi at no extra charge. That's a given. Some properties even extend that to private islands," says Jim Schultenover, president, Krisam Group, Washington, D.C. "Planners want bigger chairs; high ceilings that will accommodate even large equipment exhibitions; cell phone coverage throughout the site and function and meeting rooms with spaces that meet their needs.
• "You have to differentiate your offer. Steven J. Heyer, our CEO, says there is more loyalty to a 50-cent can of Coke than to a hotel room. We have to create that loyalty by making the brands stand out. We have to define the Sheraton meeting of the future versus the Westin meeting of the future, and we have to do with things such as increased audio visual offers, plasma screen televisions, different types of lighting, different tables," says David Scypinski, senior vice president, industry relations, in Starwood Hotels & Resorts.
• Budgets for corporate international meetings are facing downward pressure, and there is always a demand to demonstrate return on investment In addition, global security concerns and perceived regional health risks still linger," says Cecilia Yang, director of events management for Shangri-La's China World Hotel, Beijing.
• We have upgraded our technology to make the request for proposal (RFP) process easier," says Tori McLaughlin, director of sales and marketing, CALEO Resort & Spa, Scottsdale. "We are addressing meeting planners' demand for more health-conscious, heart-smart men selections. In fact, we work with a prominent local hospital to create specialized menus and health programs. We also find meeting planners are demanding more eco-consciousness. Our brand, Kimpton, has an eco-consultant who visits our property to make sure we always meet the highest company standards on green issues.
• "It is not new, but planners want a strong return on their investment and they want to see creativity in programs, menus and business offerings," says Beverly A. Magee, director of sales and marketing, Fairmont Olympic Hotel, Seattle.
Pump Up the Meetings' Market's Revenue Delivery
• Nobody wants to do three banquets in the banquet room on three consecutive nights," says Jim Schultenover, president, Krisam Group, Washington, D.C. "To keep groups on property, take advantage of your outdoor spaces in a new way or use the beach. After a 100% nose to the grindstone meeting, one hotel issued the delegates golf carts and served dinner in an area set up like a drive-in movie. If you don't have a golf course, you can provide vouchers for roomservice or set up a special space in the restaurant.
• "Providing fine dining, restaurant-quality food in our banquet spaces is one way we are upselling. Offering specialty drinks, bars, espresso carts, soufflés for 300, cheese courses, white glove service, themed breaks-all of this helps to increase the average spend," says Beverly A. Magee, director of sales and marketing, Fairmont Olympic Hotel, Seattle.
• Large groups want larger spaces for exhibitions, larger spaces for general sessions and more break-out rooms. Addressing that demand will add five points in occupancy for us. Internet connectivity in the meeting space is huge. We just hosted a Microsoft meeting. They would not have looked at us without connectivity. Planners also want meeting space to feel more residential, not institutional," says Randy Miller, Gaylord Hotels' senior vice president of sales, Nashville. "In terms of selling, the face-to-face dynamic is critical. We take planners up in a helicopter so that they can see how close we are the airport and downtown. We show them where a mall is or arrange a dinner or breakfast on the stage of the Grand Ole Opry, with performers and songwriters telling their stories. In one case, we sent a limousine to Louisville to pick up a customer who loves music. We had a prominent songwriter in the car and they wrote a song together on the way down here. You have to do a personal profile and deliver and experience.
• "Everyone wants to be in Manhattan but not everyone can. So ask, what is the closet hotel? You may be able to offer 15 other hotels depending on the needs of the group. We have had a lot of success with internal transfers of leads. Giving percentage incentives for referring business that is booked also helps. We have had good results with our Starwood Conference Collection concept which offers a variety of benefits for booking two to three meetings," says David Scypinski, senior vice president, industry relations, in Starwood Hotels & Resorts.
• To upsell, China World Beijing offers themed coffee breaks. We also assist meeting organizers and travel bookers with tools such as complimentary rooms on site inspections, complimentary broadband access and provision for a conference concierge," says Melanie Ranoa, the hotel's director of sales-MICE.
• Through our spa, we offer meeting guests yoga stretch breaks. We go into a meeting room set up especially for this and get participants' stretching their backs. We also offer a spa break, with a massage therapist providing stress releases. We also offer Signature meetings, a Kimpton-originated program whereby we theme meetings. These special programs can add as little as U$$7 or as much as US$100 per meeting guest," says Tori McLaughlin, director of sales and marketing, CALEO Resort & Spa, Scottsdale. "The single most important thing we are doing to build meetings business is through the use of partnerships with key support teams in our feeder markets-for example our relationship with the Krisam Group. Having them as an extension of our sales team is a huge benefit. The web is also important, and we are aggressive online with the RFP process. But, it remains a relationship business.
• "We are in the early stages of applying revenue/yield management to the meetings market. It works for meetings that are 60 to 90 days out. The issue is how do you create a yield profile three years' out?," says Michael Boult, president and CEO, Starcite.
Tap New Markets
• You can see new growth where ever there is news. For example, shakeups and mergers happen every day," says Ann Marie Moayedi, national director of sales, ARAMARK Harrison Lodging. The biggest selling point for financial companies and high-level board meetings is privacy. No one wants to see a competitor down the hall. She also suggests asking whether client companies have dual headquarters: one inside the United States, another outside as do many pharmaceutical companies and, now, financial institutions. "Ask for referrals," she adds.
• There is no silver bullet for finding new business. We just found 12 pharmaceutical companies in Ohio we did not even know existed. Hotels are going to have to cast a wider net so that you will not be dependent on any one market," says Jim Schultenover, president, Krisam Group, Washington, D.C. Getting international business to travel beyond its own region could be challenge "Travel time is an issue. You don't want to be in a two-stop destination," he adds.
• We are seeing new interest in eco-friendly destinations. Guatemala, Peru, Chile, Croatia and Iceland are new markets. Dubai is big for Europeans. Chinese groups are looking toward Thailand, Malaysia, Vietnam and Indonesia. There is not much outbound group travel yet from India. The groups that do travel often go to Singapore or Thailand. Russian travel is mostly FIT at this point. What meetings there are tend to be in Frankfurt, Paris, London, Dubai and Abu Dhabi. In the United States, Las Vegas is hot, hot, hot. Other cities to watch include Seattle, Dallas and Memphis," says Michael Boult, president and CEO, Starcite.
• Incentive groups coming in for cruise departures from Seattle are the biggest single new source of business. Incentive planners who have grown tired of beach and ski resort destinations are considering new options such as cruises to Alaska. Also, incentive business represents only 5% of our total business, but it is growing rapidly," says Beverly A. Magee, director of sales and marketing, Fairmont Olympic Hotel, Seattle. "For international business, build relationships with local trade development offices for inbound international visitors, as well as with embassies.
• "Some of the big spenders are the automotive, medical, pharmaceutical and information technology companies. Now, we are seeing a lot of food related companies. Franchise organizations are a lucrative market for us. Groups such as the BETA Club (a group which builds leadership skills among high school students) and student social organizations can help build off-peak occupancy," Randy Miller, Gaylord Hotels' senior vice president of sales, Nashville.
FutureWatch On Meetings
Sponsored by Meeting Professionals International (MPI) and American Express, FutureWatch 2007 cites these trends for the global meetings and events industry:
• Health in the marketplace A diverse group of more than 1,400 meeting planners said they expect to manage more meetings in 2007 and expect to see larger budgets. Budgets are expected to increase 21% for association planners and 18% for companies. The bad news is that the average spend per meeting is expected to increase only 8% and 4% respectively.
• Centralization. Fifty-four percent of corporate planners say their meeting functions will be mostly or completely centralized across their organizations; 49% have a meetings function that is centralized across different organizational locations or regions.
• Procurement power. Thirty percent of meeting planners acknowledge that procurement plays a major part in their purchasing decisions; another 34% report at least some level of input. Twenty-seven percent predict purchasing departments will become more involved this year; 15% predict they will be less involved.
• Technology. The most sought-after products: technology that helps with meeting logistics; tools to get attendee feedback about meetings an events; tools for identifying and tracking meeting attendees, from registration to badges and radio frequency identification (RFID) technologies.
• Outsourcing. Little change is expected. Meeting planners expect to outsource 15% of their meeting-one-third of which will be completely outsourced.
• Meetings map. Most meeting planners will be staying close to home. Ninety percent of U.S. planners will hold their meetings domestically in 2007, while 87% of Europeans will hold their meetings in Europe. Canadians planner say 72% of their meetings will be held domestically compared with 86% the previous year.
Performance Trends
PhoCusWright projects solid growth in the meetings/conference market. But, are those projections reaching the bottom lines of hotels?
• Various properties are projecting 4-5% increases. We have an upward moving economy. Money is being spent on training. However, companies still are focused on the bottom line. Budget procedures are being reviewed by procurement departments more carefully," says Ann Marie Moayedi, national director of sales, ARAMARK Harrison Lodging.
• Procurement departments who want the rates they asked for three years ago and want to drive really hard bargains are wondering why they cannot get (hotel) space. Hotels now have choices; they are yield managing their meetings business and they can get really granular with pricing. It is a time when we will see more flexibility on both sides," says David Scypinski, senior vice president, industry relations, in Starwood Hotels & Resorts.
No related content found.
View All Podcasts
