Meeting Expectations Have Changed for Hotels
The ground was fertile and the format—think speed dating—was designed to maximize opportunities. The hoteliers had brochures and laptops set up at their tables, and were ready to show off their properties and book business. Two huge video screens in the far corners of the room scrolled through images and the table numbers for each property, along with a countdown of the allotted 20 minutes of meeting time. When the bell sounded, meeting planners moved on to their next appointment. Over two days, 10 hours were devoted to these meetings, with educational breakouts, food and fun mixed in.
At one table, Glenna Fulks, a procurement specialist for AO North America, who books approximately 70 meetings a year for Synthes, a medical device company, met with Susan Wessel, the national sales manager at The Inverness Hotel and Conference Center in Englewood, CO. Fulks was looking to book an event, actually an academic course, for 240 people in March 2012 and needed space for two large lecture halls and room for a lab. Wessel had the space and availability, and the two left believing they would eventually finalize a contract.
CHANGING TIMES
Benchmark Hospitality, the Texas-based operator of 30 hotels, resorts and conference centers, recently released its list of hotel meeting trends for this year and beyond. Cautious optimism for 2010 topped the list, and shorter booking windows, price sensitivity and negotiation, smaller groups and shorter meetings all were mentioned.
“We’re trying to creep rates and curtail cancellations,” says Ritz-Carlton’s Cookley. “Last year was almost easier because we could say yes to everyone. We’re still quoting aggressively, but planners want 2009 terms. The interest in multi-year contracts has grown. Planners want to lock in down-year rates with small escalators.”
Terranea Resort in Rancho Palos Verdes, CA
It’s a different ballgame for hotels, which through the good times were able to fill the calendar with the biggest and most lucrative events. “Sometimes I shied away from larger hotels, but I’m finding they like our sized groups,” says Cate DeLaRosa, a human resources and events director for Ameriprise Financial, who plans a couple larger meetings each year and several smaller ones, too.
Andy Anderson, senior vice president of sales and marketing for Destination Hotels & Resorts, has seen his mix of group business at his 34 properties fall from 52 percent to 42 percent since the downturn. He prefers planners and smaller groups like DeLaRosa, because they often allow, and trust, the hotel to execute and are more likely to return than huge one-time events.
“The paradigm has shifted,” Anderson says. “I don’t think people realize the cement is getting hard. You’ve got more spontaneity, more protectiveness, more security built into what’s going on.”
Despite the changes, hoteliers were upbeat about the industry’s recovery. The AIG Effect, so crippling the year before, was hardly mentioned at Terranea. Even the weather had brightened on the final day of the Alliance. Catalina Island, 22 miles off the coast, was finally visible and the sun was shining as attendees headed home.
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© 2012 Penton Media Inc.
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