Meeting News - February 11, 2008 - (Page 25)

MN Exclusive Research Planners prep their counterstrikes on rising room prices her goals is to establish multiple-meeting contracts. s many industry forecasts have predicted, meetStill, according to the MN poll, higher room costs ing planners are experiencing rising hotel room are forcing planners to consider the tough move of costs this year, according to the latest MeetingNews scaling back on line items to keep within budget. In survey of 250-plus respondents. Quatrini’s case, the rate pressure has resulted in cutMore than half of the responding planners (55.6 backs on extracurricular activities and decor elepercent) are already witnessing ments in some of his client programs—which is higher room rates. For those what is happening with 14.7 and 11.5 percent of who have not suffered yet from room rate hikes, MN’s respondents regarding those respective items. they view them as a foregone conclusion: More Pre- and post-meeting staples like golf, shopping, than one-third (34.2 percent) of them are expect- and destination tours are increasingly out-ofing accommodation rate increases later this year. pocket options for attendees, said Quatrini. But many planners are combating the supEli Gorin, owner of Aventura, FL-based MN plier’s market by negotiating bulk contracts Exclusive gMeetings, which specializes in Latin America for multiple meetings with a hotel chain in Research meetings, is opposed to reducing recreation order to leverage discounts, as indicated by 41.3 and amenities. “Usually, attendees never have a percent of respondents in the MN study.“Absolute- chance to visit a destination if not for a meeting,” ly, we’re negotiating bulk contracts,” said Michael said Gorin. Rather than motivating, a meeting in an Quatrini, Orlando-based GM of vertically integrat- exotic location with few leisure amenities and scant ed marketing ﬁrm TBA Global LLC, which does relaxation time can be deﬂating, he said.“It’s rather Fortune 1000 corporate events. Stacy Weber, Seat- insulting to tease attendees.” tle-based event and meeting manager for western But Quatrini is retracting on those areas in order U.S. accounting ﬁrm Moss Adams LLP, said one of to preserve the quality of food and beverage, the line item many planners are surprisingly targeting for cost-reduction (18.3 percent of respondents) to balance higher room costs.“Food is so critically important,”said Quatrini.“It’s why people go to events. We What are your options for controlling hotel [tell clients] to give up decor items for food.” room costs in 2008? For powerhouse corporations like Microsoft, Options are their high-proﬁle events set the pace for meetings 30.6% limited; may end market conditions. Planners for such trendsetting up paying 55.8% events are striving to maintain quality. “We have to get more creative,” said Paulette Sud42.5% Negotiate bulk contracts with a darth, a Microsoft senior marketing manager who 40.0% single hotel brand is the planner of the ﬁrm’s four-day Most Valuable Professional Global Summit that draws 1,700 atten44.0% Reduce number of meetings dees from 91 countries. International ﬂight sched19.2% ules require many attendees to arrive one or two 33.6% days before this April’s event. The attendees’ stagShorten duration of meetings gered dates made it difﬁcult for downtown Seattle 17.5% Corporate hotels to manage peak nights, and in a sign of the Planners Consider booking 22.4% supplier’s market, hotels could not release rooms hotels with more Association limited services based on unpredictable peak nights. 22.5% Planners and amenities So, Microsoft decided to set four ﬁrm dates for Restrict 28.4% attendee accommodations but created an optional attendance 4.2% at meetings room-sharing program for those who need five room nights. “We’ll pay for a ﬁfth night as long as 0% 10% 20% 30% 40% 50% 60% they share a room with another attendee,” said SudSource: MeetingNews survey of 257 meeting planners darth. In exchange, the attendees get “MVP Bucks” By William Ng A Slice and Dice What is the ﬁrst item you would look to reduce to accommodate higher hotel room costs? F&B None—my budget has grown to accommodate higher rates Recreation/ amenities Theme decor Outside planning services Entertainers 10.4% 22.0% 18.7% 10.2% 13.4% 9.3% 12.7% 10.2% 11.9% 6.8% 11.2% 6.8% 4.5% 3.4% 3.0% 5.1% 0.7% 2.5% 5% 10% 15% 20% 25% Association Planners 13.4% 23.7% Attendee gifts Speakers Corporate Planners AV/tech Ground transportation 0% Necessary Evils Source: MeetingNews survey of 257 meeting planners redeemable for Microsoft products.“We have to balance the needs of our attendees and our suppliers.” Still, it has consolidated from seven to four hotels. Timothy Arnold, a Hilton Hotels national sales manager based in Colony, TX, stressed that hotel contract negotiations will remain a two-way street despite the table being tilted toward the suppliers. “My job is to continue to build relationships with clients and come up with room rates and meetings solutions that are fair,” said Arnold. “Planners certainly can save money with multi-year contracts,”he said, adding that he has seen a slight uptick in the number of bulk contracts negotiated. Arnold did note that planners are becoming more ﬂexible in dates and destinations to get price relief. Weber of Moss Adams, for her part, is considering off-season Palm Springs, CA; Tucson or Scottsdale instead of Phoenix; and mid-scale properties. “My job is to get the best deal,” she said. r Contact William Ng at william.ng@nielsen.com February 11, 2008 MeetingNews 25 www.meetingnews.com http://www.mimegasite.com/mimegasite/research/index.jsp http://www.meetingnews.com

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Meeting News - February 11, 2008

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