Meeting News - February 25, 2008 - (Page 20)

MN Exclusive Research Complete meeting packages still get lukewarm attention ed the concept. “It is an off-the-shelf package, of ccording to the latest MeetingNews survey of course, but you can negotiate some things into it and roughly 330 meeting planners, the complete some things out of it,” he insisted. meeting package (CMP) is still a pricing plan few of “There are limitations in every CMP, like if you them tap. Non-supporters cited high costs, extra need 45 microphones—that’s going to be an extracharges, hidden fees, and limited services and options item charge,” said Timothy Arnold, national sales as the reasons why they do not manager in Colony, TX, for Hilton Hotels. But, he use bundled packages. added, “Many CMPs can be tailored, like holding a Only slightly more than half (54 percent) of those lunch in a speciﬁc area.” polled by MN have used CMPs. Still, for those who Joan Eisenstodt, of Washington, DC-based Eisenhave used them, they rarely did—238 respondents stodt Associates, for her part, has had success in taireported that CMPs were used from none to only 15 loring bundled meeting packages at IACC properpercent of all their programs. ties. “In the past, they were more rigid, but now Whether it is just perception or reality for planners many are willing to work with your needs,” she said. like Steve Collins, owner of Resort Meeting According to observers, a lack of clear underMN Source, in Breckenridge, CO—the lack of ﬂex- Exclusive standing of the CMP model may have conibility to unbundle and customize complete Research tributed to the recurring concerns about inﬂeximeeting packages remains at issue and may have bility, lack of cost control, and restricted services. led to the reasons cited above for their non-adoption. Eisenstodt chalked it up to properties and planners Collins is one planner whose groups have not possibly not communicating enough with each other. warmed to package pricing, saying they balk at payAnother consequence of unfamiliarity with ing for services they do not need. “The continuous CMPs is sticker shock:“When they see a rate of $350 refreshment breaks—that’s an attraction—but the per person, they just stop considering [the CMP],” [F&B] price is pretty set,” said Collins. “My groups said Collins. He is not alone in that regard. don’t want three meals a day. They have less control One executive for a major meetings management over F&B, less ﬂexibility.” firm said planners typically think about meeting Neil Pompan, North America president of the space and guest rooms during the initial planning International Association of Conference Centers, of stages. Therefore, they’re not necessarily seeing that which all member properties sell only CMPs, defend- the CMP rate has included all F&B and AV, in addition to meeting and guest rooms, she said. And, Pompan noted that, too many times, package pricing is compared against just room rates. Arnold conceded that sticker shock is a disadvantage. But he contended that CMPs provide value for What impact has the involvement of procurement and the rise of preferred vendors had on the planner by simplifying the planning (and billing) your use of CMP pricing? of many line items. Pompan reiterated the CMP’s value of “not having to plan a menu,” especially for 42.2% Preferred vendor planners who are more logistics experts than F&B agreements usually 46.9% offer more value gurus.Also, he, as well as Bonnie Wallsh, of Charlotte, NC-based Bonnie Wallsh Associates, noted the I ﬁnd CMP pricing 28.9% comparable to advantage of a group breaking at any time and having preferred vendors 34.7% refreshments available. I like the turnkey 21.7% Meanwhile, the executive of the meetings managepackages and Corporate continue to use CMPs 14.3% Planners ment ﬁrm who didn’t want to be identiﬁed has used Association Procurement/ CMPs and found that the packages offer high value. Planners purchasing 7.2% restricts; CMP no “Even if the pricing may be higher, you’re getting longer an option 4.1% much more food and not paying for coffee,” she said. 0% 10% 20% 30% 40% 50% Ironically, the bundled pricing model may attain wider success if more properties that offer CMPs do Source: MeetingNews survey of 132 meeting planners By William Ng A What’s the Beef? What is your most serious concern when taking advantage of a complete meeting package? Extra charges for using items that I thought were included but not Hidden fees 38.4% 38.8% 27.7% 22.4% 15.2% Limited F&B options 16.4% 8.9% 6.0% 1.8% 7.5% Corporate Planners Limited services once the program is on site Restrictions on AV usage 4.5% None of the above 4.5% 2.2% 1.9% Association Planners *Other 0% 5% 10% 15% 20% 25% 30% 35% 40% * Other responses were: Being able to change CMP into MMP Cost for services we do not need Cost is usually more than a la carte Not having private areas for F&B The high cost Source: MeetingNews survey of 179 meeting planners Mandate on Value a better job of breaking out the costs for meeting buyers, said observers. Arnold said properties that successfully sell bundled packages break things down clearly on spreadsheets. Sandy Biback, founder of Imagination+ Meeting Planners, in Toronto, said, “If you broke everything down, I doubt [CMPs] are more expensive.” Although Pompan said IACC does not “tell its members how to run their businesses,” he did not agree with that strategy. “When you buy a car, you don’t ask how much the carburetor costs,” he said. Coincidentally, Collins ﬂipped the car analogy: “The CMP is like buying a fully loaded car and taking out things, as opposed to buying a base car and adding features.” Therein lies the dichotomy. But Pompan said, above all, complete meeting packages are not designed for everyone.“It’s not the perfect product for every meeting, but we will continue to educate the public on what the package is about,” he said, of IACC’s ongoing mission. r Contact William Ng at william.ng@nielsen.com www.meetingnews.com 20 MeetingNews February 25, 2008 http://www.mimegasite.com/mimegasite/research/index.jsp http://www.meetingnews.com

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Meeting News - February 25, 2008

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