Meeting News - May 5, 2008 - (Page 14)

Transportation & Services Missed Connections & New Legal Challenge American Airline’s recent MD-80 groundings presents consideration for insurance New York —When the FAA forced American Airlines to ground its entire MD-80 fleet in mid-April, effectively canceling about 3,000 flights over the course of five days, meeting planners were left to deal with decreased attendance, cancellation fees, and hotel attrition costs. “Planning a meeting in Boston, we expected to maybe encounter a weather catastrophe, but we ended up getting done in by the airlines,” said Richard Skinner, senior vice president of programs and research for the Association of Governing Boards of Universities & Colleges (AGB). The Washington, DC-based organization held its annual conference in Boston April 11-15, and about 80 of its planned attendees— all of whom held American Airlines tickets—were unable to make it to the event. While the group still attracted its planned attendance of 1,000 people thanks to last-minute registrants, the no-shows affected the format of the meetings: small group sessions led by carefully chosen facilitators. “We spent seven or eight months deciding on just the right person, then had to scramble to replace a few of them when they couldn’t make it,” said Skinner. The organization also had to stick to its tight refund policy because it had made commitments for food and beverage, so attendees were unable to get their registration fees back. Some attendees who were able to get to Boston, but unable to get incurred when stranded attendees left blocked-off rooms empty. Dallas-based attorney Steve Rudner, whose Rudner Law Offices firm exclusively represents hotels and resorts in regards to group issues, said that several of his clients were left with vacancies from attendees who could not make it to their meetings or group retreats. While many of the properties Rudner represents were understanding in this situation, he warned that they might not be as flexible in the future if airline problems continue. Rudner advises planners to purchase insurance for their meetings, because the question of arrival is considered a business risk. “The financial burden of an insurance policy is less than the attrition costs groups could face,” said Rudner. While some planners might think that adding “curtailment of transportation facilities” to their force majeure clauses would cover them in case of another mass airline grounding, Rudner said that will not always apply. “If other airlines are flying and if some people are able to arrive, it means that the curtailment did not make the meeting impossible,” he explained. Plus, he said, most hotels will most likely not accept such rewritten contracts because it is not a smart business move for them. Edited by Lori Morris lori.morris@nielsen.com JetBlue Helps Meetings Soar The airline expands its CompanyBlue Meetings program New York—On April 10, JetBlue Airways announced the expansion of CompanyBlue Meetings, a program designed exclusively for corporate meeting planners when it launched in 2007, to now simplify the book- expected to maybe encounter a weather catastrophe, but we ended up getting done in by the airlines. —Richard Skinner, SVP, programs and research, Association of Governing Boards of Universities & Colleges “Meeting in Boston, we ” flights home on the last day, also had to pay for additional hotel room nights—at a price higher than the negotiated group rate during the conference. While the AGB conference attendees were responsible for paying their own way—about $2,000 per person—companies that footed the bills for meeting attendees were affected by hotel attrition charges Action! Warner Bros. Produces All-Star Meetings & Functions Burbank, CA—Warner Bros. Studio Special Events, famous around Hollywood for the lavish parties and premieres it throws on the studio lot, is now giving companies the chance to partake in its extensive services. They are not only opening 14 MeetingNews May 5, 2008 their 142-acre lot to the public, but the Warner Bros. Studios Special Events team will also produce offsite events. “Our clients have access to Warner Bros.’ talented professionals,” said Hillary Harris, director of Warner Bros. Studios Special Events. “Everything from catering, art direction, flowers, and entertainment to set design, special effects, and choreography is here, created by the same people who do these things for award-winning motion pictures and television services.” The team can create everything from intimate retreats to extravagant events for 10,000. ing process for convention and association travel, as well. The airline will offer meetings-specific discount codes that allow attendees traveling from various locations to receive a discount on JetBlue’s lowest available fares when they book through CompanyBlue Meetings online. The program also provides planners with a complimentary travel certificate for every 40 customers booked to the same event destination. The certificate can be applied to the current group or used for site inspections or other future travel. Other program features include a separate support desk, custom fares, and seat blocks for attendees traveling together. “JetBlue’s dedicated Meeting & Conventions Desk works directly with meeting planners to assist with their unique travel needs from start to finish,” said Chad Myerson, JetBlue Airways’ manager of group sales. “We make it easy for meeting planners to offer their clients competitive fares, refreshing customer service, and an award-winning product while rewarding them with greater flexibility and competitive incentives.” H www.meetingnews.com http://www.meetingnews.com

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