Meeting News - May 19, 2008 - (Page 19)

MN Exclusive Research Slowing economy takes its toll on meeting programs in Raleigh. “So far, the numbers are looking the ith the softening economy making the news same, and we’re keeping everything the way it’s every day, it’s no surprise that the latest Meet- been,” she said. “We’re not getting more extravaHow have your dealings with suppliers changed? ingNews survey of 344 corporate and association gant, but we’re also not cutting back.” Rasor did note that her two conferences might meeting planners showed that a majority of plan31.5% ners are now having their budgets slashed. Corpo- be unusual in that “vets have to have 20 hours a There has been no change rate planners are feeling the sting slightly more than year of continuing education to keep their licens30.3% association planners: 66 percent of es.” Said Rasor: “They can only get a few of those 28.4% the corporate planners polled said hours online, and the rest has to be through inIt is harder to negotiate rates 32.0% their budgets have already been reduced, versus person training. Whatever the economy is, if they 52.5 percent among association planners. want to keep practicing, they need those hours.” They have become 19.1% less ﬂexible and Attendance too, has dropped, according to 40 While only 9.5 percent of the association planneed more 18.5% commitment percent of the corporate planners and 47.5 percent ners surveyed said that their overall meetings They have of the association planners surveyed. At press time, schedules have been reduced, 34.5 percent of cor13.6% become more ﬂexible to garner Charmaine Wright, associate director of Washing- porate planners have seen decreases in their num13.5% more business ton, DC-based National Tax Association, was ber of meetings. Farm Credit of South Florida MN 3.7% It is easier to waiting for her ﬁnal numbers for the group’s Exclusive straddles the two, as an association that’s part Research negotiate rates 5.1% Corporate spring meeting, but she said,“It’s a safe bet that of the privately owned nationwide Farm Planners our numbers will not reach what they’ve been in Credit System. Planner Lynn Cacella, the Association 3.7% Planners *Other the past. Registration has been slow, and what we’re group’s VP of marketing, has seen both fewer 0.6% seeing is that government agencies that previously meetings this year and cutbacks on the remaining 0% 5% 10% 15% 20% 25% 30% 35% sent 16 or so attendees have only two signed up this meetings. In the past, she said, [Farm Credit] hosted about year. We’re deﬁnitely seeing the impact of the econ* Other responses were: three networking meetings a year; this year there Higher commitment to customer service omy on this meeting.” Still, 20 percent of the corporate planners and 31 will likely be only one. Similarly, Farm Credit cut It varies, but just now it seems it's becoming a buyer's market, after two years of inﬂexible hotel negotiations percent of the association planners in the survey are the budget significantly for its annual meeting. Less programs to book experiencing “no change” in their programs. That’s “Traditionally, we’ve held our meeting at upscale New revenue streams are prevalent and we don't appreciate been the case for Mollie Rasor, executive director of venues, such as a hotel or country club, with door being nickel and dimed, including for tap water Not sure they get the seriousness of our situation the North Carolina Veterinary Medical Association, prizes and some other extravagances,” she said.“But We are now implementing two-year contracts with all suppliers this year, we took over a Carrabba’s restaurant. It We have cut everything to a minimum worked out very well, but from a cost standpoint, Source: MeetingNews survey of 340 meeting planners it’s the least we’ve spent in at least a decade.” On the other hand, she has noticed that attenWhat is your general outlook for dance is actually up. “We’re trying to ﬁgure it out,” check is by working less with DMCs.“With shorter U.S. economic recovery? said Cacella. “Maybe it’s because people are slower meetings, there’s less of a need for special events,” Expect extended 49.7% instability in their own businesses, so they have more time. she said. Or, she’ll go directly to a transportation before full 29.1% Maybe the networking aspect is more critical for provider rather than a DMC when possible. recovery them right now.” What she hasn’t noticed yet is any change in her We will 28.9% weather a short In the pharmaceutical and medical ﬁelds, Dawn interactions with hotels and other suppliers. downturn and 34.7% Crum, account executive at third-party meeting That’s in line with the experiences of 31 percent be ﬁne planning company VMS, based in Indianapolis, of planners who said there has been no change in Expect extended 25.5% challenges due said that this year the volume of meetings has their dealings. Nearly half (49 percent) said that it’s to shifting world 28.5% Corporate economic power remained steady, but many have been shortened either harder to negotiate rates now or that suppliPlanners and have had shorter planning lead times. She ers have become less ﬂexible and need more comDon’t know — Association 12.7% Planners just trying to do attributed this partly to the economy and partly to mitment. Only 13.5 percent said suppliers have my job the best 17.3% I know how other constraints, such as increasingly stringent become more ﬂexible, but Crum said that with the 0% 10% 20% 30% 40% 50% industry-speciﬁc guidelines. For 2009, her compa- softening market, she expects to have more negotiNote: Multiple responses allowed ny is projecting fewer meetings. ating power toward the end of 2008 and through Another way her company is holding budgets in 2009. H Source: MeetingNews survey of 344 meeting planners By Irene Korn W Suppliers Stand Firm In It for the Long Haul www.meetingnews.com May 19, 2008 MeetingNews 19 http://www.mimegasite.com/mimegasite/research/meeting_news_research.jsp http://www.mimegasite.com/mimegasite/research/meeting_news_research.jsp http://www.mimegasite.com/mimegasite/research/meeting_news_research.jsp http://www.meetingnews.com

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Meeting News - May 19th, 2008

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