Meeting News - September 21, 2009 - (Page 14)

MeetingNews Research By Seth Harris sharris@meetingnews.com Lead Times Hold Steady As Planners Eye Short-Term Meeting Deals Meeting lead times plateaued in 2009 for many penalties—both on air, using nonrefundable tick- al features and benefits, concessions on F&B, planners after they witnessed several years of plan- ets, and on the deposit at the hotel—they factored meeting room rental and other things, and they ning cycles becoming increasingly abbreviated. all that into their budgeting and are willing to seem to be thrown on up front,” he said. Just because lead times have shortened doesn’t Some planners and third-party executives said forgo their deposit and take the penalties,” Salvamean there always is an uncoordinated dash to sign that some lead times have shrunk to just a few tore said. While the shortening of small-meeting contracts. Some planners are “waiting to see if the weeks as planners aim for lower prices and lead times has slowed, except for mad optics change and see if prices come down before more concessions from hotels and venues scrambles to close a deal, larger confer- they commit,” said Debbie Grossi, Egencia Meetthat are keen to fill space in a hurry durence and incentive program planning ings & Incentives director of North America.“They ing the economic downturn. Research cycles continue to be shaved. According see the longer they hold off, the more desperate the According to a MeetingNews survey to Dave Sonricker, BCD Meetings & hotel gets and the lower the price is going to go.” of 201 planners, 73 percent said lead With lead times being shortened and hotels and Incentives senior vice president of MICE times are about the same in 2009 as they for the United States and Mexico, average other meeting venues eager to get business, planwere last year, while 15 percent said they are large program lead times are 70 days less than they ners can bide their time as prices for the most part shorter this year. Forty-one percent of 198 planners in the survey were in 2007, a drop of 12 percent. They now aver- continue to fall. “Businesses know it’s a soft marketplace. They said their lead times for meetings of less than 100 age about 17 months before the event date. Salvatore said the window from sourcing to don’t need to negotiate rates this far out, so we can attendees are 30 to 90 days before the event date. Global Conference Associates president Jim signing the contract is the shortest it has ever been, go inside of 90 days and still get good pricing,” Fausel Jr. said projects that used to take eight to 12 with many hotels delivering their best offers first. Fausel said. “Most of inventory is still there withmonths of planning now are being turned around “In the past, we would have to bring up addition- in 90 days, at least for 2009.” H in 30 to 90 days. Much of that tightening has come from constant budget reevaluations and the quick Average 2008 lead time for U.S. meetings with FEWER than 100 attendees allocation of funds that were not available a few months ago. Total* Corporate Association “Once budgets are reviewed and the value of Less than 1 week 1% 2% 0% meetings and business is recognized by companies, we are getting the call to action,” Fausel said. 1 - 3 weeks 10% 13% 4% Strategic meetings management consultant 1 - 3 months 41% 48% 32% Kathy Rust, president of Rust & Associates, said that during her planning days at Washington 4 - 6 months 27% 23% 28% Mutual, lead times for large companywide annual 7 months to 1 year 16% 10% 30% meetings and incentive programs typically were more than a year out. Smaller meetings tended to More than 1 year 5% 5% 6% be about three months or less. *Includes independent planners Source: A MeetingNews survey of 198 meeting planners In some cases, planners let lead times shrink because prices can drop even lower or their uncerAverage 2008 lead time for U.S. meetings with MORE than 100 attendees tainty about holding the meeting due to negative Total* Corporate Association perception or budgets being pulled. One company asked travel and meetings manLess than 1 week 1% 2% 0% agement company HRG to plan for a meeting in 1 - 3 weeks 4% 6% 0% Pittsburgh for 160 people on Sept. 24 just three weeks prior, said HRG North America president 1 - 3 months 19% 22% 9% of events and meetings management Paul Salva4 - 6 months 27% 31% 14% tore. HRG booked a 300-person meeting in Boston for another client, but the client won’t 7 months to 1 year 26% 25% 27% announce the meeting until a week before, in case More than 1 year 24% 14% 50% it gets a more favorable deal or has to cancel. *Includes independent planners Source: A MeetingNews survey of 164 meeting planners “Even though we made them aware of the MN 14 MeetingNews September 21, 2009 www.meetingnews.com http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - September 21, 2009

Meeting News - September 21, 2009

Contents
Pricing Forecast
Newsmaker
Meetings Spotlight
Event Profile

Meeting News - September 21, 2009

Meeting News - September 21, 2009 -

Meeting News - September 21, 2009

(Page Cover1)
Meeting News - September 21, 2009 -

Meeting News - September 21, 2009