Supply&Demand
Interviewed by Viju Mathew
January 2009
The hospitality and meetings industries share a long, happy relationship of great benefit to both. At their hearts both industries serve the needs and aspirations of others. Beyond that, the hotelier needs the planner's business, and the planner needs the hotelier's support. Negotiations may place them at odds for a time. But once the deal is struck, it's all systems go. We spoke with a representative from each side to hear the problems and solutions currently impacting the place where their worlds so neatly overlap.
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Supply
Q. What adjustments has Kimpton made in response to the current economic challenges? A. We're doing a lot of creative packaging, often with value adds to meetings or experiences that relate specifically to something important to the group. For example, we worked with Microsoft—a fellow eco-minded partner— to develop a program offering discounted rates for their travelers. A portion of the room proceeds benefited the Trust for Public Land, a nonprofit we support. As another example, we developed a Pick-Your-Perks promotion that includes discounts on the total bill, room, and equipment rental and gives planners the flexibility of choosing incentives that meet their budget. Q. Is it still possible to go big on a smaller budget? A. Absolutely. There are always opportunities to make a big impact without breaking the bank. An important ingredient though is flexibility. For instance, if you as a planner can book hotel and food and beverage arrangements with as much flexibility as possible—such as the ability to have lunch served at an unused cafe or courtyard as opposed to another meeting room—it allows us to layer in more group business. This can result in better room rates for you—savings that could be applied elsewhere. Q. Have you noted specific trends in meetings at your hotels? A. We are seeing fewer large meetings than we did a year or two ago as groups that would normally hold national or global events are breaking them down into a series of regional meetings. We are also noticing a rise in the use of nontraditional settings—such as suites—to entertain and host gatherings. These provide flexible seating options, distinctive decor and amenities, and lend a more casual, open atmosphere for discussion. Q. How are groups adjusting to the recent turmoil of air travel? A. We've seen regional planners begin to utilize trains and organize car pools as an alternative to flying. Where this isn't an option, our focus has been to try and relieve the stress caused by air travel. For instance, our We Got Your Bag offer gives a $25 room credit with proof of a fee for a second checked bag. As another example, we offer a menu of forgotten travel essentials free of charge. Our employees are also taking part in situational training to help them better assist customers who are taxed by their journey. We want to provide our guests with the element increasingly missing in the airline industry—a personalized service experience. Q. To what degree is environmentalism and social responsibility shaping event dynamics? A. More and more meeting planners and companies in general want to do business with hotels whose values align with their own. As an example, we get a lot of business because of our EarthCare policies as well as our Eco-Meeting program, where everything from the food served to the props and decor speaks to environmental awareness. Hotels are also seeing a much greater emphasis on social responsibility from their group customers. They want to connect with the causes that either the property or the planner support. Q. What do you see in the future for the meetings industry? A. One of the main challenges will be continued innovation. Generally speaking, Generation Y and Millennials have a very short attention span thanks to technology. They are used to information coming at them and changing within seconds. So as these younger generations become the new meeting audience, events will need to be more creative and innovative to keep them engaged. |
Demand
Q. As a planner, what adjustments are you making in response to the current economic challenges? A. First, instead of one-off transfers at the airport, we group people and plan for motor coach pickups every 15 to 30 minutes. We're also eliminating secondary off-site locations, such as theme parks. Instead, we're giving attendees more time off to explore on their own. Something else that works in our company's case is to use our locally based employees as support staff rather than flying in personnel. Finally, some of the company's departments have limited their attendees to managers or regional delegates who take back the meeting's objectives, action plan, and a DVD of the general session to their staff, thereby eliminating unnecessary costs of travel, hotel, and food and beverage. Q. Is it still possible to go big on a smaller budget? A. Again, you just need to look internally where possible. Rather than outsource speaker talent, we look within the company for people who have lead seminars on key topics. Also, if possible, we use corporate headquarters as a venue and spend the budgeted facility rental fee on production. Otherwise, we utilize the meeting destination's local environment. Instead of buying out the River Walk in San Antonio, for example, we can give meeting goers a walking map that highlights discounts we've negotiated. When it comes to catering, we try to work with the hotel to find regional menu items that not only reduce costs but also the carbon footprint of the food as well, all while infusing local flavor and style. Q. Have you noted specific destination trends in the industry? A. We are focusing primarily on centralized meeting locations. For us that means the Midwest because our folks come from both coasts. I know some companies are also transitioning to regional meetings, but I would love to see the financial numbers on doing that. Though you would certainly cut travel cost, you would now have, in many cases, four times the operational and fixed costs as opposed to one large national event where buying with larger numbers often gets a better deal. It really depends on the structure of the company. Q. How are you dealing with the recent turmoil of air travel? A. When the airlines make cuts, which they already have and will continue to do, secondary airports are impacted to a greater degree—an important consideration when you have one primary arrival day for delegates. Centralization and hub-city destinations help reduce cost, travel duration, and time out of the office. They also help keep our meeting goers fresh and are more environmentally advantageous. Q. To what degree is environmentalism and social responsibility shaping event dynamics? A. They're a new way of thinking that is necessary moving forward. Getting onboard now and incorporating that philosophy in dealing with employees, clients, and customers is the very beginning of a long line of conscious practices. Recently we were at the Circle-R Ranch in Dallas, Texas, and divided our attendees into teams for a bike build. Each had to assemble, decorate, and market a bike. At the end, we donated all the bikes to a local charity for kids. Increasingly, team-building events—such as ours— are giving back. Q. What do you see in the future for the meetings industry? A. After five to six years of increasing demand, hotels are going to have a lot more availability because of the economic slowdown. Room rates will continue to become more affordable, and planners and companies on the fence about whether to have a meeting will be able to commit. This is a new ballgame, and we all have to come together and meet in the middle for mutual benefit |
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