While many attendees like to see the word "golf" on the meeting agenda, economic changes in the past year have affected time on the greens in a big way.
"It has been a very unique year," says Linda Alloco, director of group sales for Crystal Springs Resort in Vernon, N.J. "The whole industry has been down in both meetings and golf. They really go hand-in-hand in the group business."
According to Alloco, association meetings have stayed consistent with previous-year levels while corporate golf business has taken a nosedive.
Pete Zellmer, general manager of Lake Lawn Resort in Delevan, Wis., agrees.
"Corporations are still a little nervous," he says. "Any way you look at it, corporate business is still down and it has not rebounded yet."
In recent times, some corporations have grown skittish about resorts, fearful of evoking images of executives tanning themselves poolside while sipping cocktails on the shareholder’s dime. As if the AIG bailout last year wasn’t enough to evoke strong emotion, the company’s executive spa retreat at a resort that followed did nothing but damage to so-called extraneous meeting spending.
"When AIG was caught doing their spa meeting, it caused such a flap in the industry, it sent a lot of planners reeling," says Steve Solberg, CEO of PCH Hotels & Resorts, owner of several Alabama golf resorts. "It wasn’t as much a money issue as a perception issue."
Properties around the country are still feeling the effects.
"I call it the ‘AIG factor,’" says Jennifer McNally, director of sales and marketing for The Wailea Golf Club in Maui. "There are groups that moved away from golf, specifically in 2008 and 2009."
The Lansdowne Resort in Lansdowne, Va., has also seen a dip in demand for golf.
"Incentive groups have even turned events and retreats into strategic planning sessions," says Bree Benson, Lansdowne’s director of conference services. "Many have cancelled ancillary activities because of the economic climate."
At the same time, lead times for both meetings and corporate golf events are shorter than ever before, he adds.
"We’ve had some significant tournaments and meetings pop up a week out," Benson says. "We recently attracted a tournament—they called us up on Thursday and were on the course on Monday. We see a lot of that."
Alloco at Crystal Springs has a similar observation.
"Lead times are more different than ever," she says. "You just never know what to forecast; you just hope for pick-ups. The forecast is right out the door."
Fortunately, the struggling economy hasn’t affected all properties negatively. In fact, some even say the country’s financial woes have boosted business—primarily due to travel restraints.
"Our group business has increased approximately 28 percent from last year," says Adina Cloud, director of sales for French Lick Resort in French Lick, Ind. "We’ve seen many corporations that have traveled to farther locations in the past now looking at places within a day’s drive to help them with their cost. We’ve found that we have captured some of the business that we didn’t have before.
Stonewall Resort, located in Roanoke, W.Va., also benefits from drive-to business.
"We are within a 20-mile drive of a large population, so rather than take a flight, we’ve been a great choice for planners," says Steve Ludwig, Stonewall’s director of sales and marketing. "Has the economy affected us? Yes. Have we been about to weather it better than some of our competitors? Yes."
Creative Cajoling
How have meeting planners navigated through perception issues to quench attendee need for time on the greens? It all comes down to creativity.
"One trend that I’ve definitely seen this year has been groups moving away from a hosted golf event," says Wailea’s McNally. "So I’ve come up with special booking codes for groups. For example, if a group has 500 people and they have a heavy percentage of golfers in the group but can’t appear to have a golf tournament, I will set up a special booking code so we can still pass on attractive rates to the participants.
"Everyone will get a $500 to $1,000 credit to their guest room and they can do with it what they please. I’ve been working with a lot of meeting planners on that. That way they can still offer activities to guests but not have them as an organized event."
Another popular way around perception issues is to partner with sponsors to raise money for charity through golf events.
According to Lansdowne’s Benson, groups often bill attendees for green fees.
"There are people dropping golf for perception issues, but there are also some that have added golf for a charity—team building for a greater good," Benson says. "For tournaments, players are paying the company for participation and then the company is donating all or most of the money to charity, less our fees."
Money Matters
Jaw-dropping deals and inventive packages have allowed penny-pinching planners to still organize golf events for groups.
"We’ve started including value-adds," says Bob Nuttelman, director of golf at Coeur d’Alene Golf & Spa Resort in Coeur d’Alene, Idaho, explaining that the resort offers a golf simulator. "We are throwing that [simulator usage] in. Normally we would charge to do that program, but now it can be included in the package for free. We will also have cocktail parties at the simulator as part of a group’s package. Beyond that, sometimes you have to go for straight discounts."
PCH’s Solberg is also among resort operators who have been cutting deals.
"Most savvy meeting planners expect a deal," he says. "That is pretty much a given because there has been so much availability. We’ve offered all kinds of incentives such as the best room rates in 10 years and we’ve discounted golf. We’ve even included golf as part of the room rate."
Lansdowne Resort, a property offering a 45,000-square-foot conference center, regularly puts together hotel/meeting space packages for planners, but with the struggling economy, those packages have gotten even better.
"We’ve taken that packaging and bundled in extra services like transportation and golf," Benson says. "With the extra little kickers, it has helped raise awareness of our golf courses to groups who wouldn’t normally use them. Instead of being spelled out in the final invoice, golf is included in the CMP. We started this in July and it will run through March 2010. It is essentially an appetizing CMP rate that includes additional adds. And it is less expensive."
Another way to get around high golf prices is to book shorter events in the off-season, says Lake Lawn’s Zellmer.
"We see groups cutting down to nine holes," he says. "That way they are doing their work and it gets them out for a little bit. They will also move to the shoulder season to save money; looking more at May and September time frames.
"Also, with the economy, people are time-poor and sensitive to not taking people away from their families on the weekends. You take companies that may have wanted to golf on a Saturday, but now they are coming in for a meeting that goes from Monday to Wednesday. They are restricting the days they do their meetings."
Other cost-cutting measures include reducing attendee numbers and eliminating product add-ons.
"Attendance is down," says Coeur d’Alene’s Nuttelman. "And instead of giving attendees things such as t-shirts and golf balls, they are giving them experiences [only]."
Instead of straight golf tournaments and scrambles, properties and planners are changing the way they look at golf to make the activity more inclusive.
"Groups are trying to make the most of the money invested," says Wailea’s McNally, adding that several groups like to participate in "fun contests and different elements on the courses with the end goal of making sure everyone is together out there."
She says one popular option is to use coupon books for each participant to use on the course.
"One time you can throw, toss or kick your ball," she says. "One is to get out of a sand trap. One is where we have two pros on the course and a pro will hit your shot for you."
Dawn Ramsey-Jacobsson, director of sales for Cranwell Resort, Spa and Golf Club in Lenox, Mass., says she often works with planners on golf alternatives.
"One of the things we’ve seen a lot recently is rather than doing a full golf tournament, groups are doing other activities that are still golf-related," says Ramsey-Jacobsson, adding that night golf is a popular option. "After a meeting, groups will have dinner and then go out with glow-in-the-dark balls and light-up tees to play games like ‘longest drive’ and ‘closest to the pin.’
"It is a lot less expensive to do that than a full-blown tournament, and attendees who don’t play golf can still participate in those sorts of things."
‘Green’ Alternatives
You don’t need to be holding a nine-iron to step onto a golf course. Many properties use their fairways and putting greens for non-golf activities.
Wailea Resort is one such location. According to McNally, each Wednesday through Sunday in June the resort shows films on the Wailea Gold and Emerald golf courses.
"We are home to Celestial Cinema," she says. "People bring blankets and beach chairs and watch premiere-type films. Sometimes it is the first time they’ve been screened. It is an amazing setting."
McNally says the resort has also hosted concerts on the green.
"We’ve done jazz under the stars; we’ve had the Bare Naked Ladies and Seal here, too," she says.
Even if a property doesn’t host events on-course, planners can usually find venues overlooking the green for group gatherings.
"We have many groups who will have a day of golf and then a sunset cocktail reception overlooking the golf course at the clubhouse," says French Lick’s Cloud.
Lansdowne Resort offers something similar.
"We have a lot of great outdoor space that is situated around the course," Benson says. "We have an outdoor pavilion on the course and a back terrace facing the driving range. Groups will have some driving range time while there is a cocktail reception on the terrace.
"It is a nice stress reliever after a meeting and is relatively inexpensive. You are not committing a full five hours and 18 holes, but you are giving people something physical to do."
The Value of Golf
Why incorporate golf into a meeting?
"It gets the brain juices flowing," McNally says. "You get that one-on-one experience. There is also a team-building aspect and competition can be good for a group. You can also get to know people on a real-person level—even executives. If you play a game like ‘beat the CEO,’ the CEO gets quality time with his or her employees."
Lake Lawn’s Zellmer says there are many benefits to golf.
"It can clear your head and promote creative thinking for meetings," he says. "They come back more laid-back; everyone is not so tense. Then, in the meeting room you see higher morale and more active participants. They are more interactive after golf. A lot of business gets done out there, too."
French Lick’s Cloud says the proof is in client testimony.
"I’ve had clients tell me, ‘We can get a lot more done spending five hours on a golf course than sitting in a meeting room,’" she says. "It gets them thinking out of the box."
Cranwell’s Ramsey-Jacobsson and PCH’s Solberg both think golf is highly beneficial to meeting attendees.
"Everyone has been so stressed out this past year," Ramsey-Jacobsson says. "It is beneficial to provide something fun for attendees to do."
"If you want to get four people together for a four-hour stretch, golf is such a great experience," Solberg says."
Looking Ahead
What does the future hold for golf meetings?
"We feel good about 2010," Coeur d’Alene’s Nuttelman says. "We are getting the return of some groups that we lost."
Wailea’s McNally agrees.
"Next year, in terms of what I’m getting for inquires, is looking positive," McNally says. "That includes groups that may have skipped 2008 and 2009. They are coming back into the fold. I don’t think next year will be as strong as banner years, but we are slowly starting to see that positive move forward."
PCH’s Solberg says business has picked up recently.
"Companies are again booking meetings that include golf," he says. "Many companies had directives that they couldn’t use resorts. That has freed up a bit."
Scott Purpura, director of golf for Lansdowne Resort, thinks golf will come back, but not in full force quite yet.
"I think it will continue to be short term for a while," he says. "There will continue to be pressure on rates to come. But golf will come back as people stop fearing as much for their jobs."
Katie Morell is a Chicago-based freelance writer and former Meetings Media editor. Her most significant golf-related achievement was getting a hole-in-one on a put-put course at the ripe old age of 12.
