Scott Shellman & Wendi Haught, CMP
Partners
Framework Meetings & Destinations
Coeur d’Alene, Idaho
Is the duration of your meetings either shrinking or expanding? Why?
Most of our clients’ program lengths have stayed the same. They really haven’t changed the framework of their meetings much. Some clients are holding fewer meetings, but those meetings they’re holding are equal in length.
Is the attendance at your meetings shrinking or expanding? Why?
One of our best clients has experienced record attendance at their 2009 annual conference. Another of our top clients had record demand for the location we were involved with (domestically), however, [they] experienced less demand for their international trip. We are forecasting continued growth in these two programs, as both clients feel that it is imperative that they continue to recognize and reward top performers, as well as showcasing products.
Did you have a smaller budget to work with last year? If so, how much do you estimate it was decreased?
The budgets we worked with were similar to 2008. Budgets haven’t grown, but with most of our clients, they haven’t been decreased either. We’ve been able to negotiate more for our clients with the same overall spend, so their programs have been able to grow in quality with the same spend.
How are possible perception problems affecting your meetings and your planning of meetings?
We’re seeing a focus in second-tier cities, resorts that haven’t typically been considered before, etc., so there is certainly consideration being given to the perception of locations/resorts chosen. On the flip side, one of our clients has taken the downturn as an opportunity to book programs in resorts that they haven’t previously been able to afford, so it has benefitted and hurt some properties based on the make-up of the group.
Are there any destinations or facility types that are now considered “off-limits” due to perception problems or the current economic climate?
Not with most of our clients, however, one of our insurance clients is very cognizant of what type of property they book their program.
Have government regulations or actions affected your programs? If so, how?
Our clients are weary about how much the government may/will regulate their programs. With the government involvement in TARP bailouts, we worry about the regulations and/or actions they may take with regard to meetings and events.
Are you finding that you are scheduling more meeting sessions per day, and if so, is it at the expense of entertainment or events that are more social in nature?
It appears as though entertainment, activities, etc., are being curtailed to some extent and being replaced by more educational opportunities. Golf is down quite dramatically, as is overall company-sponsored activities. We’re seeing more attendee-pay offerings for tours and activities.
Are you scheduling more educational components for your meetings? If so, why?
Yes. With more scrutiny and the fear of retribution from outside forces, there has been more emphasis placed on education and less on tours and activities. Headliner/entertainment expenses are being squeezed as companies look to trim budgets where possible.
Are you incorporating more, or less, activities into your agenda? If so, what types of activities are being added or cut?
We’re seeing a downturn in golf, and for companies still booking golf, they’re often booking a pre/post meeting outing so as to not take away from the available meeting block. We’re also seeing more attendee-pay golf, spa and activity options being offered. Those groups that are still incorporating activities are looking for more experiential activities, service-oriented projects, etc.
Are you finding that attrition clauses are being enforced less strictly? Can you share any comments/observations about this?
Yes. Hotels and resorts have cut us some slack with regard to attrition, as a number of groups don’t know what to anticipate with their attendance because of the economy. We’ve seen some of our clients’ attendance numbers increase, and we’ve seen a higher demand for domestic incentives rather than international trips. With planners and hotels alike worried about over-committing a block, hotels have been more lenient on their attrition clauses.
Do you find that you had much more leverage on room rates during the last year? If so, please give an idea how much discounting you are seeing.
There has been more leverage on value-adds as well as room rates, particularly with upper-tier properties and resorts. Hotels are doing a better job of rate managing, so the available rates shift quite dramatically based on projected occupancy. Groups that have more date and location flexibility have been able to capitalize on outstanding rates. We’re seeing midscale properties being more aggressive with rate management based on projected occupancy.
Are you using social networking websites for business purposes? If so, which ones and why?
Yes. Twitter, Facebook, LinkedIn. These are a great way to let others know more about your business, what programs you’re working with, as well as networking with potential clients and suppliers. This is a networking business, so the more exposure you have the more your name gets into the hands that can benefit your business, as well as solve their needs.
Are you taking less (or no) FAM trips? If so, why?
We do FAM trips when it makes sense for our clients. We rely on them to know what a property is capable of from a service, cleanliness, maintenance, food & beverage, etc. standpoint. Photos can be doctored and they don’t give you the intrinsic “feel” of a place, so FAM trips are very beneficial.
How do you think 2010 will shape up for the meetings industry? Where do you see costs (hotel restaurant, venue prices, etc. ) going? Do you think your budget and/or attendance will increase or decrease? Why?
I think rates will flatten overall, but for groups that are flexible with dates and location, there will still be wonderful opportunities to enjoy hotels and resorts that may have been out of reach in the past. I believe hotels, restaurants and venues will continue to battle for business as the market slowly and cautiously begins to return. There will be a new “normal” with more scrutiny given to program costs. I think budgets and attendance will both be flat, with only essential personnel in attendance to help keep costs minimized.