While corporate retreat business took a major hit last year, things are now looking better for the executive meetings market all over the Midwest.
"We are up 140 percent over last year on our corporate bookings, which we consider corporate meetings and executive retreats," says Pete Zellmer, general manager of Lake Lawn Resort in Delevan, Wis. "We really started to see an uptick in bookings in April and May of this year. Then we started coming into our own in June, July and August."
As the economy took a nosedive over the last few years, planners shortened lead times. According to Zellmer, they are now heading in the opposite direction.
"When the economic downturn hit, a lot of bookings were done within 30 to 45 days," he says. "Now the lead time has expanded to 60 to 90 days. It is going back a bit and we are cautiously optimistic."
Business is also coming back at Mission Point Resort in Mackinac Island, Mich.
"When I look at our group business this year as compared with last year, we are up 28 percent," says David Hume, director of sales and marketing for Mission Point Resort. "We are getting to the point where we are not quite normal, but getting close."
In Galena, Ill., Eagle Ridge Resort & Spa is another property benefiting from retreat bookings.
"We saw a huge drop in 2009 and I think executive retreats were almost taboo in early 2010, but they are making a comeback," says Randy Whiteside, director of sales and marketing for Eagle Ridge Resort & Spa.
The Shift
Why the change?
"People have figured out that they definitely have to meet," Zellmer says. "They can’t keep pushing it off. They need to get out of their normal setting and go to a place that promotes creative thinking."
Sean J. Mahoney, president of SITE and global vice president of corporate and incentive sales for Fort Lauderdale, Fla.-based Silverseas Cruises, says concerns about perception issues have lessened in recent months.
"There are those companies who are a little leery about luxury spending, but people aren’t talking about perception issues as much anymore," he says. "They are just talking about the overall economic environment, and global economic data says it is improving."
Mahoney says companies are beginning to request proposals for retreats again and are laser-focused on event measurement.
"Whether it is return on investment or return on objectives, everyone is measuring," he says, adding that while the executive retreat market is picking up, events aren’t as lavish as they used to be. "Many companies are still avoiding bling. They may go to a five-star property, but they are not bringing in amazing linens and decor for the event. They are cutting out frills."
Retreat Changes
While retreats may be coming back, they are structurally different than in years past, according to Zellmer.
"Planners are more budget conscious than ever, so they are maximizing their time here and minimizing their stay," he says. "Previously, meetings could come in on a given night, meet for the next two days and then depart at noon. Now they are coming with a half day on the front end and working until 5 p.m. on the backside instead of departing at noon. They are getting the maximum time spent meeting as opposed to time spent traveling."
In addition to shortening time at resorts, Mahoney says companies are now mixing meetings with retreats.
"I think companies are trying to maximize time and resources, so they are often combining meetings," he says.
Another significant change in the retreat realm is the growing need for CSR (corporate social responsibility) activities, Mahoney says.
"There is a growing role of CSR," he says. "In general, whether you are looking at an executive retreat or an everyday meeting, more companies are looking to incorporate CSR components as a way to give back. For example, I was just at a small business meeting in Minneapolis where we adopted a school for low-income children. We bought book bags and school supplies and spent time stuffing the supplies into the book bags."
Mahoney predicts that CSR will become even more important to meeting itineraries as time goes on.
"It is definitely going to continue in the future," he says. "If you are a supplier or destination and CSR isn’t part of your brand message, it will need to be soon."
When meeting for an executive retreat, delegates are interested in a variety of activities, says Liz Jordan, director of sales for Honey Creek Resort State Park, a property that opened in September 2008 in Moravia, Iowa.
"Golf is one of the primary activities that executives like to do," she says, adding that the property’s Preserve golf course was on Golf Digest’s top 10 list of best new public courses for 2009. "Groups are about 30 percent of our business and we’d like to bring that up to 50 percent. I’d say executive retreats are about 10 or 15 percent of our group business. Many of them like that we offer geocaching [a high-tech scavenger hunt] and boat rentals at our marina."
Over at Wilderness Territory/Glacier Canyon Lodge in Wisconsin Dells, Wis., retreat business is booming and team-building activities are on the top of companies’ lists.
"We really haven’t seen any type of decline in our business," says Shannon Timmerman, CMP, senior sales manager for Wilderness Territory/Glacier Canyon Lodge. "A lot of our groups are training meetings during the day and retreats in the evening. Over the past two years, we’ve been getting more and more questions about team building. It seems to be what everyone wants to do, so we recently added a zip line canopy tour, which is a lot of fun.
"We also have Go Karts and mini golf and can facilitate photo scavenger hunts and wine tasting events."
Future Forecast
The future is bright for executive retreats, according to Zellmer.
"2009 was a very tough year," he says. "At the end of 2008, I think people were just holding on. They would start enquiring about availability, but never pulled the trigger. Now, from our standpoint, we are having the best summer we’d had in five years.
"We are optimistic that we will continue to see this trend," he continues. "I don’t know what will happen next year and some companies are still waiting and holding off, but I’m optimistic."
SITE’s Mahoney also sees a bright future for the market segment.
"In the next couple of years, we are likely to see an increase in corporate retreats," he predicts. "I think that will be because many executives will need to get together and talk about how they function in this new business environment and economy—especially after all of the restructuring and consolidation we’ve seen. Those are the kinds of meetings you can’t do virtually. And on the bright side, all of those changes are going to lead to more meetings." MA
Katie Morell is a freelance writer based in Chicago. She misses the days when the likes of Elton John would perform at cocktail receptions and selfishly hopes they come back again someday. For more information, visit www.katiemorell.com.
www.katiemorell.com.
