Recent times have been brought a somewhat tumultuous ride for some drive-to destinations, more like being on a rollercoaster than a solid, steady road.
Just two or three years ago, things were looking pretty good for most second-tier cities that rely heavily on regional, drive-to business.
"When larger cities were experiencing a huge decline, we weren’t seeing that," says Shun Hatten, vice president of sales for the Jackson [Miss.] CVB.
In Spokane, Wash., business was also looking recession-proof.
"Our ideal selling window is about three or four years out," says Keith Backsen, vice president and director of convention sales and services for the Spokane CVB. "When the economy was going well, we did really well in selling ourselves for 2009 and 2010. This year has been one of our best years."
Both destinations even ramped up their group offerings, with Spokane tripling the size of its convention center and Jackson building a shiny new one. The future looked bright.
But as the economy fell, first-tier cities responded by lowering prices well below market expectations.
"The bigger markets are now hunting in our pond," Backsen says. "Recently, we’ve been seeing rates of under $100 in larger cities. Now we know that 2011 will be a tough year for us because business we were having great success with is going to first-tier cities because they can find incredible rates."
Size Matters
Not all drive-to destinations are experiencing a downturn in business, however.
In Amarillo, Texas, Tina Teague, senior convention sales manager for the Amarillo Convention & Visitor Council, cites a different trend. While large meetings are down, there has been an uptick in business from smaller groups driving to the destination.
"Over the past few years, instead of Amarillo being seen as a destination for larger conventions, those groups are staying in international airport cities," she says. "At the same time, we are seeing a lot more small meetings come to Amarillo. We are getting more drive-to meetings than ever before. The number of bookings has gone up, but the size of meetings has gone down.
"For example, we’ve dealt with a lot of Texas associations in the past that did big meetings," she continues. "Now, instead of doing one major meeting, they are breaking down and doing regional meetings."
Tyler James, director of sales for the Fort Collins [Colo.] CVB, says he’s noticed the same shift.
"We really haven’t seen a decline in meetings, just a smaller number of attendees in those meetings," James says. "I keep hearing that there are more and more regional conferences out there instead of national conferences because it helps the bottom line for companies."
Driving Advantages
Cost savings are one of the most prominent benefits of drive-to meetings, according to Maryann Stansfield, spokesperson for the Travel Paso Robles [Calif.] Alliance.
"These days, I think planners are constantly wondering how they can accomplish goals with a smaller budget," Stansfield says. "In today’s economy, drive-to destinations are a much more affordable way of holding meetings. Spending money on gas is more cost-effective than a plane flight."
Along with affordability, destinations that delegates can drive to also rank high on the convenience scale.
"If I am a planner and want to reach a market in Washington, Oregon and Northern California, it is easier to bring them to a central location and do a regional meeting than fly them across the country," says Spokane’s Backsen. "If that meeting was scheduled for Washington, D.C., I would have to fly six hours there and six hours back, which really wastes two days getting to and from the destination.
"Also, going to a regional location means less dead time at the airport, where you are always at the whim of the airline," he continues.
Attendees who choose to drive to regional locations also have the freedom to discover new things, Backsen says.
"Once you get to the destination, you have the flexibility to go out and explore on your own time," he says. "This allows you to get out of the core area of the city and get the flavor of the community."
According to Amarillo’s Teague, regional destinations also work hard to make sure groups feel welcome.
"We treat every group like a big fish in a small pond," she says. "They never get lost here. We really differentiate ourselves by the service we provide."
Backsen offers a few words of wisdom to planners who’ve never considered scheduling a group gathering in a regional destination.
"First off, consider what location would work well for your group," he advises. "Think about where you are trying to draw people from and what location fits that profile."
Then, make sure the destination is alluring, he says.
"A meeting location, even if it is regional, still needs to be attractive enough for delegates to want to come there," he says.
Future Forecast
With first-tier destinations increasingly grabbing a piece of the drive-to pie, what does the future hold for regional destinations? The answers depend on whom you talk to.
"Although some meetings have been going to larger markets, I think it will change again," predicts Spokane’s Backsen. "I think we have another 18 months before larger markets increase their rates. Occupancy is going to go back up, which means they will start leveling off. I can already see it in my sales.
"We are working for the future and booking right now for 2014 and 2015," he continues. "I can see the leveling off in the future."
Fort Collins’ James isn’t so sure.
"It is really becoming a competitive market," he says. "I am afraid that we may see some business go to resort destinations as they become more affordable. You can only go so low in a town. You have to keep the doors open and the value up. It can be a struggle, but it goes back to relationships and added value. You just have to keep plugging away."
Over in Paso Robles, spirits are high.
"People are finding value in saving a buck with regional destinations; now they know a cheaper way to go," Stansfield says. "As the economy comes back, why would they go back to spending more money?"
Also boding well for the future of drive-to destinations is the fact that some organizations prefer to avoid the increasing cost and frustration associated with airline travel.
"We are trying to plan our meetings so that a larger number of our members can drive as opposed to having to fly," says Joe Aldridge, president-elect of Syracuse, N.Y.-based United States Institute for Theatre Technology Inc. "The perception is that it is cheaper to drive than to fly, and it is normally more convenient. With increased fares and charges for luggage and even peanuts, anything associated with flying is expensive these days."
Barrie Perks, vice president of sales and services for the Cincinnati CVB, cites positive drive-to meeting numbers for his city, which he attributes to growing frustrations with airline travel.
"If you look at the airlines, they have cut back on their services," Perks says. "They have increased miscellaneous fees. In addition, the price of gas has gone down. Now, with affordable gas, people are looking at driving as opposed to flying."
Tracy Becker, a Florence, Ky.-based national account manager for the meeting planning firm ConferenceDirect, notes a shift to closer-to-home destinations in meeting segments across the board.
"I’m seeing it in the association, fraternal and SMERF markets," she says. "I am also seeing it in the corporate market, but I think it is all about image for them. I do think they are going to more drive-to destinations."
Becker herself prefers to drive rather than fly on business these days, providing the destination is six hours or less away.
"By the time you go to the airport, park your car, fly, get your car, it is taking you five hours," she says. "If I needed to go to Chicago, even though it is a long drive, I would drive. It is easier to drive than to fly. And who knows about delays?"
Katie Morell is a Chicago-based freelance writer and former Meetings Media editor.
