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Buyer Beware

These days, when every dollar seems to count more than ever, there are many ways that meeting planners can put together meetings and trade shows for the right price—without attendees knowing the amount of cost cutting involved. And for some, that extra effort to create value allows for creativity.

“The keyword is flexibility,” says Jerri Lane, senior vice president, sales and marketing of the Seattle CVB. “The second keyword is imagination.

“If you are set up to incorporate both elements,” she continues, “there’s opportunity to have a wow factor without spending a lot.”

Creating a meeting of value begins with scheduling and site selection. Planners can find off-season rates to suit their event someplace in the West just about any time of year, if they’re flexible on location. In Palm Springs, May through September are the bargain months—without the soaring temperatures of summer.

April is another time of value in the destination, says Rob Osterberg, director of sales of the Palm Springs Desert Resort Communities Convention and Visitors Authority.

“Coachella [the Coachella Valley Music and Arts Festival] and Stagecoach Festival music events impact the properties severely during the Thursday to Sunday time frame during April, so they need more business Monday to Wednesday,” he says.

Although April weekends are particularly impacted, Osterberg says that Sunday through Thursday is always a need period throughout the year.

In Scottsdale, Ariz., where similar bargains can be had from May through December, Kelli Blubaum, director of convention sales and services at the Scottsdale CVB, recommends choosing properties that aren’t as famous as some of the resorts but are, as she says, “packaged very nicely without the extra fees.”

For example, she suggested the Chaparral Suites, which sits on the edge of downtown.

“The hotel offers free airport pickup, full breakfast and a manager’s cocktail hour,” she says.

The choice of destination can have a dramatic effect on a bottom line.PageBreak

“These days, more and more planners are taking a look at second- or third-tier cities that aren’t necessarily on a common rotational pattern for groups,” says Michael Smith, vice president of convention sales for Travel Portland. “Second-tier destinations offer new and exciting things for delegates at a reduced rate.”

Flexibility can translate into major savings for citywide meetings.

“Ask people what opportunity patterns might be a bit difficult to fill,” advises Seattle CVB’s Lane. “Convention centers backfill their [calendars] with catering events, but if you can adjust to fit those need dates, you’d be amazed at the savings you can find.”

Tasty Deals
There’s also always room for savings in F&B. Instead of a full bar, experts advise planners offer a wine-tasting experience; especially when meeting in destinations near wine-growing regions. They also suggest partnering with winemakers.

Another way to save money on F&B is to avoid bottled water.

“Many hotels will put out bottled water for their group,” says Tiina Freeman, director of communications and events for the Seattle-based Northwest Wall & Ceiling Bureau [NWCB]. “I tell them we’ll use pitchers.”

Planners can save money on entertainment by booking locally.

“Work with the local CVB for local entertainment,” says Travel Portland’s Smith. “Every city has musicians that, granted your attendees may have never heard of, but they’re great. And most local bands are significantly less expensive than national acts.”

The same goes for speakers.

“Talk with the local visitors and convention bureau and find local speakers,” says NWCB’s Freeman. “Using local speakers will save travel costs. You can also contact local universities that have a speakers bureau.”PageBreak

Hidden Costs
Another thing to consider during the site-selection process is taxes.

“Watch out for the tax structure, because that can add a lot to the cost,” says Travel Portland’s Smith.

Transportation and the need for busing is another expense that may play a role in the site-selection process.

“In Portland we have a free MAX (light-rail) system and delegates can use it get to most of the hotels and venues,” Smith says.

Some groups, he notes, such as the Barbershop Harmony Society [BHS], come to Portland thinking they need to organize transportation and realize it was a mistake to do so.

The first time the BHS came to Portland, it put together a $250,000 budget for its 12,000 attendees. After the second day the buses were empty because the delegates had discovered MAX.

“They would sing on the buses and entertain people and have fun, so this year when they come, they won’t do any bussing,” Smith says.

Trade show organizers have found many ways to save money.

“Trim carpet or hard wall wherever they’re not imperative in favor of bare floors and pipe and drape,” says Cindy Cohn, show director of the Long Beach, Calif.-based Specialty Coffee Association of America.

The bottom line is to be proactive, she advises.

“When it comes to staying in—or under—budget, I’m extremely conservative and tend to budget 10 percent less than what the price should be on each and every line item,” she says. “There are always parts where even the slightest bit can be cut, and to the extent that savings can be achieved in more than a few areas, these tend to add up to meaningful savings,” Cohn says.

 

Judy Jacobs is a San Francisco-based travel industry writer.

 

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Judy Jacobs