Released last November, the inaugural American Express Meetings & Events 2012 Meetings Forecast finds meetings demand up around the globe, based on feedback from planners, buyers and hotel suppliers. According to planner survey results from Maxvantage—the strategic alliance between American Express Meetings & Events and Maritz Travel—the North America meetings market, considered “fairly robust in 2011,” is expected to maintain or increase growth in 2012.
Yet there remain yellow traffic lights on the road to recovery, with spend optimization, return on experience concerns and, above all, ROI justification among the primary constraint factors. There is downward pressure on the international market, too, particularly from the worsening Eurozone debt crisis.
As affirmed by the American Express Meetings & Events report, the meetings mandate of the moment is defined by “shorter and smaller” and “closer to home” with “fuller agendas” driving the shorter-haul road (and rail) market. As select CVBs and conference properties in the Northeast told Meetings Focus East though, there is still some work to do in the balancing act between planners’ needs and suppliers’ wants.
Hershey/Harrisburg, Pa.
“Companies are returning to pre-recession travel spending because it makes business sense,” says Sharon Altland, director of sales for Pennsylvania’s Hershey Harrisburg Regional Visitors Bureau. “But what has changed is the level of ROI that companies demand from each trip. Room rates, amenities and activities continue to be important to meeting planners, but travel costs are the biggest concern.”
With affordable accessibility for attendees significantly influencing travel decisions, the Hershey Harrisburg Region, easily reached by road or rail, is an advantageous choice.
“Within three hours of several major metropolitan areas throughout the Mid-Atlantic and Northeast regions, we are ideal for planners,” Altland says.
Key clientele include companies and associations in consulting, insurance, railway, agriculture, manufacturing and government business. The region has remained competitive in the meetings market segment because of the perceived value clients find at venues, attractions and lodging properties when compared to other Pennsylvania regions, such as Philadelphia and Pittsburgh.
“Our attractions, plentiful supply of mostly free parking and other assets contribute to a positive experience for business and leisure visitors alike,” Altland says.
Providence, R.I.
Around 50 minutes from Boston and three hours from New York City, Providence is easily accessible. The city’s Amtrak station, located within walking distance of the Rhode Island Convention & Entertainment Complex and most downtown hotels, also offers commuter rail transportation to Boston and to the TF Green Airport in nearby Warwick, R.I.
“Providence is uniquely situated in the meetings market,” says Kristin McGrath, vice president of sales at the Providence Warwick CVB. “Roughly one-fifth of the U.S. population lives within 300 miles of the city, and with easy highway and rail access, we are a comfortable trip from most major Northeastern cities.”
Providence also provides an exceptional mix of meetings and off-agenda choices.
“While we are considered second-tier, we have the convenience of a smaller, regional destination and the sophistication of a first-tier city,” adds Brian Hodge, marketing and social media manager. “Because our product is so multifaceted, we are able to reach a wide variety of groups.”
Mirroring Boston, Providence is a center of world-class education, including the prestigious Brown University. Top-ranked art school The Rhode Island School of Design and hospitality leader Johnson & Wales University both have museums ideal for off-site gatherings. The Greater Providence area also is home to 5,500 hotel rooms, including 2,200 within a mile of the convention center.
New Haven, Conn.
Established in 1638, historic New Haven—easily accessed by car from I-95, via Metro North (a railroad system connecting New York, New Jersey and Connecticut) or by Amtrak Railway service into Union Station—has been a study in revitalization for the better part of the last two decades.
“As the home of Yale University and several other notable colleges and universities, we continue to be a strong regional draw for the educational, research and scientific group markets,” says Visit New Haven Executive Director Ginny Kozlowski. “These segments are off to a strong start in 2012, typically in the 100- to 150-attendee range.”
The city features 800 recently refurbished hotel rooms in the downtown area alone. Among these, an ideal choice is the 306-room Omni New Haven at Yale. Steps from New Haven’s famed Town Green, the property offers 25,000 square feet of meeting space and 19th floor dining at John Davenport’s restaurant. The hotel is close to many of the city’s museums, restaurants and top-flight theaters.
Suppliers In Demand
Drive-to bookings are on the rise around the Northeast as hotels seek to strategically manage revenue while planners look for value.
Says Susan Corrigan, director of sales at the landmark Inn at Pocono Manor, in Pennsylvania’s Pocono Mountains, “Many planners will request budget-driven contract revisions within a few weeks of arrival in an effort to tighten up total cost.”
Offering 20,000 square feet of meeting space, the 237-room property—within two hours of New York, New Jersey, and Philadelphia—is experiencing an upswing in smaller corporate groups within a 90-minute radius booking short term and incorporating leisure activities into the stay.
“There has been an increase in meetings based out of D.C., Maryland and New Jersey booked with the goal of regaining face-to- face interactions in lieu of Web-driven communication,” Corrigan says. “We offer winter and spring mid-week discounts on meeting space and a highly reduced room rate for groups blocked from Sunday through Thursday.”
“Currently, we are seeing either very short lead-time bookings or long lead-time bookings, but little of the ‘old normal’ 60- to 90-day lead times,” says David Vogt, general manager of the serene 52-room Edith Macy Conference Center in Briarcliff Manor, N.Y. Featuring over 14,000 square feet of meeting space and located 45 minutes north of Manhattan, the Edith Macy is IACC-certified.
Vogt is optimistic about lead times getting longer on the heels of the recovery.
“We were seeing one week to 45-day lead times almost exclusively about a year ago; the return of longer-term planning is encouraging,” he says. “I think that when corporate planners start consistently having difficulty finding space for last-minute meetings, lead times will move closer to historical norms.”
And according to Vogt, meetings bookings are improving.
“We are beginning to see companies searching outside the city again for better value and availability,” he notes.
Located in New Brunswick, N.J., midway between New York City and Philadelphia, the 248-room Heldrich—with 25,000 square feet of meeting space—is seeing corporate planners finalize contractual obligations inside of 30 days, with requests for final counts coming in as late as 72 hours from arrival.
“The majority of our business and group travel market is regional,” says general manager Kevin Herbst. “Even as we learn of corporations lifting travel restrictions on a department-by-department basis, the need to show value-added savings to justify travel and/or conference expenditures is paramount.”
Ed Potillo membership & conference director for the National Alliance of Black School Educators, in Washington, D.C., affirms the value of drive-to, regional gatherings.
“What we are finding now is that many school districts are not allowing for out-of-state travel,” he explains. “Conferences are going to be more palatable to many school districts if their staff can travel by car.”
He adds, “One of our six regions had its first regional conference two years ago, and we fully expect the others to follow as more school districts and individuals stick closer to home.”
Jeff Heilman, a regular Meetings Focus East contributor, is a big believer in return on experience for meetings.
