Jan 23
Ashley ChalmersNews Associated Luxury Hotels, economy, meeting industry
Please enjoy the following guest post from our friend and member Dave Gabri, President and CEO of Associated Luxury Hotels International!
Understandably it can be easy to get discouraged lately, if you watch the evening news or the Sunday morning news talk shows.
We were optimistic that the tiresome onslaught of negative economic news was behind us. After all, we have definitely seen positive signs in our meetings demand that business is back in the “business of business,” which includes an impressive growth in demand for face-to-face meetings.
But the recent stories about the latest challenges to the economy and markets could make you feel like everyone should hunker down and not spend a nickel.
Before reacting too quickly to change course, and cut meeting and incentive program expenditures which are needed for the developmental success of your organization or business, you should take a step back and analyze what we learned from the recent economic downturn of ’08 and ’09, even if we haven’t yet seen the “full” recovery. For one, we now realize the quantifiable value of in-person meetings, as it has been documented by intense research.
While business leaders have always intuitively understood and appreciated the value and benefits of face-to-face meetings and incentive/recognition travel programs for years, we now have the research to prove it. Studies like the “Return on Investment of U.S. Business Travel” by Oxford Economics show the indisputable value of meetings.
Quantifiable Value of Meetings
As you may recall, the authoritative study, conducted by a respected economic analysis firm, found that face-to-face meetings allow customers to convert 40 percent of prospective customers, versus just 16 percent without such a meeting. In addition, the average company generates 5 to 20 percent of new business through conference and trade show attendance.
The study also identified that each dollar invested in business travel (including meetings) drives approximately $12.50 in sales and $3.80 in profits. Furthermore, the average business would forfeit 15 percent of its profits in the first year of eliminating business travel, and it would take three years for profits to recover.
Additionally, the study found that 85 percent of the corporate executives surveyed perceive Web meetings and teleconferences to be less effective than in-person meetings with prospective customers, and virtually 63 percent believe virtual meetings are less effective than in-person meetings with current customers.
When it comes to incentivizing the achievers, companies now know they would need to increase an employee’s base compensation by 8.5 percent to achieve the same effect of incentive travel, but then would not capture the allegiance generated through incentive travel programs.
More Proof
A survey published by Harvard Business Review entitled “Managing Across Distance In Today’s Economic Climate: The Value of Face-To-Face Communication” provides additional verification. It found that 79 percent of the respondents said “face-to-face meetings are the most effective way to meet new clients to sell business,” while 89 percent said “in-person meetings are essential for sealing the deal.”
Also, a recent study by the Cornell Center for Hospitality Research found face-to-face meetings enhance attention, trust, empathy, social networks, and mirroring (such as responding to body language). The research also found that in-person meetings are better at inspiring a positive emotional climate, and for relationship-building.
So look at the big picture, rather than just these sensational headlines, to see what is in your organization’s or company’s best interest. Certainly a leadership lesson learned from ’08 and ’09 is that in order to keep the boat steadily moving forward, meetings make a difference to advance our objectives. So rather than retreat, forge ahead!
Sep 08
Ashley ChalmersNews, Tips for Meeting Planners economy, per diem
These new rates, announced by the U.S. General Services Administration (GSA), are for non-standard areas (NSAs) of the continental United States, and are in effect October 1, 2011, through September 30, 2012.
The complete FY2012 rates can be viewed at the GSA per diem website.
Highlights:
• The standard continental United States (CONUS) per diem rate for lodging applies to destinations that are not listed as specific destinations remains at $77 per night.
• GSA noted that its data shows that the ADR for hotel rooms has not yet returned to its pre-2008 levels and that while some areas have increased, others have remained flat or fallen below FY2011 levels.
• Of the NSA rates that did change from FY2011, most rates did not increase or decrease more than $5.
Information courtesy of the American Hotel & Lodging Association.
May 17
Ashley ChalmersPlaces to Stay economy, guest-friendly hotel tips, hotels, meeting ideas, meeting planner feedback
Room rates are creeping back up – or are they?
Smith Travel Research data from January shows that urban hotels at 66% occupancy while suburban hotels are at 58%.
As a result, urban hotels are offering fewer discounts for rooms – but suburban property rates are still lower than 2009 levels…which is shifting the demand.
Are you booking more meetings in the suburbs to secure lower rates? Have you experienced higher rates in urban areas?
Feb 17
Ashley ChalmersNews economy, Face to Face Meetings, Keep America Meeting, meeting industry
Meetings Mean Business, along with the Convention Industry Council and PwC US, has just released a study:
The Economic Significance of Meetings to the U.S. Economy
The study reveals that the meetings industry directly supports:
- 1.7 million jobs
- $263 billion in spending
- a $106 billion contribution to GDP
- $60 billion in labor revenue
- $14.3 billion in federal tax revenue
- $11.3 billion in state and local tax revenue
This is the first study ever to truly measure the economic impact of meetings to help the industry tell the story about the value of meetings to policymakers, the business community, and the public.
Katherine Markham, CHME, our Co-Founder and Principal, attended the press conference today on the study.
She says:
“The best thing about the study is that it shows how critical meetings are at a time when our recovery depends on steadily increasing business activity.
“Fortunately, we are seeing a steady recovery in the meetings industry. The fact that this study measured data for 2009 – one of the toughest years for the meetings industry – shows that meetings are an even greater force in the economy than most people realize. The data for 2010 and beyond are no doubt even stronger.
“As meeting professionals move into the future, they are also depending even more on technology to help them plan meetings, and that’s where ConventionPlanit.com helps them with our online search directory. By connecting meeting planners to hotels and meeting venues as rapidly as possible, we hope we are doing our part to help speed the recovery and book more meetings for the future.”
To learn more, read the full study. What do you think the survey means for our industry?
Jan 20
Ashley ChalmersPlaces to Stay, Tips for Meeting Planners economy, guest-friendly hotel tips, Hilton, Marriott, sheraton
With the New Year underway and the holidays behind us, we return to our normal routines (and perhaps also to the gym) and start planning meetings!
Many ConventionPlanit.com member facilities and destinations offer special meeting discounts for meeting planners.
Here are a few of the best early 2011 deals:
Bay Point Marriott Resort & Spa – Panama City Beach, FL
“Perk” up your meeting at the only Marriott Resort in NW Florida.
Sign up for 100 room nights or more by January 31, 2011 for meetings held on or before December 31, 2011 and choose from the following:
100– 199 total room nights: Choose ONE perk
200– 299 total room nights: Choose TWO perks
300+ total room nights: Choose THREE perks
Perks Include:
•1 hour welcome reception (chef’s choice) 15% savings on banquet pricing
•A one year Marriott Platinum membership for meeting planner or designee
•3 complimentary room upgrades to Bay view rooms or one bedroom Golf Villas
•1 complimentary foursome on the Meadows or Nicklaus Design Course
•1/35 comp policy
•10% savings on individual spa services
•25% allowable attrition
•Complimentary continental breakfast on opening day of scheduled event
•Complimentary use of the fitness center at Serenity Spa
Hilton Minneapolis St. Paul Airport Mall of America – Bloomington, MN
Events booked to take place between now and March 31, 2011 receive special rewards:
10-50 room nights: pick one
51-100 room nights: pick two
100-200 room nights: pick three
Rewards Include:
•Complimentary Wireless internet in guest rooms and meeting space
•Complimentary 1 hour Cocktail Reception
•25% off Audio Visual
•500 Hilton Honors Points per guestroom utilized
•Complimentary Company Logo Waterfall Display
•Complimentary Afternoon Refreshment Specialty Break
•Fast Track to Gold or Diamond Hilton HHonors Status
Sheraton Bucks County Hotel – Langhorne, PA
Meetings that book and are consumed in January – February 2011 will be eligible for the following:
Book $50k: 42″ Flat Screen TV
Book $25K: Apple iPad
Book $15K: Welcome Reception
Book $5K: $250 Amex Gift Card
Some minimum requirements and apply for the above offers. To learn more about these special offerings and other great deals visit Divine Deals on ConventionPlanit.com!
Jan 11
maureen-pickellTrade Shows attendee interaction, economy, meeting education, meeting industry, pcma
After being treated to a rousing Four Seasons “Jersey Boys” medley at 8:30 am (a bit early to deal with “Big Girls Don’t Cry” in a piercing falsetto – but fun anyway!) the day began with the strategic plan for PCMA 2011 and awards.
Some insider information to share with ConventionPlanit.com followers: the most recent Economic Impact Study of our industry will be released by mid-February and word is that the results are very positive.
According to Deborah Sexton, President and CEO of PCMA, we’ve moved from “cautiously optimistic” to “optimistic” with more meetings being booked in a “reset” environment. No more business as usual…but business will continue to improve.
The first full day was packed with sessions that were varied and insightful…beginning with the general session and moving through the myriad of educational break-outs.
Let’s have some fun and play a matching game!
The left column contains quotes from several sessions…match them up to the session titles in the second column. (Answers will appear in my next blog post.)
| Session Quotes |
Session Titles |
| The event industry is the 2nd highest generator of waste today. |
Opening General Session: Tightrope to the Top; Learning the Language of Success |
| Women now outnumber men in the workplace for the first time in history. |
Using Technology for Green Events |
| Over 40 countries are in attendance at the PCMA “Convening Leaders” Conference. |
Global Meetings: The Benefits of Working with a PCO |
| Six factors that a local partner can help contribute to a successful global conference: political, reach, scientific, legacy, emotional, and financial. |
Opening Session: Configuration of PCMA Meeting Attendees |
—————
PCMA will move forward as an industry vanguard by mingling face-to face and virtual to create the hybrid experience necessary to stay ahead of the curve.
By soliciting the input of New Professionals, expanding the International Membership and encouraging student involvement, the organization is concentrating on their member centric strategic plan.
Add on the recent partnership with the Virtual Edge Institute and we see that PCMA is not content to sit on its laurels…
…the organization is ready to help take its membership into the next era of meeting management.
Getting ready for tomorrow and more “serious business” of meetings. And in Las Vegas…who knew??
Aug 31
Ashley ChalmersNews, Places to Stay economy, hotels, meeting industry, per diem rates
The new fiscal year per diem rates were announced yesterday by the General Services Administration (GSA):
Rates Start: October 1, 2010
Rates End: September 30, 2011
The standard Continental United States (CONUS) per diem rate increased to $77 per night.
GSA reported the average daily rate (ADR) for hotel rooms is down 5.73% from fiscal year 2010.
There are several non-standard area lodging rate changes that have been reduced, making them more affordable to visit:
• New York City (Manhattan) fall high season: reduced to $269 from FY2010 $340
• Colorado Springs: reduced to $84 from FY2010 $88
• Las Vegas: three seasons reduced to one, rates down from FY2010 high of $118 to $93
• Miami, Fla., for the Miami-Dade area mid-season: down to $151 from FY2010 $152
• Chicago, Ill., early summer area high season: reduced to $166 from FY2010 $211
• Charleston, SC: down to $132 from FY2010 $142
• Los Angeles, Calif.: reduced to $123 from FY10 $135
• Kansas City, Mo: down to $99 from FY2010 $107
• Cincinnati, Ohio: unchanged from FY2010 at $115
• Seattle, Wash: reduced to $139 from FY2010 $159
How these rate changes affect your planning this fall?
Aug 24
maureen-pickellTrade Shows ASAE & the Center, economy, meeting industry
Second day of the ASAE Expo.
Haven’t seen any celebrities..unless you count the famous meeting planners who have stopped by the ConventionPlanit.com booth to view the website.
General sessions have been very creative with yesterday’s offering attendees a special screening of their very own sitcom…”Guilt By Association.” Humor abounded in a storyline that followed the trials and tribulations of association execs. studying for a CAE exam. As you can imagine, this is a topic that can be mined for lots of laughs:)
There are always quotes galore at a state of the industry breakout session…my favorite so far is this bit of enlightment:
“We have data indicating that things could turn around – provided they don’t get worse.”
See you tomorrow…
Aug 03
Ashley ChalmersTips for Meeting Planners air travel, economy, meeting ideas
While some airlines have dropped out of the meetings business, others haven’t. Those that remain – including American, Delta, and Continental – each have special offers.
Become familiar with these group programs, which can save a significant portion of your budget:
American Airlines
Groups of 10 or more traveling to the same destination can take advantage of special discounts. If travel dates are confirmed, the airline can guarantee a fare up to 11 months in advance, block the space, assign seats, and delay ticketing requirements. American also guarantees competitive fares from different geographic originations to one destination.
American Airlines destinations include more than 250 cities in 40 countries where American, American Eagle® and AmericanConnection® fly across the country and around the globe. The airline is also a member of the oneworld® Global Alliance and can arrange group travel discounts to more than 700 destinations in the oneworld network.
Groups can also receive reduced rates for Avis® car rentals. Click here for more information.
Delta Air Lines
Through its Delta Meeting Network®, this airline offers discounts off published fares and competitive Zone Fares for groups of 10 or more on all Delta, KLM/AirFrance and Alitalia “Delta coded flights”, Delta Connection Carriers and “Delta coded” code-share partners AT/OK/UH. Discount rates can be used three days before/after a meeting for events in the United States and Canada and up to seven days before/after a meeting in all other countries.
Discounts can be based on single events or multi-meeting agreements. Delta also awards one free ticket for every 40 tickets purchased. Zone Fares offer flexible rules and make it simple to manage airline costs.
With its unsurpassed global network, Delta and the Delta Connection carriers offer service to 369 destinations in 67 countries on six continents. Click here for more information.
Continental Airlines
Continental’s GroupWorks program offers special benefits for groups of 10 or more passengers traveling together. GroupWorks provides a flat rate for the group, priority check-in, priority boarding, and priority baggage service.
Continental’s MeetingWorks program offers special discounts to attendees of conferences, meetings, or events with 20 or more passengers traveling from multiple origins to one destination. MeetingWorks provides percentage discounts off airfares and credits redeemable for travel certificates, upgrades, and more.
Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,600 daily departures throughout the Americas, Europe and Asia, serving 132 domestic and 137 international destinations. Continental is a member of Star Alliance, which overall offers more than 21,200 daily flights to 1,172 airports in 181 countries through its 28 member airlines. With more than 40,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.
Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For nine consecutive years, FORTUNE magazine has ranked Continental as the top U.S. airline on its “World’s Most Admired Companies” airline industry list. For more information, click here.
Apr 06
Ashley ChalmersNews, Places to Stay economy, Face to Face Meetings, Five Star, meeting industry
Last week I read an interesting article by David Wilkening of TravelMole. I’ve including some of the key points of the article for those who would prefer not to subscribe.
The AIG effect, which caused many luxury hotels to be hit financially with millions of dollars in cancellations, seems to have released its hold on the industry.
Smith Travel Research predicts in 2010, top tier hotels will be the most successful. In fact, STR reports that the luxury sector has experienced an 8% growth over the past few months.
The article quotes Greg Champion, CEO of Benchmark Hospitality:
“Everyone talks about the AIG effect, but there are a lot of planners out there who say ‘If I can stay at a five-star for the same price as a three-or-four star, why wouldn’t I do that?”
In 2009, many of the planners using ConventionPlanit.com told us they could not consider luxury properties for their meetings. In the past few months, we’ve seen a renewed interest in higher-end properties.
These brands have also been offering meeting planners extra amenities, discounts, and meeting space at no charge to secure their business. (Check out the Divine Deal section of CP for current offerings).
While many meetings were cancelled or postponed last year, things seem to be looking up. The mantra for 2010 seems to be meetings will be held – with a solid value and purpose.
Have you experienced this trend in your own planning? Where are you holding your meetings and why?
Luxury hoteliers – has your meetings business increased? What do you attribute it to?
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