Top 10 Ways to Save Your Meeting

Recession. Economic downturn. Depression. Buzz words like these have permeated the media and our industry recently, scaring many companies into retreat when it comes to holding important business meetings and incentives for fear of public backlash. However, it is in times like these that now-more than ever-sales, profit and employee morale need an extra boost.

Meetings professionals around the world must reevaluate their program content, budget and value in order to retain their meetings.

"We believe that business meetings and their purpose are a necessary part of our company strategy, but of course we always adhere to a budget," said Robyn Harper, Supervisor-Sales Promotions for State Auto Insurance Companies. "It is important that we partner with suppliers that can achieve our business objectives while keeping both of these factors in mind."

Fortunately, there are several ways to accomplish business objectives without sacrificing your program or its quality.

Timing is Everything: Properties will offer more favorable rates if you select a pattern that does not interfere with the revenue they count on from non-group travel. For example, a Sunday-Friday pattern at a resort could be less expensive than a Thursday-Sunday pattern. This is because such properties will achieve high occupancy over a weekend from leisure travelers, but need a boost in their mid-week occupancy rates. Conversely, an urban hotel may be busier during the week with business travelers and therefore offer better deals on weekends. A property's most desirable patterns and rates could vary based on type of property, location, and other factors. It is always a good practice to ask what pattern could afford you the best value for your group. If you can consider moving to alternate days of the week you may find that the savings you receive from the room cost alone may be enough to operate the rest of your program without any further reductions.

In addition, consider when the shoulder season of the destination is. If you can travel at a time of the year that is off-peak, you will find greater flexibility in the availability of rooms and function space, as well as willingness to negotiate pricing.

"Our hotels are all very flexible in working with planners to earn their business," said Kim Smith of Hilton Hotels. Depending on the destination and the season, companies can capitalize on some very creative terms and competitive pricing in the marketplace.

Negotiate Up Front: Within the midst of this financial crisis there is opportunity. Choose suppliers that are working hard to retain and earn business. There are plenty who are ready and willing to work with you. To maximize your purchasing power, think through what contract terms are important and request them from the start. An RFP with clear and quantifiable parameters will enable those reviewing the RFP to respond to your requests more quickly-leading to a more efficient process for all involved. Once you set the tone, your business partners will understand your expectations, and more times than not, meet them; saving time and money.

Look for Value: "Last minute deals" and "cancellation steals" are abounding in hospitality marketing right now. Seek out those opportunities and capitalize on the values that exist currently.

"The industry has recognized that the consumer is in the driver's seat," said Bob Miller, president & CEO of Excellence In Motivation, Inc. (EIM). "We've been able to obtain some unprecedented hotel rates in destinations that meeting planners may not have been able to consider in the past because they just weren't cost-competitive. Now is a great time to be purchasing for your next meeting," he added.

Scrutinize program content: When looking at the value of a program, first assess where your money is being spent. If you know you need to reduce expenditures, reconsider program enhancements such as room amenities, gifts, extravagant décor and other extra items. Keep only those that directly add value to the participant experience. By weighing the nice-to-haves against the have-to-haves, you will find that the integrity of the attendee experience will remain uncompromised and that few, if any, will comment that they didn't receive the chocolates in their room, or the corporate logo gift that they got last year.

Can you combine your incentive reward with a business component such as a general session, state-of-the-industry meeting or other dual-purpose that allows your organization to kill two birds with one stone? If you already incorporate business with your incentives or golf with your meetings, consider the timing of your programming to ensure that each day is productive and necessary. If you have the ability to plan shorter trips with fewer nights away from the office there could be considerable savings.

Give back: Research tours and group activities that could translate into tax deductable and potentially cost-saving elements of your program. Many destinations and local vendors are incorporating philanthropic events or activities with an element of community awareness into their service offerings. Turn your teambuilding event into a win-win by helping to build a shelter for the homeless, decorating a bike for a young child in need or donating your group's time to another worthy cause. Not only are you offering a rewarding and fulfilling experience for your attendees, but positioning your organization as a conscientious one. Occasionally, these activities and experiences won't come at any cost to you because you are volunteering your team's time. Community service is a creative and fulfilling way to save.

If you prefer to focus on the environment, Go Green movements are plentiful. Many destinations offer eco-tours and activities that are educational, and environmentally sound, providing your program with a big, memorable experience but a small carbon foot print.

Buy On-Consumption: Get what you pay for. Avoid purchasing services, food, beverages and the like in a package structure unless you have compared the value against buying on consumption or actual usage.

Such packages are based on taking your total participant count multiplied by an average expected usage and cost per item. Often, this formula for calculating consumption is generous as it does not account for attrition or consumption which is less than the formula. In the instance of a cocktail party, not every guest will drink the estimated three drinks per person, or not every guest will drink an alcoholic beverage. Therefore, you are more likely to pay for items that never get consumed and could pay a higher price for what is consumed than if you had just purchased only for that which you used.

If you must purchase in a packaged format, always ask your vendor what formula is being used to determine the per-person package cost and be sure you feel it is the best fit for your group's history and demographic. Or, negotiate flat per person rates for things like coffee breaks, bar tabs, etc. so you won't stress out about on-consumption amounts going over budget.

Rediscover Your Own Backyard: The United States offers a diverse array of culture, landscape, terrain, weather and convenience when it comes to planning a program closer to home. Today, guests do not need to fly to their trade show, meeting or recognition program because there are so many choices within driving distance, right here within the continental U.S. Those that wish to hold a function farther away can do so in a shorter time frame and manage costs by minimizing distance.

Whether it is a city hotel surrounded by the best Broadway shows in New York, a convention situated close to the Latin sizzle of South Beach in Miami, a team building event against the western backdrop of a Wyoming dude ranch, or an incentive trip sailing along the California coast during whale migration-the U.S. is a planner's playground. Major cities throughout the U.S. have opened new properties, new restaurants and new venues which all are vying for your business.

"We excel in providing our clients with creative options and new ideas that will give their events pizzazz and appeal," said April Mescher, executive director of travel for EIM. "It's our job to stay on top of what's hot, do the research and narrow down the best options for our clients, so that they can focus on the rest."

If your group longs for international travel, explore the Americas. A wise planner will make the most of his/her budget by holding a program where the U.S. dollar value is favorable. Mexico, Canada and South America can provide a great return on investment due to the currency exchange rate.

All Inclusive: It seems no matter how hard you try, there are always unanticipated costs during a program operation. These unexpected surprises can be a planner's worst nightmare-but it doesn't have to be that way. Utilizing an all-inclusive resort allows you to outline all your costs upfront because they are included in the room rate.

Guests can enjoy the freedom of being able to leave their rooms without a wallet or the inconvenience of covering additional charges.

As the budget manager, you can rest easier knowing that your attendees will thoroughly enjoy their stay knowing they can eat, drink and use the fitness facilities or pool how and when they want, at no extra cost to you. Be sure to ask what is and isn't included when researching all inclusives so that you can make an informed decision.

Use a Cruise: Like all-inclusive resorts, cruises offer similar controls for budget management. Cruise lines today may offer a 'la carte dining onboard, however, all still provide a main dining venue which is included in the cruise rate. In addition, fitness facilities, pools and other extracurricular activities are also included in the price on most ships. In fact, some cruise lines are completely all-inclusive covering everything from cigars to private breakfasts on your stateroom balcony!

As with land-based hotels, there are a myriad of cruise options that an experienced incentive house or meeting planner can present based on budget, trip length, destination and demographics.

Guarantee Exchange Rates: Strike while the iron is hot and work with your business partners to lock in their rates. This could be particularly beneficial for those with long lead times in their planning process.

If you can make deposits now on the goods and services in the present that you are buying for the future, you can prevent budget fluctuation. Many overseas suppliers are willing to agree to this in order to earn business.

Corporations have recognized that the economy and public perception are now prevailing factors in their decision of how and when to conduct their business functions. However, a cease and desist approach is not the answer. As meeting professionals our industry has been tasked with justifying expenses and proving ROI now more than ever. The silver lining is that there ARE ways to address financial and business goals simultaneously by purchasing smarter and reevaluating your meetings. The companies that weather the storm today will be those that remain flexible in these trying times.