Mr. Dolce

Meetings & Conventions

Meetings Traffic: Opportunities and Challenges in Changing Economies

By Andy Dolce, Founder, Chairman & Managing Partner, Dolce International

Meeting industry veterans know lodging is a cyclical business and the good times cannot continue without end. The meeting business has weathered many storms over the past ten years. From the fallout of September 11th to the more recent stock market fluctuations and mortgage crisis, a decline in the health of our nation's economy often affects top meeting and conference facilities and drive-in markets alike.

Some corporations respond to an economic downturn by putting an immediate freeze on "unnecessary" spending such as travel and meetings. While their intentions to prune spending back to more prudent levels are good, these policies are often misguided knee-jerk reactions to economic uncertainty. The reality is, staff members still need to be trained, client meetings still need to occur, and other important face-to-face activities can't always wait for an economic recovery. Sure enough, most companies quickly realize that even in an economic downturn, travel and meetings are more often than not, critical business activities.

In good and bad economies, there is no replacement for "face time" and the benefits that come from developing key relationships in-person. Personal relationships will always play a vital role in many industries and for these industries, networking and relationship building will always be a top priority. From new product launches and sales meetings to brainstorm sessions, some initiatives are much more rewarding in-person than via email or teleconferencing.

So, while business travel does not go away completely during difficult economic times, it does change in nature and the hospitality and meetings industries must be ready to adapt to these changing demands. This is where conference centers have a direct advantage over hotels. When it comes to the most productive environment for meetings, a conference center versus a hotel, the conference center wins - hands down.

While some corporations might be tempted to book a group into a hotel offering a low nightly rate, they will likely be disappointed by a hotel's general lack of dedicated meetings staff and sub-par meeting facilities. A full service conference center offering a dedicated meeting conference planning team is an invaluable resource to corporations looking to make the most of their travel budgets while benefiting from the best meeting facilities and services.

Having a dedicated meetings staff is particularly crucial. Teams at meeting facilities must be trained to identify the focal point of the meeting in terms and goals and meeting requirements to determine the group's final itinerary within the overall budget. For example, a sales team might suggest that a corporation replace a large national training meeting with several regional drive-in meetings with teleconference capabilities in order to save money on airfare and lodging costs. Another cost-cutting option might be to replace a four-day conference involving day meetings with a two-day conference comprised of day and evening sessions. From replacing five-course meals with themed buffets and suggesting affordable, yet fun group activities, a dedicated meetings staff ensures that all events will be coordinated down to the last detail within a given budget in order to create value for the company.

Meeting companies should take advantage of online tools to assist with meeting planning and price comparisons. These online resources help planners find new techniques and solutions to produce an effective meeting environment for Certified Meeting Planners and first-time planners alike. Meeting facility Web sites should feature an array of interactive and informational tools to help facilitate conference and meeting planning which results in cost and time efficient planning. From pricing comparison tools to room-set up samples, online tools and resources help from the initial stages of planning to final execution.

When budgetary restraints are a concern, sales teams can work to suggest pricing options that suit every budget from a la carte to complete meeting planner (CMP) options. We have found our Pricing Comparison Calculator is particularly helpful to show meeting planners the breakdown of the CMP plan versus a la carte pricing. While a CMP plan is often a better value, we've learned that in economic downturns, a more simplified price plan is often more attractive to meeting planners looking to focus on the bottom line.

In economic downturns, the bottom line often affects the final decision for planners. It is especially important for meeting planners to secure added-value features when negotiating a meeting and hotel and conference center staffs need to be well trained to ensure corporations will receive the best possible meeting value possible. In addition, conference planning teams can work with meeting planners to show higher ups the complete benefits of a meeting including the importance of facilities, staffing and networking opportunities.

In good and bad economies, the most important goal is planning meetings that get right down to business. Meeting facilities must also be adept at planning meetings quickly for planners who are facing a time crunch. When time is an issue, we have found that previously established relationships and quick turnkey packages can make all the difference. Planners often expect our teams to turn around special events and teambuilding in a short amount of time and our meeting planner teams are always prepared to deliver.

Meeting planner teams need to be ready to pick up the ball and run - without compromising quality - when time is short. Whether it is the food, special event d'ecor, or a teambuilding activity, conference facilities must deliver unique meeting options with activities and amenities that make meetings memorable. Building on established relationships and going the extra mile for clients will pay off in any economy.

In preparing for a softer economy, it is imperative that a sales force work extra hard to show appreciation for and solidify relationships with current customers by offering incentives, "hot dates," and other guest recognition programs. In economic uncertainty, it is also crucial for sales teams to sharpen their view and pay close attention to economic signals and industry reports. In times like this, it is vital that a sales team focus their efforts to attract new business in markets with strong economic standing. Companies need to work hard to ensure that general managers and directors of sales are following economic trends while sharing this information with their teams.

One tactic I recommend to attract repeat business and new clients alike is promotions. This is especially helpful in attracting leisure business with value-added packages that include spa, golf, skiing, romance or family friendly amenities. In an economic downturn, we've found that last minute vacation getaways, bed and breakfast packages and holiday promotions are also popular tactics to offset a slower meetings market while adding revenue.

While financial markets will always be up and down, the meetings industry is here to stay. Best of all, the meeting players who learn how to ride the ups and downs will always end up winners in any economy.

Andrew (Andy) J. Dolce founded Dolce Hotels which has become the world's leading conference hotel company by providing environments where people can meet and learn. Dolce is at the forefront with properties in the U.S., Canada and Europe. He has been named one of the "25 Most Influential Executives" in the meetings and travel industries by both "Meeting News" and "Business Travel News". Mr. Dolce has been a board member and president of the IACC. He is on the board of NYU's Center for Hospitality, Tourism and Travel Administration and serves on Iona College's Legal Board of Trustees. Mr. Dolce can be contacted at 201-505-5906 or andy.dolce@dolce.com Extended Bio...

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