As Lean Times Continue, Meeting Providers Adapt

Companies continue to slash their event budgets, so providers are evolving in the new climate, shifting strategies and providing new offerings that are easier on the bottom line.

There are signs that the economy is improving, but it looks like a slow recovery, so meeting planners are still cutting the number and size of their corporate events.

Companies are using varying approaches, depending on their size and culture, but not too much has changed in the last year or so: less spending on more local events.

In response, event companies’ offerings have evolved in this leaner, tougher climate: the Darwinian story of adaptation and survival continues. The good news for companies planning events is that it’s a buyer’s market: you can get a lot of bang for your meeting dollar.

How Companies are Saving on Events

Trimming the fat

The most drastic way to save on an event is not to have it at all, and some companies are certainly going that route. Some companies are only hosting vital events associated with safety and strategy, and axing the annual holiday party and incentive trips.

For the companies that are still holding events, the scale is much more modest - the gala splashouts of years past are definitely on hold. This probably isn’t the year Lady GaGa mounts the bandstand at your annual bash.

Food is another line item that planners are scrutinizing. The Nutter Corporation of Vancouver, Washington found a caterer that allowed them to provide their own beverages. By using full catering only for dinner, and opting for less expensive breakfast and lunch options, the company brought its food costs down from $30 per person to roughly $20 – a saving of thousands when the staff is in the hundreds.  Lori Magaro of Ray’s Boathouse, Café and Catering says, “the trend for several years has been more no-host bars - partially due to economic reasons and partially to reduce the amount of alcohol consumption and the risk associated with it.”

Staying Closer to Home

When your employees have been braving Wisconsin snow all winter, Aruba can look like a good getaway, but again, not this year. Where once the sales force hopped on a plane to make an incentive trip, it’s now more likely to be a crosstown bus. A couple of years ago a real estate management company out of Seattle sent 200 employees to California for a year-end party. Last year, says meeting planner Mimi Grant, they booked the owner’s boat for three nights, and took part in the famous Christmas boat parade that happens every year there. It’s a creative solution that requires a caterer but no hotel or plane fare. Entertainment was provided free by the hundreds of boaters out on Elliott Bay.

Combining Several Events into One

The Nutter Corporation used to do their annual safety education conference and Christmas party as separate events. This year they are combining them.  Since the safety seminar doesn’t last a full day, tacking the yuletide fest on to the end saves on transportation, hotels, venue, and catering.
 
Sometimes splitting up works better than combining: one company used to bring employees from four locations to a centrally located holiday party. Now each location hosts its own party, turning an overnight event complete with hotel stay into a local evening out.

How Event Companies are Surviving
Keeping It Simple

Just as companies are planning smaller, less elaborate events, caterers, hotels, resorts and other venues are offering stripped-down packages that help planners pinch pennies. By helping clients keep it simple, they keep their clients happy.

“Due to budget restrictions, we have seen clients compromising the “wow” in their events,” says Carmen McIntyre of the Greater Tacoma Convention & Trade Center. “They’re reducing audio visual and room décor. Some events that have previously used professional decorators are now doing the décor themselves or hiring less expensive professionals. We have invested in some additional room décor to offer to clients for a minimal fee, to enhance their room set and stay on budget.  For example, the roses used for the center pieces at the Military Ball were made by inmates of a local prison.”

The trick is to thin the budget but keep the experience memorable.  “We pride ourselves on being able to offer unique experiences to meeting goers without high price tags,” says Una Boyle the Executive Director of the Long Beach Peninsula Visitors Bureau. “We leave the flashy extravaganzas to the cities which are equipped to provide them. Instead, we offer a more tranquil setting with pricing geared to the smaller group which still wants to have a meeting but is scaling back their outlay.”

Meeting Them Halfway

Clients aren’t dipping into wallets, and event providers need to feed their families. The answer is compromise, and those who have stayed flexible with their prices and offerings have kept their customers, even if profits haven’t been as high as they once were.

The Greater Tacoma Convention & Trade Center found it necessary to lower meeting room rental fees in order to capture business. They also make the most of services that save the client money but don’t cost them too much – they might host a coffee break, upgrade meal/dessert at no additional cost, or sponsor VIP meals, for example. They have also been more flexible in negotiating short term events.

Flexibility, in fact, never goes out of style, especially in this economy. Lori Magaro of Ray’s Boathouse notes that “it’s good business to be as flexible as possible in customizing menus to fit budget constraints.” They have found that seasonal promotions and value-driven menu items are good incentives for increasing value and attracting business.
 
Getting Creative

If there’s a good side to the downturn, it’s that it brings out the inventiveness in providers. Where an option doesn’t exist, or is too costly, one must be created to fill the new slot. Carmen McIntyre has noticed that some associations and organizations are doing joint meetings, which gives them more negotiation power due to the higher revenue opportunity for the Center. Others are seeking a local host to manage and oversee the planning stage leading up to the meeting.

Creativity means looking for savings everywhere, especially in the small areas:: seemingly low-cost items like favors and trinkets add up fast, and they don’t add much to the overall experience. At the Greater Tacoma Convention & Trade Center some clients seek sponsors to host meals or breaks, and are accessing other organizations for volunteers to assist with their meeting. Some are also reducing the length of their conferences, and tailoring the meeting schedule to reduce airfare if attendees are flying in.

Marketing is another area where the recession has stimulated creativity and resourcefulness.  Many venues, event destinations, caterers and other service providers have moved full tilt into Facebook, YouTube,and Twitter. They’re encouraging customers to discuss their experiences online through their own social networks. It’s a cheap, viral way to keep the excitement up. Ray’s Boathouse continues to do radio partnerships and community charitable events.

Until the graphs start pointing upward and meeting budgets start to increase, doing more with less is the name of the game. Planners continue to find new ways to save money, and it’s up to providers to use their talents to attract business and stay afloat.

Written by Charles Martin, EVENTS editorial contributor