Look Who Wants Your Business Now!

By Christine Born

Have you ever thought of holding your annual conference at a resort? We know, we know – your associations is very frugal and you don’t want to give the appearance of being extravagant, especially in the wake of what has come to be known as the “AIG” effect, named for the big insurer that staged a lavish meeting after receiving government bailout money. But, besides the savings now being offered by upscale properties, some planners are discovering other advantages to holding their meetings at resorts.

If you or your organization has ever had a dream destination in mind, now’s the time to reconsider the possibility of a once-out-of-reach property, especially if you have meetings in the near future. Here’s the good news: Luxury resorts have joined the discount battle, offering low rates, eliminating attrition fees and adding freebies in an effort to attract whatever meetings there are in a shrinking economy.

Seasoned planners may be familiar with this scenario – been there, done that (if only figuratively). After the events of Sept. 11, 2001, and the subsequent slump in corporate travel, hotels briefly wooed faith-based groups and associations. The market flipped again in 2006, as prices climbed, hotel construction boomed and the corporate meetings market returned with a vengeance. This time around, optimistic predictions are for a bounce-back in the second half of 2010, so if you’ve ever wanted to book your meeting at a resort, now’s your window of opportunity.

“If there are any resorts that were on your ‘wish list’, they now may be a good possibility for your event,” says David Gabri, president and CEO of Associated Luxury Hotels International (ALHI). “The economy and the shift in business travel have created more inventory at hotels and, as the market has softened, many have opened up, relaxing food and beverage minimums significantly and allowing some groups to enjoy amenities they might not have had access to before.”

While admitting that corporate groups traditionally bring more assets to resorts, especially for incentive meetings that often include golf and spa packages as well as big bar tabs, Gabri said that resorts have always been interested in “all good business.”

He suggests that savvy planners use this lag period to establish longer-term relationships with resorts, contracting through 2011 where possible. “This year, anyone can write their own business anywhere,” he says. “In 2010, there will be a little less availability, and resorts will lower group ceilings as the leisure visitor comes back. It’s a typical supply-demand curve.

“It’s an important time for planners to work with the sales managers of choice, so when the tide turns, they’ll be remembered,” Gabri says.

Resorts are not only concerned about a return on room inventory, they also want to keep well-trained staff busy. According to Gabri, all the properties in ALHI’s inventory are not going to jeopardize their ratings by cutting back on service.

Great service is one of the reasons even budget-conscious groups are interested in resorts, says Kevin Hillmich of PCH Hotels & Resorts, known as the Resort Collection of Alabama Robert Trent Jones Golf Trail. “Across the country, resorts are being more competitive with the values they are adding, but we want to lead the way in satisfaction,” Hillmich says. “We are trying to put an offer on the table that will give them the incentive they need without sacrificing any service or attention to detail.”

PCH resorts are offering giveaways – similar to those at many resorts – for free night stays, spa treatments for attendees who register by a certain date, and other early-bird specials that planners can use in their event brochures to build interest and attendance.

Alex Doyle, vice president of 21st Century Group, a global hotel site selection company, says resorts are offering very liberal attrition rates (at 25 to 35 percent slippage), no charges for meeting space, very low if any food and beverage minimums and, in some cases, a 3 to 20 percent rebate back on the total master account. “Resorts are trying to remove any obstacles for attracting business,” he says.

Offers like those above may draw budget-conscious planners not intimidated by the use of “resort” in the property name (one sales manager, who did not want to be named, related a story about a planner who booked with the property and then requested that the “& Spa” portion of its name be removed on all materials related to her meeting). Once they book the meeting, these daring planners are likely to reap benefits beyond the relative bargain rates.

With families cutting back, planners are finding a positive repercussion of the recession – families are using the conferences as their vacation, boosting attendance.

“We are seeing many groups negotiating group room rates for three days before and after events,” Doyle says. “This is actually a bonus for the resorts as well, since they realize more total room nights.”

With all the amenities available at resorts, planners are cutting less popular programs and food events, resulting in savings and giving attendees more free time to choose the activities they prefer on their own dime.

“Besides asking for discounts on F&B prices (we are seeing menu pricing guaranteed for the rest of 2009 and even 2010), planners should ask for coupons for meeting attendees to receive 10 to 20 percent discounts in hotel restaurants, and even a dollar amount dining credit for those who come early and stay late,” he advises.

Serenity is an appealing selling point for many meetings, says Renee Wilhite, director of sales and marketing at Chateau on the Lake Resort & Spa in Branson, Mo. “The whole environment keeps people focused and in the right state of mind to absorb what they need to absorb,” she says. “Resorts keep everyone on property and captured for the conference portion, but allow attendees to make it a family vacation. We’re seeing this a lot more. They are using our amenities and not doing another vacation.”

Wilhite reports that some groups have actually exceeded expectations this year in terms of numbers. “There are a lot of meetings that people aren’t going to give up,” she says.

They are also using the spa more, which Wilhite attributes to the stressful economy. The resort has responded by offering stress-free seminars during breaks and complimentary spa treatments
for groups.

“There’s a lot they can do to offset their budgets,” Wilhite says, suggesting pre- and post-event extensions at group rates, cutting meeting agendas, and giving group members more time to relax and be with their families.

North Carolina’s historic Pinehurst Resort attracts small retreat groups attracted to the quiet setting in the state’s green Sandhills region.
“It’s almost like coming home,” says Beverly Stewart, director of sales, Conventions & Visitors Bureau – Pinehurst, Southern Pines, Aberdeen Area, N.C. The resort can accommodate meetings of up to 1,000 and Stewart says groups are now more aware of negotiating power that they may not have had before. “We are open to anything,” she says. “We work group by group; some require more hand-holding because they generally are not professional meeting planners, but they are very rate conscious and have specific requirements. We help them meet these, so they can be successful.”

All of the property representatives agree that if the dates are right, they will make the meeting work – for the short term. “There are still meetings for 2009 that have not been confirmed,” Doyle says. “We are working on meetings for 2012 and 2014, yet these are the larger conventions that need to plan further out.”

Will there be room for special interest groups and association meetings when the corporate meetings and leisure travel markets rebound? “That is the $64,000 question,” Doyle says. “The resorts will continue to show flexibility as long as the market remains soft. We suggest to our meeting clients that they take advantage of the present situation. Once a recovery takes hold, all of the special offers go away.

“Shop now while resorts are on sale!”