Sunday, February 22, 2009

Meeting Planner Advice

Most meeting planners are very familiar with names like Marriott, Hilton, Sheraton and Crowne Plaza; after all those types of hotels are host to countless meetings every year. However, names that meeting planners often forget to consider are those affiliated little brother/sister brands such as Courtyard by Marriott, Springhill Suites by Marriott and aloft - a vision of W hotels. The reality is that meeting planners could save a lot of money if they included more "select service" brands in their RFPs.

With increasing frequency, developers are building "select service" hotels with ample meeting space to host small to mid-size meetings. Historically, by definition, select service hotels were designed for business travelers. Their room layout, services and amenities were custom tailored to meet the needs of road warriors, and little consideration was given to targeting meetings business for these hotels. The little sister/brother brands were conceptualized as offering limited (but sufficient) services to individual travelers not attending a meeting or conference and in turn operating with substantially lower costs. However, during the past five years the line between select service and full service brands has become increasingly gray.

While the aforementioned brands are still well recognized as great hotels for individual business travelers, many of them also have the capacity to host small to mid-size meetings (10 - 200 people). The truth is that as building costs skyrocketed, hotel developers got creative. Instead of building large "full service" properties that require substantially higher construction and operating costs, many opted to build select service brands and tweaked the design to accommodate more meeting space. You see, to build a Marriott or Hilton the brand requires physical amenities such as large lobbies, restaurants, larger fitness centers and VIP lounges, and they require additional services such as valet parking, evening turn down and bellmen. Well, a select service brand such as Springhill Suites doesn't require any of those extras. Typically, it's a lobby with ample space to serve free breakfast, an adequate but not extensive fitness room, and guest suites - that's it. So developers realized they could take a prototype select service product such as Springhill Suites, add a ballroom and extra kitchen space and voila create a pseudo full service hotel at a fraction of the traditional cost.

The end result - select service hotels that are perfectly designed to accommodate small to mid-size meetings. As it turns out something like 75% of all meetings fit that size category, so the market is flush with opportunity (good for the owner). And, these smaller properties offer the customer the intangible benefit of exclusivity. In a big hotel you often have to share the common space (and service staff) with other groups and you lose any sense of intimacy - well at a select service hotel with a couple decent size meeting rooms, planners feel like they own the place because their group is the only group in house. All the while, the services and hotel amenities are plenty sufficient for guests to have an enjoyable and productive stay.

Meeting planners also enjoy cost savings at a select service hotel. At Springhill Suites, for example, breakfast is complimentary to overnight guests - so immediately there is a cost savings. As noted earlier the operating costs are lower; for that reason and simple brand differentiation, meeting planners can expect to pay slightly lower overnight rates at a select service hotels compared to their big brother/sister locations. And when it comes to food and beverage, planners can typically expect competitive quality and prices at smaller hotels. Many smaller properties have the kitchen capacity and culinary staff to handle catering, and others contract as needed with local restaurants or catering services. To all meeting planners (professional and novice) seeking a quality meeting environment, the message is this: it behooves of you to consider traditionally select service hotels as your host - many of them aren't so "select" in their services anymore.

So, go, plan your next corporate meeting, church retreat or family reunion, and be sure to send your RFPs to those less traditional meeting locations! Visit your preferred brand website or call the convention and visitors bureau if you aren't sure where to start.

Monday, February 16, 2009

Hey Congress & The Media: Cancelling Meetings Costs Money Too

This was an old post from early 2009 that apparently I saved as a draft and never actually posted, but it is still worthy:

Some food for thought...hotels charge cancellation fees when you cancel a big meeting/conference. So, this idea that we are saving taxpayer dollars by cancelling junkets to Las Vegas and blackballing every "resort" in the Nation is nothing short of a display of ignorance.

Mr. President and Members of Congress and Members of the Media: Guess what, for all those meetings that were cancelled as a result of the PR bashing, the venues probably still collected a handsome cancellation fees. However, the people that lost-out were the employees of those hotels/resorts that didn't get hours or gratuities they need to feed their families, and the cab drivers, and the airline stewards, and the restaurant waiters, and the dry cleaner, and yes the casino dealers too. They lost their livelihood as a direct result of certain meetings that were cancelled, and they are still suffering the consequences of the anti-meeting media blitz that was sanctioned by the administration.

So, this begs the question - would you like to flush a few hundred million down the toilet in cancellation fees, or would you rather allow and encourage the natural economic stimulus that occurs as a result of meetings? The reality is that meetings and conferences are a spark of spending where the meeting itself is only a fraction of the total economic impact. And, meetings generate results that improve business practices and profit margins and initiate new ideas and R&D spending. Yet, all this considered (or apparently not considered) the meetings/conference/travel industry seems to continue to be badgered by horrendous and misleading press coverage. Frankly, that sucks for the 1 in 8 Americans who rely on our industry for employment.

For those of you in the business - do something about. Get involved. VAHSMP (the Virginia Association of Hospitality Sales and Marketing Professionals) is one of many opportunities to get involved with the big picture of promoting tourism/travel. In addition to offering educational events and networking, VAHSMP in conjunction with the Virginia Tourism Corporation, are a voice for the hospitality industry in Virginia. Find VAHSMP on LinkedIn, Twitter and Facebook.

And, while your online, check out http://www.meetingsmeanbusiness.com/ for more information and learn how about getting involved.

Wednesday, February 11, 2009

Take a Staycation @ aloft Chesapeake

Perhaps some of my readers have noticed, but for those that haven't - your investments aren't doing so well, you owe more on your house than it's worth,  and by the way your job is probably about as secure as a house of cards in the sand of Virginia Beach on a windy day.  I hope you sense the sarcasm because I'm laying it on pretty thick - we've all been over stimulated by negative news during the past six months.

Americans need to escape from the stresses of current events, step away from the 24/7 flurry of news, and enjoy life without worry - even if only for a short couple days.  For good and prudent reasons, many (if not most) people are planning to trim back (but not eliminate) discretionary spending this year.  So, for those that are seeking a break but don't want to break the bank on travel to a far away destination - I suggest a staycation.  The concept is simple, you stay near home, but away from home.  This reduces vacation travel costs and allows for shorter spurts of rejuvenation, instead of taking a long, expensive vacation away from home. 

Now, I know, nobody wants to go to a bla hotel that's just a big box with rooms and offers little life or pizazz.  So, I suggest something new...something different...something that stimulates your senses...an experience you have never had before.  You need to come check the scene that's abuzz and discover the new tWist in travel at the aloft Chesapeake.  This is not your parents hotel - come check out the fresh funky designs and local artists wall while you mix, mingle and play at Aloft's W xyz Bar and sip on one of the 9 signature cocktails.  If you'd rather just lounge in one of the ultra sheik, loft-inspired guest rooms while catching the latest flicks on our 42" lcd tvs, that's cool too.  After your weekend staycation at aloft, you will no doubt feel re:laxed, re:charged and re:freshed - yep, there's a state of the art fitness center and an indoor pool where you can splash a:round too!

For my readers that live around the state, it's really just a quick ride to Chesapeake and once you're at aloft, the beach, the arts and the peace and harmony of nature are just a quick spin from the hotel.  So, check out the special offers page and book your Staycation!

Tuesday, February 10, 2009

The Travel & Vacation Bailout

Some will read the headline and think, "huh?". Bear with me, I think this idea has some merit.

The Facts:
According to the US Travel Association, the travel industry generates $700 Billion in revenue, 110 Billion in tax receipts, 7.5 million jobs (roughly 5% of all US jobs) and $178 Billion in payroll. In the lodging sector, Convention/Tourism and Economic Development offices use a figure to calculate the economic impact of visitors to the area. That is calculated based on estimated purchases in the locality based on an guest staying overnight. For example, one might say the multiplier effect is $150 in a particular area - that means that for every hotel room sold in the city/area, on average an additional $150 in purchases of entertainment, gas, food and incidentals will accompany that lodging room purchase. Using that methodology you can use your imagination (or a calculator) to figure how big the trickle down effect is from travel on many other segments of the economy (gas, retail, restaurants, etc.). With the economy in a tailspin, the travel industry is one of the hardest hit and last to recover, and because of that the negative trickle down impact is substantial.

The Idea:
In the United States, there is no statutory requirement for vacation time, but in many other developed nation there are such laws. So, instead of bailing out companies that were irresponsible, and instead of spending a trillion dollars of governement money on various initiatives, I am suggesting a mandatory vacation for every American worker (150,000,000 people) - fully paid by the US governement, up to $5,500.

Why does this make sense? Well, for all the trickle down reasons I have previously identified. If people travel, they spend money on airfare, gas, retail purchases, restaurants, entertainment and ancillary related expenses. All of that spending would undoubtedly save or create jobs in all those various sectors of the economy and would generate an incredible amount of taxes for local and state governments. Of course the direct economic impact would be massive, but the bonus would be that with the incremental tax revenues the local governments could do what is best for their area to stimulate spending and really kick-start the economy back into gear. Once the economy is clicking again, new ideas will germinate and capitalism will generate the private investment and creativity necessary to sustain continued growth.

Some would argue that this would only benefit resort areas. I argue that is simply not feasible. Number one, $5,500 is not enough to travel to a resort and enjoy a full week stay. Second, there isn't enough resort inventory to accommodate the 150,000,000 vacationers. Also, in tough times, many people would be perfectly happy traveling to see family or friends and would use the bulk of their vacation stimulus on shopping, eating out and enjoying the company of their loved ones. That can/would occur in every city/town across the country thereby spreading the impact to all corners of this fine nation.

The Best Part
So you see how the math works, but the added benefit is the intangible but incredible optimism that would be stimulated by a free vacation for every American worker. People would be able to relax, recharge thier batteries and come back to work with a more positive attitude and outlook (ie: consumer confidence would be mended). And, the icing on the cake, is that for every single employer, private or public, they would have a full week of payroll relief for every employee. So, we improve moral, generate $800 Billion in consumer spending and save billions of dollars in payroll costs for employers, in turn kick starting the economy and stimulating job growth and innovation. With that, home values will stabalize and the housing crisis will resolve itself and we'll be on our way to another couple decades of American over-indulgence that our culture so deeply cherishes!

Doesn't that sound like a viable plan? I thought so - now, go, take a trip and stay at a hotel!