Meetings & Conventions: Having it all March 1998

March 1998
Having it All
They may help cut costs, but can all-inclusives deliver
incentive-caliber programs?
BY LISA GRIMALDI
They promise you the world -- rooms, food,
drinks, transfers, sports, activities, entertainment, even
gratuities -- for one fixed price. To throngs of
sun-and-fun-seeking vacationers, all-inclusive resorts are a great
deal. Isn't it a given that they'd work for incentive programs,
too?
Well, yes and no. Fans say all-inclusive programs are a snap to
budget, and they avoid the headache of planning the myriad details
conventional incentive programs require. But traditionalists claim
they're the antithesis of the true incentive, leaving little room
for the customization, creativity and luxury that many winners
expect as their reward for reaching an extraordinary goal.
Strong opinions aside, the suitability of all-inclusives has
more to do with the particular group than any predispositions for
or against all-inclusives. To determine whether these venues are
the right fit for your program, consider the following advice from
planners.
Extras,
Extras
As many an unsuspecting
planner has found out, the term "all-inclusive" is a bit of a
misnomer. For groups, there will always be an extra charge or two.
The key, says Cheryl Bump, president of Virginia Beach, Va.-based
Brickell Incentives, is to ask enough questions to uncover the
charges in advance. "I have a 15-page checklist of costs that I go
over with every property I'm considering -- and all-inclusives are
no exception."
She adds: "Don't be afraid to negotiate -- they may want
your business enough to throw in the private cocktail party or
awards dinner. Just make sure you get it in writing."
Among the more common extras at
all-inclusives:
Bottles of wine: The all-inclusive
price generally covers glasses of wine. If you want bottles on the
table (or, if bottled wine is included but you want a finer
vintage), prepare to pay.Golf and deep-sea fishing: Although
most other sports and watersports are covered, these more expensive
activities usually cost extra.Off-site functions: If you take the
group off-property for a dine-around, all-inclusives typically
don't offer rebates for the missed meal.Private dinners: Most properties impose
a service charge if you want to hold a special event, such as an
upscale cocktail party or awards dinner. SuperClubs, for example,
charges $6 to $16 per person, depending on the lavishness of the
affair. Some chains, including Sandals, will also charge a fee for
closing off a restaurant or area of the resort for the group's
private usage.Upgraded transfers: While
all-inclusives typically include transfers between the airport and
the property, participants will be riding in a standard minivan or
minibus. If you want to wow your folks with limos or antique cars,
expect to pay extra. * L.G.They're a good deal if...
You're on a tight budget. Hands-down, the "one price for all"
policy is the number-one reason incentive planners like
all-inclusives. You know what you're spending up front -- and you
aren't going to go into coronary arrest when you're presented with
the final bill. Joan Miskowiec, manager of planning and purchasing
for Minneapolis-based Northwestern Incentives, recommends
all-inclusives to low-budget groups. "They're a good value, because
you not only get the basics, but you get things like watersports
and nightly entertainment that you might not be able to afford in a
different setting."
Participants benefit, too. "You don't want your attendees to
have to reach for their wallets during a program," says Cheryl
Bump, president of Virginia Beach, Va.-based Brickell Incentives.
"At an all-inclusive, they're free to enjoy themselves without
having to worry about paying extra for this and that -- which can
take away from the incentive."
Before Bump selects an all-inclusive resort for a client, she
gets price quotes from other properties and destination management
companies (which also offer package deals) at the destination.
Beware, however, if you need to show your boss or client an
apples-to-apples price comparison. All-inclusives like Club Med,
Sandals and SuperClubs will absolutely not break down prices for
you -- you'll have to "guesstimate" what they charge for individual
budget components such as food and beverage, rooms, transfers,
etc., based on the package price.
Bump says she can't think of a situation in which a
non-inclusive property offered better value than the all-inclusive.
In fact, she once had two groups of roughly the same size hold
concurrent incentive programs on St. Martin. One group selected an
all-inclusive property; the other chose a traditional resort. While
the initial costing worked out to be almost equal for each program,
the real difference, she says, was in the running master account,
particularly for drinks. "The firm that didn't stay at the
all-inclusive ended up spending far more."
Laura Sayegh, vice president, sales operations, for the New York
City-based Research Institute of America, has also planned
incentives to the Caribbean at both types of properties. "It was
much more of a challenge to balance the budget at the non-inclusive
property -- there was a surcharge for everything, and it really
added up," she says.
Even Anne Wold-Graham, who's not a fan of all-inclusives for
incentive programs, says the genre can't be beat when budget
control is top priority. "At the end of a program I did at the
Almond Beach Club in Barbados, I was presented with a $19.95 bill
for incidentals," laughs the senior vice president of New York
City-based planning firm EGR International. "I've never had a bill
that low in my life."
Your participants live large. "All-inclusives
work well for groups that will take advantage of everything the
resorts offer," says Lesley Meyer, CMP, vice president, operations,
for Dallas-based Sunbelt Motivation and Travel. That's because
you're paying for it all, including sports and activities; if your
participants would rather sit around the pool reading a book, you
won't be getting your money's worth.
Beverage consumption is important, too. Whether your
participants drink the bar dry or they're teetotalers who indulge
in nothing stronger than Diet Pepsi, you're going to pay the same
price. "You really need to have an idea of their habits and know
their history to figure out if the setting's going to be right and
it's a good value," says Brickell Incentives' Bump.
They also need to be fairly independent, says Northwestern
Incentives' Joan Miskowiec. "If participants enjoy snorkeling,
windsurfing, even eating most meals on their own, rather than doing
the 'tight group' stuff, all-inclusives are a good option."
Another consideration: Will the group be happy staying put?
Although you can organize a tour of the destination or a
dine-around one night, they're pretty much stuck on-property for
the duration of the program. Make sure they don't expect to be
wowed by a different venue every night.
You want to simplify your job. "Holding my
program at an all-inclusive was the best thing that ever happened
to me," says Sayegh. "It was great not having to pick a breakfast,
lunch and dinner every day. The menus were varied enough; they
[Antigua's Curtain Bluff] have it down to a science." And Sayegh
was delighted that she didn't have to plan nightly entertainment,
worry about decor or "do anything extra."
When Kathy Johnson, director of corporate communications for
Clear Channel Communications, a San Antonio-based broadcasting
company, held her first all-inclusive incentive program in January
at Sandals Ocho Rios, she was relieved of another time-consuming
chore: Doling out spending money to winners, a typical practice of
her company and many others. "Since no money technically had to
leave participants' hands, I didn't have to go through the detail
work of that step," she says.
Going
Solo
More companies are
offering individual incentives today, rather than traditional group
programs, according to a study of the U.S. incentive market
conducted last year by the Incentive Federation. So it's no
surprise that all-inclusives like Sandals, SuperClubs and Club Med
are meeting the demand by offering individual incentive
rewards.
The concept is a natural for all-inclusives, and the
individual programs are quite good, according to Jim Feldman,
president of Chicago-based Incentive Travelers Cheque Int'l., Inc.,
an incentive company specializing in individual incentives. But, as
of yet, they haven't caught on with either winners or program
sponsors.
"If we offer participants 100 travel options for a
particular program, their choices skew in two directions," says
Feldman. "The participants either want a special-interest reward --
at a ski resort, golf resort or a spa, or they want to completely
'veg' out. And in those cases, they'll usually pick a cruise over
an all-inclusive. [With a cruise], they get basically the same
things, but they're visiting different destinations and aren't
locked into one property," he says.
Program sponsors, on the other hand, have their own
concerns about all-inclusives. For one, they're higher-priced than
the packages offered by non-inclusive hotel chains. But Feldman
says there's a bigger concern.
"They don't like the fact that liquor is included in the
package -- they fear that a participant will overindulge, take a
nasty fall, break his or her ankle and then sue [the sponsoring
company]." Although the same thing can happen in group programs, he
says at least the sponsor has some supervision and control over the
event.
Feldman's solution: "We have all of our participants sign
a liability waiver, stating that they can't sue us or the client."
* L.G.
Better look elsewhere if...
You want a fabulously creative program. Of those who shun
all-inclusives, a chief gripe is the generic nature of their
incentive programs. "It's hard to do the personal touches that make
incentives special," says Wold-Graham. In other words, forget the
motorcycle road rallies, the schooner sailing to a private island
and the black-and-white ball.
Of course, you can do a cocktail party or a theme party, but
you'll be limited in the scope and range of your event -- even if
you are willing to pay the price (see "Extras, Extras," page 56).
As Sunbelt's Lesley Meyer says, "The very nature of incentives is
to specifically design a program to a group's needs, and that
creativity is hampered at all-inclusives."
Henry Kroesen, vice president, marketing services for Don Mills,
Ontario-based NN Financial, designs high-budget (about $5,000 per
participant) incentives for independent insurance agents, and he
steers clear of all-inclusives -- calling them "strictly for the
tour and travel crowd." Says Kroesen, "I'm competing against other
firms that are offering fabulous incentive programs, so
I stay away from any type of program that people
book themselves."
He adds: "Sure, all-inclusives can do one special dinner for
your group, but the rest of the time, what they're getting is no
different than what all the other guests are getting."
It's also difficult -- unless you've taken over the property --
to make your events exclusive. Wold-Graham says one property
refused to close off the pool area for a welcome cocktail reception
because local craft vendors, who displayed their wares there at
cocktail time, protested. The result: A lot of unfamiliar faces
wandered into the party. (Fortunately, it was not a function that
warranted extra charges.)
Your participants are sophisticated eaters. While the food is
usually good and plentiful, it's probably not the stuff experienced
participants are used to. "Your dining options at all-inclusives
are limited, and there are way too many buffets," says planner
Cheryl Bump. "That's going to bother some folks."
EGR's Wold-Graham agrees. "After you've been there for the sixth
breakfast or sixth dinner, and the same hors d'oeuvres are served
with cocktails every night, it can get pretty tiresome," she says.
"I always try to do a dine-around off-site for one night, just to
break things up."
You expect flawless group services. While most
planners agreed that all-inclusives are making great efforts to
learn the needs of incentives, they're still fine-tuning some of
the amenities. For example, although they provide transfers between
the airport and property, you'll have to make special arrangements
so participants are taken to the resort upon arrival -- a normal
feature of an incentive program -- and not waiting in the van for
other guests to arrive, gripes the incentive planner for a San
Francisco-based direct marketing firm (who asked to have his name
withheld). "They're still not quite up to speed on the little
stuff," he says.
Clear Channel Broadcasting's Johnson had to insist that her
participants be checked in en route to the resort. "The property
wasn't used to a group coming in at once, and I didn't want a mob
scene when they arrived," she said.
You want a one-of-a-kind experience. Then
there are the traditionalists -- those who feel that all-inclusives
just don't have the right "carrot appeal" for the type of
participants they're trying to motivate.
Judi Taylor McLaughlin, director of corporate events for
Philadelphia-based McGettigan Partners, says all-inclusives are not
her firm's preference. "We're trying to create a unique environment
that participants can't create on their own," she said. "Our
incentive clients -- mainly financial services and pharmaceutical
companies -- have participants who have money to travel wherever
they want, so we offer programs with elements like a ride on the
Orient Express or a private reception at the Vatican Museum."
The San Francisco-based planner agreed. "We do two types of
incentives: a pure 'thank you for a job well-done' trip, and a
'vacation of a lifetime' traditional program that only 30 top sales
reps qualify for." He says all-inclusives work perfectly for the
reward trip, but he would never use one for the goal-oriented
incentive. "People aren't willing to work hard for stuff they can
do on their own -- and just about anyone can afford to take an
all-inclusive vacation." *
Three for
All
It's been nearly five
decades since the all-inclusive concept was introduced by French
company Club Med to Europeans in 1950, but the idea didn't catch on
with North American vacationers until the 1970s. Since then, many
firms have joined the all-inclusive bandwagon. Some are
individually owned and operated (such as Almond Beach Resorts in
Barbados); others are members of traditional hotel chains (such as
Wyndham's Sugar Bay Resort in St. Thomas).
In the Caribbean, three chains -- Club Med, Sandals and
SuperClubs -- specialize in all-inclusive resorts. All three
initially targeted vacationers, but they began courting the
lucrative incentive industry in the '90s. Their efforts seem to be
paying off. While groups represent a relatively small percentage of
their business (no more than 15 percent), all three say their
incentive business has increased dramatically -- by at least 200
percent -- in the past two years.
For details, contact the chains directly.
Club Med
Scottsdale, Ariz.
(800) 453-2582
Fax: (602) 443-2086
www.clubmed.com
Sandals
Miami, Fla.
(800)-SANDALS
Fax: (305) 663-4355
www.sandals.com
SuperClubs
Hollywood, Fla.
(800) 859-7873
Fax: (954) 929-4382
www.superclubs.comNo Tipping,
Really?
All-inclusives love to
tout their "no tipping" policies (meaning gratuities are already
figured into the set price). But does this mean you shouldn't tip a
bit more? While top executives at both Sandals and SuperClubs
all-inclusive chains say additional tips are completely
unnecessary, most planners say they generally slip some extra bucks
to key staff members either before or after the program.
At the end of her incentive program at Curtain Bluff, an
all-inclusive in Antigua, New York City-based planner Laura Sayegh
of the Research Institute of America added a gratuity to the master
bill and gave staff members hats and T-shirts with her company's
logo. "They did a really great job, and I wanted them to be just as
enthusiastic about my group the next time I used the property," she
said.
On the other hand, Kathy Johnson, director of corporate
communications for San Antonio-based Clear Channel Communications,
followed Sandals' strict instructions not to tip during her firm's
recent incentive program in Jamaica. "I was nervous about it -- I
like to tip in advance to make sure my participants are taken care
of," she says. "But in this case, it didn't matter. The staff
couldn't have been more hospitable to our group." *
L.G.
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