Meetings & Conventions Last-Minute Meetings January
1999

January 1999

Last-Minute Meetings
So little time, so many details...Here's how smart planners
cope
By Maria Lenhart
It’s a request independent planner Laura
Colderchant, president of Progress in Planning in Elgin, Ill., has
gotten used to: the frantic call from a corporate client who has an
unexpected meeting on the horizon. It’s small, it’s strategic and
it’s happening in three weeks.
Welcome to the era of the “pop-up” meeting. While an increase in
small, short-term meetings has been an industry trend for a few
years now, the definition of “short term” seems to be shrinking all
the time. While two months used to be considered last-minute, now
it’s anything inside of 30 days.
What’s driving the scramble? Susan Hodapp, brand director for
Marriott Hotels, Resorts and Suites in Bethesda, Md., points to the
strong economy. “More companies have been investing their profits
into new products and other areas,” she says. “That means there’s a
lot of hot information that has to be communicated quickly to a
core group of people. So we’re seeing a lot of meetings that have
to be turned around at the last minute.”
Fortunately for planners under pressure, the resources for
handling last-minute meetings have been growing as well. Hotels are
eager to promote their “hot dates,” periods where rooms are
available at discounted rates, usually just a few weeks in advance.
Thanks to the Internet, planners can quickly access hot dates
information from a huge variety of meetings industry Web sites.
Contacting a convention and visitors bureau, hotel national sales
office or a site selection firm can also yield information on
properties with availability and, with a bit of luck, discounted
rates.
“Although it’s not the message we want to get across, these days
it can actually be an advantage to book short term,” says Keith
Hymel, managing director of sales for Hilton Direct, the
Dallas-based small meetings sales division of Hilton Hotels Corp.
“If you can be a little flexible, there are some really good
last-minute deals.”
Roger Helms, president of HelmsBriscoe, a site selection firm
based in Scottsdale, Ariz., agrees, noting the odds of finding
affordable rooms for short-term meetings are getting better all the
time. “It used to be that clients would say ‘find me space,’ but
now more are saying ‘find me value,’” he says. “The hotel market is
growing softer, and this benefits short-term business.”
So while site selection for short-notice meetings is growing
easier, the biggest problem for planners may be keeping everything
under control. For Laura Colderchant, this means keeping the hotel
in the loop at all times. “Things can be disorganized and highly
changeable in these situations, so it’s really important to have
good back and forth communication with the hotel contact person,”
she says. After all, she stresses, “You’re not in this alone.”
Site Selection Firms
When Charlene Scannel, corporate meeting planner for Clorox Co. in
Oakland, Calif., needs to put together a meeting, she has no time
to call around to hotels. Instead she calls a site selection
firm.
As a one-person planning department responsible for about 60
meetings a year, many of them on short notice, Scannel says site
selection firms are “one-stop shops” that make her job with the
detergent products manufacturer much easier. “I’m freed up to
concentrate on other aspects of the meeting,” she says.
When Dawn Hardecky, project manager for American Management
Solutions, a Fremont, Calif.-based company that manages nonprofit
technical associations, found herself in desperate need of 10 hotel
rooms in sold-out Denver for a meeting in two weeks, she panicked.
Then she called a site selection firm.
“I knew hotels in Denver were booked solid and so I was willing
to settle for anything in the metro area,” says Hardecky, who
called EventSource, a site selection company and Internet event
planning search engine based in Novato, Calif. “To my surprise, my
contact called back in 20 minutes with a downtown hotel.”
Site selection firms, companies that specialize in finding
available space at hotels and off-site meeting venues, are among
the newest and fastest-growing segments of the meetings industry.
Acting as a distribution channel much like travel agencies, these
firms are normally paid commissions by hotels and other suppliers
and do not charge meeting planners for their services.
Often, these service providers are staffed with former hotel
salespeople. Roger Helms, president of HelmsBriscoe, a Scottsdale,
Ariz.-based site selection firm with 48 offices worldwide,
estimates that 95 percent of his company’s 140 sales associates
have a background in hotel sales. Helms himself worked in sales for
the Registry Hotel Corp. in Dallas before teaming up with another
Registry employee, Bill Briscoe, to found the company in 1992.
Time is of the essence
Many site selection firms have quickly built databases that can
track availability at thousands of hotels worldwide. Along with
availability, the databases can generally find “hot dates” at
hotels offering blocks of rooms at a discount, usually on a
short-term basis. According to Helms, many hotels view site
selection firms as a way to reach more customers and to sell rooms
that might otherwise go unsold.
While site selection firms often offer a range of services that
can include booking off-site venues and arranging for golf and
other activities, most frequently they are used for finding
sleeping rooms and meeting space at hotels. “In most cases, a
planner will give us a choice of one or two cities,” says Heather
Dobbins, director of sales and marketing for The Hotel Network, a
site selection firm with offices in San Diego and Phoenix. “We’ll
check all the hot dates information that comes in from hotel reps
and convention and visitor bureaus.”
With time critical in most cases, site selection firms often
promise a range of competitive bids from hotels within 24 to 48
hours. “We eliminate what can be both a time-consuming and
demoralizing process,” says EventSource president Brian Langer.
After a hotel is selected, site selection firms frequently
negotiate the contract on behalf of the planner. After the contract
is drawn up, the site selection firm presents copies of the
document to both the hotel and the meeting planner to review and
make any desired changes. According to Hardecky of American
Management Solutions, the contract negotiation service provided by
site selection firms is another time-saving feature. “They can
often get the same rate right off the bat that it takes me several
rounds of phone calls to get,” she says.
Contract Negotiation
When a hotel comes through with rooms and meeting space on short
notice, why get too picky about the contract? After all, you were
lucky to get anything at all this close to the meeting. At this
point, you can’t quibble about rates, amenities or the quality of
the meeting space. Or can you?
You can indeed, says attorney Kim Zeitlin, partner in Zeitlin
& Buonasera in Washington, D.C. “Hotels may take the attitude
that they’re doing you a big favor by giving you rooms on short
notice, but don’t accept this,” he says. “You’re actually doing
them a favor by taking rooms that would otherwise probably go
unsold. In the hotel industry, rooms not sold within 30 days are
usually assumed to be a loss.”
Zeitlin recommends planners negotiate for the same sort of
desirable terms they would expect for a meeting planned well in
advance.
The same basic theory holds true when it comes to the contract.
While many aspects of a last-minute meeting may require taking
short cuts, contract review and negotiation should not be among
them. Zeitlin advises planners to not give into the temptation to
overlook the fine print and stresses the importance of questioning
any ambiguous items.
“Big problems can arise when meetings are planned in haste and
contract issues are slighted,” he cautions. “Always read and review
the contract carefully. When you’re under the gun, you have to be
even more careful than usual.”
In particular, clauses on matters such as attrition and
indemnity should not be glossed over; if possible such clauses
should be taken out of the contract. “Don’t let the hotel try to
make big demands about attrition at 30 days out it shouldn’t even
be an issue,” Zeitlin says.
Even when working with a site selection firm or other third
party, Zeitlin recommends planners take a proactive role in
defining the contract terms and provide as much information as
possible about the group requirements. “You have to make sure your
specs are very clear to the intermediary,” he says. “They can only
know what you tell them.”
And while it may be expedient to let a third party handle
contract negotiation, the final review process and the signing of
the contract should always be in the hands of the end user. “Never
let an intermediary sign the contract,” says Zeitlin. “Too often
I’ve heard people shriek ‘You signed what?’ Then it’s too
late.”
Group Air
Fares
Your boss calls a 20-person
meeting for 12 days from now. At this point, you’ll be lucky just
to get your people there; you’re not about to bargain hunt for air
fares. But you may not have to settle for exorbitant prices. In
fact, you could end up with better deals than if you had booked the
tickets six months ago.
In some cases, a planner who needs to book on short notice has
the clock working in her favor, says Brenda Davis, manager of group
and incentive sales development for Houston-based Continental
Airlines. Normally, an airline meetings department bases a decision
about group discounts on the market’s history for that time of
year. The closer in the meeting, the less guessing and more
negotiating an airline can do. “We may be more aggressive in our
pricing because we can pinpoint better how full that flight will
be,” says Davis.
For any group, Continental usually offers a 5 percent discount
on published fares or 10 percent off unrestricted tickets. For
short-term bookings, individuals can apply those same group
discounts toward the airline’s weekly Cool Travel Specials,
last-minute fare deals sent to registrants via e-mail.
American Airlines has a program designed specifically for
last-minute meetings. Group City Specials work a lot like
last-minute deal programs for individuals. Good for travel up to
three months out, the city pairs are faxed or e-mailed monthly to
group travel planners. The savings can be huge, according to George
Coyle, product manager, group meeting and sales, for American
Airlines in Dallas. “If you’re looking at a full coach rate,
savings could be as high as 60 percent,” he says.
Airline sources and planners offer the following tips for
getting the best deals on short notice.
Be flexible about time. On popular business
routes, a morning flight on a smaller plane may be full, but a
later flight on a larger plane may be wide open. Coyle adds that
Tuesdays, Wednesdays and Saturdays are usually lighter travel days
and may offer discount opportunities, especially in big markets
like New York City or Los Angeles, where major carriers run up to
20 daily flights.Split them up. Deals vary depending on the
number of attendees per flight. For the most part, the fewer the
better, say airline representatives. Most group departments keep in
close communication with revenue management, which keeps track of
the number of discounted and full-fare seats. While an airline
wants to fill the empty seats, says Continental’s Davis, “We don’t
want to replace a full-fare passenger with a group passenger.” She
recommends breaking the group up into several flights, so fewer
discounted seats are booked per plane.Consider zone fares. For those who need to
make connections, finding discounted group seats can be even more
difficult. To get a last-minute deal, both legs need to have the
available seats. “If we have a group that wants to go to L.A., they
have to go through Dallas,” says Robin Westbrook, group meeting and
incentive planner for Corporate Travel Planners, Inc., based in San
Antonio, Texas. “Even if the flight from Dallas to L.A. is wide
open, the San Antonio to Dallas leg is a busy route and often fills
up.”Faced with a short lead time, Westbrook usually signs a contract
that gives her zone fares, a 5 to 10 percent discount off published
fares, or a combination of each. She’s also sure to have the
contract turned around in 24 hours, so she can start ticketing
right away.
Carla Benini
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