For Appearances' Sake
Though the perception issue is not quite as heated as it was a year ago, many firms are treading lightly and trying to remain under the radar when they hold their luxury events.
For example, planners have asked hotel staff to be discreet when publicizing their meetings. Jim Waldrop, general manager of The Wort Hotel in Jackson Hole, Wyo., says he has had requests from firms to not have their company's name or meeting information included on reader boards. "Though they were legitimate events, with training and board meetings involved, they were really flying under the radar," Waldrop notes. "It seems as if every meeting has a strategic component now, and yet they're still worried about it."
Pam Russell, director of catering and conference services at Kiawah Island (S.C.) Golf Resort, has experienced similar requests. "We've had to post ‘board of directors' as the group's name, in place of the company," she says. "When you have three ‘board of directors' meetings listed, it can get confusing, even comical."
Nonetheless, Russell sees a light at the end of the tunnel: "The big groups will come back. Some that we had at the property three years ago are starting to express interest now for 2011. They want to come back, but everybody's holding their breath."
Jill DeMone, director of sales and marketing for the Mandarin Oriental Miami, is confident that the situation has improved. "Six months to a year ago, even if a meeting had great value, it might have sent out the wrong message. But it's getting easier for high-profile companies, like Troubled Asset Relief Program recipients, to hold meetings."
A year ago, the future of luxury meetings seemed a bit shaky. Many firms feared that, with a recession and backlash against corporate excess, events that bore even a trace of more-than-basic comfort would be subject to harsh scrutiny.
Today, the outlook is bit more upbeat. According to a number of industry professionals, luxury is not necessarily verboten for meetings and events. Rather, it's been recast and redefined to keep in line with corporate America's determined focus on streamlined budgets, return on investment and the reining in of opulence in any form.
"Obviously, budget has an impact on luxury. But it doesn't preclude anyone from creating the right experience, which may include luxury," says Mary MacGregor, vice president, account development, for Chicago-based BCD Meetings & Incentives. "I really think it is more about making sure the budget is aligned with the corporate culture and ROI of the event, so stakeholders and shareholders see that top executives and participants are behaving in alignment with the corporate promise."
For many meeting professionals, particularly planners of repeat events that traditionally are high-end, delivering the new luxury is a challenge. "It's a tough balancing act: avoiding extravagance for the company's sake, but giving attendees the same luxury experience they are used to," says Candace Burroughs, president of Laguna Beach, Calif.-based Kustom Incentive Concepts.
Following are examples of how industry pros are keeping the luxury aspects of their gatherings, but under new parameters.
• Shifting gifts. "The days of the lavish take-away gift are fading quickly; many of these items were left behind for the hotel housekeeping staff or taken home to family and friends and not used by the person for whom they were intended," says Steve Kemble, president of Dallas-based Steve Kemble Event Design. Instead of items such as bottles of wine or crystal pineapples, which one planner says were a staple for her Hawaiian programs, Kemble recommends more utilitarian gifts such as pens, notepads or business folios.
Another norm for some high-end events was the habit of placing nightly pillow gifts. When the practice had to be cut from a recent meeting Candace Burroughs had planned, she tried to make attendees feel special by leaving in their rooms a handwritten note or a saying that had something to do with the day's activities. "The notes let them know their contributions are wanted, needed and appreciated," she says.
• Trading down. For some firms, luxury hotel chains or five-star properties are off-limits. Such mandates might come from the government, procurement departments or even top executives. Chris Gaia, vice president, marketing, for Fenton, Mo.-based Maritz Travel, says there has been a marked shift from five-star to four-star hotels, even though "there is little difference in pricing between the two now."
Terry Singleton, CSEP, president of Atlanta-based CCP Events Inc., recently had two clients who traditionally held events in ultraluxe properties shift to less opulent venues. One moved to boutique properties that she says "give an upscale feel with a great rate," while the other shifted to a four-star property in a trendy shopping area.
Adds Steve Kemble, "Many of my clients currently are selecting hotels and venues that have a built-in atmosphere and do not require a lot of décor, such as a boutique hotel with ballroom windows overlooking a fabulous garden."
• Leveraging perks. According to Jill DeMone, director of sales
and marketing at the Mandarin Oriental Miami, room rates can decline
only so much before the property no longer is considered a luxury
product. Hence, hotels are offering more perks than ever before --
e.g., free breakfast, free Internet access for attendees -- and
planners should take advantage of them. "These extras typically cost
the hotel very little, but they reflect great value to the customer,"
DeMone explains.
• Tapping local talent. Nikki Nestor,
president and CEO of Carlsbad, Calif.-based incentive firm World Class
Travel by Invitation, has eschewed using headline acts for meetings and
events. "We're not flying in Huey Lewis now; instead, we are using more
cultural entertainment reflective of the destination," she says.
Candace
Burroughs also relies more on local talent rather than name performers
these days. "In my RFP, I require the local entertainers we hire to
interact with the group. For example, before they perform, they give
salsa lessons."
• Trimming the head count. Several
planners said they are able to keep the same standard of luxury for
their events as they have in the past by cutting back in one of two
ways: reducing the number of attendees or, says Maritz's Chris Gaia,
eliminating one night from the agenda.
Bebhinn Gallen,
director of catering sales for the Ritz-Carlton Battery Park in New
York City, notes that fewer meetings include spouses. Meal and event
times at luxury meetings also are being scaled back; Gallen notes that
receptions are now running three hours, maximum, rather than four or
five.
• Borrowing staff. Jim Waldrop, general manager
of The Wort Hotel in Jackson Hole, Wyo., says providing meticulous
customer service, achieved by making sure the property and the meeting
are adequately staffed, enhances the luxury aspect. Attendees will feel
well cared for if, for example, registration and baggage handling are
super-efficient, and planners can rely on the convention services
manager and other hotel staff to fill gaps if their on-site support
staff is thin.
• Curtailing activities. One change Pam
Russell, director of catering and conference services at Kiawah Island
(S.C.) Golf Resort, has noticed is a decrease in the number of leisure
pursuits. "Instead of offering a choice of activities, planners are
saying, ‘It's this or nothing.' Or, they might offer two choices
instead
of four."
• Toning down parties. Bebhinn
Gallen has noticed that events have minimized entertainment and décor.
"Before, when planners had healthier budgets, they might use a gambling
table, a deejay and a fortune teller; now it might just be a deejay and
votive candles on the tables," she says.
But fewer props or
flowers in an arrangement don't have to affect a meeting or event's
luxe level. "It is amazing how simplicity translates to luxury; events
that reflect a simple and classic elegance are all the rage now," says
Steve Kemble.
• Sourcing local F&B. Food and drinks
are key elements of any event, but meals, breaks and receptions don't
have to be over-the-top fancy or ridiculously expensive to qualify as
luxe. Pam Russell says the focus should be on giving attendees great
food and not worrying about "icing the cake." Kiawah Island Golf Resort
has adapted to lower budgets by using locally based food products --
beef, shrimp and tomatoes are plentiful in the area. "They cost less
and we're supporting our local economy," she notes.
• Ask the chef. Some
planners are consulting chefs for tips on how to make all the meals and
breaks at their luxury meetings look extravagant but without breaking
the bank. At the Ritz-Carlton Fort Lauderdale, for example, executive
chef Christian Claire has recommended that chefs cook meals at
individual stations rather than buffets to enhance the interactive
experience. This includes serving smaller tasting plates such as tapas,
which showcase a chef's personal flare and range.
• Tapping on-site resources. One
planner says that since she can't hire a destination management or
production company for her events any more, she consults with the
property's catering department. They can give her ideas for theme
parties and events based on their own experience, and they can discuss
what they have in the way of props and décor that she can use.
• Adding unique experiences. When
asked what attendees consider a luxury today, several industry
professionals cited "experiences" vs. activities. Mary MacGregor cites
a recent example of how, for an incentive program in New York City, the
client gave each of the participants a car and driver for the day, so
they could explore the city their own way, at their own pace. "It was
meaningful and memorable," she says.
• Stressing CSR. A
number of luxury meetings now include corporate social responsibility
components, which give a group or event more gravitas, and at the same
time offer participants the chance to work as a team and meet people in
the local community.
A number of suppliers can custom-create
or recommend CSR activities for programs. One example is Ritz-Carlton's
Community Footprint program
(corporate.ritzcarlton.com/en/about/community.htm), which incorporates
into meetings a nonprofit social activity, such as creating community
gardens in distressed neighborhoods.