While the volatility of the recent past has steadied, financial and insurance events being planned for 2014 will be affected by higher hotel rates and airfares, a dearth of hotel space at desirable times and the need to accommodate attendees' 24/7 work schedules. These and other trends are outlined on the following pages, along with insights from leading experts on what's behind these developments.
Budgets are flat
One of the most notable factors financial and insurance planners now face is that their budgets are not growing. According to a survey conducted last year by the Financial & Insurance Conference Planners, the Chicago-based industry association, budgets were the same in 2012 as they were in 2011 (on average, $3 million per event), and respondents predicted just slight increases for 2013. The increases did not come to fruition for many firms, and industry experts expect budgets to remain flat in 2014.
After the economic instability of recent years, the fact that budgets have stabilized isn't bad news. But meeting elements such as hotel and air transportation costs have continued to rise. Moreover, according to Carlson Wagonlit Travel's 2014 Travel Price Forecast, U.S. airfares could rise by as much as 1.2 percent during the year, while hotel and transportation rates might climb as high as 4.9 and 1.3 percent, respectively. Thus, those flat budgets essentially are buying less.
One way planners can work with changing market conditions is to reconsider their traditional meeting patterns, such as dates and seasons. "Some of these financial and insurance firms have traditionally held their events during the same month or week of the year, and during the same days of the week, such as Sunday to Wednesday," says Jim Schultenover, president of the Washington, D.C.-based Krisam Group, which supplies national sales support for some 250 hotels and destination management companies in 90 destinations. If these companies consider shifting any of these components, Schultenover explains, they have a better chance of getting the hotels they want at a better rate.
Another way groups are coping with higher costs is by trimming their events by a day, typically from four to three, according to Marty MacKay, president of the international destination management company Hosts Global Alliance.
Space is tighter and decisions are quicker
As the hotel market rebounds, financial and insurance groups are facing more competition for space in the resulting sellers' market. Colleen Brzozowoski, director of sales for the Krisam Group, which recently hosted its annual Insurance Advisory Council at the Bacara Resort & Spa in Santa Barbara, Calif., says hotels now are cracking down on a "first option" courtesy they typically extended to groups prior to a contract being signed.
In the past, hotels would allow a group a week or two either to sign a contract for agreed-upon dates or else release those dates, provided the group was first-in to request that time period. But now, says Brzozowoski, properties increasingly are holding such groups to a time frame of just 48 to 72 hours to accept the contract, if another group requests the same dates and is ready to sign on the dotted line.
Work time is on the agenda
An interesting new trend is that attendees' pressing day-to-day work concerns now are often factored into financial and insurance events, so attendees can keep up with their endless stream of emails and other business matters -- and avoid multitasking during sessions.
To that end, Tom Wilson, division vice president and financial services sector lead for Fenton, Mo.-based Maritz Travel, says some companies are setting up work stations, scheduling longer breaks or otherwise providing more flexible schedules for attendees to take care of the business they left behind.
Technology is gaining traction
In M&C's last look at the industry, in July 2012, financial/insurance lagged behind other industries in adopting technology and social media at meetings. As we reported then, an FICP survey revealed that just 15 percent of members used social media for their events. While the study has yet to be updated, today FICP leaders and other industry experts say that number is increasing.
Maritz's Tom Wilson notes a major shift in how people want to receive information about an event. "We are seeing a big increase in text messaging," he notes. "Just two years ago we collected data about attendees' interest in receiving texts, and the numbers were around 30 percent; today, 80 to 90 percent of attendees prefer them."
Wilson also finds that technology and social media are being used to enhance various elements of financial and insurance incentive programs, including program announcements, the tracking of participants' standing during contests and post-program videos.
FICP Update
For an inside industry perspective,
M&C spoke with Kelli Livers, CMP, CTE, current chair of the Financial & Insurance Conference Planners' board and director, travel and administrative services, at Batesville, Ind.-based Forethought Financial Group.
How is FICP keeping up with a changing industry, as well as addressing changing member needs?
FICP has been very fortunate in the past few years to experience rapid membership growth; in fact, we're up 26 percent, year-over-year. With that growth, the board is focused on ensuring that our member offerings -- education, in-person events, networking and our new online community, TheNetwork -- are on track to serve the community.
We are taking a good hard look at our in-person event model to ensure we are meeting the needs of our members and hospitality partners that help support the association. We are actively engaging our members via surveys and focus groups to help the board make those decisions.
How do you describe your association's mission?
FICP exists to provide a forum/environment for our members to network, receive education and share best practices while also motivating them so they can continue to provide excellent planning services to their organizations.
We offer educational tracks targeted to both financial and insurance groups, and we also promote and encourage mentoring between members. It is a two-way street -- a tenured planner like myself can be in a breakout with a younger planner and get a great tech tip.
Additionally, as the industry changes and evolves, it is always a good idea to attend refreshers on various topics, such as contracting, which we provide.
What makes financial and insurance meetings different from some other types of meetings?
Our members service a broad spectrum of events -- from board meetings to educational conferences to incentives. We, especially financial planners, have to be up on the current U.S. Securities & Exchange Commission and Financial Industry Regulatory Authority regulations for meeting development and expense tracking and reporting. On the incentive side, we have to be aware of what our competitors are offering and be creative and motivating in our programs.
Our planners have to be financial wizards, creative types and customer service reps, all at the same time.
At FICP, board chair Kelli Livers, CMP, CTE, says technology will remain a strong focus for the organization. She says members are now embracing registration tools, event apps, iPad usage, presentation tools, and electronic means of staging and production -- a far cry from where they were 18 months ago.
Among FICP's efforts to enhance its technology offerings is the recent launch of TheNetwork, a new online community for members. In addition, notes executive director Steve Bova, a "community manager" has been hired to oversee website content, social media and communications messaging for the association. (For more, see "FICP Update" left.)
International travel is returning
Incentive travel finally is on the upswing, as financial and insurance firms have reinstated motivational events that were canceled or postponed during the recession. Once again, sponsoring companies are looking to motivate participants with enticing destinations, often overseas.
According to Mark Bondy, president/partner at Traverse City, Mich.-based Viktor Incentives and research chair/trustee for the Site International Foundation, "Our insurance clients are venturing further, returning to the international travel they'd pulled back from because of the economy, unfavorable currency exchange and world events over the last five years."
Pent-up demand, Bondy says, has piqued interest in traditional favorites such as Paris, Ireland and Munich, Germany, as well as to more offbeat destinations like Monaco, Berlin and French Polynesia.
The Monaco Government Tourist Office notes that eight financial and insurance companies will hold motivational events in the principality in 2014. Of that group, one firm, LPL Financial, with headquarters in Boston, San Diego and Charlotte, N.C., will send its top performers to the destination for the first time.
Domestic destinations are seeing an uptick
Stateside, several destinations are experiencing an upswing in financial and insurance meetings business, including Las Vegas.
"We have definitely seen an increase here, especially on the financial side," says Joshua Jones, vice president of Las Vegas Hosts, a DMC. "Vegas has had that stigma [following the 2008 crackdown on corporate excess in financial and insurance events], and many financial companies stayed away for a bit." Jones adds that planners recognize that having a meeting in Vegas attracts attendees, and the city has a lot of hotel room inventory, which is key in this market.
Suppliers in San Francisco and Boston also are garnering more business from financial and insurance meetings for 2014 and beyond.
Among the reasons why Boston appeals to groups, notes Ally O'Connor, president of NXTevents, is ready access to the city's prestigious educational institutions, including the Massachusetts Institute of Technology's Sloan School of Management and the Harvard Business School, which can host sessions as well as provide top faculty members as speakers.
CSR activities thrive
Corporate social responsibility, which became a key component of financial and insurance meetings following the AIG scandal, have become a fixture of many industry events. "They are now seen are part of a firm's corporate culture," says Ira Almeas, president of Impact Incentives and Meetings, based in East Hanover, N.J.
As CSR sensibilities mature, groups now look to align their good deeds directly with their business or industry. For example, several financial groups, including Wells Fargo, have organized activities that benefit KIVA (kiva.org), a nonprofit firm that provides micro loans to entrepreneurs in third-world countries.