Chapter 5 Selling the Corporate Meetings Market Convention

Chapter 5 Selling the Corporate Meetings Market Convention Management and Service Eighth Edition (478 TXT or 478 CIN) Courtesy Loews Hotels © 2011, Educational Institute

Corporate Meeting Trends • More regional rather than national meetings • Looking to second-tier cities • Using telepresence or webinars to save on travel costs • Less flamboyant and more strategic and practical • Corporate meetings offer the greatest potential for growth • A majority of corporate meetings have fewer than 50 attendees, making it an ideal market for small properties © 2011, Educational Institute 1

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What Corporate Meeting Planners Look For 1. Quality food service • F&B functions are major contributors to success of an event • Very important to planners and attendees 2. Adequate meeting space • IT / Business centers 3. Service • Most important element in repeat business 4. Enough guestrooms • Prefer to use only one host property © 2011, Educational Institute (continued) 3

What Corporate Meeting Planners Look For (continued) 5. Convenient location • Downtown, airport, certain suburban properties, and conference centers • Boutique/lifestyle hotels 6. • • 7. • • Attractive location Consistent with image of the corporation Especially true for incentive meetings Security Prefer to meet away from busy areas Often prefer to be the only group in the hotel © 2011, Educational Institute 4

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Types of Corporate Meetings 1. National and regional sales meetings 2. New product introduction/dealer meetings 3. Professional/technical meetings 4. Management meetings 5. Training meetings 6. Stockholder/public meetings 7. Incentive meetings © 2011, Educational Institute 6

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Sales and New Product Introduction/Dealer Meetings Sales Meetings • One of the largest sectors of the corporate meetings market • National attendance about 150, duration 3 -4 days • Regional attendance about 65, duration 2 -3 days • Meetings may involve new product introductions, sales training, or morale building • Good source of repeat business for hotels • Generally staged by the sales and marketing department of each division of a company © 2011, Educational Institute (continued) 8

Sales and New Product Introduction/Dealer Meetings (continued) New Product Introduction/Dealer Meetings • National and regional in scope • Method of creating enthusiasm • Vary greatly in size and duration • Attract top company management, stockholders, and the press • Excellent chance to "show off" the property and attract new business © 2011, Educational Institute 9

Professional/Technical and Management Meetings Professional/Technical Meetings • Often take seminar and workshop formats • Lecture and demonstration by consultants, educators, and/or vendors © 2011, Educational Institute (continued) 10

Professional/Technical and Management Meetings (continued) Management Meetings • May be regular events, or in response to specific situations • Usually small in size, but premier facilities are required • Attendees are prospects for divisional or company meetings • Geographical location varies greatly • Commonly last two days © 2011, Educational Institute 11

Training and Stockholder/Public Meetings Training Meetings • All levels of corporate personnel require training • Training meetings in hotels account for the largest number of corporate meetings • Attendance is usually less than 50 • Duration is usually 3 days • Special requirements: A/V capability, minimal distractions, adequate light, prompt service • Rarely require prestigious locations • Trainers tend to return to hotels where everything worked out well © 2011, Educational Institute (continued) 12

Stockholder/Public Meetings (continued) Stockholder/Public Meetings • Meetings for nonemployees • Public relations and industrial relations hold exhibits and meetings © 2011, Educational Institute 13

Incentive Meetings • 85 percent of all incentive trips include a meeting • Attendees and planners look for first-class service and accommodations • Bookings usually guaranteed • Participants use all of the facilities of the hotel • Usually indicates high revenue • Group incentive travel averages 130 attendees for a 5 -day trip • Individual incentives are growing in importance © 2011, Educational Institute 14

Characteristics of Corporate Meetings Small meetings Time cycle Lead time Geography Attendance • Mandatory • Highly predictable • Use of rooming lists and VIP lists common Duration: average 3 days © 2011, Educational Institute (continued) 15

Characteristics of Corporate Meetings (continued) Exhibits Meeting room requirements • Especially need breakout rooms near larger rooms Repeat business Multibooking potential One meeting—one check: master account Meetings business brings other business © 2011, Educational Institute 16

Corporate Meetings—Cycle/Pattern and Lead Time Cycle/Pattern • Irregular • As-needed basis • Usually midweek Lead Time • Short compared to associations • Incentive meetings: 8– 12 months to 2 years • Annual sales meeting: 8– 12 months • Most others: 3– 6 months • Crisis meetings: virtually no lead time © 2011, Educational Institute 17

Corporate Meetings—Geography and Kinds of Sites Geography • No pattern • No reason to vary site to attract attendees, since attendance is mandatory • Convenience is most important geographic criterion Kinds of Sites • Variety; depends on purpose of meeting and position of attendees • Each property has the right features to host some kind of corporate meeting © 2011, Educational Institute 18

Corporate Meetings—Repeat Business and Multibooking Potential Repeat Business • Training meetings • Crisis meetings © 2011, Educational Institute (continued) 19

Corporate Meetings—Repeat Business and Multibooking Potential (continued) Multibooking Potential • Same meeting program may be repeated in several locations • Good for a) chains, b) hotels with cooperative agreements with hotels in other cities, and c) hotels that use independent hotel representatives • More difficult for independent hotels to attract corporations that repeat meetings © 2011, Educational Institute 20

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Techniques for Selling Corporate Meetings • Sell the decision-maker, not a go-between. • Start at the top of the organization chart. • Pay attention to tomorrow’s decision-maker. © 2011, Educational Institute Courtesy of Loews Hotels and Resorts 23

Corporate Meeting Decision-Makers • • • Full-time meeting planner Company president Marketing and sales executives Advertising and sales promotion managers Meeting specialists/third-party planners © 2011, Educational Institute 24

TEST 1 NEXT WEEK • • • Review Chapters 1 – 5 25 Multiple Choice Don’t forget your scan trons First Article Review due Project Ideas (email or written ok) • QUICK REVIEW © 2011, Educational Institute 25