BUCOM Beat

Great Article from TRAVEL WEEKLY

2009-01-12T10:29:00.005-06:00

Interview of 11 Industry CEO's, including:

Stephen Holmes - CEO, Wyndham Worldwide
Michelle Morgan - CEO, Signature Travel Network
Larry Kellner - CEO, Continental Airlines
Stephen Perry - CEO, New Orleans Metropolitan CVB
Dan Hanrahan - CEO, Celebrity and Azamara Cruises
Richard Launder - President, Travel Corporation USA
Jeff Clarke - CEO, Travelport
Jay Rasulo - Chairman, Walt Disney Parks and Resorts
Robert Salerno - CEO, Avis Budget Group
Doug Anderson - CEO, Carlson Wagonlit Travel
Cristopher Rodrigues - Chairman, VisitBritain

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HAPPY NEW YEAR!!!

2009-01-05T14:52:00.004-06:00

We wish you a very happy, healthy and prosperous 2009!

Holiday Showcase

2008-12-17T15:48:00.004-06:00

The Association Forum of Chicagoland once again hosted it's Annual Holiday Showcase on Tuesday, December 16 at Hyatt Regency Chicago's Grand Ballroom. Having been to a number of similar events in the past, I was expecting to see some tempered expectations from the show exhibitors, but was shockingly surprised by the enthusiasm for 2009.

I'll first recognize the fact that the show floor was saturated with hotel sales people from around the country. Hotel sales people are, by nature (or by sheer willpower) a very upbeat and optimistic group and always seem to be on top of the world. Adding to the collective jovial atmosphere was a veritable blizzard in Chicago on the day of the show, which put some folks' commute home at nearly four hours. I can only imagine the effect that had on some attendees flight arrangements! That being said, everyone I spoke with was extremely positive with the business they have in hand at the moment. Each and every one of them were very concerned about the coming slowdown, but had not seen a measurable change in their daily workload as of yet.

While the Motivation (IT&ME) Show was much more broad in terms of scope and level of exhibit investment by sponsoring companies, the Holiday Showcase seemed very succinct and to-the-point. Booth spaces were very small and aisles were very tight, which made navigating difficult at times (particularly when attempting to avoid detection by certain individuals). Most hotel chains took the less-is-more approach, with the host Hyatt being the lone exception. Even Las Vegas was very subdued... and nothing LV does is subdued!

The reps from the large properties and chains that I spoke with all proclaimed to be very busy with plenty on the books for Q1 2009. But I understand their perception of my role, and any other response would be sales suicide.

PRESS RELEASE FROM WEBSITE:
3,425 Attendees, Exhibitors Discover What’s Next at Holiday Showcase 2008

CHICAGO – More than 2,311 association industry professionals discovered "what's next" for association management through informative and inspiring education sessions and unequaled networking and business opportunities today during the Association Forum of Chicagoland's sold-out Holiday Showcase 2008 at the Hyatt Regency Chicago.

This year, 1,114 exhibitors showcased their products and services to association professionals and corporate meeting planners during Chicagoland's annual No. 1 business services and meeting sites exposition. More than 25 percent of exhibitors were business services and nearly15 percent were new to Showcase.

The 20th anniversary of Holiday Showcase included a motivating and energizing presentation by Center Stage speaker Nancy Giles. The TV and radio talk show personality and contributor to CBS News Sunday Morning shared her views on race, politics, career choices, and social networking. Before Giles took the stage, Showcase attendees were formally introduced to the Forum's new president and CEO, Christie Tarantino, CAE, who officially will lead the Forum Jan. 5.

"This year marks 20 years of contacts, contracts, content and celebration at the No. 1 business services and meeting sites expo in Chicagoland," Tarantino said. "And the Forum will continue to offer an unparalleled one-stop shopping experience, full of actionable wisdom and opportunities for association and meeting planning professionals to expand and share their knowledge for many years to come."

Participants also chose from a diverse array of learning topics, including the Knowledge Lab, learning stations that covered going digital with publications, demystified Second Life, provided insight on gaming for education to engage members and explored advanced applications and what's next in Web 2.0. There also were sessions on delivering high impact meetings, maximizing negotiations in a tough economy, determining how information sharing in Cyberspace impacts associations' intellectual property protections and unique insights from ASAE & The Center's "Decision to Volunteer Study."

Participants were treated to a special lunch performance by the Jesse White Tumblers with Illinois Secretary of State Jesse White as part of the act. The day concluded with eight exceptional grand prizes with a minimum value of $2,500 and 30 exciting booth prizes.

"The largest gathering of business services and hospitality exhibitors in the Midwest continues to be an ideal experience," said Holiday Showcase 2008 Chair Bill Grusich , CMP, president of hinton + grusich. "The learning sessions were fantastic, addressing all staff specialties, needs and career levels in association management and the opportunities for association managers to connect with peers and exhibitors were plentiful."

Holiday Showcase 2009 will be Dec. 15 at the Hyatt Regency Chicago. Details will be available in June at associationforum.org.

Starwood, Hyatt and Marriott are all pushing ahead with very ambitious expansion plans over the next three years, so I guess they see the light at the end of the tunnel! I overheard many exhibitors saying that they had a better show than last year. Generally, the exhibitors seemed pretty positive about their experience at Holiday Showcase 2008, but the hospitality industry as whole, is a pretty upbeat bunch. We have to be!

Stay Classy San Diego

2008-12-17T15:01:00.022-06:00

We just got back from hosting an investigator meeting for a large pharma client in beautiful San Diego. We once again decided on the Hotel Del Coronado, one of my favorite hotels in California. Even though the hotel is extremely old by Southern Californian standards, I feel confident in saying that you can't go wrong holding a mid-sized meeting at The Del.

This luxury beachfront hotel was built over 120 years ago and still maintains it's National Historic Landmark status. Although the resort is steeped in history (world's largest resort when opened in 1888, first hotel to use electric lighting-certified by Einstein himself, site of banquet celebrating Lindbergh's first trans-Atlantic flight, and host to the likes of Elvis, Marilyn Monroe, Babe Ruth, Charlie Chaplin and 15 U.S. Presidents) hotel management has done a terrific job of continually updating the facility to keep with the times. The Del was recently purchased by KSL Resorts and has been rewarded with AAA's coveted Four-Diamond rating in addition to being ranked among the "Top 10 Resorts in the World" by USA Today.

The last upgrade was completed in 2005 and included a top-to-bottom renovation of all guest rooms. The 65,000 sq ft of meeting space is laid-out conveniently and the conference services staff was very attentive to our specific needs. Even the NY Times gives it a great review!

Physicians flew in from around the globe for this important and intensive four-day session, so attention to detail and teamwork were of utmost importance. We once again partnered with PRA Destinations, who managed the transportation flawlessly, as usual. The best night out was a group dinner function at Island Prime, about 20 minutes away from The Del. Perched on stilts over the bay, the dining room and deck provide stunning views of San Diego's skyline and Coronado Island. The menu was very well-rounded and had enough to suit our group of discerning guests. The results from the post-program surveys told us a great time was had by all.

All in all, the meeting held in San Diego was a huge success. The old-world charm combined with the modern-day luxury of the Hotel Del Coronado make it a can't miss property for medium-sized meetings. While the physicians and study leaders had a packed schedule of meetings and breakouts, the ideal location, beautiful climate and evening events provided them with enough relaxation to maintain their focus. Everything went smoothly, the weather was impeccable and our client was very pleased– what more can I ask for?

Procurement is from Mars, Meeting Planners are from Venus

2008-12-12T17:05:00.008-06:00

The premise behind aligning procurement with meetings and incentives is to create value with volume buying. The many nuances of the planner/procurement relationship have been well-documented and are different at every company. Regardless of the situation at your company, the key to developing a win-win partnership is seeing both sides of the picture. Like any relationship, understanding each others motivation will allow planners and procurement to meet in the middle- to achieve a successful program, while internally aligning overall procurement goals.

Just like most meeting managers saw the savings inherent in centralizing meeting components, which were historically booked by various administrative assistants without experience, procurement managers want to ensure that meetings departments are sourcing, deciding and buying these elements within the proper framework. Ensuring that meeting spend goes into appropriate ‘buckets’ rather than being spread out over various budgets allows procurement to have better visibility and leverage that spend. The ideal result is to balance program goals & objectives with the demands of the procurement framework to find a creative solution to the needs of the company. There is no template to making the procurement/planner relationship work, however the most import step to developing a true partnership is understanding and appreciating each department’s point of view.

The ‘Divide’ between Planners and Procurement
For a perfect example of the inherent ‘divide’ between planners and procurement, let’s consider we are sourcing a property for a National Sales Meeting. Sourcing tools with eRFP functionality like StarCite are great for certain situations, particularly with multiple events in a short timeframe, however these tools should not be the only sourcing tool used. Mainly because eRFP’s are typically due within 48 hours and do not always allow planners the flexibility to obtain the best overall value for the company. While procurement likes the standardized responses that can be put in ‘dashboards’ that are easy to compare side-by-side, meeting planners know that by picking up the phone and having a conversation with the properties being considered always allows them to obtain a better deal from a total overall cost perspective.

Moreover, most large hotels are overloaded with so many eRFP’s, and as such have developed a canned response to submit because they are too busy working on multiple projects to provide a fully customized proposal. By discussing options with the properties directly, planners are able to negotiate numerous types of concessions (such as free internet, airport transportation, free room nights, room upgrades and reduced F&B) that would not normally be included in an eRFP response.

How do we meet in the middle?
We’ve all heard the same buzzword-laden responses such as consolidate budgets, align goals, develop a cohesive strategy, obtain a holistic view, leverage spend… but how do we do it? The most important first step is for both sides to realize that they want the same thing. They just go about it in different ways.

Meeting planners don’t always appreciate the analytical nature behind procurement initiatives and may feel threatened that their work is being commoditized. Procurement fails to see the value in meeting planners’ creativity and the positive effect that their experience has on reaching a meeting’s objective. A great example to demonstrate this point would be an incentive program. All incentive programs are different- they have different types of qualifiers and varying goals. Unlike a meeting or training audience, incentive qualifiers are motivated by the selection of a given hotel or destination and many times the property itself is what inspires them to win. Experienced meeting planners understand that incentives are a powerful motivator and want to go the extra mile to transform the trip into a true reward. Procurement wants to streamline sourcing, ensure compliance, mitigate risk and maximize investment. Often times it's the added touches- room gifts, gala dinners, and private tours- that procurement wants to cut first. And that's where the conflict begins.

What are the goals of both sides in this example? To obtain the best possible value for the company (if they are not, you have a whole new set of problems to deal with). Procurement sees value in dollar figures while meeting planners view value as the increase in sales resulting from reps striving to win the incentive. Procurement reports to the CFO, while meeting planners have ties to multiple departments, but mostly identify with Sales & Marketing objectives. Each side needs to appreciate the competencies that the other side brings to the table.

Great article from Procurement POV
Great Article from Planners POV

ART & SCIENCE - not SCIENCE vs. ART
It’s looking at the same project through ‘different lenses’ and understanding the opposing contexts of value that will bring the two sides together when there is conflict. Strategic sourcing processes have been honed to a science in many large organizations, whereas meeting planners consider their expertise as more of an art. Each side needs to be able to look at the situation from the other side of the table to develop a successful partnership moving forward. Once both sides are able to appreciate what the other side is trying to accomplish, there won't be anymore 'sides'... just one team.

Simply put: Procurement handles all legal aspects while Planners serve the client. Understanding this fundamental premise and allowing each side to utilize their expertise creates a win-win situation for all.

2009 - Banner Year for Air Travel?

2008-12-11T12:47:00.007-06:00

Much like the recent turmoil in the stock market, the health of America’s airlines industry is changing on a daily basis. Just five months ago, second quarter travel statistics were extremely gloomy as carriers slashed capacity to counter falling demand. But a combination of factors has leveled the playing field in such drastic ways as to make some industry analysts bullish on travel in 2009.

Q2 & Q3 2008 - DOWNWARD SPIRAL
With job losses escalating and job security increasingly uncertain, gas prices breached the $4 per gallon mark all over the country. More people were holding back their travel spending, leaving airlines, hotels and resorts with fewer customers and facing the prospect of another financial crisis.

Airlines found many creative ways to raise fees and fuel surcharges this year as they tried to offset high costs for fuel, which peaked at record levels in the first week of July -- just after the second quarter ended. Average airfares soared to record heights, rising close to 12% nationally, while oil prices reached an all-time high of close to $140 per barrel. The average round-trip flight cost $352, the highest amount on record in the 13 years that the Bureau of Transportation Statistics has tracked ticket prices. Even with the fare and fee increases, most major U.S. airlines still lost money in the quarter.

The financial meltdown of Wall Street and the impending failure of the Big 3 in Detroit were threatening to send further shockwaves throughout an industry that had been walking on shaky ground for more than seven years.

Oddly enough, amid Wall Street's tumble in September, domestic airline revenues rose 14% while capacity fell close to 10%, according to recent data from the Air Transport Association. In the third quarter most all carriers reacted by grounding planes at unprecedented levels in efforts to keep costs under control and ticket prices at levels where they might turn a profit. That is an enormous departure (pardon the pun) from previous economic slowdowns, when airlines slashed prices to attract consumers in an attempt to keep planes full.

Delta, who recently completed its $2.8 billion acquisition of Northwest, recently announced they will be reducing 2009 domestic capacity by 8-10% year over year while international capacity will shrink 3-5%. Airline industry analysts held an equally gloomy view of the industry’s ability to stabilize in 2009, projecting travel statistics to fall in unprecedented numbers as a result of the recession and high price of oil. Even Southwest, which posted profits in 69 straight quarters and gained huge advantages with their fuel hedging strategy, succumbed to market pressures by reporting a quarterly loss.

Las Vegas, once considered immune to recession, was hit particularly hard by the economic & travel downturn. The LVCVA just reported their October data which saw the number of visitors decline more than 10% from October 2007 (still 3 million visitors). Hotel occupancy slid 8.5%, while the average room rate was $115, off 14% from last October. The most striking figure was a decline in Strip gaming revenues of nearly 26%.

Indeed the entire industry was pulling in the sidewalks and bunkering down for the long, long winter ahead.

Q4 & 2009 – FRESH OUTLOOK
Moving into 2009, sunnier days appear closer for most of the major carriers. Even Southwest, once the red-headed stepchild of the industry was optimistic, as it took the title of largest domestic airline. The price of oil, $140 per barrel in early July, has since plummeted to $45 on December 8, which is a huge break for the airlines. All the reorganization and capacity reductions are just starting to take hold, allowing the airlines to operate more effectively while their largest expense has been reduced by more than 50%. Picture yourself getting a raise while cutting back your hours and then having your mortgage cut by half! Sign me up.

What factors contributed to that drop, you ask? Who cares! While the election of Barack Obama (and impending departure of George Bush) most certainly had something to do with the drop in the price of oil, the cost savings not only allow the airlines to operate more efficiently, but also puts a lot of money directly into consumers’ pockets. Instead of emptying their wallets at the gas pump, many people will have a little extra money to spend on vacation getaway deals.

United Airlines made dramatic improvement in on-time performance in October as their reduced schedule allowed more time to turn around its aircraft. United moved from 17th to 10th in on-time performance rankings, according to DOT. Overall industry on-time performance improved 1% in October, while United's score improved to 86.3% from 79.8% in September. With fewer flights, airports are less crowded, more planes are getting to their destinations on time, resulting in fewer delays. Even baggage handling improved significantly!

There may be no cheaper time to travel than this winter, as the sharp drop in demand in Q2 & Q3 forces airlines, hotels and cruise companies to slash fares and lower rates. In what may be a silver lining during a season of economic angst, travelers are finding some of the best deals in recent memory, from half-priced resorts to rock-bottom airfares.

Even Hawaii has become cheaper, where multiday trips are available for less than $1,000 including airfare. The Four Seasons Resort Hawaii, Hualalai is offering a fourth night free, bringing the average rate from $725 to $544 for an ocean view room. Upgrading your room will net guests two rounds of golf and two spa treatments. An off-peak, round-trip ticket from LAX to Honolulu on Delta was selling for $244 last week, a fare which hovered near $900 over the summer. Since August, prices for Caribbean and Mexican cruises have fallen 10% on average. On some ships, travelers have been able to sail for less than $50 per person per day.

While the Las Vegas data mentioned above is not exactly encouraging, many Las Vegas hotels are offering some unbelievable deals to attract leisure travelers. One hotel is offering rooms for $1 a night in hope to lure gamblers to their casino for more lucrative gaming and F&B revenue. The internet is also being blanketed with cheap deals to Vegas offers. You can't go online without seeing at least a few.

So it seems to me that the airlines’ reorganization and consolidation as a result of the recession might just be a good thing for everyone. The airlines will be operating more efficiently while reducing their largest expense by over 50%. Consumers and businesses will be able to reap the benefits of the ensuing reduced fares, which ultimately have a great effect on destinations, transportation, hotels and entertainment.

I guess what I’m trying to say is this: If you want to help the country get out of this recession, go on vacation!

Worthless Stock = Caribbean Vacation

2008-12-10T11:19:00.007-06:00

Talk about innovative thinking! Elite Islands Resorts, the Caribbean’s second largest hospitality chain, announced a very interesting promotion where consumers can pay for vacation stays by using their depleted stock portfolios.

Not only is this a wonderful marketing strategy in terms of developing a new revenue stream in a depressed economic climate, but more importantly, it demonstrates that the company is betting their future on the success of the American Stock Market. The real beauty behind this program is that it is garnering them a ridiculous amount of press (CNBC Interview w/Maria Bartiromo - pop-up window) and goodwill in the marketplace, without costing them a dime.

From their Press Release:
“Award-winning Elite Island Resorts -- the second-largest independently owned luxury Caribbean hospitality group -- announces what could be for many the deal of a lifetime: the opportunity to roll back the value of their currently depressed stocks to a higher value in this recessionary time! Elite Island Resorts will accept up to a maximum of $5,000 per room transaction in stock, utilizing the stock's higher value from July 1, 2008! The stock will be accepted as payment upon transfer to Elite Island Resorts from December 5, 2008, to January 31, 2009, and will be valid for payment of Caribbean vacations now through December 20, 2009. The "Roll Back Your Stock's Value" promotion is subject to space availability and does not include air transportation. Elite Island Resorts has set aside $10 million in resort accommodations toward this program.

The great news is there are no blackout dates; travelers can use this promotion toward peak travel weeks like the upcoming holidays, February and April Breaks -- the premium travel weeks of the year. This is also the perfect opportunity to "purchase" a gift certificate as a holiday gift for loved ones or even a honeymoon and wedding trip for a special couple. The all-inclusive Caribbean resorts featured include on Antigua: The Verandah Resort & Spa; St. James's Club & Villas; Galley Bay Resort & Spa; in the Grenadines, Palm Island Resort; and on Tortola, Long Bay Beach Resort & Villas, with dining plans.

Example: The all-inclusive rate for a family of four starts at $635 per night this December holiday season at The Verandah Resort & Spa, Antigua. If one transferred American Express stock, which closed at approximately $20 on December 4, 2008, toward the purchase of their vacation, Elite Island Resorts will value the stock at $40 per share in resort credit. So a seven-night vacation worth $4,445 can be “purchased" with only 111 shares. Approximately 100 stocks are featured in this one-of-a-kind promotion; a sample includes:
Applicable Stocks High Price as 7/1/08(*)
AET - Aetna Inc. $40
AXP - American Express $40
BA - Boeing Company $65
BAC - Bank of America $24
BK - Bank of New York Mellon Corp. $39
C - Citigroup Inc. $17
CAT - Caterpillar Inc. $74
DELL - Dell Inc. $22
GE - General Electric $27
GOOG - Google Inc. $534
GS - Goldman Sachs Group Inc. $177
HON - Honeywell International, Inc. $51
JPM - JPMorgan & Chase Co. $34
MER - Merrill Lynch & Co. Inc. $33
MET - MetLife Inc. $53
TYC - Tyco International $40
WMB - Williams Company $40
USB - US Bancorp Del $28

"How many of us wished we could have sold our stock before it collapsed this fall? Elite Island Resorts is now giving investors the opportunity of a lifetime to roll back time and the value of their stock to July 1, 2008 to apply it toward a luxury Caribbean vacation. This is the first time in the travel industry that a resort company has accepted stock as payment toward vacations. We are willing to wait for the stock to turnaround," stated Steven E. Heydt, Elite Island Resorts' president.
The Process and Terms: Vacationers "paying" with stock may hold a reservation for a specific date if they wish with a credit card, which will not be charged, while the stock is being transferred into a dedicated Merrill Lynch account. Resort changes and revisions for travel dates will be permitted during the applicable promotional period through December 20, 2009. This program is non refundable after the stock transfer has occurred to the Merrill Lynch account. The promotion is valid for new reservations only. If a vacation costs more than $5,000 the difference will be charged to a credit card.

Individuals may transfer stock for more than one accommodation, and each transaction is limited to a maximum of $5,000 in stock value.”

The success of this plan remains to be determined, but they are off to a terrific start!

Obama Administration's policies on the Travel Industry

2008-12-04T15:28:00.019-06:00

While there is much left to shake out from Barack Obama’s recent election, meetings & travel industry professionals have come out in support of the administration's moves thus far.

While nothing has been laid out in detail, the new administration has given the industry a sign of good faith by agreeing to meet with top travel and tourism officials on December 16 to hear their recommendations on how our industry can help spur the economy.

SPOTLIGHT ON POSITIONS
The main issues being considered include the value of the U.S. dollar, open sky agreements, modernizing air traffic control, airline bailouts & merger approvals, TSA overhaul, passenger rights, funding for rail transportation and infrastructure, visa waivers, and promotion of the U.S. as an international tourism destination. Obama’s position on these issues remains to be seen, primarily because his immediate attention will be focused on the state of the economy, the war in Iraq or the state of the health care system.

The Obama Administration does support the Travel Promotion Act, as he was one of the 51 Senators supporting S. 1661 on the Hill. The House has already passed its version of the bill, whose implementation will largely determine which way the wind blows for the travel industry. A huge budget, federal support and promotional campaigns for inbound U.S. tourism all hang in the balance with this bill. He also supports the Airline Passenger Bill of Rights Act of 2007, as he was a co-sponsor, but that’s mostly a matter of party lines.

Obama is focusing his economic recovery strategy on making the biggest investment in the nation's infrastructure since President Eisenhower created the interstate highway system a half-century ago. Obama will scrutinize 'ambiguous' transportation spending, which in years past went out to states under the guise of improving highways and building bridges without definite plans. We might expect some targeted increases in funding for these programs, which could mean good news for the hospitality industry, because new developments and commercial construction typically surround many of these infrastructure projects.

There is no doubt that the main issue determining the future of the industry is the state of the U.S. Dollar. A sagging dollar will boost inbound overseas tourism, while a rising dollar will allow more Americans to travel abroad. Most Americans would prefer a rising dollar and Obama has said that he favors taking immediate measures to bolster its strength.

If the Airlines are planning to beg for bailout like Detroit is now, they can forget about it. Obama can, and will, hang the private industry out to dry if necessary. Basically, the sum of all this is that under an Obama Administration, the industry can expect reasonable help and sane policies, but the days of handouts and ‘advantageous’ legislation are behind us.

One thing you can be sure of with the Obama Administration; Amtrak will do very well. Obama was a co-sponsor of the Passenger Rail Investment and Innovation Act of 2007, which provides for long term funding for Amtrak. It also doesn’t hurt that Joe Biden has been one of Amtrak’s best customers, having commuted to work by Amtrak’s daily service between DC & his home in Delaware for over 35 years.

REACTION FROM TRAVEL INDUSTRY LEADERS

National Tour Association (NTA)
“NTA believes it is the duty of the travel and tourism sector of the national economy to step up immediately and deliver recommendations to President-elect Obama on how travel and tourism can stimulate the national economy. As a first step, this cross-section of travel leaders has been invited to submit ideas and convene to develop the recommendations. A broad cross-section of travel and tourism leaders has been invited to be a part of creating workable solutions for the struggling economy. The participation of more than 20 organizations has been confirmed including leaders representing packaged travel, lodging, travel agents, cruise lines, ground transportation, air transportation, and special interest travel, according to the National Tour Association, which is managing the effort.”

“We believe it is critical to equip President-elect Obama and his administration with the ways in which travel can fuel the U.S. economy,” said NTA President Lisa Simon, CTP. “We know that travel and tourism is a way to quickly inject new jobs, new income and new tax revenues into our national economy. We simply need a unified plan to make it happen.” Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the entire group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist the economic recovery within the United States. The collective recommendations of the group will be presented to President-elect Obama and his Transition Team promptly thereafter.

National Business Travel Association (NBTA)
NBTA president Kevin Maguire said: “We see great synergies in the goals of our members and those of president-elect Obama, and will work with his Administration to advance those common goals. "Obama’s public diplomacy agenda and promises to work cooperatively with world leaders and businesses are good news for the increasingly multinational business community.
"His emphasis on infrastructure investment bodes well for the long-sought-after upgrade to the Next Generation air transportation system.

"His green economy goals could help airlines, hotels, and ground transportation providers more rapidly deploy services that are both environmentally friendly and economically viable for corporate customers.”

According to many political experts, the next Congress will have its hands full with current pressing transportation issues, but revenue sources for these proposals and projects remain unknown. Obama supports swift passage of a FAA reauthorization bill and believes that “soon we can develop and deliver a modernized air traffic control system. He has often addressed the issue from a passenger point of view, having this summer said, “Airline passengers are sick and tired of delays and cancellations.” Senator Obama would work to build “confidence in the American people that funds will be spent well.” NBTA is working closely with both campaigns to ensure corporate travel issues and concerns are understood. “Travel issues haven’t made it quite to the top tear of the political agenda in Washington, but they are not far away,” said Stewart Verdery, Jr., NBTA Government Relations & Federal Strategies Consultant. “NBTA will continue its work with the new administration to advocate for the policies and proposals that will help make travel more affordable and secure.”

Visa Waiver Program
The current Administration has recently moved to admit seven new countries to the Visa Waiver Program (VWP). Citizens from 34 nations are now able to travel to the United States for 90 days or less without a visa. As Senator, Obama supported the admission of Poland and other countries in Europe, Asia, and South America into the program.

“Given the new Administration’s focus on international cooperation, we’re certain to see additional countries pressing for VWP status,” said Verdery. NBTA has been a leading advocate of strengthening the VWP. Last month, NBTA’s efforts were recognized with an invitation to represent the corporate travel industry at a White House Rose Garden event to acknowledge the advancement of VWP.

“The visa-free travel made possible by the VWP enables the free flow of commerce between the United States and its most important business and trade partners around the world,” said NBTA Executive Director Bill Connors.

Meeting Planners International (MPI-surprisingly quiet)
Tourism Leaders Prepare Recommendations for Obama

Leaders of the travel, tourism and meeting industries will present ideas and recommendations on the economy to U.S. President-elect Barack Obama his transition team and key members of Congress following a December 16 meeting in Washington, D.C.

Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist economic recovery. The collective recommendations of the group will be presented to Obama promptly thereafter.

Travel Industry Association (TIA)
WASHINGTON, DC -- The Travel Industry Association (TIA) today applauded President-elect Obama's announcement of his top-level foreign policy and national security nominees. Roger Dow, president and CEO of the Travel Industry Association, issued the following statement:

"Protecting the homeland while strengthening America's economy and image in the world is one of the great challenges of our time. TIA stands ready to work with President-elect Obama and his team to leverage travel to create jobs and economic growth and strengthen America's image abroad."

"Senator Clinton, Secretary Gates and Dr. Susan Rice all recognize the need for more robust U.S. public diplomacy efforts, and people-to-people diplomacy is one of our country's most effective tools for winning hearts and minds throughout the world. Whether it is for business, leisure or education, the travel experience is unique in its ability to shape public opinion. Studies show that those who have visited the United States are 74 percent more likely to have a favorable image of the country and its policies in the world.

"We are encouraged with the nomination of Governor Napolitano to head the Department of Homeland Security (DHS). Governor Napolitano knows firsthand how to strike the right balance between security and prosperity at our nation's borders. We are confident that Governor Napolitano can improve upon the progress made by the Department of Homeland Security to date, and we look forward to working with her to ensure that our country strengthens its security and attractiveness to foreign visitors."

FAA Reauthorization: The House of Representatives in September passed legislation, H.R. 2881, the FAA Reauthorization Act of 2007, which lays out a blueprint for how to address the systemic problems that affect our air transportation system. The Senate has passed its version of the bill out of committee, but has yet to consider it on the Senate floor.

Across the aviation industry and in Congress, there is wide agreement that our air transportation system needs to make the transition to a satellite-based navigation system from a radar-based system. In addition, our airports need additional runways and other infrastructure improvements to handle the increasing number of air travelers, a number estimated to reach 1 billion annually by 2015. Enhanced technology will eventually allow more real-time information on the position of aircraft, allowing plans to fly closer together and more efficiently use our airspace.

Social Networks & Your Meeting

2008-12-04T10:56:00.054-06:00

The launch of Facebook Connect, a single unified, sign-on application that allows users to go from one protected site to another without logging in again, is going to be a game-changer in many ways. Take me for example. I have 'social' profiles on Yahoo (email), LinkedIn (professional), Facebook (personal), Pharma Planners Connect, iMeet and, sad to say, MySpace (though I only use it to sign in so I can see others' pictures!). In addition, I have separate passwords for PayPal, banking, frequent flier programs, blog, eTrade, eBay, Amazon, email marketing, instant messenger... you get the picture.

Keeping track, protecting and manually entering this information for each site becomes quite cumbersome, especially to busy professionals whose time is crunched and are used to having everything else on the internet so user-friendly. While Facebook Connect and Google's OpenSocial projects are primarily focusing on 'social' sites for the time being, you can clearly see where this is headed.

How do we, as meeting professionals, use this to help strengthen our programs? A great way to start is to build online communities surrounding your most important events. If you are not doing this now, pick one of your most important events and test it out (there are plenty of consultants out there who can help you like QG Partnership - Obama used BSD).

Rather than diving in head first, you'll want to dip your toes in to see what works and what doesn't. The idea behind this is to connect and interact with your audience, giving them the opportunity to participate and influence your program content thus enhancing their experience with your brand/organization. Here is a list of how 35 large companies are using social networking tools. Click here for a terrific list of reason why social networking is great for business.

There are so many applications where social networking can be useful before, during and after a meeting. Picture the usefulness applied to planning an internal sales meeting. One of the main objectives should be providing ample opportunity for reps from different regions to start discussions pertaining to challenges or best practices in the field. Providing an online community with different topic forums will allow reps with similar challenges and interests to gather amongst themselves, discuss and talk about solutions to their individual difficulties. If you're planning a convention, perhaps you'd like to start online discussions before their arrival to the event; to solicit hot topics from key demographics. Keeping your fingers on the pulse of your key targets will allow your team to implement and highlight the subjects of most interest to them into your exhibit presentation. The most important thing to remember is the value of connection, which will allow you and your team to have a better understanding of your constituency- by providing them the forum to connect. But none of this will happen magically, it will require a good deal of planning and a comprehensive communications plan.

With new applications such as Facebook Connect and OpenSocial, it will be much easier for audiences to connect across a variety of previously unavailable platforms. For instance, if one of my suppliers sees my LinkedIn profile through his MySpace account, he might be encouraged to connect with me that way, where previously we would not have had the visibility. Perhaps someone reads this blog and finds out that through my iMeet profile the services my company provide are a perfect fit for what they have been looking for.

Event-specific social networking is also terrific for post-program marketing & communications. I have seen so many events where a tremendous amount of momentum was generated and the audiences were so charged-up, only to have that impact flatline within a week. Design your site to gather feedback and opinions and ask them how you can improve subsequent programs. Continue to update content that will provide your audience incentives to return. You won't get there immediately, but like they said in Field of Dreams "if you build it, they will come".

You will not know exactly how, or even if your strategy is going to work at the start, but the main point is allowing those who want to participate in that fashion the option do so. They will be the ones who will tell you what your strategy should be moving forward, not by words, but by action. One thing I can guarantee you: if you do nothing, you will get nothing in return.

VIRTUAL WORLDS
There is something nerdy about virtual worlds and the folks that inhabit them for hours on end. When I see avatars that look like velociraptors, trying to solicit virtual sex with virtual prostitutes in virtual red-light districts, I picture the person behind the keyboard to be a 30-something programmer, surrounded by empty Mountain Dew bottles and Dorito bags, who hasn't left his mother's basement in two weeks.
The kind of guy with three custom-modified computers, nine MySpace accounts who gets extremely upset if you even glance at his collection of Star Trek action figures.

While that stereotype is very creepy, one thing is certain: virtual worlds are going mainstream, in one form or another, and will continue to have more and increasingly real-world applications. It might take a few years, like the wireless revolution we were all hearing about 10 years ago (which, by the way, is happening NOW!), but one day very soon virtual worlds will revolutionize the meeting planning industry.

While you may have dismissed the thought of hosting meetings & events in virtual worlds in the past, many of the world's leading companies are placing big bets on the power of meeting online. The new generation of information workers will have a different attitude, as their education was heavily dependent on technology that didn't exist when I went to college in the 90's. All the Gen-Y kids coming out of Stanford, MIT, and Princeton, the business leaders in 10 years, all have "In-World" avatars reflecting their own preferences and personalities. One day very soon, these same avatars will be a confluence of Facebook profiles, V-Cards, LinkedIn profiles that will be their definitive 'online presence'.

Watch this video to see how some of the world's largest companies have been heavily investing in Second Life:As meeting planners, how can we afford to ignore new technologies that will impact the future of our industry so profoundly? Particularly in a down economy. Imagine completing 10 site visits in one day, without ever leaving your office. Having five regional sales meetings in two days where there are no travel expenses. Complete compliance training for various certifications from the convenience of your own office. Start thinking of the look on senior management's faces when you demonstrate the cost savings gained by having no airfare, no accommodations, no F&B costs.

Are any of you currently using this technology past the demo stage? Is the push coming from your team or your IT department? If not, are any of you in discussion about it? Who is driving it, Meeting Planning, IT, Marketing/Sales or Senior Management?

Here is an interesting example: Virtual Forbidden City developed by IBM in partnership with the Palace Museum. It was designed to encourage people from all around the world to explore and learn about Chinese history and culture.

Starwood's new hotel chain aloft actually launched it's brand with virtual tours in Second Life before any of the properties were opened.

Dell Island (video) is another great example of how consumers can interact with products online. Not a believer yet? Check out the infinite possibilities at What is Scion City. While this is nothing more than an extended commercial, approaching it in a different fashion allows for more engagement. It's only a matter of time until the graphics in Second Life are as good as they are on Grand Theft Auto IV on X-Box 360.

Obama's In-World Presidential Campaign:The business applications for meeting planners are endless, but once again a cultural/consumption shift will have to occur to make it useful. Planners need to anticipate the needs of their customers and attendees and be there waiting for them when they walk through the door. Being prepared to offer this to our internal customers before they ask for it is what makes us valuable to our organizations. If you'd like to learn more, check out Millions of Us.

Instead of a hosting a mandatory compliance training meeting in a boring conference center in some random suburb of Boston, you can host it in your virtual meeting room 'In-World' at your own branded meeting space/swim-up pool-bar, on a Pete Dye-designed golf course sitting on your private island in the Carribean.

Hey, you can dream, right? That's what makes Second Life so interesting.

Recession? What recession?

2008-12-04T10:24:00.009-06:00

Contrary to the strategy of virtually every competitor in their industry, Starwood’s aggressive expansion of the aloft “lifestyle” brand flies in the face of the current economic meltdown. With such an ambitious growth strategy amidst the current fragile credit markets, it appears Starwood is going All-In on the aloft brand.

Is there something they know that we don’t? According to their website, there are 19 aLoft properties currently open, primarily in the U.S. Over the next three years, they plan on opening 73 additional properties, 13 of which will be located outside the U.S. Curiously enough, of these 92 current or proposed projects, only one will be in Europe (see list below).

While traditional upscale chains such as Four Seasons, Ritz-Carlton and Hyatt are refining their signature properties to cater to the upscale crowd, aloft is taking a decidedly different approach. With loft-like urban design, tech-savvy amenities, a social atmosphere and trendy launch parties, complete with fashion shows and DJ’s, aloft marketers are actively courting the younger, hipper Gen X & Y business travelers. aloft also chose to launch their brand in Second Life, an online virtual 3D ‘world’ that caters to younger, tech-savvy professionals, which allows users to navigate the spatial environment online using an avatar. See the video belowClearly aloft is a long-term bet, one that Starwood has made, and won, on a number of occasions in the past. Think back to when The W Hotel chain was launched ten years ago. No one had ever heard of it and it was a huge departure from their traditional Sheraton and Westin-type properties. But they pulled it off and revolutionized the ‘urban’ trend in hotel design. The chips are still on the table on that bet, but the odds of it paying off look pretty good at the moment. Given the W Hotels success, their marketers and designers are not resting on their laurels, but rather continually updating and reinventing each property to remain edgy.

If history serves as our guide, Starwood’s aloft bet will win big.

Description from an aLoft Press Release:
“Guest rooms feature the brand's signature nine-foot ceilings, oversized windows and the ultra-comfortable bed, as well as oversized walk-in showers and amenities created by Bliss Spa. Each aLoft room is also a combination of high-tech office and entertainment center equipped with wireless internet access and a one-stop connectivity solution for multiple electronic gadgetry all linked to a 42" flat-panel, HDTV-ready television.

aLoft offers atmospheric public spaces where guests can mix and mingle, read the paper, work on laptops, play a game of pool or grab a drink with friends at the re:mix communal lobby area and w xyz bar. The re:charge fitness center and splash pool give travelers options to de-stress and re-energize, while re:fuel by aloft offers sweet, savory and healthy food, snacks and beverages to grab & go, 24-hours a day. Aloft is also committed to the environment and launched a see green program, which promotes ecologically friendly practices, products and services both inside and outside the hotel.”

CURRENTLY OPEN
United States
Arkansas
Rogers - aloft Rogers-Bentonville
California
Rancho Cucamonga - aloft Ontario-Rancho Cucamonga
Colorado
Aurora - aloft Denver International Airport
Illinois
Rosemont - aloft Chicago O'Hare
Massachusetts
Lexington - aloft Lexington
Minnesota
Minneapolis - aloft Minneapolis
North Carolina
Charlotte - aloft Charlotte Uptown at the EpiCentre
Oregon
Portland - aloft Portland Airport at Cascade Station
Pennsylvania
Philadelphia - aloft Philadelphia Airport
South Carolina
North Charleston - aloft Charleston Airport & Convention Center
Tennessee
Franklin - aloft Nashville-Cool Springs
Texas
Frisco - aloft Frisco
Irving - aloft Las Colinas
Plano - aloft Plano
Virginia
Ashburn - aloft Dulles North
Chesapeake - aloft Chesapeake
Glen Allen - aloft Richmond West

Canada
Montreal - aloft Montreal Airport

Asia Pacific
China
Beijing - aloft Beijing, Haidian

FUTURE OPENINGS
United States
Alabama
Homewood - aloft Birmingham Soho Square - Opening April 2, 2009
Arizona
Chandler - aloft Chandler - Opening December 1, 2009
Glendale - aloft Glendale - Opening April 15, 2010
Phoenix - aloft Phoenix-Airport - Opening September 24, 2009
Tempe - aloft Tempe - Opening March 26, 2009
California
El Segundo - aloft El Segundo - Opening June 1, 2010
Colorado
Broomfield - aloft Denver, Arista Northwest - Opening May 1, 2009
Glendale - aloft Cherry Creek - Opening March 1, 2010
Delaware
Wilmington - aloft Wilmington - Opening February 1, 2010
Florida
Aventura - aloft Aventura - Opening March 1, 2010
Bay Harbor - aloft Bay Harbor - Opening June 1, 2010
Jacksonville - aloft Jacksonville Airport - Opening June 1, 2009
Orlando - aloft Orlando International Airport - Opening December 31, 2011
Orlando - aloft Orlando/Convention Center - Opening June 30, 2010
Tallahassee - aloft Tallahassee Downtown - Opening August 27, 2009
West Palm Beach - aloft West Palm Beach - Opening February, 2010
Georgia
Alpharetta - aloft Alpharetta - Opening August 1, 2010
Atlanta - aloft Atlanta Airport/Millennium Center - Opening May 1, 2011
Atlanta - aloft Atlanta Buckhead - Opening June 1, 2010
Savannah - aloft Savannah - Opening January 4, 2010
Illinois
Bolingbrook - aloft Bolingbrook - Opening June 25, 2009
Chicago - aloft Chicago City Center - Opening January 1, 2011
Chicago - aloft Chicago Millennium Park - Opening September 1, 2011
Lincolnshire - aloft Lincolnshire - Opening March 1, 2010
Oakbrook - aloft Oakbrook - Opening December 1, 2009
Indiana
Indianapolis - aloft Indianapolis Woodfield Crossing - Opening Dec. 31, 2011
Plainfield - aloft Plainfield Metropolis - Opening December 31, 2011
Kansas
Leawood - aloft Leawood - Opening April 1, 2009
Maryland
Baltimore - aloft Baltimore Fell's Point - Opening December 31, 2009
Hanover - aloft Arundel Mills - Opening April 30, 2009
Linthicum - aloft BWI Airport - Opening July 2, 2009
National Harbor - aloft Washington National Harbor - Opening March 5, 2009
Minnesota
Minneapolis - aloft Edina - Opening January 1, 2010
Nevada
Las Vegas - aloft Las Vegas - Opening January 1, 2011
New Jersey
Mount Laurel - aloft Mount Laurel - Opening September 1, 2009
Woodbridge - aloft Woodbridge - Opening March 2, 2010
New York
aloft Brooklyn/Downtown - Opening March 1, 2010
Buffalo - aloft Buffalo Airport - Opening January 15, 2010
Long Island City - aloft NYC - By the Bridge - Opening December 31, 2010
New York - aloft Harlem - Opening June 1, 2010
North Carolina
Asheville - aloft Asheville Downtown - Opening April 1, 2010
Chapel Hill - aloft Chapel Hill - Opening March 1, 2010
Charlotte - aloft Charlotte Ballantyne - Opening January 1, 2010
Raleigh - aloft Raleigh-Durham Airport Brier Creek - Opening March 1, 2010
Oklahoma
Tulsa - aloft Tulsa - Opening February 15, 2010
Pennsylvania
Harrisburg - aloft Harrisburg - Opening March 1, 2010
Philadelphia - aloft Philadelphia Gateway - Opening July 1, 2011
Rhode Island
Providence - aloft Providence - Opening February 1, 2010
South Carolina
Greenville - aloft Greenville Airport - Opening February 1, 2010
Texas
Austin - aloft Austin at the Domain - Opening November 3, 2009
Dallas - aloft Dallas Downtown - Opening July 1, 2009
Houston - aloft Houston - Opening May 1, 2009
San Antonio - aloft San Antonio Airport - Opening March 5, 2009
San Antonio - aloft San Antonio Downtown - Opening December 1, 2009
San Antonio - aloft San Antonio Northwest - Opening May 1, 2010
Virginia
Chantilly - aloft Dulles South - Opening June 1, 2009
Winchester - aloft Winchester - Opening April 1, 2010
Wisconsin
Green Bay - aloft Green Bay - Opening March 26, 2009
Madison - aloft Madison - Opening June 1, 2010
Milwaukee - aloft Milwaukee Downtown - Opening December 1, 2009

Canada
Toronto - aloft Toronto Downtown - Opening December 1, 2009
Vaughan - aloft Vaughan Mills - Opening October 31, 2009
Laval - aloft Laval - Opening March 1, 2010

Europe
Belgium
Brussels - aloft Brussels Schuman - Opening September 1, 2010

Middle East
Abu Dhabi - aloft Abu Dhabi - Opening September 1, 2009

Asia Pacific
China
Foshan - aloft Nanhai-Foshan - Opening January 1, 2011
India
Ahmedabad - aloft Ahmedabad, SG Road - Opening April 1, 2010
Bangalore - aloft Bangalore, Whitefield - Opening April 1, 2010
Chennai - aloft Chennai, OMR-Sholinganallur - Opening January 1, 2010
Coimbatore - aloft Coimbatore Singanallur - Opening December 1, 2010
Thailand
Bangkok - aloft Bangkok-Sukhumvit 11 - Opening January 1, 2010
Bangkok - aloft Bangkok-Sukhumvit 26 - Opening January 1, 2011
Bangkok - aloft Silom - Opening March 1, 2010

FICP comes out Swinging

2008-12-03T10:09:00.005-06:00

The Financial and Insurance Conference Planners stepped up to the plate in a big way recently, offering their take on the recent bad press generated by AIG and others.

From FICP's website:
"Financial and Insurance Conference Planners (FICP) has followed with much interest the press coverage of excessive spending of certain financial institutions on meetings and events.

We strongly believe in scrutinizing the ethical, moral and financial stability of all publically held companies. FICP does not support irresponsible and excessive corporate spending, especially during times of economic distress. But we would also like to offer our perspective on the relevance and value of corporate meetings, conferences and incentive programs, many of which have been planned long in advance of any financial trouble, and many of which are vital to helping companies focus their human talent on the future.

FICP is the leading association of meeting and conference planning professionals within the financial and insurance marketplace, representing $600 million annually in hospitality-related business. Our members pride themselves on producing meetings and conferences that generate strategic business results. We’d like to set the record straight on the meeting and event business.

Meetings get results. They firm up partnerships and inspire success. The strategic collaboration of individuals and companies is a proven mechanism for developing business solutions and increasing productivity. When economic times are tough, it’s vital for employees to be able to come together to share ideas and skills, to create solutions and set long term strategic goals. Sales conferences and performance incentive programs in particular are powerful business tools. Such events motivate top performers to go even further, as well as provide training opportunities for up-and-coming professionals.

According to the Meeting Professionals International Foundation / George P. Johnson EventView study, Fortune 1000 'Chief marketing Officers' view meetings and events as having the highest return on investment of any marketing channel or initiative. In exceptionally competitive and unstable market conditions, strategically focused meetings, events and sales conferences boost business and deliver results.

Publicly traded companies must be held to high standards in regards to how stockholder investment is spent. Now more than ever, business organizations must demonstrate greater fiscal responsibility and cut costs. But cancelling meetings, sales conferences, events and incentive programs would be both short sighted and irresponsible. These are vital functions to a corporation’s success."

What do you have to say to that Press???

Atlantis, The Palm - Dubai

2008-12-02T09:19:00.041-06:00

November 20 marked the grand opening of the most ambitious hotel property in the world, Atlantis, The Palm in Dubai (the sister property to the famed Bahamas hotspot). Where else but Dubai could such an ambitious project garner so much attention while flying in the face of the world’s economic crisis? The amount of detailed and coordinated planning that went into the grand opening party may have just set the bar at its permanent height.

PALM JUMEIRAH ISLAND
Rising from the warm waters of the Arabian Gulf, this ultra-luxurious resort was built on 113 acres of reclaimed land, perched atop the revolutionary Palm Jumeirah. The Palm Jumeirah, a series of manmade islands designed to assimilate a 17-frond palm tree, spans five kilometers (3.35 miles) and is regarded by many as the eighth wonder of the world.

THE RESORT
Boasting 360 degree views of the ocean, restaurants from acclaimed chefs and an incredible marine habitat that is home to more than 65,000 exotic sea creatures, Atlantis, The Palm, is already considered amongst the most luxurious resorts in the world. Offering something for everyone, this resort features “Aquaventure” – a 42-acre waterpark with the “Zigguret” Centerpiece that touts a 30 yard vertical drop; “The Lost Chambers” – where you can journey through a labyrinth of chambers to experience a fascinating underwater world, the 11-acre “Dolphin Bay” with its innovative Education Center, and the “Ambassador Lagoon” with hundreds of species of exotic marine life. Atlantis, The Palm also offers an array of fun-filled activities for children of every age and its Spa and Fitness Center offers treatments from all over the world.

Between the Royal Towers, Imperial Club, and Lost Chambers Suites, the property boasts nearly 1,400 guest rooms, 166 suites, 17 bars and lounges and a myriad of aquatic activities from beaches, pools, waterfalls and water sports. While the innovative Neptune and Poseidon Suites feature underwater accommodations with stunning aquatic views, it’s top floor Bridge Suite costs around $26,000 per night!

For your meeting needs, The Atlantis Conference Centre comprises more than 18,000 square feet of floor space. The largest area, The Atlantis Ballroom, is a flexible space that can divide into five separate areas. Two junior ballrooms, two boardrooms, a traditional Majlis (gathering) area and a generous pre-function space provide ideal venues for small groups or break-out areas for larger conventions.

THE GRAND OPENING PARTY
A week before Thanksgiving, 2,000 VIP guests gathered in the lobby of the Atlantis to sip Dom Pérignon and enjoy a spectacle that no one could have imagined. Outside, A-list celebrities from Robert De Niro, Lindsay Lohan to Michael Jordan walked the red carpet and took in the opulent surroundings.

The festivities, produced by renowned event pro Colin Cowie, kicked off with an unprecedented HD video projection sequence introduced by Bollywood star, Priyanka Chopra, who rose from the stage as The Goddess of Atlantis.

Designed by Jean Michel Jarre in Paris, the visual display used the 200 yard-wide Royal Towers as a screen to visualize the story of Atlantis, making it the most ambitious HD video projection on a standing surface to date. You must CLICK HERE to see the AMAZING video of the festivities (best viewed in full screen mode-you will be captivated).

Pop-singer Kylie Minogue, reportedly paid $4 million to perform, took the stage just before the sky lit up with the world’s largest fireworks display, large enough to be seen from outer space. The stunning exhibition, designed and created by international pyrotechnic experts, the Grucci family, stretched across the full 320 miles of Palm Jumeirah landscape, lighting up the entire island and Atlantis resort, creating a display visible from space. It has been estimated that the fireworks ceremony was anywhere between seven to ten times larger than those of the Beijing Olympics Opening Ceremony! Custom-made shells had been shipped in from across the globe, creating a light spectacle, set off from over 716 firing locations around the island including 400 balconies at the resort.
Guests can also venture off-property to experience the Region’s largest Indoor Ski Resort, Ski Dubai, located in the Mall of the Emirates, or Dubai’s other waterpark, Wild Wadi in Jumeirah Beach. Other nearby sites to see are the Burj Al Arab, the world’s only 7 Star Hotel and the iconic structure that epitomizes Dubai, Burj Dubai, the world’s tallest building, and the famous Dubai Marina.

While room rates are most certainly going to be quite high compared to other proerties around the world, the experiences offered and the memories gained will surely make the Atlantis, The Palm is an ideal selection for an unforgettable incentive.

BUCOM Daily Value...

2008-11-03T16:35:00.002-06:00

SMMP 2.0

2008-10-22T15:28:00.007-05:00

Next Generation SMMP: Centralizing Small Meetings
You've secured senior-level buy-in, centralized all meetings functions, communicated your policies and implemented your SMMP. Now what? Are small meetings the next frontier? With so many companies embracing the power of meetings to market themselves, it only makes sense that the market is maturing. In searching for additional savings and efficiencies, small-meeting spend has now become the low-hanging fruit for many companies. While certainly there is great opportunity, it will undoubtedly be a challenge, even for those with mature strategic meeting management programs.

Gone are the days of unmanaged spend, large expense accounts and discretionary budgets. The pharmaceutical industry pioneered the concept of SMMP in the early 1990s and provided sparkling results impossible to ignore by other industries. By the sheer volume of meetings, larger companies like Pfizer, Bristol Myers Squibb and Eli Lilly were able to save tens of millions of dollars in their SMMP infancy stages, to rave reviews by their management teams.

Now SMMP is all the rage in corporate America, with roughly 60% of Fortune 1000 companies having a program in place. With annual savings typically around the 10% mark for successful implementations, CFOs and CEOs have been very pleased with the results. With decreased consumer spending, most companies are in cost cutting mode, which means they’ll be thinking if we cut that much off our meetings budget last time, surely we can cut costs further. With a solid small meetings strategy prepared and a plan of action ready to be put in place, you’ll be in a position to shine. In a time of economic uncertainty, this might help to avoid project cancellations, budget cuts and staff layoffs.

Whether you recognize it or not, there are plenty of ‘meetings’ happening off the books. Some stakeholders want to maintain control of their programs, and there are many ways to stay under the guidelines radar. The most common is to have one program billed over several invoices. Your first step to overcoming these sorts of issues should be soundly communicating the reasoning behind such centralization. It’s not about taking control, but sharing a common goal of cost reduction and doing more with less. Many culprits are internal DIY administrators who lack contract negotiation and risk management experience.

“MEETING IN A BOX”
Preferred-vendor contracts are a favorite tool for controlling the costs of small meetings. Negotiate tiered pre-packaged programs that the individual user can select, even for as little as five attendees. This approach should allow for cancellation clauses, room night rates, function room rentals, F&B and A/V. With short lead times a constant for small meetings, hotels face numerous challenges in responding to requests quickly. Try to send as many individual travelers to preferred hotels in order to create more value as a partner (and leverage spending).

Like the stock market, hotel occupancy and rates are down significantly (numbers here). Average U.S. occupancy was down 7% in the first week of October over the same period in 2007. Rates dropped 1% and revenue per available room slipped 8%. Luxury hotels took the brunt, with occupancy off 12%, rates down 5% and revenue declining 16% . Hotels are looking to boost revenue any way they can, and what better way to do it than with those who are already spending? But there are limits. Small meetings mean smaller budgets, and certain concessions attained by larger groups are not as feasible in the smaller realm.

There is no ‘template’ to this initiative that will suit every company and situation. Internal interviews, historical data analysis and supplier research need to be conducted more thoroughly. You may also want to look at how you receive data from hotels when an individual’s credit card is used. During the data collection phase it will become clear that a single form of payment strategy will make ongoing data collection much simpler.

MEETING CARDS
Corporations with meeting budgets near $10 million a year and a meeting policy in place were the early adopters of meeting cards. But any company that wants a better grip on meeting spend could benefit from a card program. Meeting cards work to corral spending, then as control, and eventually as a more efficient management tool. Under a typical invoice payment system, employees can select any expense code they want. As a result, many meeting expenses end up in a miscellaneous category, which makes gathering data even more difficult. By issuing these pre-populated cards to the DIY administrators, you might find that their unmanaged spend comes into clearer focus.

TECHNOLOGY AS AN ENABLER
Most large hotel chains have developed internal technology solutions that interface with the small meeting applications provided by companies such as StarCite and Concur. Recently StarCite has made a big push in the small meetings area with an online booking tool that allows customers to enter their own negotiated rates and contract terms into the system. Hyatt and Hilton have also expanded their offerings when it comes to small meetings, recognizing the importance to their corporate clients. Be mindful of the fees charged to the hotels by your technology provider, as it will definitely affect your pre-negotiated rates. Worktopia recently launched an online meeting space booking tool that can prove to be very helpful when lead times are extremely short.

Another effective solution to cutting costs using technology is to push as many of these smaller meetings online as possible. Webconferencing works particularly well with smaller internal meetings that regularly occur amongst regional sales teams. Many of these stakeholders book meeting space at a hotel out of habit, when their objectives can be accomplished much more effectively and economically by hosting a web meeting. Assure them that face to face meetings will never be abandoned, but reducing the sales teams travel expenses and time out of the office will benefit everyone’s bottom-line. There is no shortage of great providers: WebEx, GoToMeeting, Adobe, Microsoft, ON24, Saba and Genesys. For additional information on their offerings, CLICK HERE

TIME MANAGEMENT
One thing all planners are short on is time. Once you’ve negotiated your terms, outsource as many of the non-core components as possible. Centralize your business with a third party outsourcing firm you trust and let them manage the time-consuming details that arise. BUCOM has assisted numerous clients with arranging small meeting packages with very reasonable rates.

Whether you choose to negotiate packages with hotels, utilize new technologies or roll out a meeting card plan, you will undoubtedly face many challenges, particularly in this uncertain economic environment. Maintaining your focus on the big picture, which means not getting bogged down with all the minutiae, is paramount to success in such a large initiative.

IT&ME/Motivation Show

2008-10-14T17:05:00.016-05:00

The two-day Motivation Show, focused on meetings & incentives industry professionals, was again held in Chicago on September 23 & 24 at McCormick Center. Each year, industry suppliers from all over the world converge for the opportunity to meet and greet corporate and third-party meeting planners. Huge exhibits are set up, direct mail campaigns are executed, iPods are raffled off and bags are stuffed with marketing brochures. But the question remains, are the exhibitors able to recoup their investment?

Motivation (IT&ME for us old-timers) is rumored to become more of a tradition than a vital opportunity to meet potential buyers. The show is split up into two main categories, travel and promotional products. While traditionally the travel side had a much larger presence, it seems that the promotional products section has taken over the dominant position in recent years. The travel side is split into subsets of hotels, destinations, CVB’s, DMC’s and travel management agencies. The largest exhibitor, as one would imagine, was Las Vegas, however that represented a shared facility with such participants as Venetian, MGM and LVCVB.

Total exhibit space sold was down 10% over last year’s show, and attendance was dropped by 6%, which undoubtedly demonstrates the uneasiness being felt as a result of the financial market woes. Many planners had registered to attend and for one reason or another were not able to make it. “You had some planners simply not attend at all and others come as they have done each year,” commented Paul Buccheit, National Sales Manager at the Venetian/Palazzo. “The ones that do attend approach the show with a plan of attack on who they need to see, then they leave.” Review on MeetingsNet.

As in years past, many larger vendors hosted evening functions that seemed to get a much better turnout than their counterparts with only an exhibit booth. SITE hosted an affair at the Peninsula that attracted 700 attendees. Some of other highlights were private parties hosted by Starwood at the House of Blues, Hilton at the Conrad and Golden Triangle, Tahoe & Reno at Smith & Wollensky’s, LXR at the Peninsula, Express Jet at Elm Street Liquors, 3D Destinations Cocktail Cruise on Lake Michigan, Gaylord at Rockit and Switzerland at the Museum of Science & Industry.

“I also see the evenings just as valuable as the show floor, if not more, for networking with potential clients.” said Buccheit, whose company hosted a well-attended party at SushiSambaRio. “There is still value in seeing your clients and developing the relationship further so that when business does pick up you are the first person they call.”

While the majority of exhibitors at the show don’t have the budget to host such extravagant affairs, the ones that market their parties effectively, usually get a great turnout. While attendance is in decline, the show appears to be far from standing on its last leg. The show organizers also scheduled the show on the heels of Yom Kippur, which negatively affected attendance as well.

While the economic “slowdown” is certain to have had a tremendous effect on attendees from out of town, many meeting planners still see the show as an invaluable part to their yearly plans. Having all major hotels and destinations in one location can allow planners to see most of their key suppliers over the two day period. It will be interesting to see the percentage of exhibitors that return in 2009.

Are you Hungary?

2008-10-14T09:07:00.004-05:00

We just got back from a 3-day meeting in beautiful Budapest, Hungary. This capital city, with a population of more than two million residents, sits just down the Danube River from Vienna and is often overlooked by tourists.

Aside from all the sightseeing and local history to take in, one of the most interesting aspects of Budapest culture is the local cuisine. The famous Hungarian goulash is a must-have and is surprising when it turns out to be a spicy, thin soup instead of the thick stew I was expecting. There many more local delicacies that also should to be sampled. Shockingly, Budapest is known for it’s smoked goose liver, which everyone had to try. At first I was skeptical, but eventually I succumbed to peer pressure. To my surprise, it was really delicious... the perfect start to a fabulous meal!

One of our pharmaceutical clients needed to host an investigator meeting in a central European destination and asked BUCOM to recommend a solution. After an extensive search, BUCOM selected the Kempinski Hotel Corvinus Budapest. The meeting space was absolutely perfect for our client’s needs – all with close proximity and easy access to the business center. One of our favorite amenities provided by the Kempinski was complimentary wireless internet access EVERYWHERE in the hotel. You don’t even need a password to connect. This is very rare for a hotel of this size & stature, and was a huge convenience factor for our participants and staff alike.

The concierge staff at the Kempinski was extremely helpful, more so than the other properties we have worked with in Budapest. They went out of their way to ensure that our group was treated like VIPs. Not only did they assist us in pulling our shipments out of customs (which is very strict and notoriously slow) but also followed-up to ensure that they were delivered to our office as soon as they arrived to the hotel. They were very attentive and provided top-notch customer service to all of our attendees when called upon.

Since the hotel was located in the city center, the participants were able to see many of the most popular local attractions. The sightseeing highlights include Heroe’s Square (pictured above), Buda Castle, Szechenyi Public Baths, and the Museum of Applied Arts. If you have time, I also suggest the twilight dinner cruises on the Danube River.

All in all, the attendees had a very productive meeting and our client was extremely pleased with the outcome. While we have hosted many programs in Budapest over the last 20 years, the rave reviews from our client ensure that we will be returning again very soon.

Second Life a viable meeting option?

2008-10-09T17:39:00.016-05:00

There is something very nerdy about virtual worlds and the folks that inhabit them way too much. One thing is certain, virtual worlds are going to have more and more real-life applications that will affect all of us in the meeting planning industry.

While you may have dismissed the possibility of hosting meetings & events in virtual worlds in the past, the new generation of information workers have a different attitude. All the Gen-Y kids coming out of Stanford, MIT, and Princeton, the business leaders in 10 years, all have "In-World" avatars that reflect their own preferences and personalities. One day (not too far away), these same avatars will be a confluence of Facebook profiles, V-Cards, LinkedIn profiles and more. Some of the world's largest companies have been investing heavily in Second Life for quite some time.

As meeting planners, we can't afford to ignore new technologies that will have a huge impact on the future of our industry. Imagine completing 10 site visits in one day, without ever leaving your office. Start thinking of the look on senior management's faces when you demonstrate the cost savings gained by having no airfare, no accommodations, no F&B. Are any of you currently using this technology past the demo stage? Is the push coming from your team or your IT department? If not, are any of you in discussion about it? Who is driving it, Meeting Planning, IT, Marketing/Sales or Senior Management?

Here is an interesting example: Virtual Forbidden City developed by IBM in partnership with the Palace Museum. It was designed to encourage people from all around the world to explore and learn about Chinese history and culture.

Starwood's new hotel chain aloft actually launched it's brand with virtual tours in Second Life before any of the properties were opened.

Dell Island (video) is another great example of how consumers can interact with products online. Not a believer yet? Check out the infinite possibilities at What is Scion City. While this is nothing more than an extended commercial, approaching it in a different fashion allows for more engagement. It's only a matter of time until the graphics in Second Life are as good as they are on Grand Theft Auto IV on X-Box 360.

Here an example that touches our political and mainstream media systems - John Edwards' 'In-World' Presidential Campaign mocked by John Stewart:

The business applications for meeting planners are endless, but once again a cultural/consumption shift will have to occur to make it useful. Planners need to anticipate the needs of their customers and attendees and and be there waiting for them when they walk through the door. Being prepared to offer this to our internal customers before they ask for it is what makes us valuable to our organizations.

Instead of a hosting a mandatory compliance training meeting in a boring conference center in some random suburb of Boston, you can host it in your virtual meeting room 'In-World' at your own branded meeting space/swim-up pool-bar, on a Pete Dye-designed golf course sitting on your private island in the Carribean.

Hey, you can dream, right? That's what makes Second Life so interesting. If you'd like to learn more, check out Millions of Us.

Southwest Continues it's Hot Streak

2008-10-07T16:41:00.004-05:00

In addition to it's recent announcement of service to Minneapolis/St. Paul, Southwest recently announced special airport security lines for frequent travelers. Appropriately entitled "Fly By" security lanes will be open to Business Select passengers, in addition to elite members of their Rapid Rewards program.

The program will be rolled out later this month at Phoenix Sky Harbor International, Orange County John Wayne, Denver International, San Francisco International, Los Angeles International Baltimore/Washington International and Dallas Love Field. While the program is in it's launch phase, they anticipate rolling it out to all major hubs.

"Expediting passengers through security is just one example of how Southwest is enhancing the customer experience by offering added convenience for seasoned travelers," said Kevin Krone, vice president of marketing, sales and distribution.

With their huge win in gas price hedges a couple years ago, along with their financial strength, it seems while all other airlines are grasping at straws, Southwest is increasingly improving their position in the marketplace and with business travelers. While they have traditionally positioned themselves towards consumer travel, they are gaining more traction in the corporate market with their new programs and on-time flight arrivals and departures.

BUCOM named in Top 50 Event Companies by Special Events Magazine

2008-09-29T10:38:00.003-05:00

It's always nice to be recognized as a leader in our industry. Thanks to Lisa Hurley, the Editor of Special Events Magazine. We appreciate your hard work and determination in this process.

NBTA Launching SMMP Certification Program

2008-09-16T14:36:00.004-05:00

The National Business Travel Association will be offering a Strategic Meetings Management certification program within the next 12 months.

It will be interesting to see how many meeting planners complete this certification. My guess is that it will be quite successful, following in the footsteps of the CMP, CMM and CTSM programs.

BUCOM International named in CMI 25 Top Meeting Planning Agencies. Again.

2008-09-08T10:16:00.007-05:00

BUCOM INTERNATIONAL has been named to the second annual “CMI 25” list of the industry's largest and most influential full-service independent meeting and incentive travel management companies. Compiled by Penton Media's Corporate Meetings & Incentives® Magazine, the leading information source for the $40.3 billion corporate meetings and events industry, the CMI 25 provides an essential resource for corporate executives and meeting professionals seeking partners for outsourcing all or parts of their programs. The CMI 25 appears in the September issue of Corporate Meetings & Incentives and is available on www.meetingsnet.com.

“The CMI 25 list represents the leading companies in the industry, based on extensive research by our staff,” said Barbara Scofidio, editor of Corporate Meetings & Incentives Magazine. "As outsourcing of meeting and incentive travel program planning becomes increasingly important to corporate America, the CMI 25 have become the ‘go-to’ service providers for executives in many sectors.”

We thank CMI for the recognition, our clients for the inspiration and our team for it's dedication.

NY Airports Accept Clear Lanes

2008-08-19T12:01:00.006-05:00

Great news for business travelers! As with many things, if NY is doing it, all other cities will soon follow (except for liking the Yankees).

Now if we can just get our flights to leave on time. If the Clear Card gets universally adopted across the country, it will be a major coup for meeting planners and also a fantastic gift idea for professionals.

Other airports online include Atlanta, Boston, Cincinnati, Denver, Dulles, Indianapolis, Jacksonville, JFK, LaGuardia, Newark, Oakland, Orlando, Reno, Salt Lake City, San Francisco, San Jose and Westchester.

BUCOM Video

2008-08-18T11:11:00.000-05:00

A short video outlining BUCOM International business highlights.

Great Slide Presentation on Social Media - by Marta Kagan

2008-07-31T12:49:00.002-05:00

What is Social Media?I think we have all read enough about blogs, wikis, RSS feeds to have an idea of what they are about (if you don't know, you're participating right now!).

The BIG question facing Meeting Planners is: How can we embrace & harness their power to enhance our meetings & events? Watch the slideshow below, which has some terrific facts & figures.

We'd love to hear some feedback and get a discussion going on this topic. Stay tuned, more to come...

Go for the gelato and host a meeting too!

2008-07-24T15:45:00.007-05:00

It's hard to say what you'll find most breathtaking about the Eternal City - the opulence of the Vatican, trying to follow a confusing road map, the gory resonance of the Colosseum, trying to cross a major intersection, the bill for your morning coffee, or a Monitor Meeting? Of course, the Monitor Update Meeting!! BUCOM International operated a very successful international internal Monitor Meeting at the Hotel Exedra in Rome this past month. Participants from Russia, UK, Poland, Brazil, Romania, France, Sweden, and Germany to just name a few joined us for a very informative update meeting. The Hotel Exedra, a Boscolo Hotel offered the perfect location for the meeting with the mixture of old world Rome and new technology. The meeting rooms at the Hotel Exedra are perfect for smaller meetings up to 100 people with superior audio visual capabilities, numerous meeting and meal function rooms all on top the ancient Roman ruins. Where else can you look down through a glass floor and see structures dating back hundreds of years while you present or at your coffee break? The Hotel Exedra also offers modern, updated, beautifully decorated large rooms compared to many European hotels. Highlights of the program include a fabulous dinner at Tre Scalini Restaurant at Piazza Navona, pod cast of the sessions for all participants' future reference, and the enjoyment of all the sites and sounds of Rome. BUCOM's number 1 "can't miss" for Rome - the gelato!!!

Enter to Win $250 Gas Card

2008-07-21T15:38:00.007-05:00

CLICK HERE TO ENTER

UNIQUE LOCAL VENUES: THE RIVIERA THEATRE

2008-06-24T14:36:00.002-05:00

One of the benefits of holding your meeting in a second-tier city is the accessibility of unique venues an reasonable prices. At a recent meeting held at the Charleston Place Hotel in beautiful Charleston, SC, our group had its reception and dinner function in the Riviera Theatre designed by architect Charles Collins Benton. Guests truly enjoyed the history and the atmosphere. With such a pronounced restaurant scene in the Charleston, we considered the evening’s 90% attendance a huge success!

The Riviera, an Art Deco treasure found on Charleston’s King Street, was built on the site of the Academy of Music in 1939. It is listed on the National Registry as part of one of city’s Historic Districts. The facade is of light stone trimmed with black. The vestibule and foyer are finished in black formica and chromium with background of flex wood, and above the entrance is a long mural depicting a scene of Lake Como. The theater opened with a modern heating and cooling system, the latest projection equipment, an automatic drop curtain and organ – and admissions prices of only 25¢! The opening film was "Secrets of a Nurse" with Edmund Lowe, Helen Mack, Dick Foran and Paul Hurst. This stunning theater was the home of first run pictures, on its fifty foot screen, until 1977.

The Riviera was leased to a church group in 1979 and by the mid-1980's, threatened with demolition. The Friends of the Riviera protected the theater and it was eventually sold to the Charleston Place Hotel (located just across the street) in 1993. The hotel soon launched a $4 million renovation project that would take four years to complete. The entire theater was restored save for the removal of the main floor seating to create a ballroom-style meeting space. The Riviera re-opened as a conference center and retail space, but more than 90 percent of the original interior had been restored. The beautiful murals were repaired or copied and the extraordinary plaster details look like they did in 1939. While its days as a single-screen movie theater are over, the Riviera Theater's history is preserved. It continues to serve the Charleston community and its architectural beauty will enchant visitors for decades to come.

Because this historic theatre is today wholly owned and operated by the Charleston Place, there was no rental fee for the space – just the food & beverage minimum from the meeting’s contract. Our Special Events Manager with the hotel helped to customize a menu perfect for our group’s size, palette and budget. Our set-up staff, bartender, and banquet staff were also through the hotel – and thus already familiar faces. Rental fees alone for similar space in a city like Chicago would cost thousands of dollars – and that is before factoring in off-site catering costs for furniture and linen rental, florals, etc. We were able to achieve an experience unique to Charleston for our client and guests without any additional expense.

Sources:
Melnick, Ross. “Riviera Theater.” Cinema Treasures.
http://cinematreasures.org/theater/284/

Author Unknown. “Riviera Theatre – Charleston, SC.” SC Movie Theatres.
http://www.scmovietheatres.com/chas_riv.html

Author Unknown. “Venues – Riviera Theatre & Conference Center.” Charleston Place.
http://www.orient-express.com/web/ocha/ocha_c3d1_riviera.jsp

SECOND-TIER CITIES: A NEW TREND?

2008-06-24T14:23:00.004-05:00

Any list of current trends in meeting planning includes the use of second-tier cities to help control costs. But is this really a trend or just validation of what industry experts have already been saying for over a decade?

The internet has a never-ending supply of articles on the subject. This is not surprising. What is a bit unexpected is that the articles date from this year to as far back as 1992. Maybe the idea is not the trend, but effectively selling it to meeting stakeholders who traditionally use only top-tier cities is.

WHAT IS A SECOND-TIER CITY?

Perhaps the best place to start is with a definition of a Second-Tier City (STC). Academia defines STC’s based on economic structure, growth and labor – differentiating these distinct areas from suburbs or large metropolitan areas. But a location viable for a new plant or distribution center may not offer the proximity to major airports crucial to meeting destinations. Alternatively, the Meeting Planners Association sets population parameters for STC’s that range from 300,000 to 1 million. By the MPA’s standards, Washington, DC, Miami and Las Vegas are second-tier destinations (1), but these locations are not generally associated with cost savings.

It seems neither filter really offers a complete list of what stakeholders would consider realistic second-tier destinations that can suit their meeting’s needs. So for our purposes, STC’s will be defined with a broader brushstroke. Focusing specifically on domestic locations and excluding the ten most populous U.S. cities, think of cities characterized by affordability, accommodating residents, unique recreational happenings, easy air-access and first-rate hotels and convention/conference facilities. A few examples include: Indianapolis, IN; Charleston, SC; Nashville, TN; St. Louis, MO, San Jose, CA, Salt Lake City, UT and Louisville, KY.

As a sidebar, the term “easy air-access” also has a definition in flux. As airlines merge (like Northwest and Delta), they boast offering better service to more cities. However, the industry as a whole is simultaneously announcing that the cost of jet fuel will dramatically impact the number of cities serviced and the frequency of flights to ALL destinations – as early as October of this year. For this reason, if air travel is a concern we would recommend focusing on cities with international airports. These airports are typically called such because they are equipped with customs and immigrations facilities, but they are also usually larger facilities with longer runways that can accommodate larger aircraft. While service will still likely be reduced, it is less likely it will be discontinued all together.

WHAT BENEFITS CAN A SECOND-TIER CITY REALLY OFFER?

Besides rising hotel costs, so-called “mega-cities” are also increasing their focus on strengthening transient business – meaning groups may no longer be able to achieve the perks and concessions to which they have grown accustomed. To maintain the proverbial “big fish” feeling, site selection in second-tier cities offers more small ponds from which to choose. (2)

Stakeholders and meeting attendees alike are looking for customized service, high-quality facilities, an experience memorable enough to make it worth the trip and of course, affordability. STC’s unique circumstances can provide all of these benefits for your group.

CUSTOMIZED SERVICE

One of the best service resources in an STC is the local Convention and Visitors Bureau or CVB. Eager to showcase their city, the CVB will often do whatever it takes to get your business – and keep it. Outstanding, customized service begins during the planning phase, but lasts through on-site execution. Not only do they often have regional sales forces that sit locally in other cities, but a CVB offers an unparalleled-network of local suppliers and avenues for cross-marketing your event. The staff at a CVB is generally happy to act as an extension of your meeting planning and logistics-company. They can also provide access to unique spaces like museums, city parks or historical venues. A CVB’s connections to and relationships with local talent and attractions should be leveraged and not overlooked. These components offer tremendous added value and in smaller cities come at a much smaller price tag (3) than in say Manhattan, Chicago or Los Angeles.

Larger groups, especially, often take up the majority of the available meeting and hotel space in smaller cities. Without competing distractions for the venue’s on-site staff, these groups are essentially guaranteed undivided attention and a high level of service. No request or need is ignored. From event-branded signage throughout the city to designated public transportation vehicles, the city’s doors are opened. In this way, not only meeting planners but also attendees witness how keen these cities are for your business. (4)

HIGH-QUALITY FACILITIES

Luckily for today’s meeting stakeholders, the idea of smaller cities getting an increased market share of the events business is not new. As Katie O’Bryan, Director of Midwest Sales for the Louisville CVB says, STC’s “have been consistently popular for education, nursing, agriculture and religious groups for a long time”. Hence improvements to the infrastructure of these cities – including the building and expansion of state-of-the-art conference and convention centers, hotel inventory and airports – have been in the works since the early 1990’s. (5) First-class amenities in these cities are the norm far more often than the exception. Now, however, they are finally drawing the attention of industries that traditionally looked only to top-tier cities for meeting destinations.

To get the word out about new, top-notch facilities, many markets have teamed the sales forces of their convention center with that of the local CVB. In this way, the smaller cities remain competitive by offering a more customizable product than larger cities. The San Jose Convention Center for instance offers a flexible pricing structure based on a group’s overall economic impact on the community (including room nights, food & beverage, equipment rental, etc.). (6)

Also with a little bit of creativity, issues that might initially appear as obstacles may not be. Even though many smaller cities have added top-tier hoteliers to their portfolio, they often still cannot accommodate a large group under one roof. Nevertheless, these same destinations usually have a far more cohesive hotel community than in larger cities. Working as a unit instead of against each other, multiple property representatives develop a housing plan for your group and create a seamless transportation schedule for moving attendees between meeting facilities and guest accommodations. (7) This is just another example of how second-tier cities will do whatever it takes to get your business.

MEMORABLE EXPERIENCES

To truly make a meeting or event memorable for your group you must provide opportunities attendees would not have had on their own. This is why meeting planners seek out unique entertainment options in any location. But to obtain a competitive edge, STC’s see this as more substantial than a single activity – it is about developing a total branded experience.

Louisville, KY is a great example of this. O’Bryan explains that “what Napa is to wine, Louisville is to bourbon.” Her colleague Lisa LeCompte, Senior Sales Manager Louisville CVB, explains that their close access to the “Kentucky Bourbon Trail” creates great entertainment options - even beyond just distillery tours - such as an “Urban Bourbon Tasting Tour” through some of the more storied taverns of Louisville or a keynote by Bill Samuels Jr., President & CEO Maker’s Mark.

What is unique about your destination? What is its historical significance? What are the cultural assets of the city and how can they parlay into something attendees will never forget? These are the questions smaller city CVB’s are asking themselves and their Chambers of Commerce before designing a message to sell to meeting planners.8 Playing to these strengths and linking them to the needs of the client’s industry can actually make STC’s more appropriate for a meeting than traditional mega-destinations. (9)

The combined efforts of convention centers, hotel communities and CVB’s are also very effective for reinforcing your meeting’s brand throughout a city. According to Greg Deininger, VP of Sales & Marketing for the St. Louis Convention & Visitors Commission, they are “one team speaking with one voice, which makes it easier for the customer. We have one board, one sales and marketing force, one group of people looking at the value of a group in terms of room (tax and hotel occupancy), as well as convention center revenue." (10) He further explains that they “put banners on the streets, place signage in the malls and give the hotels welcoming ribbons." This sort of welcome into a city is bound to have a positive impact on your brand and make a lasting impression on your attendees.

AFFORDABILITY

For groups that traditionally use top-tier destinations, affordability is generally the major contributing factor in looking to STC’s for their programs. This is especially true in a struggling economy. But “affordability” is really more of an umbrella term. It can encompass broader strategic moves such as holding regional meetings to limit/eliminate travel and overnight hotel costs or reducing the length of the meeting to reduce lost productivity because employees are not out of the office as long. It can be indicative of the overall impression of the expensiveness of a city/destination, or more specifically refer to itemized costs like airfare, ground transportation, hotel rates or catering expenses. Below is a sampling of cost-comparisons for the budget line-items just mentioned. With a few exceptions, STC’s offer notable savings.

AIRFARE

Chicago to St. Louis - $159/Southwest; $165/American
Chicago to Louisville - $157.50/Southwest; $164/United
Chicago to New York - $285/United and American
Chicago to Miami - $350/American
Chicago to Las Vegas - $366.50/Southwest; $474/USAir
Chicago to Minneapolis-$373/United, American & NWA

(Prices published on Orbitz.com and Southwest.com for non-stop, roundtrip airfare as of June 23, 2008. Flights are departing at approximately 8:00am, August 4, 2008 and returning at approximately 7:00pm, August 6, 2008.)

HOTEL COST
Denver - $189
Cleveland - $229
St. Louis, MO - $299
Boston, MA - $395
San Francisco - $469
New York, NY - $645

(Prices published on RitzCarlton.com for the nightly rate for a standard guestroom with 1 King or 2 Double beds at the Ritz-Carlton in each city for the night of July 1, 2008.)

HOTEL OCCUPANCY/TOURISM TAX RATES
Las Vegas, NV – 9%
San Jose, CA – 10%
Little Rock, AR – 11.5%
Charleston, SC – 12.5%
New York, NY – 13.375% plus $3.50/night
Los Angeles, CA – 14%

GROUND TRANSPORTATION
Charleston, SC - $30
Cincinnati, OH - $70
Louisville, KY - $75
New York, NY - $168
San Francisco, CA - $175
Chicago, IL - $199

(Prices provided are for one-way sedan service from the relevant city airport to downtown hotels.)

GALLON OF COFFEE, SERVICE CHARGES AND F&B TAX
The Shore Club, Miami Beach, FL - $48.00, 20%, 7%
Westin Atlanta Airport, Atlanta, GA - $50.00, 22%, 7%
Westin Bonaventure Hotel & Suites, Los Angeles, CA - $60.00, 22%, 8.25%
Ritz-Carlton Reynolds Plantation, Greensboro, GA - $65.00, 20%, 7%
Charleston Place, Charleston, SC - $78.00, 20%, 9.5%
Marriott Marquis Time Square, New York, NY - $104.00, 22%, 8.375%

(Prices published in each property’s current catering menus.)

One important thing to keep in mind too is that smaller markets may be more willing to negotiate on meeting space rental, hotel and food and beverage charges in order to win your business. They may also have more flexibility with concessions such as complimentary upgrades, VIP amenities or designing packages that will be attractive to attendees and your bottom line.

SUMMARY

Even as prices continue to escalate in major hub locations destinations and tight budgets further constrict meeting spend, stakeholders still want to exceed their attendees’ expectations. Hence, the use of second-tier cities as meeting destinations will emerge as a key business strategy in more and more industry verticals. This may require a leap of faith to start, but if you can demonstrate that you have taken into account criteria that are important to both participants as well as stakeholders you will get their attention. With proper research and partnership with CVB’s, the quality customer service, meeting facilities, memorable experiences and economic benefits will speak for themselves.

SOURCES

1. Sweeney, Mark M. “Second-Tier Cities: The Right Size at the Right Cost”. Business Facilities: The Location Advisor. February 2004. http://www.businessfacilities.com/bf_04_02_cover.asp

2. Tesar, Jenny. “Second-Tier Cities: Do they still have the "big fish-small pond" advantage?”. Medical Meetings. February 1995.

http://meetingsnet.com/medicalmeetings/meetings_firstclass_service_secondtier/

3. Kovaleski, Dave and McGee, Regina. “ How to Score With Second-Tier Cities”. Associations & Meetings. June 2004.
http://meetingsnet.com/associationmeetings/meetings_score_secondtier_cities/

4. Author Unknown. “First-Class Service at Second-Tier Prices”. Medical Meetings. June 1997.
http://meetingsnet.com/medicalmeetings/meetings_firstclass_service_secondtier/

5. Author Unknown. “First-Class Service at Second-Tier Prices”. Medical Meetings. June 1997.
http://meetingsnet.com/medicalmeetings/meetings_firstclass_service_secondtier/

6. Kovaleski, Dave and McGee, Regina. “ How to Score With Second-Tier Cities”. Associations & Meetings. June 2004.
http://meetingsnet.com/associationmeetings/meetings_score_secondtier_cities/

7. Tesar, Jenny. “Second-Tier Cities: Do they still have the "big fish-small pond" advantage?”. Medical Meetings. February 1995.

http://meetingsnet.com/medicalmeetings/meetings_firstclass_service_secondtier/

8. Mascari, Patricia A. “ Second-tier cities, first-rate partners” . Association Management. November 1992. http://www.encyclopedia.com/doc/1G1-14569363.html

9. Sherman, Patricia. “Marketing/Promotions: Meeting Attendance Goals for Shows in the West.” Expo Web. Feb. 2006.
http://www.expoweb.com/Marketing_Promotions/2006FebMeetingattendancegoalsforshowsintheWest.htm

10. Tesar, Jenny. “Second-Tier Cities: Do they still have the "big fish-small pond" advantage?”. Medical Meetings. February 1995.

http://meetingsnet.com/medicalmeetings/meetings_firstclass_service_secondtier/

IPC-Incentive ROI Calculator

2008-05-19T16:12:00.001-05:00

Courtesy of the Incentive Performance Center

Sales Incentive ROI 10%

2008-05-19T16:09:00.003-05:00

Incentive Spending Report Link

2008-05-19T15:57:00.001-05:00

Incentive spending level in 2008

2008-05-19T15:53:00.000-05:00

A total of $46.1 billion was spent by U.S. companies on incentive travel and merchandise in 2006, according to the “Federation Study 2007: A Study of the Incentive Merchandise and Travel Marketplace,” sponsored by the Incentive Federation and conducted and prepared by GfK, the fourth largest marketing research organization in the world. That total represents a significant increase from the just-under-$30 billion figure that was reported in the Federation’s last comprehensive survey in 2000. It also represents $32.7 billion spent on incentive merchandise and $13.4 billion on incentive travel.

In addition to budget figures, the report looks at how merchandise and travel incentives are being used. According to the study, some 34% of U.S. companies overall used either travel or merchandise incentives last year, with 31% using merchandise and 10% making use of travel incentives. The average budget for travel incentives in 2006 was $164,271, with more than three-quarters of incentive travel end-users spending between $100,000 and $500,000. The typical budget for merchandise incentives was lower - $119,008 – and just under half of merchandise incentive users spent between $100,000 and $500,000.

BA's new high-end air franchise: OpenSkies

2008-05-19T11:51:00.006-05:00

British Airways just received DOT approval to operate a premium-class focused airline between Paris (ORY) in New York (JFK) in June. Check out their blog: http://flyopenskies.com/

Oil and gas prices up, premium air demand down, US inflation & recession, and increased corporate compliance policies are NOT going to stand in their way. Godspeed OpenSkies, we'll be pulling for you.

MPI FutureWatch 2008 Report Out

2008-05-19T11:31:00.005-05:00

If you're a stats & numbers sort of person (odds are, if you are reading this, you are required to be) you will enjoy this report. http://www.mpiweb.org/CMS/uploadedFiles/Mortar/FutureWatch%202008%20Report.pdf It's tough for me to read this type of report on a pdf so (sorry green people, I did however recycle the paper) I had to print it out and read it that way.

There is one fundamental flaw that keeps bugging me about this report. MPI is a great organization, don't get me wrong. I am a member. So are my colleagues, competitors, suppliers AND customers... a pretty diverse mix. So, the actual percentage of the participants in the polls that are ACTUAL END-USER PLANNERS can't be (by my best estimate) more than 30% . Which means 70% of the data is flawed. I filled out this survey and I don't plan meetings per se. But most of the people who filled out this survey (myself included) are very interested in seeing the meetings industry flourish, thus bringing my to me original point: 70% of the data is from people with an overly "sunny" disposition regarding the industry.

That being said, there are some really great points in the report. While almost all planners are being asked to make the filet mignon dinner from sandwich and potato chip budget, one thing is for certain, there are more picnics in the plans.

Socially-conscious Incentives

2008-05-19T10:28:00.009-05:00

Design your incentives and meetings to drive behavior, reward performers, and have a societal impact at the same time. More and more companies are focusing their incentive programs to philanthropic efforts by adding charity and social work components to their events.

One of our large pharmaceutical clients established a partnership with a major transplant foundation, without any press or hoopla. They donate all the air & hotel points that their department accumulates to families who cannot afford the high cost of accompanying their spouse/children to out of town procedures. To date, they have assisted more than 30 families in this program. If you ask me, that is the sincerest form of giving, mainly because they took painstaking efforts to ensure that nobody will ever hear about it.

What would really have the most impact would be to find a needy cause that is near and dear to your business, so that you can tie it

The following are a few additional worthy causes:
Susan G. Komen: http://cms.komen.org/komen/Partners/CorporatePartners/index.htm
Toys for Tots: http://www.toysfortots.org/donate/default.asp
Build-a-Bike: http://www.leadersinstitute.com/teambuilding/buildabike.html
Habitat for Humanity: http://www.habitat.org/cd/local/
Ronald McDonald House: http://www.rmhc.com/volunteer/
Boys & Girls Club of America: http://www.bgca.org/programs/
Red Cross: http://www.redcross.org/services/volunteer/0,1082,0_325_,00.html

This is not necessarily an incentive, but a great article on how an association can use their members to collectively make a huge impact: http://meetingsnet.com/financialinsurancemeetings/news/financial_services_society_0507/

As we all know, incentives are a powerful method to drive results from your sales teams. Incorporating social responsibility into your program can help build teamwork and goodwill, while hopefully generating some well-deserved PR.

Airlines adding MORE fuel surcharges

2008-05-19T10:14:00.000-05:00

American, Continental, Northwest, United and US Airways each matched a move by Delta Air Lines to add another $20 to fuel surcharges on short- and long-haul tickets, according to airfare watchers. Tom Parsons of BestFares.com said the price hike marked the "11th successful attempt since Dec. 20, 2007." FareCompare's Rick Seaney noted that many Delta fares now carry a roundtrip surcharge of $130. "This means the total fuel surcharge combined with taxes and fees costs more than the actual base airfare on several short-haul domestic flights," according to Seaney. British Airways raised passenger fuel surcharges on all tickets, ranging from £6 (US$11.83) to a total of £26 (US$51.27) for short-haul roundtrip tickets and £30 (US$59.16) to a total of £158 (US$311.55) for the longest roundtrip flights. Other carriers recently upping surcharges include Air France, Korean Air and Thai Airways. Qantas raised all international ticket prices by 3 percent.

Incentive in Dublin

2008-05-15T14:47:00.002-05:00

A multinational CPG manufacturer took their top performers to Dublin for a week of rest, relaxation and fun. All guests stayed at the Ritz-Carlton and were treated to daily excursions including Guinness Brewery Tours, helicopter rides, castle tours and more. BUCOM was on hand to make sure no one had to lift a finger.

Airline consolidation good for meeting planners?

2008-05-15T07:37:00.009-05:00

United is bankrupt. Now United is merging with Delta. Oh, wait, no... United is merging with Continental. No, hang on a sec, United and U.S. Airways are merging. Delta and Northwest. Lufthansa and ….

When senior executives from the airline industry and FAA officials both have no idea what they are doing next, how are we as we as planners supposed to sift through all the clutter to ensure we are making the right decisions for our companies? With all the airlines teetering on the brink of bankruptcy (ATA, Frontier, Aloha and Skybus being recent casualties), the dark cloud of dissolution looming, how do we make strong and confident long-term decisions on preferred providers? The answer... don't.

Meeting planners who arrange meetings near airport hubs will most certainly be affected by the recent changes. The current consolidation will absolutely reduce capacity, increase demand, and increase prices in most second-tier hubs. Delta and Northwest have said that they have no plans to cut any hubs, but that seems to be a fairly premature statement. One which we've all learned, in one way or another, should not be trusted.

http://www.management.travel/news.php?cid=Delta-Northwest-merger.Apr-08.30

As for the correct answer to the question posed in this article, there is none. Every company needs to look at their own travel spend, policies and level of mandate before making any commitments. Here is a great interview with Siemens Shared Services' Director of Mobility:

http://www.management.travel/news.php?cid=Steven-Schoen-Siemens.May-08.14 which was a follow-up on this initial report: http://www.procurement.travel/news.php?cid=Siemens-policy-compliance.Jul-07.23

I posted these links because they discuss how a global company with 40 separate business units consolidated air spend with terrific results.

Where will it all end? Will it end at all? Will there eventually be one airline? I am calling for JPMorganChaseMcDonaldsPepsiUnitedArabEmiratesGoogleVisa Airlines by 2012.

Webconferencing: Technology vs. Culture

2008-05-14T11:27:00.006-05:00

It’s going to come eventually, the question is ‘Are you ready to take your meetings online?’ Webconferencing, as a theory, has been around for years, in the back of everyone's mind... thinking it's a wonderful idea, but how do we make it happen? The initial roadblocks were centered around technical requirements and bandwidth restrictions. Now that these two shortcomings have been overcome by most technology providers, how can meeting planners ensure that their meeting objectives can still be accomplished over the web?

While most people interchange the two descriptions, there is a fundamental difference between a webcast and webconference. To me the cast suggests a one way projection, as in broadcast or cast your eyes. The new technologies available in best-of-class webconferencing technologies suggest just that- a conference. A two (or five hundred) way dialogue to gain mindshare, spread ideas and collaborate.

To successfully migrate B2B or B2E meetings over the web, planners must first focus on three fundamental criteria: strategy, tools, and implementation.

When I say strategy, I don't mean logistics or timing, but rather navigating the cultural shift necessary to facilitate consumption by the audience. While Gen X & Y generally have no problems attending a meeting over the web, how do you interpret your content so that it engages your Boomer attendees? How do we keep attendees from checking email, running to the bathroom, taking that phone call, or worst of all... tuning out completely? No, it's not designing prettier slides! The answer lies in providing interactive and blended content that not only solicits input from attendees, but interprets that data into actionable results later in the program.

Energize your online program by taking surveys, polling, asking questions, displaying results, and getting participants involved in the outcome of the program. Remember, this is not supposed to be a one-way communication. If that's what you're looking for, burn it on a DVD or send them your deck on a USB Drive.

To further captivate your audience, use a mix of live video, slide decks, commercially produced commercials, and randomly displaying different participants via webcam. Simply having a webcam focused on the presenter will not do the trick, you need to have an executive producer working behind the scenes to manage and direct the production and switch "camera angles" to provide a fresh perspective to the viewer.

Selecting the right solution from the various tools available will depend upon your strategy, amount of users, frequency and long-term plan. The leading providers are WebEx, Microsoft Live Meeting, Adobe Acrobat Connect Pro, GoToMeeting, On24, Saba (Centra), Pixion/PictureTalk, Genesys, PGI NetSpoke. Convenos is an interesting option, albeit not yet ready for prime time. Similar to Facebook, Firefox and many other leading Web 2.0 programs, it is open-source and allows users to alter the code and customize the solution for their individual needs. Keep your eyes on it though, I think this is a trend that will flourish. Scalability will be the most important factor when selecting a vendor, especially when you are first starting out. The billing structures vary from a per-person/per meeting charge (WebEx), to an up-front license fee (MS Live Meeting) to a per meeting fee. We have had success with our clients because of our vendor agnostic approach and flexibility to offer the right solution for the right meeting. We maintain partnerships with the top 4 vendors and because we are technically a 'reseller', we are afforded nice volume discounts that we can pass along to our customers.

Implementation is fairly time consuming, but like most other projects, the more you do it, the better you get. Our production team has the process down to a science, whereas all implementation issues that can arise (and have arisen) are addressed well before the meeting starts. Remember, each attendee is going to have various technical issues concerning firewalls, bandwidth speeds, access to applications, and unfortunately user error. Nowadays there aren't too many more annoying things than technology standing in your way. Remember the last time your email went down?

Not only can webconferencing save time and money, but is also a huge opportunity for meeting planners to have a positive impact on the environment. Instead of asking people not to print emails in their email signature line, planners can finally demonstrate measurable results on their "Green Meetings" strategy. It’s no secret that airplanes are the most obvious offender to the environment (and one the largest line-item expenses in your budget), so shifting one meeting online can provide enormous effects on the environment in terms of carbon offsets.

Let me know if you have any questions or thoughts

Welcome to BUCOM Beat

2008-05-14T11:04:00.002-05:00

The BUCOM Beat was created to let the inmates run the asylum, so to speak. With so many of our meeting planning team moving all over the world all the time, there were too many good stories not to share. Oh, and from time to time, we will publish articles that we think are of value to others in the meeting planning community as well.