It remains to be seen whether the incoming Trump administration will succeed in creating significantly more jobs and keeping the U.S. economy on the upswing in the coming years. But for 2017, one vertical in that economy will likely stay quite healthy: the hotel industry. According to STR and Tourism Economics projections released in September, the U.S. hotel industry next year will experience a slight decrease in occupancy (-0.3 percent to 65.2 percent) but a 3.1 percent increase in ADR to $127.99 and a 2.8 percent increase in RevPAR to $83.51. Flat to increased RevPAR growth is expected in all of the Top 25 markets except Houston.

“We’re definitely seeing a more intense focus on strategies to mitigate the realities of a seller’s market, and interest in SMM from clients of every size.”
— Kari Wendel, SMMC

The continued strength of the hotel industry means that planners will have to contend with an ongoing seller’s market. “Even though hotels are experiencing similar occupancy percentages for 2017, I think the rates are still going to go up,” notes Jennifer C. Squeglia, CMP, owner of RLC Events Inc., based in Warwick, Rhode Island. “I think it will be a seller’s market for quite a while. It’ll swing back some time, just not terribly soon.”

Squeglia reports no decrease in budgets among her clients, and indeed there is evidence that many corporations are increasing their meeting budgets: MPI’s Fall 2016 Meetings Outlook shows 57 percent of respondents predicting “favorable budget/spend,” and 25 percent predicting budgets will remain flat. But the increased spend, at least in part, may well indicate a necessary allocation due to higher costs.

“Our meeting budgets have had to increase with the rising prices of F&B and sleeping rooms,” observes Maggie Johnston, CMP, vice president, meetings, with Assurex Global. “I attend numerous industry events, and I have been hearing from many other planners that investment in meetings is increasing in almost every company.” Johnston says she expects the seller’s market to continue past 2017. “I am now negotiating and signing contracts for 2018, and I have not seen any changes in the rising sleeping room rates or availability at the hotels. If anything, it has been more difficult to find available hotels in the price range that I need for my groups.”

The challenge is not automatically removed by selecting a second-tier city, as a strong seller’s market is in effect at some of those destinations as well, with Austin and Nashville being prime examples.

Contending With the Ongoing Seller’s Market

On the positive side, there are well-known strategies that give planners leverage, and which will continue to be critical next year. “The more flexibility with dates you can bring to your hotel partner, the better your chances of negotiating” a better deal, says Squeglia. “For example, if it’s a short-term window and you’re filling a hole (in the hotel’s schedule), I think the planner is in a very good position.” She also recommends negotiating other line items, such as discounted internet in the meeting space or suite upgrades. “That’s one thing the hotel can do without losing a ton of revenue. However, the 1-per-40 comp is becoming more like 1 per 45 or 1 per 50,” Squeglia adds.

Sharon L. Schenk, CMP, is the director of conventions and event management at CCA Global Partners Inc., the umbrella company for 13 different businesses, the largest being Carpet One Floor & Home. Schenk cites the approach of signing multiyear contracts with the same hotel company or property when possible to increase leverage. “That’s been our practice for years, and we’ve been in situations where because of that relationship, we’ve been able to lessen the pain of attrition issues.”

Increased room rates are not the only rising costs affecting meetings. “They’re increasing the F&B service charges; it used to be 14–18 percent, now they’re 22–26 percent for the same level of service,” Schenk notes. “Sales taxes are going up as well. It seems that whenever they build a new stadium, whether the citizens of that community want it or not, the taxes rise, and visitors and tourists bear the brunt. Depending on what city you’re in, you may have three or four different taxes: convention center tax, city tax, sales tax and occupancy tax. Those creep up 1 percent or a half percent a year, and it impacts our bottom line.” On the transportation side, airfares are increasing, but thankfully, ground transportation is expected to remain flat due to greatly diminished fuel prices over the past few years.

Investing in Security

Due diligence calls for planners to allot more budget to crisis preparedness, particularly in view of the persistent threat of terrorism. MPI’s Fall 2016 Meetings Outlook indicates that safety and security is the “top budget request for 2017,” with 15 percent of respondents saying they had increased threat awareness and response preparedness. That includes elements such as improving contingency plans and enhancing safety and security training for employees. Incentive travel also has been affected by the unstable climate that the threat of terrorism has created. According to the SITE Index 2017, the “tightening of border security and the threat of terror groups has had a significant increased negative impact on incentive travel decisions for both sellers and buyers since 2015.” Specifically, “almost 8 out of 10 buyers see a negative impact of terrorism on their ability to plan and implement incentive travel programs.”

Yet the “negative impact” has far from shut down the incentive travel industry. Kevin Hinton, CIS, chief excellence officer for the Society for Incentive Travel Excellence (SITE), says, “In spite of people’s concerns about potential risks related to safety and security, and the threat of terrorism being so top of mind, more companies are going to be doing incentive programs next year. Corporations around the world are both planning to increase budgets and increase their eligible participants. We had 60 percent of the buyers planning to increase the eligibility, and then 49 percent are trying to increase their incentive travel budgets for 2017.”

Thus, companies are pushing ahead with incentive travel programs that are coupled with an emphasis on risk and crisis management. “They’re shifting some of their destination selection and looking to their corporate safety and security teams to do more contingency planning,” he says. “It’s made (the planner’s) job more complex for sure, as the crisis management component of their job is taking more of their time.”

Managing travel and lodging costs also is a “primary area of concern for incentive travel buyers,” says Hinton. Fortunately, some international destinations are both more affordable and more intriguing to the well-traveled incentive qualifier. Hinton cites Panama, Costa Rica and Eastern European countries such as Croatia and Slovenia as up-and-coming destinations for incentive travel.

SMM More Valuable Than Ever

In a market with rising costs, strategic meetings management programs (SMMPs) are especially useful. They provide centralized control over a company’s meetings spend, informing decisions about where to cut costs as well as which suppliers to drive volume toward, thereby gaining leverage. “One of the obvious advantages of deploying SMM is the visibility of what you’re spending your travel and meetings dollars on,” says Kari Wendel, SMMC, senior director, global SMM strategy and solutions, Carlson Wagonlit Travel Meetings & Events. “We’re definitely seeing a more intense focus on strategies to mitigate the realities of a seller’s market, and interest in SMM from clients of every size.”

While it takes time and effort to bring an SMMP to full maturity, where all of a company’s offices and departments are on board with the program, benefits can certainly be derived with each step in implementation. “One of the most common starting points is venue sourcing and contracting, which drives 60+ percent of the savings opportunity and starts to get you some pretty meaningful data,” Wendel notes. Getting buy-in on these programs continues to be a challenge at some companies, she adds. “As a consultant I’ve come into companies where they’ve got that champion (of the SMMP) identified, but their ability to get the champion to action is still a challenge,” she says. “It’s about business case development and being able to speak the language of the C-suite.”

CSR on the Rise

When planners merge corporate social responsibility (CSR) activities with meetings, they’re speaking the language of millennials. Giving back to the community is especially important to this demographic, even in the context of an incentive program. “In our study, seven out of 10 incentive programs include some kind of a CSR activity,” says Hinton. The survey also revealed that CSR was an “essential element” of 15 percent of respondents’ programs.

DMCs will continue to be key resources in identifying the most meaningful CSR opportunities at a destination. “We don’t want to go in and paint the same school one more time, so it’s important to find those unique projects that can be at the crossroads between the company’s mission and culture, and something in that destination that’s particularly unique,” says Hinton. “And the DMC ought to be your best partner in finding that.”

Wellness as a Best Practice

Just as the well-being of the local community is important to meeting attendees, so is their own. Wellness will continue to be emphasized by the meetings industry in 2017 and beyond, both by hoteliers and planners. On the hotel side, standout examples include MGM Resorts International and Hyatt Hotels Corp. MGM’s Stay Well Meetings program includes healthy work environment features such as air purification, circadian lighting, ergonomic seating, aromatherapy and activity breaks that revitalize the body and mind. This summer, Hyatt partnered with Be Well by Dr. Frank Lipman to offer guests healthy refreshments at arrival, wellness-oriented guest room amenities, expanded healthy menu options and nutritious to-go meals.

“Attendees are so much more knowledgeable about food now with multiple TV channels dedicated to it,” Squeglia observes. “They are more interested in food that’s local, that hasn’t been frozen, cage-free eggs, etc. Tapping into (cuisine that’s) indicative of the destination is also important.” According to Johnston, “During our annual wellness meeting I work with the chef at the hotel to provide healthy meals such as a salad bar and fruit smoothies. We also offer an early morning yoga session.”

Squeglia adds, “Sometimes it’s not incorporating wellness specifically, but just giving people time to take a walk or get a workout in. I’m always including information about the fitness center and have actually not picked hotels because their fitness center was too small or inadequate.”

Engaging Millennials

While CSR and wellness activities are increasingly important complements to meetings, business sessions remain at the core of these events. And the quality of the presentations is what delivers ROI for the sessions. Presenters have come to understand that in order to really engage their audience, particularly the Gen Y set, they need to be as interactive as possible, and avoid “death by PowerPoint.”

“Presenters now know that they can’t sit up there an hour and a half with a bunch of slides; people aren’t engaged in that,” says Squeglia. “I’m also finding the presentations are shorter, sometimes as short as 10 minutes. TED Talks have had a huge influence on how people are programming their agendas now: briefer and more interactive presentations with lots of video.”

The interactivity is often facilitated by mobile apps. Just one example is Poll Everywhere, an app that allows audience members to reply to the presenter’s questions in real time using mobile phones, Twitter or web browsers. The results are then displayed in PowerPoint. “We have been using Poll Everywhere for the past two years,” says Johnston. “I have found it to enhance presentations and engage the audience.”

Raising the Planner’s Profile

Most of the trends cited above were not in place 10 years ago, and just as the meetings industry has evolved, so has meeting planning as a profession. Education has been one key to that progress. Schenk transitioned from an executive secretary position to meeting planner jobs, and earning her CMP in 2001 helped to distinguish her skillset. “The CMP kind of emphasizes the fact that just because you can plan your wedding or a family get-together doesn’t mean you can do conferences and conventions, negotiate contracts and understand what’s going on in a general session in terms of production and technology,” she explains. Her participation in MPI member events was another source of “great education” and helped her grow in the profession, she says.

“I think that MPI and Meetings Mean Business and many other industry organizations have shined a light on the profession. It’s a profession, not just a job, and more executives are coming to understand that as well,” Schenk says. “One of my best practices after every meeting has always been to provide my supervisor a list of the money that I saved. For 10 years I worked at a financial services company, and the money that I saved in negotiations effectively paid my salary.”

In contrast to the more general CMP and CMM, planner certification programs in recent times have been developed to target specific skillsets, such as MPI’s Healthcare Meeting Compliance Certificate (HMCC) and Sustainable Meeting Professional Certificate (SMPC). That trend will likely continue. In late 2017, SITE expects to roll out a certification program aimed at mid-level incentive travel professionals. “We completed the job analysis earlier this year, and it gave us a validation of the 14 competencies that incentive travel professionals need to be able to become experts at,” says Hinton. “As part of that we recognized there is a need for some kind of mid-level certification program, so we’re in the process of developing a program aimed at the manager or director level incentive professional.”

The Impact of the Trump Presidency

Corporate America has come to appreciate the professional meeting planner, but will the American economy and political climate continue to support a healthy investment in offsite meetings and group travel? While it is too early to predict with confidence the effect the new administration will have on the industry, planners can certainly express their hopes that the outcome will be positive. “What I would carefully say is that I am hopeful that Trump’s business acumen will shine through and come to fruition for the economy in general, which can only help the meetings industry,” says Wendel. And the fact that Trump’s business is largely the hotel business suggests that he understands the economic value of meetings and events. Says Hinton, “Trump has an international hotel brand, and they have plans to be a 30-hotel brand in a couple years. They certainly are targeting the meeting and incentive sector.”

Of course, perceiving meetings as a valuable source of clientele and seeing them as important to large-scale economies are separate things. But ideally, the first perspective will engender the second. “I would hope that as a hotelier, which he is, Trump would be sensitive to how important meetings and conventions are in domestic and international relations,” Schenk adds. “And that he would continue to support trade and international access and just making things as easy as possible for people to continue to meet face to face.” C&IT

The Broadmoor Estate House.

One of the many quotable lines from Sir Winston Churchill, popular among architects, is from his October 1944 speech to members of the British House of Commons.

“We shape our buildings; thereafter they shape us.”

Churchill was talking about the need to rebuild the House of Commons after the historic structure was destroyed by a German bombing raid in 1941. But Churchill’s insight might well apply to meeting planners when considering the potential of a historic hotel for an upcoming conference or event.

What does it say to your attendees about your company when your event is held in a historic property? Think about the underlying message of stability, tenacity and strength and how you might build on that.

How does the history of the building you select shape their experience during the gathering? Are your attendees more thoughtful and respectful in a building that commands such by its mere presence? Can you influence their behavior in the future, such as greater productivity, sales, etc., by hosting a meeting at such a hotel?

“The Peabody is the perfect marriage of historical perspective and modern attitude and conveniences. Our out-of-town guests are always very excited to experience this hotel.”
— Velvet Graham

Perhaps some of these hotels and experiences will make you think a little differently about Winston Churchill’s words and how buildings shape us.

The King and Prince Beach Resort, St. Simons, Georgia

The influence of a structure had never occurred to Jody Harris before she coordinated the annual dealer conference for National Computer Corporation, a software company for which she is director of product services.

The South Carolina native now based in Greenville realized that indeed a building can make a difference in how a person feels as soon as she began her site visit at the King and Prince Beach and Golf Resort, a Historic Hotels of America member listed on the National Register of Historic Places that dates to 1935. The oceanfront property has grown from a simple dance club to a 197-room resort that offers everything from golf, diving and sailing to tennis, cycling and horseback riding.

“You know how there are some homes where you just come in and sit down, places where you know you are already welcomed and comfortable,” she says. “The architecture there does that with all the lovely balconies and porches, and I know our attendees felt that, too.”

For Harris, the mild weather available in March was one of the first considerations for the 200-plus people who would be attending the conference from cities across Canada and the northern U.S.

“It’s a laidback, traditionally Southern place,” she says. “From my perspective, it’s a place that honors its heritage and South Carolina’s heritage. It’s more than a great waterfront property.”

All public spaces in the King and Prince underwent a major renovation in 2013, which included removing the lobby swimming pool, thus creating more prefunction space around the Lanier Ballroom. Accommodations in one of the buildings also has become pet-friendly.

Harris noted little details such as historic images engraved in the stained glass of the Delegal Room and banquet furniture appropriate to the period of the hotel that celebrated the resort’s longevity and created a unique experience for attendees. She estimates that about 40 percent of the group stayed a few extra days to enjoy the property.

“There’s something about the hospitality of a place with history,” Harris says. “It seems the staff absorbs that history and has such pride for what they represent.”The March 2016 conference also celebrated the company’s 30th anniversary. That and the fact that the company’s previous conference at Bahia in San Diego had been so overwhelmingly popular with attendees placed additional stress on Harris to find and coordinate just the perfect event.

“We’ve never used the same property twice for our dealers conferences, but I’m quite sure that’s about to change now that we’ve experienced this gorgeous gem,” she says.

French Lick Resort, French Lick, Indiana

For as many years as most employees can remember, the Air Hydro Power Company in Louisville, Kentucky, has foregone any holiday party for its 165 or so employees in favor of a “Year Beginning Celebration” in early January.

“It helps take the pressure off of the holidays, especially for our employees with children and their many holiday activities,” says Sharon Stetter, administrative assistant responsible for special events.

The Year Beginning Celebration has always been held in one of Louisville’s many event venues, including the historic Brown Hotel.

But after a visit to the historic resorts in French Lick, Indiana, Stetter, who admits she is often the wet blanket for party planning, enthusiastically recommended to her bosses to take the party on the road. After polling a number of employees who, too, liked the idea, the company booked the entire West Baden Springs Hotel for their weekend party. French Lick is about an hour north of Louisville.

“The entire property, from the moment you pull into the driveway, has such a feel or aura to it of a quieter, more peaceful time,” Stetter says.

French Lick Springs Hotel and West Baden Springs Hotel date to the 1850s and celebrate a period of great mineral spa resort experiences. In 2006–07, the two hotels reopened as one resort after a $560 million, multiyear renovation.

In 2015, a 58,000-sf expansion to the Meeting and Event Center debuted, including a 22,000-sf adjustable ballroom. The center now boasts 27 meeting rooms of various sizes for a total of 163,000 sf of meeting and event space throughout the resort.

Certainly the most visually stunning and unique of those spaces is West Baden’s domed atrium, frequently called the Eighth Wonder of the World. It spans 200 feet and includes 35,000 sf of floor space. A majority of the hotel’s 243 guest rooms open to a balcony overlooking the atrium.

In early January, when the Air Hydro Power party was held, the hotel’s 40-foot-tall Christmas tree and other holiday decorations still adorned the lobby, creating a festive, yet calming environment.

“After the craziness of the holidays, it was just an extra gift to be able to relax in such an atmosphere,” Stetter says.

Air Hydro Power utilized various corners of the atrium to host receptions for new employees and their spouses, a cocktail party, dinner and dancing. Several employees took advantage of spa services and additional time at the resort after the corporate event was complete.

“Everyone loved it so much, we immediately booked for 2017,” says Stetter.

When the people at Air Hydro Power return, they’ll find an expanded 6,100-sf Pavilion on the Pete Dye golf course that includes a covered patio with gas firepit. A new event barn will add 5,200 rugged square feet to the meeting options.

The Jefferson, Washington, DC

Calvin Coolidge was president in 1923 when the building that is now the Jefferson Hotel opened for residents, but most recently it’s been President Barack Obama who prefers the Jefferson for many of the high-level meetings he hosts in the nation’s capitol.

The 95-room hotel is one of the few in the city with the approved security needs to accommodate the president and many of his high-profile guests.

And just occasionally, when the president is at the hotel, incoming guests, such as the executive committee members of the American Beverage Association, are alerted that a slight delay might occur as they check in.

“The Jefferson does a very good job of alerting us to when our schedule may coincide with the president’s,” says Trudi Moore, meetings and events manager for the ABA. “It’s never been a concern for any of our members. Indeed many are flattered to be in the same building as the president of the United States.”

The boutique hotel is ideal for the small events that Moore coordinates for the board. The 25–30 attendees are presidents and CEOs of some the nation’s biggest beverage companies. They, too, appreciate the safety and security of the location, as well as doing business in rooms where some of the greatest leaders of history have stayed and done business. Original documents signed by Thomas Jefferson are among the artifacts that speak to the historical significance of the building.

“Other than when the president is in the building, our board members have never had to wait for their rooms,” Moore says. “The staff here truly understands the etiquette of working with high-level executives, which is one reason the Jefferson is perfect for our board meetings.”

The Peabody,
Memphis, Tennessee

Another place that has hosted a number of presidents, celebrities and even England’s Prince William is the Peabody in Memphis, thus confidentiality and etiquette are among the many standard amenities at this hotel that dates to 1869.

With her company based in Memphis, Velvet Graham, a senior director at ServiceMaster, has used the Peabody for a wide variety of conferences, events and overnight accommodations. When she needed to coordinate a town hall-type meeting that would eventually announce the company’s long discussed decision to keep its corporate headquarters in Memphis, Graham knew that she could count on staff at the Peabody to maintain the confidentiality of the event while assisting with a complex press conference.

“They do a great job of understanding our unique needs and always show a great deal of creativity in keeping things fresh,” says Graham, who coordinates meetings for seven brands under the ServiceMaster umbrella.

2015 saw a complete renovation of the hotel’s 16,200-sf Grand Ballroom and prefunction areas, along with the Peabody Executive Conference Center.

As 2016 comes to an end, renovations should be complete on the Continental Ballroom, where Elvis Presley attended his high school prom in 1953, as well as the Skyway Ballroom where the likes of Lawrence Welk, Tommy Dorsey and the Andrews Sisters performed.

“The Peabody is the perfect marriage of historical perspective and modern attitude and conveniences,” Graham says. “Our out-of-town guests are always very excited to experience this hotel.”

Noteworthy Updates

Boston Park Plaza, Boston, Massacusetts. Opened in 1927; completed a $100 million renovation in May 2016 of all guest rooms and 50,000 sf of meeting space, new steakhouse and Starbucks.

The Broadmoor, Colorado Springs, Colorado. The most recent addition to the Broadmoor’s meeting venues is the Broadmoor Estate House, a 13,000-sf five-bedroom mansion across the street from The Broadmoor Cottages. The house became available in September 2016.

Brown Hotel, Louisville, Kentucky. Opened in 1923; hotel’s 4,000-sf rooftop garden reopened in fall of 2016; accommodates up to 400 guests; hotel’s 16 stories is one of tallest in downtown.

Brown Palace Hotel & Spa, Denver, Colorado. Opened in 1892; added an additional 3,500 sf of meeting space in October 2015; complete remodel of guest rooms on four floors.

The Elms, Excelsior Springs, Missouri. Opened in 1888; where Harry Truman learned he had indeed defeated Dewey; complete remodel of spa and return of historic lap pool in 2015; Google Fiber wireless internet in early 2017.

Grand Hotel, Mackinac Island, Michigan. Opened in 1887; an additional five two-room suites in spring 2017; complete remake of business center with Apple products and wireless printing.

Hotel Jerome, Aspen, Colorado. Opened in 1889; complete interior renovation/upgrade in 2012; the hotel has recently purchased the adjacent Aspen Times building with plans to turn the entire property into meeting space; details on completion date unknown at this time.

InterContinental Mark Hopkins Hotel, San Francisco, California. This historic property celebrates its 90th birthday in December 2016; hotel is a member of Nob Hill Connection, five historic hotels in the Nob Hill district.

Jefferson Hotel, Richmond, Virginia. Dates to 1895; will complete a three-year, three-phase reconstruction project in early 2017 that included all guest rooms as well as Lemaire Restaurant; rotunda lobby ceiling completely restored.

Keswick Hall, Charlottesville, Virginia. Built in 1912; complete guest room renovation in December 14; new Pete Dye-designed 18-hole championship golf course August 2015.

Omni Severin, Indianapolis, Indiana. Built in 1913 and designed by Kurt Vonnegut’s grandfather; back lobby and 17,000 sf of meeting space received a $2 million facelift in late 2016; only hotel in Indianapolis with balconies.

Partridge Inn, Augusta, Georgia. Built in 1910; 144 guest rooms; completely remodeled in 2015 including more than 8,000 sf of event space; high-speed Wi-Fi at 100 mbps; first hotel in Georgia to be included in Historic Hotels of America.

Pfister Hotel, Milwaukee, Wisconsin. Opened in 1893; new app to tour hotel’s public art investment; $2 million in upgrades in public spaces in 2016.

Renaissance Des Moines Savery Hotel, Des Moines, Iowa. Present hotel, third under Savery name, opened in 1919; significant history with Women’s Army Corps during WWII; closed in August 2016 for complete renovation of heating, cooling, electrical; major renovation of guest rooms, baths and meeting spaces; scheduled to reopen in March 2017.

The Vinoy Renaissance St. Petersburg Resort & Golf Club, St. Petersburg, Florida. Open since 1925, the Vinoy completed renovations of the mezzanine and plaza levels in 2016. In the coming two years, the Vinoy plans upgrades at its Snell Isle facilities including an expanded swimming pool; 361 guest rooms, marina; 99,000 sf of indoor/outdoor event space.

Waterfall Resort, Ketchikan, Alaska. Structure built in 1912 converted to all-inclusive remote sport-fishing resort in 1983; 52 oceanfront acres and full-service meeting facilities; 2016 season debuted eight new boats making it the largest private fleet in Alaska. C&IT

Like it or not, the possibility of lawsuits or other legal challenges is a part of the meeting planner’s world. Even with the most careful planning, every event involves some level of risk. And that in turn brings a variety of legal considerations. 

“Planners need to weigh the risks and benefits associated with every meeting location they’re considering,” says Philadelphia attorney Joshua L. Grimes. “There are legal consequences to canceling an event, failing to meet a contracted room block and to assigning responsibility when something goes wrong. The days of meetings proceeding just on good faith without each party agreeing to be legally liable for their obligations are over.”

Of course every problem doesn’t have serious repercussions. Frequently the threat of legal action is a hollow one voiced by those who feel aggrieved, or that possibility is not even raised. But the legal angle should never be ignored.

“The days of meetings proceeding just on good faith without each party agreeing to be legally liable for their obligations are over.”
— Joshua L. Grimes, Esq.

“While many times there is no harm from a failure to follow good practices or take potential legal issues into account, if something does go wrong, there may be the potential for liability, financial loss or personal injuries,” says Laurie E. Sherwood, a partner at Walsworth LLP, a California law firm.

In fact it’s extremely important to take legal considerations into account and treat them seriously, according to Wendy Spivak, principal and co-founder of the Castle Group, a Boston firm focusing on PR, events management, crisis communications and digital media. She notes that agreements are the foundation of the vendor/partner relationship and are a reflection of the climate in which meeting planners will be working. At the same time, they are not the only factors to take into account.

“All event details flow from a contract — from financial arrangements, cancellation and attrition to concessions and confirmed function space,” she says. “However, it’s important to be cognizant of legal considerations beyond contracts as well.”

Beyond Contracts

She notes that ADA regulations, environmental requirements and tax regulations, among others, all have potential legal implications and need to be taken into consideration. Spivak says planners also should be sure to consider noise and open flame restrictions and local licensing requirements, especially if the event is being held in a different country or culture. An example is Europe’s strict entertainment licensing fees, which are important to take into account when planning abroad.

It should never be forgotten that while many forms and templates used in planning meetings may seem mere formalities, once signed these forms become contracts that govern the rights and responsibilities of the participating parties. This means they have real legal and financial consequences, notes Patricia S. Mahlstedt, Esq., a member of Eckert Seamans Cherin & Mellott LLC in Pittsburgh, Pennsylvania.

In the process, it pays to remember that your client also is the hotel’s client.

“Although the hotel certainly wants to make a profit on the event, it is in the best interest of both you and the hotel that the client is happy with the event,” she says. “Therefore, if you make reasonable requests of the hotel in your contract negotiations, the hotel will typically make an effort to accommodate your request.”

As an example, she points to a situation where a hotel’s proposed form of agreement asks for a deposit but the planner is concerned the group may need to cancel for any number of reasons. An alternative might be to ask that any cancellation fee be reduced if the hotel is able to book an event over the same period with another group, or request that the client be permitted to cancel the event (without a cancellation fee) within a designated time period prior to the event dates. Mahlstedt says that in making these requests, it’s always wise to understand the hotel’s perspective. Since the hotel is turning away other business when booking for the specified dates, hotel reps will likely request that a minimum fee or a termination fee be paid, or that the group rebook the event within another designated time period.

Similar logic applies in instances where unusual risks might be involved.

“If your event includes something the hotel will perceive as a higher risk, such as fireworks on property or a fire-eater at your luau, then the hotel will almost certainly request additional insurance and indemnification from your group, Mahlstedt says. “Be prepared to address those with your client.”

Not Cookie-Cutter

Much of the challenge in dealing with legal considerations is the broad range of circumstances that might be faced.

Sherwood offers an example where a meeting planner contracts with an outside vendor to plan a physical teambuilding activity. The vendor decides on a relay obstacle race. During the event, one of the participants trips and breaks his ankle. Sherwood says that depending on the jurisdiction, legal issues could include whether the activity was voluntary; whether the injury is covered by workers’ compensation; and whether the participant could sue his employer, an outside meeting planner or the activity vendor. Another factor would be whether the contract with the activity vendor contained indemnity and insurance provisions protecting the employer or outside meeting planner.

Grimes cites a situation where a group fails to meet its room block and a hotel assesses attrition damages. In such an instance, the meeting contract must be carefully reviewed to determine how to properly calculate the amount owed by the group in damages.

“If the contract contains a rebooking clause, the group may be entitled to a partial credit for rooms in the group’s block that the hotel is able to rebook,” Grimes says. “There are frequently legal disputes over the proper amount owed by the group.”

Another example involves a group’s right to cancel a meeting without liability when a hurricane causes extensive damages to the meeting hotel. Grimes notes that if the hotel will not be operating due to the weather damage, the group will be relieved of its obligations. But if the hotel might be able to repair its facilities and reopen shortly before the meeting dates, disputes can arise as to whether “act of God” cancellation is appropriate.

“The group will argue that it should be able to cancel because there is no guarantee the hotel will be up and running in time, and the hotel will argue that it will meet a re-opening deadline,” Grimes says. “These kinds of disagreements can be resolved only after a careful examination of the facts unique to each situation.”

Kerry Bannigan, co-founder and CEO of Nolcha Events, a New York City events agency, says that the process of obtaining legal permits can itself pose challenges. She recalls the effort involved in arranging a tent for a media meeting space at a high-level international event.

“Due to the outdoor requirements as well as security measures that had to be taken, the sign-offs of legal permits and vendor contracts were crucial,” she says. “Time was ticking extremely fast for the approaching event deadline and each day there was another obstacle to receiving legal sign-off.”

She says the stress level was high as everything else had moved forward for the event — guests, media, catering, scheduling — but until late in the game, word had still not come through on the permits.

“Thankfully all worked out fantastically in the end,” Bannigan says. “But I always recommend being prepared for this type of thing when a client puts together a last-minute event.”

And no matter the level of previous experience, there always seems to be the potential for something new.

“I have reviewed thousands of contracts and faced many challenges over the years, but just recently had a situation that surprised even me,” Spivak says. “After weeks of negotiation with a large global hotel brand, and over a million-dollar program, we almost had to walk away because we could not come to terms on the cancellation policy.”

She says that traditionally, cancellation clauses are rather straightforward but this hotel wanted to include language that would allow the hotel to cancel her group at any time for any reason.

“This was clearly unacceptable,” she says. “We were signing this contract on behalf of one of our clients and would never put them at risk in that way. We stood our ground and got our lawyers involved to add a little weight to the situation since we were dealing with a huge global entity.”

Ultimately, the hotel agreed to the terms, and the cancellation clause was removed. But a lesson affirmed was that sometimes it’s necessary to “get scrappy,” Spivak says.

Care With Contracts

When it comes to contracts, paying upfront attention to all details is the only way to go, according to Mahlstedt.

“It’s easy to skim over the boilerplate legal language at the end of the agreement and focus on the business terms and fees on page one,” she says. “However, the legal language can have a significant financial impact on your client if an issue arises. It’s important to understand the benefits and the risks of the provisions in the agreement.”

She says if there is a provision you don’t understand or have questions about, it’s best to ask a lawyer.

“An experienced hospitality lawyer will be able to interpret the provision for you, give you a sense of whether this language is typical in the marketplace, and/or provide you with suggestions for a compromise position that will work to the benefit of your client,” she says.

Sherwood agrees on the value of expert help.

“While the meeting planners can generally negotiate the terms of a contract, it’s advisable to have an attorney review the actual contracts before they are signed,” she says. “In negotiating terms of contracts, it is important for the meeting planner to not only focus on the key terms that are important to them and their meeting group, but also to focus on minimizing risk.”

Knowing your client also is a must.

“Different clients have different needs, and that will vary by industry and by individual entity,” Mahlstedt says. An example would be a pharmaceutical company that is sensitive to having a competing group booked at the hotel at the same time as its event. Planners might request a restriction against booking competitive groups, and also provide the hotel with a list of the names of the companies or groups that the client deems to be competitive.

“Attaching the list to the agreement will avoid any confusion by the hotel upfront and significantly lessen the risk of issues arising in the future,” Mahlstedt says. “So it is to the benefit of both parties.”

Spivak agrees that negotiating carefully at the outset is a key to avoiding surprises in any contract, as is reviewing each provision.

“Make sure to ask for what you need at the beginning of the negotiation process to avoid confusion and streamline the process,” she says. “Look at every contract with a fresh set of eyes. No two contracts are the same, and all require careful review.”

And the need to scrutinize the final version should not be overlooked.

“Always reread the contract before you sign,” Spivak say. “Sometimes there are so many rounds of edits that important details can unintentionally be left in or removed. Be sure all changes are updated in the final version.”

That includes making sure all provisions are acceptable whether the omission was intentional or not, according to Grimes.

“If something is missing from the contract, or a provision doesn’t seem right, the planner should insist on making important changes before signing,” he says.

In the process, language should be clarified wherever necessary

“The nature of a contract should be easy to read and follow for all parties,” says Amberlee Huggins, president and chief marketing officer for CSI, a Washington, DC, destination management company “When dealing with clauses that you are unfamiliar with during your negotiations, ask for examples where the clause may apply. If necessary, add this within the contract.”

She says that while contract terms may be written in black and white, unexpected events often occur. Provisions such as “what is reasonable in the circumstances” or “what the intention was between the parties” may need to be applied should a matter go to mediation or arbitration.

On the other hand, in some instances it serves all concerned to be more specific. For example, clauses pertaining to insurance requirements should be very specific, according to Huggins. She says the term “reasonable insurance” will mean different things depending on the entity or type of business with whom you are contracting, with a small business typically carrying different levels of insurance than a larger entity or hotel.

“Consider your insurance tolerance for the event at hand versus general policy and look to negotiate this if it works in your favor,” she says. “If you’re asking an entity to increase their insurance limits to meet your usual corporate guidelines, be prepared to see the additional costs applied to your program, as very often a small business will look to cover you as requested while retaining their existing insurance levels.”

Grimes recommends taking the time for some advance preparation leading up to contract discussions.

“Create a list of ‘must haves’ before starting negotiations that you can present to your contracting partner at the start of discussions,” he says. “Have other options in case you can’t reach an acceptable agreement with your preferred meeting venue or vendor.”

Plans for the Unexpected

No contract covers everything, and no plans are flawless, but some basic efforts will help head off legal problems.

“It’s important for meeting planners to do due diligence in selecting various vendors and suppliers such as venues, hotels and activity organizers,” Sherwood says. Along with checking liability policies to know what is covered and what is not covered, she advises having a crisis management plan in place in case of an incident.

Environmental hazards may merit special attention. Typical is the uproar created by the latest virus or infectious disease outbreak.

The Zika virus reflects one of many unwanted and in some instances, unexpected factors in the meeting and events industry, Huggins says. “Whether it is that attendees will choose to cancel or your organization has internal or external perception considerations, environmental threats are a part of meeting life.”

Health threats such as Zika and Ebola should be covered in a force majeure clause in the meeting contract, Grimes notes. The clause should be written if the threat is deemed by an independent medical body to be so serious that travel is inadvisable for meeting attendees.

“Some contracts also allow force majeure cancellation if the disease causes a large percentage of group members to cancel their meeting attendance,” he says. “This must be covered in the meeting contract, because if it isn’t and a disease takes hold, it is almost certain that the group and its vendors will argue over whether cancellation is warranted.”

Communicating with prospective travelers about dangers also can be a good idea.

“In the case of environmental threats such as Zika, prudent meeting planners with upcoming meetings in affected locales may want to direct participants to the CDC’s website and recommend they consult with a medical professional before traveling,” Sherwood says. This enables meeting participants to make informed health decisions and decide whether to proceed with their trip, she notes. Depending on the target population and the timing of the event, planners also may want to consider alternative locations. C&IT

An event at the Arizona Biltmore, a Waldorf Astoria Resort in Phoenix. Credit: Visit Phoenix

In addition to near perfect weather most of the year and a landscape that inspires awe, Arizona appeals to meeting planners and attendees thanks to its wealth of adventures and experiences, diverse cities, sophisticated dining and an enormous range of lodging options.

Arizona brilliantly melds its rugged Western heritage with a deeply rooted spirituality and focus on wellness that draws from both Native American and contemporary influences. Its business facilities, from intriguing intimate local venues to large convention centers, consistently deliver what groups want and need, and Arizona CVBs and DMOs are known to be excellent partners, able and willing to assist planners with what they need. In short, set a meeting in Arizona and success is bound to be the result.

Phoenix

Downtown Phoenix has enjoyed a renaissance in recent years and growth that includes new hotels and new venues. Phoenix Convention Center & Venues, with more than 900,000 sf of meeting and exhibition space, has been named among the top 10 convention centers in the country.

And though Phoenix draws business from across the world, it also draws from companies headquartered in the metro area that know exactly how much the city offers. That was the case with Scottsdale-based HelmsBriscoe, which held its 2016 annual business conference with 1,800 attendees in downtown Phoenix in June.

“Downtown Phoenix is a wonderful partner of ours, and being able to have our annual conference in the city where our global headquarters is located was very well received by all attendees,” says Peter Shelly, executive vice president with the company and the 2016 annual business conference chair. “With Phoenix as a hub for most major airlines, attendees enjoyed the airlift and close proximity of the airport to our two host hotels. Our partners at Visit Phoenix were outstanding in making our group feel welcome, and it was the first time in our 24-year history that we hosted our annual conference in our hometown.”

The group made use of multiple venues in downtown. “Along with Visit Phoenix and many of our industry sponsors, we hosted an amazing street party at CityScape in downtown Phoenix on our opening night,” Shelly says. “After our opening general session concluded at Phoenix Symphony Hall, our attendees took a few minutes to walk over to our street party, which took place right in the heart of downtown. The focal point of the evening was the outstanding entertainment, from street performers and dancers to old cars and unique experiences provided by Walter Productions. While the majority of the evening’s activity did take place outdoors, all conference attendees could also enjoy the hospitality of four local restaurants throughout the evening, including Blue Hound, Copper Blues, Squid Ink and The Corner.”

The group was based at the Sheraton Grand Phoenix and Hyatt Regency Phoenix, both in close proximity to the Phoenix Convention Center, where the majority of conference events took place. “From a planning point of view, both properties’ conference service managers were easy to work with, always available and prompt in their responsiveness,” Shelly says. “The two headquarter hotels rolled out the red carpet to our group and had a wonderful sense of arrival for all delegates. Both hotels scored 9.5 out of 10 in our post-conference evaluations by attendees, so I am confident when I say everyone was impressed with the level of service at both host hotels.”

Shelly’s advice to planners considering his home city is to engage at the outset with Visit Phoenix. “Involving Visit Phoenix helped to make our meeting a great success. Despite the fact our meeting was in June, a warm time of year here in Arizona, with good planning and assistance from the local experts and city of Phoenix ambassadors, the weather was not an issue. The Visit Phoenix team is creative, resourceful, always ready to take your event to the next level, and they’re great partners to work with for citywide events.”

Sheraton Grand Phoenix provides 1,000 rooms on 31 floors, and 112,000 sf of indoor-outdoor meeting space; Hyatt Regency Phoenix offers 693 guest rooms and 48,000 sf of flexible function space.

Just north of the city center and offering a different sort of vibe, Pointe Hilton Tapatio Cliffs Resort also is an ideal meeting destination. Steven Beck, owner of Seek & Find Travel LLC, brought one of his clients, a marketing organization, there for its annual sales and training meeting and its regional manager sales meeting, the first in June and the second in September. The meetings had 125 and 100 attendees, respectively.

Like others, Beck points to the many attributes of Phoenix as a draw for planners. “Phoenix has much to offer whether cultural, sporting, environmental or dining, which were all important to the groups,” he says. And then there’s “how surprisingly beautiful the city is, especially at sunset, and the tremendous number and variety of meeting locations.”

Beck’s groups found everything they wanted at the resort, including the right amenities, a competitive rate and the fact that it had recently been remodeled. And, Beck adds, there was much that stood out, including “the sales team, onsite support team, engaged leadership (hotel managers), the restaurant, beautiful rooms and the golf course.”

Additionally, Beck notes, “Rooms surround the meeting rooms, providing easy access. Meeting rooms are done in a Mediterranean décor with some Southwest. Plus, AV is standard so no issues, and the catering was remarkably well done.”

For these groups, this location was definitely the right choice. “I liked the feel of the resort because it felt like we were in our own little part of Phoenix,” Beck says. “It would not have had the same feeling downtown.” And, he adds, the resort staff “has a ‘here to serve’ attitude.”

For all those reasons, Beck highly recommends the resort to others. “Start at Pointe Hilton Tapatio Cliffs Resort before you go anywhere else, especially if you are looking for a place that is unique with a wonderful staff and that answers many of the desires from your client.”

Pointe Hilton Tapatio Cliffs, set in Phoenix Mountain Reserve, offers eight pools, 65,000 sf of indoor/outdoor venue space, plus access to Lookout Mountain Golf Club. An $8.5 million renovation of 544 of the resort’s 584 two-room standard suites was recently completed.

Scottsdale

Although connected to Phoenix, Scottsdale has its own vibe and an ethos born of its strong Western roots and its status as one of the most sophisticated upscale cities in the state. That’s exactly what Melissa Jimenez, global events director at Reval, a leading technology company providing cloud-based software to help clients manage cash and financial risk, found in Scottsdale.

The September event, Reval Connections, drew 200 attendees. “For our specific event, I was looking for a unique space to fit our theme ‘Camp Reval,’ which was a luxury adaptation of the best of childhood summer camp combined with cutting-edge treasury-technology content,” Jimenez says. “Our conference was in Las Vegas the previous year and I was looking for something more intimate and personal. Scottsdale provided many indoor-outdoor options, and I was excited to explore them and break away from the traditional conference model. The city also has a low sales tax, which heavily influenced my decision.”

The group was based at The Scottsdale Resort at McCormick Ranch, a Destination Hotel, and Jimenez says several things influenced that choice. “The hotel recently underwent a massive renovation, and it’s gorgeous. The meeting space is modern and laid out beautifully. I had a tremendous meal during my site visit — so good that I came back the next day after looking at other properties just to eat there.”

Jimenez calls the hotel chic with a smart layout, which includes rooms that are just a short walk from the meeting space. “The décor is a nice combination of antique, modern and comfortable. It’s beautiful and feels luxurious without being pretentious. The pool bar is fun and relaxed. The rooms are comfortable, spotless, and if there is an amenity you are looking for, they have it or will get it.”

Moreover, the hotel ably helped facilitate the group’s intricate theme. “This was not a rinse-and-repeat production model,” Jimenez says. “During my site visit I explained how the theme would need to be executed during our program, and they not only listened but contributed ideas, and those ideas were good. Everyone from the front desk to the landscapers to the catering staff was friendly and helpful — and not in a ‘we’ve been trained to be this way and hate what we do but have to behave in this manner’ way. It was a genuine ‘we are in this together as a team and I enjoy my job’ way. And I can sniff out the difference really quickly.”

And then there was the convention manager, about whom Jimenez says, “Hands down, I had the best convention manager ever. She was on top of everything and a true joy to work with. Additionally, the PSAV team was top-notch and their influence made my program exceed my expectations. You know they are amazing when clients are emailing you post event to say how wonderful the AV was! Finding the right personality fit of the team you will be working with matters, and these guys are the best.”

Jimenez encourages others to consider The Scottsdale Resort at McCormick Ranch. “Visit the property and be open to something different,” she says. “They will partner with you and will be your best asset when things go off plan. It rained during our event, yet our transition to being indoors was seamless. They are fun to work with. We had everything from two different room drops, a custom welcome at check-in to some unusual event creative throughout the property, and it was all well executed. Planning is an art. It’s also a ton of work. Our program took almost a year to put together, and it’s so nice to work on a project and have fun with the extended team while doing it.”

The one downside for Jimenez is flights in and out of Phoenix, which she calls limited compared to other larger cities. “I wish there were more afternoon flight options, and I think the demand is there,” she says. “It’s a bit harder for international travelers to have their connecting flights line up. I hope the airlines take notice of that, because I do think it’s the only issue I would raise.”

Other than that, she believes “Scottsdale has it all.” To her fellow planners she says, “Do your homework so you know exactly what you’re looking for. Don’t site visit just to see what is ‘out there.’ Create your wish list and then go see the venues that match your wish list. I used a site-search company to help narrow my search and was glad I did. I looked at several cities before choosing Scottsdale and dozens of properties before choosing the six or so I visited. From there, follow your instincts. If you are a good planner, your instincts are usually correct so don’t ignore them.”

Scottsdale Resort at McCormick Ranch features 326 guest rooms and 50,000 sf of recently renovated meeting and event space, plus access to the McCormick Ranch Golf Club.

Tucson and Marana

Within the Sonoran Desert and surrounded by multiple mountain ranges, Tucson is an outdoor lover’s paradise and a modern city offering a lot for meeting planners and groups. Marana, about 25 miles northwest of Tucson, is a smaller town in the high desert that also packs a lot of meeting punch. Both cities have easy access to Saguaro National Park and Tucson Mountain Park, and to a variety of outdoor experiences including exceptional golf. Among Marana’s lodging options is The Ritz-Carlton, Dove Mountain, which is where Diane Tungate, executive assistant at a global plastics, packaging and engineered materials company, who has planned meetings for the company for 20 years, will set the 2017 Engineered Materials Sales Meeting next September.

It’s no accident that the 2016 meeting in Fort Lauderdale is also at a Ritz-Carlton. “I received a cold call from Gina Kirby, director of national accounts with The Ritz-Carlton, Dove Mountain, at the time I was looking for a hotel in Fort Lauderdale for our 2016 meeting,” Tungate says. “Gina set me up with the Fort Lauderdale property, then convinced me to tour the Dove Mountain facility for our 2017 meeting.”

About the two events, Tungate says, “We partnered with Ritz-Carlton for both 2016 (in Fort Lauderdale) and 2017 (in Marana) and worked out a great meeting package.”

In terms of Dove Mountain’s location benefits, she points to “the climate, great airport and beautiful scenery. Our meeting attendees overwhelmingly request meetings where the temperature is warm and scenery is beautiful,” she adds. “While the airport isn’t as close to the resort as other locations we’ve been, traffic seems to flow very smoothly making the drive very easy.”

As for the resort, a Forbes Five Star property, Tungate says she had several things to consider on her site visit. “What was the overall appearance of the property (was it clean and updated)? Was the meeting space adequate size with enough breakout space? And were the sleeping rooms and beds nice? Another item I considered is whether the resort has unique space for dinners. I try to avoid dinners in traditional banquet rooms because I like the attendees to have fun and unique experiences to break up the full days of meetings.”

In the end, the hotel met the necessary requirements of the group, which will be about 200. While planning has only just begun for 2017, Tungate says, “Gina Kirby has gone above and beyond to help me up to this point.”

With most of the planning yet to come, Tungate has already chosen some venues for dinners on the first two nights of the conference. “On the first night, we’re booked to have dinner outside on the golf course, including a glow-golf experience for our attendees as an icebreaker. On our second night, each market segment will break down into its own group and will have separate market-segment dinners. During those dinners, we will utilize the pool, patios, lawn and any other unique space offered by the hotel,” Tungate says. “But venue spaces won’t be assigned until I have a better handle on how many will be in each group.”

The Ritz-Carlton, Dove Mountain features 253 guest rooms, a spa and 44,000 sf of indoor-outdoor function space, plus access to the Golf Club at Dove Mountain.

Sedona

The ideal setting for small to mid-size groups, Sedona is one of Arizona’s most compelling destinations with its famed red-rock formations and mystical energy. It also offers a vibrant art scene, trendsetting dining, rich culture, Native influences and exceptional shopping, spas and adventure.

Among Sedona’s meeting-friendly properties is Enchantment Resort, which offers 217 guest rooms and 13,000+ sf of meeting space within its stunning 70 acres, plus a highly regarded spa, golf and countless outdoor experiences.

Whichever towns groups choose, Arizona has what it takes to drive strong attendance and to provide an experience that will translate to positives on post-conference surveys — not a bad place for planners to start…and finish.

New & Noteworthy

Phoenix-Scottsdale Metro Area

This month, The Phoenician in Scottsdale is scheduled to unveil a complete renovation of all 585 guest rooms and suites. The redesign includes new furnishings, carpeting, wall coverings, tiled entryways, quartz stone countertops and new patio furnishings, including a day bed. Locally sourced artwork and details that speak to the area’s and the resort’s history, culture and destination also are incorporated. Special features include USB ports on the night stands and reading lights in the bed headboards. Ground-level casitas also offer new fire tables on the patios.

The tallest building in Scottsdale is the 15-story, 496-room Talking Stick Resort, featuring sweeping views of the city and mountains from guest rooms and the rooftop Orange Sky Restaurant. Operated by the Salt River Pima-Maricopa Indian Community, the AAA Four Diamond Talking Stick offers a cultural center as well as culturally rich experiences. In addition to 113,000 sf of indoor-outdoor meeting space, the resort has a 650-seat showroom, casino, spa, 11 restaurants and the Talking Stick Golf Club, with two championship Troon-managed courses.

The legendary Arizona Biltmore, a Waldorf Astoria Resort in Phoenix, melding 1929 glamor and an upscale contemporary aesthetic, unveils a renovation this fall, providing a new look to its lobby, social spaces, meeting spaces and 98 main-building guest rooms. More than $35 million went into the upgrades.

The Westin Kierland Resort & Spa started the year with enhancements across the property, including to guest rooms and the Adventure Pool Complex. The resort added a new small meeting/event space, Edie’s Range House, accommodating 12 for a board meeting or intimate event, and it opened an island in the middle of its lazy river attraction, perfect for up to 20 for teambuilding or other activities.

The Andaz Scottsdale Resort & Spa, scheduled for a November opening, is offering 201 bungalow-style guest rooms and 20,000 sf of meeting and event space across 22 acres.

In February 2017, a new resort Mountain Shadows will open in Paradise Valley. The 183-room resort will include an executive golf course, a 5,000-sf fitness center and 37,500 sf of indoor-outdoor meeting space.

Carefree

In April, The Boulders Resort & Spa announced completion of its yearlong renovation that included updates to the Main Lodge, changes in Discovery Lounge to better frame views of the 12-million-year-old boulders for which the resort is named, and modernized décor for Palo Verde restaurant. Brand new is the 5,500-sf Latilla Ballroom in the Main Lodge, and the resort’s 160 casitas have been upgraded. And in July, the Boulders announced a slew of new customized corporate wellness programs designed to help improve self-awareness and center the mind, body and spirit for meeting guests. C&IT

A corporate group tells its team story in comic book format in this program designed by Play With a Purpose. Credit: Play With a Purpose

Back in the late ’80s, corporate teambuilding started to gain traction as a best practice, and one could say that it got off on the right foot. The activities were geared toward improving how teams perform in the workplace, and that connection was clear to both participants and the company that invested in the program. By the 2000s, however, the concept of teambuilding had become diluted, and the word today continues to be applied to a variety of group recreational activities that lack defined learning objectives and an explicit connection to the workplace. Longtime teambuilding professionals therefore stress the distinction between true teambuilding and mere group recreation, what Greg Huber calls “team bonding.”

“How are you going to define success at the end? And what do you plan to do after this event (to support the lessons learned)? …My question is, we’re going to get something started, but how are you going to keep it alive?”
— Gregory J. Huber

Huber, president of Richmond, Virginia-based Signature Teambuilding & Challenge Discovery, has designed and delivered these programs for 25 years. For him, teambuilding involves a “facilitator or leader who’s taking the time to draw out the learning and create the conversation leading it back to work performance.” Without that element, the most that will likely result from the activity is camaraderie, which might begin to dissipate once participants are back in the office. Arguably then, suppliers who tout any camaraderie-building activity as “teambuilding” are really just capitalizing on a buzzword.

True Teambuilding

Closer to true teambuilding is the activity that builds camaraderie by requiring participants to collaborate on reaching a goal. And when a facilitator connects that mission to workplace performance, true teambuilding is achieved. A teambuilding professional since the mid ‘80s, Sharon Fisher, CEO of Orlando- and Las Vegas-based Play With a Purpose, distinguishes three levels: “The first one is about relationship-building and team bonding; it’s just about having fun together. The next level is the activity where you have to work together as a team to accomplish something, and that can range from a beach olympics to building bikes to cooking together. And the next level includes a training and learning component that helps the group relate what they just did and the insights from it to their day-to-day work, and (explains) how to continue to build the team.”

If a company is setting aside valuable time during a meeting to stage a teambuilding event, a case can be made for investing in the third level, which delivers more ROI. Attendees will certainly have fun at a ballgame together or on a group tour, but (a) they may not bond with any employees beyond their circle of acquaintances, and (b) they’re not likely to significantly improve their teamwork at the office as a result. “I tell clients that everything we’re going to do is just as fun, just as engaging,” says Huber. “And it’s carefully designed to include everyone, and you’ll get these added benefits and outcomes. They’re surprised and say, ‘I never thought about that.’ ”

One of Huber’s clients is a property management company that deployed Signature Teambuilding’s “Shifting Gears” activity at its annual managers meeting. The approximately 30 attendees engaged in a series of connected problem-solving activities at a local college gymnasium. According to the client company’s president, “In the past our teambuilding has been basically fun activities like bowling. This was different for us in that we were hoping that people would have fun, but that also there would be a learning experience. So that was our experiment, so to speak, with Signature.”

The experiment worked, as Huber ensured there was a takeaway for the managers. “He did a very good job at the transition between activities, each one building on the one before, as well as relating it both to something that you can learn about yourself for life and the work environment.” When Shifting Gears concluded, “he had us come to a room with chairs in a circle and discuss what we had learned. I was quite surprised at the number of people who elected to say something, the vulnerability. Most of it centered around appreciation for their team members and thanking individual team members.”

Real teambuilding is also distinguished by what is done prior to the event, not just during and post. The facilitator should get a sense of participant demographics, any challenges they are facing in the workplace, and desired outcomes.

“How are you going to define success at the end? And what do you plan to do after this event (to support the lessons learned)?” Huber asks his potential clients. “At an adventure park or go kart track they’re never going to ask you that, they don’t care. My question is, we’re going to get something started, but how are you going to keep it alive? If they don’t have a plan, I encourage them to create one. Also I ask, how does teamwork work in your organization? What does it look like in your company right now? For teams that are already operating at a high level, we should see that in the activity.”

Demographic Challenges

As far as demographics, a group’s ages, professions, levels of seniority, etc., all can factor into the choice of activity. For example, Fisher has found that “C suite people don’t want to look foolish in front of their peers or associates,” and so activities with minimal risk for such scenarios are better choices. She also has found that millennials are “into adventure and physical challenges” whereas older professionals may prefer more sedentary, brainy activities. One such activity Play With a Purpose offers is called “Beat the Box,” where participants work in teams to attempt to stop a “bomb” countdown by cracking a code. The code must be entered in an electronic combination lock before the time has elapsed, and participants work to discover the code by solving various puzzles contained in cases, such as letters that have to be ordered correctly to reveal a message.

However, there are certainly physical challenges that are manageable by attendees who are older and/or less athletic, such as Signature’s adaptation of the traditional ropes course.

“TeamQuest, our ropes course, is designed to be as inclusive as possible,” says Huber. “It’s different from most high ropes courses because you climb up a net, and you move more horizontally than you do vertically, so little upper body strength is required. If you can climb two flights of stairs you can do this course.

“Plus, everybody can go up together as a team, unlike other courses where it’s one at a time. So no one person feels performance anxiety. They translate that to the workplace: It’s not just about me getting there, but all of us together.” Ropes courses are in fact making a comeback from their heyday in the ‘90s, Huber observes. However, he cautions that there are plenty of courses that are not facilitated, and these are better suited for family fun than for corporate groups that want a teambuilding benefit.

Collaboration vs. Competition

Demographics may suggest that an element of competition should be included in the teambuilding activity; sales reps tend to thrive in a competitive environment, for example. But millennial salespeople may not be so keen on that aspect. “The emerging professionals are not into competition, not nearly as much,” Fisher observes. “If you do an independent survey, which we do when we’re talking to millennial planners, basically they say, ‘No, we’re into collaboration. We want to do something where we work together to accomplish a goal.’ ”

In fact, it is arguable that competition should not be the primary focus of teambuilding, whether or not millennials are involved. “When we get the request for competition, ‘we want a winner and a loser,’ we’re probably not the right fit for them, because we’re focusing more on collaboration,” says Huber. “That is not to say that competition isn’t a healthy attribute of a team. But when competition fails to serve you and you can no longer see opportunities for collaboration, then you have a problem. Plus, competition is so inherent in every organization that they don’t need any help with that; they have plenty of it.”

Addressing Workplace Issues

Workplace challenges also will inform the choice of activity, and whether to teambuild in the first place. Oftentimes, companies undergoing mergers and acquisitions must integrate new teams. Other times, a company will want to explore the potential — perhaps the leadership potential — of certain employees, and a teambuilding scenario can bring latent skills to light. “The leader at work isn’t the leader here, which allows other people to show strengths that sometimes are diminished at work because of their position,” Huber explains. “So then you see the way they naturally behave, which gives the opportunity to evaluate behavior. They may see capabilities they’ve never seen before.”

Facilitating change management is another motivation for teambuilding. Signature’s WaterWorx activity is geared toward that goal, setting the scene as follows: “Your team has two options: complain about the circumstances, or refocus their strategy to meet the goals.” The learning outcomes are equally well defined: letting go of old ways of doing things, embracing change and using it to one’s advantage, and communicating in high-pressure situations.

Change Management

At Newport News-based Ferguson Enterprises, a change management platform was recently added to the training department’s Performance Adventure program, which provides experiential learning to Ferguson associates.

“We continually evaluate what is happening inside and outside of the business and design our offerings to best support our associates,” says Mark McNitt, director of training. “Currently, our organization is changing the way we service our customers, with some new processes that are a big departure from how we have conducted business over the past 60 years. The more informed our associates and leaders are about how to manage change, the more likely they are to excel personally and professionally.”

The change management platform emphasizes collaboration in the face of challenges, and includes the use of roleplays and skits, which McNitt describes as “a great way to enhance learning and increase retention,” not to mention teamwork. The change management program, along with another new one on stress management, were rolled out in September.

“While it’s too early to gauge results, our accountability mechanism and action plans will help to ensure positive behavior changes, and we expect improved cohesiveness thanks to the new training programs,” says McNitt. “The response to the new programs has been overwhelmingly positive.”

Flip Learning

The combination of teambuilding and learning work-related content can be powerful in terms of ROI, and is perhaps less recognized than the combination of teambuilding and diversion, which is quite common. “One of the things that’s getting very popular right now is flip learning, and basically the concept is that you give people all the education and learning that they need prior to the meeting, and then at the meeting you use that time to work together and figure out how to apply the learning,” Fisher explains. “So we did a teambuilding event for a company that makes contact lenses and they were introducing a new product, so they sent all the product specs to the sales reps before the conference. At the conference we had created four different interactive games that they played in teams that reinforced everything they were supposed to have learned prior. So it tested to make sure they understood it, and it brought to light who doesn’t know their stuff.”

She adds, “We’re starting to see this blend of learning and teambuilding all the time now; clients want to get more out of their teambuilding.”

Fitting It In

Maximizing the bang for the buck on these activities is especially important for companies that have limited time to spare at meetings. “When I started doing this 24 years ago, everybody had three or four hours (for teambuilding) during the course of the meeting,” says Fisher. “And they were willing to spend the time to cut loose and just do something fun and build those relationships. Well now it’s very short; if we do a teambuilding event of an hour and a half, that’s pretty unusual, and what our clients really now want is to do a team event at a coffee break. Or they want to immerse it into the learning at the session.”

For example, Grapevine, Texas-based GameStop incorporates teambuilding components into the general session for its National Sales Meeting. First, the seating is colored coded for each team using chair back covers; teams with the highest performance ranking are seated at the front as an incentive.

“This extra effort in our general sessions ensures that teams are able to sit together and show their team spirit,” says Judy Payne, CMP, director, meetings and travel. “The teams often vie for the title of ‘most energy,’ and it really keeps our sessions alive.” Second, attendees opt-in to the general session by their region/team; GameStop has 30 regions across the country, each with about 200 stores. The teams then participate in contests at the session by texting answers to trivia questions. “We show the results real-time to encourage team participation and fun (hence the activity’s name, Text-to-Screen),” says Payne. “And whichever team gets the most correct answers, wins.”

While Text-to-Screen does not reach Fisher’s “third level” of teambuilding, where the activity is correlated to workplace performance via a facilitator, it has the advantage of time efficiency: The activity is self-explanatory, and attendees participate directly from their seats at the general session. Thus, when meeting schedules do not allow for true teambuilding, there are still ways to evoke some team spirit. C&IT

Scott Steinberg is an award-winning professional speaker, a bestselling expert on leadership and innovation, and the author of Millennial Marketing: Bridging the Generation Gap and Make Change Work for You: 10 Ways to Future-Proof Yourself, Fearlessly Innovate, and Succeed Despite Uncertainty. Among today’s leading providers of keynote speeches, workshops and seminars for Fortune 500 firms, his website is www.AKeynoteSpeaker.com. 

Take a second to stop, pause and look around you the next time you’re at a meeting or event, and you may notice something surprising. The faces of tomorrow’s leaders are quickly changing. With 74.5 million members and counting, millennials, or Gen Yers (individuals roughly 19–35 years of age) are now the single largest generation in America, both in and out of the workplace. What’s more, the way in which they communicate, interact and process information is vastly different than any generation that’s come before. In addition, Gen Zers (the generation which follows, members of which were born after 1995) whose habits and norms vary wildly even from millennials, are quickly following right behind. Needless to say, as we discovered while researching my new book Millennial Marketing: Bridging the Generation Gap, those of us looking to inspire and motivate these individuals must learn to communicate with them in vastly different ways than with the generations who have come before.

Millennial Messaging

With regard to Generation Y, several important points to note before crafting messages or outreach efforts are as follows. By the year 2020, a third of all adults will be millennials. Nearly nine in 10 won’t measure success in terms of money, but rather their ability to accomplish goals and make a difference in their business or community. Roughly 80 percent will want to work for innovative companies, and expect, in fact, to run their own forward-thinking entrepreneurial ventures at some point. Furthermore, like boomers, millennials will hail from a wide swath of age ranges — cultural touchpoints and references that speak to one group of millennials won’t necessarily make sense to all, as you’re actually looking at multiple generations rolled into one category.

However, it’s important to note that virtually every member of this generation will have grown up in an online and connected world, where they’re bombarded by media and messaging on a 24/7 daily basis. The net result? Attention spans are shrinking, millennial audiences are increasingly tuning out messages they don’t connect with, and — before they’re willing to invest their time and attention in efforts — young professionals increasingly need us to show them how, by getting involved in any given venture, their contributions will make a meaningful difference.

As for Gen Zers, who are following in the footsteps of millennials, also keep in mind that they’re the first generation who have ever grown up in a mobile world, where virtually everything is available on-demand, personalized to taste, and just a click or tap away. Within four years, these individuals will represent nearly a quarter of America’s population — and their attention will be harder to capture and hold than ever. Case in point: Gen Zers use five screens a day on average (smartphone, tablet, TV, desktop and laptop) — as compared to millennials, who use just three. What’s more, Gen Zers are far more social than their forerunners, spending up to eight hours a day interacting with friends and family — they love opportunities to interact, such as those meeting planners can regularly provide. But when you’re attempting to lead or communicate with them, it’s also vital to keep in mind that as result of growing up in a wireless world, their average attention span now lasts just eight seconds — less than that of a goldfish. As you can see, providing clear, concise and engaging messages as part of communications efforts will be key to engaging them. And rest assured, engaging them will indeed be vital to ensuring your organization’s future.

What Gen Y and Gen Z Want

Noting these points, as you go about empowering tomorrow’s leaders and designing programming and outreach efforts that support your endeavors, you’ll want to keep the following items in mind:

Gen Y and Gen Zers will expect clear goals, an engaging variety of assignments to tackle and to work for organizations with a go-getting attitude that encourages people to speak up, collaborate and be more proactive about sharing and acting on ideas.

These generations will demand greater access to professional training and development programs, as well as more hands-on opportunities to expand their experience and skill sets.

Going forward, young professionals will seek more mentorship and ongoing feedback in the workplace, and look to you for additional guidance, as the skills in demand tomorrow will look far different than the ones in demand today.

You’ll need to educate these natural-born innovators that teamwork and a winning attitude will be key concepts to embrace as projects become more complex, and a growing number of generations and backgrounds collide in the workplace.

Gen Y and Gen Z will increasingly look to your leadership to provide guidance and ongoing input about what’s going on in the organization, as well as ways that they can personally contribute to the cause and make a difference.

It will be necessary to help these generations master multitasking and time management skills, as professionals will growingly be forced to make more (and more important) decisions faster than ever in tomorrow’s business world.

Hoping to better connect with these generations going forward? It helps to understand a few points. Looking ahead, Gen Y and Gen Z will (1) Want to work for innovative organizations (2) Expect you to more dutifully teach entrepreneurial, critical thinking, leadership and dynamic decision-making skills and (3) Demand that you provide avenues that give them the opportunity to create positive, lasting change. (Not to mention quickly see how their contributions can going about effecting it.)

A few hints and tips for those hoping to work with these younger generations more effectively going forward are as follows:

Remember that millennials and Gen Zers will hail from a wide range of age groups. A Gen Yer could just as easily be a college student as a young parent. When crafting communications and outreach efforts, take care to leverage common themes or points of reference that all can recognize — and don’t assume that a one-size-fits-all approach will always be most effective.

Don’t market or promote: Tell stories others can empathize with. As researchers are increasingly demonstrating, millennials aren’t responding to routine advertisements or generic messages anymore. Instead, they’re looking for causes and efforts that resonate with their values and that they feel they can connect with and support on a personal level.

Keep messaging short and to the point, and grab others’ attention right from the get-go. To hold Gen Y and Gen Z’s interest, it’s best to lead with a strong, one-of-a-kind message — and, where appropriate, use vehicles such as humor or heartwarming tales to quickly differentiate. Highly visual, these generations also respond far better to short animations, videos, infographics, charts and other graphical points of reference than textual elements.

Make a point to stand out at a glance: Gen Y and Gen Zers are used to quickly dismissing the many messages with which they’re bombarded. To avoid falling into this trap, help them quickly connect the dots, and explain what makes you and your organization unique, what pain points or problems you can help them solve, and how they can quickly and simply interact with you to create positive outcomes. Give them points of shared interest and incentive to rally behind.

Clearly, millennials and members of Generation Z look at and interact with the world in far different ways than generations who have come before. But with a few simple shifts in perspective and positioning, it becomes far easier to connect and communicate with them on a meaningful level. Employ the strategies above as you go about crafting your communications efforts, or empowering tomorrow’s leaders to succeed, and you’ll find it far simpler and more cost-effective to drive interest, fuel ongoing engagement and get your message heard. C&IT

Group yoga on standup paddleboards at Hilton Hawaiian Village Waikiki Beach Resort.

Business considerations aside, maintaining a healthy work force is a worthy goal in and of itself. But it so happens that there are significant business benefits to a company wellness initiative, from increasing productivity, to reducing employee health insurance costs, to creating an attractive corporate culture. And while the initiative is usually pursued at company offices (e.g., the corporate gym), there is no reason why it can’t be extended to offsite meetings. That’s where the meeting planner fits into the picture. Helping to integrate wellness activities and nutrition into an event’s busy agenda is among the more recent additions to a planner’s skillset. Meeting owners are often calling for it.

A global health care company provides one example of prioritizing wellness. “Wellness has definitely become a more important part of our sales training meeting than it was in the past,” notes Jodi Bradley, meeting manager, U.S. meeting services, Maritz Travel and contractor providing services to the health care client. “The leaders of the group strongly feel that adding the wellness component to the meeting really strengthens attendees’ ability to learn and concentrate, as well as allowing them to feel really good about themselves, which in turn helps their mind, body and spirit.”

Striving for Success

The natural temptation from a business perspective is to fill the day with sessions, but that approach can ultimately deplete mind, body and spirit. ROI may be better served by allotting some time to revitalization. Accordingly, Rohde & Schwarz, a Munich, Germany-based electronics group, has infused its National Sales Meeting (NASM) with fitness activities in recent years.

“Five to six years ago, we realized that when you have meetings all day long, you lose retention and people aren’t happy. They tend to compensate by overdrinking in the evenings,” observes Scott McKibben of McKibben & Associates Inc., who provides event planning services to Rohde & Schwarz. “I think that HR has increasingly made it clear that productivity is increased and turnover minimized by healthy employees, and that if you can manifest a bit of that at your meetings and events, you will see the benefits.”

“I think that HR has increasingly made it clear that productivity is increased and turnover minimized by healthy employees, and that if you can manifest a bit of that at your meetings and events, you will see the benefits.”
— Scott McKibben

Rohde & Schwarz Director of Human Resources Anne Cowper is also the main project manager for NASM. She describes the company’s wellness and CSR program, “Strive,” as “my labor of love for the last five years.” She relates, “At first there was a fair amount of skepticism, like why would I be doing this, exercising at corporate events? But it’s really taken off.” Gamification has helped drive Strive’s popularity. Via a mobile app, the program awards points for attendees’ participation in wellness activities, both nutritional and fitness oriented, and compiles a leaderboard to engender a little competition. The prizes for the winners, according to Cowper, have become less extravagant as attendees have become more motivated by the health rewards themselves.

Rohde & Schwarz also sees the program as a way to express its corporate culture at the one moment during the year when its sales representatives are gathered together. “Most of our people work remotely, and it’s really hard to communicate and create corporate culture on a regular basis when people are working out of their home offices or they’re always at customer sites,” Cowper explains. “So Strive (at NASM) is a way for us to infuse our employees with our culture, which is very collaborative and employee-centric. It’s a very visual representation of what we believe to be really important. You can only do so much with emails, phone calls and Skype.”

Partnering With Properties

Fortunately, hoteliers are becoming more adept at helping group clients implement wellness initiatives. Two examples are MGM Resorts and Hyatt Hotels Corp.

In 2014, MGM Grand Hotel & Casino partnered with Delos, the pioneer of Wellness Real Estate, to introduce wellness meeting experiences. Stay Well Meetings includes healthful work environment features such as air purification, circadian lighting (which imitates natural light), ergonomic seating, aromatherapy and more.

In addition, the program offers Wellness Moment Programming, which consists of a selection of short mental and physical activities designed to engage the body and mind. Examples include brainteasers, guided meditation, “Digital Detox” (helping attendees to periodically disconnect from technology) and physical activity breaks. According to Michael Dominguez, senior vice president and chief sales officer at MGM Resorts International, MGM Resorts is looking to be able to expand Stay Well Meetings to other properties within the company’s portfolio.

In June, Hyatt partnered with Be Well by Dr. Frank Lipman to support overall guest wellness. Starting with Park Hyatt hotels in New York, Chicago and Washington, DC, the initiative will include healthful refreshments at arrival, wellness-oriented guest room amenities (e.g., yoga mats), additional fitness offerings, expanded healthful menu options and nutritious to-go meals. Guest retreats centered on nutrition, fitness and mindfulness also are being designed.

But a hotel does not need to have a specific wellness program to be a capable partner in assisting a group to fulfill its wellness goals. This past August, Martiz’s health care client successfully partnered with the Hilton Orlando to coordinate wellness activities for the 850 attendees of its six-day sales meeting. “We worked with the (Hilton’s) spa and a local DMC to assist in picking certain classes and setting these activities up for us,” says Bradley. “The hotel was very involved in helping us achieve our goals.”

At the Hilton Hawaiian Village, Honolulu, Hawaii, outdoor fitness activities are a natural fit with the property’s surroundings. “We’re very lucky at the Hilton to have Duke Kahanamoku beach, rated one of the top beaches in the world, as well as our own lagoon right here on property,” notes Mike Murray, CMM, CMP, CASE, senior V.P. and director of events, Waikiki Beach Activities. “Rather than offering a spa day or providing a rental car, I’m seeing an increase of groups taking full advantage of onsite offerings, from sunrise yoga to a mini Iron Man competition. There’s something for everyone.”

Indeed, most hotels and resorts have the resources for fitness activities beyond the hotel gym — something more distinctive and memorable. “At every destination and resort we go to, we try to incorporate whatever local elements we can (into wellness program),” says McKibben. For instance, “We were at Disneyland last year, and we had dance classes in the morning. We actually had choreographers come in before the park opened.”

At the Fairmont Scottsdale Princess, Rohde & Schwarz had available Well & Being, a luxury spa concept featuring fully customized wellness experiences including fitness, nutrition, integrative medicine, mind-body therapies and advanced skincare. Well & Being is currently available at the Fairmont Scottsdale Princess, Four Seasons Resort and Club Dallas at Las Colinas and Red Rock Casino, Resort and Spa. Specific services include sleep programming with a So Sound Acoustic Resonance Room, DIY aromatherapy blending bar with recommendations from an in-house “alchemist,” and customized “spa’arty’s” for groups.

For outdoor fitness, Rohde & Schwarz was able to utilize a recently opened field at the Fairmont Scottsdale Princess, which offers 21 unique outdoor function areas. “It was really cool to see 95 percent participation in our group fitness events, so when we look at resorts now, we look at their physical attributes as it relates to morning fitness activities,” says McKibben. “We worked with the Fairmont team to create our Strive Fitness Fresh Air Festival, which we strategically placed about midway through the meeting.”

Nutritious F&B

The MGM Grand’s Stay Well Meetings also includes menu options approved by nutritionists at Cleveland Clinic Wellness and designated by the clinic’s “Go! Healthy” seal. Such options are increasingly receiving planners’ seals of approval as well.

“We do everything that we can to do away with food that is not heart healthy,” remarks Cecilia Daddio, CMP, senior manager, events and incentives at Richardson, Texas-based Lennox Industries Inc. “You always have those people that like to go to a sales conference, and it’s a mini vacation so they do want that hamburger and beefsteak. We don’t deny that, but more often than not we’re doing the salad, beans, etc. I think hotels are very open to (healthful cuisine), even down to the meeting breaks: No longer is it cookies and donuts; it’s more your protein shakes, protein bars, yogurt, etc.”

Bradley found the culinary team at the Hilton Orlando more than willing to “see our vision come to life,” she says. “All the foods we chose were served in small plates and were fresh and healthy but also tasty. In addition, we had the food cooked to serve so it was guaranteed to be fresh.” For even more personalization, “we had the chef on our broadcast each morning to do a ‘Chef’s Corner,’ where he spoke about the food they were going to get for the day. Attendees really enjoyed that added touch.”

Getting attendees enthused about healthful cuisine isn’t always easy. Rohde & Schwarz’s sales meeting at the Fairmont Scottsdale Princess took a humorous approach to that end. McKibben designed what was called a “Fear Factor Buffet,” which featured “intimidating” health items such as kale salad, quinoa and eggplant. Attendees could gain Strive points by eating from the buffet. The theme was “overcoming your fear of healthy food,” Cowper explains. “Scott had these billboards making foods to look like scary monsters.” McKibben adds, “We work with resorts and their chefs in developing these special buffets, and they really get excited and challenged.”

Fitness

For most attendees, getting in a workout around meetings at the hotel is nothing new, whether that’s a gym session, a swim or morning jog. But today’s emphasis on wellness has led to a variety of far less mundane fitness activities and, increasingly, group fitness events such as 5K and 10K races. These have the added benefit of promoting teambuilding. “Teambuilding is always part of it,” says Daddio. For example, “when we partner with a DMC, we’ll do beach Olympics, tag football, etc. It’s becoming expected from our guests.”

When offering a variety of fitness options, it’s important to cater to the spectrum of fitness levels and interests. “Some activities we offer, including surfing in the ocean and SUP (standup paddleboard) yoga in the lagoon, you need athletic ability for,” Murray notes. “Our mini Iron Man competition can be customized, but normally consists of a run, bike and swim, which should only be done by those who are able, to ensure safety. For those with less athletic ability or who just simply don’t prefer competition, there are offerings like sand sculpting, aqua-bikes, horseshoes, Hawaiian bowling, hula lessons and much more.”

Murray draws special attention to canoeing, “a big historic sport in Hawaii” and an example of representing the local culture through a wellness activity. “Hilton Hawaiian Village offers canoe races for groups of up to 30 people. They are led by licensed canoe captains (there are only eight licensed canoe captains on the whole island of Oahu) and it builds camaraderie and trust. The groups meet on Duke Kahanamoku Beach where the races start with storytelling about Duke and his achievements (Kahanamoku was a Hawaiian competition swimmer who popularized surfing as a sport). After going over basic techniques and a 10-minute lesson in the water, groups split into teams and race,” Murray explains.

The Strive Fresh Air Fitness Festival also includes teambuilding events, such as a “tough mudder” featuring eight to 10 teams navigating obstacles that mimic the game show “Wipeout.” Rohde & Schwarz also offers events that are tied to the meeting destination. At next year’s NASM at the Hyatt Regency San Antonio Riverwalk, for example, “I think in lieu of the Fitness Festival we’ll probably do another 5K/10K along the Riverwalk and may end up somewhere along Riverwalk to have a fitness expo,” says Cowper.

Whether or not the meeting schedule can accommodate an elaborate group fitness event, the time between breakouts shouldn’t be overlooked as an opportunity for exercise. “We put a fun spin on it,” says Daddio. “When they’re rotating in a breakout session, we have them do jumping jacks down the hall to get their heart rate up, as they’ve been sitting for 45 minutes. We’ve also done skateboarding, where someone has to hold on to the other and run them down to the break area. It’s like back in grade school when you have recess; it re-stimulates your mind. Part of their curriculum is that if they want to get to that mid-morning break and have that coffee, this is what they have to do to get there. And we’ll have something right there at the hotel for them to do.”

Weather permitting, Lennox also is holding more outdoor meetings, she adds, where the fresh air and natural light contribute to a lucid mindset. Indeed, there’s no reason that a casual brainstorming session among a small group can’t be held while walking hotel grounds, for example. And at cocktail receptions, the company is incorporating fitness in creative ways. Participants will be tasked with finding their “partner” who has a matching symbol on his or her name badge, and the symbol might indicate they have to do 10 jumping jacks. Here, fitness is given a surprising role as an icebreaker.

Balancing Priorities

Several components of wellness do not consume time from a meeting’s schedule, such as healthful F&B, utilizing facilities with wellness features (e.g., air purification), and the brief fitness activities reserved for breaks.

More elaborate group fitness programs, however, do require a significant time commitment, and oftentimes added expense. But it’s these kinds of events that really showcase a company’s commitment to employee wellness, and ultimately build the most enthusiasm about fitness.

Allotting time for these programs, and how much time exactly, is thus something worthy of consideration for any major offsite meeting. “Obviously our focus is the training aspect, so we make sure there’s the time available for classes, and then we build the Strive activities around it,” says Cowper. She estimates that about 70 percent of the time at NASM is devoted to meetings, 15 percent to Strive (including the Fitness Festival and Strive Anytime Fitness, which includes all individual fitness activities), and 15 percent to meal functions and networking. This “balancing act” is not unlike time management for everyday life, when wellness is among the priorities. C&IT

The Gelmer funicular, the steepest cable railroad in the world with its 106 percent gradient, takes guests up to the picturesque Lake Gelmer in the Bernese Oberland region in Switzerland. Credit: Switzerland Convention & Incentive Bureau

International meetings are increasingly important as global companies are on the rise, whether that’s U.S. corporations with outposts and employees in multiple countries or those with clients across the globe. And as the ante is continually upped for incentive programs, planners frequently turn to foreign destinations to delivery extraordinary experiences.

Whatever the goal, when planning meetings beyond U.S. borders, it’s best to get advice from tourism offices, convention bureaus and DMCs in order to ensure meeting success. Here’s what some of the top international experts have to say.

EUROPE

Switzerland

Caroline Pidroni, director of sales and marketing for the Switzerland Convention & Incentive Bureau, calls her country “Europe in a nutshell.” Despite its small size, it offers meeting planners “many options, including the opportunity to experience the language, traditions and gastronomy of four distinct cultures in one place.”

Pidroni wants planners to know that Switzerland is a year-round destination with four distinct seasons and something for everyone, and that it’s not as expensive as many think.

“Backed by a rock-solid economy and the Swiss franc (CHF) instead of the euro, travel and entertainment is competitively priced,” she says. “For starters, breakfast nationwide and public transportation in select cities are included in the room rate. Hard to beat, too, is the VAT, or Value Added Tax. At just 3.8 percent on accommodation and breakfast, 8 percent for most goods and services and 2.5 percent on sports and cultural events, Swiss VAT rates are the lowest in Europe. Plus, qualifying foreign companies are eligible for VAT refunds.”

Pidroni adds, “Planners are often unaware that published rates in Switzerland include all service charges, taxes, tips and gratuities, and Swiss hotels don’t charge resort fees. Thus, when they’re comparing Switzerland to other countries, they’re not really comparing ‘apples with apples.’ ”

The Switzerland Convention & Incentive Bureau, says Pidroni, is a one-stop shop for planners. “We assist with RFPs, including researching destinations and venues, arranging site inspections and helping with presentations. Educating prospective clients on all available MICE options is another major focus. From connecting planners with local CVBs, DMCs, hotels, transportation companies and other suppliers to providing maps, brochures, giveaway ideas and access to our photo and video gallery, we’re here to make your life easier — all free of charge.”

Switzerland’s reputation and national pride also make it a stellar meetings destination. “ ’Reliability’ is a byword for neutral, stable Switzerland, where adherence to order and efficiency is as accurate as the country’s legendary timepieces,” Pidroni says. “Swiss workers pride themselves on striving for perfection. The result for visiting groups is a meetings experience that’s worry-free.”

Switzerland, Pidroni adds, “may be small, but mixing precise predictability with delightful surprises, this ancient land in the heart of Europe offers a powerful package for groups.”

Scotland

Current exchange rates favor U.S. companies meeting in Scotland. Richard Knight, director of marketing, the Americas for VisitScotland Business Events, says, “The North American market is currently enjoying a very attractive exchange rate, which can be combined with the possibility of VAT reclaim.”

In addition, Knight says, “Scotland offers meeting planners a backdrop of beauty and history that will inspire delegates, as well as deep-seated history in many of the world’s biggest industries such as pharmaceuticals, finance and life sciences.” Add ease of moving around the country, friendly, hospitable service and English as the first language, and “Scotland is an ideal meeting place.”

Knight also emphasizes accessibility. “Direct flights from New York and Toronto are available at only six hours and 45 minutes, and other direct flights operate regularly from Chicago, Philadelphia and Montreal.” Knight also points out that traveling to Scotland is very convenient as there are “seven direct flights daily from the U.S. servicing Edinburgh and Glasgow.”

Another bonus: There are no visa requirements for U.S. citizens.

And contracts should be easy. “The United States accounts for the largest international market for Scotland,” Knight says. “Contracts and engagement with facilities, venues, hotels and service providers throughout Scotland are easy, with many of the larger organizations even accepting payment and contracting in U.S. dollars. Any issues or challenges that arise are easily alleviated with the assistance of the Business Events team.”

The biggest challenge for U.S. planners is choosing among the many options. The most effective way to overcome this, Knight says, is to work with the VisitScotland Business Events team, which has personnel based all over Scotland, in Toronto and in London, servicing North and South American markets. “This free, impartial service is available to all planners and makes delivering programs and proposing ideas to clients easy.”

As for incentives, Knight says, “Scotland punches way above its weight in this arena due to its status as the ‘Home of Golf’ with more than 600 golf courses, more than 125 whisky distilleries, 800-plus castles and the many unique and historic venues located across the country that are perfect for any event.”

And because of Scotland’s compact size, time isn’t wasted traveling between events and destinations.

Scotland delivers in terms of meeting facilities, too. “Scotland offers state-of-the-art conference centres, including the EICC, SECC and Hydro Arena, as well as facilities in Aberdeen, which are at this very moment being expanded and redeveloped with a brand new conferencing and hotel complex. There are also numerous unique venues and world-class hotels capable of hosting both large and small meetings. The world-famous Gleneagles Hotel, for instance, has a 2,000-capacity conference centre.”

Whether the meeting is big or small, whether the questions relate to security and safety or whisky and golf, Knight says the VisitScotland Business Events team can help.

CENTRAL AMERICA

Mexico

Our neighbor to the south offers much for groups, including multiple flights and relatively short flight times. Amanda Nemeth, president of Meeting Incentive Experts (MIE), a destination management company, works closely with the Mexico Tourism Board and points out that, “Mexico is easily accessible, offers a large variety of hotels and excursions for every budget, and has the warmth and hospitality-driven attitude of the Mexican people.”

Mexico Tourism, MIE and other organizations provide extensive help for planners. “We educate planners about the benefits selecting Mexico can bring to their companies and how to increase their ROI,” Nemeth says. “With an expert DMC, they have a valued partner that unites international and regional resources to help them accomplish their meeting goals. Our local Mexican knowledge and preferred partnerships provide for innovative experiences that are custom-made while utilizing economics that make sense.”

For example, Nemeth says, “There is normally no fee for meeting space contracted on-property, and there is a tax exemption for meetings equal to 16 percent.” Additionally, pricing is typically based on the U.S. dollar so there’s no currency confusion.

Planners should understand how the 16 percent meetings exemption has to be quantified, how attendees have to be registered and documented, what kind of payment method is allowed and how the meeting must be set up (almost everything must be done through the meeting hotel).

Beyond economics, Nemeth points to Mexico’s rich, diverse cultural experiences as a draw for attendees. She notes that one misconception about Mexico is that it’s not upscale enough. While there are hotels for every budget, among them are upscale properties from well-known luxury brands.

As planners consider Mexico, Nemeth offers the following: “Clarify fact from fiction; use resources such as the local destination CVBs and the Mexico Tourism Board. Consider the value of all-inclusive properties compared to EP (European Plan) properties. And remember that some U.S. laws and regulations don’t apply in Mexico.”

Overall, Nemeth says, there are many reasons to bring a meeting to Mexico, including “the 0 percent VAT tax exemption, accessibility, destination variety and unsurpassed hospitality.”

ASIA & THE PACIFIC

Singapore

Singapore is now even easier to reach. Singapore Airlines has expanded its U.S. operations, and in June United Airlines launched direct flights between San Francisco and Singapore.

But planners will find that it’s their time after arrival in the city that makes the real difference.

Singapore Exhibition & Convention Bureau (SECB) wants planners to know that it’s a one-stop resource. “Our key value to meeting planners is our ability to connect them to local stakeholders most relevant to them, their groups and their businesses, including government agencies, private-sector stakeholders and key contacts in their respective industries, allowing them to develop and grow their business interests in Singapore with ease. We are able to support meeting planners through financial and non-financial means. Our ‘whole of government’ approach allows the SECB to work closely with our fellow government agencies, making Singapore compact not just in size but also in how we seamlessly function as a transparent, well-oiled organization to support meetings and businesses.“

To that end, SECB can open doors and connect planners with like-minded communities, partners and sources of support; help planners understand and navigate Singapore’s business landscape; and help facilitate behind-the-scenes tours in various industries and sectors that are not typically accessible to the public.

Moreover, SECB notes, “Doing business in Singapore is completely transparent; processes and regulations are transparent, there are no hidden costs.”

Singapore also continually improves its infrastructure to support meetings and business, including providing enhanced connectivity, an extensive array of convention and exhibition facilities and diverse accommodations, notes SEBC, adding, “Singapore values efficiency, convenience and cleanliness” — positive elements for any meeting.

As for facilities, “Suntec Singapore Convention & Exhibition Centre, Marina Bay Sands Expo & Convention Centre and the Singapore Expo with its MAX Atria wing are all suitable for large-scale international exhibitions and conferences,” according to SEBC. “Together with Raffles City Convention Centre and Resorts World Sentosa among others, these venues offer world-class conference and meeting facilities, as well as nearby accommodations and dining.”

New Zealand

New Zealand is safe, politically stable, and English is the primary language. No visa is required, and, no, it doesn’t take two days to get there. The Business Events arm of Tourism New Zealand notes that from the U.S. West Coast, New Zealand is a 12-hour, nonstop flight.

Once a group arrives, it’s easy to get around New Zealand. For those who want to experience both the North and South islands, it’s a quick 11/2-hour flight between the two.

New Zealand is a premier incentive destination, and Tourism New Zealand offers solid assistance to incentive planners, including customized presentations and DVDs so planners can sell their vision of the trip, and itinerary suggestions tailored to groups of all sizes and tastes. “Our work to promote New Zealand as an incentive destination is delivering results, accounting for more than $94 million (NZD) in estimated converted value last year,” says Bjoern Spreitzer, Tourism New Zealand general manager Americas and Europe.

One of the country’s greatest assets and biggest enticement for incentive groups is the stunning scenery (think “Lord of the Rings” films) and the array of adventures the country offers. From globally celebrated treks to plunging off the top of Auckland’s Sky Tower to kayaking pristine waters and tasting acclaimed wine, there’s no end of possibilities.

New Zealand offers a Conference Assistance Programme to help planners in every way. “The programme can evaluate the financial feasibility of your conference and assist with customized bid documents and strategic marketing support to enhance your bid’s chances,” Tourism New Zealand says.

Also available to planners is Tourism New Zealand’s comprehensive image library, booklets and fact sheets, recommendations for local DMCs and tailored pre- and post-conference suggestions.

New Zealand currently offers excellent events infrastructure, but when the New Zealand International Convention Centre opens in 2019 in Auckland, it will up the ante, accommodating up to 4,000 for events and up to 3,150 for conferences.

For planners considering New Zealand, the tourism bureau recommends sourcing well in advance of program dates to ensure availability and working with a local DMC — in part to offset problems created by the time difference. “Working with a New Zealand-based DMC means your program is being worked on while you sleep, in addition to the benefit of tapping into the creativity of local providers.”

Australia

It’s no secret that Australia offers remarkable landscapes and marine environments, multicultural experiences, stellar teambuilding opportunities and sophisticated, engaging cities.

It’s also a dream business destination for North American groups, thanks in part to Business Events Australia. Penny Lion, executive general manager events, Tourism Australia, notes that Business Events Australia has a dedicated team in North America — Paul Griffin based in Boston and Chris Ingram in Los Angeles — that can provide planners with a wealth of information and support as well as expert guidance. “In addition to this,” she says, “we have a range of tools available, including images, videos and inspirational fact sheets with sample programs that really help bring the destination to life when pitching to clients. We also host qualified buyers on educational trips to Australia, so that North American planners can truly experience our incredible product for themselves.”

Planners will find that organizing a conference in Australia is not markedly different than in the United States, even negotiating contracts. “Our business events industry, including hotels, will often take a tailored approach, recognizing that there’s no such thing as one-size-fits-all,” Lion says. “They will discuss your requirements with you to ensure your needs are met.” It’s also worth noting, she adds, “We don’t charge or expect gratuity, and the price you’re provided includes all costs, so no ‘plus-plus.’ ”

Anyone who has been to Australia is keenly aware of the country’s powerful effect on visitors, just one asset that makes it so compelling. But for those who have not visited, Lion says there are a couple of challenges. “Our friendly people, spectacular landscapes and fresh, innovative food and wine combine to provide a truly inspirational and unique experience, and that’s often a challenge to get across if people have never been to Australia. To help planners, we’ve created a series of short films that show Australia’s effect on actual planners and their thoughts on our experiences.” Planners can visit the video gallery on www.australia.com/businessevents to access all the films, which also can be provided as download links for presentations.

Australia may seem far away, but in fact, Lion points out, the approximate 15-hour flight from Los Angeles is shorter than flights to many other popular meeting destinations in the Middle East and Asia. “It’s simply a meal, two movies and a sleep away,” she says.

It’s not an overstatement to say that Australia has it all, whether for business conferences or incentive awards. “While we are fun-loving by nature, we take business seriously, and the aim is always to help convert business to the satisfaction of both parties,” Lion says. “Our business-events industry is very easy to work with, efficient, and we have a wealth of experience in hosting events of every size and scale. Add to this Australia’s world-class food and wine offering and pristine environments, and you have a winning combination for a business event.”

THE MIDDLE EAST

Dubai

Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) has a lofty goal: to make Dubai the leading destination for global travel, business and events by 2020. Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing, which is part of Dubai Tourism, makes clear why that goal is within range. “Global connectivity, great hospitality, state-of-the-art facilities and world-class infrastructure are historically the reasons behind the city’s robust business events offering. Today, Dubai is adding to these traditional values by focusing on establishing Dubai as a knowledge hub, which will be another key driver to attract more business events.”

Part of United Arab Emirates (UAE), Dubai faces some challenges in marketing to U.S. planners related to cost, safety and gender equality. Easily answered is the luxury label. High-end experiences are available here, Kazim says, however, the city’s offerings also include “a substantial variety of value-for-money alternatives. Everything from transport options and a growing mid-market hotel sector, to restaurants and meeting venues offer pricing that’s competitive with other global hubs in Europe, Asia and North America.”

As for safety, Kazim says, “The UAE is one of the safest places in the world, ranked in the top three for safety and security according to the World Economic Forum Travel and Tourism Competitive Report 2015, with a stable government and a department of Dubai Police dedicated solely to visitors. As one of the most cosmopolitan and multicultural cities in the world, Dubai is an advocate for peace and stability, and proud to be a connecting hub between East and West.”

U.S. planners may not know how much work UAE has done related to gender equality. “The constitution of the UAE stipulates that all people are equal before the law, and the government enacts both federal and local laws to preserve and maintain the dignity of every individual,” Kazim says. He notes that Dubai’s ruler, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, “has been at the forefront of encouraging women’s empowerment in the UAE. Last year, during the Government Summit in Dubai, he announced the formation of the Emirates Council for Gender Balance, conceived to boost the UAE’s efforts in helping bolster women’s roles as the nation continues to evolve.”

Kazim says there are no marked differences in planning a meeting in Dubai versus other destinations. He recommends connecting with the Dubai Business Events team, which has staff in the United States and which attends many industry events, including IMEX America, where planners can make contact.

Few countries match Dubai for incentive enticements. “Visitors can discover the essence of the region through desert safaris, falconry and camel riding,” Kazim says, “while adrenaline junkies can choose from options that include sky-diving over Palm Jumeirah, diving with sharks at Dubai Aquarium and skiing at one of the world’s largest indoor snow parks.”

The attractions keep coming. In August, the city launched IMG Worlds of Adventure, the world’s largest indoor themed destination, and Dubai Opera opened its doors. “Later this year,” Kazim adds, “Dubai Parks & Resorts, built by dXb Entertainments, will open its three linked theme parks — Motiongate Dubai, bringing to life the biggest characters in Hollywood; Bollywood Parks Dubai; and Legoland Dubai, which also includes a Lego-themed waterpark.”

Luxury, value, adventure, fantasy, a strategic location between Asia and Africa — Dubai delivers what planners need. “Dubai,” Kazim says, “is a unique and dynamic business-event destination that prides itself on legacy creation and its inherent spirit of possibility.” C&IT

Hotel contracts and contentious clauses. They are the classic sticky wicket. If you manage them right, your event can thrive. If not, there’s a price to pay. And for many meeting planners, negotiating hotel contracts can be one of their biggest headaches. The good news? Using the right mix of your own creative negotiating power and understanding the nuances of specific contract clauses can help you manage hotel contracts well and improve your event’s success ratio.

Key Issues

The hotel industry is in a constant state of flux. The pendulum swings back and forth from a buyer’s market to a strong seller’s market, which is where we are today. When it comes to negotiating hotel contracts, the strategic planner must be aware of trends and take advantage of education and data offered by industry associations, hotel partners and trusted advisors.

According to Sue Heley, CMP, CMM, national account manager with Experient, a Maritz Global Events Company, the most important sections of a hotel contract are those that mitigate the organization’s financial risk — the cancellation, indemnification and attrition clauses.

“A clause should also be included to protect the group in the event that the host hotel or facility cancels on them and they are forced to find a new location.”
— Caytie Pohlen-LaClare

“Watch out for liquidated damages charges that do not take into account the actual occupancy of the hotel and the actual number of rooms available for sale on the dates of the program,” Heley says. “Be sure there is a detailed force majeure clause.”

Force majeure allows either/both parties to cancel due to acts of God, war, terrorism, health risks, strikes, etc. that make it impractical or impossible to hold the event. This is especially important now with current world events and weather-related super storms.

As Caytie Pohlen-LaClare, owner and president of Minnetonka, Minnesota-based The LaClare Group, a third-party professional meeting planning company, explains, many event planners are focused on the cost savings including reduced room rates, lower food and beverage costs, concessions, etc.

“Those are important, but the often overlooked issues of attrition, cancellation, and force majeure are just as important and can have a greater impact on the finances of the group,” she says.

As Pohlen-LaClare explains, attrition is important for event planners who are using sleeping rooms in addition to meeting space. Attrition is meant to protect the hotel if a group does not use as many hotel rooms as they initially anticipated.

“I suggest including verbiage that takes into account the hotel’s actual occupancy rate on the nights in question. For example, if the hotel was 80 percent full, then the group should only be paying for the amount of rooms that are equal to the remaining 20 percent of unsold rooms,” Pohlen-LaClare says. “Or, if the hotel is 100 percent full on any given night, then the group should not be liable for any attrition penalty on those nights because there were no empty rooms.

“Also, you can save thousands of dollars in potential attrition fees by dropping rooms before the deadline. That said, remember that if you release too many rooms, but later find that you need rooms again, you may not get them back — or they will be at a much higher rate. So consider holding onto some ‘dummy rooms’ for attendees who register later,” she says.

According to Pohlen-LaClare, cancellation policies should match the attrition policy. If a group is allowed 15 percent attrition with no penalties, then the cancellation policy should be based on 85 percent of the anticipated revenue, not 100 percent.

“A clause should also be included to protect the group in the event that the host hotel or facility cancels on them and they are forced to find a new location for their event,” Pohlen-LaClare says. “We have a client that is based in Europe and travels to the U.S. for meetings.  Back in 2010, the Icelandic volcano ash cloud disrupted travel between Europe and the United States for several days, and our client’s employees were unable to travel.  This was a great example of how incidents that happen in other parts of the world can affect our meetings and events here — thousands of miles away.”

Beware of Hidden Costs

Janeen Zook, chief executive officer and president of Las Vegas-based Trattativa Meeting & Event Solutions International, believes it’s always the hidden costs that are a concern.

“The pricing that is contained within a contract does not always spell out the additional costs that may apply,” Zook says. “Meeting and event planners must ask very detailed, specific and intentional questions during the sales and contract phase in order to identify and uncover costs that are not provided prior to contracting.”

Zook advises planners to obtain full information on the offer, contractual terms and conditions, and the property. And it also is important to anticipate the customer’s needs and to provide solutions even if the customer does not know it is yet a need or a concern.

“If a meeting and event planner does not have a relationship established equally with their customer and the property, there will be aspects of the program that are not identified early enough in the process to make sure the contract is comprehensive,” Zook says. “Attrition, minimums and cancellations are all areas that must be understood and in alignment with the customer’s ability to sign. Additionally, questioning any clause or terminology that is either ambiguous, one-sided or unclear is essential.”

Negotiating Know-How

Most contracts are issued by the venue (hotel, event space) and therefore are skewed to their advantage. Experts agree that the best thing planners can do is get educated on the key issues and be willing to stand up for their group or company and negotiate what is in their best interest. Almost everything in a contract is negotiable.

“It is imperative for meeting and event planners to have experience in contracts, and, if they do not, to seek and take courses accordingly,” Zook says. “Otherwise, it can be very detrimental to their customer in the long run.”

So how can meeting planners best negotiate hotel contracts while protecting their interests? The most successful negotiations begin with the understanding that both parties are working toward each other’s mutual success and shared financial risk.

“Meeting planners can protect their interests by providing open and transparent communication as they detail the ‘must-haves’ and the ‘would-be-nice-to-haves’ for the event,” Heley says. “Hotel sales managers appreciate the prioritization, can work through the list, and often spend quite a bit of time selling the program to the hotel’s revenue management team.”

Pohlen-LaClare stresses that planners should make sure that a hotel lists the proposed meeting space in the contract.

“It is important to verify the correct dates, times and amount of space being held based on the meeting/event agenda,” Pohlen-LaClare says. “We include a clause that says meeting space cannot be moved or changed without our written approval.”

Pohlen-LaClare says the best advice she ever heard was to approach contract negotiation from a place of, “how can we work together to create a contract that is mutually beneficial?” There are ways for both the venue and the event planner to win, and it means both parties will have to compromise on some items.

“Before starting the negotiating process, take time to think about what the biggest issues are for you or your company, and which issues are less important,” Pohlen-LaClare says. “I encourage my team to share with the hotel our list of the key issues and clauses before the first draft of the contract is written. We also keep a ‘contract checklist’ that each of our planners refers to when they begin the contract negotiating process.”

Heley says it’s also vital to remain open-minded and flexible.  “Once, while in the final stages of negotiating a contract, the hotel asked if there was any chance we would consider adjusting the arrival pattern by one day,” Heley says. “If we could, they would be able to accept another large piece of business immediately following our program. After examining the hotel’s offer of a reduced room rate and other important concessions, it was decided that we could reap the benefits without any challenge to our conference or organization.”

Bryan Eaves, CMP, CPSM, a partner at the Knoxville, Tennessee-based consulting firm Sourcing Business Solutions, helps companies negotiate contracts.  According to Eaves, when it comes to hotel contracts for large events, it is important to balance the risks, minimize your costs and ensure a productive meeting for your client. To allocate risks fairly between the parties, the following three items should be negotiated, says Eaves.

Cancellation penalties. These clauses can create unnecessary high risks for your company. Penalty clauses should be fair to both parties by including verbiage that if the hotel rebooks the property during the time frame previously held for your company, no penalties should exist. “A tiered approach that increases the penalty amount for cancellation the closer that you get to the planned event date is fair to both the hotel and the buying company,” Eaves says.

Headcount estimates for food and beverage. Contract language should allow the planner to lower headcount estimates for food and lower your financial risk. “For example, if you estimate your headcount for dinner at 500 people but notify the hotel at least 48 hours in advance that your headcount will actually be 350, contract language should allow you to modify headcount for F&B with only small fees, if any,” Eaves says. “Language allowing the hotel to charge you for 500 people in this example without flexibility to modify the headcount estimate should be avoided.”

Estimating the headcount for paid room nights. Many hotel contracts will specify how many paid hotel nights will be needed per day, which is needed so that the hotel can block rooms for the event. Because the contract is created so many months in advance of the actual event, trying to estimate the precise number of hotel nights needed for each night is often difficult.

Eaves says a better way to minimize risk is by estimating total spending for the event. “Your contract language could have the rate per night and number of rooms to block per night, but instead of penalties being based upon these numbers, your contract language could be based upon total spending,” Eaves says. For example, language could indicate the number of rooms estimated that are needed each night and the room rate but no hotel penalties would be incurred as long as your company spends at least $500,000 in F&B and room rate combined over the entire event time period (not per day).  If you spend slightly less than the $500,000 estimate, the hotel will generally not charge the difference if you agree to plan your next big event there.

In the End

Often, the most challenging contract negotiations result in the most successful programs, and the human relationships that develop during the process continue long after the last attendee departs for home.

“Do your homework,” Pohlen-LaClare says. “Learn as much as you can about contracts and negotiating through articles, webinars, seminars, etc. You make yourself valuable when you bring your knowledge and skills to your company, your clients and your vendor partners.”

And always seek to understand and ask as many questions as is required to fully grasp what is being offered and contracted.  When in doubt, double fact check.

“Haste makes waste and not anticipating the outcome of any given decision or offer can cause unraveling of a deal or put your customers at risk,” Zook says. “Meeting and event planners need to be detailed, experienced and willing to learn every day.” C&IT

For almost as long as there have been meetings, the question of what return on their investments companies actually achieved has hung over executives and meeting planners like a stormy sky that threatens rain.

And since the discipline of strategic meetings management began to loom over the meeting industry a decade ago, those questions often have threatened severe thunderstorms, especially over the careers of planners who are under steadily increasing pressure to demonstrate the business success of their events.

To really understand the issue, says Michael Dominguez, chief sales officer at MGM Resorts International in Las Vegas, one must understand its context. In the wake of the recession circa 2008–2010, measuring the success of meetings with metrics such as ROI and ROE helped reinforce the notion that face-to-face meetings are critical to all industries and all companies. “And that’s one of the things we learned with the Meetings Mean Business coalition,” says Dominguez, who has played a key role in that initiative since its inception. “And the message that face-to-face meetings remain critical to business is another reason why success metrics are so important.”

“ROE is more accessible to more people by definition, especially people who are not research specialists. They can be more comfortable with it.”
— Ira Kerns

Michael Massari, senior vice president at Las Vegas-based Caesars Entertainment, and like Dominguez a driving force in the success of Meetings Mean Business, notes that ROI and ROE “are on the radar of almost all our customers now. One of the really nice benefits of a terrible situation like the recession and turndown in the meeting industry a few years ago is that meeting sponsors and planners — and even top executives — have become thoughtful and measured in the way they think about why they have meetings, what they spend, who attends and what the benefits to the company are of those meetings. And that kind of thinking is what ROI and ROE are all about.”

Return on Objective (ROO)

Although ROI and ROE get more attention, as a practical matter, the concept of return on objective (ROO), is actually the easiest to grasp and implement. It also addresses directly the most foundational element of any meeting, particularly in the era of strategic meetings management — the purpose of the meeting.

“For me, ROO is the real starting point in trying to assess the return, in a broader sense, you are getting from your meetings and events,” Dominguez says. “And the reason I say ROO should be the starting point is that it goes directly to the reason the meeting is being held. What’s the goal of the meeting? What is going to be accomplished as a result of the meeting? Why are people attending and what will they get out of it? And it makes sense to use those questions as the foundation for everything else.”

Ira Kerns, founder and managing director of MeetingMetrics in New York City, explains that another aspect of the appeal of ROO to management executives is that it is a concept that has existed in business for decades.

“ROO is a specific sort of metric that many management consultants have been using in business for many years,” Kerns says. “And there is nothing particularly new or different about the way it’s used in the meeting industry. The only thing it has to do is properly follow the disciplines of how you write an objective and measure the result.”

Objectives can be defined and quantified from a number of perspectives, such as educational, conceptual, motivational or behavioral. “And all of those kinds of elements can end up being placed into a specific kind of objective that relates to the meeting,” Kerns explains. “But you have to do some work to properly define an objective. “

In fact, for ROO to be a truly measurable and reliable metric, Kerns says, precise and measurable objectives must be defined and written for every desired outcome of a meeting, well in advance of the event, and then approved by the meeting owner and key stakeholders. Then, meeting content, an agenda and activities are designed to accomplish the specific objectives.”

Unfortunately, Kerns says, only a minority of companies and meeting planners satisfy those requirements. Why so few?

“Because when you’re talking about ROO, you’re talking about a very precise, almost pedagogical way of defining your objectives,” he says. “And unfortunately, that kind of expertise and discipline is not something very many meeting planners realize and understand.”

A related and important reality, he says, is that historically, very few meetings actually had a genuine objective. “It was just a matter of, ‘We’re going to Chicago again this year for our big annual meeting.’” But, he says, in the era of SMM, precise objectives are more mandatory than ever before. And more planners needs to master the skills and disciplines required to meet the increasingly rigorous demands of SMM for a clear and achievable business objective for every meeting.

Return on Investment (ROI)

Although “ROI” is the meeting metric most tossed around by a company’s executives and meeting planners, Kerns notes, it carries with it a basic challenge that immediately presents an obstacle for most companies — and especially its meeting planners.

“In order to have a financial measure, first you have something to measure — and something that can be measured,” he says. “So when it comes to ROI and meetings, usually you don’t have the ability to measure something, like sales, until one or three or six months after an event, because it’s only after the event that people start to perform in order to achieve the financial goals and objectives. Good examples of that would be a sales meeting or a meeting designed to launch a new product. You can’t start measuring ROI until after the meeting is over and people start to sell. That’s when the clock starts running. And in many cases, it might take as long as six months, or even longer, before you have results that are measurable financially.”

And faced with such an obvious reality, in the case of ROI even a smaller minority of companies rightly and accurately measure it. “You’re talking about very few companies,” Kerns says, “even though all of them talk about ROI from their meetings.”

The good news is that any company that aspires to a more scientific and detailed understanding of the bottom line financial returns from its meetings can satisfy that aspiration. The tools and methodology are well-established. The practical issue, Kerns says, is doing it right — and with a real commitment.

“It’s a very demanding process to complete correctly,” he says. “And people in the meeting industry — planners, primarily — are just not trained in the disciplines you have to be good at to do it right.”

In order to do it right, at a minimum, a three- to five-day training workshop from The ROI Institute, with whom Kerns often collaborates on projects, is required. “Then, after you get the training, you have to get everyone to agree — your management and all of your stakeholders — to participate in a real ROI study, Kerns says. “And for most companies, that is not easy to do. Most companies just move on from this month’s meeting to next month’s meeting.”

Talking the Talk, Not Walking the Walk

The expert observations Kerns make raise an obvious question. Why do so many meeting planners talk about ROI, but so few actually do it at even the minimum standard required for credibility and accuracy?

“Number one, ROI is a big buzzword,” Kerns says. “Very few people actually know what they’re talking about, but they say, ‘Oh, we should measure the ROI of our meetings.’ But most of them don’t even understand what ROI analysis actually is or what it requires. And when they do understand it, they realize that doing it right is a very rigorous process that is complex. It demands a commitment and resources. And because of all that, it’s a daunting task even if you do want to do it right. But if you do it right, it’s a science. It works. But there are no shortcuts. There’s no easy or simple way to do it.”

What most companies who profess their commitment to determining the ROI from their meeting are actually doing, Kerns says, is just practicing corporate cheerleading that is ultimately fairly meaningless. “For example, the company will have their big sales meeting and the salespeople will come away saying, ‘Wow, we really hit it out of the park with that meeting,’ ” he says. “And everybody feels good about the meeting. So they think they got a good ROI from the meeting. Well, they can’t say that, because they haven’t actually proven that. It’s just a rah-rah kind of thing. And that’s the typical way that companies and meeting planners think of ROI.”

Dominguez takes a slightly different, and certainly more realistic view. He agrees with Kerns that there is now a genuinely scientific basis for measuring ROI for meetings. But he is not convinced that the findings can be as detailed and granular as Kerns and The ROI Institute suggest. “The financial success of meetings can be quantified,” Dominguez says. “But I don’t think the process is so precise that you could ever say, ‘We spent X dollars on the meeting and we got Y dollars back as a result of it.’ I think a much better methodology, in terms of calculating the ROI, is first defining what the specific objectives of the meeting were and then measuring how well those objectives were met.”

For example, he says, if the objective was to increase sales in the third quarter by 25 percent and sales went up 28 percent, it can be stated clearly that the meeting was a success and that it delivered in terms of genuine ROI.

“And that’s also why I think ROO is actually a more reliable metric than traditional ROI,” he says, partly because ROI is very hard, if not impossible, to calculate.”

Massari agrees with Dominguez that an assessment of meeting ROI, by definition, is more subjective than a mathematical calculation. “To me and the meeting customers I talk to,” he says, “the real issues involved with ROI are questions. What’s the benefit on the backend of the teamwork that was built at the meeting? What’s the benefit of the relationships that were built at the meeting? What is the business value of the education or sales tools that were presented at the meeting? Those are the typical kinds of things most companies look at when they talk about ROI or ROE.”

He does acknowledge that the companies that try to set a higher standard do try to get a more scientific measurement of real bottom-line business impact. But in reality, most companies are much more subjective in their assessments. And not all companies or industries define ROI or ROE the same way.

Return on Event (ROE)

Of the three R’s of meeting metrics, ROE is much more commonly used than ROI or ROO, Kerns says.

Why? “It’s a much less formal process than ROI or ROO,” he says. “So it’s more accessible to more people by definition, especially people who are not research specialists. For them, ROE is just something they can be more comfortable with.”

The purpose of ROE if it is done properly, Kerns explains, “is to surface and define the needs of your meeting attendees and meeting owners. Then it can be determined how effectively the meeting met those needs. You can determine exactly how successful the meeting was.”

As an example, Kerns says, imagine a meeting that has eight general sessions and 24 breakouts on specific topics. And there are social events, such as receptions and banquets.

“In an ROE study,” Kerns says, “you’d want to ask two or three questions about each one of those components, including questions about each and every general session, breakout or social activity. And the questions should be built around whether or not those specific experiences had the actual impact that the meeting intended them to have. Did people learn X? Did people feel Y about the company or the new product? Did people perceive Z as a direct result of the meeting? By asking those kinds of clear, precise questions, you then can truly understand what your return on the event was. But you have to be specific in defining first what the needs are that will be the focus of the meeting, and then whether those needs were met.”

If done properly, he adds, ROE research can be used to define which things worked and which did not at a particular meeting. Those findings then empower the company to further investigate why certain initiatives failed and what can be done to improve the next meeting.

The Brave New World of Meeting Research

No veteran meeting planner with more than 10–15 years of experience would deny that the demands by management for demonstrable results from their events has increased exponentially since the end of the recession. And the arena planners must perform in today is much more challenging than it was a decade ago.

“If you go back to 2005 or 2006, you had a whole bunch of meeting planners who just had meetings because they always did,” Massari says. “They were inviting the people they were inviting just because they always had. And the expenses were just based on what was budgeted or what was available. And that was not a healthy business model. I’m much happier today to see a much better understanding of why a meeting is happening, why the people who are going are going, and what exactly will define whether the meeting was a success or not.”

That is a relatively new and sustainable model for a dynamic and robust meeting industry, Massari says. “And even though the total meeting spend may be down from the heyday before the recession, I think that the market overall is now much healthier because there is more scrutiny,” he says. “To me, that means everybody is better off.”

Dominguez concurs with that assessment. And he points out that in the new world of meeting accountability, planners must be informed and at the center of the process from the first moment a meeting is conceived.

“The issue that has become such an important fact in the industry is that for years now, we’ve talked about the fact that to be effective in their roles, meeting planners have to have a seat at the table,” Dominguez says. “They have to play a role in the process from the time the meeting is first being discussed and the objective is being determined. And based on that, what I hear more and more today is that planners are very much involved in the process from the beginning. And that no longer means just producing or planning the meeting. It means helping to define the goal and strategy and then figuring out how their role as the planner plays into creating the meeting. That is a tremendous step forward for the industry. And it also means we’re farther down the road in being able to measure the success of meetings because everything is now so clear to everyone, right from the start. And that has changed and improved how the entire process works.”

In the end, Dominguez says, all companies and all planners will have to be certain that they have gotten a return on their meetings that can be measured and reported.

“You have to have the ROI so you know the meeting made business sense,” he says. “You have to have ROE to know people got the message and knew why they were there and what is expected of them. And you have to have the ROO so you know the business purpose of the meeting was met. In today’s world, you need all three of them, really, to be able to say you truly had a successful meeting.”

For Massari, a central question is one of definition. Is measuring the success of meetings more science than art? Or is it the other way around?

“If I’d been asked five years ago, I’d have predicted that today we’d be seeing a lot more science and less art when it comes to creating and measuring a successful meeting,” he says. “But we’re not. And looking back, with the benefit of hindsight, it makes sense that we’re not. And that’s because the process is so subjective. And because there’s so much assumption involved. So, because of that, for the companies that really do it well, I think that determining ROI, ROE or ROO will always be more about art than science. That’s just the way it is.” C&IT