Looser cancellation policies, free meeting spaces, limo services–those are some of the incentives area hoteliers are dangling to lure this year’s budget conscious corporate traveler.

The hotel industry is facing a 13.7 percent decline in revenue per available room in 2009, according to PKF Hospitality Research. One of the better-faring regions is Triangle, North Carolina, which is expected to only suffer a 7.5 percent drop, the third smallest decline nationwide. Yet despite their less than dire prognosis, area hotels are being pro-active, piling on the freebies and hoping to convince hesitant meeting planners to sign up—a tactic that others in the country seem poised to embrace.

“I’m hearing from the industry locally, regionally and nationally that there are more incentives now than there ever has been–almost entirely in the group and conference market,” says Jim Bressler, director of sales and marketing at the Washington Duke Inn & Golf Club in Durham, North Carolina. “It’s certainly a good time for clients to maximize opportunities.”

Charlotte’s hospitality industry is facing an especially tough slog–it’s revenue per available room is estimated to decline 18.7 percent. In response, the Charlotte Convention Center has been offering complimentary meeting space to publicly traded companies for annual board meetings and recognition events held this year.

Meeting stimulus package

The Carolina Inn, earlier this year launched a “meeting stimulus package,” which offers a 10 percent credit to a master account based on total rooms and banquet revenue.

In addition, corporate clients receive double American Express Reward Points, a complimentary room for a meeting planner, one room upgrade for every 25 rooms, and complimentary wireless Internet in guest rooms. The package applies only to meetings booked and convened before the end of the year.

“We’re doing everything we can to maintain our customer base and make sure customers know we’re doing everything we can to be flexible,” says Mark Nelson, director of sales and marketing for the Chapel Hill, North Carolina-based hotel. “We’re offering rates that we haven’t offered in years. We’re doing everything we can to keep our prices as low and as reasonable as possible knowing that these are tough times for everyone.”

Nelson says the program has been a success and about a dozen companies have taken advantage of the offer. “It’s been local companies in the pharmaceutical industry and health care,” says Nelson.

The Washington Duke Inn, is taking a more customized approach, developing incentives packages for individual clients and throwing in price discounts and enhanced amenities, Bressler says.

For example, Bressler says the most popular incentive at a recent board meeting was limousine service to and from the airport. It was cost effective for the hotel and still saved the client a large amount of money by eliminating rental car fees and taxi fares. In addition, the board members loved the convenience and the VIP treatment, he says.