Lavish incentives

Industry executives say that the most important thing for both sides these days is flexibility.

“(Clients) fully understand that the hotel is under a great deal of pressure to produce results,” Bressler says. “We understand that they’re under a lot of pressure to save money. We would rather work with them and find a way to reduce expenses than to not have a meeting at all.”

Meeting planners are appreciative of the offers because they too are being asked to trim expenses.

Deb VanEvery, a certified meeting planner and president of Resort Destinations, says some of the best incentives involve being lenient on cancellation policies. VanEvery says that many hotels are softening cancellation policies and letting people know that they can cancel if necessary. The hotels just want business on the books for this year.

Some incentives are more tangible. VanEvery is working with a client to book a national sales meeting for 100 people in Florida this summer.

One hotel’s incentives package includes a round of golf, airport transportation and discounts on food and beverage. In addition, the hotel sent the client airline tickets to visit the property before taking a final decision.

Wendy Scott, a Raleigh-based national account manager for Experient, a meeting and event management company, says hotels are offering complimentary receptions, extra planner points and even free massages to all attendees. “For sure, right now, it’s a buyer’s market,” says Scott.

Scott says some locations also are willing to waive or reduce penalties for events that don’t meet minimum attendance benchmarks in return for booking future events at the property.

“There’s a whole new dialog going on between hotels and the groups that they are working with,” says Scott.

Many larger organizations sign contracts with local hotels at the beginning of the year to set a transient rate, an agreed-upon rate for the entire year for staffers who regularly visit the home office.

In March, one hotel reduced the transient rate for the American Institute of Certified Public Accountants in hopes of drumming up additional business, says Stephanie Dumey, a senior conference planner for the Durham, North Carolina-based organization.

Nelson says his colleagues at resort properties are the ones hurting the most as they are fighting what the industry calls “the AIG effect.”

No company wants to be perceived as being extravagant during tough economic times.