The business travel industry responded with third party studies that demonstrated a measured return on investment (ROI) to quiet the critics, and now there’s a general impression that many organizations were too reactionary when they canceled business travel.
“If a company’s competitor continued on with its own program,
they ended up gaining market share,” explains Chris Meyer, CEM, CMP, Vice President of Sales for the Las Vegas Convention and Visitors Authority. “You have a self-actualization going on at cor- porations that - at a whimsical stroke of a decision - knocked out their future events without looking at the collateral damage it caused. And a lot of folks are realizing that it cost sales.” What should we learn from this? For starters, perhaps it’s best for organizations to remain com-
mitted that business travel and meetings are justifi ed because they achieve organizational goals: growing brand awareness, educating constituents, enhancing business development, bringing products to market and expanding profi ts. Although many meeting and event planners agree with this
idea, nearly two-thirds say that they are now focused on the basic tactics: tighter budget controls, possible staff reductions and fewer resources. This, according to FutureWatch 2010, a survey of 1,832 meeting professionals by American Express® sionals International®
(MPI). And while there’s certainly room to focus on value and quality
over frills, extras and special deals, organizations should avoid im- plementing radical changes to previously successful business travel strategies. That’s because for every dollar invested in business travel, busi-
nesses experienced an average $12.50 in increased revenue and $3.80 in new profi ts, according to a study by Oxford Economics in 2009. It also revealed that roughly 40% of prospective customers are converted to new customers with an in-person meeting. About $246 billion is spent in business travel in the US - money
that is spent in communities with hospitality taxes and services that directly and indirectly stimulate employment and local econo- mies.
Combined, these benefi ts reinforce the importance that meet-
ings and events provide a strong ROI for the organizations that host or participate in them, as well as the communities and suppli- ers that deliver the needed services. Roger Dow, President and CEO of the US Travel Association,
agrees. “Business travel is economic stimulus. In order to grow, busi- nesses have to invest. This research shows that face-to-face meet- ings and incentive awards to top performers are among the smartest
WWW.MIDWESTMEETINGS.COM
investments companies can make,” Dow explains. But it seems that corporate fi nance departments may still be cau-
tious when it comes to implementing their 2010 business travel plans.
According to data from MPI’s FutureWatch 2010, a larger share
of meetings will be located closer to home, as proximity and practi- cality take precedence over a destination’s unique features or avail- able airlift. US planners are projecting that they are expected to organize 21% more meetings this year and reduce overall costs for those programs. The study also shows that a signifi cant drop in international or trans-oceanic travel is likely this year. Eighty percent of US meet- ings are expected to stay local in 2010 versus 61% in 2009. And this trend isn’t limited to the US: organizations based in Europe, the Middle East, Africa and Canada are also increasing local meet- ings.
and Meeting Profes-
However, local may not always be the best choice. “I know one multinational corporation that postponed its sales meeting in favor of a virtual meeting in 2009,” Meyers says. “It was 90% less ex- pensive, but the ROI was not there. There was almost a backlash among the salespeople. They felt that they didn’t get the opportu- nity to learn and network with each other.” Perhaps for inspiration, organizations should look to the US
State Dinner held in honor of Prime Minister Manmohan Singh and his wife Gursharan Kaur of India in November. Despite record defi cits and budgetary shortfalls, the White House hosted an event that included nearly four times the typical guest list and likely spared no expense to create a lavish, outdoor gala. Okay, meetings are rarely so extravagant, but certainly some les- sons may be learned from that decision.
Based in Chicago, Rob Hard is a free-
lance business travel writer and publisher of BusinessTravelDestinations.com, business travel views to international destinations, and event planning guide for About.com. He is also founder of RH Commu- nications, Inc., a boutique fi rm that provides graphic
editor@rhcommunications.com or write to him at PO Box 4405, Chicago, IL USA 60605.
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