Your Strategic Meetings Management Program means nothing if you can’t demonstrate its effectiveness. In the first of two columns on measuring outcomes, learn how to track cost savings and risk reduction/cost containment.
As you prioritize and implement the many “valueand accountability”components ofa Strate- gic Meetings Management Program (SMMP), it is critical thatyouvalidate their success to seniorman- agement and key meeting stakeholders.AsI’ve said in previous Meeting Management: SMMP columns, transparentmetrics to define,measure, benchmark, and report results is essential—espe- cially sinceC-suite executivesoftenquestiontheval- ue and impact ofmeetings and events. That said, generating credible data on ameet-
ing’s financialandattendeeimpact can bea slippery slope. In this column—the first of two articles on
Savings Category Sleeping rooms/suites
measuring outcomes—I will address cost savings andriskreduction/cost containment; inmynext col- umn, I’ll address return on event (ROE).
CostSavings Asour industry continues to claw itswayout of the recession,andmeetings budgets remain flat, there is stillabig push to savemoneyandreduce risk. Since mostplanners negotiateandsign contractswithhotels andsuppliers, utilizinganegotiations planandana- lyzing the countersigned contracts for each meeting is the most direct path tomeasuring real value. Youcan achieve cost savings by understanding
Sample Metric Formula
Calculate starting sleeping-room rate vs. final negotiated rate X total contracted rooms.
Benchmark comp suites or discounts against suite group rates, not rack rates.
Calculate comp F&B functions from published menus X number of attendees (including tax and service charge).
Calculate percentage discounts off published F&B menus/percentage X contracted F&B minimum. (Calculate post-meeting actual.)
AV production/hotel support services
Internet savings
Calculate AV discounts from published prices and/or comp or discounted fees/support services.
Calculate waiving in-room Internet fees: daily amount X total number of room nights.
Calculate savings for meeting and event Internet fees/services.
Hotel fees/surcharges
Preferred suppliers Master account discounts
Determine savings for eliminating or reducing costs on resort fees, early-departure fees, meet- ing-room rental/set-up, venue rentals, etc.
Calculate preferred-supplier volume-buying sav- ings for hotel/venue services and support.
For larger programs, calculate negotiated percent- age off master account based on guaranteed total revenue and/or payment upon departure (generally 5 to 7.5 percent).