Meeting Planners Seek Savings Other Than Rates

Two surveys of meeting planners say many corporations and associations are finding the continuing rise in room rates nonnegotiable with hoteliers, as the group-meeting business has shifted from a buyers’ to a sellers’ market. Associations and corporations are cutting costs in food and beverage, the number of meetings held and attendance, and also considering second-tier cities to curtail costs.

In the past, meeting planners could often call the shots, as major hotel sales teams tried to win business, offering concessions on rates, beverage and food, off-site events or modern audio-visual technology. Two separate surveys by PKF Consulting and MeetingNews magazine show that planners are finding their clients, for the most part, willing to bite the bullet and pay the rates with little cuts elsewhere. But for others, finding savings is a top priority. PKF predicts room rates will rise, on average, 4.2% in 2008, the fifth consecutive year that room-rate increases outpaced inflation. The surveys consisted of 121 meeting planners polled by PKF and 250 by MeetingNews.

“With rising room rates, the lodging industry is seeing historically strong occupancy numbers,” MeetingNews managing editor William Ng tells GlobeSt.com. “For now, the properties have the advantage in negotiations for group space. A lot of planners are trying different things” to cut costs, including “looking at second tier cities,” shorter meetings, fewer meetings, exact travel dates and bulk negotiations with hotel chains, he says.