January 2009, Featured Articles, Industry Report
Meetings Robust
Diversification, regional approach keeps the sector healthy.
Only a few years ago, meeting and event professionals got the proverbial blank check when it came to orchestrating corporate events. No longer. Nowadays, businesses and their hired hands are recognizing the need to get the most bang for their event buck. Fighting for success in a sputtering economy, companies have been forced to re-evaluate how money is spent and event venues and professionals throughout the state are rising to the occasion — working to entice today’s penny-pinching visitors to their unique locales.
“The meetings and conventions industry provides diversification and stability to the tourism industry that can smooth out the rough edges of a tough economy,” says Kelli Trumble, Secretary of the Wisconsin Department of Tourism. “Lodging properties and destinations have found that development of meeting facilities is a good return on investment because they provide a strong counterbalance to the leisure travel market during the shoulder seasons and turn leisure destinations that were once May to September seasons into year-round destinations."
Only a few years ago, meeting and event professionals got the proverbial blank check when it came to orchestrating corporate events. No longer. Nowadays, businesses and their hired hands are recognizing the need to get the most bang for their event buck. Fighting for success in a sputtering economy, companies have been forced to re-evaluate how money is spent and event venues and professionals throughout the state are rising to the occasion — working to entice today’s penny-pinching visitors to their unique locales.
“The meetings and conventions industry provides diversification and stability to the tourism industry that can smooth out the rough edges of a tough economy,” says Kelli Trumble, Secretary of the Wisconsin Department of Tourism. “Lodging properties and destinations have found that development of meeting facilities is a good return on investment because they provide a strong counterbalance to the leisure travel market during the shoulder seasons and turn leisure destinations that were once May to September seasons into year-round destinations.”
Overall, the destinations and properties that Trumble has talked to recently have not seen a drop in meetings and convention sales, nor are they experiencing meeting cancellations. Many have meetings on the books for the next two years.
In fact, according to the Wisconsin Department of Tourism, estimated spending by meetings and convention travelers last year increased 5.86% – from $1.28 to $1.36 billion. “The gains we’ve made with meetings and conventions are indicative of two things: That tourism is a diverse industry and that it is that very diversity that contributes to the state’s economy,” Trumble says. “Whole communities and the tourism industry both have made investments in infrastructure, including new and improved convention centers, lodging properties and attractions, and we’re seeing the financial wisdom of that approach.” Also, the market for Wisconsin’s meeting destinations tends to be regional and not affected by increased costs for air transportation or fluctuating gas prices.
Area Destinations
According to Brent Foerster, vice president of sales and marketing at Visit Milwaukee, they have had no convention cancellations but says room bookings are soft for 2009. However, in 2010 room bookings are robust. They believe that has more to do with the ebb and flow of the meetings and convention business than an economic downturn or recession.
Milwaukee has positioned itself as a good value, centrally located and a place where “attendees can get down to business” and still enjoy entertainment and dining after the “work” is finished. Milwaukee fares well in value and price when compared to airfare and room rates of other mid-sized cities.
“Milwaukee did point out that it’s entirely possible that companies may choose to send one person to a meeting instead of 3 or 4 and that will impact attendance and room bookings,” Trumble says.
Resorts in Wisconsin Dells are actually on pace and even seeing increases for 2009 in this segment of their business. Trumble cited a change in strategy by companies and organizations to hold regional meetings over distant meetings, with Wisconsin’s central location in the Midwest really working in their favor.
According to Melanie Platt-Gibson at the Wisconsin Dells Visitor & Convention Bureau, they’ve been surveying their member businesses on a regular basis, looking for any hints of after-affects from the flooding this past June and the current economic downturn.
“The good news is our convention resorts are telling us their meeting and convention business is equal to or exceeding last year’s numbers,” Platt-Gibson says. “ As associations and businesses are choosing to hold meetings closer to home, that plays in our favor, given we’re a major destination in the Midwest.”
While meeting planners are expressing general concerns about the possibility of lower attendance at their meetings in 2009, they are optimistic that by having their meeting at a leisure destination such as a waterpark resort, invitees will be more likely to attend because they’ll be able to bring along their family. “In other words, the trip will do double duty as a business obligation and family vacation,” Trumble says.
What’s more, the meetings and convention industry felt little to no impact as a result of last summer’s severe weather. As Trumble explains, much of the flooding was localized to specific areas, many of which tended to be rural. Even in Wisconsin Dells, where the Lake Delton crisis created some problems with perception, the area did not have meetings or events that canceled.
That said, Wisconsin Dells area is seeing national groups putting more effort into their regional meetings as a way to reduce travel expenses. “ As for spending generally, many are planning on the same budget as the previous year, but looking to get the greatest value for that budget,” Platt-Gibson says.
Mae Ibe, director of convention sales at the Fox Cities Convention & Visitors Bureau adds that the Fox Cities region holds many statewide meetings, making it easier and less expensive for attendees to travel. “These regional meetings still remain strong because most attendees don’t have to pay for an airline ticket or extra hotel room night,” she says. “Some meetings and conventions have been affected by the slowdown in the economy, especially those that require participants to fly.”
The Fox Cities CVB works closely with meeting planners to find the best facility at the best price. “We recently hosted a large international convention and had many comments from attendees on how affordable our hotels and dining options were,” Ibe says. “This was a group that usually goes to large markets where those costs are naturally higher. They were amazed they only had to pay $1 a day to park in our ramps.”
For those businesses within the Stevens Point area, the meetings and conventions activity levels continue to rise, says Melissa Sabel, communications specialist for the Stevens Point area CVB. This is the result of increased meeting space within the Holiday Inn and the renovations of the Holidome in Stevens Point.
“People want ease of use and accessibility,” Sabel says. “We also offer free meeting and convention planning services, which also appeals to many of our visitors.”
Creative Strategies
Maintaining a strong hold on the meetings and conventions arena, especially during a downturn in the economy, requires some strategic initiatives on the part of venue owners and operators.
The good news is that meeting planners already know that a convention in Wisconsin represents a good value compared to other destinations or urban markets such as Orlando, Las Vegas or Chicago. Free parking, easy ground transportation, spacious accommodations, location, access to leisure activities such as golf, spas, waterparks and outdoor sports all add to Wisconsin’s value as a meeting destination.
“The value quotient of our area is a bigger draw than ever,” Platt-Gibson says. “Meeting planners greatly appreciate our free parking, affordable room rates, flexible food budgets, free amenities (especially the waterparks), and money-saving green practices.”
Wisconsin is also looking at niche markets such as green meetings. “We have a number of meeting facilities and lodging properties certified through our Travel Green Wisconsin program,” Trumble says. Madison, which hosted The International Eco-Tourism Conference in 2007, is a leader in this niche market with properties like the Monona Terrace, which is a certified LEED building, and the Travel Green Wisconsin-certified Alliant Energy Center. In Milwaukee, Hotel Metro, The Pfister and State Fair Park are also Travel Green Wisconsin certified.
On the Horizon
Resorts and lodging properties across the state have continued to invest in the meetings and conventions market as a way to diversify. “Over the last several years, we have seen millions of dollars invested into upgrades or brand new meeting facilities because it provides return on investment,” Trumble says.
In fact, not having meetings can put a property at a disadvantage. “The resorts that have meeting space are able to attract business during the shoulder season and mid-week when leisure travel is slow,” Trumble adds.
Another area of meetings and conventions that has seen marked growth is sports event marketing. Families are still traveling with their children for youth sports events and will turn a tournament into a vacation. “Development of the Field House and Wisconsin Dells Center at Chula Vista Resort are just two examples of how destinations and lodging properties are investing in this profitable niche market,” Trumble says. “Chula Vista Resorts reports their sports events have already surpassed projections.”
Industry experts agree that the general travel trend is shorter trips closer to home. “This goes for both convention and leisure travel,” Ibe says. “Some groups are still holding their event but are cutting back on the number of days they hold the event to reduce costs. Planning for the meetings and conventions market is done far in advance of the actual event, so groups coming now or next year, in general, booked their event several years ago before the economy turned. I expect these groups will continue to hold their events and will look to make them more cost efficient and a better value for the attendee.”
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