After the work sessions, the organisers were sure to include a tour of the city, a relaxing spa treatment, a round of golf or a 4×4 ride. "These days, all the extras are banned. Seminars are focused on work", says Silvie Alric, Marketing Director France for the Hilton Group. Because with the economic crisis, budgets are being cut to the bone. In the months following "Black September", which saw the global economy plunge in the wake of Lehman Brothers in 2008, the trend was completely reversed.
Fewer participants
"Major meetings are prepared and booked well in advance. So we haven't felt the immediate effects of this crisis", continues Silvie Alric. This is confirmed by Philippe Attia, Senior Vice President Operations Europe at Dolce Hotels and Resorts: "We didn't have any massive last-minute cancellations in autumn 2008. The first quarter of 2009 was more or less the same as the previous year in terms of the number of events. The decline was really felt from the second quarter onwards. For her part, Silvie Alric says she has seen "a 40-1TP3Q drop in the number of bookings across Europe. This drop was less in the number of seminars than in the number of participants. But over the end of 2009 and the first few months of 2010, the trend is upwards."
On the other hand, the duration of events is always reduced to the strict minimum and the number of participants is considerably reduced. What's more, bookings are being made later and later. "As in the past, people call well in advance to ask for information and quotations... But they have started to confirm transactions at the option exercise deadline. Even for big deals, some people only book a month in advance and... find availability", says Hilton France's Marketing Director.
Another change in the way seminars are organised is the choice of venue. The AIG (American International Group) scandal has left its mark on people's minds. It will be recalled that less than a week after the American insurer was bailed out by the US central bank, its senior executives spent a week at a seminar in one of the most luxurious hotels on the Californian coast. The total bill: 440000 dollars. At the time, the affair hit the headlines and caused a scandal the world over, as the public was left with the impression that AIG executives were having a good time at the expense of the princess, or more precisely the taxpayer. "Since then, it has become socially incorrect to hold a business meeting in the sun or in a grand palace. You absolutely mustn't give the impression that you're having fun", comments Philippe Attia. Conclusion: most French people stay in France. "When we cross borders, it's rarely to destinations more than a two-hour flight away", adds Jean- Pierre Soutric, European Sales Director at Four Seasons. And in all cases, the accessibility of the venue remains paramount. Organisers avoid choosing a hotel located more than 45 minutes' transfer time from the station or airport.
To be more modest, some companies - accustomed, for reasons of prestige, to bringing their staff together in five-star hotels or palaces - prefer to fall back on less ostentatious addresses. "We're taking advantage of this to a certain extent," notes Philippe Attias, who this autumn even saw a major fashion house choose the Dolce Chantilly over one of the most prestigious addresses in the Paris Golden Triangle. "Our establishments are rated four stars and offer luxury services, golf, spa, etc. But we have an image of being a centre of relaxation. But we have an image of a convention centre. People come to us first and foremost to work in peace and quiet.
Promotional seminars
For their part, the major hotel groups such as Accor, Marriott, Hilton, IHG, etc. are showcasing the full range of their brands. Accor favours Pullman, its business chain. But don't forget Novotel and Mercure, which are cheaper alternatives. In fact, the reservations service systematically suggests these latter brands when a customer's budget is not sufficient to organise a meeting in a four-star hotel. "We always listen to our customers' needs. We are fortunate to have a vast portfolio and, if necessary, we can propose another brand so as not to miss an opportunity", emphasises Vivien Ivanyi, IHG's Marketing Director for France.
Price has become the number one criterion for booking. So there's nothing better than a promotion to attract the attention of organisers. These days, discounts are no longer limited to individual breaks: seminars and incentives are also on offer.
Attractive rates, of course, but with contingencies too, such as compulsory payment on booking. No cancellations either. "For our part, we did no more or less specific actions than in other years. For seminars, there are traditionally two promotional periods: spring and autumn", insists Jean- Pierre Soutric. If, according to the hoteliers, the frequency of these 'sales' is nothing out of the ordinary, the nature of the offers and the prices on offer are quite unusual.
For example, the Hilton group has launched its brand new "1 for 5" offer, which means that one person in five attending a meeting does not pay for the basic costs: room, breakfast, meeting room, lunch, coffee break, etc. For their part, with the "Happy Meetings" campaign, Novotel and Mercure are offering up to 30 % off their meeting packages. This offer, valid in around a hundred French towns and cities, includes room hire, two breaks, lunch, as well as the room and buffet breakfast when accommodation is included. A one-day meeting costs 39 euros per person, excluding Paris and La Défense, where the price is 59 euros. With hotel accommodation, the rates rise to 139 and 169 euros respectively. Dolce Hotels and Resorts and Concorde Hotels & Resorts leave it up to their customers to set the rates. "Within reason, of course. Proposals will have to take yield management into account", adds Philippe Attia. So there's no point thinking about organising an event in a Dolce establishment for around a hundred euros per person.
Because even if the reductions are greater than in other years, hoteliers do not want to undercut prices. Wherever we are in the world, "we're careful not to start a price war. Because later on it will be very difficult to come back to the rates charged in 2008", explains Thierry Douin, Shangri-La's Regional Director for South-East Asia.
The exercise is all the more strategic in that hotel groups have bet big on seminars. Over the last five years, they have invested heavily. To meet the new technological demands of their customers, they have had to equip their meeting rooms with wi-fi networks, webcams and other state-of-the-art audio-visual equipment. By switching to the Pullman brand, the former Sofitels are also embarking on work that can, in the end, prove to be quite costly. By changing its name, the Royal Golf El-Jadida in Tangiers will be renovated from top to bottom and extended. The extension work includes the creation of a 600 m2 meeting area and six rooms.
Everywhere, there has also been significant investment in organisation. "Séminaires solutions" at Best Western, "Signature Events" at Shangri-La, "Co-Meeting" at Pullman, "Passkey" at Crowne Plaza Hotels and Resorts, and so on. Whatever the name given to the seminar 'plan', it is now accepted that you can organise a gathering from A to Z via the Internet with almost any chain or group. "To meet the needs of its customers, Holiday Inn will soon be launching a dedicated site www.holidayinmeeting.com.uk, which will be available in a .fr version. We have also just published a multi-brand site www.monmeeting-ihg.com for France. This site highlights all the IHG hotels in France, as well as news and offers", adds Vivien Ivanyi.
Ad hoc organisation online
On the Web, each chain undertakes to respond within 24 hours and to assign a dedicated contact person to event organisers. Always an innovator when it comes to business travel, Hilton has been banking on its online event management platform, known as POG (personalized online group), since early 2007. This tool, offered exclusively by Hilton, was developed at the request of business travel managers," explains Silvie Alric, the American group's marketing director for France. "For each event, we create a professional interface in the colours of the company concerned, with its logo and the images it wants. This mini-site provides an overview of the event, the hotel, and above all participants can register directly and make their reservations according to their wishes." The idea quickly caught on. Just as the meeting butler has established itself over the last few years. From the moment the event is prepared, the meeting butler is the customer's sole point of contact. He or she then ensures that the event runs smoothly, liaises with the hotel's various departments, deals with last-minute problems, organises planned excursions, etc. When it comes to business trips, seminars and incentives, the crisis has changed the way companies think and work. Companies have not abandoned their own corporate culture, but have very quickly adopted new habits that should last once the warmer weather returns. But it has also shown that in this age of over-connectivity, videoconferencing has not replaced meetings. Reduced to a few days, sometimes even to a single day, these meetings are necessary to maintain team cohesion, motivate the troops and retain talent. Man is a social animal and remains so. Even with a Blackberry in your pocket and free wi-fi on every floor.
