Meeting and travel planners are under intense pressure to demonstrate value for any off site meetings that they plan with defined business objectives and demonstrable results.  They are trying to minimize the cost of travel to any meetings that they plan so those locations close to their office, airport hotels that minimize the need for rental cars and other ground transportation expenses have benefited from this trend.

Bill Marriott indicated in a statement that "...group cancellations are slowing down, and there's solid business growth for 2010 and 2011 group bookings."  As well, Smith's Travels Mark Lomanno suggested that "...we believe the first two quarters of 2009 will be the lodging industry's trough in this cycle, and we will see some modest improvement in the third quarter followed by measureable gains in the fourth quarter, especially in occupancy."

In an era where perks are not even considered in the decision making process, expectations of hotel service have been reduced to the provision of the essential basics - free internet access in both guest rooms and meeting rooms, reasonably priced food and beverage - CMPs (complete meeting packages) are a bonus and other amenities such as comfortable bedding, cable TV, desks and chairs, etc have become commoditized.

In the individual corporate travel space, the mid level segment without food and beverage is winning in the mid week corporate travel segment according to the Smith Travel Analysis (Hotel News Now, April 25, 2009).  All of the above commoditized amenities with the added value of free breakfast have moved this segment up the �food chain' (pardon the pun).

What are the new �tipping points'?

    * Practicality.   This does not mean that economy hotels are going to be filled with business travelers and meeting attendees.  Practicality is the �feeling' of getting good value but the perception of value is not just a price point.    In a February 09 article by Nash and Bardsley in Hotel Resource practicality was described as "...everything you really need is provided, but nothing extravagant ..."   Meeting Planners and travel planners have to demonstrate that they are being practical and not wasting company resources extravagantly.

    * Value Add Practical Amenities.   Case study - Hotel A, in an attempt to close a meeting offered the planner a complimentary cocktail reception.  Hotel B in the bid process simply offered a �voucher' that the planner could use how they wanted for their meeting.  The planner chose Hotel B and used the voucher to upgrade their coffee breaks.   Cocktail receptions free or not, often don't look good to the corporate office.

    * Reliability.   Meeting Planners especially want the meetings they do plan to go off smoothly.  This is a shift that demonstrates the importance of relationships.  If a planner has had an experience that went smoothly in the past, they may be inclined to negotiate and rebook with that hotel and sales person that they trust - no surprises!

    * Building and maintaining those relationships.   Meeting and travel planning departments have been downsized in many cases - they really don't have time for lunch or to travel for a site inspection.   Social networks are a great place for building those relationships.    Maximize the page and have a company profile on LinkedIn.  Recommendations from other meeting and travel planners on your page serve as a �third party' referral and are more likely to inspire confidence in you and the hotel.

Meeting and travel planners are still booking upscale hotels and resorts but the emphasis is on the functionality of the property and the meeting space to promote the productivity of the meeting.   If the regular rate is $500 a night and the hotel offers $200 the perception of practical value is there.  Deemphasize the spa, the golf course and the five star restaurant!

Understanding what is important to the planner is about understanding what's important to the planner's boss and other stakeholders - ask them!  Be willing to negotiate to provide those �tipping points'.

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Carol Verret And Associates Consulting and Training offers training services and consulting in the areas of sales, revenue management and customer service primarily but not exclusively to the hospitality industry. To find out more about the company click on www.carolverret.net. To contact Carol send her an email at [email protected] or she can be reached by cell phone (303) 618-4065.  Visit www.hotelsalesblog.com.