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Positive ROI Fuels Meetings Recovery

Wednesday, September 8, 2010 by Kevin Iwamoto

I read about a couple of new surveys -- both in Successful Meetings magazine -- that show positive news for the meetings industry, and I'd like to share the findings with you.

One was conducted by IMEX and polled North American meeting planners about their outlook for a meetings recovery. In that survey, just over half (54%) of meeting professionals from the U.S. and Canada expressed "cautious optimism" about the return of the meetings and incentives market, and an additional 9% said they were "very optimistic." IMEX's poll was taken just after its May 2010 show.

Meanwhile, another survey points to positive news with important strategic implications. This one was commissioned by the Hospitality Sales & Marketing Association International (HSMAI), and it found that 60% of meeting planners felt increased pressure to show proof, as in statistics or metrics, that an event was successful and had great ROI. What are the preferred metrics? Event satisfaction, attendance and net revenue, according to the poll.

HSMAI also polled planners on meetings technology, and the organization found that technology is most useful for those who want to save time, be more organized and streamline business processes. Planners most preferred applications such as online registration, social networking tools, eRFPs, e-mail marketing, blogs, e-commerce and virtual meetings.

The increased confidence in a meetings recovery and the growing need to prove event ROI may seem like two separate developments (although both positive). However, it's plain to me that one is directly related to the other -- that the more successful you are at measuring meetings ROI and presenting it as proof positive that meetings work and are good for your company's bottom line, the more apt your CEO is to look upon meetings as a good business decision. And while I don't have a survey to back me up on this, the more likely it is that your meetings budget will increase.

But how to make that happen? The key is to be better communicators of meetings value.

It is a best practice to make it a regular practice to remind everyone from meeting planners to CEOs of the effectiveness of your SMMP -- in meetings policies, email blasts, company newsletters, executive dashboards with metrics, conference calls, training road shows...whatever forum applies. If you've measured ROI for past meetings, remind your audience of those findings, and by all means, continue to measure and internally publicize your meetings ROI figures.

New CWT-StarCite Survey Spotlights Meetings Management Opportunities

Monday, August 2, 2010 by Kevin Iwamoto

I've been meaning to congratulate CWT Travel Management Institute, the research arm of Carlson Wagonlit Travel, for its study on the state of meetings management -- Meetings and Events: Where Savings Meet Success. StarCite collaborated extensively with CWT on the research, which substantiated what we already know, that companies can save an average 10% to 25% of their Meetings and Events (M&E) spend when they apply best practices to such areas as policy and compliance, sourcing, and processes.

The report's top savings mark is in line with benchmarking statistics that StarCite has been finding among our customer base, that is, using meetings management automation to make budgeting, planning, sourcing, attendee management and other key meetings tasks more efficient can save you up to 25% of meetings spend.

The new study says that savings and ROI from meetings come from three key areas:

- Creating or fine-tuning an organization-wide meetings policy and enforcing compliance,
- Sourcing best practices, for example, selecting a limited number of preferred suppliers for accommodations and venues, enforcing usage of preferred suppliers and defining standard contract terms and conditions to help maximize purchasing power and protect an organization from onerous cancellation and attrition fees.
- Technology that optimizes processes such as online registration and aids in strategic meetings management.

I have spent a lot of my time evangelizing around the world via industry panels, conferences and with customer round tables highlighting these very same recommendations. On the issue of policy alone, I've repeatedly offered advice about the importance of at least establishing or updating and mandating policy since this blog started. Remember, you can’t expect people to do what’s right for your company in absence of a policy; so take the guesswork out and give employees M&E policies and/or guidelines or they'll make decisions based on their interpretation of “doing the right thing,” and that may not be what’s good for your company.

What I really like about the new CWT-StarCite survey are the practical steps it offers for maximizing meetings management, including:

- Analyzing spend company-wide to allow firms to estimate total spend and begin taking the reins to set up a centralized meeting management organization,
- Designing a well-defined policy that spells out precise rules, standard contract terms and specific processes,
- Selecting and negotiating with preferred suppliers and meetings services and technology partners -- allowing companies to save and benefit from outside expertise,
- Establishing a formal planning process that defines business objectives and sets a formal approval process -- for consistency and compliance and getting the ultimate ROI,
- Replacing manual processes with automated meetings management tools to perform tasks such as attendee registration and sourcing -- which saves time and labor, improves data quality and spend management overall,
- Consolidating to a single payment solution, such as a meetings charge card, enabling companies to better analyze data, improve compliance and boost leverage with meetings vendors
- Evaluating the ROI of meetings, including attendee satisfaction, savings, compliance and other metrics.

Oh, one other thing. I must say that I'm a bit discouraged by another finding of the study -- that two-thirds of the more than 200 meeting planners surveyed manage their events in a decentralized way. I say that I'm discouraged, but I still have faith that more and more firms are seeing the need to centralize management of their meetings, especially in today's economic climate -- where every expense is being scrutinized. The real winner in this common decentralized environment is one company, Microsoft, because that means there’s a ton of Excel spreadsheets that are being manually maintained and utilized often times simultaneously with little to no time to verify accuracy. Sound frightening and inefficient? I assure you this is what’s happening globally every day in decentralized programs at companies who conduct meetings and events as part of their business.

New Whitepaper Charts Virtual Meetings Benefits

Wednesday, June 16, 2010 by Kevin Iwamoto

There's a fascinating new report out by the Cornell University School of Hotel Administration, "Hospitality Business Models Confront the Future of Meetings," that discusses how companies are increasingly relying on virtual meetings such as webinars, video technology (such as Cisco's TelePresence technology) and tele-conferencing -- especially in light of the drop in demand during the Great Recession and even from recent events like the Icelandic volcano eruptions.

I should tell you upfront that both the paper's authors are from Cisco's Internet Business Solutions Group; Indeed, the consulting group produced the paper. The paper contains a font of data and statistics that clearly shows that both companies and hotels are embracing meetings automation. For example, it quotes Wainhouse Research from 2009 that says 76% of corporations polled are using room and executive videoconferencing now, with another 8% set to deploy it within a year; and 50% are using webcams with PC software, with another 18% planning to use it by 2010.

Since installing its TelePresence system more than three years ago, Cisco has saved nearly half a billion dollars in travel and registered more than $150 million in productivity gains. On the eco front, the company cut greenhouse gas emissions by 225,000 metric tons. "Coupled with policy changes on internal travel, communication and collaboration technologies enabled Cisco to reduce travel expenses from $750 million in fiscal year 2008 to $240 million in fiscal year 2009," says the paper.

Interesting, too, is the discussion around hotels increasingly recognizing the value of virtual meetings, in the form of TelePresence as a Service (TPaaS). For example, Starwood, Marriott, Taj Hotels and others are installing equipment in their properties -- sometimes in partnership with corporate clients -- to be able to take advantage of current and future demand.

But if there was one overriding thing that struck out at me from the Cornell paper, it was the question: "But what if technology-based meetings are deemed enduring substitutes for business travel? It is hard to believe that companies will be willing to surrender cost savings when viable alternatives have emerged to preserve them."

As I've said before in this blog, you may see this happen for certain types of events, perhaps a company's internal training sessions. But not all. Indeed, even the Cornell paper says that "not all meetings can be held remotely, and face-to-face meetings will certainly endure."

There can be no holding back the march of time and advances in technology, including virtual meetings, but nothing replaces the experience of face-to-face meetings, especially for complex negotiations with clients, finalizing sales agreements, recruiting for executive positions and building relationships with key customers or prospects (as the paper duly notes).

Yet, I don't need a whitepaper to tell me that; that's the truth...and I've experienced it.

Safe to go Back in the Water at Luxury Hotels

Monday, May 10, 2010 by Kevin Iwamoto

Now that there's real evidence that the economy is improving (consistent rises in GDP and recent, positive news on corporate earnings), meetings managers everywhere are asking, is the sensitivity over using luxury hotels and spas for events over, and should we start once again taking a look at them when sourcing? The hesitancy I hear about this issue reminds me of the tagline from the movie "Jaws 2:"..."Just when you thought it was safe to go back in the water..."

It’s understandable why corporations avoided using high profile luxury hotels and resorts during the economic recession, but if you did stop using these hotels because of negative media attention (especially if your company was a TARP recipient), then it's time to take a new look at this issue. In fact, some companies already are, according to a recent article in M&C magazine. In the article, several executives from luxury chains said they're seeing improved numbers. ""Last year, meetings was a dirty word, right up there with banker bonuses, and the AIG effect was on the news every night," Frits van Paasschen, president and chief executive officer of White Plains, N.Y.-based Starwood Hotels & Resorts Worldwide, tells the magazine. "Today, the paranoia and taboo around resort and luxury destinations for meetings is subsiding. For example, at the Phoenician in Scottsdale, the very definition of luxury, group room nights [for first quarter 2010] are up 32 percent from last year."

And while Smith Travel Research forecasts that it will take most of this year and into next for the hotel industry to truly recover from dismal RevPAR and average daily rates figures, the article quoted STR president Mark Lomanno as noting that "when improvement begins, it will come from the top down, with luxury properties rebounding most rapidly."

Besides, the press (I'm talking mainstream media, here) has become more educated about how strategic meetings management methods can keep meetings costs in line and benefit the bottom line. My view is that top considerations should be whether luxury properties are the best suited for certain types of meetings, for example, incentive gatherings for employees or meetings with customers or perspective clients. They should be sourced competitively, together with other properties in more moderate categories. And, if luxury properties and resorts can throw more value into the mix, for example, discounts or waiving resort fees, free high-speed Internet access, etc. then so much the better.

Of course, Treasury Department rules set up to guard against excessive or wasteful spending on meetings for TARP-recipient companies still apply. But those rules are in effect whether your company is holding events at any property, not just a five-star.

It's safe to go back in the water...always has been. But use sourcing best-practices and a sound meetings policy to guide you when making strategic decisions about doing business at luxury and resort hotels.

Building Policy on Virtual Meetings is No Simple Task

Friday, April 16, 2010 by Kevin Iwamoto

Recently, I was glad to see an analysis in a major consumer newspaper (USA Today) of what companies go through in terms of figuring out whether to meet virtually or face-to-face.

The story featured an executive at a machine maker saying that, over the past year, "We really needed to look at, is this trip the difference between closing business?. Is this necessary for some reason?" While the company sometimes decided that a phone call or e-mail could take the place of travel, the executive said that "there are times when nothing works as well as sitting in front of someone talking to them."

But the story correctly projects that, even as the economy shows signs of more robust growth, and more business travelers are hitting the road, the scrutiny over whether a trip is necessary -- or if web conferencing, teleconferencing or telepresencing would work just as well -- will continue.

I see this as a permanent trend, too. But meeting managers are also telling me that it's no simple task to come up with guidelines to help their companies determine what's best, as they have to consider such complex issues as differing business goals for trips. Not to mention that clients (internal or external) may require more or less levels of attention. In other words, while it may be fine to say internal meetings of, let's say, 25 people, must meet via the web, there are going to be some situations or projects requiring that these folks have to get together.

When forming policies on whether to meet face-to-face or virtually, it's very important to get feedback from different business units on how they view the effectiveness of each form of meeting, what type is best for them, whether they're already using virtual tech and in what circumstances (If you find heavy use with one vendor, you can use the information to negotiate a preferred deal.). Also, you may want to get a senior executive to weigh in on the issue -- even if it's just to urge department heads to use knowledge and experience about what clients and employees need before deciding on face-to-face or virtual.

You may discover that it's best to avoid an all-out mandate on using virtual meetings -- even in limited circumstances. But whatever you decide, make sure that the policy fits your company's culture and practices around service to customers, as well as business goals.

Meetings ROI a Must These Days

Thursday, April 15, 2010 by Kevin Iwamoto

Are you seeking more information on your return on investment (ROI) for meetings these days? With budgets continually under pressure, many of the companies that I meet with daily tell me they're making decisions about meetings based on ROI metrics of events, and that it's not just about getting the most favorable rates anymore. This has been a common theme since even before the Great Recession began.

Now, however, a new survey confirms this trend. A poll of planners attending the 10th Annual HSMAI Affordable Meetings Mid-America Conference & Exposition in Chicago this week, says that nearly half (49%) "feel increased pressure to show metrics/statistics that attest to the success of events," a release from the organization says.

So just what are the meetings ROI measurements that companies these days want to see? According to the survey, top metrics most often requested are:

- event evaluations and satisfaction surveys
- net revenue
- attendance size
- room night count
- sponsorships
- ability to stay within budget
- rate of repeat attendance
- level of responsiveness to client needs
- and increased service per attendee for each dollar spent.

These are all great metrics and can really help you, as a meetings manager, make more informed decisions about the worth of some types of events, whether they should be expanded or, on the other hand, discontinued and replaced with an alternative such as web conferencing. ROI stats are also helpful to have handy when communicating SMMP milestones to senior executives.

And I was very encouraged to see that, at least in this survey, meeting planners are using technology to plan and budget events: 84% said that they "rely" on technology such as online registration tools, social networking, e-sourcing, e-mail blasts, marketing and blogs as business resources.

Want to learn more about measuring ROI and what to do with those numbers once you've found them? Check out the replay of this recorded StarCite webinar!

Social Media Needs Strategic Management, Too

Friday, February 19, 2010 by Kevin Iwamoto

When I first wrote about using social media tools, such as Twitter at meetings, attendees were using the technology to tweet back and forth during event sessions about how the presentation was going, exchanging opinions and then collaborating to propose questions to the panelists or presenter. How industrious and efficient!

Now, social media tools are taking on greater importance in overall strategic meetings management, according to an article in MeetingNews. While planners have been busy using social media to do things l

ike integrate the tools into their online registration and conference sites and send out speaker and logistical information, organizations are making broader decisions about how and why to use the tools in their meetings programs.

That's a smart move because you'll want to make sure planners and their attendees are using social media to support your SMMP goals and increase your program value -- as well as adhere to corporate guidelines and policies around internal and external communications.

The article quoted a meetings tech consultant who said that companies are formulating policies on who will be responsible for the technology, which tools to implement and how to attract users. I work with some of our customers to accomplish the same thing, encouraging them to own this space as part of their travel and meetings programs; it’s all about enterprise mobility remember?

Understandably, there's a certain degree of cautiousness out there to implement an organization-wide tool. In the story, one association executive which used Twitter to satisfy members' needs to communicate in real-time and distribute conference material, acknowledged that "there is a fear of lack of control, and you don't have control over social media. It is an open forum, people can say what they want to say, and that makes people nervous. Our strategy is definitely cautious, but we are getting there."

In the meantime, social media continues to revolutionize how people and organizations communicate. Consider some of these statistics I found on the blog Socialnomics:

- 96% of "Generation Y" members have joined a social network;
- It took 38 years for radio to reach 50 million listeners, but Facebook added 100 million users in less than 9 months;
- 78% of consumers trust peer recommendations, but only 14% trust advertising.

Yes, social media is cool, and it can streamline planning processes, enrich content, facilitate instant feedback to help you measure ROI -- and even attract new event sponsorship opportunities. But be careful to choose tools that match your SMMP goals and company policies, and make it a priority to appoint a watchdog who monitors how your employees or association members use -- or abuse -- the tools.

I'd call it exercising "enthusiastic caution."

No More Bed Head at Virtual Meetings

Monday, January 11, 2010 by Kevin Iwamoto

If video or web conferencing is a significant portion of your meetings program, perhaps it's time to consider creating or fine tuning guidelines around how attendees show up for these events -- meaning how they dress and present themselves when they get on camera.

Currently there’s laptop and home computer built-in web cams that allow for visual participation, and I’ve already heard stories of people who were unaware that their images were being viewed during a meeting. Oh, yes, total embarrassment!

It used to be that you could take part in a WebEx or teleconference from home; you could hang out in your robe, pajamas (and accompanying bed head) with no problem, while participating and taking care of business. Soon, however, it will be a whole different story. Technology will soon require your attendees to be professionally attired for virtual meetings.

I thought about this as I was reading a piece in The San Francisco Gate. Apparently, Skype voice and video calling technology, which can be downloaded free from the web and allows subscribers to call and video conference each other at no cost, will be embedded in high-definition LG and Panasonic televisions with Internet capabilities. And LG and Panasonic will sell webcams that support 720-p high-def pictures.

This will all be available later this year. So, I wonder how many home-based meeting attendees will be turning to their 46-inch flat screens -- to see and be seen in virtual meetings? If you haven't done it already, this might be a good time to prepare for this next generation of virtual technology by updating your policy on virtual meetings to set some ground rules on how home-based attendees should dress. Allow me to make some suggestions:

- business casual attire for virtual meetings among fellow employees, meetings with suppliers, and any non-customer facing activity
- suit or coat and tie for gentlemen, business suits for ladies for all meetings that connect employees with clients and business partners
- combed hair, a shave, makeup (for women) – you can make it a gender neutral policy by asking employees for “visually professional appearance” during virtual technology meetings.

If you're thinking that this is a trivial matter. I beg to disagree. Employees representing your company, whether at an in-person event or virtual meeting, need to present themselves professionally for maximum impact. Besides, every day...seems more like every minute...technology is changing the way companies meet and manage meetings. So isn't it a good idea to be pro-active and prepare for these technological developments to better adapt and use them to your company’s benefit?

Have you created meetings policy rules on how virtual attendees should appear on camera? If so, please tell me about them here!

A Tribute to 2009's Strategic Meetings Management Leaders

Monday, January 4, 2010 by Kevin Iwamoto

As we begin 2010, I want to take a moment to mention some of the tremendous accomplishments of some very exceptional meetings managers during 2009.

Last year was truly the 'Year of the Meeting!' as our own business travel industry, the major media and the government all put a huge focus on corporate events and strategic meetings management. Some of it was positive, like the launch of NBTA's Strategic Meetings Management Certification (SMMC) program. And some of the attention was negative, like the misguided focus by the press and in government circles on corporate events as extravagant investments in recessionary times (when in fact it's been proven that meetings contribute enormously to a company's bottom line.

But aside from these major trends last year, were stories of some very hard-working and talented people who created or improved upon innovative strategic meetings management programs (SMMPs) at their companies. While I don't have large enough space in this format to mention them all, I want to draw your attention to some highlights:

Many were featured in Corporate Meetings & Incentives magazine's "20 Changemakers,” including:

- Louann Cashill, Meeting Services Manager at Toyota Motor Sales, U.S.A. (Louann significantly expanded centralized and automated hotel sourcing throughout her organization and worked pro-actively with hotels to re-book contracted space that planners had canceled for future meetings and re-negotiate credits.

- Lee Ann Adams Mikeman, VP, Conference Planning & Special Events, Science Applications International Corp. (Lee Ann and her team are streamlining the meetings payment process to track payments and reconciliations via their meetings technology system. She's also integrating her firm's online booking tool for air ticketing with the meetings technology platform.

- Other "Changemakers" who created outstanding meetings solutions for their firms included: Debbie Andersen, Senior Manager, Americas, Meetings & Conventions at Siemens Healthcare Diagnostics; Jeff Calmus, AVP, Conference & Event Planning at MetLife; Susan Lichtenstein, Director of Travel and Global Meeting Solutions at Cisco Systems Inc.; Donna Foppoli-Patrick, Manager, Group Meetings, Events, and Travel, Medtronic Inc.; Marybeth Roberts, Director of Global Meeting Management, Amgen; Tom Tolvé, Senior Manager, Meeting Operations, Novo Nordisk; Tracey Wilt, Manager, Global Travel & Meeting Management for Xerox; Alice Woychik, Director of Meeting Solutions at Novartis Pharmaceuticals Corporation.

Learn the full details of how these meetings executives enhanced their management programs by reading the full article in Corporate Meetings & Incentives!

And then there were others, singled out elsewhere, such as in Business Travel News, both for their outstanding contributions to their own companies and the industry at large, including:

- Debbie Dayton, Global Head of Travel Related Services at Deutsche Bank, who was named BTN's 2009 International Travel Manager of the Year. Debbie, along with VP and meetings program project leader Shawn Radek, made great strides last year consolidating and automating business and meetings travel processes worldwide. The bank, automated budgeting, requests for proposals (RFPs), reporting, reconciliation and data modules. In just one improvement, Deutsche Bank's automated budgeting now projects the total cost of an event, including transportation spending -- before the meeting is approved. Further, the bank stays on top of things by pre-loading average negotiated hotel rates, airfares, F&B costs and other metrics biannually.

- Cynthia Shumate, Executive Director of Global Travel and Meeting Services, Estee Lauder, who was featured in BTN's 2009 Large Market Benchmarking Report for creating a new SMMP. Cynthia's program now covers U.S. meetings -- about 12 large, annual gatherings of up to 350 attendees, plus thousands of smaller meetings for employee training and product launches. Expanding internationally is on the horizon. Among accomplishments, Shumate has centralized registration and sourcing of meetings, deployed a single meetings technology platform, created a central policy and launched a meetings charge card.

There are so many other meeting, procurement and travel executives that brought strategic meetings management improvements to their firms in 2009. In doing so, they elevated our whole industry. It's unfortunate that I can't mention them all -- because you'd be reading this post all day. But my sincerest appreciation for being leaders in our industry goes out to you all, even if you're not singled out here. You know who you are!

Let's continue the progress we're making in creating new, higher standards in indirect expense management for corporate meetings and events, and let's make 2010 another 'Year of the Meeting!'

Cloud Meetings Deserve Management, Too

Friday, December 18, 2009 by Kevin Iwamoto

Ever see yourself conducting business meetings on a cloud, yes, a cloud?

The growing trend of cloud computing, which enables companies to stop pouring resources into internal servers and instead run applications and databases on the web (accessible virtually from any computer), is helping organizations cut down on the need to travel. According to a recent article I came across, 34,000 municipal employees of the city of Los Angeles will now be using cloud-based Google Apps (e.g., Gmail, Google Docs and other collaborative programs) in place of software previously loaded on their internal servers.

If this sounds like it's getting too techie for a strategic meetings management post, let me quickly make the link to how this is going to affect the city's need for meetings. In the story, Randi Levin, Chief Technology Officer for the city, said that, by going with Google's suite, she "expects L.A. employees to benefit from instant messaging, video conferencing, and simultaneous review and editing of documents by multiple people."

Let's face it; the money tap is still twisted tight in this recession, and companies are looking every which way to avoid expenditures on "unnecessary" meetings, while still spending for critical face-to-face time with potential and current customers. So, now, in addition to virtual technology such as video conferencing, teleconferencing and TelePresence, organizations are turning to cloud-based apps, such as Google's, to help cut down on the need to travel for meetings.

OK, so now you can meet on the cloud, but regardless of the technology you use, meetings managers need to make sure they're incorporating these types of events into policy, for instance, addressing the circumstances for which they're appropriate. And, as I've said before here, like all events, it would be wise to have the strategy in place to measure a cloud conference's ROI.

Prague ACTE Notes: Most Companies Not Delaying Meetings Over H1N1 Virus

Tuesday, October 27, 2009 by Kevin Iwamoto

Getting a bit confused by mixed signals on the seriousness of the H1N1 flu virus (aka swine flu)? On the one hand, President Obama has declared a national emergency over the current rate of outbreaks, and more than 1,000 people in the U.S. have died from the virus.

Yet, so far, it doesn't seem like businesses are letting the threat affect travel.

From Prague, where I'm attending ACTE's Global Education Conference, the organization has released findings of a survey of 109 international companies. It found that 91% were not delaying planning meetings or conferences. Further, 96% said business travelers had not asked to put off trips during the flu season.

But this isn't to say that companies, meeting managers and event attendees, themselves, aren't concerned about the spread of the virus.

One way to address those concerns would be to create or update your company policy addressing how to handle issues like H1N1 and other potential emergency situations and to communicate those policies effectively to your employees and meeting attendees. For example, at our company, our head of HR e-mailed all employees and advised that if they did have flu symptoms, but felt they had to work, to carry on from home in order to prevent infecting fellow employees.

Key to making decisions about events and communicating with meeting attendees is having one meetings registration system that gives you visibility into all companywide events. That way, you can quickly assess potential situations and make decisions. Similarly, using one enterprise-wide online attendee management tool can give you the comprehensive data you need to locate people and make quick decisions.

For prevention tips, you can visit the Centers for Disease Control and Prevention.

New Forecast Suggests Luxury Bargains in 2010

Monday, October 19, 2009 by Kevin Iwamoto

Another forecast is out that predicts lower hotel prices in 2010. That's good news for meetings buyers. But getting to your event destination will be pricier.

A BTN story summarizes a new forecast by Advito (the travel management consulting arm of BCD Travel) that said airfares globally will rise 1-6% versus 2009 prices, including a 6% hike for North American economy-class trips.

An interesting point about the forecast, it warned that in 2010, elongated low-fare booking windows will shorten. What will that mean for meetings? Depending on how it all plays out, it may well be advisable for meeting managers to re-examine corporate policies and spell out or toughen language around allowable time windows for booking flights for events.

The forecast also notes that buyers will continue to see declining prices at hotels in major business travel markets, including the U.S., where average daily rates will fall just under 1% from 2009. Looks like the free-fall in rates may be close to hitting bottom.

Pointing out another opportunity for travel and meetings buyers, Advito says that, because luxury hotels have done so much discounting, the price premium between upscale, upper upscale and luxury "is actually less now than it was 18 months ago," said the firm's vice president of business solutions Bob Brindley, in BTN. "The discounting moved all of the tiers a little bit closer together and reduced the premium clients were willing to pay when they were moving from one tier to another."

Maybe it's time to examine whether you can broaden your scope of hotels to include more luxury properties that offer moderate pricing and good value. Now, with web-based sourcing, its a snap to compare RFP responses online and the results might surprise you.

Have you been able to negotiate better deals for events at high-end properties? If so, tell me about it.

Virtual Meetings & Your Carbon Footprint

Tuesday, October 13, 2009 by Kevin Iwamoto

I read a story in today's Toronto Globe & Mail that captures perfectly both sides of the coin when deciding to meet virtually versus face-to-face. Seems David Suzuki, a noted Canadian environmentalist, has given up plane travel to Australia -- where he's in much demand for speaking engagements -- because the trips leave a huge carbon footprint. Instead, he's been substituting with video presentations, and he'll soon install telepresence technology at his Vancouver-based foundation.

The story also talked about the growth of desktop video conferencing, the kind that runs on the web versus proprietary bandwidith. And a Gartner analyst noted that he "increasingly sees firms making video-conferences an option" within their travel booking systems, requiring travelers to justify why a face-to-face is necessary.

A Wall Street Journal article in July said that, in this recessionary economy, of all tech, only virtual tech is growing. A lot of companies have elected to leverage virtual meetings tech post-recession to continue saving on travel and meetings. So, if you haven’t investigated owning your company’s virtual technology strategy and/or policy creation, you should get to it. When the dust settles, you want to have virtual technology as part of your travel and meeting portfolio. Remember my concept of Enterprise Mobility? That's the new travel/meetings business you will be managing in the future.

I've frequently said that these virtual meeting tools are well suited for some type of events and, most importantly, should be managed within a company's overall strategic meetings management program. But I still believe that face-to-face events -- created with strong spending and policy guidelines -- are most rewarding for all involved, and good experiences at events produce great ROI.

Apparently, a lot of Mr. Suzuki's clients feel the same. Near the end of the Globe & Mail story, Suzuki, who gets hundreds of requests for conference appearances, said that when he instead suggests a presentation over video, 19 out of 20 times the travel request persists.

I'm interested in your feedback and insights on face-to-face versus virtual meetings. Please share!

Use These New Statistics to Counter Meetings Critics

Friday, September 18, 2009 by Kevin Iwamoto

A new study confirms what most of us in the business travel and meetings industry know deep in our bones: take away meetings travel and your business suffers.

The very in-depth study, commissioned by the United States Travel Association and the Destination and Travel Foundation, leaves little doubt that spending face-to-face time with clients will help your business stay profitable. The numbers are quite compelling -- and impressive. Here are some findings:

- each greenback invested in business travel, produces $12.50 in revenue and nearly $4 in profits
- eliminating business travel slashes 17% of profits within a year for the average U.S. business.

The study also noted that business and government travel last year supported 2.3 million jobs (1 million of which are directly related to meetings). And a 10% jump in business travel spending would contribute to a rise in the U.S. gross domestic product of between 1.5 percent and 2.8 percent (boy, could we use that right about now). With unemployment already hovering at 10%, I shudder at the thought of how further fall-offs in meetings travel could shrink the ranks of independent meeting planners, waiters/waitresses, maids, parking valets -- and the many people who rely on meetings to earn a living.

The study also provided some interesting statistics that underscored the importance of meetings. For example, sales-related meetings make up 34 percent of business travel spending, and internal meetings, conferences, and trade shows each represent about 10% of the average company's travel budget. The study also confirmed the value of actually touching base with clients, partners or prospectives (versus talking with them virtually): 85% of executives say Web meetings and teleconferences are less effective than in-person meetings with prospective customers. And another 63% say virtual meetings are less effective than in-person meetings with current customers. (For more insight into face-to-face vs. virtual, see my Sept. 3rd post.

So what to do with this information? Personally, every time I hear someone criticize meetings as "wasteful" or "unnecessary," I'm going to make it my business to cite at least one statistic from this study. It's hard to argue with a cold, hard number, and it does wonders for backing up your point. I urge you to do the same.

To read more on this study, check out The Beat, the business travel newsletter, which covered the story. Visit this link!

Balanced Meetings Policy Key to Enjoyable Face-to-Face Events

Thursday, September 10, 2009 by Kevin Iwamoto

I suppose that as long as the economy is topic #1 in the news, we'll continue to see more evidence of the value of virtual meetings versus face-to-face gatherings. Personally, I believe that there's a place at the table for all types of corporate events and mediums to conduct meetings. Generally speaking, I think that virtual meetings--which run the gamut from new Telepresence & Halo Room events where the A/V is in real-time and it feels as if all participants are sitting together, to simple web conferencing built around a shared presentation--are useful tools for internal employee gatherings and educational sessions. Face-to-face is best for getting together with current and prospective customers (see The Face-to-Face Advantage post), and for trade shows. That’s not to say that the above mentioned technologies haven’t been used effectively for in-person events either.

Surfing the web recently, though, I came across a press release from a maker of telepresence equipment. There was a quote in there from a client of theirs who said that, because of the meetings technology, the company was able to cut their business travel in half and save over 25,000 British Pounds per year. That’s remarkable in these days of barrel-scraping budgets! But what struck me more was another comment from the client on how video conferencing has improved the morale of employees with hectic travel schedules -- especially those with families that they must leave behind each time they pack their bags for another road trip. Video conferencing meant they could stay home more. Boy, can I personally relate!

Perhaps because of the focus on the economic downturn and the resulting paring of travel expenditures, there's not much talk these days about how to enhance the experience of meetings attendees while away from home. Totally tongue in cheek, I can only guess why: for one, the public criticism of meetings as wasteful, especially among companies receiving bailout money from the Troubled Asset Relief Program (see post). These days, who wants to even attempt to justify golf outings, extravagant entertainment and dinners at so-called luxurious venues?

But experts and studies confirm that the most effective face-to-face meetings strike a balance between work-related and downtime activities. Meetings can and should be both fun and productive; and your main tool for building balanced face-to-face events, with happy and productive attendees, is a strong well-defined meetings policy that's flexible when it needs to be.

A policy shouldn't be so draconian that it automatically rules out the "fun" in meetings. Let's say you have created a policy that says all internal meetings of 10 or more must be done virtually. You may find that'll force you into a corner someday, especially if one of those groups happen to be your company's top salespeople who work hard to hit great sales targets so they can be recognized and participate in an exclusive incentive trip. Putting a picture up of Pebble Beach or a fancy destination on a video conference call is just not going to cut it! It’s actually demoralizing -- not motivational and rewarding.

For your company's planners, there are other, more practical ways, too, to build attendee morale. For example, there’s an opportunity during the sourcing process when shopping for hotel amenities. They can RFP for free health clubs or spas that attendees can use during off hours. Picking reasonably priced but interesting or quirky venues for off-site entertainment is another tactic.

However, your meetings spending policy is your essential tool for creating enjoyable but fiscally responsible outings and special events. Read more here about creating an effective meetings policy that still leaves room for fun. And, if you have an example of a well-balanced Meetings & Events policy, please share some generic examples of key features!

The Face-to-Face Advantage

Thursday, September 3, 2009 by Kevin Iwamoto

Picking up subtle nuances in communication. Building lasting bonds. Enjoying another person's company.

If you've ever had a successful face-to-face meeting, these are just some of the benefits you've probably come away with. But in these budget-crunching times, when virtual meetings are growing more popular, for example, web conferencing, there's a new study out that confirms what a lot of people already know: face-to-face meetings are most rewarding. According to a Forbes Insights study of 760 business executives, "Business Meetings: The Case for Face-to-Face," more than 84% polled said that they still preferred in-person contact to virtual meetings. Of those, 85% said in-person meetings helped them build stronger, more meaningful relationships, while about three-quarters polled relished both the "ability to read another person" and the superior social interaction.

Also, at least 80% of executives liked face-to-face events because they felt interaction with co-workers is essential for effective teamwork, and downtime at in-person conferences built stronger client bonds.

I can personally attest to all of the above benefits. I've experienced them at my most rewarding in-person meetings -- whether they were gatherings with current or potential customers, meeting industry colleagues (such as at conferences and conventions) or sit-downs with my boss or fellow employees. Now, if you're a meetings manager that oversees hundreds of events every year, imagine the satisfaction--and the resulting productivity--you're creating for your attendees and your company.

But this survey by no means discounts the value of web-, tele- or video-conferencing. For certain types of events, these technologies are growing in usage, and I think it's very important that meetings managers should incorporate them into their overall strategic meetings management program, in order to competitively source for services and control costs, among other benefits. (Read more about this strategy here. In fact, in the Forbes survey, 59% of executives interviewed said that their use of "technology-driven meetings" increased during the recession -- in part due to lower costs and greater reliability of the technology. Savings were important to those who like virtual meetings, as 92% cited paring event times and 88% valued trimming budgets.

The most advanced virtual technologies like Cisco’s Telepresence and HP’s Halo Room have been the only industries to grow about 30% year over year during this recession, according to media reports. That's a clear indication that companies have elected to invest in this technology to perpetuate their costs savings, and that they plan on continuing to remain fiscally responsible even after this recession is over.

On the downside, there are attentiveness issues to less sophisticated virtual meetings, mostly teleconferencing, for example, the insane amount of multi-tasking that goes on preventing full focus on the meeting. The Forbes survey confirms: 58% frequently surf the web, check their email, read unrelated materials and handle other ancillary work during digital meetings. Let’s be honest, how many of you are guilty of playing Solitaire, Freecell and other games during a teleconference? I’ve even heard dishes being washed and the occasional toilet flushing for people who forgot to mute their phones, plus a variety of animal noises in the background. None of the above would be happening in a face-to-face meeting!

But whether your company is having more virtual or face-to-face meetings these days, it's important to note that both types of events -- managed properly via enforcement of spending rules, centralized sourcing, automated attendee registration and other best practices -- can produce savings, great ROI, tighten control over costs and build better leverage with suppliers. As all of the above are part of “Enterprise Mobility”, a concept of travel and meetings that I’ve been evangelizing around the world during speaking opportunities or customer forums, the management of all virtual technologies belong in the portfolio of company Travel & Meetings departments.

I recommend reading more details from this survey here. Perhaps this information can help you make decisions about when to go virtual and when in-person events are best. Good reading!

Manage Your Virtual Meetings

Friday, July 24, 2009 by Kevin Iwamoto

To save a buck in this new economy, a lot of companies are stepping up use of web- and video-conferencing for certain types of meetings. I took part in a recent survey by the Grassroots Research group that found respondents expected an average 22% drop in meetings attendees this year. One travel manager from France that was polled cut corporate travel spend by 30%, due in part to increased use of videoconferencing. Wow!

And then there's the growing popularity of the "hybrid" event, in which a company brings together separate groups of attendees -- let's say, one meeting in San Francisco and another at a New York event -- remotely via "telepresence" technology centers deployed at the hotels. The high-end, high-resolution video conferencing systems with multiple, giant TV screens show life-size images and deliver quality audio. And so it seems a no-brainer for companies who want to save on travel but still connect employees and clients. In fact, a recent USA Today article said Cisco, which uses its own equipment, "cut annualized travel expenses by two-thirds in its most recent quarter, from $750 million to $250 million." An even bigger wow!

I think all of this is wonderful -- where it makes sense. Lest we get swept away by the promise of digital meetings, let's consider: web, videoconferencing or telepresence events may be great for bringing together employees for seminars or sales meetings. But there's no substitute for face-to-face networking and educational opportunities, especially for larger gatherings such as conferences, as well as for getting together with your best customers. And if we're talking incentive events, I can't imagine that your top salespeople would want to pass up a chance to participate in a dream incentive trip to mutually celebrate and honor everyone’s success in favor of a "Congratulations, you did great," from your CEO via a telepresence screen. In short, virtual technology can cut costs, but nothing builds teamwork and relationships like face-to-face meetings and events.

More importantly, virtual meetings, when and where they make sense, need to be managed as part of your overall strategic meetings management program (SMMP). Let's take sourcing, as an example. As more and more hotels adopt telepresence technology, it’s important to shop around for the best pricing and support services, just as it is to competitively source for room rates and food and beverage, via a centralized RFP process. How else to compare what's out there and make the right buying decision?

Consider, too, whether you're properly measuring the ROI of virtual meetings, as you would other types of events in your SMMP.

Virtual meetings are a growing phenomenon. According to a Wall Street Journal article comparing HP’s Halo Room and Cisco’s TelePresence sales, it is the only real growth technology during these tough economic times, as companies look to reduce travel costs using this expensive but effective technology. Virtual technology usage is helping many meeting managers meet strict budget cut mandates, and when the recession lifts, I get the sense that companies will still rely on them for certain types of events. But it's critical to manage them strategically -- alongside all your other events.

Trendsetters take SMMPs Global

Wednesday, May 27, 2009 by Kevin Iwamoto

Just over a week ago, I travelled to Paris for the NBTA & Paragon Partners “Crossroads to Paris” conference. It was great to see so much focus on meetings management at this event. You can definitely see that meetings spend management is really starting to catch on across the pond. Over the past three months, I’ve been doing a series of EMEA customer roundtables and am about to leave for yet another road show in a few weeks, this time to Brussels, Paris, London and Munich. Honestly speaking, if you are a travel and/or meetings manager and are faced with an increase in 2009 cost savings target goals, despite travel freezes or greatly diminished travel budgets, the only way you would even get close to meeting or exceeding your 2009 savings goals is by consolidating your meetings.

Of course whether a company is located here in the U.S., Canada or in Europe, the hottest topic today is building a global meetings program. There are quite a number of travel and meeting managers who are charting new territory and paving the way.

A good example of this was one presentation I attended led by Cécile Drévillon, Director, Meetings & Events EMEA, Carlson Wagonlit Travel and Tracey Wilt, Manager, Global Travel & Meetings Management, Xerox Corporation.

Tracey showed how Xerox has achieved significant savings with its global SMMP. Xerox began in 2000 by centralizing all of its registration activity and now has a full SMMP that it has deployed across key countries and regions to create a centralized process for all of its global activity. A key enabler is having the centralized online meetings portal where meetings requests can be submitted from anywhere in the world. A centralized process allows for supplier leveraging, policy control, risk management, and ease of traveler tracking. It has also allowed Xerox to focus on its strategy for incorporating virtual meetings. Tracey and her team are blazing the trail and she’s sharing a lot of their lessons learned through her work with the NBTA, making it easier for the rest of us.

Planners, Attendees 'Tweet" and Embrace Social Media Tools

Tuesday, April 7, 2009 by Kevin Iwamoto

Twitter and tweets, twitter tags. If you're not familiar with the world of Web social networks, these terms might sound like script notes from a Sylvester and Tweety Bird cartoon. But actually, Twitter, is a free micro-blogging service that lets people keep in touch through the exchange of quick, frequent answers to one simple question: "What are you doing?"

What does this have to do with strategic meetings management or corporate event planning? At meetings, people are doing some pretty interesting things with social media technology -- and it's having an immediate, dramatic effect on content. For example, planners are not only using Twitter to update attendees on last-minute agenda changes, but some are also encouraging attendees to use the social media tool to interact real-time during sessions and panels. An article I ran across on the Web, "Six Ways to Utilize Twitter at Your Next Conference," discussed how attendees at a high-tech industry conference were given a Twitter tag number to exchange live comments (limited to 140 characters) about the session they were attending. Between themselves, attendees formed the best, most pertinent questions for the panel on stage.

Attendees are also blogging about their experiences--some not all positive--at trade shows and association conferences. And organizers are paying attention in order to fine-tune meetings and keep up with changing tastes.

Seems to me that the meetings industry is embracing the Web like never before -- from using StarCite tech to create registration sites and post meeting content, to exchanging "tweet" messages about panels in real-time. Have you used any new social media tools to get better feedback from attendees? I’d love to hear about your experiences here!

If You Must Cancel Your Meeting, Sell It!

Friday, March 6, 2009 by Kevin Iwamoto

I've been blogging a lot about companies canceling events because they don't want to appear as if they're being frivolous with their firms' indirect spending. And I've stressed that exercising strategic meetings management -- rather than canceling meetings outright -- is the best way to ensure smart spending on corporate event planning.

But if an organization must cancel, let's say for lackluster attendee registration, it can even strategically manage that! More and more, I'm speaking with meeting managers who are turning to online meeting software to source and sell existing cancelled space at sale prices. And the supply is there waiting. According to Meeting Professionals International’s FutureWatch 2009 study, organizations have already cancelled an average of 3.4 meetings for 2009, representing 7% of all scheduled activity.

If you're buying, online marketplaces for cancelled space could particularly benefit you if you're guarding your meeting budget a bit closer these days and booking events shorter term to find bargains. And, if you're selling, you can market your hotel space and rooms to companies all over the world – increasing your chance of finding a buyer. StarCite's own Resale Center lets customers do both, and is even accessed by major meeting planning companies themselves searching for good deals. With everybody’s budgets under the microscope, it’s good to know that, if you absolutely have to cancel a meeting, it doesn’t have to be a total loss.