Meetings constituents fight negative perception.
Following reports of recently bailed out financial companies holding big meetings and events, the meetings and incentive travel business is under attack—by the general media, the public, and consequently the government—like never before.
As a result, the industry has mobilized an unprecedented, all-hands-on-deck response with a coalition of industry associations and corporations to create legislative and public relations campaigns, as well as unique research, intended to show the importance of meetings and business travel. In addition, individual organizations and members of the field have developed their own retorts.
“Sometimes, a crisis like this creates a call to action,” said Christine Duffy, president and CEO of Maritz Travel, and a key driving force behind the coalition that, at press time, included Meeting Professionals International, the American Hotel & Lodging Association, International Association of Exhibitions and Events, Professional Convention Management Association, Destination Marketing Association International, Site (formerly the Society of Incentive & Travel Executives), and U.S. Travel Association, as well as some meetings and travel management firms. At press time in late February, Duffy et al intended to ask hoteliers to come aboard, too.
In early February, the Treasury Department proposed a “rule” that all companies that got financial assistance from the government, under the Troubled Asset Relief Program (TARP), be “required to publish policies online” for “luxury” or “excessive” expenditures, including meetings.
Later, an amendment proposed in the Senate—and passed as part of president Barack Obama’s stimulus package—made any requirement to publish travel policies retroactive for firms that received financial assistance, and told the Treasury Department to define “luxury” and “excessive.”
“This wasn’t a knee-jerk reaction [by Washington], it was a body shake,” said industry attorney Jonathan Howe.
In a decisive response to the legislation, the industry coalition proposed guidelines for best practices when TARP recipients are planning meetings, events, and incentive travel (available at www.ustravel.org).
“Many companies are saying, ‘I don’t want to risk becoming the poster child [for bad Corporate America meeting on taxpayer money], so we have to remove the risk and make it safe to go in the water again,” said Geoff Freeman, senior VP of public affairs at the U.S. Travel Association, the coalition’s lead lobbyist. “This will help ensure that.”
“Companies should be embracing these standards, that’s what’s going to satisfy Congress and taxpayers,” he said. “They want you to bring in revenue and get off the taxpayers’ dole.”
The coalition also created sample letters (archived on the U.S. Travel Association site) for industry constituents to send their congresspeople and local media explaining why meetings and travel must continue. (For the response to the industry attacks by non-coalition associations, go to www.MeetingNews.com).
And, the group plans to take a great deal more action. The U.S. Travel Association is conducting a survey of chief marketing officers and front-line sales executives, to be released this month, on the value of business travel and meetings. It also has partnered with an economics firm to study the return on investment of business travel; that research will be finished by early summer. Plus, the coalition is lining up funding for an economic impact study, due out in about a year.
Other ideas being kicked around by coalition members: talking to the national conferences of U.S. mayors and governors; having a well-known business leader or politician (Jack Welch, Michael Bloomberg, and Rudolph Giuliani have been bandied about) represent the industry in public relations efforts; and, as suggested by an MPI member, emphasizing that meetings are perhaps the largest provider of adult education.
Beleaguered destinations also are stepping up. Following comments by president Obama discouraging corporate travel at taxpayers’ expense (i.e., using TARP money), Las Vegas mayor Oscar Goodman sent 1600 Pennsylvania Avenue a letter that said the president’s remarks harm the meetings-dependent city. Meanwhile, the Las Vegas Convention & Visitors Authority has conducted an informal study of the city’s losses due to canceled events. As of Feb. 26, for about the previous 30 days, the city was down approximately 30,000 room nights and $20 million in non-gaming revenue, said a spokesman.
Former MPI president David Kliman, now an industry consultant, oversaw a letter-writing effort by MPI members in California—home to 10 percent of all MPI members—by chapters statewide to their senators. Internet marketing guru Jim Grillo, founder of Hereschicago.com, compiled several U.S. Travel Association statistics on meetings’ economic impact, and sent the data in a newsletter to 9,000 industry professionals.
Industry attorney Josh Grimes had suggestions for independent planners and suppliers. “If I were advising a third-party planner, I’d say they need to be helping customers be comfortable with their events,” he said. “They can say, ‘You still can go to Las Vegas, but you have to have your budget approved, a travel policy, and an ROI.’”
And, for hotels and CVBs, Grimes said, “I would create a mechanism to deal with TARP guidelines; appoint someone to get customers’ travel policies, to make sure they’re adhered to.”
It may be onerous, but the alternatives are worse, Grimes noted. “In this environment, can hotels afford to have uncomfortable customers?”
Originally published March 9, 2009