"Stay-Cations" for Businesses

Hospitality Net published an article by David M. Brudney of ISHC citing staggering statistics in regards to the cancellations of hotel-based meetings and loss of associated RFB revenues. He also reminds us of the ensuing, "big picture" decline of overall lodging occupancy and revenues.

While I agree with the basic premise of the "solution" Brudney suggests - "don't give up trying to book corporate meetings" - I do not agree that conventional strategies and tactics (no pun intended) will result in the desired outcome.

Talking points (cited in the article) such as "meetings and events drive business growth" and even "revenues generated...help establish travel as part of the (economic) recovery" do not compellingly outweigh contrasting RISKS such as the negative PR and potential government scrutiny that may result if businesses spend money on travel that may not be crucial to their survival.

So what's the middle ground? How can businesses continue with off-site meetings and events and how can hotels and meeting planners profitably accommodate them (pun intended) in spite of reduced business travel?

Solution: The Business "Stay-Cation."

Most major markets (let's say the top 50 in the US) have hotel and resort properties with perfectly capable meeting, event, dining, lifestyle, entertainment, etc. facilities within their own locales, or at "worst" within a 1-3 hour driving distance.

Further, there are wonderful meeting and event planners within businesses' own markets or regions who can prosper from "local" contracts to help produce hotel-based meetings and events.

If I were hotels, I would show some "local love" --- and start contacting prospects based within 150-200 miles of their properties.

What are the some of the initial selling points of this strategy?

• No cost of air travel (sorry airlines)
• Significantly smaller carbon footprint than air travel (and even smaller with carpooling)
• Donation of % of meeting/event revenues to local preferred charit(ies) of businesses
• Room deals
• Amenity deals (use of fitness, spa, golf, etc. offerings)
• Preferred access, seating, etc. to on-property restaurant/bar/lounge offerings
• Preferred access, seating, etc. to local, off-property restaurant/bar/lounge offerings
• Gifts from the hotel itself - certificates, products, etc.

Furthermore, and as I've asserted on many occasions, the presence, consistency and relevance of ongoing "experiential" offerings by hotels will help INCREASE REVENUES before, during and after said local meetings. Hotels may not be able to bounce "locals" back to stay in the rooms, but they can bounce locals back for dinner, drinks, a haircut, massage, work out, etc.

Brudney says hotel executive, management and sales leadership cannot choose to "sit it out" and wait for the market to turn. Agreed. I also agree that traveling is fun and I imagine many businesses would prefer off-site meetings in a more exotic location than their own community.

Having said that, the world is what it is - at least for now. Recession. Swine Flu. Etc. It's time to embrace change. A better game plan is needed - one that better positions hotels and meeting planners for long-term "victory." That plan may just be based under their own roofs and in their own backyards.

Marc-Portugal

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