Increased Efficiency in the Uncertain Economy

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CVBs to keep downturn practices in place once the economy is on better footing.

With news of rising unemployment figures, budget cutbacks and financial losses, large corporations and small businesses alike are currently operating in an understandably cautious mode. And the meeting and event industry faces its own set of challenges in this economic climate. Tightened budgets have forced some meeting professionals to create shorter events for a reduced number of attendees. Heavily publicized corporate scandals have, in some cases, created a knee-jerk reaction against meetings, as expense reports are placed under a suspicious scrutiny. Meanwhile, some argue that teleconferencing, Web-based seminars and e-meetings will make the need for physical events virtually obsolete.

Undoubtedly, these are valid concerns. Many meeting professionals, however, maintain that face-to-face interaction and hands-on marketing are as imperative and attainable today as ever. Consequently, CVBs are not looking to replace the physical meeting. Many organizations, rather, are making their services more efficient and effective and seeing a subsequent growth in business. After all, challenging times have historically provided stimulus for periods of great evolution and innovation.

I spoke with members of CVBs in various cities and asked them what, if any, practices their organization has implemented to combat the effects of the economic downturn, whether results have been noticeable and if there were plans to continue down the same path once the economy stabilized.

The responses I received time and time again indicated CVBs are refining marketing practices and fine-tuning the commitment to customer service. By delivering its message to the potential client-base in the most efficient manner possible, CVBs aim to free up resources and surpass the expectations of its clients.

For example, Lauren Jarrell, director of communications for Atlanta CVB told me of a campaign her organization called Atlanta Means Business.

“We executed a sales blitz to education meeting planners on the value and benefits of meeting in Atlanta,” she said.

Jarrell explained that e-mail communications regarding Atlanta’s meeting industry were sent out on a bimonthly basis, which has resulted in three confirmed and two tentative meetings so far.

The Atlanta CVB launched another campaign called “Keep Your Meetings in Georgia,” approaching Atlanta businesses and asking them to play host to their corporate events locally this year. The campaign aims to provide benefits to the client by way of minimized transportation and shipping costs, while offering peace of mind that the hometown economy will receive some much-appreciated stimulation as well. The response has been overwhelmingly positive: Coca-Cola Enterprises, Duane Morris Partners and Arby’s National Franchise answered the call and booked conferences in Atlanta this year. The Atlanta CVB, though, has not yet made any formal decision how long the organization will continue to execute these particular campaigns.

California’s Sacramento CVB took the current economic environment as an opportunity to identify new connections while strengthening relations within the city’s hospitality industry and greater community.

“This has resulted in a more cohesive community approach to supporting our meetings clients’ efforts,” said Paul Miller, director of convention sales for the Sacramento CVB.

Miller admits that his organization has tightened its belt behind the scenes. In doing so, the Sacramento CVB prioritized its level of commitment and resources to conference organizers’ logistical and promotional efforts. The organizations that the CVB supports are likely to have experienced a pinch from the downturn as well, so clients are eager to streamline their events without sacrificing the meeting’s impact.

Miller anticipates that the region’s increased solidarity will remain in-tact as the economy rebounds.

“As many have said, out of this economy’s adversity has come a more focused attention to our customers and the key roles we and our partners can play in supporting our customers’ priorities,” Miller said.

Boulder’s CVB in Colorado has also taken this opportunity to tweak its marketing operation and join forces with adjacent industries in its community. Partnering with the local hotel industry, the city analyzed data of previous visiting groups. This allowed them to concentrate sales efforts on the most effective market segments and geographic areas for their destination. The organization reports that positive results are already apparent in the company’s business.

“We have seen an increase in Web site visits to our meetings page, increase in RFP activity for the second quarter of 2009 and increased room nights generated over 2008 for the same period,” said Mary Ann Mahoney, executive director of sales for the Boulder CVB.

Mahoney indicated that the practices would remain in place to ensure that the Boulder CVB effectively utilizes its budget while reaching the most likely and profitable customers for its city’s convention and tourism industry.

European destination cities are adapting to the change in market as well, and some destinations have seen meeting industry growth despite the pervasive hardship.

While many destination cities have put expansion and renovation projects on hold, Serbia’s capital city, Belgrade, is an example of a city taking the opposite route. The city recently spent US$1.3 billion in improvements to infrastructure and construction of new hotels. The increased room number and renovations have already seen a return, as the city recently played host to large groups of foreign visitors with events including the Eurovision Song Contest and the 2009 University Olympic Games.

SEAN KIRKPATRICK is a freelance writer based in Dallas.

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