Corps. Seek Higher Exec. Board Meeting Service Levels

Most companies still remain conscientious about the costs of executive board meetings, though both corporate demand and the prices hotels charge for them are on the rise. Yet, many firms are finding ways to heighten the level of amenities offered to their most senior executives.

"Businesses are looking at executive meetings differently now compared to before 2002," said Michael Mason, senior vice president of sales for Gaylord Hotels, headquartered in Nashville. "Instead of booking a high-end executive meeting at the most expensive hotel, groups are coming to places that are still luxurious but not as extravagant."

This sentiment is echoed across the spectrum of corporate meeting travel. Thorsten Meier, managing director of Leading Group Sales, a division of the luxury hospitality organization Leading Hotels of the World, said though revenue and average room rates are up significantly, spending patterns are different.

"In general, group business has become extremely price-sensitive," Meier noted. "Having said that, we realize on a daily basis that our clients are still willing to spend money if the value is good."

Corporations expect more productivity during business meetings, and demands are reflecting that.

Gary Grant, director of sales and marketing at the Evanston, Ill.-based Hotel Orrington, has responded to the demand for technology with a $34 million renovation. The property's new ninth floor was completed this March, and meets the standards of the International Association of Conference Centers, boasting such amenities as soundproof walls, Webcams, and ergonomic leather chairs. "We wanted to do something different than other hotels in the area," Grant said of the 12,000-sq.-ft. space.

The renovation's aim, he continued, was to attract more productive group attendees who otherwise would consider nearby Chicago, a location he believes is more apt to inspire the desire for leisure time. "People are watching their money, and they want to make sure employees are productive," he said.

For Bryan Davis, director of sales and marketing at the Grand Hyatt DFW, located at the Dallas/Fort Worth International Airport, state-of-the-art technology translates to efficiency for the customer. The hotel, which opened July 1 and is connected directly to the airport, prints boarding passes in its lobby and has a Smart Parking Technology System in the garage, where, upon entering, a computer tells customers where they can find a spot in the 8,100-space lot.

"It's a new dynamic," Davis said. "People fly in, have meetings and fly out. It saves so much time and time has become more important."

This need directly correlates with the last-minute meetings many hotels are reporting. "Short-notice business has increased tremendously," Meier said. "Our clients sometimes call us with a meeting request that will take place in 72 hours' time. It's a nice challenge."

Grant said he's also aware of the shorter lead-time trend, noting that many clients this year have only booked 30 to 60 days in advance.

The shorter lead time, however, does not necessarily mean stricter negotiations of cancellation and attrition clauses. "We give a little bit of slippage," Grant said. "We're not in a position to be firing clients, but it needs to be reasonable. We have a perishable product—when rooms are unoccupied, that hurts us."

Gaylord Hotels' Mason said the chain now offers Celebrity Services, which cater to VIP attendees' needs at executive meetings. With this option, Gaylord will provide transportation, favorite magazines, books, movies and foods all on request, and will schedule entertainment, shopping excursions and other activities and services for spouses and families that opt for the Celebrity Service.

"This is just shy of a full butler-style service," he said. "Another way we cater to executive meetings is through specially designed menus offering high-end, contemporary recipes. By the growth we've seen in this area, this approach is definitely working." Mason reported an "unprecedented" 60 percent growth in the executive meetings segment during the past two years.