Small Meetings Data Elusive, But Capturing It Is Lucrative - Business Travel News

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Small Meetings Data Elusive, But Capturing It Is Lucrative

August 27, 2010 - 10:05 PM ET

By Michael B. Baker

Getting a handle on small meetings remains a challenge even for mature travel programs, though companies that tackle them stand to find significant savings in their overall meetings and travel spending levels, according to a panel at the National Business Travel Association International Convention and Expedition in Houston this month.

Small meetings represent the lion's share of events for many companies, with about 86 percent of meetings having fewer than 100 attendees, said NBTA groups and meetings committee vice chair and StarCite vice president of business development Linda McNairy. Many companies, however, still can't quantify small meetings within their company, she said.

"A lot of companies still push it off and aren't sure what to do with it," McNairy said.

Some companies also have been reluctant to devote energy and resources to controlling those meetings because they don't see it as a worthy pursuit. "Some have said the return on investment isn't enough for that particular organization," said Charlene Rabideau, senior vice president of account management and operations for BCD Meetings and Incentives.

A large portion of these meetings, however, often are planned by administrators, not travel managers or meeting planners, who might be unaware of procedures to best handle the meetings, said Renee Epple, vice president of global innovations for American Express Business Travel.

"It really is a notion of this is unmanaged spend, and it's a worthy cause to try to get our arms around them," she said.

Marriott International vice president of global sales intermediaries Julius Robinson said inexperienced planners often do not realize obligations when they are signing contracts and are surprised when having to deal with cancellation and attrition issues that arise later.

Those buyers who have targeted small meetings reported significant savings from their efforts. Tim Bone, director of union conventions, events, meetings and travel for Service Employees International Union, said his organization recently turned its focus to small meetings. Prior to that, the meetings often were booked ad hoc by administrators, through vendors with which SEIU did not have negotiated agreements or through improper channels.

Using data from purchasing cards, invoices and the expense reporting tool, Bone aggregated information to show senior management the cost and importance of small meetings.

"We had the policy rewritten that everything has to flow through the meetings department," Bone said. "Catching data is easy because of the expense tool, and the cost associated with those meetings are up to the departments' budgets."

Bone chose an outsourced model to handle small meetings, working through planners employed by StarCite. Individual administrators who want to keep control of small meetings can still do so as long as they go through the proper channels, Bone said.

"We have an engine that can help you source and book, and you can control that yourself or use external meeting planners," Bone said. "We're now able to capture what we were not tracking."

SEIU's average savings on meetings ranges between 20 and 30 percent, Bone said.

Marriott's Robinson said one challenge with small meetings is that planners often blanket multiple hotels with complicated requests for proposals. "Hotels receive hundreds of thousands of leads each year, so if you're sending out a lead to 50 hotels, that will take a lot longer to process," he said. "You have to figure out how to create the right balance and create enough information to get a lead response."

Siemens director of event management services Bobby Badalamenti said her company has addressed small meetings with an RFP designed specifically for them, with specific choices pre-negotiated for planners. "When you have a preferred supplier relationship, and they work with you, it's easy to do," she said.

Robinson said many of the obstacles that come from managing small meetings stem from buyers and planners not working with their preferred suppliers.

"It's like if a company was designing a car but not talking to all the different people who make the parts," Robinson said. "If you know your objectives, we can help you meet them." 

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