Financial Services Cos. Leverage As Mtg. Spending Grows

Financial services companies this year are holding substantially more meetings than in prior years and, in some cases, are springing for more upscale resort locations. Even as purse strings are loosened, though, the cost-conscious attitudes acquired during leaner times remain firmly in place.

"The volume of meetings among my financial services clients is way up, especially since July," said independent meeting planner Mary Young, president of M.Y. Events in Tempe, Ariz. "However, they are keeping a tight rein on expenses. There is not a return to the spending patterns of a few years ago."

In addition to the improving economic conditions, Young said, organizational changes in many companies are prompting more meetings. "A lot of these companies have shifted people around, brought in new department heads and so there is a need to get together," she added. "A lot of times we're bringing people together who are meeting face to face for the first time."

The expansion of many financial services companies also is triggering more meetings, said Peter Klebanow, president of Ultramar Travel Management in New York. "Financial services companies are experiencing a lot of growth and are coming back from a depressed period, so they are cautiously re-hiring people," he said. "This means more meetings are needed for training."

Young said her clients primarily are concerned with keeping meetings as short and productive as possible. "There's less demand for recreation or non-meeting activities," she said. "It's all about getting down to business, and there is more concern with effective learning. Meetings usually are two nights and three days, while a few years ago they were usually four days with a golf tournament included."

Lori Hedrick, meeting and event planner for Wachovia Corp. in Winston-Salem, N.C., reported that meetings volume at her company more than doubled this year from 2003 levels. "Partly it's because of the strong economy, and partly because our company is growing so fast," she said. At the same time, Wachovia remains vigilant about keeping spending under control. "We're doing a lot of meetings in Orlando because of the low airfares there. We're now looking into Philadelphia for this same reason," Hedrick said. "While we still incorporate an activity into a meeting, such as golf, the attendee now has to pay for it."

Klebanow said his company's financial services clients, which include Blackstone Corp. and Allied Capital, expanded their meetings volume this year and are willing to pay for top-quality venues, including upscale resorts. However, he said, clients increasingly are savvy about meeting expenditures and want to be assured they are getting the best value possible.

"There is pressure from management to stretch travel dollars and make smart purchasing decisions," according to Klebanow. "Companies are asking a lot more questions of us. They want to compare rates and make sure they are getting the best leverage. For example, they'll ask if holding four meetings in one location will get them a better deal."

According to Dave Sonricker, senior vice president and general manager of World Travel Meetings & Incentives in Chicago, financial services companies tend to be aggressive in seeking value. "In fact, financial services companies really are leading the way toward meetings consolidation and maximizing leverage," he said.

Klebanow said his clients, while cost-conscious, increasingly are choosing to meet at resort properties and, unlike Young's clients, are eager to include recreational activities in the programs. "There's a recognition that golf and other activities are good for teambuilding and building relationships," he said. Still, Klebanow said, many clients remain concerned with perception issues and will not choose a destination that could appear to be frivolous. "Some firms still will not go to Las Vegas or Orlando," he said. "They will go to a resort, but they want a sophisticated destination."

TD Waterhouse is among the financial services companies meeting more often and using more resort locations and activities, according to vice president of conferences and events Christy Bareijsza. "Another big change is that our national meetings have become more family-oriented, so we're offering more spousal programs and children's activities," she said. "Since 9/11, people have become more concerned with having their families with them when they travel."

Though financial advisors who attend TD Waterhouse's regional and national meetings pay their own way, attendance significantly is higher this year, according to Bareijsza. This year's annual national meeting at Disney World attracted 1,100 attendees—200 more than in 2003—while a recent regional meeting in Philadelphia drew 389 attendees, up 150 from last year.

Another major trend at TD Waterhouse this year is to hold more meetings in New York, where the company is based. "People had been concerned about flying here, so we did more meetings outside of the city where people could drive," Bareijsza said. "We're also using hotels again in situations where we were using our own internal meetings facilities."

Mick Lee, New York-based Credit Suisse First Boston managing director of internal client services, said overall meetings spend likely will increase in 2005. "Orchestrating signature events and maintaining a focus on our clients will continue to be crucial to my firm in 2005," she said, but "it is important that we balance the improving economy with cost containment and ensure that we are extremely diligent about how we spend our event dollars."