Agencies Continue To Play Limited Role In Biz Meetings

Meeting professionals hire agency planners to manage wide-ranging logistical tasks such as ground transportation, registration and on-site meeting management, but do so sparingly.

Whether motivated by a need to tighten the operating budget or to maintain control, most of the 219 corporate planners answering the Business Travel News meetings monitor survey--more than 68 percent--indicated that all tasks except group air bookings were conducted without an agent. Of those planners who did use an agent over the last year, 44 percent said they "occasionally handled specific meetings related tasks."

Despite the monumental efforts agencies have made to extend their reach into the corporate meetings market, and the progress many have made in attracting new consolidation business (BTN, March 17), it appears that many organizations still believe a hands-on approach is best to guarantee results for sales gatherings, board meetings and incentive programs.

"We are always looking for ways to save the members money--and agencies can add significantly to the annual budget," said Chris Pruitt, department head of meetings and expositions for the American Chemistry Society, based in Washington, D.C.

"We have an in-house department of 18 and so far this year, the only time we've relied on an agency for meeting planning is in the case of an upcoming conference in Mexico."

Pruitt explained that she concluded that in the case of the Mexican conference, a locally based vendor would handle arrangements more efficiently and with an insider's clout.

"But for the typical meeting we're setting up domestically, it makes sense for us to take on most responsibilities in house. We have an association that is willing to pay full-time salaries for employees to get our meetings planned."

Agreeing that a hands-on approach is often best--although for almost opposing reasons, is Asoka Ganhewa, an international meeting planner based in Gastonia, N.C. His cautionary tale? Relying on outsiders to make arrangements in international locations can be hazardous to a program's health.

"I recently did three weeks worth of legwork to plan a trip to Santiago, Chile. I called the travel agent I was working with at the time and asked for fares. She quoted me ticket prices to Santiago, California. That really discouraged me from entrusting them with any additional responsibility concerning the group program," Ganhewa related.

His import and tour operations business finds him planning trips to exotic locales that include Singapore, Madagascar and Sri Lanka.

"I use a wide array of vendors to get the arrangements made. I've used American Express to handle some air bookings and, in a few cases, to make some arrangements, but since my destinations are in Asia, Australia and the Far East, I also tend to rely on chartered flights, which I arrange myself."

Of the 30 meetings he handles annually, Ganhewa makes arrangements for 90 percent. "I work with most of the convention and visitors bureaus, ground transportation and hotels. Because I've been in the business for 14 years, I have many contacts and a sound working knowledge of all these destinations."

When he does need outside assistance--typically in the case of complicated air arrangements for that rare large group that he handles--Ganhewa makes use of a variety of local agencies, preferring to "shop around rather than committing my business to a single company." At $3.5 million, Ganhewa believes his company is right on the cusp of being perceived as a valuable piece of business versus being almost too small to sustain attention.

But even midsized and large corporations prefer to partner with agencies rather than letting them run the entire operation. Of those planners polled, about 24 percent indicated that they had agency personnel "frequently handle specific meetings-related tasks but not performing full-service planning." Only 20 percent said agencies were a primary planning source for small meetings; while 18.5 percent said they used them for large gatherings.

Jan Gordon, vice president meetings and special services, Financial Network Investment Corp. in Torrance, Calif., said she recently ditched a large agency because they weren't flexible enough to fulfill the variety of reporting and onsite management--particularly registration--tasks required to service her business. "Now we use Olsen Travel for registration, transportation and billing and they are extremely competent. We're really happy with the results."

Gordon said the network of independent financial consultants typically participates in 30 meetings with prospective clients annually. "Of those, the agency handles the meetings with 50 attendees or greater." But the company is about to become a wholly owned subsidiary of Aetna's retirement services division, so she sees an onslaught of meetings-related activity in the next few months. "In an agency, I look for somebody who can customize their strengths to meet my needs. That's what a successful partnership is all about."

Of those companies who do opt for planning services, 57 percent rely on agencies to negotiate contracts, while 36 percent hire them for on-site staffing. About 34 percent handle site inspections and event planning, respectively. About 11 percent who rely on agencies said they do so for preparing and analyzing budgets. About 16.2 percent of those polled said their involvement with agencies would increase over the next year.

Joann Benthusen is a seasoned planner at Sage Products Inc., a disposable hospital products manufacturer with about 750 employees in Cary, Ill., and partners regularly with a trusted travel agent employed at Cary Travel Express.

Up to now, she's only periodically relied on her travel agent for making group arrangements other than air booking, but concedes that the scenario may change as the firm begins to increase the pace of its global expansion. When that happens, Benthusen will be happy to rely on the agent she's relied on for ten years. "I left one major agency and went back to her. She could catch errors that they missed. She has a strong customer service orientation that makes me confident that she can handle more responsibility."

Benthusen said she long ago realized that she needed a travel agent who could adapt to the corporate culture and have a great attitude about providing service. "I really need someone who can be my right hand and who knows a lot about destinations, discounting opportunities and the meetings industry. I rely on this person to step in for me when I have multiple projects to juggle," Benthusen said. "She's meticulous and detail-oriented. I know I can count on her to check over arrangements, and make sure bookings adhere to our travel policy."

Still, Benthusen said, she likes to handle most arrangements and on-site management of sales and training meetings herself--not only does she have more control that way, it simply makes more sense, given the fact that most of Sage's meetings are held at headquarters in a high-end conference center that can seat up to 70. "It's quite nice, with the very latest in audio visual equipment."

While Benthusen sometimes wishes she could wash her hands of the food and beverage aspect of the program planning, overall she derives satisfaction from knowing that she can guarantee the success of the program.