Meeting Negotiations More Challenging At Florida Resorts

<B>Meeting Negotiations More Challenging At Florida Resorts</B>

By Chris Davis

Few U.S. states can boast the density of resort properties that Florida can, yet the added supply doesn't always translate into increased buying power for the corporate meeting planner. In fact, the state's allure keeps demand for luxury resort incentive and corporate meetings high and available meeting space at a premium.

In addition, while Florida perenially has served as a favored option for incentive destinations, the number of business meetings at the state's resorts is increasing as well--mirroring the trend of the country at large.

"We are seeing more time devoted to business, even more so than the traditional half-golf, half-business split,"said Glenn Graham, director of sales for the Amelia Island Plantation resort in Amelia Island, Fla."There are many more meetings these days that are all business, and they squeeze some golf in when they can."

As a consequence, good meeting space in Florida is tight despite the volume of resort properties the state boasts. The trouble lies, Graham said, when buyers seek the same styles of meeting rooms that exist in large downtown hotels.

"We'll get corporate planners asking for a general session for 50 people but then five breakout rooms for 10 people each afterwards," Graham said. "Properties can't afford that kind of space. I don't know if resorts are necessarily holding our space closer, but something has to offset that."

And, while the nature and scope of meetings contracts is fairly consistent throughout the country, corporate meeting buyers can expect to see Florida resorts take a harder line in negotiations simply due to the demand for the location.

"Florida resorts are offering good prices when you consider that you can find just about every activity: golf, the beach and water sports," said Deidre Dies, manager of planning and incentives at Ft. Lauderdale-based Crescent Meetings & Incentives. "Plus, corporate attendees, particularly those there for incentive meetings, tend to perceive it as a higher value. They feel their company is spending money."

Dies sees Florida as the highest-end destination for corporate incentive meetings to be found in the continental United States. "Florida's a good first step for companies that aren't quite ready to go offshore but don't want to stay in the Midwest, for example."

"There is an added premium on Florida resorts because the destination carries so much weight and power," said Paul Wohlford, vice president of sales for the Sandestin Golf and Beach Resort of Naples, Fla. "These are not properties that you have to go to for a meeting, they're properties you get to go to."

Even within the state, though, there is a hierarchy of destinations, and Wohlford said ascending that ladder is not as simple as developing a standout resort property.

"There are places in Florida where you have to pay extra to stay, like Palm Beach, and we'd like to do the same thing here," Wohlford said. "The more we're able to make this an upscale destination--and that includes shops and restaurants too--the more we'll be able to make."

One growing bastion of the resort meeting industry that seems to have taken hold of Florida more so than the rest of the country is the resort service fee--the per-head, per-night fee for ancillary charges such as health club and telephone usage, which is either the scourge or balm of the industry, depending on whom you ask. "Resort fees are more prevalent in Florida, at least more so than I've seen throughout the country," said Dennis Edwards, vice president of sales and marketing for the Greater Ft. Lauderdale Convention & Visitors Bureau. "Which is not necessarily a problem or deterrent for corporate buyers provided all fees are disclosed upfront."

Edwards said such fees are just another way for resorts to maximize their revenue, which could be key in the future, as he's seen somewhat of a dip in corporate meeting interest in the state--and the country--since the beginning of the year.

"I wouldn't even call it a wait and see period for corporations, but inquiries have quieted down slightly lately," Edwards said. "There just doesn't seem to be that confidence, with the oil prices being what they are, and the airfare increases and the fluctuations in the stock market--all of which certainly impact corporate meeting business."

Amelia Island charges a resort service fee, covering telephone usage, coffee service and other amenities. Graham sees it as the direction in which Florida resorts are headed.

"It used to be all over the board," he said. "Some charged per head, some per room, some as a percentage. But it seems most resorts here are going to the service fee setup, which can be a real advantage for the planner because it gives them a set budget and guarantees a certain level of service."

While Dies said there are resort service fees throughout the state, they aren't as prevalent as they are in the Caribbean and Bahamas, where per-day, per-attendee staff gratuities are far more common.

"These fees, in my experience, are something that you can negotiate around," Dies said. "Or at least customize to the group--a custom spa package, for example, instead of the service fee."

But there are features unique to Florida that can help the resort meeting buyer keep the cost down. Expenses not directly related to the onsite staging of the event, specifically transportation, can be lower because of the state's accessibility.

"One reason Florida is popular with corporations is the accessibility and the savings on airfares since there are three international airports within one hour of each other--in Miami, Fort Lauderdale and West Palm Beach," said Jerry Janove, vice president of sales and marketing for the Resort Meetings Consortium of Cherry Hill, N.J.

And despite the state's appeal as a year-round destination, there are deals to be had when the humidity is high. "Actually, Florida has shown more seasonality than most other areas," Janove said. "You will see a substantial break in cost in July, August and September.