Most Corp. Mtgs. With Tee Times Are Locked In For 2001

<B>Most Corp. Mtgs. With Tee Times Are Locked In For 2001</B>

By Chris Davis

Despite a booking window that continues to shrink past the typical timeframe required to attain tee times at popular golf courses, corporations continue to include a round or two in many meetings. But, as many companies debate cost-cutting measures in a dicey economy, there is the possibility that corporate golf at high-level courses may be a casualty.

At this point, that hasn't yet happened. Many corporations have incentive programs on the books throughout the rest of the year, without yet canceling or scaling back on their plans for golfing expeditions. Short-term meetings, now affecting the golf resort sector of the industry, like it does in every other one, still include half days or full days of tee times.

"We're seeing a lot of short-lead business cycles, even inside two weeks," said David Fine, vice president of sales and revenue development at the Doral Golf Resort & Spa in Miami, at which group business comprises nearly 70 percent of rooms booked. "We're trying to stay ahead of the curve, but there are still quite a few pop-up meetings with golf attached. I'd rather have the bird in hand and not rely on the short term."

Though Doral sports five courses, most corporations meet there for reasons other than the links, Fine said, like its convenient location for international businesses. "However, many still will modify their meetings to ensure at least a round," Fine said, "and most also want at minimum a half a day of meetings."

But with economic clouds gathering, Fine is prepared for fluctuations in corporate golf interest. "Appearance is the thing, and some corporations will de-emphasize golf in favor of more time spent on sales or education," Fine said. "But when the economic landscape is volatile, often corporations will pull their incentives back from major international destinations and bring them back here, which helps us."

Business groups book about 70 percent of the rooms at The Woodlands Resort and Conference Center in The Woodlands, Texas, and about 58 percent of those events include golf, said director of sales and marketing Nicki Keenan. "Companies will wrap half an afternoon of golf around their meetings," Keenan said. "Over half of our business involves 30 rooms or less. Much of it is high-level board meetings or training meetings.

"There will be more attention to return on investment and production, where meeting buyers want a nice locale but are accountable to the bottom line," Keenan added. "The last thing they want to put forth is that these meetings are held solely at high-end resorts when they know the real intent is the meeting itself. It's not going to be something they cut back on, because there are important components to it. It's not just recreation, it allows attendees to network, just like a traditional teambuilding exercise."

Since many of the events involving golf already are booked, raising the specter of cancellation damages should corporations decide to renege, the effects of any cutbacks shouldn't be felt in the next few months, at least.

"For incentives, we won't see the effect until 2002, because most of this year's programs already are booked and we haven't had any calls to cancel," said Linda Ahlvers, director of sales at Arizona-based meeting and incentive management firm USA Hosts-Tucson. "But smaller programs, like typical corporate meetings with some golf attached, will see some cancellations more quickly. That's a little shaky, and it could yet put the hammer into 2001."

Ahlvers said that if corporations begin slicing costs of their meetings and incentives, there will be cuts to the golf itself, but air and hotel expenses would be likelier targets by bringing meetings closer to headquarters, at less expensive properties and less than top-quality golf courses. "They would cut some golf, but golf could be only a third of the whole incentive program," Ahlvers said. "I don't think we'll see major changes there unless something drastic happens, which I don't foresee."

According to Danny Treece, president and CEO of Charlotte, N.C.-based American Meetings & Events, it's still too early to tell. "There's not too much change in the negotiating environment yet, and corporations are still very rate-conscious," Treece said. "But there are specific courses many corporations want to play. These are Professional Golf Association-quality or resort-quality, and cost is not paramount in those cases.