Lessons from the Lodging Industry
By Jennifer Brock, Regional Director of Group Sales, Prince Resorts Hawaii, a division of Prince Hotels
In August of 2007 I joined Prince Resorts Hawaii as the Regional Director of Group Sales for the West Coast and Southwest Region. With three golf courses, tennis centers, fitness facilities, day-spas and convenient meeting capabilities, all situated on stunning oceanfront settings, I felt it would be easy to fill the hotels with groups.
But the landscape was shifting – companies were downsizing, the luxurious “over-the-top” incentive events were diminishing, an attitude of “less-is-more” set in as corporate bottom lines were dipping into the red and pink slips were appearing. Hawaii, having benefited from pent-up demand following the aftermath of 9/11 and the fear of international travel, was enjoying its highest ADRs in modern history, was slow to recognize the shift.
Where were we going to find the groups to fill our meeting space and guestrooms? Overnight we began to look at markets we had ignored; student groups, small associations, pre and post cruise groups, and government and military meetings. As ADRs fell, government per diem rates began to look better and better. It was time to go after a segment of the market we had previously ignored.
Just as luxury resorts had ignored the government market, the meeting planners and organizers of government meetings had not considered using resorts for their meetings. Has that changed? In the SMART Meetings November issue, Jill Stark, CCTE, CGMP and President of the Society of Government Meeting Professionals San Francisco-Bay Area Chapter, noted that she has seen a sharp change in attitude recently toward government meetings among hotels, CVBs and destinations. “I have never seen the suppliers come out in such a robust manner. Venues that would have never contacted me three years ago are now calling me.”
Jennifer Parsons, Global Account Manager for Conference Direct, has recently contracted with a resort in Waikiki for a very large international meeting involving government entities from all over the world. Previously price-prohibitive for this organization, Jennifer’s client is taking advantage of the current interest of the resort in attracting its meeting to Hawaii, long a destination they dreamed of.
Will this trend continue? Projections for recovery of group business are showing slow, but sure progress, however the progress for Hawaii is slower than for many other areas. Government business will continue to grow at resort destinations, if resorts can make the adjustments necessary to work with the restrictions government groups impose: deleted attrition and cancellation clauses, flexibility with room pick-up and billing procedures, and of course, guest room rates at the prevailing government per diem.
Government meetings are expected to grow in general, in attendance, at least if not in number. According to Jennifer Parsons, “This segment of the market is extremely loyal and their pick up is generally strong. They meet frequently and most meetings are between 100 – 300 people for 3-5 nights, meetings which need to be planned by individuals who really benefit from 3rd party assistance.”
There are many reasons for using resorts for meetings: the wide variety of destinations to consider, options for distinctive event venues and meeting attendance increases. As resorts adjust their policies, internal systems and procedures to better handle this segment of business, it becomes a “win-win” for everyone.
Jennifer Brock is Regional Director of Group Sales for PRINCE RESORTS HAWAII, a division of PRINCE HOTELS, which owns and operates resorts and hotels in Asia and Hawaii. She began her career in the airline industry, working in frontline, customer service positions, eventually rising to the position of Global Sales Manager for American Airlines.
Brock graduated from the University of the Pacific, Stockton, California, with a BA degree in French. She has earned the Certified Travel Counselor designation from the Travel Institute and belongs to professional organizations including MPI and Site. She is currently Immediate Past-Chair of the Incentive Research Foundation and sits on the Board of Directors of the Northern California Chapter of Site.
