Meetings Rebound by Jeff Thredgold - Economic Futurist

 “You can’t get corporate jets, you can’t go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer’s dime”…noted President Obama during February 2009 in response to a question about financial institutions that had received TARP money holding lavish events.

That statement, combined with frequent Congressional criticism around the same time of companies who hosted events for their clients or top performers (including a major blunder by AIG), contributed greatly to the loss of roughly 200,000 travel-related jobs during 2009.  This was a painful hit to an industry that saw a similar number of jobs lost the prior year, tied primarily to economic anxiety in the U.S. and around the globe.

From “Fun” to “Safe”

Specific mention of Las Vegas, Orlando, San Francisco, Palm Springs, and Reno as places to avoid holding meetings—especially for various Government agencies—led to tens of thousands of jobs disappearing in these “resort/fun” cities for hotel clerks, taxi drivers, tour guides, restaurant workers, etc.  Many companies and associations forfeited deposits and paid event termination penalties in order to move their meetings to “safer” cities such as St. Louis, Dallas, Denver, and Detroit that were less susceptible to Congressional criticism.

The President and Congressional leaders largely backed off of their criticism of the meetings industry.  That reversal, combined with stronger U.S. economic growth, is finally turning the meetings industry around.

The Wednesday, May 12, 2010 cover story in the Money section of USA TODAY noted the rebound now underway in the meetings industry, especially in regard to incentive travel for top performers in companies.  The article notes that travel industry executives expect the uptick this year to greatly accelerate in 2011 as workers reach the targets that would qualify them for rewards.

The article notes that “for every dollar spent on incentive travel, a business typically reaps $3 to $4 in revenue.”  It continues, “Large gatherings can be particularly valuable because they give attendees the chance to connect with one another as well as top executives.”

Across the Board

It is not just top executives who attend these events.  The article notes that Texas Roadhouse, a national restaurant chain (note:  awesome steaks!) hosted not only restaurant managers and corporate leaders at an event in New York City, but meat cutters, servers, bartenders and other employees who won various competitions to qualify for the trip.

A meat cutter from Texas, who has now qualified for three trips as well as a sizable cash reward, noted “It’s one of those things that I like about the company.  It motivates me for the whole year.”

For many companies now holding meetings, some element of prior glitz has given way to purpose.  More companies are including public service while on site.  For Texas Roadhouse, the meeting included time for attendees to stuff 10,000 gift bags for soldiers overseas and serve meals at a local church.  For others, time is provided to clean up a local park or work on a Habitat for Humanity home.

The meetings industry…an important business in “the business of America”

By Jeff Thredgold - Economic Futurist, Author of Econamerica

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