Let the numbers do the talking: The member companies of Financial & Insurance Conference Planners alone spend $600 million on meetings. And a typical FICP member company's largest meeting brings $500,000 of pure revenue to a hotel.

“We're a niche player, but we represent big business — and it's growing,” says Patricia Kerr, CMP, director, distribution sales support, Manulife Financial in Waterloo, Ontario. Kerr is president-elect of FICP and was one of the architects of FICP's first economic impact survey, conducted last summer.

The survey results are evidence that as we head into 2007, planners are emerging from a long era of cost cutting to embrace a new era of cost management. They're spending, but they're spending smarter.

Michael Key, CMP, is a case in point. “My budget has not been cut, but I am challenged to spend my dollars wisely,” says Key, assistant vice president, sales support, at Monumental Life Insurance Co. in Durham, N.C. The regulatory environment has also had an impact. “We still have incentive meetings, but they must include a business purpose as well,” Key says. “We allot ample time for business sessions along with recognition at all of our meetings.”

Gary Pearson, director, meetings and events, Aon Service Corp. in Chicago, says his company has lately been “scrutinizing” attendee lists. For example, the company's Worldwide Leadership Meeting, which brings together top executives from around the world, had attendance of 190 in 2006 but will be trimmed to 150 in 2007. The reduction does represent cost savings, but Pearson explains that the issue is not so much cutting budgets as making strategic decisions about where meeting dollars are allocated.

“My budget per meeting is staying steady, but we are doing fewer, larger meetings and targeting different clients,” says Linda Rayner, director, conference planning, Pacific Life, in Newport Beach, Calif. “And we are looking closer at how we spend the budget, trying to get more bang for the buck.”

Package Deals

For many planners, the biggest bang for the buck comes from negotiating package deals. Whether it be multiple programs at a single property, a year's worth of incentives at a single brand, or multi-year deals with hotel companies, insurance and financial services meeting planners are beefing up their room blocks to make their business more attractive to hotels. And with the seller's market sticking around, that's critical.

“We have had much success in negotiating favorable deals for the company by ‘packaging’ our events and negotiating well with partners that support these meetings,” says Jeff Calmus, Boston-based assistant vice president, operations, conference and event planning, for MetLife. “By leveraging our spend, we have been able to maintain relatively flat budgets while getting more value for our internal clients.”

At National Life Group in Montpelier, Vt., Lynn Averill, second vice president, travel and conferences, booked four sales programs, ranging in size from 80 to 600 attendees, into El Conquistador Resort and Golden Door Spa in Las Croabas, Puerto Rico, in spring 2008. Booking four programs got her “significant negotiating leverage for concessions and rates,” Averill says. She decided to try a package deal after she had already started to investigate bringing one program to El Conquistador. Then management asked her to scrutinize her budget (“the fourth time in my career,” she notes). “It seemed obvious that placing more than one meeting would put National Life in the driver's seat,” she says. “Of course, I needed to show the value of the savings and concessions (by booking four meetings versus one meeting), and then we brought [Puerto Rico-based DMC] GSI and the Puerto Rico Convention Bureau into the mix. It really was an incredible experience to have all of us working on the same goal.”

From the resort's perspective, says Michael Crist, associate director, sales and marketing, LXR Luxury Resorts, “the size of each group, plus their length of stay, made it possible for the El Conquistador to achieve a desired level of occupancy over a long stretch of dates. We mixed and matched Lynn's groups according to our availability and what was most convenient for National Life Group executives to be present for their respective programs.

“Instead of just one nice program which would fit well into a number of open dates,” Crist continues, “we were able to accommodate four groups, more than double the amount of realized business from a room-night standpoint, and provide National Life Group with an overall package that combined economy of scale with a highly marketable resort destination.”

Averill booked the meetings essentially back to back throughout April and May, making travel more efficient for executives and giving her a stronger negotiating position with speakers and entertainment. She will buy room gifts in bulk, and all promo materials will be the same except for text changes.

Also working in her favor was timing: El Conquistador Resort joined the Luxury Resorts portfolio in August 2005, and now is undergoing a $100 million overhaul to be complete by year's end. “The new product is going to be sensational,” Averill says. “LXR's reputation for bringing properties back to life, together with the relationship I have established with Michael Crist and Laura Burke [Northeast sales representative, LXR] over the years had everything to do with sealing this deal. This involved a lot of trust by both parties, and I must say it was one of the most rewarding experiences in all my years as a meeting planner.”

Crist echoes the sentiment. “Earning Lynn's confidence and trust over the years is an honor for me. Her professionalism, humor, and knowledge make her a joy to work with, and all of us at the El Conquistador cannot wait to welcome her back with several hundred of her colleagues.”

Averill says she will try more multi-meeting deals in the future. “Like many companies, we are looking at negotiating two-year contracts for our 2009-2010 incentives with similar goals of cost savings and efficiency.” She acknowledges, though, that sometimes the pieces just need to fall into place. “I believe I was working with El Conquistador at the right time,” she explains. “LXR had just announced its involvement. The planned enhancements to the property will be phenomenal. It truly will be a brand-new resort. If I may be so bold: I needed the El Conquistador and it needed National Life.”