MPI Spain is furthering dialogue between hotel directors on hospitality industry strategies to attract congresses and conventions.
According to the results of FutureWatch 2009, more than 50% of events are held at hotels. This is one of the conclusions of the last session organized by MPI on 30 April, in which keynote speakers included Ines Aleu, sales manager of the NH Constanza Hotel, Nuria Iglesias, director of the AC Barcelona Hotel, Neus Tejedor, business manager of the Hesperia Tower Hotel, and Albert Bramona, secretary general of Barcelona Hotel Guild.
Besides the evident drop in the number of events being held, the speakers highlighted the repercussions of the crisis on five-star hotels as congress venues, and put the accent on the importance of urging institutions and hotels to jointly develop new strategies aimed at protecting the industry, as well as on constant dialogue between hotels and planners. “Organizers should provide value added so as to encourage clients to engage them to provide full service packages and not just to regard them as commission agents,” stated Nuria Iglesias.
Luxury, a prohibited word
Luxury is a word whose use is currently banished at conventions and some congresses. It is not only a matter of cutting costs but also of safeguarding corporate image. “In the current crisis, there are a number of words that have been prohibited for ethical reasons, or due to corporate policy, such as resort, spa, watering place…“ Neus Tejedor explained.
Along these lines, the pharmaceutical industry is one of the main players that have established conditions for using five-star hotels by demanding a minimum of 200 guest rooms and programmed and stipulated services, which then have to be approved by Farmaindustria. “It is a temporary situation, which will last several years; generally speaking, humans like luxury,” opined Albert Bramona.
Low demand for green hotels
As regards sustainability, the general opinion is that clients still do not insist on green hotel accommodation when choosing a venue for their event. “It isn’t yet an essential criterion. Spanish hotels are just starting to cotton on to the advantages, although it is only of matter of time since it represents the industry’s contribution to environmental protection, as well as involving improved management and cost savings,” Albert Bramona said.
Are congresses a stable source of business in times of crisis?
To ensure that they are, the industry demands greater flexibility from hotels, while the hotel industry insists upon constant communication with organizers, frequent updating, and adequate cut-off dates, among other things.
The Mobile World Congress is an example of this that has established a precedent. In the words of Neus Tejedor, “this year, the organizers have taken an excellent initiative by negotiating with each chain or hotel to tighten conditions to a maximum. In this way, they’re telling you that if you don’t adapt to the circumstances to some degree, business might not be coming your way.”
Likewise, the Barcelona Convention Bureau and the Barcelona Hotel Guild are drawing up a series of voluntary norms for the local hotel industry with the aim of safeguarding the destination and unifying criteria. “As a city, Barcelona stands out by encouraging hotels and institutions to join forces in the face of potential international competition,” Nuria Iglesias said.
What will happen after the crisis?
According to Ines Aleu, “in Barcelona, it’s going to be difficult to reposition four- and five-star hotels in the marketplace, because they are in a bad way. Clients are very susceptible to prices.”
The speakers, however, all came to the conclusion that business will begin to pick up in 2010, above all as regards congresses and conventions, contrary to the pessimistic forecast for corporate events. This optimism is based on the fact that a number of large congresses will still be held in Barcelona, although attendance figures are expected to be down by 15-20%.
