How economically challenged european countries can be a boon for U.S. Meetings
"Spain’s Credit Crunch," "Greece’s Euro Woes," "Challenges for Europe’s Economic Core." These are just some of the recent news headlines following the euro’s fall against the dollar as fears mounted over Greece and Spain. Depressing, to be sure, but an opportunity for U.S. meeting planners going back to some European destinations?
You bet.
"This is a great time for planners to start looking at Europe again," said Gregorio Palomino, CEP, CTA, CWP, creative director, meetings, incentives and corporate division, for Texas-based CRE8AD8 LLC. "It’s a buyer’s market since we can leverage our dollar. Plus, many countries and cities are offering tax incentives… It’s possible now to arrange a fully loaded meeting or event in many destinations for up to 20 percent less than the pre-crisis rate."
U.S. planners are finding particular bargains in Ireland, Spain, Portugal and Cyprus, but some say there is buying power all over Europe.
"Any place in Europe that has a lot of hotel capacity is open for business," said Jeff Broudy, executive vice president of United Incentives.
Europe’s recession "allows us to add more content to the program or go to venues we couldn’t go to before," according to Jodi Swailes, senior buyer-geographic specialist at the ITA Group.
Mary Ann Willingham, director of meetings and incentives for the Coral Gables, Florida-based Travel Leaders Corporate, sees Italy, France and even Switzerland, a non-euro country, as being more negotiable than in the past. For small groups, the hotels are willing to upgrade a few rooms, and the DMCs will negotiate with larger groups, especially when it comes to transfers and guides, she says.
Planners are "realizing that they can buy a five-star experience in Venice or Marbella cheaper than a four-star experience in Orlando or Chicago," Palomino said. "Airfares, however, remain a problem due to less frequency of departures and higher-priced seats. But don’t be afraid to look at rail and bus options from major airports."
New destinations and Cyprus
Because U.S. companies still have a watchful eye on their budgets, they are taking groups to outlying areas such as Burgundy and Provence, for example, rather than stay in Paris, according to Jim Schultenover, chairman and CEO of Krisam Group/Global Events Partners. He says that outside of the capital city, it’s easier to negotiate offsite venues.
"Work some deals out with local establishments; hotels and convention centers are not the only places to eat and drink," Palomino said in agreement. "Local businesses need help as well, and chances are the food is better, too!"
Saira Banu Kianes, CMP, president of Banu Event Solutions & Training, recently sourced a meeting in the Spanish coastal town of Sitges, 22 miles from Barcelona, considered for the location’s uniqueness, convenience and price difference.
"The Dolce Sitges hotel has great meeting space for various types of groups and is so conducive for training with great views and comfortable rooms," Kianes said. "The hotel was far less expensive than a comparable hotel in Barcelona or Madrid and included breakfast and free Wi-Fi."
One country often overlooked is Cyprus, but that’s all changing, according to Tasoula Manaridis, director of the Cyprus Tourism Organization.
"Not only from the point of view of pricing, but also because [U.S. planners’] clients are looking for new, exciting and exotic destinations in which to have their meetings," Manaridis said.
And there are deals to be had. To draw meetings that might be looking for an alternative to Greece, the hotels in Cyprus are willing to negotiate, she says.
"Plus, if planners bring meetings to Cyprus during the shoulder season, they can save even more," Manaridis said. "November through March, hotels may offer discount prices up to 50 percent."
Cyprus is always improving its tourist product and recently upgraded the port of Limassol. In addition to building roads and more golf courses, Cyprus is offering planners the opportunity to use ancient archaeological sites for functions.
Andreas Christodoulides, general manager of the InterContinental Aphrodite Hills Resort Hotel, argues that Cyprus is not in the same economic crisis as some other countries.
"In order to adapt with the general global economic situation at the moment, we are requesting that all companies, MICE agents and conference organizers advise us first of their budget for their group and we will adapt our pricing and added-value offers accordingly," Christodoulides said.
What about Greece?
"Sadly, it is much harder to engage clients with Greece," Broudy said. "The civil turmoil is well documented and the breakdown in municipal services limits the appeal."
Aristides Tsaldaris, president and CEO of Horizon Travel, an Athens-based DMC, understands.
"A CEO still has to go to the board to justify a particular location," Tsaldaris said. "Because of the competition, you’re seeing a lot of last-minute deals, and hotels now are guaranteeing rates in U.S. dollars—through 2015. There are no surprises."
Still, the hotels in Greece are not giving things away.
"They still charge for breakout rooms," he said. And Tsaldaris remains optimistic. "I think following the Greek election [this past June], things will start to stabilize. At IMEX in Frankfurt, planners were requesting information on Greece as a consideration for 2014 and 2015 meetings."
"Also, it’s been only eight years since Athens spiffed itself up for the Olympics. There are new marinas," he continued. "The hotels were all renovated. Now, with a new mayor in Athens, some previously off-limits archaeological sites have been opened for functions." One+
The Downside of a Tough Economy
Industry professionals shared their thoughts with One+ on the downside of planning a meeting or event in a destination facing tough economic conditions.
Karla Darnall, owner of Strategy Association & Event Management, says the only problem she sees with going to a country that is economically challenged is the storefronts that may be boarded up or closed.
"It takes a little of the wow factor away, but when I take my attendees to a new country, I want them to experience everything from the landmarks to the people to the economy."
Most planners say the constant barrage of bad news coming out of Europe negatively impacts programs.
"The biggest problem in these countries today is the media and what attendees see on the news," said Jodi Swailes, senior buyer for ITA Group. "If they see what’s happening in Greece, for example, we wouldn’t be able to promote a program there. Or, we’ll have potential attendees calling the higher ups with their concerns about the destination. There are a lot of misperceptions."
Gregorio Palomino, creative director of CRE8AD8, is concerned about crime rates in stumbling locales.
"With low economic value brings crime," Palomino said. "It’s unfortunate, but it’s there. That is not to say it is everywhere, and the media reports what they want. Do some research and get some crime reports just to verify [the safety of] your destination. Ask the location for help as well. If they want your business and want the repeat business, the least they can do is protect their investment!"
"As always, you want to check the infrastructure. If there was good infrastructure before, it will probably be there tomorrow," said Jim Schultenover, chairman and CEO of Krisam Group/Global Events Partners. "And, you have to see what’s going on politically. Are there going to be protests? Check the U.S. travel warnings."
"We have to be concerned about the quality of the product," said Lynda Baum, president, Exclusive Destinations. "If a hotel hasn’t been able to invest in the property, it becomes a quality issue."
She adds that the meeting industry has a responsibility to help these struggling destinations: "Supporting these countries now is a good thing, and if you can negotiate, more power to you."
Not all suppliers are willing to negotiate, however.
"In recent months, we have received mostly points/miles offers from Europe as a way of compensation and gratitude," Palomino said. "From a business standpoint I will negotiate what is easy to accomplish. Usually this is in the form of points or miles. There won’t be a lot of monetary incentives for planners for a while until much of the European economy levels back out."
Ireland
Padraic Gilligan, managing director, Dublin for MCI Group, notes three good reasons to book in Ireland: It’s the strongest value against the dollar in years, hotel prices are among the lowest in Europe and "the standard of the hotel stock is second to none."
Jodi Swailes, senior buyer-geographic specialist at the Des Moines, Iowa-based ITA Group, plans meeting in the pharmaceutical, automotive, insurance, finance and direct sales industries, says most of her clients going to Europe are going to Ireland, with a close second being Portugal.
"In Ireland, the DMCs and hotels are enhancing their programs quite a bit," Swailes said. "We have gotten discounted F&B, upgrades on rooms and free meeting space. Normally, we’d be charged for a hospitality suite or office and that would be a big hit on the budget."
With transfers being inexpensive, and breakfast included, "We can do a five-night program in Ireland cheaper than New York City or California." Also, the VAT on the meeting is refundable.
