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Convention and business travel rebounding after 9/11

Edelstein, Art

Next July the Big Bikes will come to Vermont. For three days over 8,000 owners of BMW motorcycles and their spouses will cruise the ,state's highways and byways. On their rides around Vermont they will purchase gas, buy snacks at convenience stores, eat in restaurants and stay in a variety of hotels and motels. By the end of their visit here they will have spent over $1.5 million.

The BMW Motorcycle Owners Club of America, which arrives next July 21 at the Champlain Valley Exposition, is just one example of the type of meeting and convention business Vermont tries to attract. Conventions of this type can take several years to finalize but the benefit to the state is large. Beyond the money these motorcyclists will directly spend, there is the possibility that they will find the Green Mountains tourist friendly enough for a return visit.

Why did the BMWers decide to hold their convention here? According to John Camaranno, Executive Director Vermont Convention Bureau, "They will be riding around the state and it is not unusual for them to ride 200-300 miles a day. They like the back roads. That's why Vermont was so attractive to them for a convention?"

Camaranno heads the state's clearing house for garnering convention and meeting business. Vermont, he believes, is one of the best places an organization or business can hold a meeting or convention. "There are few negatives. We've gotten the word out that Vermont is a great place to do meetings and events. We see growth and do a lot to educate them about Vermont."

While the state is within a half-day's drive of large urban centers in the northeast, we are also able to attract these events because of low cost air carriers. According to Camaranno, "We are serviced by airports in Albany, Manchester, West Lebanon, Rittland, Burlington and Bradley in Connecticut that support us as far as hosting events. They supply easy access to any part of the state and there are low cost carriers."

The list of conventions planned for Vermont is long, said Camaranno. Coming soon to Burlington is the Distributive Education Clubs of America in November. Twelve hundred people will stay at the Sheraton and spend half a million while here.

Next March the US Snowshoe Association national competition will be here. They will book 500 room nights for 1,000 people and be based out of Bolton Valley Resort. These snowshoers will stay within the Central and Northern Vermont region.

Vermont landed this event through the work of the Vermont State Sports Council, affiliated with the convention bureau. VSSC promotes the state as a sporting events destination. This year the snowshoers were in Alaska.

According to Camaranno, "The more groups we get the more credible Vermont becomes as a destination for these groups."

Another convention planned for next August hosts the American Association of Motor Vehicle Administrators with 500 attendees, 2,100 room nights, and a $600,000 economic impact. They will be hosted at the Sheraton and the DoubleTree Hotel (formerly the Clarion) in South Burlington.

The overall economic impact to the state from conventions and meetings this year is expected to be over $10 million. That is up from 2004's $8.5 million impact. Camaranno reports 90 groups currently booked for all of this year up from 82 last year.

"We are getting better," said Camaranno. "It's a good curve, a lot of our counterparts elsewhere are flat or at a slight increase. We are doing quite well. The future looks great for the next decade. It's very promising."

Trends in Conventions

Camaranno and others in the Vermont convention business are seeing trends. After September 11, 2001, convention business fell off as Americans cut their travel plans and the economy went into a nose dive. Apparently there is growing optimism as he sees all sizes of groups looking to book further out.

"We are starting to get inquiries for as far out as 2011. We used to see people looking two to three years now it's five to six."

Camaranno attributes this to the economy, which he sees as stronger than right after 9/11. He said corporate America feels more confident and there are more corporate meetings and a return to pre-2001 levels.

Gone are the days when convention groups stayed close to 'their hotel, after meetings. Today's conventioneer wants more and scheduled activities, when there is free time. These might include skiing or snowshoeing in winter, off site receptions and luncheons such as going to a museum like the Billings Farm in Woodstock for a-lunch or reception, a cruise on the Spirit of Ethan Allen.

"They want unique and different venues, such as museums," said Camaranno. "People aren't just partying, they want to learn about the area and see what Vermont is all about."

Vermont currently competes primarily with other New England states and Boston, Hartford, Cape Cod and Maine for this business.

A Survey Of Meeting Venues in Vermont

At the Woodsiock Inn Bettina McCrady reports 250 business meetings annually, primarily from New England regional companies many in Fortune 500 category. The largest market share comes from the greater Boston area that accounts for 45 percent of the inn's meeting business.

To get the business, McCrady said the inn had to look at making rates more value added.

"We're becoming more flexible in our rate structure with more to supply and demand rate." This is a way to get more mid week business, which is important to filling occupancy here.

Today's business traveler "wants hispeed Internet connectivity and technology," McCrady said. At the inn public and meeting spaces are now wired for hi speed, but cell phone service, she said, is still spotty.

Trends in business meeting bookings are changing to short term - six to 12 weeks confirmations more popular than six months a few years back. However, she said, associations continue to book further in advance.

She attributes some of the changes in booking trends to meeting departments decimated after 9/11. They are now in the hands of assistants who do the bookings but are less experienced in how to do this. These meetings now save money by removing extras like recreation, especially golf tournaments, from the schedule.

Meetings, she said, are typically a day and half to two days instead of three days and most are two nights. The number of business meetings are flat.

"There are so many choices in New England and competition has strengthened. Our loyal customers are looking at other options."

Part of the problem, she acknowledged, is that often a corporate head may have a second home elsewhere outside Vermont, and meetings are then held near that home.

The inn has a new advertising agency, Adrienne Davis-Brody which partners with Alice Marshall Public Relation in New York. For tourism business the inn, said McCrady, is' trying to reposition itself for the 30-50 year old family as a unit as a target business sector.

"We are trying to broaden ski visitors to summer and work off the VINS center and the Connecticut River events, and make the Woodstock Chamber-more integral to working with the inn."

Darcy Curran at the Trapp Family Lodge in Stowe said she is seeing smaller corporate retreats and conferences of 40-60 people.

"That segment has grown 12 percent from last year." She attributes this to "direct mail and aggressive sales. People like our unique space."

According to Curran, guests demand more services such as wireless hi speed Internet access. To strengthen business the lodge is doing a $2.5 million expansion of its fitness center. "We have to keep up with what customers expect as a baseline level of service. It's service, service, service," she explained.

Curran reports that tourism is up from 2004 in "a slow comeback from 1993, which was a very good year."

Another tourism trend is that people are booking online, especially through priceline.com where they get substantially lower rates than if they booked directly through the lodge. So, while occupancy may be higher there is not necessarily higher income from the growing occupancy numbers.

"We're getting a lot more short-term requests for meetings and tourist stays," said Shelia Cleary at the Topnotch at Stowe Resort & Spa. In the past, she said, groups would book one to three years out, today they book in patterns from weeks to months.

The trend in individual travel since 9/11 continues to be more shorter term bookings.

"Previously people booked a year in advance now it's as close in as a few days. People's lives have changed, they are not planning as far ahead and taking smaller vacations."

Laninnie LaCroix at the Hampton Inn Hotel & Conference Center in Colchester confirms that bookings for conferences now have a shorter window as businesses make more last minute plans.

"This is the trend, with schedules people keep," she explained. Some events are planned as short as two weeks out, especially for a local business.

The Hampton Inn gets many seminars, associations, and reunions. The size of these events is generally 150-200 people. There are also many in state conferences and educational events.

Business travel here remains strong but bookings are now for two days with a turnaround shorter than a few years ago. She said this change "has to do with budgets." Many business travelers come from Albany and Massachusetts and the majority drive to the inn.

LaCroix sees a trend to more teleconferencing and agrees that wireless highspeed Internet access "is a feature hotels need to offer their guests."

The Sheraton Burlington Hotel & Conference Center hosts many of the state's larger meetings and conventions. In October, for example, it will be the site of the UVM Legal issues conference with 300 people in a four day event. Also in October the Timber Framers Guild with 350 people will stay five days.

Inn manager Alan Hebert said there are more short term conference bookings primary on the corporate side with some booking as close in as six weeks.

"They are waiting to see their financial situation," he explained. Another factor contributing to events is the "Push with technology, email and the web, that they need face to face interaction and they book close in." Hebert sees more Vermont companies hosting events this fall, a change from previous years when there were fewer of these events. For example, he points to Goodrich in Vergennes hosting an event for 150 people.

"Defense contractors seem to being doing well," he suggested.

The Sheraton's edge may be the services others don't offer. Here there is a Cybercenter with four, high-speed lap-top computers and ports for additional computers along with access to a printer and scanner at no cost to the customer.

The Sheraton, said Hebert, competes with every other conference center in the country.

"With bookings several years in advance we are looking at the national events. We are booked to 2009 and that segment of the market, the far in advance bookings of national associations is improving."

Hebert agrees with others in the industry that association business has returned.

"There was a lull after 9/11. They are planning further out now."

Business travel here, said Hebert is fairly flat." He attributes this to companies that have left town and "not as many new businesses coming into Vermont."

However, those who do come "their stay patterns are about the same, two to three days." These travelers have higher expectations than previously. "They want connectability to their workplace," said Hebert. Also, the Sheraton is "seeing a lot of online booking and short term reservations, as little as one or two days out."

2006, Hebert said, "looks like a very good year. We are way ahead of pace 12-15 percent over 2005. People feel more comfortable with the economy less worry it will tank. They book further out, and Vermont is a unique place for a conference. It is a fresh location for corporations."

Group business travel is up 15 percent at the Inn at Essex according to general manager Jim Glenville. Transient business travel is about the same. "It's nice to see the economy is turning despite oil prices," he observed. "So far our clients seem to be unaffected. I feel our tear of hotel is less affected than a budget hotel. That traveler is on a tighter budget."

"We're very busy with a lot of short term business," said senior sales manager Jackie Ursh. She confirms that companies now book as little as a week or two out. "They're more on a budget than in the past. They are planning modest meetings and not a year in advance. There is not as much money. They think booking late might save money on rooms, but if we have rooms to fill they get a better rate."

Ursh sees a lot of small, 30 people or less, meetings at the inn on the short term booking schedule and they are arriving from New York City, in state and a few from the Midwest. They spend, on average, $200 per person per day for their room, food and beverages. They stay two nights for boardroom meetings. The late fall looks slow at the inn, which is traditionally a slower time, according to Ursh.

The business traveler today is looking for a destination and Ursh feels the inn's amenities are an asset. "We have tennis court, walking trails, NECI food here with hands on demos, private meals with the chef."

High speed access and wireless are complimentary to guests. Ursh said the biggest form of advertising for the inn is the web.

Ski areas are growing their conference business as a way to fill down times in the off season but they also find that those choosing a conference here in winter want to ski.

At the Mount Snow Resort in West Dover business in this sector is relatively good, reports sales representative Chris Edwards. With 15,000 square feet of meeting space and 192 rooms at the Grand Summit Hotel, an additional 92 rooms at the Snow Lake Lodge plus 70 condos available there are enough beds to host a good-sized conference. The resort averages over 120 meetings a year ranging from board meetings of 10-12, to groups of 1100. The clientele comes from New York and Boston staying an average two to three nights.

Here, as elsewhere, bookings are made closer in, "as close in as two weeks for board meetings," said Edwards. Associations book out 12-18 months.

What does a conference goer here expect?

"They want good snow conditions in winter and Wi-fi availability, and meeting rooms with windows. They want an outdoor experience." These guests also want functions like a barbecue on the mountain under a tent.

Edwards sees good convention business for the future.

"We're very optimistic about the next year. There is lots of demand during the ski season for business meetings, people want to come to ski." He also sees a plus in the rising gas prices.

"With gas prices going up there may be more demand for us being closer to Boston and New York, we are only four hours away."

Largest Conventions & Meetings

(For 2004, Ranked by Attendees)

The Sportsmen's Show ... 20,000

Champlain Valley Exposition

Key Bank Vermont City Marathon ... 3,600

Burlington

Vermont Business & Industry Expo ... 3,000

Sheraton Burlington

National Street Rod Association ... 2,700

Champlain Valley Exposition

Vermont Captive Insurance Association ... 1,300

Sheraton Burlington

IDX Users Conference ... 800

Sheraton Burlington

Vermont Emergency Medical Service ... 700

Sheraton Burlington

Adjutant Generals Association US Conference ... 650

Sheraton Burlington

New England Museum Association ... 602

HOG Rally/Harley Davidson ... 500

Sheraton Burlington

NE SARE/UVM Extension Service ... 500

Sheraton Burlington

Vermont Grocers Association ... 500

Sheraton Burlington

UVM Legal Issues ... 450

Sheraton Burlington

Vermont Travel Industry Conference ... 400

Source: Vermont Convention Bureau, Sheraton Burlington Hotel & Conference Center, Vermont Business Magazine.

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