< PreviousBarnhart says. “When on ships, we have [health- and wellness- oriented] shore excursion options in each port. We also plan optional outings for attendees to participate in, such as fishing, whale watching, hiking, surfing, golfing, tennis, etc.” As far as specific geographical locations, Barnhart says, “We are seeing a big demand for nature walks at our Alaska cruise meetings. Nature walks can be very fulfilling; Alaska is perfect for that. The trails are endless and just beautiful.” Properties and Venues From heightened awareness of the importance of personal health and well-being, paired with elevated expectations of the meeting experience from attendees, comes positive oppor- tunities for destination properties to up their game in support of overall wellness. Sally Mainprize, owner of Iron Peacock Events, notes, for instance, that health and wellness programs in events are included, or not, based on several factors. “With some clients, free access to the hotel fitness center suffices,” she says. “Others want a daily activity.” Physical activities and spa pampering packages may be where health and wellness programs start, but for today’s discerning meet- ing attendee, having a choice of curated activities enhances the wellness experience. In recent client events, Mainprize has incorporated morning yoga instruction, 5K runs and Zumba activities for clients. Michelle Zwirek, director of sales and marketing at Omni La Costa Resort & Spa, notes that incorporating mindfulness and active movement into programming really depends on the client and type of meeting. “A more corporate, business- focused group usually prefers wellness elements that are very approachable, like movement breaks and healthy food options,” she says. “By contrast, if it’s a conference for mental health providers, they may want to explore the more immer- sive wellness offerings like meditation or sound healing.” Zwirek emphasizes that “every client is different, so we like to collaborate with them to ensure they are aware of all the possibilities.” One popular activity at the resort has been to “incorporate elements from our Best Life-ing program, a group wellness service offered through our spa, with cus- tomizable programming available to our group clients,” she says. “Sessions can include meditation, breath work, yoga, life coaching and more as whole day, half day or a-la-carte option for attendees.” Haffey, in the video, cites the impact of customers’ chang- ing expectations of health and wellness. “It’s everything ... from head to toe, from the moment you arrive,” she says. “That includes whether or not a person smiling when they open the door, F&B — and scent is also a big deal that sparks emotion — your comfort level, [and even] how easy is check-in?” Vadam notes that the evolution of meetings has gone “from physical appearance to now wellness-related and how to improve overall health, sleeping, eating, moving and socializing well ...,” she says. Dimon recognizes that health and wellness has evolved to be so much more than spa and luxury, while Ryan finds more planners asking to incorporate elements of health and wellness into the meetings themselves, in addition to offer- ing separate amenities and activities. “Can you do a wellness zone, a Zen den in addition to healthy food choices?” she asks. “Wellness is a filter that everything is being looked through.” Well rooms, in which meeting attendees are offered a bounty of individual, curated wellness experiences within the comfort of their own guest rooms are also finding favor among planners, Haffey says. Features can include a healthy mini-bar, motivational books, mood lighting and free water, for instance. Other guests might enjoy receiving yoga mats, sleep masks, luxurious bath products and exercise programs as welcome amenities. Toward that end, Crabbe notes that the Peloton app in partnership with Hilton represents one of the biggest shifts in promoting health and wellness. It offers the concept of “connected fitness” that can deliver motivation and fitness training to guests outside of fitness centers, providing users with live and on-demand classes in yoga, meditation, cardio, strength training and more. Courtesy of Chris Reed Experts agree that as the world emerges from the COVID-19 pandemic, attendees are flocking to events that offer a robust menu of fitness and health and wellness activities. 18 January 2023 | Corporate & Incentive Travel | TheMeetingMagazines.comRyan notes Marriott’s successful launch of partnering in the digital space to promote health and wellness as well. “We have put wellness in the palm of our hands as a member- ship benefit so members can stay fit on the go with Marriott Bonvoy, which offers curated fitness classes on demand and exercises you can do in your room — meditation, yoga and visualization — among the programs,” he says. Food & Beverage For Devine, ensuring there is a wide variety of healthy food choices is also key to health and wellness. “There are so many different interests now — vegetarian, vegan, keto, low salt, low carb, etc. — you have to be careful and work to please as many tastes as possible,” she says. She adds that the cruise industry has responded “in amazing ways to the interest in health and wellness, from including more smoothie and juice bars with options for clients to choose their own shake or drink, to food choices locally sourced and prepared with health in mind.” Barnhart agrees: “Nutrition, of course, is always a consid- eration for our guests. We keep that in mind when ordering food for breaks and meals. In fact, we organize our agendas so that meal times are spent with their guests and families,” another touchpoint in health and wellness. For Mainprize’s clients, “The most frequent requests I receive are nutritional in scope, such as clean menus with flexibility, together with locally sourced, seasonal food items,” she says. “Consequently, those destinations that are willing to put the catering menus to the side and build the F&B offerings needed for the group are hitting it out of the park with meeting attendees.” From the venue’s perspective, Zwirek says, along the lines of healthful eating, one trend they have noted at the Omni La Costa Resort & Spa specifically is requests for more plant- based options for meals. So has Chris Reed, vice president of global sales at The Ranch in Malibu, California, resulting in the property’s fea- tured plant-based menu, “artfully prepared and rich in nutri- tious value to help further cleanse the body,” he says, along with cooking classes and garden tours. Authentic Experiences Beyond the boundaries of hotel lodging, today’s advocates of holistic health and wellness practices seek authentic expe- riences and activities that take guests out in nature, such as forest bathing, sustainable and green practices, and connec- tion with local culture, Uberoi says. Haffey cites hotel guests who ask where a nearby path or trail is so they can take a walk or hike, while Ryan men- tions how some guests seek areas where they can go on runs around the destination city and spas that use locally sourced luxury products. “Especially now, attendees are learning they need to put their well-being first,” Reed says. “The Ranch offers natu- ral, open-air spaces to detoxify the mind and body while reconnecting with nature. In fact, time in nature is a key component of our program, which also offers sequestered settings where guests spend their mornings hiking in the nearby mountains.” Recognizing the importance of mental health as a cur- rent health and wellness trend, Reed says they emphasize the importance of nature, which is scientifically proven to have incredible health benefits, from reducing stress to improving creativity and focus. “Our guided hikes leave guests with a refreshed and rejuvenated mind and body as they take in the beautiful scenery,” he says. “Also on tap is a daily schedule of morning stretching, hiking [built for time, not distance, allowing all ages and fitness levels to easily participate], nap time, afternoon fitness classes, yoga, meditation and daily massage. Sound baths, acupuncture and chi- ropractic services are also available, any and all of which can be custom- ized, even added into meeting pro- grams, as requested.” Experts agree that wellness travel is at the top of everyone’s minds right now. “But few are seeing it as an incredible opportunity in the corporate event space,” Ryan says. “By booking this type of experience for your team, not only are you ahead of what is becoming a huge trend, but you are also showing employees that you are prioritizing their health.” And if you’re wondering where best to begin, Mainprize offers this: “You can start small and implement changes most important to your audience — one step at a time.” C&IT Courtesy of Michelle Zwirek Whether at the beach, patio or terrace, getting outside is one of the best ways for boosting health and wellness. TheMeetingMagazines.com | Corporate & Incentive Travel | January 2023 19 Destinations that are willing to ... build the F&B offerings needed for the group are hitting it out of the park with meeting attendees. SALLY MAINPRIZE Owner, Iron Peacock EventsPlanned Properly, Events Can Contribute to the Greater Good C orporations are committed to environmen- tal, social and governance (ESG) initia- tives, and many have become vocal about the social stances they choose to take. The upshot is that corporate social reponsibil- ity (CSR), which has a much longer corpo- rate history than ESG, is getting a bit of a boost as corporate employees and event attendees start to merge their concerns about sustainability and social justice with the “environmen- tal” and “social” aspects of ESG. “People don’t want senseless team building,“ says Joanna Berens, president & Zero Food Waste Chair, Sustainable Events Network, Florida & Caribbean, and president, Joanna Berens Hospitality, Inc., a site-selection and logistics com- pany. Today, with so many team-building options that have a philanthropic component, it’s easier and more reward- ing than ever for corporate planners to take advantage of these opportunities. Conserving Coastlines “I work with both the environment and tourism at a very high level,” says Valerie Peters, director of operations at the U.S. Virgin Islands-based destination management company VIP Destination Solutions, and also an active member of the nonprofit Virgin Islands Conservation Society (VICS). For her, matching corporate groups with a CSR activity is all part of the same commitment to sustain the USVI through thoughtful tourism. Coastal cleanups are a major CSR choice for corporate groups in the USVI — the region takes three to five years to recover from a hurricane, she notes, and over the past few years, it’s undergone two, along with the pandemic. “Coastal cleanups — for us they actually mean some- thing,” Peters says. “We do data collection, and thanks to our cleanups, we have a plastic bag and straw ban and a coral-safe sunscreen requirement. So they mean a lot more than cleaning up a beach; they change how we do business and how we live.” And while some planners, particularly of incentives, may shy away from the idea of a beach cleanup, Peters finds that cruise ships and groups from the pharmaceutical and truck- ing industries are particularly keen to pitch in. “Groups are meeting on cruise ships with a stop in the island doing a cor- porate activity. It’s a different way to organize conferences.” Cruise ships for meetings makes particular sense for the USVI, not only because it’s in the obvious path of many Caribbean routes, but also because, for the time being, The Ritz-Carlton, St. Thomas and the Frenchman’s Reef, when it reopens in the spring, are the only two USVI hotels set up to accommodate large corporate groups. Vessup Bay, not far from the Ritz-Carlton, is a favorite spot for such cleanups as it gets a lot of boat traffic. “We organize shuttles, provide gloves, bags, pickers, buckets, water, compostable plates/ reusable utensils [and] biodegradable cups. For data col- lection, we have teams of four — one person collecting, one CSR Means Service INDUSTRY INSIGHT // BY SARA CHURCHVILLE 20 January 2023 | Corporate & Incentive Travel | TheMeetingMagazines.comholding the bag and two picking up trash.” The beach cleanups can also be turned into something fun, Peters says. A couple of hours of cleanup, a couple of hours of fun in the sun, all amid conversations with local conservation experts about the island and its culture. “It turns into so much more than picking up trash.” Peters’ company is now in discussions with a cruise ship of about 150 attendees expected to arrive in mid- spring. Along with a cleanup, this group will be doing man- grove planting and glass crushing for hurricane sandbags. Another available team-building activity is building pic- nic tables, benches and raised gardening beds along with an at-risk group of youths. The constructed items then go into schools, parks and public areas through the nonprofit My Brother’s Workshop, and the students get class credit and hands-on woodworking experience. “It’s an incredible life experience for kids, to interact with people who are success- ful and goal oriented, some of whom started in situations very similar to theirs,” Peters says. Groups can also have learning experiences and support projects at Coral World; donate book bags filled with school supplies to VICS’ Eco-Schools program; donate hurricane supplies; or escort an animal that is flying to a no-kill shelter for adoption on the mainland. The animal travels in a carry- on bag with the attendee, who is met by a Humane Society representative from among the USVI’s East Coast network at the airport on the other end. Lovango Resort & Beach Club, on a private island near St. John, which can host corporate groups for day or evening trips, does coral conservation-related work with the Uni- versity of the Virgin Islands and the Trust for Virgin Islands Lands, “protecting endemic species, ensuring minimal foot- print, relocating, planting in other areas.” Peters says of the resort, “They are really good partners, showing that develop- ment does not necessarily mean destruction.” Choosing Green Like the Lovango Resort, Dream Yacht Worldwide approaches CSR from a conservationist and sustainability perspective, contributing as a company to the ongoing well- being of the areas it spends time in. Corporate groups use Dream Yacht Worldwide for incen- tives, taking two to 20 boats of typically maximum six-guest cabins. Last summer, for example, a group in the gas indus- try cruised down the coast of Croatia as a fleet of 18 boats. “It’s a really unique experience with a wow factor, something people will remember,” says Dan Lockyer, vice president of tourism for Dream Yacht Worldwide. Groups can be as involved as they want in the sailing, and can engage in regattas where they race against each other. Boats all have a dinghy, stand-up paddle boards and kayaks, and attendees can stop at various beaches to play games and even get away from the group for a bit to explore on their own. But the boats have a second purpose: “After Hurricane Irma destroyed the [British Virgin Islands], as the islands were rebounding, a number of groups went to help locals rebuild, tear down derelict buildings and help rebuild houses — free labor for a week,” Lockyer says. “We have a number of companies that we supply boats to, with the agreement that if they book a certain number of trips, they can use our boats and crew to do beach clearing.” Team Building Through Bike Building “For 13 years in the industry selling team building, bike building is still the No. 1 program,” says Nanci Donahue, vice president of sales at Best Corporate Events & Team Building, which offers a portal where DMCs and planners can regis- ter to get early information about team-building programs, including pricing, to use in their own proposals. “Everyone identifies with the feeling of getting a new bike for the first time; it resonates with many people.” One recent Bike Build Donation involved 1,850 attendees at the annual summit for employees of a cloud-based supply chain software company that met in Minnesota late last year. They were divided into 185 teams, each building two bikes. For such a large group, stations were set up to make it easier for attendees to get preset materials. The teams deco- rated the bikes, and every bike was tested for roadworthi- ness before it was donated. “A lead facilitator is on stage, wel- coming, setting energy and creating excitement,” Donahue says. “Teams answer as many challenges as they can to gain as many overall points as they can. The top scoring teams are awarded gold/silver/bronze. There are certain levels of points that the teams achieve in order to claim some of the supplies needed to build their donation.” Roy Charette, managing partner at Best Corporate Events & Team Building, says the largest bike build in history took place in Las Vegas with 3,500 Lowe’s employees, who built and donated 1,058 bicycles. “For many children, it’s the first Courtesy of Dan Lockyer Dan Lockyer, of Dream Yacht Worldwide, left, says his company gives groups the chance to do beach cleanups in the Virgin Islands. TheMeetingMagazines.com | Corporate & Incentive Travel | January 2023 21bike they’ve ever had,” Charette says. “It has a big impact on the Lowe’s people to be part of that, to realize the scope of what they were able to do.” Best Corporate Events also offers Build-a-Guitar, particu- larly popular in Nashville, where as many as 3,000 attendees at once string, tune, decorate and donate a guitar along with an amp, pick and case to a local charity such as the Boys & Girls Club. Music trivia can be part of the iPad portion of the team building. Grand Geneva Resort & Spa in Lake Geneva, Wiscon- sin, also works with many corporate companies who want to incorporate a charitable aspect to their team-building activities. One such option is also a Build-a-Bike program, for which Heather Tate, vice president at real estate investment company Blue Vista Capital Management, opted for the com- pany’s annual off-site retreat of about 65 primarily Chicago- based attendees. The company has a committee devoted to “team fun.” Tate was the chair and responsible for planning an event to do at the off-site. “We wanted to do something different,” she says, particularly given that they would be cel- ebrating the company’s 20-year anniversary. Typically, the firm’s two-day event features a golf or spa option and a company dinner on Sunday, then the confer- ence room on Monday for goal setting, business updates, accomplishments and strategic initiatives. “Then everyone needs a mental break,” she says, which is a perfect time for the team fun component. In past years, activities included three-legged races, kickball tournaments, escape rooms and scavenger hunts. “Build-a-Bike sounded fun, and that it would be gifted just made it even better,” Tate says. “Not everyone wants to do a run/sprint/kickball thing. This caters to more personalities.” This was the company’s first year centering the team fun activity around a CSR component, and Tate worked with the Grand Geneva event staff to organize the 65 participants into multiple groups to work through various team-building challenges, including one to build a standing structure out of spaghetti, duct tape, string and a marshmallow. “At the end, we got to race the bikes, tested them to make sure they are roadworthy, and ended up with 13 or 14 bikes that we donated to Treehouse for Kids, a not-for-profit that helps protect children who experience child abuse and neglect.” A representative from the nonprofit also came by to chat with the group. “It was a fun, memorable event that opened some eyes,” Tate says. “Everyone was very excited. We are a very competitive group, and we were still able to flex our competitive muscles. Going forward, it can expand what we think of as fun — being competitive while making an impact.” The company also embraces CSR back at home. “We have an internal ESG committee focused on implement- ing sustainability initiatives across our real estate invest- ments,” she says. The company has also launched a social impact fund “dedicated to providing capital to women and minority-owned companies to grow their real estate busi- nesses. Our knowledge of the market and resources allow us to provide capital and mentorship to these companies that are looking to grow” Bridging with Golf Another popular team-building option at Grand Geneva Resort & Spa, is Putt for Hunger. Last fall, the resort hosted a “Putt for Hunger” session for 75 attendees from industrial tools company, Enerpac. “Groups are divided into teams and are given a 3-by-7-foot area of putting green. Using the limited space, goods and materials, teams are then instructed to start building their own course,” says Allyson Carlson, experience activity facilitator at Grand Geneva. “The goal is to make it easy enough for their team to make a hole in one, but difficult enough that other teams cannot. Once building is complete, the teams go around and play each course, competing against each other for the best score.” She continues, “We had ini- tially scheduled for the event to be hosted indoors, however, we switched to outdoors. The energy of Enerpac was conta- gious. The competition was strong, but easygoing. And in the end, everyone helped to load up the van with all the food.” Ultimately, the resort’s nonprofit partner, Walworth County Food Pantry and Diaper Bank, got 500 pounds of nonperishable goods. Building Cars, Beehives and Memories CSR team-building organization Impact 4 Good hosts some 24 to 36 programs a week, and offers a “cause wheel” Courtesy of Ira Almeas Impact 4 Good builds cars from kits that are then donated to kids. 22 January 2023 | Corporate & Incentive Travel | TheMeetingMagazines.com Find out what the community needs and how the donation will make an immediate difference. IRA ALMEAS, CITE President Impact 4 Goodthat allows planners to choose the CSR activity that best aligns with their own corporate focus. Among the most pop- ular is Go GREEN Racing, which supports STEM education. “It’s extremely competitive,” says Ira Almeas, CITE, presi- dent of Impact 4 Good. “There are three tasks the teams have to complete within a certain time, such as assembling solar car kits for children … and building two different cars made out of recyclable materials. Each team races both cars in a bracket-style tournament. We can do this for eight people or over 1,000 people.” Ultimately, both the kit and the built cars are donated to local schools or after-school programs. “For us, the emo- tional connection is just as important as the tangible dona- tion. When you find out that one of the attendees’ families have relied on their local food pantry to get them through the week, that hits home,” Almeas says. “When it impacts actual employees and they connect with what we’re doing, that to me is a success story. A youth that receives a bike, but the bike allows them to help their family with an after- school job, this donation became a tool for them to succeed.” Beehive making is one of many other team-building options Impact 4 Good offers. Teams learn about colony col- lapse, create hives and help support bee farmers. “Vetting the community is equally important, as the team-building activity that they might also want. Make sure it’s meaning- ful,” Almeas says. “Don’t just stuff bags and find someone who wants what you want to give out — find out what the community needs and how the donation will make an imme- diate difference.” Waste Not, Want Not In addition to her work with Hospitality Inc., Berens is entering her second year as president of the Sustainable Events Network, Florida & Caribbean. She had a wake-up call when, while handling the F&B budget for an opening reception for a group of international attendees, she realized they didn’t have an accurate head count for the $200-per- head event. “I said, this is killing me, watching so much food going to the back of the house. I cannot stand to see the waste. I was told it was against corporate policy to donate food, and I realized we’ve got a logistics problem: way too much food in this industry, meanwhile kids with not enough to eat.” This led her to the zero-food-waste movement, where the goal is ideally not to have leftovers, or at least to have a designated place for extra food other than the waste bin. Some hotels have begun to embrace the move toward zero food waste. The Hyatt Regency Orlando, for example, piloted a brief program in which they analyzed attendees’ eating pat- terns at the first meal and adjusted their production based on this; instituted a “meal of the day;” served smaller plates and offered less preplaced food, like bread, that can’t be donated once it’s been set out. The hotel also regularly donates to the Second Harvest. Of course, there is always an inherent tension at work with food rescue. Having to ask for iced tea because the table is not already set with it inevitably slows down service and increases the chances that attendees will be unhappy with both the speed and the perceived attentiveness of the expe- rience. Still, Berens says, “our mission is to get chefs and sous-chefs to just have it endemic to the host hotel or cater- ing operation” to be mindful of how much food there is and where it’s going. “A number of hotels and catering operations participating in food rescue are starting to embrace the compost side of things with anaerobic digesters, for example,” Berens says, adding that some 100,000 pounds of food was rescued from the Super Bowl LIV halftime show in 2020 at the Hard Rock Stadium in Miami Gar- dens, Florida. “There’s a trend with opera- tions trying to get on the stick,” she says, men- tioning Florida conven- tion centers in Broward County, Miami Beach and Greater Orlando as examples. Berens offers these tips for planners moving toward less food waste: • Add food rescue to both the RFP and the contract itself. • Know your group; keep good records of attendee- eating patterns. Are the various food functions com- pulsory or optional? How often do people eat and where? Will the local attendees stay for lunch? • Consider offering breakfast vouchers for the on-site restaurant instead of a separate buffet. • Repurpose continental breakfast for breaks. • Offer an outlet credit rather than a planned private lunch. “Any of these practices are not meant to take away from the revenue intentions of the venue you have chosen or detract from the integrity of the contract,” Berens says. “Some hotels do not consider outlet credit to be part of F&B minimum, for example. But you can strategically plan — upgrade the wine; switch the beverage to full open bar for two hours; serve beef instead of chicken; offer a champagne toast.” She continues: “The planner audience is the one moving the needle,” Berens says. “If you start demanding this, the venues will have to shift to meet your needs.” C&IT Courtesy of Joanna Berens Joanna Berens says one of her passions is the zero- food-waste network, which seeks to limit food waste at meetings and conventions. TheMeetingMagazines.com | Corporate & Incentive Travel | January 2023 23Planners Adopt New Budget Tactics After COVID-19 T he past nearly three years have been trying times for meeting and event planners, to put it mildly. Of course, the COVID-19 pandemic brought things to a grinding halt in 2020, and though it seems we’re heading out of the pan- demic to live more normal lives, a host of chal- lenges continue to present themselves. “The pandemic has created quite a bit of turmoil for the events industry. We all have to be more creative when it comes to the overall look and feel of events,” says May Yeo Silvers, the COO of M2 Hospitality LLC and founder of Events4Anyone. “We are experiencing a shortage of labor, so the level of service is not what it used to be. To counteract that, we need to reprogram the events in a fashion that is not labor-intensive, such as reducing the number of changes in the room setup and utilizing menus that are self-served.” There’s also the need to make it attractive for people to attend meetings and events virtually, which can further reduce the cost of the event since there are fewer mouths to feed, fewer people to service, and there is less space needed. However, those savings might be offset by soaring production costs for online and hybrid meetings. It’s important to always remember that the challenges of the pandemic can be navigated, and planners who apply their experience and creativity to events are seeing success by put- ting in the hard work, especially when it comes to sorting out budgets after the pandemic. “We have been working with our clients to mitigate risk around shifting back and forth between virtual and live formats,” says Matthew Byrne, CSEP, founder/presi- dent of Byrne Production Services. “In our budgeting process, we identify key dates to make decisions on for- mat and shift to that budget as we need to. Additionally, with the uncertainty in supply and labor resources, we are The Cost of Doing Business INDUSTRY INSIGHT // BY KEITH LORIA 24 January 2023 | Corporate & Incentive Travel | TheMeetingMagazines.combacking up timelines for confirmations to secure equip- ment and personnel.” Changing With the Times In 2023 and beyond, planners must be aware of the mar- ket demands across the industry, and they should communi- cate with vendors early and often and be as specific as pos- sible when talking about the needs of their clients. “Every one of your vendors wants to work with you and make your event go flawlessly, so engage them early to make sure they can provide the support you need,” Byrne says, adding that success also requires flexibility on the part of planners. One of the key changes he’s seen since the pandemic is the increase in pricing for and availability of A/V equipment and resources. “While the resurgence of events is a welcome thing after two years, resources are in high demand, and that’s driving price increases,” he says. Melissa Park, global event producer at Melissa Park Events, says her firm is dedicating more time than ever to client education, which involves briefing clients on the state of the industry and the impact that is having on budgets. “Prior to the initial kickoff meeting for every event my team produces, we sit down with our clients to clarify their mission, define any non-negotiables and outline their goals and key performance indicators (KPIs),” Park says. “Based on this information, we get to work creating an event concept, their program and a preliminary budget.” The next step of her process includes scheduling time with clients to walk through each document, slide by slide, tab by tab, line item by line item. She does this so the client knows how each and every dollar is being used to create expe- riences that are guaranteed to achieve each client’s business goals and exceed the expectations of attendees. She explains that this doesn’t represent a change to her process, but she has added two additional tabs to her conference budget template, which is now loaded with 19 tabs, 15 column headers and more than 500 itemized expenses — everything that is required to deliver a virtual, hybrid or COVID-safe, in-person event. “The thing to remember is that budgets haven’t necessar- ily increased in line with the cost of producing two events in one [for hybrid events] or paying for daily rapid tests for hundreds or thousands of attendees, and PCR tests for each of your international attendees,” Park says. “Because of this, I make it a habit to highlight all of the ‘nice-to-have’ expenses, so that way, if I need to reduce spending, I know instanta- neously which line items — like non-essential signage, sig- nature cocktails, a reduced number of branded activations and theming, excessive entertainment — I can eliminate that won’t impact the actual delivery of the event.” The Effects of COVID Paul Dolce, vice president of hospitality for Arch Ameni- ties Group, says the pandemic and its aftermath have led to a trend toward more realistic budgets because clients have recognized that costs have gone up for travel, food, lodging, venues, production and wages. “And now with inflation, and unsettling world events, costs are rising even more,” he says. “So, I believe that meeting planners connect the dots and rec- ognize that they have to be practical in budget planning. We are seeing this at our Meet Hospitality locations.” Byrne notes that the availability of labor is one of the key challenges planners continue to face as we enter the post- COVID era. “Skilled labor has left the industry in droves over the last two years,” he says. “As such, we need to make sure we are recruiting and paying livable wages to our crew and staff to make sure we can retain them. A lot of clients and organizations are finding themselves without qualified per- sonnel once they confirm an event or meeting.” Keep in mind that a lot of people in the meetings and hospitality industries found other ways to earn incomes during the pandemic, and they are staying on those paths instead of return- ing to their old jobs. “Because of that, the service and hospitality industry is experiencing a crisis in delivering the customer service we used to deliver pre- COVID,” Silvers says. “Now, we have to pay a lot more for each event if we want to regain the level of service we used to have as people are demanding higher pay and benefits.” Those costs, she further says, are trickling down to planners. Cost Considerations When budgeting client meetings, Valerie Bihet, owner, director of VIBE Agency, says her first rule is to limit the per- centage of the budget that is spent on hotel accommodations. Courtesy of Valerie Bihet Valerie Bihet, left, owner, director of VIBE Agency, suggests asking the right questions can help avoid budget issues. TheMeetingMagazines.com | Corporate & Incentive Travel | January 2023 25“If your hotel is more than 30% [of your budget], you’ll have to cut on decor, food, transport, etc., and you’ll be tight,” she says. “Just as when you spend more than 30% of your income on your mortgage, you know you’ll have to cut back in other areas of your life. It’s the same in an event.” This connects to the importance of staying in touch with clients and knowing what their priorities are in terms of the event. “Do they care more about providing activities for guests or giving them free time?” Bihet says. “Do they want to provide food and beverage for all meals or only a couple? Answers to these questions can adjust how much you spend on the hotel and its amenities, and therefore the rest of the budget. Now with inflation, you need to be even more conscious of that. Compared to where we were in 2019, things are more expensive. We are seeing huge increases in all areas of events.” In fact, she says the hotel industry is extremely busy these days as meetings and events ramp up again, which has resulted in increased costs for room blocks. “Also, there is less availability because all the events we had planned for 2020 and 2021 that got moved to 2022 [and 2023] are using the inventory for any new events we are trying to do.” One of the biggest challenges in terms of budgeting is tracking the pricing evolution from year to year and avoiding hidden costs when using budgeting templates. “For example, some hotels have attrition based on room nights, whereas others do it on room revenue,” Bihet says. “The difference between these two approaches can greatly affect the bud- get. Similarly, hotels tend to charge tax on gratuity, and now more restaurants are starting to do that as well. When you work for international conventions, the clients don’t always understand that, so you have to educate the clients even more about U.S. taxes and how the line-item price can vary when the actual bill comes because of taxes and gratuity.” Her key piece of advice is to “know what you buy and how to negotiate reasonably while still keeping your relationship with the vendor or venue.” Post-COVID Budgeting The meetings and events industry is still feeling the effects of the pandemic, and that requires diligence when working with clients on budgets. “We are taking into con- sideration the additional costs such as on-site COVID- testing services, incorporating livestreaming, and being extra cautious with the financial implications for the pos- sibility of rescheduling or canceling the event if there is another uptick of the COVID cases,” Silvers says. “My strategy is to have very open and honest conversations with my cli- ents about their expectations for the return on investment if they plan to host an in-person event — and how to get additional sales by incorporating a virtual component of the event and work out a mutually agreeable arrange- ment with the venue and vendors so all parties can mini- mize their financial risk.” She adds that communications between all parties involved in the planning process is of vital importance. “The things that can quickly get out of control and blow your bud- get include food and beverage, and this happens when you don’t stand firm on the final number of people you want to have at the event,” Silvers says. “Another thing that could get out of control is not understanding how much things cost. For instance, if you require a motivational speaker for your sales conference, it can cost as little as $5,000 or as much as $50,000. Set your expectations on what caliber of speakers you want to engage. Do your homework and find the best one that is within the budget.” There are also many who are spending a lot of energy resources on making an event look “sexy or entertaining” to get people to come, when that often isn’t the most effec- tive approach. “Understand what is the ultimate return on investment you want to achieve for the event, then decide if the extra money you want to spend on ‘experiential market- ing’ — which is also known in the events world as anything that engages the emotions of your attendees — is worth going over the initial event budget,” Silvers says. “For instance, is it really necessary to have a vending machine that disperses a $75 baby bottle of champagne as a gift for each attendee? Or can we do artisanal, company-branded truffles with exotic flavors that cost only $25? As an event strategist and planner, sometimes you have to check your client’s ego and ask if what they want is what the attendees want.” Challenges Beyond COVID As if a pandemic that sent the world into lockdown and essentially ended in-person events for nearly two years isn’t enough, the meetings industry is also dealing with an array of challenges that are presenting problems when preparing events, while also adding to their costs. According to Dolce, many meetings and events are being planned with short time frames, which can make things difficult for planners. “Lead times to find meeting space and hotels, make travel arrangements, and book speakers Courtesy of May Yeo Silvers May Yeo Silvers says planners now must be more creative to budget properly. 26 January 2023 | Corporate & Incentive Travel | TheMeetingMagazines.comand facilitators is increasingly compressed, and thus more costly,” he says. “And many clients want to budget for flexibility, which also drives costs.” Park says another one of the biggest challenges meeting professionals are facing these days is supply-chain issues. “Earlier [last] year, I had a company quote on a large fea- ture that would be part of one of my general session stages,” she says. “Approximately six weeks passed from the initial quote to when we would have placed the order, and in that time, the vendor contacted me on three separate occasions to increase the quote.” She also echoes that staff shortages are presenting numerous challenges. “Unfortunately, a very large number of event, entertainment and hospitality staff lost their jobs due to lockdowns and the cancellation of large gatherings,” Park says. “Many of those individuals have decided not to return to their respective industries. On the other end of the spectrum, many contractors and freelancers are now charg- ing a lot more than their pre-COVID standard rates. Due to the shortage, companies are left with little choice but to pay exorbitant fees to hire skilled professionals to enable them to successfully deliver their events.” Tips for Success Successful planners have a passion for their work and for organizing effective events that fulfill their clients’ needs. But for many of these professionals, budget man- agement isn’t their favorite part of the job. If that describes you, the good news is that by taking the right steps, you can simplify the budget management process. “Budget man- agement doesn’t have to be difficult or complicated, nor do you need to be a mathematician to do it well,” Park says. “It comes down to giving every dollar a job, so you know you’re investing in all the right things to host a show-stop- ping experience.” She offers some key tips for staying on budget, starting with negotiating. “Most vendors and suppliers add a little cream to their quote,” she says. “Don’t be afraid to push back and ask for better rates or a discount. What’s the worst they can say, ‘No?’” If you come in under budget, add a line item in your mis- cellaneous tab titled “Backup” or “Bank” and add the line difference there. “You should never agree to a budget that doesn’t have a little padding,” Park says. “With live events, one wrong move can cost tens of thousands of dollars. What- ever you do, do not set yourself up for failure.” For items with lower costs, Park asks her main partners — the general show contractor, the venue, caterer and A/V provider — to confirm that their tabs outline every single cost associated with the delivery of the event, and, most impor- tantly, that they are accurate. “Doing this not only holds them accountable to their anticipated cost, but also makes them feel and behave like the integral part of the delivery team that they are,” she says. And though this may take some time to set up, she recom- mends using formulas from the start to automatically calcu- late all of your totals. “Doing this will remove a lot of margin for error, and save you time down the track if you need to manipulate the budget to show the impact of multiple audi- ence sizes,” Park says. Dolce suggests taking advantage of special offers that a hotel or meeting venue is offering and being realistic about attendee count. “Do not over-inflate, or you will likely be hit with cancellation or attrition charges,” he says. “Look for venues that offer a meeting package — at Meet Hos- pitality, we offer various levels of our Day Meeting Pack- age, per-person, per-day and price-related to your meeting experience, as well as continuous breaks, meals, conference space, A/V and technology, and a conference and meet- ing support team.” A Different Approach If you want to keep your budget under control, Bihet, who was born and raised in Paris, suggests thinking like a Euro- pean. “We tend to be very detailed right away compared to the American approach with budgets, which is usually more broken down by bigger chunks of categories,” she says. “I say go line-by-line.” She also warns against estimating, even if there’s a rush to the event. “I tell the client we need more than 48 hours because we want to guarantee pricing in writing from ven- dors rather than estimate it,” Bihet says. “Those who are rushing to just get it done and give ballpark numbers tend to have issues later. With the problems we’re having now with delivery, staffing and equipment, it’s important to realize that pricing is not the same as where it was in 2019.” Finally, she suggests that 10% of the budget should be set aside as a miscellaneous line item. “Clients tend to want to remove it, but it’s always needed to be sure you have room to move around things when, not if, it’s needed,” she says. The lesson to learn is that the challenges of 2023 and beyond can be overcome, and successful planners cer- tainly have what it takes to navigate these difficult times. In fact, it already says something about you and your business if you’ve managed to stay afloat during these unpredictable times. As Park puts it, “If you survived the last two years, I can guarantee you are savvier than ever.” C&IT TheMeetingMagazines.com | Corporate & Incentive Travel | January 2023 27 In our budgeting process, we identify key dates to make decisions on format and shift to that budget as we need to. 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