Your Meetings & Events program may have been able to operate on a self-funded basis for many years, but times are changing. Many corporations have leveraged hotel commissions to help fund or offset the cost of their meeting management programs. But with the recent announcement by several hotel chains to lower the amount of commissions from 10% down to 7% (and we’re not sure how much further this will go…) many organizations are scrambling to find ways to help offset the costs.
In a recent Global Business Travel Association (GBTA) Meetings Committee survey of medium to large companies across industry verticals, 50% of companies responded that they rely on commissions to support some part of their meetings management program.
5 Tips to consider
1. Know the total realm of your meetings management expenditures.
If you don’t have visibility across all of your meetings expenditures then you are missing opportunities to properly fund your meetings program. Small or simple meetings might not be as complex, but they occur much more frequently and the spending adds up quickly.
2. Dig Into Your Expenses
Your meetings management programs costs your company something. Learn whether your meetings program is funded by hotel commissions or by internal resources supplying the labor. Clear insights into the total cost of operations for your meetings program will lead you toward a balanced budget.
3. Hotel Supplier Rationalization
Just as you would leverage your buying power on the transient side of the business, let your meetings volume also affect pricing. Data has shown that many companies source their transient hotels separately from meetings hotels – leaving money on the table.
4. Credit Card Rebates & Basis Points
How are you paying for your event costs? If you are using a Purchase Order or invoice process and have not considered switching to some form of credit card payment, then you are missing out on valuable rebates and additional basis points available if you can consolidate your spending and drive the process through a single payment platform.
Many companies will use sponsorships to offset the cost of the event. Have you considered leveraging a supplier sponsorship to offset the cost of your meetings program?
For more ways to make your meetings dollar go farther, check out Top Signs You Are Spending Too Much on Meetings.
When all else doesn’t seem to work, speak to a meetings management expert. You wouldn’t hire your uncle to decorate your new house (unless that was his profession) so why leave your meetings in the hands of someone without the necessary skill or access to tools used by the pros? Get in touch with Travel Leaders Corporate for expert help with your company’s internal and external meetings.
Ready to speak with a corporate travel expert about how you can better manage your business travel? Get in touch with us to schedule a phone consultation that can help lower costs and improve employee productivity.