Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Marilee Crocker
    • Paul M. Ruden
    • Dori Saltzman
    • Kelly Fontenelle

Memo to Travel Agents: Don’t Overlook Meetings Travel For Growth

by Richard D’Ambrosio / November 03, 2016

The global small meetings market amounts to about $11 billion annually – and it offers a rich opportunity for smart travel agents to build their business.

Even companies that are sticklers for following corporate travel policies on business trips usually do not have a formal process for small meetings. But managing these “rogue bookings” can bring both cost savings and extra benefits, and win over new customers for the agency that delivers them.

“There is huge potential and a lot of opportunity to grow, especially for smaller agencies, since the majority of the unmanaged meetings and events business currently goes either direct or through smaller agencies,” said Oliver May, global lead, Meetings Incentives, Conferences and Exhibitions (MICE), for HRS Group, a hotel technology company based out Cologne, Germany. May helps shape HRS’s MICE strategy, offering direction in terms of product roadmap, client services, marketing initiatives and operational efficiency.

Travel agents trying to win the meetings business of small-business owners and entrepreneurs need to be persistent and willing to adopt technology. And they need to proceed methodically and slowly.

Meeting and event planning is a growing business for First in Service (F1S) in New York City. The company books on average about 250 meetings year, averaging 25-50 people per booking.

“We handle everything – trainings, product launches, sales incentives, employee retreats, executive management meetings, road shows and VIP events,” said CEO Fernando Gonzalez. On the corporate side of the agency, meetings are the largest area of sales growth.

“The bulk of our corporate clients are small to medium-businesses, in the $1-5 million travel budget range. We work with some of the leading luxury brands in the world, in addition to entertainment, production and media companies.

“In the past most clients allowed their admin or marketing teams to handle this sector in-house through personal relationships with a particular hotel. But they found that they weren’t getting the best deals or weren’t even aware of properties that should have been considered. We can leverage the best terms because of our relationships and experience in the business.”

Building a meetings business will test sales and management skills
While the opportunity is large, May said, it takes some work by a travel agent, especially as the agent initiates sales discussions with senior management. “They’ll need to get all the key stakeholders involved,” May said, including finance, procurement and the company’s in-house travel manager, if there is one.

“But smaller enterprises might have a better chances to align processes more quickly as they can introduce new processes faster than large enterprises. The initial alignment with the relevant stakeholders is likely to be easier in a smaller company, too,” May said.

Focus on solving each stakeholder’s pain points; “if you make their lives easier, that helps get them on board,” May said.

Slow and steady keeps the business
Agents shouldn’t seek to change a company overnight. May recommends a six-month pilot, rolling out and testing new procedures. “One year after rollout, sit down with the high-level executives and review their meetings data,” he advised.

And remember that travel is a very emotional thing, and people have their own alliances that you will need to change. Give the client’s employees time to adapt to the idea of using one agency before you push them to preferred suppliers, he suggested.  After the first year, perhaps, “a company can look at its suppliers and spend, and try to negotiate with hotels,” May said.

Agents might also want to explore what technology products their consortia or other business partners provide to help manage what can be a labor-intensive business.

“Agencies will need to embrace technological solutions to simplify and streamline the process for both their customers and themselves,” May said.

Gonzalez at FiS agreed. “Right now we are beta-testing a new product that eliminates sealed bidding [for a client’s meetings business], so suppliers have to be as competitive as possible upfront,” he said.

Don’t be intimidated by large competitors
Recently, American Express Global Business Travel delivered a marketing e-mail that tried to proclaim that large travel-management companies are best suited to serve corporations of all sizes. But Gonzalez is finding that being more nimble and close to the client has been an advantage for his firm.

“Being a smaller boutique-style company is a huge advantage in meeting planning today. As our name implies, service and relationships are paramount,” he said. “We take the time to understand each client’s business model and corporate culture. From there we design a custom product.”

  2
  0
Related Articles
Hilton Enters Meeting and Events Market with New Brand
Selecting The Right Venue For Meetings And Events
Marriott Turns Its Focus To Meetings
Airbnb Partners With Amex GBT, BCD and Carlson For The Corporate Market
Face-to-Face Time Drives Destination Decisions, Survey Says
Designing Meetings: Consider the ‘Why’
New Campaign Defends Meetings Industry
Why Blending Biz Travel & Meetings Makes Sense
Strategic Meetings Management: Key to Cost Savings
Peabody Orlando to Become a Hyatt Regency

MOST VIEWED

Brought To You By
  1. A&K Purchases Crystal Ships, Revives Crystal Cruises Brand
  2. Travel to Italy Is Officially Back to Normal
  3. CDC Adds Three Caribbean Destinations to “High-Risk” COVID-19 List
  4. Viking Drops Onboard & Pre-Cruise COVID-19 Testing
  5. European Countries Will Soon Start Requiring Inbound Travelers Pay a Fee Prior to Travel
  6. Three Cruise Lines Bring Masks Back in Alaska

MOST EMAILED

Brought To You By
  1. Travel to Italy Is Officially Back to Normal
  2. Report: U.S. to End COVID-19 Air Travel Testing Requirement
  3. European Countries Will Soon Start Requiring Inbound Travelers Pay a Fee Prior to Travel
  4. A&K Purchases Crystal Ships, Revives Crystal Cruises Brand
  5. Japan Could Boot Tourists Who Disobey COVID-19 Rules
  6. Viking Drops Onboard & Pre-Cruise COVID-19 Testing
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

TMR Recommendations
Daniel Zim
Zim Travel Law, PLLC. Demystifying Complexity with Down to Earth Advice. Attorney Advertising.
hbar
Rodney Gould
Rodney E. Gould concentrates in travel and tour-operator litigation and regularly counsels travel-related entities worldwide.
hbar
Tom Carpenter
Carpenter Law Office - Representing clients in the travel and tourism industries. Attorney Advertising.
hbar
Top Stories
Travel Advisors Discuss Challenges – and Solutions – at TMP East 2022
Travel Advisors Discuss Challenges – and Solutions – at TMP East 2022

Advisors traded challenges and solutions during a peer-to-peer session at TMP East in Toronto.

Read...
Staffing Remains the Biggest Issue for the Travel Industry
Staffing Remains the Biggest Issue for the Travel Industry

Almost every single service sector worldwide is struggling with staffing issues and the travel industry is no exception.

Read...
Marketing, Engagement, & Partnerships Lead Discussions as TMP East Opens
Marketing, Engagement, & Partnerships Lead Discussions as TMP East Opens

The two-day conference provides attendees a packed schedule of general sessions, TED-style talks, panel discussions, a packed trade show floor and more.

Read...
U.S. Travel Association Names Roger Dow’s Successor in Geoff Freeman
U.S. Travel Association Names Roger Dow’s Successor in Geoff Freeman

Freeman will take the reins on Sept 1, taking over for Dow who is wrapping up a 17-year tenure as U.S. Travel’s leader. 

Read...
Legislative Day 2022: Two Big Priorities for ASTA’s ‘Most Significant Day’
Legislative Day 2022: Two Big Priorities for ASTA’s ‘Most Significant Day’

More than 230 travel advisors from 47 states came to D.C. for this year’s Legislative Day, just three states shy of its 50-state goal. 

Read...
What to Know About Shipping Luggage Ahead of Travel
What to Know About Shipping Luggage Ahead of Travel

Shipping luggage is safe and reliable, but there are some things to avoid. 

Read...
TMR OUTLOOKS & WHITE PAPERS
CP White Paper
Multi-Gen Outlook
Distribution Outlook (1)
New to Cruise Outlook
Expedition 2020
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/QTPIinGDcIY/0.jpg
Video: Can Booking Bachelor and Bachelorette Party Groups Be Profitable for Advisors?
About Travel Market Report Mission Editorial Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News|Leisure Travel|Land Vacations|Cruise|Canada Retail Strategies|Well-Being|Luxury|Training
© 2005 - 2022 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy