A shrinking budget relocates a meeting faster than a speeding bullet, according to Tom Stiles.

“It’s a sign of the economy,” explains Stiles, vice president of advertising, West Coast, for the Santa Monica, CA-based Nickelodeon Kids & Family Group.

With meetings under intense scrutiny and budgets ever tightening, planners are detouring from first- (and even second-) tier cities, making stops in off-the-beaten-path destinations and hotels to stay under budget and under the radar.

Stiles recently shifted his focus from a popular, upscale (more expensive) ski town that hosted his annual client appreciation event for the past several years. He searched the lesser-known mountain resorts before selecting the Westin Monache in Mammoth Lakes, CA. Mammoth Mountain, a ski resort, is in the heart of California’s Sierra Nevada mountain range. The Westin Monache Resort, Mammoth is just steps away from the resort village and The Village Gondola.

Instead of providing roundtrip transportation, Stiles instead encouraged attendees to bring their families and make the scenic five-hour drive on their own dime, covering all expenses upon their arrival. He didn’t lose the momentum and success of previous meetings, yet he remained mindful of his newly reduced budget.

“It was a win-win,” recalls Stiles. “The Monache was receptive to negotiations, and our 125-plus attendees took over the property. As the ‘big fish,’ we received the undivided attention of the staff, making the attendees feel even more important. Everyone enjoyed the same amenities as the last meeting, but in a more intimate setting, and I was able to stay within the new budget.”

Christy Beck, director of operations for The Village at Squaw Valley near Lake Tahoe, CA, says that many corporate groups are rate-driven and on a tight budget at the moment. Instead of turning them around, Beck is trying to be more creative.

For example, Beck says, “We entice groups by incorporating necessities into their rates, such as breakfasts, break service and complimentary basic audiovisual needs. We also try to be very flexible with the groups on such matters as cut-offs, deposits [and] attrition percentages.”

Other mountain resorts are also turning on their creative juices. For example, at Park Hyatt Beaver Creek Resort & Spa in Colorado, qualifying meetings booked and held between now and March 2010 will receive a 10% rebate to the master account for every actualized guestroom.

Abby Tammen, CMP, associate executive director of the Charlottesville, VA-based National Association of College Auxiliary Services (NACAS), says her group rarely meets in the larger hubs, instead discovering that second-tier cities like Colorado Springs have long offered many economic advantages, where negotiation is business as usual.

Tammen says Experience Colorado Springs, the local convention and visitors bureau, has maintained constant contact since her last event in 2003.

“That’s more than six years!” she says. “Smaller CVBs and hotels have always worked harder to get my attention. Colorado Springs was determined to re-earn our business, and, as a result, we are returning in 2010 to The Broadmoor.”

Cost-savings benefits at many of these resorts include utilizing already-established indoor and outdoor themed and unique meeting locations, resulting in more negotiation leverage for food and beverage contracts. Tammen also saved transportation costs because The Broadmoor’s extensive meeting space gave her plenty of room to host her group’s gala event, eradicating the necessity of an off-site venue.

In addition, The Broadmoor is easily accessible, with non-stop flights directly to Colorado Springs Airport, or from anywhere in the United States through Denver International Airport, just 90 minutes away. Tammen’s event might not use all the space, but she reports that she doesn’t feel swallowed up with so many smaller meeting rooms, nooks and crannies available to create an intimate setting for breakouts.

With 1,200 attendees, NACAS is frequently a citywide in a second-tier destination, but, Tammen says, “Networking was enhanced at The Broadmoor, as meeting attendees stayed together, even during off hours. Add in the level of service at The Broadmoor and its performance guarantee, and I’m also able to relax and let the great staff here spoil my attendees.”

The Broadmoor takes pride in its high standards, according to John Washburn, vice president of sales and marketing—so much so that this resort has taken an aggressive stand by articulating its value in today’s market. In an announcement earlier this year, President and CEO Steve Bartolin debuted the property’s promise: “The Broadmoor Meetings Guarantee. Your Meeting is Exceptional. Or It's Free. Period.”

“Our guarantee is yet another example of value-proposition,” Washburn explains. “We don’t look at the meetings guarantee as a risk. We know the quality of our facilities and dedicated employees and understand the expectations of meeting planners. We’re willing and able to meet those expectations and back them up with a guarantee. Especially when times are tough, the lines of communication must remain open between planners and the hospitality industry. Planners should be upfront about their expectations and bottom line and trust us to treat that information with respect.”

Colorado Springs and similar destinations are facing a unique challenge in today’s economy, according to Chelsy Offutt, PR manager for Experience Colorado Springs. First-tier cities are offering low rates as a direct response to the economy. Yet Colorado Springs has always been a value destination, with standard rates below those of first-tier cities. Colorado Springs is answering the challenge by staying its course.

“We’re letting planners know that we have been and will continue to be a value destination, long after the economy recovers,” Offut says. “We also remind planners that Colorado Springs offers first-tier city amenities at second-tier pricing, without the sometimes off-putting public image. That’s two positive marks for a planner to present to management.”

“While ‘access’ remains important to get attendees to the meeting,” says David Gabri, president and CEO of Associated Luxury Hotels International (ALHI), “second- and third-tier destinations have extraordinary values, as these destinations and their hotels are typically last out of a down market. This still makes negotiations the advantage of buyers. In this market, that means really good deals on programs booked now and for the future.”

ALHI’s portfolio of more than 125 resorts and hotel offers nearly 90,000 rooms and over nine million square feet of meeting space in both first-tier and off-the-beaten-path destinations, such as Amelia Island Plantation in Northeast Florida. This seemingly remote property overlooks the Atlantic on the east and Intracoastal Waterway on the west, yet it’s just 29 miles north of Jacksonville International Airport.

Paul Dake, director of Amelia Island Plantation’s conference sales, says, “With the destination nature of resorts, groups can find family-oriented programs, recreation to encourage interaction between attendees, and a greater lodging value with a wider variety of amenities. Plus, many resorts will negotiate meeting and exhibit space rental, as they are often more dependent on conferences to ensure selling rooms and driving banquet revenue.”

There is no question that, in the current downside economy, luxury and budget hotels alike, along with their destinations and CVBs, are willing to do almost anything to secure meetings business. However, instead of negotiating with first-tier cities, many planners are steering their meetings toward “big fish in a little pond” destinations to shave dollars off the budget and stay under the public radar.

For more than 12 years as a Denver-based freelance writer, Diana Rowe has written and published hundreds of articles and is a frequent contributor to the meetings trade magazines. A member of the Society of American Travel Writers, she also frequently covers the travel industry for other publications, such as Business Traveler and American Cowboy. She’s a blogger, tweeter and general social media addict who loves to travel! Check her out at www.dianarowe.com or follow her at www.twitter.com/dianarowe.

Photo: The Broadmoor, Colorado Springs, CO.

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