Virtual events rule the meetings world at the moment, but that will change as face-to-face gatherings return—likely in a hybrid capacity for some time to start. When they do, meetings managers and planners need to consider new design elements and costs as they're putting their budgets together.
One trend meeting experts see is the shift in spend from food and beverage into technology. Though virtual meetings are less expensive than in-person ones, hybrid meetings will have costs for both elements, and those can become hefty the more complex the meeting.
"For some organizations, there was the naïve belief there would be no cost to this. You could just do a Webex, a Zoom, or whatever," said global VP of American Express Meetings & Events Linda McNairy. "But when you're really looking at driving that event experience, delivering enhanced content, there's a production element and costs associated with that that folks don't know about or have the experience to predict. I've had a lot of conversations with customers to supply the right technology and how to budget appropriately for that."
A senior manager with a pharmaceutical company held a hybrid meeting for the company's national sales team earlier this year using the Pando platform, which she said can get expensive, but it provided the intensive interactivity needed among the headquarters office and multiple field locations. She also had three to five simultaneous groups of 20 to 40 people gathered at eight hotels across different time zones in the U.S. One of the considerations was whether the hotels could handle the tech work that needed to be done.
"We went back and forth a lot and ended up having the Pando team hire their technicians to be onsite at the hotels, plus they would work with the hotel's A/V," she said, adding that they made this decision to reduce the stress hotel managers had about not having worked with the technology before. "There were a lot of tech discussions that had to happen. I don't know if that level of high-touch, high-cost investment is always necessary, but because these were big meetings, we had to get it right. We had the hotel rooms for only so many hours, so we felt it was worth the investment for extra insurance."
That's another consideration: Are hotels and other venues ready for hybrid meetings? "In many cases, no they are not able to support this technology," said DigitTravel VP of consulting Shimon Avish. "What they've supported up to now through their subcontractors has been pretty straightforward: the bandwidth you need and A/V equipment. But hotels are not equipped or trained to do some of these more sophisticated hybrid, virtual event platforms."
As a result, many of the production houses have been pivoting quickly to virtual events and becoming primary suppliers in that area, he said.
Creative Design
Another trend revolves around design. With physical distancing requirements and the need to make attendees feel safe, event owners and suppliers have had to get creative with their solutions for future in-person events. Physical-distancing set-ups are standard now, and there is the increased use of outdoor settings, as well as open public spaces.
"If a lobby is not being used, it can be set up as a classroom, with atrium areas for overflow," said director of event services for Pittsburgh's David L. Lawrence Convention Center Jamie Huckleberry. "Or split [attendees'] time between the exhibit hall and breakouts. Have half at the exhibit hall, then switch. On the exhibit hall, if there are fewer booths, you can build a satellite workshop there and use the tech and A/V providers to stream [the content]. If [a participant] can't attend a workshop in the morning, they can still watch it. That also helps with the traffic flow."
The same can be done for general sessions, with half attending while the other half is on the trade floor, then rotating, said Arlington Convention and Visitors Bureau destination services manager Paola Bowman, who is working with MPI on its November congress taking place in nearby Grapevine, Texas. "That means the speaker might have to speak twice, but [the attendees] will receive the same message from the same speaker while not crowding in place."
McNairy said some planners are separating attendees into groups where half will eat together in a dining space on one night and the other half will eat in their guestrooms, and then they'll switch places the next night. Or half will eat at noon and the other half at 1 p.m., said Bowman.
Bowman also noted some groups are assigning lanyards or bracelets that are color coded to identify different levels of interactive comfort for attendees. "Some people are not comfortable with networking, they'll listen to the content then go back to their room," she said. "Others are OK with an elbow bump or just waving to each other." The color-coded items would let people know whether that elbow bump is welcome, or if they should steer clear.
McNairy said she also is hearing customers being more open to introducing "mindfulness moments" into their meetings. "There's more stress in this environment, and it's incorporating time and space for people to re-center their thoughts," she said. "It's not just for face-to-face. It's being encouraged and incorporated into virtual events."
Additional Costs
Some of these solutions come with increased price tags. Both Bowman and McNairy noted that ground transportation is "tougher to manage" given its somewhat fixed costs around each vehicle and the need to distance on a bus or minibus.
Labor also is a cost likely to go up for in-person meetings and events, not just for technology support, but also because more people will be needed for F&B services and additional cleanings. Both suppliers and industry organizations have introduced new cleanliness and safety standards and meetings protocols, including all the major hotel companies, the American Hotel & Lodging Association, the Event Service Professionals Association, and a taskforce of corporate travel buyers, suppliers and consultants who created the Travel and Meetings Standards report. Most if not all of these initiatives call for additional cleanings, hand sanitizer stations throughout hotels and meeting venues, barriers for buffet stations, additional staff at each station to serve individuals, coffee servers, and more.
"Additional hands for F&B are where you will see more labor needed," said Huckleberry, who is an ESPA member and worked on its recovery roadmap, along with Arlington's Bowman, who headed up the project. "I know hotels that were [saying] normal plated meals will have to have one server to serve the meal and one who is just taking away used silverware or glassware or plates to set the next meal so there is no cross-contamination possibility." For buffets, there also is the need for runners to take food to and from the stations, she added.
"One thing that worries me is that because so much more labor is needed to accomplish these events, there might be an impact on pricing," Avish said, adding that employees will have to verify their health every day. "That's also an added cost. There are new costs in the training of staff. There are added costs everywhere. Someone is going to have to cover those, or it will eat into profitability to such an extent that the business won't be profitable."
Who Pays?
Avish said that among his contacts the issue of who is going to pay has not yet been resolved, but he concedes the new steps are necessary to give meeting participants the confidence to return to meetings. "In the end, it will be a function of negotiation, a function of relationships, and it simply is not going to be one-size-fits-all," he said.
McNairy is finding that regarding budgets, there's a high level of commitment to do what is best for all parties involved. "Suppliers want the business, so how can we work together to emerge stronger on the other end," she said. "We're looking at hotels and venues that want to stimulate business. The biggest thing we're hearing is a balance for the suppliers, but also have owners and stakeholders be responsible for balancing that out as we return to meetings."
Bowman said it goes back to everyone being flexible, and "we are all in this together. Venues are not trying to outprice a meal because we have to add staff and double your costs," she said, though she admitted that some true increases in costs might be based on labor. "But there are times you can adjust, such as sharing a menu." If two back-to-back groups use the same menu, the venue can order for both versus one. "Labor is up, but food is down. It's having an honest and candid conversation with planners and have them let us know what their wish list is, what are the needs and objectives of the meeting, and where can we cut down in cost to even the field."
Both Avish and McNairy said it's too soon to tell who will cover the costs as there isn't a lot of group business on the books at the moment, and 2021 budgets are still being set. One contact for Avish booked an event for the first quarter, but he's not confident it will happen. "The only kinds of events going forward are bubble events, where they buyout an entire wing of a hotel, or buyout the entire hotel" he said.
Enticing Meetings to Return in 2021
For their part, some hotels and hotel companies are doing what they can to entice meetings to return—with deals. Langham Hotels in the United States has relaunched its "No Strings Attached" pledge for meetings booked through Dec. 31, 2020, and taking place by March 31, 2021. Hilton Worldwide has an offer for meetings booked through Dec. 31 and taking place by May 31, 2021 that features flexible cancellation without penalty up to eight days in advance of arrival with its Hilton Express Meeting Agreement—now available for meetings and events with a budget of up to $50,000. Previously, $25,000 was the cap. Individual hotels are floating offers as well. Meeting managers will want to stay on top of these offers as they will show where properties are willing to negotiate. Generous technology inclusions and friendly cancellation and attrition terms should be table stakes for in-person venue options going into 2021.
I-Meet: Most Meetings to Resume Q2 2021 or Later
The most recent i-Meet weekly survey of meeting planner sentiment ended Aug. 9. According to the survey, 74 percent of 352 respondents don't expect to resume operating face-to-face meetings until sometime in 2021. That compares with just 8 percent who predicted such a lengthy delay when the survey was first conducted in April.
Looking at the 2021 breakdown, 38 percent of respondents expect events to restart during the second quarter; 22 percent reported the first quarter. Ten percent remain uncertain. By type of meeting, 75 percent expect to operate hybrid meetings initially; 68 percent expect to plan small (25 or fewer attendees), drive-to events. On the bright side, 77 percent of respondents have events booked and contracted for 2021; but that means nearly one in four do not.