It’s All in a Hard Day’s Work

The hospitality industry is desperately trying to hang onto corporate clients. In the U.S., it has been lobbying Washington about the economic impact of canceling corporate meetings, fighting back with surveys showing the importance of face-to-face business meetings while offering innovative promotions. To win back business and public opinion, Ritz-Carlton Hotel Co. in the United States is offering to donate to charity 10 percent of the cost of a conference held on its premises. Hilton Asia Pacific has launched a new complimentary meeting package: every executive who books a room gets a meeting room, refreshments and lunch. And Accor, one of the world's largest hotel chains, recently started to offer some corporate clients a back-end rebate, or a bonus if they book a certain number of room-nights per year. "This type of agreement is used by many airlines in Europe but is really new in the hotel industry," notes Marchon.

Others are trying to give their clients as many options as possible. Shangri-La Hotels and Resorts, which provides free Wi-Fi in all its rooms and public areas, has a new Internet-based program that gives corporate clients flexibility in customizing hotel packages, offering a range of optional services such as airport transfers, dining credits, buffet breakfasts, laundry, and spa treatments, and they pay accordingly. "The customers' buying behavior is changing," says Kent Zhu, the group director of sales and marketing. "We feel customers today prefer to choose what they want. Our main purpose is not really to offer a discount but to give choice and flexibility." So far about 30 percent of customers are choosing some elements of the package, with the airport transfer and breakfast the two most popular selections. Singapore's business-oriented Quincy hotel has gone a different route by offering an all-inclusive concept more commonly associated with beach vacations. Rates start at $218 per night and include such extras as airport transfers, three meals a day, Wi-Fi access, all mini-bar amenities and cocktails each evening. "There is no surprise; our customers know exactly how much they will spend upfront," says hotel manager Franck Hardy.

Flexibility and frugality are also key in booking longer-term service apartments. "In the past, guests didn't really negotiate because their company was paying and they didn't really care," says Gerald Lee, CEO of Ascott Hospitality, which recently opened two new serviced residences, in Singapore and Tokyo, under its Citadines brand. "Now, if they don't use air-con all day, or they don't need breakfast, though it's offered, or don't need daily housekeeping, we can negotiate. There is a lot more customization and flexibility."

The Amadeus survey showed that with less money to spend on high-end hotels, most business travelers will revert to the tried and trusted. They look for a "dependable brand" with uniform levels of service across locations, though they are also realistic about what this means in terms of service. While they are willing to downgrade and receive less for paying less, getting the basics right is still a must, says Brett. At least until expense accounts are restored and hotels can start building new spa-treatment rooms.

© 2009