I think the glare of negative media means that the planning process needs to be more transparent, accountable and aligned to business objectives than it may have been with some companies when times were good. But according to many of the people I’ve spoken with, there was a focus on reducing waste and trying to create “special” environments without being excessive before the economic collapse. So budgets may have gotten smaller even without the recession.

Of course that doesn’t help the planners, especially third-party ones, who are really struggling to keep these programs from being canceled now, or the resort hotels going out of business because of the “AIG Effect.”

Things in this industry tend to be cyclical. Right now, luxury isn’t “cool.” But eventually it will swing back. People haven’t stopped craving special experiences or treatment. They just need to be more prudent. The attention has made everyone very cautious about doing anything that can’t be justified or is wasteful.

And that’s a good thing. In the long run, I think that will just make the industry stronger. Any time you stop wasting time, money and resources, you operate more efficiently. When you have to really keep track of your metrics, ROI and be able to make the case for meeting, then you have a much better chance of getting the C-suite to reinvest in those programs. It’s important for company leadership to meet and discuss strategy and tactics, and they’re going to have to do it, especially when times are tough. Gradually they’ll lose the fear of censorship and go back to meeting in more comfortable settings because that’s where they probably feel most comfortable and productive.

Ultimately, if the program is successful and the planner can prove how much value it produces, it will be supported. And it’s not difficult to show how the ambiance of a Super 8 pales compared to some of the resorts that are out there (and currently offering amazing value for the money, by the way).

It’s important to realize that not everyone has bought into the media portrayal of our industry as being frivolous. There are still a lot of successful business people who know that the reports are sensationalized and aren’t about to handicap their growth by succumbing to “media flu.” (The recent Texas Roadhouse employee appreciation event springs to mind.) But there are a whole lot of Joe Schmoes out there who have no idea what we do or how important our work is.

And that means we have a lot of work to do before the purse strings loosen again. But I don’t think budgets are gone forever. I just think we will have to change the way we handle them and be much smarter and more strategic about it, because the old way of doing things is gone. And I don’t see that as a bad thing.

Do you think the current economic events and the media portrayal of corporate executives spending excessively will have a long-term or even permanent affect on budgets for executive retreats?

I’m OK with that. Please also include a link back to the original story (http://www.planyourmeetings.com/feature/2009/05/the-art-of-planning-executive-retreats/) and let me know when your article runs!

Kristi