Hotels get creative as economy lags - Phoenix Business Journal:

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One thing they are doing as they wait it out is strengtheninv their relationships withmeeting planners. According to Smith Travek Research, hotel occupancy in the Valley wasdown 10.6 percen t in March from the same month last People also are spending less on average, almost 30 percent less than the same time last year acrosa the Valley. “It is bad. Phoenic is a special example, becauser there are a lot of new rooms. A lot of new hotel have opened, and that also has hurt occupancy,” says Jan senior vice president of the global consulting andresearch firm.
The openinbg of the 1,000-room , the 290-room & Spa in Paradisre Valley and other Valley hotels in the past year have dilutedoccupancy rates, industry officials say. In business and corporate travelers are sensitivsto perception, Frei-tag says. “People are hesitant to go to really niceresorts — and in all of your resorts are really nice,” he “In this economy, when companies need to cut the first things that go are travel and training.” But Vallegy hoteliers are using the time to reach out to meetinh planners and develop new businesd leads. “We are really trying to partnerewith them.
While it’s tough times, we are making adjustments,” says Chrisz Kerr, director of sales and marketing atthe . Kerr’s team is workin g with planners to creats trips thatare value-oriented, adjusting food and beverage prices with the goal of making the evengt more attractive to potential attendees, he At the in Phoenix, Sales Director David Richared says his team is trying to provide more all-inclusivew packages to customize meetings, including on-sitde dining packages and more cost-effectivr audio-visual offerings.
Moreover, his staff is lookin more at the technical and biomedical industries forpotential “We have redeployed our sales forced into these group markets,” Richard “Companies still need to have meetings, but they may be cuttinbg out some of the add-ons.” Even Sedona’e Enchantment Resort is seeing some fallout as groupse cut back. “We usually stay in high seaso a bit longer than metro Phoenix because of the But it’s definitely been slower, and we have seen some says Tina Newman, the resort’s director of sales and She stresses the importance of establishing connection during the downtime.
“Our relationships with meeting planners has increased quitera bit. There’s a lot of time for for discussion,” she says. Investing that kind of time iswortjh it, for her property and others. “Group businesa is extremely important to us because it provides a base of she says. Kerr adds that hoteliers also are targeting a more local markert and identifying those that already may be familiarr withthe Valley.