2009 meetings and the economy

[Diane Sieg]

Hi all,

I was curious to know if any of you have experienced 2009 conference and meeting cancellations due to the economy. I haven't noticed anything from the speaker end yet, although I have heard of companies that are canceling holiday parties.

[James Threlkeld]

I've had a customer move an event from a luxury resort to an independent. It cost them more because of the cancellation but they didn't want to be 'seen' as being frivolous. Crazy, isn't it?

Also, I'm sure you've heard that AIG just canceled 160 meetings worth an estimated $80 million because of the bailout.

[Jon Wollenhaupt]

We have had two new clients ultimately backout of conference they planned to hold due to fear of the economy. I have heard from these clients that several big name Silicon Valley companies have placed a moratorium on all coporate travel including IBM, nVIDIA and Cisco.

[Jon Wollenhaupt]

More bad news regarding event cancellations reported in the San Francisco Business Times:

Headline: Tech convention cancellations shake San Francisco - November 21-27

Network Appliance and Cisco Systems have cancelled citywide conventions for 2009, an illustration that the San Francisco convention business may be the downturn’s next casualty.

Between them, the two meetings, scheduled for February and August 2009, respectively, were forecast to shower $47 million in convention-related spending on the city. Some 30,000 attendees were expected, accounting for nearly 50,000 hotel room nights, with Cisco by far the bigger meeting.

These are the only two Moscone cancellations so far for 2009, but both came within the past month, after the stock market began its dive. The city Convention and Visitors Bureau is left with large holes to fill at Moscone Center; Cisco alone was booked in all three buildings from Aug. 16 to Aug. 29.

Hotels are left with tens of thousands of now-vacant rooms and little expectation that transient business travel and tourism will pick up the sudden slack.

[Jon Wollenhaupt]

And to add to the gloom:

Our friend Frank Simpson, National Sales Manager for Marriott, yesterday told us that Charles Schwab cancelled a $1.2 million meeting at the Anaheim Marriott. Schwab paid a $350,000. cancellation fee.

I think I might take 2009 off. :)