Corporate Incentive Travel: Giving Your Team a Sense of the Local Culture

Anne is @executiveoasis on twitter.

Stop: Even if you don’t have the budget for international travel this year, here is how you can still give your team an international experience without getting on a plane:

• International Team Building with An International Fair
  

If you do have the budget, keep reading:

I’ve often wondered why companies fly their sales and executive teams halfway across the world just to lie on the beach and get drunk at the bar. Particularly in these challenging economic times, companies can do that at home at a fraction of the cost. A foreign incentive trip or retreats provides an opportunity to give your team a rich, unique and memorable experience. All you have to do is build a few experiences into your itinerary that provide a glimpse of the local history and culture of your incentive travel destinations.This is easier to do than you may think and it doesn’t have to take a lot of time.

Before your trip, you can use social media to provide an orientation to the destination. During your sales incentive trip, visit one of the many cultural centres, heritage villages and museums that are designed to give visitors a glimpse into the history and culture of your chosen destiation. Here are a few ideas:

Jamaica:

Before you go:

• Jamaica’s Island Buzz newsletter
  
• Jamaican Cultural Highlights
  

Where to go:

• Visit my favourite place on the planet, The Enchanted Garden in Ocho Rios
  
• Tour The Outameni Experience where you can travel back in time and explore the 6 cultures that have shaped modern Jamaica.
  
• Visit Brimmer Hall Estate, a historical working plantation that happens to be located in my family’s hometown.
  
• Go horse riding and tour the ruins at Seville, one of the first Spanish settlements in Jamaica.
  

Dubai:

Before you go:

Dubai Department Of Tourism And Commerce Marketing (DTCM) has several helpful social media resources that you can access at:

• Official Dubai City Guide @dcgguide on Twitter
  

• Spend an evening at the Dubai Heritage and Diving Village.
  
• Tour the Sheikh Saeed Al Maktoum House next door.
  
• Take a dinner cruise in a traditional Dhow.
  

Oman:

Before you go:

• Oman Tourism Portal @tourismmalaysia on Twitter
  

• Visit Muscat’s Bait Al Zubair Museum, located in a traditional Omani house.
  
• Tour Nizwa’s Fort and browse for treasures in Nizwa’s traditional Souq.
  

Malaysia:

Before you go:

• Tourism Malaysia’s Ipod Touch Style Portal @tourismmalaysia on Twitter
  

Where to go:

• Take a 2 night trip to Kuching in Malaysian Borneo. Spend an afternoon at the Sarawak Cultural Village. You’ll explore the 7 major ethinic groups that have influenced Malysia’s culture and visit traditional homesteads.
  
• Take a day or overnight trip to Malacca, a virtual time capsule into Malaysia history with traditional Malay, Chinese, Portuguese, Dutch, British, and Japanese influences. There is even a full size replica of a historical Sultan’s Palace.
  

Singapore:

Before you go:
• Official Singapore Blog
  
• Uniquely Singapore on Facebook
  

Where to go:

• Visit Sentosa’s Images of Singapore
  

Japan:

Before you go:

• Japan Visitor Blog
  

• Explore the Edo-Tokyo Museum with replicas of traditional buildings and interactive exhibits that provide insights into Tokyo’s rich culture and history.
  
• Stay at a traditional Ryokan for 1 or 2 nights.
  
• Be mesmerzied as you take in a traditional Kabuki performance at the Kubuki-za in Tokyo
  

Canada:

Before you go:

• Official Canada is a Big Place Blog
  

Where to go:

• Visit Quebec City, Black Creek Pioneer Village, or Upper Canada Village
  
• Explore native Canadian communities such as Kahnawake or Six Nations
  
• Visit one of Canada’s oldest Black communities at theBuxton Settlement.
  

Even if you have to extend your sales incentive trip by half a day or a full day to make time to build a cultural excursion into your itinerary, it will be time well spent. You’ll broaden their horizons and provide your team with a truly memorable and meaningful experience of a lifetime that they would never be able to have back home.

Incentive Travel in Toronto

Toronto City Hall

by Anne Thornley-Brown, President
Executive Oasis International
Incentive Travel Specialists

This blog entry focuses on opportunities for Toronto (GTA) based companies to reward their teams locally when funds aren’t available for foreign travel. It will also of value for foreign companies, particulary in the USA, the Middle East and Asia who are considering Toronto as an incentive travel destination.

Toronto Based Companies

There are many reasons that some Toronto based companies are deciding to forego foreign travel this year and reward their team by staying closer to home.

• due to the economic downturn, funds are tighter this year
• companies that are doing well want to conserve their resources so that they will have a cushion in case they run into turbulent times up ahead
• the local economy could use a boost
• domestic travel is important to bridge the gap in tourism revenue created by US and other foreign companies staying closer to home this year

Explore the World without Leaving the GTA (Toronto)

Fortunately, Toronto now has enough a multi-cultural flavour that it’s possible to experience many of the elements of  foreign travel without getting on a plane.  Here are some of the elments that you can build into your itinerary to give your team the feel of  foreign travel:

• Explore a full size, replica of a 19th Century Canadian village at Black Creek Pioneer Village – Come in December and experience Christmas by Lamplight
• Enjoy sushi and terriyaki at a Japanese teppanyaki  restaurant
• Visit a Japanese shopping centre
• Hunt  for bargains in Chinatown or an Asian shopping centre
• Cheer for your favourite team at the Dragon Boat Races
• Treat your team to afternoon tea or high tea at a traditional English tearoom in York Region
• Enjoy  Middle Eastern cuisine complete with entertainment by a belly dancer at a Morrorcan or Persian restaurant
• Sample crepes and other French cuisine at a variety of French restaurants
• Discover treasures from every corner of the globe in Kensington market

li>Savour the delights of a scrumptious paella dinner and watch Flamenco dancing without setting a foot in Spain

• Tickle your palette with Jamaican jerk chicken
• Dance at Caribana, an authentic West Indian carnival that takes place every August
• Dress up for a Bralizian Carnival Ball
• Feel the thunder of hooves at Polo for Heart in June
• Relax at the Royal Agricultural Winter Fair and Horse Show in November.
• Spend time at a casino without travelling to Las Vegas, Atlantic City or Montecarlo.
• You don’t have to go to Dubai to take a dinner cruise (and enjoy fireworks if you come in late June or early July)
• You don’t have to go to Dubai to take a dinner cruise (and enjoy fireworks if you come in late June or early July)
• You don’t have to go to Paris or New York to spend an afternoon at an art gallery or museum
• You don’t have to go to London or Broadway to take in a theatrical production. You’ll have a wide selection from which to choose in Toronto’s theatre district, the Shaw Theatre in Niagara-on-the-Lake, and Stratford’s Avon or Festival Theatres

If you consult with a local event planner, you will also be able to time your visit to take advantage of the multitude of concerts, ethnic festivals and international film festivals that take place throughout the year.
 

Toronto Inbound Incentive Travel

With the low value of the Canadian dollar relative to the US dollar and some other major currencies, Canada is an affordable destination for companies that are seeking an interesting incentive travel itinerary to reward their teams or express appreciation to clients. One benefit of the economic meltdown is that airlines like Singapore Airlines, Etihad Airwyas and Air Canada have some really competitive fares that make travel to Canada affordable. A number of hotels and resorts currently  have recession friendly pricing  for 2009 and 2010.  Book early and you will stretch your budget.

Every region of the country has something special to offer, however, today we are focusing on Toronto and areas that are no more than a 2  – 3 hour drive from Toronto.

Accommodation Options

If you’re planning to take your team to the Greater Toronto area (GTA as locals call it). There are numerous options to lend variety to your trip. In downtown Toronto, there are large hotels with full amenities and historical significance. If you venture 45 minutes to 2 hours away from Toronto, you can find:

• conference centres with full amenities
• country lodges on several acres
• lakeside hideaways that are perfect for meetings and strategy sessions for small teams
• luxurious resorts with extensive recreational facilities

Other areas to explore nearby include York Region, just North of Toronto, the Muskokas, and picturesque Niagara-on-the-Lake
In Toronto and all of these areas, there boutique hotels, small inns, and lodges where, with a little flexibility in dates, your team can have enjoy exclusive use.

Companies located in or near the GTA can stretch their budget by having business and strategy sessions on-site at their company premises and enjoying recreational and dining facilities at a local hotel or resort for part of the day.

Areas to Explore

In a future blog entry, I’ll go into detail about what you can see in various parts of Toronto but, for now, I’ll just list the areas you can explore and identify areasnear Toronto  that would be ideal for day or overnight excursions.

Toronto

• Chinatown
• Kensington Market
• The Distillery District
• Yorkville
• The Underground City

York Region

Niagara-on-the Lake

The Muskokas

Port Carling

Pitfalls to Avoid

1. Don’t cram too much into a stay that is too brief.  Instead, arrive early in the day, stay for at least 3 days and leave late on your last day. There is a lot to see and do and you want to get in all of the key elements of your business meeting and allow enough time for exploration.
2. Traffic can be heavily congested so a commute to the downtown core from an airport hotel or North of the city can be a long and uncomfortable experience for your guests. (Torontonians refer to the Don Valley Parkway as the “Don Valley Parking lot”.)  So, definitely avoid travel during rush hour. Instead, move your group to and from  the downtown core after dinner when traffic is lighter. Then, they can wake up refereshed the next morning,  ready to enjoy what the city has to offer.If you decide to forego a stay downtown, allow at least an hour to travel in each direction ( 1 1/2 – 2 hours during the winter).
3. When a local planner is honest enough to give you feedback that a plan you are considering is not viable…..listen. This advice is applicable whether you are considering a trip to Toronto, Dubai or anywhere else in the world.There will always be firms that are so determined to obtain your business that they will smile, take your money, and tell you that whatever you are requesting is viable. By contrast, incentive travel planners and event planners who will let you know about pitfalls to avoid are worth their weight in gold. They’ll make you look good and help you avoid mistakes.

I recently handled an inquiry from a prospective client that insisted on staying at an airport hotel and ending their meeting at 3:00. They simply would not listen to advice that, given traffic patterns in Toronto, the team building session they were planning would be much too rushed to be enjoyable.

Another prospective client demanded a BBQ on or near the beach in downtown Toronto even when they were advised that this would exceed their budget and that there was a strong liklihood that the experience would not be pleasant due to the odours near Lake Ontario on certain days.

Finally, consider the company that was  intent on staying in downtown Toronto when their main reason for coming to Ontario was to go dog sledding.

A planner with integrity may not always tell you what you want to hear but they may save your group from some unpleasant experiences and hours of uncomfortable traavel  to ensure that you have a fabulous stay in Toronto.

Tips to  Get the Most Out of Your Time in Toronto

1. If you venture North of the city to York region, you will enjoy unique and more spacious accomodation and dining facilities for a fraction of what it would cost you in downtown Toronto.
2. Consider splitting your time. Perhaps stay at a Muskoka, York Region, Caledon, or Niagara-on-the-Lake property for most of your trip and spend a couple of nights in downtown Toronto.
3. If you want to give your team the opportunity to explore downtown through a Great Canadian Race or by making room in the schedule for shopping, consider staying at a downtown hotel for 1 or 2 nights.
4. See Toronto the way that Torontonians do by getting a TTC (Toronto Transit Commission) Pass. For $9 Canadian, an adult can enjoy unlmited Bus, Subway and Streetcar transportation (except for a few rush hour routes).
5. If you plan to enjoy unique winter activities like dog sledding, book them well in advance, they sell out fast. I would strongly recommend booking dog sledding at least 4 months prior to your arrival….6 months in advance would be ideal. 
6. If you come during the winter, definitely be prepared. You will need to rent or purchase winter coats (or jackets), sweaters, boots, scarves, hats, and mittens. Dress in layers for maximum warmth.
7. Double check the visa requirements based on the countries of birth and citizenships of your employees.

For more information visit:

Incentive Travel Toronto

Team Building available in Toronto

• Visexecutaries:  Seizing Opportunities in Our Shifting Corporate Landscape
• Arctic Survival
• Wilderness Survival

Just for fun:

• Cooking Team Building
• Great Canadian Race - During the garbage strike, we’ll take you to York Region or NOTL

Executive Oasis International offers one stop shopping for local or foreign companies wanting to plan exciting itineraries to reward their team. We’ll help you:

•  find a hotel or resort that’s a perfect fit for your selected activities
•  arrange transfers, handle logistics re: meeting room and AV
• plan recreational activities and entertainment to help your team relax and unwind
• design effective team building sessions and facilitate them expertly

Most of all we’ll give you solid advice about how to get the best out of this destination.

Singapore: For the First and Last Time

by Anne Thornley-Brown, President,
Executive Oasis International

My tale about Singapore will start at the end instead of the beginning as the ending gives the entire adventure context and meaning.

The Last Time I saw Singapore

The last time I was in Singapore, it was during the Great Singapore Shopping Sale. Yes, I shopped. It was during that trip that I picked up a travel tip that I’ll pass on to you. After shopping at one of the large malls, it was so busy that I just couldn’t get a taxi. So, I walked over to a local hotel, and in no time at all, a taxi whisked me back to my hotel.

Travel Tip: If you’re ever having trouble getting a taxi, just head over to the nearest hotel and the doorman will get you a taxi in no time.

The next day, I had a business meeting near Raffles Hotel. I had been to Singapore many times and even taken a ride on a bumboat near Raffles. However, I had never visited Raffles Hotel or tried its famous Singapore Sling. So, I decided to head over there.

Raffles Hotel, Afternoon Tea & a Singapore Sling

Raffles Hotel has a lot of character. I meandered through the beautiful gardens. Then I entered the lobby and stared at the high ceiling. Based on the foliage in the garden, the decor, and the ambiance of the hotel, I could easily picture the rich and famous of a bygone era strolling by.

Even though I didn’t have a reservation, the concierge arranged for me to have a seating at the Afternoon Tea, which was (as usual) sold out. The room where tea was served was bright and spacious. There were guests from every corner of the globe. In Asia, afternoon tea, is more like what the British call High Tea. Yes the scones and sandwiches are present but, often, it’s a full buffet with meat, vegetables and a variety of deserts. The tea at Raffles Hotel was no different and I finally had a chance to try the Singapore Sling. I found it strong as I am not much of a drinker but it was refreshing and delicious. Finally having a chance to sample this local delight was almost like a toast. “Here’s to all of the beautiful days and nights that I’ve spent in Singapore”.

Singapore for the First time

My Singapore adventure began in Januray, 2000. When I left Toronto for my first trip to Asia, there was a snowstrom that was so severe that the time spent waiting on the runway and in de-icing on the runway was prolonged. As a result, I missed my connection to Singapore in LAX. We landed before the flight had departed but it was too late for me to make the connection.

Air Canada graciously put me up in a hotel in Los Angeles for the rest of the day. It was then that I discovered that I had forgotten my backup overheads in Toronto. At that time, before USB drives, I always brought a set up back-up slides as an extra precaution. Thank heavens for Business Depot. I had e-mailed the sides to my Yahoo account. (I am not called the Back-up Queen for no reason.) In no time at all, the colour overheads were printed off inserted into folders and placed in binders.

Singapore Airlines

Fortunately, Singapore Airlines was able to honour my business class ticket, though the flight was heavily booked. I had heard rave reviews about Singapore Airlines and was really looking foward the trip.

The business class lounge was more luxurious than any I had ever seen up until then. A full hot buffet was served, there were plush lounge chairs and couches, showers, big screen TVs, and numerous computer terminals where one could access the internet.

Once on board, I was impressed by the luxurious seating in business class. It was more comfortable than any lounger with plush fabric. Shortly after boarding, we were offered hot towel service, welcome drinks, newspapers, and a little blue drawstring bag with slippers, ear plugs, sleeping mask, and toiletries. The range of choices for meals, beverages (including hot chocolate), and snacks (soup, noodles, cookies, sandwiches) was incredible. Every seat had it’s own TV console and passengers could arrange a personalized period of entertainment. After dinner, I was so tired that I couldn’t sleep. So, I selected some Chinese music and, in no time at all, I was sleeping like a baby. Why am I going into this level of detail? It is because, at the time, Air Canada and the other North American Airlines on which I had travelled had nothing even close to the amenities, service offerings, and facilitities in the business class lounge of in-flight. I’ll touch on what we can learn from this later.

First Impressions of Singapore

My first stop in Asia was in Kuala Lumpur. I have already written about that extensively. A few days later, we headed to Singapore. After I had finished my seminars in Malaysia, I headed over to Singapore with T. Saravanan and Sam Salveraj to conduct a seminar for a small group of executives, managers and HR professionals. My first impressions of Singapore that it was bright, warm, lush, and VERY clean. Definitely spotless. Since this was before the Chinese New Year, like Malaysia, there were red decorations everywhere. I noticed more decorative flowers and a lot of tiny oranges. In the hotel lobby, the Buddha was even decorated with flowers. After we checked into the hotel, it was time to head out for dinner.

The H2O Zone

Saravanan and Sam took me to a place near Orchard Road called the H2O Zone. I fell in love with it immediately. As we entered, there were walls with water on either side and water flowing freely. It was beautifully lit up for the evening. The H2O Zone is similar to a food court but with a difference. It’s an outdoor food court with tables in the centre and restaurants on all sides. The waiters come to your table and, once they determine what kind of cuisine you prefer, they bring you menus from several restaurants and you place your order. It hit me that, here I was, a world away from the snow in Toronto wearing summer clothes, sitting under the stars , and enjoying a fabulous meal.

It was at the H2O Zone that I saw my first internet cafe. This was long before internet cafes opened in Toronto. I stepped inside picked up my e-mail and sent word to the folks back home that I was safe and enjoying my time in Asia. This seems commonplace now but just 9 years ago, it was an incredible experience.

Hello Kitty

On our way back to the hotel, we strolled along Orchard Road. It was bustling with activity and excitement. Chinese jugglers were performing in front of a shopping centre. We saw a Bollywood performer in full dress emerging from a hotel. Movie trailers and ads were projected from huge billboards atop buildings. (I had seen these in Malaysia as well a few days earlier.)

When we approached the McDonald’s there was a huge crowd. I had no idea what this was all about. The next day at my seminar, some of the delegates told me that McDonald’s had been giving away 18″ Hello Kitty dolls in wedding costumes from various Asian countries. The Japanese dolls were about to go on the market and people had camped out overnight to make sure that they got a doll. I had never even heard of Hello Kitty so I simply didn’t get it. The doll was described to me as a mouthless cat. Through the magic of the internet, I have been able to uncover the story for you and determine that the events that I have just described took place on the evening of January 26, 2000:

• McDonald’s Hello Kitty toy promotion
  
• Singaporeans riot for Hello Kitty
  

A few years later, I noticed the dolls in a Montreal Chinatown store. I purchased them for about $25 and to this day they sit on my bureau as a reminder of my first trip to Singapore.

Changi Airport

Upon departure, I had a chance to really take a close look at the Changi Airport. It was beautiful. Monorails transported the passengers to and from the terminal building. There was a huge shopping centre with shops of every description, a transit hotel, lounges, a fitness centre, free kiosks for picking accessing the internet. I had never seen anything like this in North America.

I purchased 2 cameras, a Samsung camera, the hottest selling model in Asia at the time, and a digital camera long before most people in North America had them.

Benefits for the Development of Your Marketing & Sales Teams

I’ll continue my Singapore adventure in anther blog entry but first I want to raise an important question. What does all of this have to do with Incentive Travel and Sales Incentive Trips? When one travels, one never knows what they will observe or encounter. During my first trip to Asia, I saw several products and service delivery concepts that had not yet hit North America at all or to any great extent:

• upgraded facilities in business class lounge
  
• enhanced business class service on Singapore Airlines
  
• huge billboards atop buildings from which movies were projected
  
• an outdoor food court with servers presenting menus from many restaurants
  
• a digital camera
  
• internet cafes
  
• the Hello Kitty craze
  

Any of these ideas could be modified and applied to a range of businesses including retail, restaurants, hotels, and advertising. In fact, some of the features of business class lounges could be used to create waiting rooms or lounges to ensure the comfort of a company’s best customers when they have to attend a meeting at your office. If anyone knows of companies that have used any of these concepts, I look forward to your comments.

That’s why a sales incentive trip is of tremendous benefit. It can really broaden a team’s horizons and expose them to market trends before they hit your country. This can help organizations scan the horizon, see what’s coming next and design innovative campaigns and develop service bundles well ahead of the competition. The key is to debrief and mine these experiences and identify how they can be used when you return home.

For more information about Singapore visit:

Singapore Incentive Travel
Official Website for Tourist Information on Singapore

Anne Thornley-Brown is the President of Executive Oasis International, a Toronto based firm that regularly organizes incentive travel and executive retreats in Dubai, Oman, Jamaica, Malaysia, Singapore, and Canada. They provide one stop shopping service with a personalized approach to incentive travel for corporate groups of up to 40. Customized itineraries include travel, transfers, hotel, tours, team activities, and special events.

This post  was inspired by comments Marie Hunter on Tuesday, March 10, 2009, in made in her blog. It is a response to:

Meetings, Events, Travel and Hospitality Industry: Leaders Needed, Marie Hunter wrote:

Now more than ever, corporate leaders, elected officials, regulators, industry associations, small business owners and salespeople nationwide are struggling to understand what is and is not appropriate when it comes to client entertainment and employee perks. When is it appropriate to spend money to recruit, educate or incent employees? A question that is not getting as much press, but that I would like to see on the table, is when, if ever can public companies allow employees to engage in entertainment practices that implicitly or explicitly condone gender bias?

Marie, I decided to respond to your questions and take on  your challenge but my response became too long for  the comments section.

Before we begin, here is the White House’s position on business travel and meetings:

“The president believes it’s important to have a strong tourism industry and that it’s important that, as the president said earlier … that we shouldn’t retrench,” Gibbs said. “He would encourage people to travel.”

Gibbs said Thursday that the president was referring specifically to companies “that are getting large amounts of public funding.”

“The president does have great concern with public money being used for that,” he said. Gibbs added that the president’s comment was “very clear,” and passed on a chance to express regret.

So,  here is my take on your questions.  I encourage other meeting and business travel professionals to respond to your challenge and answer your questions in their blogs. Since I am based in Toronto, I’ll be giving some Toronto examples but they can be applied at other locations.

What meetings and events do you feel should be green-lighted immediately and why?

When companies are in trouble, they should be spending THOUSANDS of dollars to bring in management and business team building consultants to help  them resolve their problems instead of HUNDREDS OF THOUSANDS of dollars on junkets and luxury events. Either through on-site meetings or off-site retreats at AFFORDABLE local venues such as community centres and conservation areas, consultants can steer organizations through a structured brainstorming process to identify:

• cost saving measures and strategies
• new target markets
• new sources of revenue
• strategies for improving efficiency

Depending on your location, here are a couple of ideas. These sessions can be offered at luxury resorts when the good times roll and conservation areas when times are tough. The content remains the same, the recreational components are the only things that change:

• Wilderness Survival
• Desert Survival
• Arctic Survival
• Visexecutaries - loosely based on the Apprentice, this session can be delivered at a luxury resort or a local community centre. When times are tough, the “task” can consist of developing a strategy to address some specific business challenge your organization is facing 

Save the lavish celebrations for when your company is back on track. In North America, we seem to want to party all the time.  Unfortunately, all too, often the emphasis seems  to be on strictly recreational events that organizations try to pass off as team building. Definitely we get far more calls for recreation and entertainment than consulting. This is quite surprising during a recession. People seem to forget that they are running businesses not social or country clubs. This bandaid approach is merely offering placebos instead of getting to the root of organizational problems and generating solutions.

What gender-related entertainment practices should be discontinued?

Strip clubs, male only golf clubs, etc. are highly inappropriate and they have NEVER had a place in a  corporate setting PERIOD!! Ditto for bringing porno movies to coroporate retreats and skinny dipping on the corporate dime. Grow up. You’re running a business not a fraternity house.

While we’re at it, it’s time to cut back on alcohol consumption and the open bars at corporate events for a while. This will save a bundle.

What constitutes lavish entertaining?

When companies are in trouble, they should postpone expensive events and partying until performance has improved. Focus instead on resolving business problems.

If everyone has worked hard and you’ve had a successful year, pull out all the stops. Lavish entertainment to reward employees and express appreciation to clients is perfectly in order when you’ve earned it. Depending on  your location, some ideas might include:

• luxury desert safari in Dubai
• drilling for oil simulation in Abu Dhabi, Germany or Spain
• mountain adventure in Oman
• dog sledding getaway by helicopter in Ontario or Quebec
• equestrian getaway by helicopter or private plane
• whisking your team to a secret location by limousine or private plane for a gourmet cooking event
• hot air ballooning
• corporate retreat at a luxury resort

When is it okay to spend money on Employees?

It’s imporant to reward efforts, build skills and boost morale. The key is to gear the spending to organizational performance.

Hint: When a company is in trouble, more money should be spent on resolving business issues than on entertainment and recreation. Far too often, it’s the reverse.

How should recruits be entertained?

Again it depend on whether or not the company is performing well. If the company is facing challenges, you can still entertain recruits but choose a cost effective strategy such as:

• an on-site barbeque and get executives to flip the burgers
• a reasonably priced catered lunch as part of your orientation
• use board games to teach career, financial and business success principles in a fun and upbeat way
• a picnic at a local park or conservation area
• a treasure hunt
• a scavenger hunt
• an urban safari
• take them bowling
• take the recruits for a couple of hours of laser golf, or laser tag and then serve pizza

If a company is doing,  well consider some of the options I’ve already listed and other luxury options like:

•  boat cruises,
•  amazing race events
• cooking team building
• welcome banquets at a nice banquet hall
• a corporate tent or paddock at Polo for Heart  or a local charity polo tournament

These are perfectly in order when a company is doing well.

If you’re located in the Middle East, a desert safari would be perfect. If you’re in the Caribbean perhaps a beach barbeque would work.

What other questions should we be asking?

I posted these suggestions on Marie Hunter’s blog. I’ll take a stab at anwering them now.

 What can companies that are having financial difficulties difficulty do to reward their people?

Companies can reward top performers and top performing teams and still provide a meaningful experience for hundreds of dollars instead of thousands of dollars. There is no need for gift cerfiticates starting at $1,000 per employee.  People seem to be lacking imagination.

Under $250 per person

1. Give top performers gift certificates for spa TREATMENTS or a local Day at the Spa rather than spending a weekend away for a spa retreat.
2. An overnight stay at a nice local inn with dinner and breakfast for top performers and their spouses.
3. Get a corporate table at Polo for Heart or a similar event and invite top performers and their spouses.
4. Dog sledding afternoon and lunch at a local inn or resort.
5. Morning of horse riding and lunch at a local inn or resort.
6. A day at  Canada’s Wonderland for top performers and their families.
7. Seasons passes to Canada’s Wonderland for a family of 4.
8. A day at the zoo for the top performers and their families.

Under $100 Per Person

1. Dinner at a nice restaurant
2. Afternoon Tea
3. Movie passes for teams that have gone above and beyond the call.
4. Theatre tickets.
5. Concert tickets.
6. Take a group of top performers and their spouses to the Royal Winter Fair including the horse show and dinner at the upscale restaurant that is on site every year.
7. Get a table at the gala for tournament of champions.
8. Tickets to local hockey, baseball or basketball games.

How should companies that are experiencing financial difficulty entertain their staff?

• Picnics at a local conservation area
• Christmas party – for heaven’s sake, don’t cancel the Christmas party. Insted, do it at a venue in the suburbs instead of a costly downtown venue. Consider using a community centre with an ice rink to save money and keep everyone entertained.
• An evening at a comedy or improv club.

Anne Thornley-Brown is the President of Executive Oasis International, a Toronto based firm that regularly organizes incentive travel and executive retreats in  Dubai, Oman, Jamaica, Malaysia, Singapore, and Canada. They provide  one stop shopping service with  a  personalized approach to incentive travel for corporate groups of up to 40.  Customized itineraries include travel, transfers, hotel, tours, team activities, and special events.

Keep Canada Meeting Initiative

Do we need an initiative similar to the one the Americans have launched?

In the USA, incentive travel and meeting industry associations have started a “Keep America meeting campaign”. Do we need something similar?

South of the border, associations and leaders in our industry have “got their game” on.  In response to the “AIG effect” that followed the Wall Street Meltdonw,  articles are being featured in newspapers and on association websites. Managesmarter.com is featuring a month long “Incentive Industry Survival Guide”.  There is a “Keep America Meeting” website and petition. Poweroftravel.org has a lot of valuable statistics about the contribution of the incentive travel industry to the global economy (statistics for Canada are missing). The site also has white papers and a transition section for Obama’s transition team.

Most of our tourists including our incentive travel business of foreign origin does come from the USA. It is said that when America sneezes, Canada catches a cold. So what goes on South of the border does have an impact on us. Yet in Canada, despite the fact that hotels are receiving numerous cancellations from corporate clients, we are hardly hearing a whimper about this.

I have personally contacted the heads of some of our associations that are involved in the meetings, incentive travel and retreat industries and suggested that we start our own “Keep Canada Meeting” initiative. I have not had a response to even one e-mail or voice mail, not even one.

So what’s up? Are we that different from our American cousins? Are we just too low key, conservative and reluctant to “make waves” to do anything proactive? Do we need a “Keep Canada Meeting” campaign? If we do, why are we not taking steps to launch one?

Incentive Travel Industry Guidelines Welcome

by Anne Thornley-Brown, President

Executive Oasis International

The global recession and the use of funds for expensive trips and luxury events by some of the recipients of TARP funding  has unleashed a series of events that has created a crisis in the incentive travel industry.  As discussed in our most recent blog entry, many organizations that are doing well are now hesitant to schedule incentives or retreats due to concerns about the optics during a recession and the potential for negative publicity. This is unfortunate. The state of the industry was the impetus for a press release by the U.S. Travel Association earlier this week

“As the nation continues to suffer from one of the worst economic upheavals in our lifetime, the travel industry is facing its own challenges.

We saw in the aftermath of 9/11 that times like these can result in fundamental, long-term shifts in regulation, consumer behavior and overall perceptions. As the industry’s trade association, we are prepared to optimize the operating environment as best we can and guard against trends that could affect your ability to do business.

Post-9/11, the travel industry was caught in the middle of a paradigm shift. At that time, accessible travel was viewed to be in conflict with our national security needs. Public attitudes turned against international travel to the U.S. and new regulations quickly followed. As a result, the U.S. share of global inbound travel dropped dramatically, with an accumulative loss of more than $113 billion in travel spending in the U.S. and an average loss of 194,000 jobs each year.

Almost eight years later, our industry still has not fully recovered.

Today, we are at the leading edge of another potential sea change, this time focused on meetings, events, incentives and other forms of business travel. We are at risk of seeing this sector of the travel economy, which also is responsible for millions of jobs and billions in economic revenue, suffer lasting harm.”

Roger Dow, CEO , U.S. Travel Association  Source

The impact of the current recession and the negative publicity is not limited to the US or even North America. It’s global:

“Incentive tourism, which accounts for more than 12 per cent of the whole tourism activity in Dubai, is expected to lose up to 20 per cent of its inbound traffic in the period beginning February 2009 as a result of the global financial crisis.”

Source: Incentive tourism sector tightening its belt

“Travel agents in the UAE are reporting a severe dip in 2009 bookings for incentive packages both to and from the emirates as banks and property companies put a spending freeze on non-essential trips.

“Most of our incentive packages have either been put on hold or cancelled because of the economic situation,” said MMI Sales Executive Rakhi Purohit. “It’s gone down a lot recently – what is usually our peak season has basically been quiet.”

Purohit said banks and real estate companies in the UAE had put a freeze on incentive travel for staff. “That is what’s killing our business,” she added.

MMI’s Dubai-bound deals for European and US clients are also suffering, she said.”

Source: Incentives Slide in a Global Freeze

Leaders in the incentive travel industry have taken some steps in recent days to:

•  provide guidelines about responsible spending for meetings, retreats and incentives
• highlight the benefits of incentive travel with  US Government officials in Washington

The coalition has:

• issued a press release:

Travel community issues guidelines for Use of Meetings and Events by Recipients of Emergency Government Assistance

• issued spending and policy guidelines for TARP recipients re: incentives, meetings and events
• started an e-petition to underscore the vital role that the incentive travel, meeting and event industries plays in the global economy

Coalition of Meeting Industry Associations Issues Guidelines for Responsible Spending by TARP Fund Recipients

The U.S. Travel Association and key associations representing professionals in the meetings, events and incentive travel industry have released suggested guidelines for recipients of TARP funding.

Suggested Guidelines for TARP Recipients (PDF)

 ”The business practices of our customers impact the welfare of our industry, our employee base and the economic health of the communities where we do business.  Working collaboratively, associations representing the meetings, events and incentive travel industries are addressing an urgent public need by developing clear, prudent guidelines for companies that have received taxpayer dollars.

The standards support President Obama’s recent call for the boards of directors of companies that have received emergency government lending to develop guidelines on conferences, events and employee recognition programs.”

Roger Dow, CEO ,  U.S. Travel Association

I applaud the measures and hope that they will encourage more responsible thinking, planning , accountability, and spending by ALL executives and decision makers. For some time now I have been expressing concerns about some of the spending that has been going on in the corporate sector and I have again discussed my concerns in recent blogs. This new emphasis on accountability is the only way that we can ensure the long term viability of our industry.

Keep America Meeting Campaign

In my  most recent blog, I also discussed the important role that incentive travel plays in creating jobs and keeping the economy rolling.  The  U.S. Travel Association has released figures indicated that meetings and events are account for 15 % of all travel spending. This generates nearly $40 billion in tax revenue at the federal, state and local level and creates more than  1 million jobs.

The same coalition that released the guidelines has  banded together in a grassroots highlight the critical role that incentives, meetings and events play in the US and global economies with  a campaign called:

Keep America Meeting 

Members of the public and professionals in the industry are encouraged to visit the website to download statistics and a whitepaper about the key role of the industry. The site has already collected over 1000 signatures for an e-petition that will be delivered to the White House, the House of Congress and CEOs at Fortune 200 companies to undescore the vital role of incentives and meetings in America. I hope that everyone who reads this blog will consider signing it.

If we all work together, we can turn things around and avoid the lengthy downturn that occured in the industry after 9/11, the 2002 – 2003 recession and SARS  (in Toronto and Asia).

Anne Thornley-Brown is the President of Executive Oasis International, a Toronto based firm that regularly organizes incentive travel and executive retreats in Dubai, Oman, Jamaica, Malaysia, Singapore, and Canada. They provide one stop shopping service with a personalized approach to incentive travel for corporate groups of up to 40. Customized itineraries include travel, transfers, hotel, tours, team activities, and special events.

Incentive Travel During A Recession: The Benefits

by Anne Thornley-Brown,  President
Executive Oasis International

Whenever there is an economic meltdown, one of the first things that many companies cut is non-cash incentives such as incentive travel. This is short sighted. When times are tough, it’s much more difficult for your team members to “make their numbers”.  Therefore, it’s even MORE important  than EVER  to have strong incentives to motivate your team and reward top performers. 

If your company is performing well, there is no better time to schedule an incentive trip than during a recession. It’s simple. Due to reduced occupancy rates,  many hotels are offering deep discounts. Your company can now stay at even 5 star resorts in locations like Canada, Jamaica, Dubai, Oman, and Abu Dhabi for a fraction of what they would normally spend. Even 6 and 7 star resorts are now offering  special rates. These bargains will disappear when the economy picks up.

Incentive Travel Pays for itself

Incentive travel is particularly effective because it pays for itself.  How? Incentives are given at the end of the year AFTER successful results have been produced.  For incentives to be effective, careful planning is needed.

At the beginning of your fiscal year:

• set your target, the minimal level of financial performance both in terms of profits and earnings per share
• identify the level of sales that each member of your business development team needs to reach for your organization to meet its target
• allocate a percentage of the sales generated by each member of your business development team for incentives.

Individuals should qualify for the incentive based on 2 criteria:

• the company’s level of performance
• the individual’s level of performance

Why companies Cut  Incentive Travel

So if incentive trips pay for themselves, why do companies tend to eliminate them when the going gets tough?   The answer to that question is complex but part of what is going on right now is “the AIG effect”. Some of the companies that received bailout money in 2008 have still organized luxury junkets and lavish corporate events.  They seem to have forgotten that incentive trips and luxury corporate events are rewards for EXCEPTIONAL performance, not an entitlement to be bestowed even when there is failure of epic proportions. We’ve all read the headlines:

•  AIG executives receive spa treatments after bailout

American International Group Inc. spent $440,000 for a spa retreat for AIG executives just days after the company received a federal bailout.

AIG executives had spa treatments, banquets and golf outings, according to lawmakers investigating the insurance company’s meltdown.

•  AIG Executives Help Themselves To $86000 Hunting Trip
• Reps blast Bank of America over Super Bowl fan fest

Bailout recipient Bank of America is drawing fire for its five-day fan fest at the Super Bowl.

“From exclusive spa retreats, to million-dollar executive bonuses, expensive corporate jets, and now, lavish Super Bowl parties, Wall Street demonstrates time and time again that they just don’t get it,” said U.S. Rep. Edward Markey (D-Malden), rattling off other ways bailout recipients have spent money after they got taxpayer funds.”

• Wells Fargo defends, then cancels Vegas junket
• B of A’s Super Bowl bash – bailout firms ‘just don’t get it’

Wall Street firm Morgan Stanley, fresh off a $10 billion bailout, held a three-day conference for clients at a five-star oceanfront resort in Palm Beach.

For the life of me, I don’t understand how Morgan Stanley could have been planning an incentive to Monte Carlo when 7,000 employees were laid of last year and more lay-offs are planned.

The poor judgement of some organizations and the risk of negative publicity is now making even organizations that are doing well nervous about spending ANY money for incentives. This is throwing the baby out with the bath water.

When Rewards Have Been Earned

When your company or members of your team beat the odds and produce outstanding results, they deserve to be rewarded. Make the rewards proportional to individual and company performance. One size does not fit all and it should not have to.

For example, if some members of your team have gone above and beyond the call and your company is still struggling, by all means reward them. However, this is not the time for gambling junkets or stays at lavish resorts. Keep it simple. Maybe a dinner at a really nice restaurant for the team members and their spouses will have to suffice for this year.

However, companies that are doing well should not be afraid to pull out all the stops. Go ahead and reward employees who have gone the extra mile and produced exceptional results and show appreciation for your best customers. This will encourage them to do even more next year. The key is to ensure that organizations that are doing well do their share in terms of giving back to the community and contributing to local charities.

You can set up a simple matrix to determine the non-cash incentives and corresponding dollar value of the incentive to which each member of your team will be entitled.

Sample Sales Incentive Matrix

Your PR department should also ensure that the word gets out about your company’s outstanding performance and the success strategies that you and your team used to produce results. Heaven knows, we could all use some encouraging news.

Incentive Travel: A Triple Win

Incentive travel and events such as awards galas can be viewed as a triple win. The company wins because a motivated team produces higher results. The individual sales professionals win as they reap the rewards of their efforts and receive recognition from their peers. The economy also wins. Even if you simply have a modest gala or in your hometown, it’s a ripple effect. A simple event produces work for:

• event planners
• restaurants, caterers or banquet halls
• waiters, waitresses, hosts, and hostesses
• transportation companies if you use busses or limousines
• the drivers
• the printers who produce the invitations, signage and programmes
• grocery stores that supply the food
• retail stores that sell the clothes that members of your team will wear to the banquet
•  hairdressing parlours and barber shoppes
• entertainers
• musicians
• AV companies

In addition to this, an overseas incentive will also produce work for:

• airlines
• airline crew, staff and suppliers
• travel agents
• pharmacies
• luggage stores and manufacturers
• the stores at the airports
• hotels and resorts
• companies that manufacturer and supply linen, cutlery, etc.
• dry cleaners
• uniform supply companies
• florists
• landscaping companies
• tour operators
• local attractions

….and so on…and so on.

So, Should you Eliminate your Incentive Travel Budget?

If your company is facing challenging times, postpone the parties and luxury junkets. This is just not the time.  Instead, take a portion of the money you would have spent for an incentive and  invest in consultants and business facilitators with a proven track record that can help you get your company back on track.  When company performance improves, there will be plenty of time to celebrate.

If your company is doing well, don’t be afraid to splurge a bit. After all, you and your team have earned it.

Anne Thornley-Brown is the President of Executive Oasis International, a Toronto based consulting firm that regularly organizes incentive travel and executive retreats in Dubai, Abu Dhabi, Oman, Jamaica, Malaysia, Singapore, and Canada. They provide one stop shopping service with a personalized approach to incentive travel for corporate groups of up to 40. Customized itineraries include travel, transfers, hotel, business facilitation, tours, excursions, team challenges, and luxury corporate events.

Resources

Incentive Travel
Luxury Corporate Events

Other Articles

• The AIG Picture: Why it’s Worse Than you Think
• ‘AIG Effect’ Leaves Companies Wary of Incentive Travel:  But trading a significant revenue driver for safer public perception may not be worth it
• Incentive Compensation and Total Reward Strategies During a Recession
• Travel Insider: Incentive Travel During Economic Crisis

Video

• REAL BUSINESS RESULTS: How can the incentive travel industry deliver the message?

An Update – February 9, 2009

Now this seems to be a responsible approach by our industry:

U.S. Travel Groups Issue Guidelines for TARP Recipients

Susan Davis reports on politics.

A coalition of eight travel groups released a series of suggested guidelines today for how companies receiving Troubled Asset Relief Program funds should spend their money for business-related travel activities.

“General policy statement: The CEO shall be responsible for implementing adequate controls to assure that meetings, events and incentive/recognition travel organized by the company serve legitimate business purposes and are cost justified,” the guidelines state, which include encouraged policies to justify any trip exceeding $75,000 with a written statement for its purpose, not allowing expenses for such travel to exceed 15% of the company’s sales, and limits on how much you can spend per employee on “recognition events.”

The groups involved include: the American Hotel and Lodging Association, Destination Marketing Association International, International Association of Exhibitions and Events, Meeting Professionals International, National Business Travel Association, Professional Convention Management Association, Society of Incentive Travel Executives and the U.S. Travel Association.

The move comes amid public backlash over reports of corporations continuing junkets and other events even though they’ve benefited from taxpayer TARP funds.”
Suggested Guidelines for TARP recipients

Source

Survival Strategies For Turbulent Economic Times

Survival: The Name of the New Economic Game

People rarely have a neutral reaction to Survivor, the reality based TV show. Love it or hate it, with 51.7 million viewers for the final episode of its first season, it’s impossible to ignore it. Given our turbulent economic climate, Survivor is a powerful metaphor for what’s going on in the marketplace. We’ll look at some of the parallels between Survivor and the real world. Then, we’ll focus on survival strategies to help your company get through the rapid fluctuations of our turbulent economic times.

If your company has had a successful year of growth and profitability, you may be tempted to point your browser elsewhere. If you read on, you’ll find that the survival strategies we’re about to discuss are even more effective if you use them as preventative measures before your company runs into difficulty.

The Stakes

It’s tempting to laugh and shake your head when you watch Survivor but the parallels to the real world are way too close for comfort. Just like the current economic landscape, the terrain is rugged and the competition is fierce. Some people will do anything to make it. We’ve all met Deb, the highly productive and competent employee who rubs people the wrong way and gets fired for her efforts. We’ve also worked with Gerri, the attractive young woman, who will use any ploy, sexual or otherwise, to get ahead. Alicia, the competent and assertive African-American employee who gets canned because people find her intimidating. What would the corporate world be without the inevitable employees who smile in the face of co-workers and then cut them up behind their backs? Worst of all, on Survivor, the posturing, rumours, gossip, and backbiting intensify as times get tougher and the competition stiffer.

What’s sad is that all of these ploys, plots and schemes sap creative energy, kill morale, and undermine the effectiveness of the team at the very time when everyone should be pulling together. When the stakes are high and you can’t afford to lose, working as a team becomes a critical survival strategy.

On Survivor, make too many wrong moves and you face starvation, the cold or injury. In the real world, it’s downsizing, layoffs and bankruptcy. As Vancouver-based 360networks Inc. discovered, it doesn’t take much. Just one too many clients deciding not to go ahead with a project or postponing a decision to use your services until next quarter and it can be game over.

Changing Times … Changing Rules

In the real world, just like on Survivor, no one is immune. Anyone can get “voted off” the island. We have had a number of wake-up calls in the last decade from the tumbling of the NASDAQ in 2001, to the 2003 recession and now the 2008 Walt Street Meltdown. No need to repeat the names of all of the organizations previously considered to be rock solid that have been hard hit. We read about them daily in the headlines.

Survival is the name of the game in this economy. It’s tough out there so it’s not hard to understand why a show that enacts these dynamics metaphorically would continue to appeal to such a large audience.

What’s a Company to Do?

So what’s the answer? Truth is there are no magic answers. Just some strategies to consider. To survive this economic crunch requires a change in mindset. It involves recognizing that what worked last year may not be the right strategy for today. It will take the courage to try something different, a lot of support from suppliers, partners, and employees and, lots of prayer.

Retreat

Yes retreat. It’s impossible to come up with innovative solutions when you’re charging around putting out the latest fire. It doesn’t have to involve going to a resort for a few days. Save that for the party to celebrate your survival. If you really feel you must get away, it’s best to trim it down to one day at a location within 30 minutes driving distance from your office. Skip the golf and save by not forking out cash for hotel rooms. When the market is shifting so quickly, a weekly 2 -3 hour session where you zero in on a key area is probably a better plan anyway. Kick it off with a day off-site if you like but it’s important for your senior management team need to get together to really analyze your strategy in 4 key areas:

• market intelligence
• customer service
• recruitment and deployment of talent
• retention of top talent

If you have the skills to facilitate these sessions yourself, then go for it. Otherwise, take one of your senior facilitators out of the training room for a while, or hire a professional. It isn’t always best to go with the big guys. Remember, when you’re forking out $3500 a day to a large firm, a huge chunk of that is overhead. Are they charging you senior consulting rates and then sending you a rookie who they’re paying $600 a day? You’re helping them solve their survival challenges, not yours. A consultant from a smaller firm who has regular and first hand exposure to what it takes to win the survival game is more likely to bring you the expertise you need at this critical time. Also, don’t get caught up in the “not invented here” syndrome. During times of crisis, a fresh perspective is most valuable. It might actually be to your advantage to use a consultant from outside your industry.

I can hear you asking “are you for real?”

Absolutely! If you can’t free up at least 3 hours a week to focus on strategic issues that are vital to the survival of your business because the latest technical glitch, customer or employee complaint keeps landing on your desk, it’s a HUGE red flag that you can’t afford to ignore.

You need a super strong team at the director and management level that’s competent enough to handle the latest crisis and keep you informed. If you don’t have that, then you’ve just identified your first area of focus for your survival strategy sessions.

Talent Recruitment is not an HR Issue

During an economic downturn, companies often overlook the importance of a solid talent recruitment strategy. This is not the time to become complacent. An effective team will be your important weapon in your fight for survival.

As a result of the downsizing that’s going on, a growing pool of qualified, talented people is available on the market. We haven’t seen this in years. Organizations have the opportunity to thoroughly screen and assess candidates to ensure appropriate skill level and corporate culture fit. Pinpoint the key competencies that you require in your management team. Clearly define your requirements. Incorporate behaviour based interviews, rigorous reference checks and work samples into your talent recruitment strategy.

Apply the same diligence to your promotional decisions. This is not the time to let the old boys’ network come into play. You need top talent who will produce results and help you through these uncertain times. Sometimes this means looking at people who don’t quite fit the mold in terms of sex, age and race. Remember, you’re running a business and the name of the game is survival. If you want to surround yourself with people who can play golf and laugh at your jokes, join a country club.

Employ or Outsource

In an uncertain economic climate, the decision to expand your team should be weighed carefully. Is there any point in dramatically increasing your employee base to respond to new projects? An unexpected change in the financial stability of even a few of your key clients can mean a bunch of layoffs a few months from now. Hefty payouts for benefits, severance and vacation pay can substantially trim your bottom line. There is a pool of freelance and contract talent available to handle challenges at all levels of the organization. Ask yourself:

• Does this project really have to be handled by an employee?
• Is outsourcing a viable option?
• Would we gain more flexibility by responding to this increase in business by using freelancers or contract workers?
• Can tele-commuting be used as an alternative to increasing overhead in the form of office space, furniture, and computer equipment?

Ask your HR team to provide you with an analysis to compare the full cost of filling a position with an employee vs a contractor. Factor in the costs if there is a need to lay the employee off a few months or years down the road. The results may surprise you.

Be Compulsive About Customer Service

When times are tough, you can’t afford to lose even one customer to the competition. If one customer has a negative experience with a member of your team, that customer will tell dozens of people about it. This can gradually erode your customer base and trim your profits. This is not the time to cut back on training your front line employees. You need to ensure that they have all of the training, tools, coaching and support that they require to deliver top notch service to your customers. That is what will give you the competitive edge in this market.

Remember that customers come in all shapes, sizes and colours. You need to make it clear to all members of your team that their biases and hang-ups belong at the door. Every customer and every employee deserves to be treated with dignity and respect.

Talent Retention

In this turbulent economic climate, there is a misconception among some senior management teams that they no longer need to worry about talent retention. Even and especially if you have had to consider such drastic action such as layoffs, taking proactive steps to maintain the loyalty of your best talent is critical. If you treat some employees harshly during downsizing, then your most valued employees will wonder if they’re next. Their tendency will be to jump ship. Frank discussions with your team about the direction of the company, it’s challenges, and prospects are important. It’s best if employees hear the latest news, good, bad or indifferent, from you. Otherwise, the rumour mill will work overtime and undermine your efforts. Companies also need to shape and mould an employee friendly culture so that your best people will remain loyal to you until things turn around. During the last recession, companies that took advantage of the situation and made unreasonable demands of their team, sowed the seed of talent recruitment and retention challenges that plagued them for years.

Market Intelligence

When there is a downturn, marketing is often one of the first areas to be cut. Remember, Eaton’s, a Canadian retail giant, went out of business because its senior management team lost touch with their customers and marketplace trends. To survive this economic crisis, you need regular and accurate data about your customers and your market. Rigorously track demand patterns in your key markets.  Scan the horizon and seize opportunities in emerging growth markets.

What marketing strategies have been most effective in bringing your new business?

• Focus on those areas
• Save money by eliminating efforts that haven’t been paying off.

We have learned from the current crisis in the banking industry and the dotcom meltdown a few years ago that we neglect the fundamentals at our own peril.

Ask yourself:

What new market niches can you target?

• The ethnic market is growing dramatically in North America but you would never know it when you look at most advertising campaigns.
• The internet has literally opened up a world of opportunities, even for small businesses. If your traditional markets, are stagnating, look to areas of the world where there is growth and an increasing demand for your products and services.
• What are your competitors doing?

One of the contributing factors to the problems in the telco industry is that too many companies have been focusing on the same narrow market niche creating an over supply in the market. The real estate market is setting itself up for a similar problem by building too many luxury condos for the upscale market. If you’re all chasing after the same customers, there is bound to be a problem.

Is there an opportunity to forge strategic alliances with some of your competitors?

Sometimes it is possible to bundle your services in new ways to serve a larger customer.

Re-think Your Offer

Pinpoint your core areas of expertise and do some brainstorming to identify other areas in which you can apply it.

Bill Margeson, CEO of Markham based, CBL Data Recovery Technologies Inc. used to re-furbish and repair hard drives. A drop in the price of hard drives resulted in reduced demand for his services. Bill applied his expertise to data retrieval. In 2000, the company generated a profit of over $1,227,000 and was ranked by Profit Magazine as the 89th fastest growing company in Canada. The company has experienced stead growth worldwide since then.

Harness the Creative Drive of Your People

Earlier I mentioned that there are no magic answers. However, frontline employees who interact directly with your customers are in an ideal position to give you some clues. By involving your people in regular brainstorming and problem solving sessions, you can collect a lot of valuable information and ideas to help you resolve some of the issues you’re facing. For example, your frontline employees should be able to help you generate strategies to streamline your processes and reduce your costs. This could significantly boost your profit margin. Concord Idea Corp. ( number 42 on the Profit 100 ranking ) is able to produce memory at 33% of the cost of its competitors. Its 2000 profits were in excess of $800,000. It would be a shame to overlook this virtual gold mine within your organization.

The Bottom Line

Survival involves:

• getting a clear picture of where you want to go,
• building a management team that shares your vision and communicates it clearly,
• getting your team to pull in the same direction and generate valuable ideas and solutions.

You’ll reap the rewards in the form of:

• high morale,
• reduced turnover
• a committed team focused on your goals
• an improved bottom line.

When the economy recovers and it will, we hope that some of these strategies will help your company be a survivor.

© 2008 Executive Oasis International – All Rights Reserved

Anne Thornley-Brown is the President of Executive Oasis International, a Toronto based firm offering consulting, executive retreats, team building and incentive travel. The company offers a range of simulations with a survival theme to help organizations fine-tune their strategy during tough economic times. These simulations offer much more value than just “fun in the sun”. Your team will walk away with strategies and tools that they can use on a daily basis to boost performance and ensure corporate survival.

• Desert Survival in Dubai
• Mountain Team Building in Oman
• Arctic Survival in Canada and Alaska
• Island Survival in Jamaica
• Jungle Survival in Malaysia

The Rules of Survivor

The goal of the game is to survive. The last player to remain on the island at the end of the game wins $1,000,000. The game begins when 2 teams of strangers are left in a rough terrain. There is no opportunity for planning before the game begins. Each team has minutes to gather whatever supplies they can grab and trek across rugged terrain in search of their campsite. Exhausted and hungry, they must work together to construct some make shift dwellings, get a fire going (without matches) and figure out what they’re going to eat in the middle of nowhere. The inevitable jockeying for position and politicking begins almost immediately.  The losers get voted off, the winner takes all.

It’s probably too early to determine what impact the current meltdown on Wall Street will have on incentive travel. When the economic climate becomes uncertain, there is a tendency for many companies to cut back and become conservative in their spending.  A 2007 Incentive Magazine study has indicated U.S. companies typically spend about $50 billion  per year on incentive travel, merchandise and gift cards to reward and inspire, staff, dealers and suppliers. Certainly the Wall Street meltdown has sent seismic aftershocks  around the world. Asian stock markets have been reeling and the Dubai Financial Market General Index has felt the impact. Luxury properties do seem to be holding their own. With aggressive plans to build 60 hotels by 2012, and the agreement between the Jumeirah Group and Expedia signed in August, the Jumeirah properties do seem to be holding their own.

During turbulent economic times is it wise to put incentive travel, team building and executive retreats on hold?  Here is a perspective in a <b>National Post</b> article in which I was quoted during the last recession (2003).

In Tough Times, Smart Firms Retreat

Incentive Travel Tidbits

The Inside Scoop About Service Charges, Tips, and Commissions

I recently had a couple of interesting conversations that reminded  me of some misconceptions that a lot of people have about commissions, service charges and tips.  This will be a short post just to clear a few of these up.

Hotel and Restaurant Service Charges

Many groups are under the impression that, when you pay the 15% service charge to the hotel, all of it goes to the staff.  This is rarely the case.  It’s similar to what happens in the automobile service industry.  Savvy consumers realize that what they pay for “labour” does not go to the mechanic who worked on your car. A hefty portion of the labour charge is for administration and overhead.

In the hospitality industry, almost all hotels and resorts put the service charges collected into a pool. It is not just distributed to the frontline staff that served you. At some destinations, the service charge is shared with management and, sometimes, part of your service charge is even taken for administration. What is even more surprising is that, at some destinations, this even happens in restaurants and even the owner of the restaurant gets a cut from what you leave on the table.

Airline Commissions

There was a time when travel agents didn’t charge fees.  The internet has been both a blessing and a curse to the travel industry. Headlines like these are telling:

Commission cut adds to agents’ agony

Travel agents decry effects of commission cut.

PRACTICAL TRAVELER; Agents Set Fees After Pay Is Cut

With more and more travellers booking their flights directly through the internet, some airlines don’t pay any commissions to travel agencies or incentive travel planners. Even when they do pay commission, the percentage the airlines pay is low and ever shrinking.

Hotel Commissions

Some clients don’t  understand why travel agencies and incentive travel planners charge fees.  Well the reason is simple. 

• Some hotels don’t pay commissions at all.
• Many hotels only pay commissions to local travel agencies, meeting planners and incentive travel planners.
• Often, meeting planners and incentive travel planners receive commissions for sleeping room rates only.
• Also, meeting planners and incentive travel planners often receive no commissions for meals, meeting rooms, the meeting package, audio-visuals, or recreational activities booked through the hotel for the group.
• Commissions paid to meeting planners and incentive travel planners are typically low (5% – 10%) of what you pay for the room and that’s it.

(Please note:  IATA travel agents do receive 10% commission from many properties for rooms, meals, meeting rooms, etc. but this is not always the case, especially when booking foreign destinations.)

Here are some articles that discuss the trend by hotels to reduce or eliminate commissions. While it is not widespread in North America, this has been evident in other locations and there is a liklihood that hotels will eventually follow the lead of airlines.

• Discussion of decline in hotel commissions
• South African example
• More Hotels Bypass Middlemen

Implications for Group Incentive Travel

If you are planning a trip for your group, build in an extra 15% for tips and, on your last day, pay that directly to the restaurant, banqet and housekeeping staff that have served you. That way everyone is covered and the staff will be fairly compensated for their hard work. If you give the extra tips to the manager, he or she will be obliged to put it into the pool.

At restaurants, always thank the servers personally and discretely hand each of them the tip. Budget 10% – 15% in addition to what the restaurant has charged you for service.

If you hire the services of an incentive travel planner,  they will work hard for you and you will be charged a fee for services. About 10% – 15% of the value of your hotel, accommodation, excursions, etc. is reasonable.  (Smaller groups will typically pay the higher percentage and there will usually be a minimum fee.)

If you work with a travel agent, expect to pay a fee for service. As airlines continue to chop or even elminate  commissions, expect this fee to increase over time.

Suggeted Reading: James Mak explores some of these trends in his book Tourism and the Economy: Understanding the Economics of Tourism available through Amazon.

Anne Thornley-Brown is the President of Executive Oasis International, a Toronto based firm that regularly organizes incentive travel and executive retreats in Dubai, Oman, Jamaica, Malaysia, Singapore, and Canada. They provide one stop shopping service with a personalized approach to incentive travel for corporate groups of up to 40. Customized itineraries include travel, transfers, hotel, tours, team activities, and special events.