04 November 2009

Out $2 billion, travel industry trying to improve image

The US travel industry is working to redefine itself as critically important to the country by:

• Portraying itself as a key player in the American economy.

• Showing how companies can improve profits.

• And communicating how it is a major provider of jobs.

Geoff Freeman, US Travel Association senior vice president, said various factors have led to the industry’s downfall and a loss estimated at US$2 billion worth of events and meetings.

These include a spurt of public anger over extravagant business travel, and politicians who have lashed out at the travel business to damage the industry’s image.

If over the years the industry had done a better job of articulating why it is a vital economic force, the damage likely would not have been so great, Freeman told a national marketing forum organized by the association.

"We had left ourselves exposed, terribly exposed. We were the folks that were an easy target," Freeman said.

Steve Moore, president and CEO of the Greater Phoenix Convention and Visitors Bureau, said hospitality groups focus too much on hotel and meal taxes, when they should tout their economic impact. That includes sales taxes and property taxes they bring to communities.

The convention business can do more to paint a picture of the people who work in the industry and note that travelers don't drain city services, Moore said, according to the AP.

Citing research by Oxford Economics, a consulting firm that collaborates with Oxford University's business college, Freeman said that for every dollar companies spend on business travel, they get an average of US$12.50 in revenue and US$3.80 in profit.

Christine Duffy, president and CEO of Maritz Travel Co., a corporate meeting organizer, said meetings are a tool for keeping "employees engaged and motivated."

"Sales and marketing executives know they have to get back in front of their people," she said.
Despite the publicized benefits, the meeting business is obviously down nationwide.

Even groups such as teachers unions whose bylaws require annual gatherings are finding turnout as much as 30 percent below normal.

By David Wilkening