Corporate Events in a Hospitality Industry - Essay Example

?Corporate Hospitality By Tourism of Corporate Hospitality 0 Introduction Most countries in the world depend on tourism and hospitality as the gigantic gest source of revenue. Indeed, the tourism and hospitality sector plays a significant role in economic emancipation. In today’s technologically advancing world, and competitive business markets, various organizations must come up with new strategies aimed at retaining customers and even attracting more. Additionally, many business segments focus on modalities of expanding their portfolios in order to increase their share. In fact, many organizations have turned their prime activity into attracting and retaining customers. However, in order to attract customers, companies must have sound marketing strategies, for example, promotions or sumptuous events, where they will have the opportunity to explain to customers their products and services, and perhaps promote them (HENDERSON& MCILWRAITH, 2013). Coming new into the marketplace is corporate hospitality. Although hospitality has been in the marketplace for centuries, corporate hospitality is a new area certainly. In this new area, organizations perform additional activities aimed at pleasing their customers. The main role of corporate hospitality to an organisation or company is to entertain clients so that they become happier than they were before. Nevertheless, as days go by, organizations have extended the roles of corporate hospitality to include employees and business owners as well. The UK corporate hospitality has advanced very fast and many people consider it one of the best. This is simply because the sector has mastered the art of linking spectators and activities in order to offer judicious hospitality products and services to clients. According to estimates from the government, the hospitality market in United Kingdom has grown at a fast rate, and even surpassing the 150 million Pounds mark set out by the Ministry of Tourism (TOTAL RESEARCH, 2007). Owing to these promising statistics, the hospitality market has the responsibility of or retaining and attracting new customers by adopting new strategies. In fact, there is also a trend that business segments that do not encourage corporate hospitality end up losing clients, and therefore, it is significant that organizations bring events and activities to retain the seamless experience of their clients. This report will assess the holistic nature of the corporate hospitality segment in United Kingdom (MASTERMAN, & WOOD, 2006) 2.0 Report Synopsis As discussed in the introduction part, corporate hospitality is the event or activity that an organization extends to its employees, staff or clients in order to satisfy them. Depending on the target population, employees or staff, these events or activities can differ. There are several sectors within the corporate hospitality segment. To start with, we have spectator sports. These include events such as tennis, golf and football. The second category is that of participatory events, which include fishing, sailing and driving. Lastly, we have cultural events such as concerts and music festivals (MSI MARKETING RESEARCH FOR INDUSTRY LTD, 2002). Thus, depending on the target audience, activities can vary. Although projected to be the prime form of marketing, corporate hospitality has experienced some challenges especially in the last decade. Between 2003 and 2007, corporate hospitality registered impressive growth figures of 5-7%, but in 2008, the growth rate stood at 2%. Analysts blamed the global economic meltdown, which affected business performance not only on UK but also in other parts of the globe. In fact, the decline continued to 2011, meaning that organizations had to abandon big events for less entertaining ones due to the reduced number of prospective clients. Another factor that affected the growth of corporate hospitality is off-putting media coverage. Some media agencies, such as AFP, reported that some UK banks, Fortis and Dexia, organized lucrative dinner for employees when the banks were facing crisis and had requested bailing out from countries such as Netherlands and France. Undoubtedly, it became quite challenging for corporate hospitality companies to organise events. In fact, in difficult times, such as an economic slowdown, corporate hospitality companies do away with corporate hospitality activities and events (TEARE, & OLSEN, 2002). The question that many ask is how to market companies without such events and activities. In fact, in hard economic times, companies cut budgets on lavish spending on corporate hospitality events in order to save them from collapsing. If this is the case, then corporate hospitality will suffer greatly. A new trend in marketing is emerging and instead of corporate hospitality, companies employ other strategies to market themselves. However, it is important to note that events and activities remained. The only change somehow is the lavish nature of the events and activities. Companies use terms such as ‘customer relationship marketing’ and ‘assessing effectiveness’ in the new trend of corporate marketing (SLOAN, LEGRAND& CHEN, 2009). In this way, companies are approaching corporate hospitality form a different perspective that will not elicit anger among the public or business community. Nevertheless, owing to the benefits that corporate hospitality brings, many companies continue to organise events and activities that will retain and attract more customers in the highly competitive marketplace (OSTERLAND, 2012). 2.1 Coda Plastics Limited Various multinational organizations organise events in order to retain customers and attract prospective clients. Additionally, organizations organise corporate hospitality events and activities in order to reward staff and owners (GOLDEN-ROMERO, 2007). These events are vital and serve as a market approach. Indeed, Coda Plastics Limited is one of the biggest manufacturing companies in the world. However, the plastic market is a competitive one and it requires marketing strategies in order to retain and attract customers. Coda Plastics Limited organizes corporate hospitality events for staff and customers for various reasons. For example, corporate hospitality events help both staff and customers to socialize, relax and build strong business partnership. The company takes employees and selected clients to destined places. 2.2 Corporate hospitality events I was recently an organizer of corporate events of Coda Plastics Limited. I chose Hever Castle and Garden for carrying out corporate hospitality events. Hever Castle and Gardens is an exciting place with meeting places and excellent conference facilities. If one wants to ride a bicycle or participate in events such as digger driving, quad bikes, and apache cars, this is the best place (RATCLIFF, 1998). Additionally, it is also possible to participate in other activities such as pigeon shooting, falconry display, and racing. Hever Castle Golf Club is also an exciting place for owners and top management team of the company to play golf that is synonymous with them. Moreover, this is a place that one will enjoy wide-range of services and facilities (KNOWLES, 1996) 3.0 Requirements 3.1 Corporate entertainment and hospitality The first thing to consider is expenditure. The Managing Director will fund the event at ?600 per person (BAXTER, 2002). The corporate event caters for only 40 guests. This implies that the total amount intended for expenditure is $24,000. However, some amount ranging from $300 to $ 500 to be budgeted for an occurrence of any unforeseen expenditure. Clearly, this budget can withstand public scrutiny considering the fact that it will run from Friday afternoon until Sunday evening. This is approximately a two- day event. However, the biggest aim of carrying out this exercise is to promote the affairs of the company and boost its market share. More over, the event may add value to the general picture of the company to the clients (MINTEL INTERNATIONAL GROUP LTD, 2002). Similarly, this event may lead to the development of strong links with other partners which is an essential aspect in the corporate world, where each company or firm occupies a unique market niche defined by the quality and nature of products or services offered. 3.2 Expenditure In most organizations, there is a fixed amount of money to spend on corporate hospitality events. For instance, Coda Plastics Limited does not exceed ?600 per person on such events. It also budgets for only 40 guests. The Managing Director is the one who authorizes the release of money to the organizing team (KNEZ?EVIC? & ASSAF, 2011). This amount of money covers all events and pays for additional costs such as meals and accommodation. In our budget, we planned the amount of money for meals, conference hall charges, entertainment, sporting events, cultural events, and gifts. The organisation agreed separately to provide transport to the venue. It is also important to note that the team comprised of experienced individuals who had knowledge and expertise in corporate hospitality events. This assured the management that every single aspect of corporate hospitality events that brought employers, employees together the clients remained part of the preparation process (GOWER, 2007). Upon completion of the events, our team made an audit report and presented it to the company for accountability purposes (BENNETT, 2003). The audit report included financial statements such as the proposed budget and the realized one, balance sheet and annexed recommendation note for future consideration when planning for similar events. Moreover, the activities remained undoubtedly commensurate with the goals and objectives of the company. This is important because of the nature of attention that the public can create when the events seem overly extravagant and flamboyant (PIZAM, 2005). 3.3 Invitation This exercise sets a budget of 40 guests. As part of the organizing committee, we planned how to carry out invitations of these members. The corporate events and sponsorships team also chose the place for the events (TUTT, 2012). The team sent cards to guests. It is imperative to note that, the invitation was confirmed through phone calls. This act ensured that the budget set out for the event is sustained. 3.4 Guest Lists Coda Plastics Limited through the organizing team has the responsibility to extend corporate hospitality rewards to prospective clients and employees (MINTEL, 2005). This is because the organisation understands the role of corporate entertainment and hospitality to the business. Due to the magnanimity of these events, it is good to have a clear list of all invited guests for both organizational and commercial reasons. The team prepared a list of 40 guests and their preferences. In coming up with the list, we had to consider certain benchmarks such as not to have more staff members than clients. In the same regard, the aspect of gender parity remained fundamental. More over, the list included junior level employees in order to motivate them. Against each name, the team also indicated the type of even that each participants would like to participate. This was good for purposes of planning and future audit. Additionally, this helped us to plan for these events so that nobody misses out his or her preferred event (MINTEL, 2004). The selection criteria made sure that we do not end up with only employees and employers, but also included clients. Moreover, we chose Hever Castle Limited because it has qualified personnel who will help each and every guest whenever need arises. In case any guest declined the invitation, we informed the Managing Director for replacement. 3.5 Corporate Gifts Normally, in many corporate entertainment and hospitality events, invited guests participate in conferences meant to discuss certain issues. In those conferences, the convener of an event can award gifts to staff and clients based on set criteria. In this case, ?50 per person was set aside to cater for gifts. The gifts act as a precursor of gratitude for the services rendered and more significantly, to motivate the service providers to sustain the standards particularly in a competitive market niche (DAVIDSON & COPE, 2002). On behalf of the organisation, the Managing Director presented the gift to all guest on the final day at a conference. Gifts play a significant role in marketing. For instance, gifts can help in retaining customers and attracting prospective clients as well. It is imperative to note that, whenever clients and business practitioners meet to discuss business issues, then there is progress. Corporate entertainment and hospitality events can help boost customer base of very numerous enterprises and make them not only dominant in the market, but also profitable. Conclusion This case study reveals that corporate events in a hospitality industry like any other sector play a fundamental role in retaining and motivating clients, building an image of the company or firm among the developing partners in the industry (MATHEWS, 2007). More over, such events aid in safeguarding and improving the performance of its market niche through exchange of ideas relating to the market performance and projected dynamism in the sector. It is imperative for corporations to embrace the culture of meeting their clients and employees in such events. This provided a platform different from the normal boardroom meetings to exchange relevant information about the industry and economy at large. List of References BAXTER, J. (2002). Corporate hospitality. Hampton, Middlesex [England], Key Note Publications. BENNETT, R. (2003) Corporate Hospitality; executive indulgence or vital corporate communications weapon; Corporate Communications; An International Journal.4, pp. 229-240 Centre) DAVIDSON & COPE (2002) Business Travel, Conferences, Incentive Travel, Exhibitions, Corporate Hospitality and Corporate Travel, Prentice Hall GOLDEN-ROMERO, P. (2007). Hotel convention sales, services, and operations. Amsterdam, Elsevier/Butterworth-Heinemann. GOWER, I. (2007). Corporate hospitality. Hampton, Middlesex [England], Key Note Ltd. HENDERSON, E. A., & MCILWRAITH, M. (2013). Ethics and Corporate Social Responsibility in the Meetings and Events Industry. KNEZ?EVIC? CVELBAR, L., & ASSAF, A. (2011). Privatization, market competition, international attractiveness, management tenure and hotel performance: evidence from Slovenia. International Journal of Hospitality Management. 30, 391-397. KNOWLES, T. (1996). Corporate strategy for hospitality. Harlow, Essex, England, Longman. MASTERMAN, G., & WOOD, E. H. (2006). Innovative marketing communications: strategies for the events industry. Oxford, Elsevier/Butterworth-Heinemann. MATTHEWS, D. (2007) Special Event Production: The Resources, Elsevier MINTEL INTERNATIONAL GROUP LTD. (2002). Corporate hospitality. London, Mintel International. MINTEL, (2004) Corporate Hospitality, Mintel (available on the information databases in the Learning Centre) MINTEL, (2005) Spectator Sports -UK, Mintel (available on the information databases in the Learning MSI MARKETING RESEARCH FOR INDUSTRY LTD. (2002). Corporate hospitality: UK. Chester, MSI Marketing Research for Industry Ltd. OSTERLAND, E. A. (2012). Power entertaining: secrets to building lasting relationships, hosting unforgettable events, and closing big deals from America's 1st master sommelier. Hoboken, N.J., John Wiley & Sons. PIZAM, A. (2005). International encyclopedia of hospitality management. Amsterdam, Elsevier Butterworth Heinemann RATCLIFF, Z. (1998). Corporate hospitality. Hampton, Middlesex [England], Key Note Publications. SLOAN, P., LEGRAND, W., & CHEN, J. S. (2009). Sustainability in the hospitality industry: principles of sustainable operations. Amsterdam, Butterworth-Heinemann/Elsevier. TEARE, R., & OLSEN, M. D. (2002). International hospitality management. New York, Wiley. TOTAL RESEARCH. (2007). The United Kingdom corporate hospitality report. Brentford (Watermans Park, 40-52 High Street, Brentford TW8 0BB), Total Research. TUTT, L. (2012). Corporate hospitality. Teddington, Richmond Upon Thames [England], Key Note Ltd. Read More