There used to be a saying that you can truly tell the buoyancy of the economy by the amount of hospitality that people buy each year.
Is that true today? Well, that is a tricky question. Having been in the business for 30 years, the current landscape is certainly a different time to what we have experienced, but it isn’t spelling
the end of hospitality.
When the Bribery Act was given Royal Asent in July 2010, it did confuse everyone; however there is much more clarity on it now and no need for businesses to cancel their hospitality schedules for fear of being strung up. Indeed, specific statements have been made by the Ministry of Justice and the SFO that traditional bona fide corporate hospitality is totally acceptable.
Wimbledon and the British Grand Prix, two of the more expensive events in the UK annual calendar, are quoted. Indeed whatever form hospitality takes, it is still important for client/supplier relations. Forming good relationships with people is done in down time, out of work. That’s when the real bonding is done, not over the phone or on social media. They all have their place, but really nothing beats face-to-face time, in short: simply hanging out.
The numbers are very different to what they were in the 80s when Cavendish Group was a fledgling agency.
To give you a little background, the 80s marked a huge period of growth; there was an upsurge in new business and huge budgets. Numbers for hospitality reached their thousands. In the early 90s, the recession caused many businesses to go bust and this made people assess why they were buying hospitality.
The Millennium year 2000 was a very good year, with huge numbers of packages sold, contrary to media propaganda The Dome sold very well. Cavendish alone took in excess of 10,000 people. The boom returned to some extent in 2006 and 2007. In 2012, we are finding that much like a designer handbag, the top packages are holding their prices and selling out, it’s the lower and middle markets that have lost out on numbers.
So what is happening? Wimbledon and the British Grand Prix sell out each year. Companies are taking fewer people to the high profile events. Hospitality is also being used more and more as an incentive.
It is now better for the company books to show that, rather than give a huge bonus to top perming staff; they are given an experience of a lifetime. The more pressurised the workplace has become, the more hospitality is being brought to big events.
It’s hard to believe, but in the late 80s football was deemed as downmarket, but with the advent of the Premiership, stadia boxes and suites being refurbished to a five-star degree, the appeal was quickly noted by the corporate market and now stockbrokers have boxes at Premier League Clubs.
Rugby Union has always had an enduring appeal, particularly with professionals. The Six Nations is now the most popular event in the calendar and southern hemisphere teams now come over here a lot. What has changed here?
Financial institutions prefer a much subtler approach. Branding and sponsorship is almost unheard of, previously you couldn’t move for it, hospitality is now not about showing off, it’s about being discreet.
Tennis has shown no signs of slowing down. Heavy investment by the All England Club with the roof over the Centre Court and upgrades to many other facilities has ensured that the product is contemporary and relevant to today’s market and the demanding high end customers, hence
its ability to retain its price threshold.
Horse racing has probably changed the most. It is the perfect event for hospitality for the simple way that the day is organised. Something different happens every 30 minutes (another race!). There are periods of action: the races, interspersed with eating and drinking, interspersed with chatting, discussion and exploring the facilities. It’s perfect for getting to know your guests without being too distracting.
The National Hunt Festival (Cheltenham), the Grand National, Royal Ascot and Glorious Goodwood have not lost their appeal. Interestingly the financial institutions no longer covet the high profile outside their facilities that they used to, as they don’t like to be seen spending money.
Racing has great appeal to couples and is good for logistics, distribution companies and manufacturers. The smaller races should not be forgotten because they provide a cost effective way to entertain and are perfect for local businesses.
Polo also has an enduring appeal, with the Cartier being the highlight of the calendar. The Hurlingham event, launched a few years ago, is also popular being on a smaller pitch with faster rules.
Golf, like cricket works as a hospitality event. Very good for bonding with plenty of client time, but not one to get wrong.
It would be a long day. Cricket has really seen reinvention since England dramatically won the Ashes in 2005. Cricket’s 20/20 has also widened its appeal and is more accessible.
So what is new? American Football is definitely seeing resurgence. Popular back in the 80s, it’s become fashionable again in the last three years and American league matches are now played over here, making it real for British fans.
On the concert scene record sales taking a dive has given way to top bands getting on the road to make some money. The big stadia including Wembley and, of course, the O2 are seeing a huge demand for top price tickets and boxes. On the other side musicals are also making a comeback and bespoke events are also on the rise with organisers looking for ‘something new.’
Is hospitality as dead as the economy feels? No, it’s not. There is still very much a place for hospitality; It’s how it is being used that is changing. It’s not about the show, it’s about the right perception and the right investment these days.
Any conference-related news? Email conferencenews@mashmedia.net
