It might be the season to be jolly, but this year, several local event venues have seen cut backs on merry-making events by local employers.
Event planners said bookings for corporate holiday events are down this year – some by nearly 15 percent.
The current economic slump has some employers axing five-course meals and entertainment in favor of in-house appetizers or no parties at all, they said.
But for the event sites that seem to be faring best, corporate holiday activity is on track with 2007 or has dropped, but not as far as expected.
Fielding cancellations
Event cancellations this season have been more common than in previous years, especially for small companies, said Maili Morrison, director of sales for The Heathman Lodge in Vancouver.
“The ones that are cancelling are smaller companies being hit the most by the economy,” she said. “Larger companies are feeling the economic pressure but are downsizing.”
At Royal Oaks Country Club in Vancouver, at least three groups that held parties in the $5,000 to $7,000 range cancelled, along with at least five smaller groups.
But those events have been replaced by those of similar stature, said Events Coordinator Cory Bartel.
That hasn’t been the case for many other venues.
“Caterers tell me they’re having cancellations left and right,” said Frances Anderson, facilitator of the George C. Marshall House on Officer’s Row in Vancouver. “Normally our Christmas is pretty well booked in the middle of the summer and this year we didn’t get a lot of bookings until the end of October or early November.”
Anderson booked 13 events this month, including three corporate holiday parties. Last December had 23 events and there were 27 in December 2006.
Some companies may not feel it is fair to make company layoffs then have a party for the employees who remain, Anderson said.
At the Vancouver Elks Lodge, a family-owned company cancelled a holiday event this season that “has been our rock standard for the last four years,” said Carol Fitzgerald, who coordinates events there.
The client, which she declined to name, typically brought in 150 guests and was a transport sector business challenged by gas prices and increasing overhead.
“It just swallowed them up,” Fitzgerald said. “They’re almost grieving over (the cancellation), trying to take care of their own. Because of their faithfulness in years past, I put them on the 2009 calendar.”
Pinching pennies
Many companies scheduled last-minute parties with smaller budgets and shorter guest lists.
“I think a lot of companies, like a lot of consumers, are taking it month by month,” said Kevin Young director of sales and marketing for Vancouver-based Red Lion Hotel at the Quay, where corporate holiday bookings are down 13 percent.
“In the face of the kinds of cuts that all businesses know they’ll have to consider in these times, the idea of being really extravagant at holiday times might not sit well,” Young said.
He had expected holiday events to drop as much as 30 percent, so a 13 percent drop has been a relief. That has helped keep the business “generally healthy,” Young said.
To keep clients who may have otherwise cancelled events at the Elk’s Lodge, Fitzgerald has renegotiated events contracts that were already set.
“We were basically working deals out with them,” she said.
To afford the site’s charges of $1,500 to $2,800, large groups have opted for family-style meals, cutting gifts and bonuses and avoiding meal times to save on food costs.
Morrison has noticed a big drop in holiday luncheons on weekdays, particularly for employees of HP and financial institutions that used to be regulars.
“We would do three or four a week with 100 to 200 people and we haven’t seen any of those,” she said.
Affordable alternatives
Event planners have found flexibility to be the key in keeping the merriment – and the event dollars – flowing.
Vancouver-based Beaches Restaurant and Bar is taking a different approach to catering corporate events this month.
After learning that three parties the restaurant was set to cater at The Marshall House and Pearson Air Museum were cancelled, Marketing and Community Coordinator Ali Novinger contacted those clients to propose catered holiday events at their work sites or an employer’s home.
“They have decided to do lunch at their office so they can do something for their employees,” Novinger said.
Savings on site rental and entertainment meant clients didn’t have to be as thrifty with catering and kept Beaches’ catering arm steady this season.
For companies with limited budgets, local event planners agreed that holiday party essentials are good food and time away from work with colleagues.
“There’s a lot of goodwill and morale that comes out of socialization outside the office,” Young said. “A lot of times they get to know each other better in a couple hours than they did in the previous year. Walls can break down, communication goes up and empathy can increase. We can always use more empathy.”
Charity Thompson can be reached at cthompson@vbjusa.com.
