Luxury business events are far from dead, but they have become less ostentatious, more experiential, and more conscious of the returns they bring to the bottom line.
Business event specialists may differ in their report on the frequency of luxury business events these days, but they share one common observation â companiesâ greater need for compliance and spend transparency are resulting in less ostentatious programmes.
Eda Ozden, country manager Turkey with Pacific World, believes that while the need for luxury business events remain, gone are the days of showing off.
âFirms are becoming more transparent and private, and are thus scaling back (on luxury business events). They need to prove business results in such events,â Ozden explained.
She added that security reasons and âshareholder perceptionsâ are also pushing luxury business events into the shadows, âaway from prying eyesâ.
âWe see a shift from large fireworks to more private entertainment within enclosed spaces,â she said.
Jamie Roseburgh, market leader Singapore and ASEAN, American Express Meetings and Events, noted that transparency and compliance are important factors too which are impacting clientsâ event spend.
âWe typically define luxury events as those which donât necessarily need to have a measurable ROI, such as executive rewards, incentive programmes, or other non-revenue generating meetings. Such events are more likely to have uncapped F&B budgets and focus on experiences and enjoyment rather than a content-driven agenda.
âThat said, there has been a noticeable shift in focus on compliance and greater transparency over meetings and events spending over the past few years. Companies are very selective when it comes to luxury events. They havenât been removed altogether but companies are very discerning and luxury events are less frequent,â Roseburgh said, adding that the change is most apparent among US-based companies operating in Asia-Pacific.
It is all about the experience
With the stronger emphasis on event ROI, planners are challenged to deliver luxury business events in less ostentatious ways.
âEvent planners need to be a lot more creative in how they use the tools and technology at their disposal to conceptualise and create luxury events within tighter budgets,â said Petrina Goh, business development manager of CWT Meetings & Events.
âLuxury business events today are no longer about the cost per head, but rather about the service and event experience provided to each participant to make the event one of a kind. The challenge, of course, is to achieve this while simultaneously fulfilling the event and business objectives,â Goh added.
Goh believes that âplanners today are better equipped than ever before to create highly creative and personalised eventsâ, thanks to the advent of new event technology such as mobile apps and virtual and augmented reality platforms.
Different preferences of the younger generation of event attendees are also pushing planners to come up with âless apparent luxury and more money-canât-buy experiencesâ, Ozden told TTGmice.
âOnce-in-a-lifetime experiences are still popular. It might be a chefâs table with a Michelin-star chef, a design workshop with a famous designer, or a private concert of a famous artiste. Agencies that can make these happen are more valued than ever before. Clients are looking for agencies that can open otherwise closed doors,â she said.
According to Roseburgh, luxury events today are allowing greater personal choice. âProviding unforgettable experiences, such a volunteering in a community-based activity in South-east Asia, is an effective way to meet the objectives of a luxury meeting while managing costs.â
Love for local flavour
At The Fullerton Hotel and The Fullerton Bay Hotel, both located in Singaporeâs Fullerton Heritage precinct, luxury business events are observed to take in unique local experiences.
General manager Cavaliere Giovanni Viterale shared that a typical luxury business event could involve a gala dinner at either hotel, a late-night party at the Lantern rooftop bar â in The Fullerton Bay Hotel where guests could enjoy a signature Merlion Cocktail and a panoramic view of Singaporeâs cityscape â and a day programme of activities in and around The Fullerton Heritage precinct.
âFor example, the spouses could join our complimentary Maritime Journey Tour or Fullerton Monumental Tour, and rent a Segway from One Fullerton to tour the neighbouring Civic District, with a pit-stop at Merlion Park for an iconic photo opportunity,â he said, adding that The Fullerton Experiences at The Fullerton Hotels was recently launched for guests to experience local culture first-hand.
Fay-Linn Yeoh, senior director, brand management and marketing Asia Pacific, Marriott International, who does numerous branding events for her portfolio of hotels comprising luxury brands The Ritz-Carlton, St. Regis Hotels & Resorts and Edition Hotels â Asia-Pacific, said: âEvents should be tasteful and not decadent. We need to be sensitive and wise with the event budget. My recommendation is to work within three-quarters of the budget and balancing it with considerations of whether an element is a need or a want.â
Yeoh added that the right venue setting could bring out the luxurious side of an event. Citing an example, she said The St. Regis Singaporeâs John Jacob Ballroom was transformed into a tropical oasis, inspired by the cityâs UNESCO World Heritage Site Botanic Gardens, for the Sentebale Royal Salute Polo Cup Patronâs Dinner in June. The lush and elegant ambience drew compliments from guest of honour Prince Henry of Wales who said in his speech that the ballroom was one of the most elaborate spaces he has ever experienced.
It is no surprise that client-facing events enjoy the fattest budget.
For Goh, B2B and B2C events such as brand immersion and channel partner/distributor events are the most resistant to budget cuts as companies are more willing to spend on rewarding their distributors, channel partners and customers in order to build loyalty and greater brand presence in the market.
Ozden observed that luxurious experiences are still being ordered for member-only events and financial firm-led events meant to impress and reward top clients, celebrations for large-scale mergers and acquisitions or market entries.
âLuxury executive retreats and incentive programmes are most resistant to budget cuts because the focus continues to be on delivering an excellent experience for attendees, within the allocated budget. Even if budgets are flat or have decreased, planners look at the most cost-effective approach to delivering an experience which will still be considered luxurious,â said Roseburgh.
Yeoh remarked that âflamboyant events are limited to mostly social galas these daysâ and within the corporate realm, branded lifestyle events are the ones with the money, although even these are watching their expenditure carefully.
When asked which industry sectors are still splurging on luxury business events in the current economic climate, event specialists told TTGmice that technology and automotive companies are tops.