Companies are cutting costs by means of hosting Web conferences, centralizing planning, switching to regional meetings, and axing lavish events

By Jena McGregor

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Koren Shadmi

In early November, Deloitte’s tax and consulting partners were due to unite at the Walt Disney World Swan & Dolphin Resort in Orlando, followed through a Deloitte retiree gathering. But Deloitte decided to cancel the couple events in mid-September and host Web conferences instead. "We just don’t be deficient to be holding a large event in the bad economy," says Deloitte director Margaret Moynihan.

With incorporated spending for that which is less than intense investigation, managers are sharp back in succession gatherings and axing everything from hors d’oeuvres to high-priced speakers at those that remain. Even some incentive trips to reward top performers are acquirement dropped: Wachovia (WB) canceled a Greek rove over the sea for 75 fiscal advisers and their spouses in October. (Wachovia and Deloitte say the moves were to keep advisers close to clients amid the turmoil.) Executives are conscious of the bleak outlook for 2009, not to cursory reference public outrage over American International Group’s (AIG) animalism retreats after a massive conduct bailout. AIG has since cut 160 conferences and other events costing a total of more than $8 million. "Some companies are holding firm. Most are not," says Gary Seltzer, a founding partner of New York event prolongation firm Concentric Communications.

While the press is prompting anxiety in the further than $120 billion-a-year U.S. meetings industry—trade group Meeting Professionals International issued a "call to action" entitled "Saving the Economy Through Meetings"—it’session also spurring companies to seek creative ways to cut costs out of avocation off scheduled events outright. Many own little choice, because they would face up to hundreds of thousands in cancellation fees. "The big shakeout put on this will probably be in this coming calendar year," says Maritz Travel Vice-President Chris Gaia. That said, companies still need to reward top performers, bring global teams contemporaneously, and network with customers. As Symantec’s (SYMC) worldwide operations vice-president, John B. Sorci Jr., argues: "You lose something when you put on’confidentially have those face to face meetings."

There are ways to hold events in a tough climate. Home Depot (HD) and Symantec are centralizing event planning and oversight to obtain better deals. "Very few CFOs can repeat to what degree much they’re spending on meetings," says Hervé Sedky, general manager of global advisory services and meeting solutions for American Express (AXP). Others are holding smaller regional events within driving distance for attendees instead of one single national confab. That saves airfare and invites less scrutiny than one splashy event. Many are shortening trips, too. In August, Tennessee-based retail chain Tractor Supply (TSCO) saved $500,000 by trimming a day off its managers’ assemblage and limiting invites to store and quarter managers, leaving assistant-level supervisors off the list.

Off-site events such since board meetings and fruits launches are moving onto company property. Five years ago, when Ford Motor (F) last introduced a redesigned truck, right and left 300 journalists converged at a private ranch in Texas to see it, leaving Ford with a tab of more than $2 million. When the automaker launched its F-Series pickup this October, it spent well under $1 the multitude by hosting the event in Detroit and putting guests in a suburban hotel. Chief Marketing Executive James Farley makes no apologies: "This is a belt-tightening period, for sure."