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Spotlight: David Gabri, President and CEO of Associated Luxury Hotels International

David Gabri is President and CEO of Associated Luxury Hotels International (ALHI)—a company uniquely on the frontline of the current debate over the value of the corporate and association meetings. For 23 years, ALHI has specialized in meeting and incentive travel sales. Hotel, resorts and conference centers are dues paying members in a quasi-coalition arrangement. ALHI augments the sales and marketing efforts of its members by acting as a liaison with Meeting and Event Planners as well as Incentive Travel Sales Executives.

“We even the playing field between independent hotels and smaller brands with the larger brands and chains,” explained Gabri, and as such, ALHI represents more than 125 premier Four & Five Diamond/Star quality meeting hotels/resorts and conference centers worldwide, with the vast majority in the U.S.

An impressive portfolio in any year but 2009, as the downturn in the economy combined with various stimulus packages from the Federal Government has resulted in the association by some of the term ‘luxury’ with the ‘AIG effect’—irresponsible spending by corporate executives on lavish excursions—raising the ire of politicians and the media. Small-to-mid-size meeting venues as well as planners of meetings and events that utilize those venues are on the defensive as they combat the perception that the training, education, networking and planning essential to business lacks value.

So, in addition to an economic downturn and across the spectrum belt tightening, there’s the problem of perception also challenging Meeting Planners and ALHI facilities. In this highly relevant Spotlight, Gabri remains optimistic about the meetings industry and emphasizes that right now, Meeting Planners greatly benefit in what is a buyers market. Gabri, who acquired ALHI in 2003, has more than 30 years experience in meeting and incentive travel sales, most recently as Executive Vice President and partner of Tishman Hotel Corporation, where he led the strategic marketing and sales for the company, which had revenues of nearly $600 million annually. When he started with Tishman, the company operated a single location—14 years later when he departed, the portfolio had grown to 23 hotels and resorts.

ALHI represents 90,000+ rooms and more than 9 million square feet of meeting space. The company has a national sales staff of about 40, specialize in meetings and incentive programs requiring from 10 to more than 5,000 rooms, and 17 National Sales Offices, including locations in: Washington, D.C., Atlanta, Boston, Chicago, Dallas, Denver, Louisville, Miami,New York City, North Carolina, Orlando, Philadelphia, Richmond,San Diego and Toronto. 
 

FOL: Is there anything different about the current economic situation compared to previous downturns?

D.G.: Yes. We are not working together to build our business and reverse the downward trend more quickly. In past downturns we have seen government verbalize support for business and travel that keeps America strong. In this unprecedented year, we see legislators and others, including certain journalists, condemning legitimate business practices based on their perception. 

FOL: Is Luxury a bad word these days?

D.G.: In truth, anybody in business does not want to be seen as over spending. It can be a semantics game. But the reality is, you remove the word luxury, people are still going to want to utilize a meeting hotel that can give them quality meetings. In our sector, ALHI members are committed to quality and are not going to wave those standards and lose their ratings just because of a business cycle downturn. It’s just semantics. Businesses and associations want a meeting that meets their expectations and that means quality.

FOL: Has the economy impacted the small-to-mid-size meetings market ALHI venues specialize in?

D.G.: Yes. ALHI members are feeling the declines in overall business travel and leisure demand across the nation. Consequently, this situation provides more room availability for group meetings and events. We have provided planners significantly more favorable business terms and rates to secure business for 2009 and 2010 from all of our hotels and resorts as compared to past years.

FOL: Have you seen more cancellations for 2009 meetings than in 2008?

D.G.: Yes, but most are continuing with their business plans to advance their business needs. In 2008 we experienced twice the typical year in cancellations. This year to date, cancellations have continued at 2008 levels but we expect this to subside after the first quarter of 2009, since many of last year’s cancellations were for 2009.

FOL: The current economic climate generally means that Meeting Planners have more responsibilities and a bigger work load. What areas of a meeting can ALHI venues best take up the slack for Meeting Planners?

D.G.: We have a vested interest in the success of a meeting. For those attempting to draw attendance, such as with associations, we can contribute marketing support to advance the program’s success. Our experienced conference services departments take on a large part of the planning and organizing to support planners, and our upper-tier venues have remarkable spaces to support décor desires for specific special events.

FOL: Budgets are tight. What areas of a meeting can be cutback?

D.G.: Our ALHI hotels have contributed by negotiating favorable room rates to support overall budgets. One area of cutbacks can include “special décor packages” since the norm at our venues are generally fantastic.

FOL: In what areas are no cutbacks possible?

D.G.: I would not cut on quality, since it represents your market positioning and meets the expectations of those that support your association.

FOL: ALHI has been around for 23 years, so you’ve seen economic downturns (as well as upswings) in the meetings market before.

D.G.: We have. National sales services of ALHI include being an Account Advocate to those we serve. Right now there are several incredible buys in terms and rates that make sense for planners with vision.

FOL: What do you mean by Account Advocate?

D.G.: An advocate for the Meeting Planners who use our services. We work to find an ALHI facility that complements the objectives of the meeting, meet their criteria from a physical and budgetary, and even emotional standpoint. We provide planners a lot of insight to what is available, what might not be appropriate for their meeting or event at a specific time or help them avoid a facility where the circumstances might not make it the best place to host their meeting.

FOL: Is there any advice you can give Meeting Planners for weathering this downturn?

D.G.: Absolutely. “Dance with those who brought you…”… support your national sales teams that service your organization faithfully when the tide is in or out. Take leadership in proclaiming the educational and business value of meetings and conventions and book now into the future to save and capitalize on the terrific terms now available. It will payoff big time in the future.

FOL: What sectors are most impacted by this economic downturn?

D.G.: All sectors are impacted. Regarding meetings, perhaps the luxury sector now since some decisions are being made on political or internal perception, rather than simply on good business practices. I am confident the cycle will again turn around quickly and by 2011 it will likely return to be a sellers market again.