Only here for the beer

What is typical about this scene is the conference party culture, where attendees splash out thousands of company pounds on rounds of drinks long after the hosted bar has shut. “The worst conferences are those with no parties,” says Fiona Kali, head of corporate events for P&O Travel. Kali notes that most companies put down the social aspect of a conference and networking opportunities as the top reasons for attending.

Indeed, Dev Anand, managing partner for Impetus Marketing, says, “Most of the time the list of speakers is not that spectacular and the educational sessions are on topics I can read about in a book so the main reason to attend is networking”. After a long day of glaring at eye-crossing charts in a dark, frigid auditorium, where the only salvations are a 10-minute break for a weak cuppa and a lunch of undercooked chicken, business travellers also feel they deserve a little evening entertainment.

But as business travellers are increasingly forced to squeeze their budgets, a good, old-fashioned piss-up is hardly a justifiable reason to attend a conference, even if you do exchange a few business cards. “After several hundred pints you probably shouldn’t be talking business anyway,” observes David Hickman, national parts manager for Scania, an automotive retailer. Over the past few years, Hickman says Scania has scaled back on the number of conferences it attends and more closely examines the total cost of the event, including lost productivity from time spent away from the office and the physical price of the trip itself.

“A lot of times these events sound good on paper and the destination may be nice but you get absolutely nothing out of it.” As conference registration fees continue to climb, a larger population of companies are cutting back on the number of meetings they attend and setting higher expectations on their return on investment, says Accenture analyst Alex Cruz. Cruz estimates registration costs have risen by 25% to 36% over three years, with some companies now paying upwards of £1,500 per attendee. Factor in the price of air, car and hotel and time out of the office and that price tag can easily triple.

Todd Kramer, vice president of events for Carlson Wagonlit Travel, says companies need to be particularly mindful that most business conferences take place at four and five star hotels, whose room rates have skyrocketed over the past three years. “I think the maximum registration fee people are willing to pay is £1,300, but they need to realise a substantial return,” says Luca Favetta, director of global events for SAP, SA. Favetta notes that some business travellers are fed up with events where it is all about schmoozing and are increasingly selecting conferences based on content.

Others are not willing to pay any conference fees and believe event organisers are profiteering off the backs of companies for which conferences are a fundamental part of doing business. “I refuse to pay registration fees and am very selective with the conferences I attend,” says Gerard Greene, CEO of bargain hotelier Yotel. Greene recalls a conference he attended two years ago in Delhi, where he agreed to be a speaker. “It took me 16 hours to get there and it turns out I was on a panel with eight other people so got to speak for three minutes. That experience taught me a lesson. My time is money and it is too valuable to waste on many of these events.”

For Ajay Thakkar, director of international sales for Cendant Hotel Group, whose brands include Travelodge and Wyndham, attending conferences is more about keeping up appearances than striking new business. “Generally, a lot of the same topics are repeated and you rarely see any fresh faces so it’s more a matter of maintaining a presence and keeping the rumour mill at bay, so people don’t say, ‘Oh, why wasn’t Cendant here?’”

But there is another, auspicious reason for attending a conference, says Stephen Etchells, head of American Express’s business travel unit. ”The flexibility provided by networking time, often means that the work/life balance is maintained throughout a conference.” In addition, depending on the conference location, some delegates may choose to take leisure time before or afterwards, says Etchells.

Recruitment consultant Jonathan Lee attends as many as 20 events annually, so welcomes the chance to mix business with pleasure. “The destination can be a deciding factor on whether I choose to go to a conference. I’m a golfer so I try to play with clients if there’s a golf course. Last year I went to a conference in Portugal and brought my wife. She had a great time shopping all day while I was in meetings,” Lee muses.

“The destination does make a difference,” says Tony Jones, general manager, conference & events at FCm Travel Solutions. From a venue perspective, wireless connectivity and recreational facilities such as a spa are becoming more essential. How long it takes to get the conference destination and how efficient the transport is are also top considerations for attendance.

For top-earning consultants like Cruz, where time is serious money, the ROI of attending a conference must outweigh his days out of the office. “It’s impossible to be scientific about it, but I make every effort to ensure my time is well spent. If I’ve got work to do, then I’ll do it in the lobby so I can keep an eye on who’s going in and out and catch up with as may clients and prospective customers as possible.”

Five years ago, attending a conference was a sort of perk, observes Cruz. While incentive events still exist to reward top performing employees and high-value customers, for the most part, people take their take their time on the road and their budgets more seriously. “We tend to err on the serious side and sometimes we have to remember that it’s okay to not always talk business and just have a drink,” says Cruz. It’s the getting into fistfights bit that doesn’t go over well.