26 Oct 09 The AIG Effect

Many corporations are squirming under public scrutiny. Meetings are an essential element of corporate business; however, no one wants to be perceived a spendthrift when it comes to event planning. Ironically, teams are under more pressure than ever and get away meetings are important to corporate health.

The AIG effect refers to public outcry over frivolous spending by the American International Group, Inc. just days after receiving billions of dollars from Congress. When word got out about the $440,000 trip to a luxury resort, the public cried, “Enough!” The travel industry took a big hit and meeting planners have shied away from splashy locations for conventions and business meetings.

The good news is that regional convention centers benefit. To the public’s mind, holding a convention in Philadelphia is far more austere than holding the same event in Las Vegas. Events held on the waterfront are less popular now than ones held inland. Golf may still be part of the package, but chances are corporate golfers will pick courses that are out of the limelight.

The AIG effect isn’t completely negative. Even though planning purse strings have been tightened, events still take place. Buffets are replaced by sit down dinners and wines are less expensive. People travel by car rather than plane to events. A tough economic time reminds us all that business reputations are a valuable commodity and must reflect the times.

Tags: Aig, American International Group, American International Group Inc, Buffets, Business Meetings, Corporate Business, Corporate Health, Economic Time, International Group Inc, Limelight, Luxury Resort, Meeting Planners, On The Waterfront, Public Outcry, Public Scrutiny, Purse Strings, Regional Convention, Reputations, Spendthrift, Vegas Events