How higher taxes could keep TDs grounded

Posted on Oct 10, 2011 | 0 comments

It is no secret that over the past few years, the meetings industry has changed drastically.  Annual meetings have been cut in half and many incentive trips have been cancelled altogether.  TDs are still crossing their fingers for the exotic destinations of the past, but those trips have become very few and far between.

Clients do continue to want experienced, professional staff and near perfect meetings, but keeping the program costs as low as possible has become the main agenda for many meeting planners.  It first impacted the destinations chosen for meetings and the length of the meetings; then clients began offering less “pampering” for the attendees.  Most recently, and what we at ETD have noticed first hand, is that this lower-cost mindset has significantly impacted who is asked to work a meeting.

Over the past few years we have seen a dramatic increase in requests for “local” staff to help out on-site.   Many clients have already chosen not to contract TDs with whom they have good standing relationships, if it means they have to purchase airline tickets.  Unfortunately after reading a recent article from USA Today Travel, it seems like we will not be moving away from this trend any time soon.

In fact, in an effort to help trim $4 trillion off the deficit the US faces, President Obama had proposed an airline ticket tax which will ultimately affect the smaller airports.  Should this be passed, domestic and international travel will likely come to a halt in the meetings industry, especially when it comes to flying in TDs.  The days of international programs and cross country flights may sadly be even more of a memory, and the local program may remain the harsh reality…indefinitely.

To read the full article click here.  What are your thoughts on this new tax?  Share with us how you feel about this idea and the changes we are all facing.

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