Combining a conference with a cruise seems like the stuff of dreams, says John Law, but it can be a cost-effective alternative to a land-based event
Given half a chance, aggrieved shareholders and credit crunch victims might happily torpedo a sleek Caribbean yacht cosseting a complement of bankers or hedge-fund managers. Yet often, meetings afloat can prove an inspirational - and surprisingly cost-effective - alternative to land-based events.
Whether you're booking a modest seminar on a ferry, a big sales incentive on a cruise ship, or a board meeting on a luxury yacht, there are some tempting deals around just now.
The meetings, incentives, conferences, and exhibitions (MICE) market generally is taking a battering, so event organisers are seeking value more than ever. One of the world's biggest cruise operators, Royal Caribbean Cruise Lines (RCCL), says the sector accounted for nearly seven per cent of its total UK business in 2008. But it expects a tougher year ahead.
"While overall cruise bookings from the UK were 23 per cent up last year, the C&I [conference and incentive] sector is facing harder times," concedes Michael English, head of field sales of the group's Celebrity Cruises brand.
The most popular cruises for MICE organisers are traditionally RCCL's shorter four to five-day itineraries, typically around the Mediterranean. Those with a bigger budget and the time might hold an event on a one-week Celebrity Cruise in Alaska.
"Hopefully more event organisers will recognise the value that cruises offer compared to land-based arrangements," says English. "Groups are typically paying inclusive rates from as little as £100 a day per delegate for an inside cabin to £150 for a cabin with balcony."
And those rates include 'extras' you'd be charged a fortune for at a decent hotel - and, of course, the opportunity to explore a new destination each day. RCCL's massive modern ships, such as the 3,600-passenger Navigator of the Seas, mean they can stage major product launches in 1,300-seat theatres as well as offering a range of rooms for smaller meetings. Typical activities for time off include a choice of swimming pools, an ice rink and surfing simulator, and in the evenings, glitzy cabaret and a casino.
The cruise company's top-selling itineraries for corporate buyers include a four-night sailing between Barcelona, Marseille and Ibiza, and five nights visiting Nice, Sardinia, and Sicily, with a full day at sea ideal for talking business.
MSC Cruises has introduced a premium deck which C&I groups can book on an exclusive-use basis on each of its two latest vessels. The 1,900-passenger sister ships Fantasia and Splendida feature the new Yacht Club concept, comprising 99 top-deck suites with butler service, all meals and drinks, direct access to the spa, and its own pool and panoramic lounge.
Peter Pate, chairman of MSC's UK and Ireland operation, believes this exclusivity could give the company a competitive edge at a difficult time for the meetings market. "Delegates will enjoy the advantages of a big ship while having their own 'self-contained' facilities away from the other passengers," he says.
Typical cost of a Yacht Club suite is from £250 - £300 a night, compared to £120-£150 for a typical outside cabin. "This is still great value compared to holding an event at a four or five-star hotel," says Pate. And provided you're happy with the scheduled itinerary, many of the other arrangements for business groups can be tailor-made. "We can offer a separate dining room or a section of the main restaurant which can be customised for each organisation. Take over the whole ship, of course, and we can fly the company flag and put up banners to add to the sense of occasion."
Silversea Cruises operates at the very top end of the market - President Putin once chartered one of its ships as a temporary residence for select dignitaries during the G8 meeting in St Petersburg - but it has noticed a slowdown in demand. Trudy Redfern, the company's UK and Ireland managing director, admits: "A lot of people are thinking twice and putting their plans on hold."
Several major incentive groups and full charters are going ahead this year, however. "Companies prefer the security aspect and not having to worry about the logistical problems of a land-based event, such as finding different restaurants each evening. Budgeting is easier, too, as all our prices are fully inclusive," says Redfern.
Major clients have included BMW and Coca-Cola, and Silversea ships are often chartered for major sporting events around the world. Its prices vary according to destination, with current daily C&I rates starting at $400 per person per day from November to March in the Caribbean, and in the summer $550 for the Mediterranean and $700 for the Baltic.
But if big-ship cruising doesn't appeal, how about despatching your executives to the land of the midnight sun? The Norwegian coastal voyage company Hurtigruten, which has just started marketing its on-board meeting facilities in the UK, claims its itineraries offer C&I planners a good deal more flexibility than conventional cruises.
Its fleet of coastal steamers hug Norway's scenic coastline to deliver freight, post and passengers to 30 ports, stretching from Bergen to beyond the Arctic Circle at Kirkenes.
"The fjord scenery is spectacular and because the ships make frequent stops it is easy to arrange a trip of any duration and take in some exciting excursions along the way," says a Hurtigruten spokesman.
Cabins are comfortable and the newer vessels have meeting rooms accommodating up to 60 people. C&I organisers will typically pay a daily rate of around £150 a head, including accommodation, meals, room hire and transfers. A half-day or longer is spent in key ports, allowing delegates to let off steam with a session of jet-skiing , husky dog-sledding or a killer whale safari.
The same applies if you can afford to charter your own private yacht, which cannot fail to impress if you're out to cut a dash or there's a high-powered meeting planned. And the good news is that a taste of the seriously glam life afloat will cost a lot less this summer than it did last.
A good-sized, super-sleek vessel - perhaps owned by an oil tycoon or movie star - is now a relative snip at €45,000-€50,000 for 24-hour hire. Mark Russell, marketing director for the corporate yacht charter specialist Attention to Detail, explains: "In 2008 one of these would have cost €65,000 a day, but in the current climate rates are negotiable."
With that kind of money you might charter the famous Christina O. Once owned by Aristotle Onassis, it has been a paparazzi favourite for decades, hosting passengers like Winston Churchill, Liz Taylor, Frank Sinatra and Marilyn Monroe.
Typically for €50,000 you can expect a 15-18 cabin yacht, sumptuously furnished and accommodating up to 150 people for a reception and with rooms for meetings and break-out spaces. You can remain moored in port or set sail, and enjoy first-rate catering - sometimes by a Michelin-starred chef.
Attention to Detail can book a range of yachts from a three-cabin, 80ft boat costing around €3,000 a day, to a 55-cabin, 300ft vessel for €120,000 - before hard negotiation. But who are the customers?
"Many clients come from the property, finance, and TV and film industries," says Mark Russell. "Yachts are an inspirational venue for meetings, exhibitions and entertaining. They are often used where security and privacy are sought, such as when key stakeholders meet to sign a large contract."
The highest demand is for short charters in the South of France, where there is a thriving convention, exhibition and major festivals market virtually year-round. Over the past year, however, there have been more requests for yachts around the British Isles as some companies try to avoid the added expense of overseas travel.
One corporate buyer keen to resume yacht charters when the economic climate improves is Steve Carrick, commercial marketing director of Savills estate agents.
"For the past four years we have chartered a yacht in Cannes through Attention To Detail as a base for the annual MIPIM property convention. The boats are a great place for entertaining developers, investors and fund managers, and for private meetings with clients. Sadly, because of the market conditions we won't be using a yacht this year but we hope to be back when things improve."
For many organisations a luxury cruise - let alone a private yacht charter - will remain the stuff of dreams. But if they are determined to up anchor, staging a meeting aboard a North Sea ferry could offer a remarkable bargain.
Admittedly the surroundings aren't quite as plush, but P&O Ferries has a two-day/two-night package from Hull which includes free parking, a private meeting room on board, cabins, two dinners and breakfasts per person, and coach transfers for a day in Amsterdam or Bruges.
The price last autumn was just £124 a head. Compared to the alternatives, that's a mere drop in the ocean.