Perhaps GM Should Have Considered Detroit for its 2010 Fleet and Commercial Product Preview Customer Event
Although I haven’t had an opportunity to visit the Sheraton Wild Horse Pass Resort and Spa in Chandler, AZ (outside Phoenix), it certainly seems to have all the trappings that's expected from an incentive travel destination hotel. So should it surprise many that GM would choose to hold its 2010 Fleet and Commercial Product Preview there: guest rooms inspired by the culture and beauty of the Pima and Maricopa Indians, a AAA Five Diamond restaurant, 100,000 square feet of function space, a 17,000 square foot spa, two golf courses, and enough room to build a special track that meanders through the resort for test drives?
It appears that some in the media have yet again criticized a corporate giant for hosting an annual business travel event, and this time GM is the target. But should the GM annual product launch be viewed in the same context as the AIG incentive event at the St. Regis Resort in Dana Point, CA, or other programs hosted by companies that receive government bailout money?
The GM event held last week hosted 500 attendees in two different waves (three days, two nights), and nobody has yet shared the total price tag. Reports, however, do indicate that GM is defending its hotel decision because it cost under $250 per night (despite the nice resort, I am not convinced they contracted a good deal because a quick check of rates show lower guest room rates today). Unfortunately, guest room expenses only account for about 25% for a typical incentive event's budget; GM's program will have higher than usual expenses because they needed to ship 150 vehicles to the hotel by truck for the event and create the track.
One reason the GM event may need to be viewed differently than AIG – and, frankly, not nearly as defensible – is because GM’s event was also attended by fleet buyers for government agencies. This, according to USA Today. In addition, the event is considered a product launch, which is not the same as an incentive trip (incentive trips are viewed as rewarded compensation and should be taxed).
To be sure, it makes sense for GM to host an event that showcases its fleet strength for customers. But knowing the expense associated with air travel and the cost for creating a custom track and more, I wonder if planners considered a cost analysis of the Phoenix location vs. a lower cost event hosted in GM's corporate facilities in Detroit, using local hotels in the Detroit area, and supporting the Michigan economy at the same time?
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