Disney asks Congress to butt out of business travel

[Phonedave]

It appears that the letter is saying that the current tone and rhetoric from Congress is starting to affect normal business travel.

Also, it is one thing for business to reduce cost by limiting travel, but it is another when purposeful travel is being axed because of fear of reprisals from the government looking to make an example.

The key statement is that large groups not directly affected by the bail out funds are cancelling trips because of reprisals from the government. That is not good.

Instead of looking for the bad or the extreme in the letter, perhaps it should be read for what it is: a concern that the current political climate is having unintented consquences on normal business operations.

Exactly,

We have a pretty tight budget around here right now as far as travel is concerend. There is something to be said for face-to-face meetings, but we now have to restrict them.

We used to be able to have the occassional "team meeting". Not some resort lavish thing, but once or twice a year my team, which is scattered across the country, would meet for a day or two on one location. It would be a company location (no renting conference rooms) and just a normal hotel stay. Most of the time it was in Tampa, because overall that is one of the cheapest places to fly into. We meet, go over plan, go over results, address issues, etc - it's a working meeting, and meeting in person helps to reinforce the team.

Well we cannot do that anymore. But we do still travel for things that HAvE to be face-to-face. I am looking at some new construction tech next month. It's hard to do that over the phone.

Part of the reason for the travel cuts is because of the bottom line, but part of it is also corporate image. So I fully understand where this letter is comming from.

And lots of companies do recognition travel. Maybe people who work in sales can get trips and other prizes for sales levels. I don't see anything wrong with that either.

 

[Wilt Dasney]

For all the talk in the letter about the tone and rhetoric Congress has adopted lately, I think the real point of this note is further down:

The industry has responded by aggregating best practices and developing prudent guidelines for companies to use as a resource; they can be found at www.ustravel.org. We urge you to champion their adoption instead of legislating rules that may unintentionally hinder economic recovery.

All of the bailout anger will subside with time. What this letter is really about, it seems, is whether Congress will allow businesses to police themselves in this regard, or just mandate new guidelines.

I'd think a good indicator of which way this will eventually go would be to see how much $$ the hotel industry has funneled toward various Congress-critters.

 

[harryk]

Dear hotels,

TS, suck it up.

If you dont need to travel for biz (hi, ever heard of fax, video confrencing, or omg this wacky thing called e-mail and/or fedex??).. or if travel is no longer in the budget no matter how you spin it.. then people cannot TRAVEL anyway. Period. End of story.

I've personally encountered several companies that have cut back and cancelled big meetings and such. Its the reality of this economy.

So stop boo-hooing, and looking to lay blame. Suck it up and deal with this recession like the rest of us.

I'm not surprised to see a response such as this. The administration has made a point of picturing business as the big bad wolf who spends and spends.........I know that is not the case. Stop business travel and it doesn't 'trickle down' through the economy .. it moves as a tidal wave. The writer of this 'suck it up' should just watch the Chicago economy as travel begins to wind down. Then the writer will understand where the travel industry is coming from. I for one will continue to travel whenever possible and hope that the flights are still in the air when I need them.
--------- convention centers are not built at WDW just to have a big building --- many companies send their employees there to learn and earn the Disney Ears ........... It's not all fun and games...

 

[toolsnspools]

The business community should just hunker down in their cubicles under the one florescent light the government lets them turn on so they can be more productive, and wait for another government handout.

Business travel serves a HUGE purpose. Why would a corporation send a bunch of employees to Orlando for a training conference instead of packing them in a conference room so they can watch a video-teleconference? Stress relief, creativity, employee appreciation, company loyalty, constructive training, recharging their employees, ... shall I go on? CEO pampering trips aside, corporate travel is very useful to corporate America, and believe it or not, profitable for corporate America as well. Maintaing the investment in your employees has always been a good corporate move.

*** get's down off the soap-box ***

 

[jmvd20]

What we are dealing with here is corporations blaming anyone and everyone but themselves for the problems of the day. The bottom line is corporations and the government are responsible for the shape we are now in. The economic landscape has been altered and as I stated earlier companies and individuals alike will need to adapt.

Whether it benefits local economies or not some of the spending by corporations for private travel and business travel was a waste. In todays age of teleconferencing and the instant worldwide availability of information the days of traveling for everything are coming to a close. The sooner this is realized the sooner we will adapt to the new situation. Some companies will fail, some cities will lose a lot in terms of lost business travel. And yes, airlines may fall - then again how many airlines have made profits without government help in the last few decades anyway?

This is the reality that must be faced, so the sooner businesses, corporations, and individuals realize this and stop finger pointing, the sooner the recovery will be.

I completely agree with the suck it and find a way to deal with it comment - after all that is what the average american is forced to do right now. People are being laid off, cant afford to pay bills and are losing their homes all the while hearing on the news that a few trillion dollars is going to corporations. Whether or not Disney/Hilton etc... will receive any federal funds is beside the point - the bottom line is they are whining and blaming others when they need to sit down and figure out a way to get through these times - just like you and I are forced to.

 

[EpcotServo]

I agree Jakeman. I guess we are turning into a communist country now.

:sohappy:

 

[devoy1701]

I completely agree with the suck it and find a way to deal with it comment - after all that is what the average american is forced to do right now. People are being laid off, cant afford to pay bills and are losing their homes all the while hearing on the news that a few trillion dollars is going to corporations. Whether or not Disney/Hilton etc... will receive any federal funds is beside the point - the bottom line is they are whining and blaming others when they need to sit down and figure out a way to get through these times - just like you and I are forced to.

Business Travel will never come to a close, especially for companies like mine that has offices in Toronto, Islandia, Manhanttan, Tampa, Dallas, London, Sydney, India, etc... Video Conferencing may be helpful for quick impromtu meetings, but there are times when face-to-face meetings are necessary and warrented. Reward travel should never go to the wayside either because often times those types of incentives are more appreciated than monetary incentives...ESPECIALLY in an economy like this where some individuals might not consider taking a trip otherwise if their budget is tight.

People are loosing their homes because they "bought" homes or cars with money that wasn't theirs thinking that they could afford it since the terms of the loan said no money down...or they purchased "first 5 year interest-only loans" or something of the sort and didn't pay a dime on the principle for those years and now all the sudden they have HUGE monthly payments.

People are loosing homes that were never theirs to begin with and shouldn't have been living in...it is THOSE people and the businesses that gave those people loans or credit lines that have caused this situation.

I love the mentality of those who say "you can't take my home/stuff away from me" when it's not their stuff!

There are plenty of people who were money smart who are doing just fine. For the record, I haven't had to change ANY of my spending/living/travel habits in this new economic climate because I haven't gotten myself into any financial trouble. I haven't ever chosen to try to live beyond my means before the economy started to tank so I can continue to live life as I have. As I'm sure quite a few people are.

 

[Hummer1676]

What we are dealing with here is corporations blaming anyone and everyone but themselves for the problems of the day. The bottom line is corporations and the government are responsible for the shape we are now in. The economic landscape has been altered and as I stated earlier companies and individuals alike will need to adapt.

Whether it benefits local economies or not some of the spending by corporations for private travel and business travel was a waste. In todays age of teleconferencing and the instant worldwide availability of information the days of traveling for everything are coming to a close. The sooner this is realized the sooner we will adapt to the new situation. Some companies will fail, some cities will lose a lot in terms of lost business travel. And yes, airlines may fall - then again how many airlines have made profits without government help in the last few decades anyway?

This is the reality that must be faced, so the sooner businesses, corporations, and individuals realize this and stop finger pointing, the sooner the recovery will be.

I completely agree with the suck it and find a way to deal with it comment - after all that is what the average american is forced to do right now. People are being laid off, cant afford to pay bills and are losing their homes all the while hearing on the news that a few trillion dollars is going to corporations. Whether or not Disney/Hilton etc... will receive any federal funds is beside the point - the bottom line is they are whining and blaming others when they need to sit down and figure out a way to get through these times - just like you and I are forced to.

You are missing the point. Even if the traveling, in your eyes, was a waste; it created jobs. Necessary jobs, where people would support the local economy. Look at the big picture, not the small one infront of your face. They are dealing with it. That is why you are hearing about layoffs. But when government leaders are portraying negative ideas about travel and meetings, it hurts all businesses.

Who doesn't want to travel or take a vacation, it puts our fears and nightmares away for a bit. We could all use a little more vacations and travel, especially now.

 

[fosse76]

you completely missed the point...Gov't has no business regulating or "reprimanding" or having an opinion about business travel. Or leisure travel for that matter either...a couple weeks ago Obama made a comment saying "now is not the time to be taking that trip to Vegas..."

Actually, the U.S. Constitution, in Article 1, grants Congress the authority to regulate business. So it has every right to reprimand and regulate business travel. And you are very obviously taking President Obama's quote out of context. It was a response to Wells Fargo's conference at a swanky Las Vegas Hotel after receiving $25 billion is taxpayer-funded relief. If they needed a bailout, then what are they doing going to Vegas. I'm sure there were just as nice, less expensive alternatives. It had nothing to do with personal travel.

Should I also feel guilty for taking a trip so SoCal at the end of this year to spend a week frivoluosly spending money at Disneyland? nope...it's my money, my business.

And no one said anything to the contrary. However, let's say you were borrowing money from friends and family because you were behind on bills, and then all of a sudden you booked a trip to DisneyWorld. Would the people whose money you borrowed not have the right to question the way you are spending the money they leant you, especially if your actions were one of the reasons you needed to borrow money in the first place.

Sometimes in-person business meetings are much more effective than video conferencing...and they are ALWAYS more effective than Email.

That's true...but you don't need to have those meetings at a $1000/night hotel at taxpayer expense.

 

[hack2112]

A big reason the more classy hotel chains are complaining is that there are a lot of confrences that are seeing declines in attendants and booths.

These trade shows believe it or not help buisnesses gain new contacts and foster.

Also, please don't hate on all of AIG, there are a lot of divisions of the company that are making money.

 

[jakeman]

Actually, the U.S. Constitution, in Article 1, grants Congress the authority to regulate business. So it has every right to reprimand and regulate business travel. And you are very obviously taking President Obama's quote out of context. It was a response to Wells Fargo's conference at a swanky Las Vegas Hotel after receiving $25 billion is taxpayer-funded relief. If they needed a bailout, then what are they doing going to Vegas. I'm sure there were just as nice, less expensive alternatives. It had nothing to do with personal travel.



And no one said anything to the contrary. However, let's say you were borrowing money from friends and family because you were behind on bills, and then all of a sudden you booked a trip to DisneyWorld. Would the people whose money you borrowed not have the right to question the way you are spending the money they leant you, especially if your actions were one of the reasons you needed to borrow money in the first place.



That's true...but you don't need to have those meetings at a $1000/night hotel at taxpayer expense.

I don't think anyone is arguing these points. "Within reason" is the term.

I have no qualms with a company that is using bailout money having every move watched to make sure they are on the road to recovery.

What I have a problem with, as do the authors of this letter, is when companies that have not taken part of the bailout are curtailling what can be considered normal business travel because of fear of the government.

That is the issue that is addressed in the letter. It is also the issue that is being completely ignored to rail about the bailout and herald the end of business travel.

How does this affect Disney? Probably not as much as it affects the other corporations listed on the letter.

 

[devoy1701]

Actually, the U.S. Constitution, in Article 1, grants Congress the authority to regulate business. So it has every right to reprimand and regulate business travel. And you are very obviously taking President Obama's quote out of context. It was a response to Wells Fargo's conference at a swanky Las Vegas Hotel after receiving $25 billion is taxpayer-funded relief. If they needed a bailout, then what are they doing going to Vegas. I'm sure there were just as nice, less expensive alternatives. It had nothing to do with personal travel.

I might have taken the quote a bit out of context but I can't always hide my biases. I still don't believe the government should have any say in the operations of a business...There are reasons why there are boards of Directors and shareholders at companies...they just need to start stepping up to the plate and do what they're supposed to do. CEOs shouldn't get any bonus compensation if their company's profits are in the Red for a FY. if the trend continues the board or Shareholders should get rid of the CEO. Obviously though the shareholders and boardmembers are too busy protecting their own interests.

And no one said anything to the contrary. However, let's say you were borrowing money from friends and family because you were behind on bills, and then all of a sudden you booked a trip to DisneyWorld. Would the people whose money you borrowed not have the right to question the way you are spending the money they leant you, especially if your actions were one of the reasons you needed to borrow money in the first place.

Personal travel goes right along with the tone of the letter though. Even for companies who have not taken any Tax-Payer Money, there are still general reprimands to companies who are not ceasing or limiting corporate travel or executive compensations even if there is no reason for them to do so. At the same time I get looked down on if I mention to someone about my upcoming California trip while they're drowning in Credit Card Debt or about to lose their home. I do not believe their should be any general regulations on Salary Caps for Executives it should be based solely on the companies performance. [/quote]

That's true...but you don't need to have those meetings at a $1000/night hotel at taxpayer expense.

Most businesses (unless it's for a retreat) do not fully reimburse employees for those $1000/night hotels. They have partnerships with certain chains that an employee can stay fully covered...or if the employee chooses to, they can upgrade their accomodations and pay the difference out of pocket. I'm not saying all companies do this, but many do and I have no problem with that practice.


I like people who debate logically, btw. Thank you for your well thought out responses.

 

[Missing20K]

Politics and religion.

 

[Phonedave]

It was a response to Wells Fargo's conference at a swanky Las Vegas Hotel after receiving $25 billion is taxpayer-funded relief. If they needed a bailout, then what are they doing going to Vegas. .

Would you believe that if you are flying people in from various areas around the country, chances are that Vegas is the CHEAPEST place to fly people into

Tampa is a close second.

When I have team meeting I usualy have them in Tampa. Vegas may be cheaper (although we don't own any buildings in Vegas and we do in Tampa) but it's just this "living it up on company funds" that keeps corporations from using Vegas as the cheapest place to have a conference.

-dave

 

[Phonedave]

Business Travel will never come to a close, especially for companies like mine that has offices in Toronto, Islandia, Manhanttan, Tampa, Dallas, London, Sydney, India, etc... Video Conferencing may be helpful for quick impromtu meetings, but there are times when face-to-face meetings are necessary and warrented. Reward travel should never go to the wayside either because often times those types of incentives are more appreciated than monetary incentives...ESPECIALLY in an economy like this where some individuals might not consider taking a trip otherwise if their budget is tight.

People are loosing their homes because they "bought" homes or cars with money that wasn't theirs thinking that they could afford it since the terms of the loan said no money down...or they purchased "first 5 year interest-only loans" or something of the sort and didn't pay a dime on the principle for those years and now all the sudden they have HUGE monthly payments.

People are loosing homes that were never theirs to begin with and shouldn't have been living in...it is THOSE people and the businesses that gave those people loans or credit lines that have caused this situation.

I love the mentality of those who say "you can't take my home/stuff away from me" when it's not their stuff!

There are plenty of people who were money smart who are doing just fine. For the record, I haven't had to change ANY of my spending/living/travel habits in this new economic climate because I haven't gotten myself into any financial trouble. I haven't ever chosen to try to live beyond my means before the economy started to tank so I can continue to live life as I have. As I'm sure quite a few people are.

Exactly, everyone wants to place blame somewhere else, when in fact everyone is to blame.

If you are a family making a total of $50,000 a year, you should KNOW that you cannot afford a $600,000 house. But people see that big house and start to drool. The lenders and brokers KNOW you can't afford it either, but they see the commissions and start to drool.

Now all these people are in a mess, that they all got themselves into.

I worry about my job, but I have avoid layoffs so for. However, even if I were to loose my job, I have enough funds, with some minor cutbacks, to survive the next 24 to 36 months. Sure I want a big house, in fact I want a house period. I go out and look, but it is not financialy prudent for me right now, so I DONT DO IT. Imagine that. Maybe thats why I am not having to "suck it up". While all those people were in their big houses I was in my 2BR condo. Oh how I would have liked to have a big house, could have easily done it with some "creative" mortages as well, but I did not. Now they are facing foreclosure, and I am still in my 2BR condo.

I am sorry if it comes off as smug, but I really cannot tolerate it when people make decisions that they know are bad, because of greed, and then they want a hand out when things go all pear shaped.


-dave

 

[devoy1701]

Politics and religion.

I think this thread has progressed very nicely without any banter or name calling. It's not politics directly but it is a touchy subject, but even so, there haven't been any comments made in this thread yet to suggest that it shouldn't be around...which I'm guessing is what your comment was referring to...the rule about politics and religion on this site...

Exactly, everyone wants to place blame somewhere else, when in fact everyone is to blame.

If you are a family making a total of $50,000 a year, you should KNOW that you cannot afford a $600,000 house. But people see that big house and start to drool. The lenders and brokers KNOW you can't afford it either, but they see the commissions and start to drool.

Now all these people are in a mess, that they all got themselves into.

I worry about my job, but I have avoid layoffs so for. However, even if I were to loose my job, I have enough funds, with some minor cutbacks, to survive the next 24 to 36 months. Sure I want a big house, in fact I want a house period. I go out and look, but it is not financialy prudent for me right now, so I DONT DO IT. Imagine that. Maybe thats why I am not having to "suck it up". While all those people were in their big houses I was in my 2BR condo. Oh how I would have liked to have a big house, could have easily done it with some "creative" mortages as well, but I did not. Now they are facing foreclosure, and I am still in my 2BR condo.

I am sorry if it comes off as smug, but I really cannot tolerate it when people make decisions that they know are bad, because of greed, and then they want a hand out when things go all pear shaped.


-dave

Nothing wrong with a 2 br condo! I'm right there with you in that catagory! :king: Though I do prefer to call mine a townhome...makes it feel alittle more...home-like...

Very well said post btw Dave! :wave:

 

[jmvd20]

Business Travel will never come to a close, especially for companies like mine that has offices in Toronto, Islandia, Manhanttan, Tampa, Dallas, London, Sydney, India, etc... Video Conferencing may be helpful for quick impromtu meetings, but there are times when face-to-face meetings are necessary and warrented. Reward travel should never go to the wayside either because often times those types of incentives are more appreciated than monetary incentives...ESPECIALLY in an economy like this where some individuals might not consider taking a trip otherwise if their budget is tight.

Of course buisness travel will not go away entirely, however even after a recovery things will not be back to the way they were. A major reason for this is the fact that companies are now being forced to scale back and curtail wasteful spending since margins are way down. A blanket statement in a letter saying that the comments from the government is killing business travel is an overstatement and over-dramatization to say the least.

People are loosing their homes because they "bought" homes or cars with money that wasn't theirs thinking that they could afford it since the terms of the loan said no money down...or they purchased "first 5 year interest-only loans" or something of the sort and didn't pay a dime on the principle for those years and now all the sudden they have HUGE monthly payments.

People are loosing homes that were never theirs to begin with and shouldn't have been living in...it is THOSE people and the businesses that gave those people loans or credit lines that have caused this situation.

And the irony of all this is that the individual is the one suffereing while the banks and financial institutions and their CEO's get billions of dollars to bail them out.

I love the mentality of those who say "you can't take my home/stuff away from me" when it's not their stuff!

As it stands no it isn't the banks "stuff" either - it is your stuff and my stuff along with everyone else who pays taxes.

There are plenty of people who were money smart who are doing just fine. For the record, I haven't had to change ANY of my spending/living/travel habits in this new economic climate because I haven't gotten myself into any financial trouble. I haven't ever chosen to try to live beyond my means before the economy started to tank so I can continue to live life as I have. As I'm sure quite a few people are.

I'm doing OK myself as are the majority of people, however I am not going to be naive and think that this situation can't touch me.

 

[jmvd20]

Exactly, everyone wants to place blame somewhere else, when in fact everyone is to blame.

Exactly, well said!

I am sorry if it comes off as smug, but I really cannot tolerate it when people make decisions that they know are bad, because of greed, and then they want a hand out when things go all pear shaped.

It is not just the greed and bad decisions on the part of the individual, but on the buisnesses and banks as well. The part of this that ticks me off is that the banks and their CEO's get bailed out and get richer, while the individual gets it you know where. They both made the mistake they both need to suffer the consequences of their mistakes.

 

[jmvd20]

You are missing the point. Even if the traveling, in your eyes, was a waste; it created jobs. Necessary jobs, where people would support the local economy. Look at the big picture, not the small one infront of your face. They are dealing with it. That is why you are hearing about layoffs. But when government leaders are portraying negative ideas about travel and meetings, it hurts all businesses.

Who doesn't want to travel or take a vacation, it puts our fears and nightmares away for a bit. We could all use a little more vacations and travel, especially now.

All jobs are necessary in my mind, I would love 100% employment and we all should feel the same, however it is now blatantly obvious that the way things operated just a year ago were not sustainable - that is the big picture. The big picture is that things didn't work the way they were before which is why we are in the correcting phase of it right now. Money that was thought to exist simply wasn't there.

Government leaders are portraying excessive spending on travel and ridiculous retreats for CEO's in a negative light - that may be on one end of the spectrum but a letter from Disney stating that business travel is being hurt by the government is on the opposite end of that spectrum. The truth resides somewhere in the middle - as it most often does.

 

[devoy1701]

Exactly, well said!



It is not just the greed and bad decisions on the part of the individual, but on the buisnesses and banks as well. The part of this that ticks me off is that the banks and their CEO's get bailed out and get richer, while the individual gets it you know where. They both made the mistake they both need to suffer the consequences of their mistakes.

Your points are well taken. And I don't mean to come off as nieve and seem like I think I'm above this entire situation. Much like as Dave said, if I were to loose my job then yes, things would have to get alittle tighter budget wise, but I would be able to make due for quite awhile before I had to worry. I'm by no means rich (still finishing college here), but I've been smart about my money, and have always put a significant amount into savings over the years.

What I am saying is that if you were money smart when the times were good, then you as an individual will not suffer much during this economic time...even if you were to lose your job. It's because I didn't go spending every dime I made (and them some) that I'm still able to live the same way I have been. I haven't made any mistakes therefore I don't have any consequences to suffer.

I don't think that the companies that have needed Tax-Funds should have been bailed out, nor should those who bought those $600,000 homes they couldn't afford..they are all equally at fault and should suffer these hardships together. Hardships that will make the individual and/or company stronger and more responsible if they make it through this.

Now when it comes to pay back this 1+ Trillion Dollars...that's suffering is most likely going to fall on my kids...which I am NOT happy about at all...