Corporate Hospitality refers to organized events and activities that have the sole agenda of benefiting a company. Corporate hospitality is a way of endearing clients, or attracting prospective clients, showing appreciation to employees or rewarding them for a job well done. These events can be considered a sort of corporate gift which helps in keeping the motivation up for the employees and attracting prospective clients who might invest or start a business with the company. They are also used to cement existing relationships and are a major tool in ensuring that a company continues to profit. They can prove to be a sales incentive as well, since prospective customers are wooed through these very means.
The problems associated with corporate hospitality
However, corporate hospitality has be become a troublesome enterprise owing to a number of reasons. The society around us is changing every day and so are the needs and desires of its people. People in today’s world lead a hectic and busy life. Making time for events like a Wimbledon match or front row tickets to the NBA Final might not be their version of a good time. According to research many events like the Wimbledon have seen people hand out their tickets to other people and the guest list is completely different from what it was originally meant to be. This is because of the sole reason that many people do not like attending something like a sports event these days, when the real reason for the visit is simply to drink champagne and chat with the representative of a company that they might invest in.
The usage of grand events with corporate hospitality in mind is still an attraction for a company’s marketing team but a lot of things need to be considered beforehand. The Bribery Act, tight budgets or simply a different strategy that that which has been in use are the main concerns of marketers at this moment. It is also important to remember that corporate packages for events usually cost a lot, and it is vital to consider whether that investment is rational and beneficial for a company. If it was your company you would have to consider whether spending that much amount of money on a person really worth it. The role of the prospective business arrangement, magnitude of the client and amount of the possible investment all come into play here.
Three main problems of corporate hospitality
The top three problems associated with corporate hospitality have been listed here. They are as follows:
- Attendance- Ensuring attendance is the real crucial part of having to invest such a large amount of money on a person. If a company ends up spending a large wad of money for a person who doesn’t even show or sends somebody else in their place, the entire arrangement proves to be counterproductive.
- The Bribery Act- The Bribery Act is a legal check and balance to ensure that no party tries to levy and undue advantage or influence on a company or business situation by bribing another person with pleasantries. Although this act does not put a halt to all kinds of corporate hospitality events or functions, it does scrutinize some in order to ensure that no foul play has been done.
- Brand fit- Although, it is attractive to see a company being able to gain access to certain events through their influences, connections or financial prowess, it is important to keep in mind the brand that the company stands for. For example Michelin sticks to motorsport and not Wimbledon while organizing their corporate hospitality events, simply because they have no relevance in the later.
Being a company it has become hard to orchestrate events which would both be useful for a person and where they would also have fun. That being said corporate hospitality remains a major tool for the marketers of a company. Hence, it is important to form a proper strategy to approach such events, keeping in mind all the challenges associated with it.
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