First, before I get a lot of angry comments about this post, I want to say that I believe the folks at AIG and other companies acted unconscionably in planning expensive retreats after accepting taxpayer bailout money.
But unfortunately, as with so many things in this economy, the fallout not only has resulted in canceled fun for profligate executives, it has had economic consequences for a lot of working-class Americans.
After the story of a planned $400,000 AIG retreat was published in the San Francisco Chronicle, the Ritz-Carlton Half Moon Bay had 32 corporate groups cancel their meetings, costing the hotel over $2.3 million. This has resulted in some employees being laid off, and the city of Half Moon Bay, population about 17,000, losing much-needed tax revenue. (Hotel taxes account for almost a third of the California coastal town’s $11 million budget.)
This scenario is playing out across the country. The ridiculous amounts of money that some corporations have spent on junkets are indeed disgusting in many ways. But in these cases, there really has been a trickle-down effect.
One financial services executive I know told me that they are doing all their meetings now at hotels that are perceived as moderate, as opposed to Ritz Carltons and Four Seasons. And that even if the luxury brands were to offer a huge discount, they would probably turn it down to avoid the potential media embarrassment.
I have also heard — and this is just apocryphal information, but it has the ring of truth — that jobs at the more moderately priced hotel chains are now more prized. Because they are seeing less group cancellations than the high-end companies.
What’s the solution? I wish I knew. Because letting corporations wine and dine extravagantly on taxpayer funds is clearly wrong. On the other hand, many five star hotels are staffed by the stars of the industry, from housekeepers to front desk staff to restaurant staff. And it’s hard to watch them suffer for someone else’s sins.
Janice Hough is a California-based travel agent a travel blogger and a part-time comedy writer. A frequent flier herself, she’s been doing battle with airlines, hotels, and other travel companies for over three decades. Besides writing for Travelers United, Janice has a humor blog at Leftcoastsportsbabe.com (Warning, the political and sports humor therein does not represent the views of anyone but herself.)
