Corporate hospitality bounces back at Wimbledon

Sales of luxury packages at Wimbledon are at their highest level for two years as businesses return to lavishing treats on their clients at the annual tournament.

Corporate hospitality providers have told The Times how they have quickly bounced back from the recession.

Two months ago Sportsworld, an official hospitality provider for the All England Club, had already sold 90 per cent of its packages. They have since sold out completely. The situation compares favourably with 2009, where providers had to discount a wide range of corporate packages due to reluctance by businesses, unable to justify the expense.

Jeff Hunter, group operations director for Sportsworld, said: “Its been a pleasant surprise how quickly the market has returned. It’s a sign of confidence if you’re inviting guests and showing that your shop is still open.

“Corporate hospitality is no different from any other sector currently in that it has clearly been affected by the economic downturn. Over the last year, banks and financial services companies in particular have been cautious in who they invite to what.”

Keith Prowse, the hospitality company that runs the club, has enjoyed strong sales this year and tickets for the men’s final package sold out 20 days faster than in previous years.

Ted Walker, its head of marketing, said: “This year’s bookings clearly demonstrate that entertaining clients, suppliers and employees is back on the agenda.”

The impact has even been noticed at the bar.

A barman from Diageo, which runs a bar inside one of the corporate tents, said: “Last year, we sold 20 per cent more Pimms than usual because companies were trying to find cheaper alternatives to champagne.

“This year it’s a bit too early to say but they don’t seem to be holding back as much — there’s plenty of bubbly around.”

The Royal Bank of Scotland faced an outcry last year when it emerged that it was continuing its £300,000 spend on a corporate hospitality suite, despite being bailed out by the taxpayer. The bank said at the time it was under a contractual commitment.

Corporate packages start from £275 but can be as expensive as £4,500 (per person) for the men’s final. A typical package includes valet parking, champagne and canapés on arrival, an à la carte lunch and show court tickets.

Mr Hunter said that although Wimbledon was quite resilient because it was a world-class event, providers nonetheless suffered difficulties last year. Corporate packages could only be shifted on some days in 2009 by discounting by up to 30 per cent, he said. Sportsworld also reduced the size of its packages.

“As they say, necessity is the mother of invention. When demand dipped last year we looked hard at our sales and marketing tactics, refining and re-pricing our product, developing special offers and selling in more creative ways. This year we’ve basically been able to shift at full yield and last year that certainly wasn’t the case. In 2010 the smaller groups are still with us but the bigger bookings returned too. We were 90 per cent sold out with two months to go.”

Last year corporate hospitality providers reported reduction of sales of up to 40 per cent and venues such as Ascot were forced to cut capacity.

However, Mr Hunter said the outlook was far more positive 12 months later. “Companies who reduced their debenture inventory at a venue or for an entire event are buying back selected days through officially appointed agents, thus ensuring better scrutiny of guests and value for money.

“However less prominent occasions are still finding it hard to attract corporate spend.”

He said the impact of the financial downturn, however, was that hospitality had become less conspicuous: “Previously branded invitations go unbranded; people are attending events but not shouting about it.”

Fiona Hamilton, London Correspondent, The Times.

Appeared in The Times, Tuesday June 22 2010.