Corporate hospitality is defined as the 'entertainment of clients to promote business, especially at sporting and other public events'.
The benefits of corporate hospitality are wide-ranging, but nowadays it is mainly a marketing tool used by a company in various ways, to impress potential clients, reward staff, cement relationships and expand marketing opportunities.
The UK hospitality industry is worth more than £1 billion a year and now forms a significant part of business strategy.
Until recently it often meant a free ticket to some sporting or entertainment event with a buffet thrown in, but today, corporate hospitality events will usually include anything from sports stadium tours and celebrity 'meet and greets', to exciting experience days, free luxury gifts and Michelin star meals.
Spending on corporate hospitality often depends on the current economic climate as well as socio-economic factors.
The 2012 Olympic Games, for example, saw a phenomenal rise in hospitality spending by many of the top companies while the 2008 financial crash resulted in many firms cutting back on all but the most essential investment.
Recent surveys show that corporate hospitality spending is on the rise again as the business environment becomes more and more competitive globally and as marketing strategies become more aggressive in the fight to gain a greater market share.
The benefits of corporate hospitality spending are numerous, and the returns on investment can be substantial. Here are just a few reasons for thinking about pushing the boat out.
There is little double that free hospitality puts people in a good mood, and this is just the time to make a great first impression on potential clients.
Most hospitality packages usually feature food and drink in pleasant surroundings and they can have a significant impact on doing business.
One of the most significant ways to make an impression is to hire a top celebrity to make an appearance, mingle with guests, give a speech or make a presentation.
Creating a strong first impression with a prospective client can give your company a competitive advantage and result in a high return on investment.
If you can impress potential clients right at the beginning and make them feel valued, they will be more inclined to do business in the future.
In today's competitive business environment building and maintaining strong links with clients can make or break a company.
Clients will get many opportunities from rival businesses and attractive incentives to look elsewhere. Keeping a customer on board not only secures orders it can also provide opportunities for growth and profitability.
If you don't maintain a relationship with a valuable client, you run the risk of losing them to a competitor.
Invitations to corporate hospitality events is a sure way of showing clients that they are highly valued and appreciated for the work they bring.
In a VIP hospitality situation with food and drink available it can be easier to discuss business and talk about potential deals.
Corporate events can open up lots of opportunities for creating potential new business. In the relaxed surroundings, you can not only entertain your clients, but you also have the chance to network with lots of people.
Companies who nurture strong relationships with clients are also more likely to win them over when it comes to discussing business deals.
Word of mouth is a fundamental way of promoting company credentials and clients who have experienced a good time at a hospitality event are more likely to advocate your firm which can, in turn, generate more leads and increased business.
A corporate hospitality event is a perfect opportunity to build new relationships with and establish worthwhile contacts.
Most industries are becoming more competitive, so developing loyal customers can be the key to future success.
If you do maintain a loyal relationship with a client, they may end up working with someone who does.
Creating a situation where key clients want to say thank you for a great evening's entertainment can offer extra leverage when it comes to negotiating deals.
A million-pound contract is a handsome reward for a tennis experience day at Wimbledon or a celebrity after-dinner speaker.
No one is more loyal than someone who feels fully appreciated. Entertaining clients at hospitality events demonstrate your company's willingness to offer something above and beyond your competitors.
It's not always what you know but who you know in the business world. Corporate hospitality created the opportunity to mix and mingle with valuable existing and potential clients.
Black Card Entertainment can create exciting and glamorous event opportunities time and time again. We are experts at creating and developing s large-scale events such as conferences, awards ceremonies, high-level management meetings, formal parties, concerts, or conventions.
With excellent corporate event management – creatively conceived, strategically planned and beautifully executed. Whether your goal is to motivate your people or to showcase your company at its best, we can get the dynamics right and help you reap the benefits of corporate hospitality. Talk to us our Black Card Entertainment membership options