Posted in Marketing and Strategy Terms, Total Reads: 756
Definition: Corporate Hospitality
Corporate Hospitality is defined as any entertainment event organized by a company for its staff or clients or stakeholders, in such a way that complete expenses are borne by the company itself. It is aimed at strengthening relationships with clients, motivating the staff and gaining confidence of stakeholders. Events maybe Horse races, Tour packages, Concerts, Rugby matches etc.
Companies which provide corporate hospitality are also sometimes called as Corporate Event Planners.Corporate hospitality has good appeal and is generally aimed at certain individuals rather than a company.
Different type of events are organized by a company as part of Corporate Hospitability like
Commencement Events - Events to bring in excitement and give the theme of meeting
Multi cuisine Lunch/Dinner - Lunch/Dinner aimed at having long conversations
Award ceremony - Encouraging invitees and looking forward for next meetings
Providing Corporate Hospitality may be costly expense for the company but retaining the clients, stockholders and staff by such things will prove beneficiary in long term and hence company goes ahead with such exclusive events.
Assume a company, PVR Ltd., has opportunity to get a contract of US $100 billion from one of its client. If PVR Ltd. spends US $1 million for providing corporate hospitality to that client, then it’s not a bad deal as this will ensure the signing of contract which will let PVR Ltd. gain more than what it had incurred as expenses.
Thus we can see the role played by corporate hospitality with this example. It is more or less a sort of bribe only.