Many firms maintain spending on parties, gifts this Yuletide despite Grinch-like times.

Many firms maintain spending on parties, gifts this Yuletide despite Grinch-like times

Some Southland corporations are skimping on Yuletide parties and gift giving, but even though economic indicators are falling, many other companies are paying as much as ever for their employees and clients to eat, drink and be merry this holiday season.

"It's not a horrendously depressed condition," said Bill Lucas, managing director of the downtown Los Angeles-based Westin Bonaventure Hotel. "There's been a general easing back."

Marci Salcedo, catering manager at the Biltmore, also in downtown Los Angeles, said she noticed that about 20 percent of the companies which booked Christmas parties at the hotel last year did not return for partying this year, and that most of those companies are real-estate related. But law firms and hospitals are celebrating in full force, she said.

Other party-related services reported that holiday celebrating at real-estate related companies is faltering this year.

Title insurance companies are "very tight" and are spending less on holiday gifts, according to Bill Decker, senior account manager at Jurgensen's in Pasadena.

"Our corporate clients having anything to do with real estate have cut back quite a bit," added Susan Bleecher, vice president of Just Off Melrose Inc., a Los Angeles-based party planning service.

The real estate, defense and hospitality industries are all feeling the pinch, Lucas said. Some are belt-tightening on various Yule-related spending, including parties.

For instance, Christmas bonuses at Beverly Hills-based Jon Douglas Co. were smaller this year, according to Senior Vice President Kent Christensen, adding that the residential real estate company spent less on its holiday partying as well.

Last year the company staged its party at The Beach Club in Santa Monica, but this year it held a series of smaller parties at the branch level, a less expensive proposition, Christensen said.

Overall, the corporate Christmas party business at the Bonaventure is off by about 10 percent, Lucas said, a figure duplicated by an anonymous source at another party-giving location.

But not everyone in the gala-staging business is experiencing a downturn.

"The Christmas parties in general have been about the same," said David Iwata, director of marketing for the Marriott Hotel in Woodland Hills.

"It's been an average December," said Debra Stevenson, president of Los Angeles Party Designs. "The bread and butter's there."

"There has been no change in emphasis from last year," added Bob Knapp, a spokesman for Litton Industries Inc.

However, Stevenson said companies are concerned about their images and are being careful not to be ostentatious during a time of economic concern. "It seems like a bad time to be flashy," she said.

Stevenson added that during the year Los Angeles Party Designs usually books about four "one-shot," all-out extravaganzas, but right now the company isn't getting requests for those types of parties.

According to Marcia Werstein, spokeswoman for Northridge-based Special Events, Southland corporations are taking one of two approaches to celebrating Christmas during tough economic times. Many are holding Christmas parties to retain employee morale -- "They don't want people to panic," Werstein said -- while others see party giving as an extraneous expense.

Iwata agreed. A lot of companies are still holding their parties because they recognize the importance of employee relations, he said.

"Why not spend a couple of extra grand to show your appreciation," said Joseph DiLillo of Drake Securities in Santa Monica, which recently held a black-tie affair at the Beverly Wilshire Hotel.

However, corporations are serving less liquor at their parties, partly as a way to save money and partly in reaction to stiff liability laws for drinking and driving, sources said.

Some companies are serving only beer and wine at their parties instead of having a full bar, Lucas said.

What about business gift giving this Yule? Some companies feel that now more than ever they should give nice gifts to clients for fear of otherwise losing them, Decker said.

Geary's Beverly Hills has been selling as many executive-to-executive gifts as last year, according to President Bruce Meyer. Corporate gifts at Geary's average $100 each, he said.

Decker also hasn't seen any noticeable cutback in corporate gift sales at Jurgensen's. The upscale market sells wine and cheese baskets.

Banks, law firms and members of the service industry are buying the most gifts from Jurgensen's this year because they face stiff competition and need customer loyalty, Decker said.

The prospects for corporate party giving in 1991 are even more mixed than this year.

"Next year could be another story," Werstein said.

Many companies plan to cut back on parties, she said. For instance, some usually plan both a mid-year picnic and a holiday party, but are committing to doing only one or the other in 1991.

To adapt to the changing economic climate, Special Events is offering 1991 picnics at 1990 prices, Werstein said.

But Los Angeles Party Designs' Stevenson is more upbeat: "I think next year's going to be better than this year."