For more than three decades, Nick Cutter has held a holiday party for his employees, hosting up to 1,200 people with an open bar, door prizes and live entertainment at large venues such as the Coral Ballroom at Waikiki's Hilton Hawaiian Village.

This year, Cutter has canceled the bash in favor of smaller celebrations at his seven car dealerships on Oahu as consumers reign in spending in a slumping economy, sending Hawaii new car sales plunging 20.3 percent this year through September.

“;The holidays are still here, it's just hard to have a party under the current economic conditions,”; Cutter said. “;I think everybody's OK with it. They understand we have three priorities right now: To preserve our employees' jobs, to support our community and to take care of our customers.”;

  One in five businesses nationwide will skip a holiday celebration this year, according to an annual survey of 108 companies by New York-based executive search firm Battalia Winston Amrop. It is the lowest percentage in the 20-year history of the survey, which hit lows following 9/11 and during the recession in 1991.

  More than a third of companies said their party has been impacted by the economy, nearly double the number affected last year.

“;People are looking at different venues, smaller venues, less expensive venues,”; said Mike McClain, a Los Angeles partner at Battalia Winston.

Honolulu-based event planner Morgan Childs said while most isle businesses are still holding a holiday party, they are implementing cost-saving techniques. Childs plans about a dozen events a year as owner of event planning and consulting firm Moana Events.

“;They are really concerned about the number of people, the venue that they are using, who is catering the event, alcohol at the event, the things that cost a lot of money, those are things that I am finding people are much more concerned about than last year,”; Childs said.

“;Last year, everybody was willing to go out and have a great party for the holidays, and this year they are much more conservative.”;

Childs estimated that most isle companies spend less than $5,000 on an average holiday party for 50 to 100 people, and tend to cut alcohol or appetizers as a way to save money.

“;Cutting out the party altogether, I think, sends an unnecessary message to your employees that 'We don't know what is going to happen next year and your job might be in trouble,'”; she said. “;For company morale, have the party, have a luncheon, have a cocktail party, have it at your office.”;

Next week, Sheraton Waikiki's Twist at Hanohano will launch a holiday weekday luncheon special at a flat $39 a person, aimed at companies like Maui Land & Pineapple Co., which is holding optional departmental luncheons for its 770 employees this year. Last year, MLP held a companywide luau at its Maui cannery property.

  “;We thought of the economy and we thought of the people who do want to have an office party away from the office at not a tremendous expense as it can get,”; said Suzy Ford, public relations and promotions manager for food and beverage at Starwood Hotels & Resorts in Hawaii. “;It can get very pricey during a dinner or cocktail reception.”;

Alex Kirley, regional director of sales and marketing for Ruth's Chris Steak House, said the company's 20-year Restaurant Row location has seen a similar uptick in luncheon traffic.

  The restaurant has five locations in Hawaii, and offers meeting rooms built to host wedding receptions, birthdays and corporate celebrations. Business is expected to meet or exceed last year, she said.

“;We do a significant amount of holiday private dining business in December; people also have holiday parties in January,”; Kirley said. “;It's a large portion of our business.”;

The Hawaii Advertising Federation said it will continue its annual holiday party this year, but at a cheaper price. It lowered the cost of tickets for its biggest fundraiser by $20 with the hope of filling 150 seats. The event had 125 attendees last year.

“;We think that we are going to have a harder time,”; said HAF President Paul Lam. “;Last year we tried $75 - we just thought that $75 was kind of steep given the economic times.”;

This year, sponsors helped the organization charge minimal costs for food at Doraku Sushi, Restaurant Suntory and P.F. Chang's Waikiki.

“;We have a lot more value as far as the package goes,”; Lam said. “;Last year's party you go to Pearl for pupus and Mariposa's for desserts, this year you go to three different restaurants for food and drinks, with an added beer tasting.”;

Glenn Mason, president of Mason Architects Inc., said his 24-employee company will hold its holiday party with catered food and entertainment next month at Mission Houses Museum. Mason has held parties for at least the last decade at venues including Kualoa Ranch.

“;The setting was appropriate,”; he said. “;We didn't see a need to cut back. We saw a need for working with a not-for-profit and giving some money back.”;

Money management sites

To keep with the theme of money-minded gifts, consider including a list of free budgeting Web sites in an accompanying card. Below are a couple options that can help your loved ones get their finances in order.

» Geezeo.com: On top of tracking finances, users can make a plan to get out of debt, set a savings goal, plan for retirement or learn how to buy a house. Users also can share their tips and goals with the Geezeo community.

» Mint.com: Aggregates account data, gives alerts on low balances, bank fees, upcoming bills and personalized suggestions on ways to save money.

» Moneycenter.Yodlee.com: Tracks home values as well as information from multiple bank and credit card accounts. Tools include spending reports and alerts on large transactions that may be fraudulent.

» Quicken.com: Detects upcoming bills and paychecks over the next several weeks and customizes budgeting with alerts to let users know if they're going over their limit. Users also can access accounts with smart phones.

» Wesabe.com: In addition to aggregating bank and credit card balances in one place, users can participate in online discussion groups or share tips and goals with other Wesabe members.

  » WeSeed.com:A risk-free way to learn about the market by trading virtual stocks. The site breaks down the stock market into sectors such as “;Kids Stock Market”; and “;Sports Stock Market”; so you can learn based on your interests.

Cost-cutting tips

Morgan Childs, owner of Honolulu-based event planning and consulting firm Moana Events, shares ways to cut down on costs and still have a holiday party:

» Hold a potluck at the company's offices.

» Work with the venue to bring your own dessert and do away with appetizers or alcohol. See if group discounts are available.

» Find a sponsor by working with business partners. In-kind donations can be applied to anything that you may have a partnership with in the company.

» Hold a cocktail party or luncheon instead of a full dinner. “;An extraordinary cost savings,”; Childs said.

» Instead of higher-end venues, book the event at midrange restaurants that have a banquet menu already in place, which makes it easier to work with on-site coordinators or the banquet staff. “;They are willing to work with you, especially now,”; Childs said.