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Five signs that the hotel meeting business is recovering
The U.S. Travel Association is predicting a 7 percent increase in meeting and convention spending this year, with a forecast of $90.7 billion. Last year, this measure fell 15 percent, as the effects of the financial crisis and subsequent recession led to cancelations.
To get the big bucks back in the door, hotels and convention bureaus have been rolling out favorable pricing and sweetheart deals, and it's starting to work.
So, how do we know this sector's coming back? Here are five hints:
1. The meeting planners say so: A June survey by Meeting Professionals International showed 61 percent of respondents saying "that they're seeing more favorable business conditions, including attendance, budgets and number of meetings," according to a USA Today report. Only 15 percent responded this way in August 2009.
2. Hotel groups say so: InterContinental Hotels Group has announced that its group and corporate revenue climbed 10 percent in the first half of 2010 relative to the same period in 2009. Denihan Hospitality Group's eight New York City hotels are showing an increase in group revenue of 26 percent year-over-year.
4. So does Fort Lauderdale: In this Florida town, group revenue is up 30 percent at the Harbor Beach Marriott. Corporate deals are still down from last year, but other groups are more than making up the difference.
5. Hotels understand what's going on: Even though the market is coming back, hotels realize that they still need to price aggressively. Notes George Aquino, general manager of the Grand Rapids JW Marriott Everyone's felt the turmoil of 2009. We don't want that to happen again."
[photo by msprague via Flickr]