There have been positive trends of increased demand for more face-to-face meetings and convention programs, with even large attendances being recorded. So what does that mean for Illinois planners in 2013?
Certainly, the year brings a brighter economic forecast, with the meeting, convention and hospitality industries bouncing back and into the “business of business.”
For hotels and resorts the pendulum has clearly shifted away from the buyer’s market enjoyed by planners since late 2008 to today when nearly 70 percent of planners feel they have entered a seller’s market. We have definitely seen increased demand for programs, with more business already confirmed and on the books for 2013, 2014 and into 2015-and with little new supply growth in the equation.
So, is the sale over?
The answer is, not completely. But, the “sale rack” has been picked over pretty well.
City hotels, in particular, are bustling. So the “sale” is likely over at these properties. This is due to the recovery of not only the meetings and leisure travel markets, but also the individual business traveler (IBT) market. Each of these three markets have steadily increased, and with a finite inventory of available rooms and very little new construction in the upper-upper tier and luxury-level sectors of the hotel industry, this may provide quite a challenge for planners requiring rooms and space at city hotels in 2013 and beyond.
In short, book soon and be flexible so that you can secure the hotel(s), dates, rates and space that your group requires. But be prepared for less significant discounts than you may have enjoyed in recent years, and expect terms and conditions to return towards the levels of pre-2008.
The reality is that demand has increased, and many city hotels have reduced their available inventory for the group sector to make room for the higher-priced IBT and leisure guests. This situation will likely not change much until at least 2016 or 2017, when we may see some newly constructed hotels start to open.
Note though, that this does not mean that “values” will not continue to exist in 2013. There still will be windows of availability at city hotels, and particularly at hotels in smaller cities and resorts outside of the mega markets.
Also, work with your trusted Global Sales Organization (GSO) professional to find available value opportunities, such as ALHI’s consolidated and current list of “Luxury On Sale” meeting venues. Then, when the programs arrive, your administration and attendees will feel they got the “sale” because you acted now as the market continues to shift onward.
– David Gabri
David Gabri is president and CEO of Associated Luxury Hotels International (ALHI),which has global sales responsibilities to the meetings andincentive marketplace for itsdistinctive portfolio of more than 140 Four- and Five-Diamond quality hotels and resorts worldwidethat specialize in meetings and conventions.
