| | Meeting Planners Optimism Rising | By Robert Mandelbaum
Meeting Planners Optimism Rising | By Robert Mandelbaum
 As
U.S. lodging industry performance has turned positive in 2010, so too
has the attitude of meeting planners, though not quite to the same
degree. While the temperament of association, corporate, government and
independent planners cannot be characterized as exuberant, the emergence
of optimism provides hope for hoteliers that the group demand segment
is now on the path towards recovery.
According to a national survey of 148 planners, 43 percent of the
respondents felt that the general "health" of the meetings industry will
be better in 2011 as compared to 2010. This is a complete reversal of
opinion from three years ago when the same percent of the planners
diagnosed the industry as deteriorating in condition. The survey was
sponsored by ConventionSouth magazine and conducted by Colliers PKF Hospitality Research in early September 2010.
Volume Up
Of greatest interest to hoteliers is the increasing number of
planners that expect the volume of events they handle to grow in 2011.
Nearly one-third (32%) of the planners surveyed stated that the number
of meetings they will be responsible for in 2011 will be greater than
the number they are organizing in 2010. Among exhibition organizers, 22
percent expect an increase in events next year. These percentages are
not overwhelming, so what may be of more significance is the fact that
the number of planners expecting their meeting counts to decline in 2011
is half that recorded in the 2009 survey.
Attendance expectations are slightly more optimistic than the outlook
for the number of events. Thirty-seven percent (37%) of the planners
believe attendance at their events will rise in 2011. More importantly,
only six percent (6%) foresee a decline in attendance, down from 18
percent of the planners that reported a decline in attendance in 2010.
Less Pressure
Corporate and association budgets for meetings and exhibitions may
not be plentiful, but they appear to be growing. Just over one quarter
(26%) of the planners said they will be spending more per meeting in
2011 than they did in 2010, while only 10 percent expect continue to cut
costs.
Less budget pressure is further illustrated by the guidance given to
planners by their organizations. Thirty percent of the respondents
stated they will not have to cut any costs in 2011, while only 28
percent are having to consider secondary or tertiary markets an effort
to save money. In fact, over 50% of the planners cited that the economy
is no longer affecting their choice of destinations and meeting venues.
A Disconnect
While the pressure to cut costs may be diminishing, it has certainly
not gone away. Overall affordability was rated as the most important
criteria when selecting an event destination. However, when focusing on
the areas of cost containment, there appears to be a disconnect between
meeting planners and hoteliers.
In last year's survey, guest rooms were ranked as the second most
frequent area for cost containment. In the current survey, room rates
declined in importance to number five as a cause for concern. While
meeting planners are becoming less compelled to negotiate room rates,
they believe that hotel managers are more than willing to do so. Almost
three-quarters (71%) of the planners surveyed identified room rates as
the number one item hoteliers are willing to concede. On the other hand,
hotel managers are less willing to budge on reductions in service and
cancellation fees.
Early Stages
According to our survey of meeting planners, 2011 should mark the
first year of recovery for the group demand segment in the U.S. While
the majority of respondents believe the number of events, event
attendance and meeting expenditures will remain the same as they did in
2010, the number of planners expecting an increase in these measures now
outweighs the number expecting a decrease. By 2012, hotel managers will
hopefully have enjoyed tangible growth in group room nights, thus
bolstering their ability to be more aggressive with room rates.
Robert Mandelbaum is the Director of Research Information Services for Colliers PKF Hospitality Research (www.pkfc.com).
Special thanks to Marlane Bundock, Managing Editor of ConventionSouth,
for sponsoring the survey. This article was published in the December
2010 edition of Lodging.
About Colliers PKF CONSULTING USA
Headquartered in San Francisco, Colliers PKF Consulting USA (www.pkfc.com)
is an advisory and real estate firm specializing in the hospitality
industry. Colliers PKF Consulting USA is owned by FirstService
Corporation and is a subsidiary of Colliers International. The firm
operates three companies: Colliers PKF Consulting USA, Colliers PKF
Hospitality Research, Colliers International Hotels. The firm has
offices in New York, Boston, Indianapolis, Chicago, Philadelphia,
Washington DC, Atlanta, Asheville, Jacksonville, Orlando, Tampa,
Houston, Dallas, Los Angeles, Bozeman, Miami, Portland, Seattle,
Sacramento, and San Francisco.
Colliers PKF Consulting USA offers hotel appraisal and hotel valuation services, hotel market studies, hospitality litigation support, and hotel advisory services. Colliers International Hotels offers hotel brokerage and hotel transaction services. Colliers PKF Hospitality Research produces Hotel Horizons®, an econometrically based hotel forecast, BenchmarkerSM, a customized comparative hotel benchmark report, and Annual Trends® in the Hotel Industry, a historical hotel financial publication featuring rich hotel statistics, as well as hotel research services.
Robert Mandelbaum
Director of Research Information Services
Email: robert.mandelbaum@pkfc.com
ORGANIZATION
 Colliers PKF Hospitality Research
www.pkfc.com
3475 Lenox Road | Suite 720
USA
- Atlanta, GA 30326
Phone: (404) 842-1150
Fax: (404) 842-1165
Email: robert.mandelbaum@pkfc.com
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