HOTEL BUSINESS REVIEW

September FOCUS: Hotel Group Meetings

 
September, 2014

Hotel Group Meetings: Spending is Up

As the economy continues to improve, hotels are finally luring back business travelers, including those who are participating in group meetings and conventions. According to The Global Business Travel Association, group travel spending has grown 5.3% to $117.1 billion in 2014, a figure that well exceeds previous expectations. Given that group business accounts for as much as 30-40% of total revenues for a hotel operation, this is welcome news indeed. Still, this is no time for complacency. Savvy hoteliers are incorporating new creative ideas into their operations in order to satisfy their clientele and to differentiate themselves for their competition, with the ultimate goal of making meetings easier, more comfortable and even more fun. The emphasis seems to be on making group meetings "less institutional" and "more residential". One hotel chain has created meeting spaces that are more like lounges than standard conference rooms. Another offers its guests unusual food options like make-your-own trail mix stations and smoothie bars. Still another provides its guests with mobile apps that will let them make requests - from ordering coffee and food to changing the room temperature - without ever leaving the meeting room. Technological innovations are also of paramount concern as meeting planners are demanding that the latest innovations be available to attendees including universal wireless Internet access, videoconferencing capabilities, charging stations, and a secure protected environment in which to conduct proprietary business. Finally, some hotels are offering more breakout rooms in order to encourage smaller and more intimate interchanges among attendees after long group sessions throughout the day. The September Hotel Business Review will examine what some hotels are doing to facilitate this segment of their business and to meet the expectations of their guests.

This month's feature articles...

Michael  Hudson

Hotels are making more decisions with less information, more rapidly than ever before. The difficult truth is that 75% of Groups do not meet their contracted rooms pickup. This fact, coupled with meeting planners consolidating the RFP process with a small number of companies and the proliferation of widely distributed leads via automated platforms makes the group meetings business extremely difficult. There is a solution to the challenges hotels are facing in the group/meeting industry, and the answer may not seem obvious at first. The solution is an ox. READ MORE

Julie  Pingston

Research indicates that a planner's experience with a CSM is one of the main reasons they will rebook with a venue for future events. A well-rounded CSM can help increase the ROI for hotel executives looking to grow their event/meeting business to compete with other surrounding venues in their area. CSMs are extremely valuable resources to planners coming into an area and play a vital role in securing repeat business. READ MORE

Martha  Sheridan

The movie “Up in the Air” cast the Hollywood spotlight on the perceived drudgery of business travel. For two hours, the audience watches George Clooney hustle through a faceless airport en route to an equally bland hotel. Happily, this kind of dull corporate travel is becoming much less of the norm, particularly in the meetings and conventions market. Over the past decade, meetings have evolved to incorporate a wide variety of experiences for the attendee. From new technologies that allow for deeper engagement and more meaningful learning, to unique and interesting venues, to room set-ups for enhanced connections and dialogue, today's meeting attendee expects the total experience will be a transformative one. READ MORE

Craig Jacobs

LinkedIn, Tumblr, TripAdvisor, Foursquare… With so many sites to navigate, it is easy to see these new media as a replacement for personal relationships or even as a threat to our industry. But in fact, it is vital that group sales teams view social media as a valuable tool to leverage future opportunities and stay on top of their competition. This is an in-depth look at how the group sales landscape has changed with the arrival of social media and my top tips on what do to (and not to do) to ensure success for your group sales team. READ MORE

Claire Repass

What does your hotel's customer ecosystem look like? Impactful first impressions, personalized service and pleasant surprises sound like terms ripped right off of a customer service checklist: is your hotel employing them? Are you leveraging your employees to build meaningful relationships with your guests? Do you consider the idea of community engagement a necessity to success? Learn why personalized attention in hotels is reshaping the way we offer guest service, and how your team can create advocates for your brand through something as simple as understanding what your guest really wants. Hint, it's not a fancy lobby. READ MORE

Brenda Fields

It is unquestionable that we are faced with strong economic conditions, especially in the United States, which have had a dramatic impact on the lodging industry. For the past five years, all success indicators (occupancy, average rate, and RevPAR) have climbed steadily and most owners have enjoyed record profits. In New York City alone, demand for the first six months of 2014 increased by 6.6%, breaking all records, per Smith Travel Research (STR). READ MORE

Mark Cooper

Gathering places for people to meet and hold events have been around since mankind began and there have been many fascinating meeting venues which have been built over the centuries where historically significant decisions have been made to shape the world we live in today! Back in 1981, a group of hoteliers recognized the need to provide a serious concentration on the productive meeting environment and founded the International Association of Conference Centres. In the years since the term "conference centre" was coined, and for IACC, it represents a total commitment to the concept. READ MORE

Lynn McCullough

Broadway composer and lyricist Stephen Sondheim summed up the key to a successful marriage in the musical Company by noting in the song 'Perfect Relationships' that “it's the little things.” So too with the partnership between a meeting planner and a hotel—it's the little things that add up to a booking, a successful meeting and the potential for repeat business. CMA Association Management (CMA) has provided comprehensive association management services to national and global professional and trade associations for over 25 years. In that role, we have staged hundreds of meetings, conferences and trade shows, most of which have been at hotels across the country and the world. READ MORE

Sean  Worker

As the economy continues to improve, hotels are finally luring back business travelers, with business travel in the United States expected to increase by nearly six percent in 2014, and a continued upward trend anticipated into 2017. This is great news for the hospitality industry across the board, as business travel accounts for up to 40 percent of total revenues for hotels. But as business travel resurges above and beyond levels seen before the recession, many standard hotels are scrambling to find innovative ways to entice guests. READ MORE

Laura d'Elsa

The traditional group business meeting is becoming a thing of the past. Meeting planners want to ensure innovative events capture the hearts and minds of meeting attendees. Business travelers want and expect knowledge sharing and networking that show a real return on investment. Stepping up to the plate to address these needs are savvy hoteliers, who offer unique and differentiating experiences to their group hotel guests. This article highlights German hotel innovators and best practices. It also offers tips for hoteliers who want to maximize their guests' immersive experience as part of group travel. READ MORE

Kevin   Fliess

Event technology has been simplifying life for planners since the late '90s as entrepreneurs have used the most advanced tech to solve industry pain points, and to respond to constant demands from planners for new functionality. This article looks at 15+ years of event technology advancement, comparing old and new methods, offering anecdotes on tech adoption's early successes and challenges, and looking ahead at how technology will continue to change the meetings & events industry. READ MORE

Larry  Mogelonsky

With the power of the internet, business doesn't need to be conducted face-to-face. Even with this grand technological advancement, however, the act of meeting in person is still a highly productive activity. And oftentimes we overlook the impact of personal hotel spaces on the overall conference experience. By incorporating several key upgrades to guestroom design, a meeting or convention attendee can be better connected, work more effectively and have an elevated mood while staying at a property, thereby improving guest satisfaction, word of mouth and overall demand to allow for an increase in ADR and in turn revenues. READ MORE

Michael  Kofsky

Hotels are critically dependent on revenue from events such as conventions, trade shows, and exhibitions. The more successfully and efficiently hotels can execute meetings and events, the more they can garner both return and referral business, a very essential way to increase room revenue and profitability. However, for any executive or business meeting planner, when deciding where to host an important event or other large gathering, there is a lot at stake. The decision to choose the correct venue is one that can be incredibly time consuming and potentially determine the turnout and overall success of the gathering. While the destination is always an important factor, site size, flexibility of layout, comfort of chairs, audiovisual (AV) capabilities, Wi-Fi access and strength, lighting, and even power outlet accessibility are also critical factors to consider when determining an event space. A hotel can accomplish more effective events by creating modern, sleek, but still warm and welcoming event spaces that meet these needs yet are also comfortable and convenient, and leave hosts and the guests with outstanding experiences for the most efficient group event. READ MORE

Michael Sturman, Ph.D.

The reasons that people attend tradeshows depend on whether they are exhibitors or attendees, although the purposes cited by the two groups intersect, according to a study of 2,257 tradeshow participants. Exhibitors are strongly focused on developing sales leads and demonstrating products, while attendees are chiefly concerned with educational opportunities. Tradeshows are increasingly using technology solutions to support those goals, including matchmaking and scheduling software, as well as on-site wi-fi, mobile apps, and internet cafes. Also important to participants' satisfaction with a tradeshow are sustainability programs, notably recycling and a reduction of paper collateral. READ MORE

Jesse  Suglia

Closing the Deal with Tough Customers in a Competitive Environment: Closing the deal with a tough customer in a competitive group hotel environment can be challenging - but it doesn't always have to come down to price. Even when the client has a handful of hotels from which to choose, these strategies will help your hotel sales team weave together a customized plan of attack that hits client hot buttons, maximizes relationships and showcases standout site benefits that can make the sale…while steering the conversation from price to value. READ MORE

Elaine  Macy

The economic downturn of 2009 caused dramatic changes in the hotel group sales market, primarily in the automotive, financial services, insurance, and pharmaceutical industries. The number of incentive trips and meetings were drastically reduced and even cancelled across all industries. Five years later, meeting planners are faced with a new wave of opportunities and challenges and now have to re-think and understand how the "groups game" has changed. Here is a brief overview of best practices for how meeting planners can maximize their success in today's competitive landscape. READ MORE

Darrell Schuurman

In my last article, I wrote about the importance of diversifying your customer base and how the LGBT market offers great opportunities for hotel operators. However, to be successful in this market, or any market for that matter, it is critical that you know who this market is and what they are looking for. Without this, you will not be able to successfully meet their expectations. READ MORE

Dylan Loch

Every hotel around the world wants one thing: to sell inventory. Now we know that not all hotels can possibly operate at maximum capacity around the clock, but how can we quantify the costs and benefits while operating at capacity? We all know that maximizing revenue by selling all available rooms is ideal, but analyzing the smaller details can result in the accumulation of thousands of lost dollars. And what are we doing to combat losses generated by last minute cancellations? READ MORE

Scott Nadel

In any business sector there exists the possibility for unethical behavior. In the hospitality industry, this behavior can consist of overcharging, infringement of guests' property, overbooking, charging for unused services and supplying misleading information in websites and brochures. The elimination of such practices can not only safeguard a businesses reputation, but can also add to its longevity. Scott Nadel has created a company culture based on ethics and self-development. In this article, read about how his innovative strategies are creating a new framework for the workplace in hotel business culture. READ MORE

Jonathan  Sullivan

What began as a trend in lager cities, the growing popularity of the craft beverage movement is taking the food and beverage industry by storm, increasing by 18 percent from 2012 to 2013. As defined by the Brewers Association, an American craft brewer is small, independent and traditional; has an annual production of six million barrels or less, no more than 25 percent of the craft brewery is owned or operated by an alcoholic beverage industry member that is not a craft brewer and must brew beers using traditional ingredients, such as malt barley. READ MORE

Christopher Chua

BLINK's philosophy revolves around the power of instinct and first impressions. So, as you might imagine, these are things we hold as sacred. But instinct isn't everything. The other ingredient to making the magic happen in hotel design (besides a great client and a very talented team) is deep, painstaking and exhaustive - not to say exhausting - research into every aspect of the project's location, culture, history and design vernacular, Research and an informed perspective — as well as being open to the flashes of inspiration and accepting that the best ideas can be those which jump into the mind first — are the backdrop against which our design process unfolds. READ MORE

Christopher  Bolger

Both the workplace and our roads have become safer in recent decades, but when employees of hotels or any business get behind the wheel in the course of their work, they are still at risk. In fact, transportation incidents are the leading cause of occupational deaths across all industries and a major source of costly insurance claims. To mitigate this risk, hotels should examine hiring practices and training for the valet attendants and shuttle drivers they employ, and implement best practices in both areas. READ MORE

Simon Hudson

When Lee Goossens purchased Wickwoods Country Club, Hotel & Spa in 2010 it was bankrupt and empty. It is now an idyllic weekend getaway for fitness enthusiasts, walkers and tennis players - and the hotel is also attracting both corporate and wedding guests. This article focuses on the advantages and the challenges facing boutique hotels in a market dominated by big brands - and highlights the interesting history of this boutique hotel, showing how Goossens, with shrewd business acumen, an innovative investment plan, and a $2million renovation, has turned things around by responding to trends and focusing on quality and top-notch customer service. READ MORE

Peter McAlpine

When the hotel industry discovers what mankind has known for thousands of years that the human body has an energy field, hoteliers will have discovered the means to making the greatest transformation in the hospitality guest experience since the hotel industry began. It is both frustrating and amusing to watch hotels and hotel groups scramble over each other as they look for the next Big Thing that will give them the edge over everyone else. But as soon as one hotel group finds a new piece of technology or a new way to use the internet, they all copy each other immediately and then every hotel group becomes exactly the same again. Hoteliers have become so programmed to think in terms of technology and the internet that they cannot see any other possible direction to go in to find the next Big Thing. The blind are leading the blind. READ MORE

Daphne  Sipos

The hospitality industry recognizes that family travel is changing. People are time-starved, hungry for connection and hungry for experiences. They are traveling to far-flung destinations to explore the world with their children, and they aren't willing to compromise on their luxury hotel experience. The hotel brand that is able to create a home away from home and also provide them with the opportunity to truly experience these unique destinations will attract families and keep them loyal. St. Regis Hotels & Resorts has created a program that caters to the needs and requirements of the sophisticated family traveler - our hotels welcome and celebrate families around the world and offer unique destination-led experiences throughout a stay. READ MORE

Ken Hutcheson

Water features—such as a pond, decorative pool, or swimming pool—on the grounds of a hotel or other commercial property can add a great deal of charm to the landscape. In fact, these features are almost always the first thing that capture the attention of your guests. However, these valued and highly visible features require landscapers to consider a number of factors in order to ensure maximum health, beauty, and enjoyment of your ponds and pools by your guests. READ MORE

Susan Tinnish

As hotels implement Corporate Social Responsibility (CSR) initiatives focusing on economic, social and environmental issues, the long-term success of these programs is dependent upon wide-spread, sustained action across the organization. This change can occur only when employees buy into and support the program. The idea of engaged employee has been studied broadly in organizations. This article examines the idea of employee engagement as a concept to support CSR initiatives. In addition, the ideas of leadership and followership, sensemaking and organizational collaboration are discussed as conditions which engender employee engagement. READ MORE

Emil Atanassov

Digital findability is one of the most important factors when it comes to your global hotel website. After all, what good is a beautiful, well-designed and translated website if travelers in other countries can't find it online? To position your global hotel strategically on a crowded world stage, you need to plan for and implement multilingual search engine optimization (SEO). From professional keyword selection to populating your website with valuable localized content, follow proven best practices for ensuring optimal search rankings in each target country. READ MORE

Bernard Ellis

In today's world of 24/7 information access via smart phones and tablets, the next generation of hotel guests expects instant gratification and craves constant connection to the data and services they seek. This has significantly impacted the hospitality industry, as hoteliers are faced with the challenge of keeping pace with ever-increasing service expectations from guests through a growing number of outlets. In order to meet these expectations, hospitality organizations are examining internal processes and looking to new technology platforms to help boost efficiency and speed service to guests. READ MORE

Kelly  McGuire

Revenue management is a relatively new discipline in the hotel industry. Changing market conditions, the evolution of the analytics and the expanding role of the revenue manager have forced an evolution even in this relatively young practice. In the excitement of all that is new, it is tempting to set aside the practices of the past and write a new playbook for the future. Revenue management is changing, by necessity, with the times, but there are still some core components of this crucial function that must be maintained. READ MORE

Coming up in March 1970...