HOTEL BUSINESS REVIEW

September FOCUS: Hotel Group Meetings

 
September, 2015

Hotel Group Meetings: There is Good News

The good news for those hotels that host Group Meetings and Conferences is that there is good news. The effects of the Great Recession have mostly worn off and corporations are now investing again in training and development, which translates into a robust booking pace. And though demand is strong, there are new developments within this sector that must be addressed in order to effectively compete, and to meet the expectations of conference attendees. First, and perhaps foremost, is wireless communications. According to a recent survey, the average participant arrives at a conference with three mobile devices in tow so it is imperative that a WiFi network be free, fast and reliable. And though this is the #1 issue for planning professionals in the meetings business today, there are numerous other concerns. There is a growing trend to incorporate out-of-the-ordinary occasions into the Group Meeting experience. Some examples of this might include partnering with local venues such as wineries; natural and historic wonders; intriguing adventure resources; and unique off-site reception and dinner venues - all of which might be a factor in deciding where to locate for a conference. Team-building activities are also making a resurgence. Some groups are looking for unusual ways to motivate, inspire, and build camaraderie, which might include a volunteerism initiative, like building bikes for kids in the local community. Of course, food and beverage options are also important and like the trend in hotel restaurants, planners want a variety of healthy choices to be available for meal menus and refreshment breaks. They are looking for food and beverages that will "perk up" their participants, not lull them into lethargy. The September Hotel Business Review will examine what some hotels are doing to facilitate this segment of their business in order to meet the expectations of group planners and attendees.

This month's feature articles...

Jennifer  Silberman

In today's business world, much of our time is spent attending meetings and conferences. A 2014 PricewaterhouseCoopers study examining meeting attendance and type found that more than 1.8 million meetings occurred in the United States over a year's time, with 225 million participants. The majority of these meetings were business/corporate (50 percent), followed by conventions (27 percent) and trade shows (12 percent).In-person meetings are a critical part of any business strategy, providing networking opportunities, personal connections and focused time to solve important issues. However, meetings can also have an unnecessary negative impact on the environment and broader sustainability efforts. READ MORE

Katie  Davis

We've all been there. First, the finger tapping and darting eyes - will I make it in time? Next, heart palpitations and small beads of perspiration. Oh God, please don't let it happen. Amidst an intense feeling of dread and potential hyperventilation…the unthinkable. The black screen. Push any button you'd like and nothing, I mean nothing will happen. Immediately your mind races, how many important calls, vital e-mails and essential Facebook posts will go un-received, unread and un-liked?? In this unfathomable and unconnected state, one has to wonder…why didn't I plug in at my last stop? READ MORE

Chaunsea  Keller

Wow! What a year 2015 has been for groups and conventions! For the first time since the down economy in 2009, I feel confident in saying that travel and group business is not only back, but it is better than ever! We have seen reports that some of the 2015 have had 20-25% growth in attendance over 2013 & 2014 attendance. Group business represents over 30% of all travel numbers now, which means it represents over 500 Billion Dollars (and small meetings - less than 50 group rooms per night - allocates over 2/3 of this number). With 2015 almost behind us and 2016 lurking around the corner, there have been some new trends in the group and convention market segments. These are not new concepts necessarily; however they are being creatively reintroduced into the group markets. READ MORE

Denise Suttle

An event manager who can successfully assist a meeting planner to create a smooth, trouble-free event is an extraordinary asset for any hotel. The relationship between the meeting planner and the event service manager creates loyalty that drives repeat business for a property or brand. READ MORE

Markus Mueller

Corporate culture and its impact on an organisation's success is a highly debated topic - especially in the hospitality industry. Throughout the past decade, travellers' needs have shifted from a desire for standardized accommodations to an environment that reflects an experiential model. A hotel stay is no longer just about a bed and breakfast - it's about living unique experiences. In this article, we explain how knowing your emotional “why” and creating a culture around it will help you deliver unique guest experiences - and will demonstrate how meetings and events can support or even help establish a company's culture. READ MORE

Elaine  Macy

Many years ago, the most popular cities for international programs were London, Paris, and Rome. While these three cities are still among the most in demand, today's planners are submitting more requests to Beijing, Berlin, and Istanbul than ever thanks to their strong infrastructures and for offering great financial value given the strength of the dollar and additional factors including incredible cosmopolitan centers of culture, politics, and media. Each culture has a particular way they run events, and it is common for planners from North America to experience resistance when requests are made to “Americanize” an aspect or require something to be done in a way that is truly never seen by the host destination. READ MORE

Laura d'Elsa

Increasingly, team building activities are being incorporated into meetings and events of all sizes. Hotels are rising to the challenge to deliver quality onsite and offsite activities that leverage hotel and local expertise, and provide meeting attendees something unique and challenging that helps them bond and build trust with one another. As trends in the meetings industry evolve, so, too, do trends in the team-building arena. Smart meeting planners work as early as possible with their hotel partners to ensure that their goals, objectives and budget for the perfect team-building activities are met. READ MORE

Deborah Borak

I am always perplexed when a hotel sales person that has just called and introduced themselves to me tells me that their boss requires them to call everyone that sends a lead to their hotel so they can ask questions and have a relationship. To me a relationship is something that is built over time and doesn't just occur because of one exchange, interaction or sale. Is this what hotel sales has really become? Make a phone call and say you have a relationship and the deal is done? READ MORE

Scott  Flynn

On average, 60% of a hotel's revenue comes from room sales. The other 40% comes from food, beverage, AV, meeting space, and other hotel services. Onsite events will increase your hotel's revenue simply by keeping your large groups onsite. This increases your opportunity to sell F&B and other hotel services while decreasing your corporate groups' expenditures on buses and offsite activities. READ MORE

Kelly Parisi

The Millennial demographic should not be overlooked. According to Forbes, Millennials represent over a quarter of the population in America and hold $200 billion in annual buying power. To date, about 55 million "Millennials" (16-34 year-olds) form the largest share of the U.S. civilian workforce - surpassing 53 million in “Generation X” (35-50 year-olds), 44 million “Baby Boomers” (51-70 year olds), and 5 million of the “traditionalist” generation. With these non-traditional innovators influencing the market, hotels are wondering how to evolve and cater to this new audience. READ MORE

Charles de Gaspe Beaubien

Remember the days when guests called to make hotel reservations? It was not all that long ago. However, times have changed, and the modern consumer's engagement with digital is absolutely transformative. In today's buyer-driven market, travelers prefer to shop and book hotel rooms online or via mobile device. They go direct to the hotel website or a popular OTA, only after having read dozens of peer reviews and researching options on a travel aggregator. More recently, travelers have been drawn to alternative accommodations and consumer-to-consumer options like Airbnb or VRBO. READ MORE

Karyl Leigh Barnes

The economic recession and the demands of a new generation of professionals - the Millennials - have inspired a move towards collaborative, creative meeting spaces. Across the industry, how are hotels rising to the challenge? Something magical is happening in the meetings industry. Perhaps the transformation is a byproduct of the downturn of the global economy and the rise of millennials entering the workforce at the same time. In 2009, the economic crisis hit swiftly and the meetings industry was persecuted in the media and among policymakers as an “unnecessary luxury.” READ MORE

Michael Sturman, Ph.D.

Technology forms a bridge between the complementary goals of tradeshow exhibitors and attendees. A survey of more than 2,500 tradeshow participants finds that exhibitors are focused on building client lists and showing new products, while attendees visit the show primarily for educational purposes. Tradeshow venues are increasingly seeking the technology "sweet spot" that connects the two groups despite their contrasting agendas. READ MORE

Claire Repass

There is no stopping the sharing economy train, and the route that conductors like AirBnb are navigating cut directly across the existing revenue paths laid by hotels. It's no longer an option to ignore the presence of the sharing economy, nor is it wise to fight against it. Managing the horizon of this rapidly changing marketplace, however, is where hotels will find their greatest strength. By tailoring the consumer and corporate travel sectors with a personalized service strategy, and looking across the tracks at AirBnB's best practices, your hotel can both compete and flourish in light of the sharing economy. READ MORE

Kevin Iwamoto

Ask any hotel executive what their top goals are and they will unanimously say driving more revenue from group meetings, selling more room nights, and increasing market share. Hotels can't just keep hiring sales headcount in order to increase market share, generate more leads, and respond to eRFPs. Additionally, the coverage they would need to expand market share is cost prohibitive and daunting at best-especially overseas in Asia-Pacific, Latin America, Europe, the Middle East, and Africa. READ MORE

Kevin   Fliess

When hotel technology is mentioned, planners often think of audio-visual and Wi-Fi coverage in meeting and guest rooms. Those things, however, comprise only the tip of the tech iceberg; as hoteliers know, the real technology accomplishments begin way before attendee arrival. For the business of putting heads in beds - and groups in meeting rooms - the industry increasingly relies on technology that is itself evolving. In only a few short years, for example, data storage has evolved from proprietary servers (something you can spill coffee on) to virtual "cloud-based" technology, which allows for exponentially more data. READ MORE

Paul van Meerendonk

While room revenue management has traditionally functioned independently of other revenue streams, a major step toward Total Revenue Performance is using advanced analytics to aggregate and synthesise across revenue streams. The result is actionable intelligence across rooms pricing, function space and beyond. Hoteliers know that the relationships between revenue streams can be intricate and very complex. Because of this complexity, decisions made with only one revenue stream in mind can directly impact the business performance of several other streams. READ MORE

Bob Cerrone

The beginning of a hotel renovation marks the start of a ticking clock. When the clock runs out, renovation projects must be complete or the hotel faces consequences that range from losing reservations to unnecessary customer disruptions from a building still under construction during a major meeting or convention. These consequences are far greater than just inconveniencing guests; they mean poor reviews, lost revenue, and visitors who may never stay at the property again. READ MORE

Bernard Perrine

Since the Internet gained popularity in the mid-1990s, it has largely damaged hoteliers' finances, with travel aggregators forcing down rates and taking a slice of the pie besides. But now a new phenomenon from cyberspace, social media, is offering ways to generate/replenish lost sales and grow. Aside from sparking operational improvements, social can help foster customer loyalty. A look at opportunities and challenges of this “second wave.” READ MORE

Brian  Mitchell

“He may live without love - what is passion but pining? But where is the man who can live without dining?” These lines from the English statesman and poet Owen Meredith, sum up what most of us in the industry would like to feel about dining. But the experience of dining has many elements and how these come together will determine what's more important - how our customers come to feel. It's a truism that first impressions are hard to change. And the earliest impression for diners occurs in seating. Where they're seated and how they're seated. READ MORE

Theodore  Mandigo

Chicago is built on convention business, and it's never going away, but the practice of booking large room blocks three to five years out limits ADR growth as meeting planners with short memories seek to extend the benefits they have accrued during the down cycle and are reluctant to give up negotiated gains when the market rebounds. This is something intrinsic to the nature of the market and just has to be dealt with as part of the cost of being in the business. It presents a challenge in setting rates for future business in uncertain times. READ MORE

Ken Hutcheson

The 2014-2015 winter season impacted thousands of people nation-wide. While those in the Northeast were hit with snowstorm after snowstorm (or blizzard after blizzard if you lived in Boston) and below average temperatures, folks in the South (i.e. Atlanta) found themselves in a state of emergency. If The Old Farmer's Almanac 2015-2016 prediction mirrors last year's forecasts, hoteliers must be ready for anything that winter throws at them. Whether it's winterizing your hotel's irrigation systems, fertilizing your landscape for spring, creating a snow and ice management plan, or getting your hotel ready for the holidays, there's much work to be done before the end of the year. READ MORE

Stephen Hall

The definition of excellence is ”consistently meeting right standards.” The definition contains the inseparable union of quality and ethics. Aristotle suggests that there are three legs on the stool of excellence. They are ETHOS, LOGOS and PATHOS. Ethos refers to standards and logos refers we “right” standards. Pathos refers to the passion which we must have to ensure consistency. In the previous issue we discussed ethics. In this issue we will discuss the ways in which standards are created. As we begin however one point is absolutely crucial to our discussion. READ MORE

Carl Kish

Human and sex trafficking, otherwise known as modern day slavery, is still the fastest growing crime industry in the world. This type of exploitation in the workforce may not be at the forefront of every hotel executive's mind, but it needs to be considering hotels are the third most common venue for sex trafficking.While Corporate Social Responsibility (CSR) progresses into the proverbial “business as usual” category thanks to the adoption of such legislative mandates from a number of countries, these laws do not specifically target human trafficking. These national CSR mandates can be seen as precursors to what California, and now the UK, have implemented to combat the 150 billion dollar forced labor industry. READ MORE

David DeMoss

Insurance is one of the most vital elements in any risk management program. Due to the many potential liability and property incidents your hotel can face on a daily basis, insurance can help protect your business from physical and financial loss. With such a high degree of importance placed on your policy, it only makes sense to take a close look at the broker presenting it. Are you trusting the protection of your business to the right professional? READ MORE

Richard Takach, Jr.

In today's hospitality industry we work with a broader age range of individuals—leadership, staff and guests—than perhaps ever before. It's not uncommon for a freshly trained 20-year-old employee at a hotel property to serve a guest in his or her late 80s or even 90s. At the reverse spectrum, staff members in their 60s or beyond may be called upon to “hold the door” for a 25-year-old entrepreneur walking in with only a shoulder pack.Nor surprisingly, each generation or demographic group comes to those encounters with differing levels of experiences, skill sets and expectations. In this article, we consider the impact of generational change on our hospitality organizations. Generalizations are just that and so require care in their making but we will be considering some issues or trends that are definitely influenced by age. READ MORE

Kenny Lee

Companies like Priceline and Expedia have become even more powerful as a result of strategic acquisitions of smaller regional players. A recent report by HVS Consulting found that Priceline now controls 62 percent of the European market. Expedia holds 70 percent of the US market. The result? While OTAs offer a number of advantages to hoteliers including a wide, multi-national reach and big marketing budgets, commission rates of 15 to 30 percent are a heavy burden on hotel profit margins. OTA commissions could also go higher as larger companies acquire smaller regional competitors. Less competition amongst OTAs means fewer choices for hoteliers looking for OTA partners. READ MORE

Abi Mandelbaum

Virtual reality is on the cusp of significantly transforming the way people interact and engage with brands. It is expected to grow into a $60 billion industry within the next 10 years. But what are hoteliers to do with the emerging tech today? More importantly, what do you need to know about virtual reality to decide whether it's right for your hotel? This primer will get you up to speed with this fast-moving technology, detailing virtual reality's past and present, as well as detailed ways innovative companies—both inside and outside the travel industry—are already using virtual reality to drive results. READ MORE

Parris Jordan

The Caribbean hospitality industry has experienced continuous growth following the global economic downturn that began in the last decade. This is especially present with the re-emergence of all-inclusive hotels. Though this sector saw its lull, it is booming with development now. With the creation of vacation club programs, all-inclusive hotels have been able to foster a reliable client base that is extremely loyal. As operating performances continue to strengthen, even more hotel financing opportunities will be available in the future. READ MORE

Michael Koethner

A Grand Opening of a hotel and/or wellness enterprise ought to be something very exciting and beneficial for everyone involved. It should reflect a strong sense of worldliness, creativity with an architectural and interior design touch of complete alignment, effective and well-thought planning, efficient and structured organization, a sense of familiarity and a feeling of having arrived home. It is through the alignment and the inclusiveness of all parts, where the whole presents itself, and thrives in total harmony, peace and abundance with everything the endless universe has to offer. READ MORE

Tom O'Rourke

Hotels that offer customizable and event-specific mobile apps for meetings provide high levels of service to their guests and leave lasting impressions. Today's business professionals demand technology savvy venues for their conferences. Providing an event app can give a venue a competitive advantage over other possible venues. Hoteliers, meeting organizers, and attendees all benefit from using a mobile app because it easily provides a convenient information center that adds value to the event experience as a whole. READ MORE

Coming up in March 1970...