Research and White Papers
Meetings Market Stable, Most Travel Buyers Agree
August 23, 2010
After a tumultuous 24 months, the meetings industry is finally on the mend, according to travel buyers, 60 percent of whom said they feel the meetings market is stable, Maxvantage reported today upon releasing the results of its latest poll, the
Travel Buyers Survey.
An alliance between American Express Business Travel and Maritz Travel, Maxvantage surveyed 90 business travel buyers in June and, based on its findings, concluded that a "mild recovery" is evident.
"Across the industry attitudes are increasingly optimistic as corporations are starting to invest in meetings again and travel and meeting professionals begin scheduling meetings," said Maxvantage Vice President Issa Jouaneh. "This renewed demand is making availability more challenging and is resulting in slight rate increases."
Compared to six months ago, Maxvantage found, only 9 percent of travel buyers say they find it easier to negotiate terms and conditions, versus 18 percent in December 2009. Meanwhile, 37 percent say they find it more challenging to find available meeting space, versus 18 percent in December; 30 percent that they find it more challenging to negotiate lower rates, versus 18 percent; and 27 percent that they find the sourcing process more difficult, versus 9 percent.
Increased meetings demand isn't just making it harder to find and negotiate meeting space, however. It's also making it more expensive to book accommodations, according to Maxvantage, which reported a stabilization of falling hotel rates during the first and second quarter of 2010. In Phoenix, Las Vegas and Philadelphia, for instance, rates rose 21 percent, 14 percent and 5 percent, respectively, between 2009 and 2010. In Chicago, Atlanta, Dallas and Orlando, meanwhile, they fell 16 percent, 14 percent, 8 percent and 1 percent, respectively.
"With market conditions changing, and indicators pointing to a move back toward a seller's market, it is essential that meeting professionals stay focused and aware of current trends happening in the industry," said Maxvantage Senior Vice President and General Manager Steve O'Malley. "Over the course of the past two years, because of the buyer's market environment, year-over-year savings has been easier to achieve. With prices firming, it's critical to look at all parts of the meeting equation — participant count increases, room and food and beverage rates, and firmer terms and conditions — to ensure meetings are achieving the desired return on investment and optimal savings."
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