With destinations across the country filling in soft spots, seasonal rate differences have been leveling out. However, while they might be less predictable than they once were, seasonal values have not entirely gone away.
“There are still great deals to be found,” says Donovan Shia, president of Corpus Christi, Texas-based CVBHotRates.com, which represents more than 40 CVBs across the country.
While less of a bargain than they once were, low and shoulder periods remain a major avenue in the meeting planner’s search for value, he adds.
Although hotel occupancy growth has flattened out, new hotel supply continues to be absorbed and rates are continuing to climb, says Bill Briscoe, chief industry relations officer for Scottsdale, Ariz.-based HelmsBriscoe, a site selection and meetings planning services company.
“It’s tough in a seller’s market,” he says. “Major cities like New York, Chicago, and Las Vegas are obviously doing very well, although hotel occupancies have generally leveled in the last year,” he says. “Planners are more open and are looking at secondary markets where there is more availability and rates they can handle, and new destinations are developing.”
At the same time, peak seasons in some destinations are expanding and providing less flexibility for negotiating than ever, he adds. While states like Florida and Arizona still offer much better deals in summer, they “stick to their guns January through March.”
Shia emphasizes that each destination is very different, that most hotels update their offerings on a monthly basis and that situations can easily change.
Here’s a look at what’s happening with seasonal rates around the country:
Grand Rapids, Mich.
Grand Rapids, Mich., is an up and coming meetings destination where the best weather happens to occur during its low season.
The Grand Rapids/Kent County CVB targets groups of 1,000 on peak nights, although the city has hosted groups of up to 6,000. Earlier this year, the city was chosen to host the 2009 Religious Conference Management Association conference.
“Our hotel rates are extremely competitive, and we can put together a good meetings package, especially in the summer,” says Steve Wilson, president of the CVB. “We have an interesting dynamic in that downtown is busy in winter when there is a lot going on. Sidewalks are heated, and snow melts when it comes down.”
While summer in Grand Rapids offers a comfortable climate and a lot of opportunities for golf and other outdoor recreation, it is a slow time for the city in terms of business, he adds.
Kansas City, Mo.
Kansas City is another destination that offers seasonal values.
According to Denise DeJulio, director of convention sales for the Kansas City Convention & Visitors Association, late fall through winter is the time when local hotels need business. Peak season is June through September, with spring as the shoulder season.
“In late November, December, January and February, hotels typically have better rates, although in January we have consumer shows,” she says.
New Orleans
Planners looking for seasonal values will find plenty of them in New Orleans according to Custom Conventions’ Carling Dinkler.
“Booking short-term meetings in New Orleans is no problem. It’s the best buy in the country right now,” he says. “Business has been picking up, and it has been exceeding our expectations. But the city is still missing individual business travel.”
Last November, 15 months after Hurricane Katrina, the city’s Morial Convention Center completed a renovation. In January the New Orleans Metropolitan CVB announced a new international branding and marketing campaign, “Forever New Orleans.”
“We’re back to our normal seasonal pattern with terrific values, significantly lower room rates and great availability in our summer low season,” says Jeff Anding, director of convention marketing at the CVB.
Portland, Ore.
Mike Smith, vice president of sales at the Portland Oregon Visitors Association (POVA) compares a CVB to a dating service in that it’s designed to get people together, compromise and make the right fit.
According to Smith, Portland traditionally does strong leisure travel business in summer, while spring and fall are prime times for meetings. While winter is the slowest time overall, this is starting to change.
“Winter used to take a nose dive, but we’ve been able to even out the seasons. They are not hard and fast, not the big line in the sand that they use to be,” he says.
Charlotte, N.C.
Charlotte N.C, the country’s second largest banking center, has been filling in its softer summer periods.
Jeff Hewitt, senior director of sales at Visit Charlotte, says that because of the city’s mild climate Charlotte’s “cyclical demands based on weather are minimized.”
“Our highest demand periods have been spring and fall,” he says. “Summer months are considered the soft or shoulder months. Hotels offer more attractive rates in summer, and can be even more accommodating if groups meet over the weekend.”
However, he adds that the off-peak summer months now produce some of the highest occupancies of the year. To drive occupancy, he says, Visit Charlotte is focusing on rate-sensitive groups, such as religious meetings and amateur sports events that meet in summer.
