With all the stamina of a long-distance runner, Texas can count a strong economic heartbeat among the reasons to celebrate in 2011, its 175th year of independence. With recessionary clouds gathering once more, the Texas group and hospitality market is keeping a watchful eye on the horizon along with everybody else, but in conversations with CVB leaders across the state, we find hearts pumped and legs ready for the road ahead.
Major Muscle
The outlook is bright in Austin, where delegates enjoy 300 days of sunshine annually and inspiring views from the open, airy Austin Convention Center. Texas and national associations continue to provide a solid base of business, with youth and pro sports business on the rise.
“So far in 2011, we’re tracking ahead of 2010,” reports Rob Hampton vice president of sales for the Austin CVB. “Downtown occupancy is strong, at 78.3 percent over 74 percent at this time last year, and with new hotels on the horizon and major event bookings ahead, 2012 is looking solid.”
Currently experiencing shorter lead times from a compressed booking cycle, Fort Worth is seeing an increase in association, trade and commercial business, along with a lift in sports business, partially attributed to February’s Super Bowl.
“Cost factors remain critical to meetings decisions,” says David DuBois, president and CEO of the Fort Worth CVB. “For qualifying groups new to Fort Worth, our Meal Deal cost-sharing program is one way we are helping planners.”
Fort Worth is also well supplied with value-oriented products and authentic experiences, two other decision-drivers identified by DuBois.
“Our entertainment and cultural districts, along with our affordability, walkability and safety, make us an outstanding choice for planners.”
Anticipating the early opening of its Omni headquarters hotel in November, Dallas has good reason to look ahead.
“While consumption has not returned to pre-recession levels, our future bookings have increased every year,” says Phillip Jones, president and CEO of the Dallas CVB. “In fact, Dallas has ranked first in the state for future room night bookings for six straight years.”
With a large mix of upcoming national and regional (Midwest and Southwest especially) business from the corporate, association, SMERF and retail markets, Jones says interest in meetings in general, and meetings in Dallas specifically, “continues to be very positive.”
With corporate and state association business leading the way, Houston’s diversified group portfolio, which includes the scientific, engineering, education, medical and commercial trade sectors, has kept overall market performance balanced and consistent.
“From 2008 through 2010, we’ve been averaging about 1,800 room nights per booking,” says Greg Ortale, president and CEO of the Greater Houston CVB. “On pace to meet that same average in 2011, early indications show a strong 2012 ahead, currently averaging 3,000 room nights per booking.”
San Antonio is also maintaining its competitive meetings edge.
“2011 has been a great year so far, with demand up 7.5 percent due in part to growing attendance, and we see this trend continuing into 2012,” says Casandra Matej, the San Antonio CVB’s new executive director.
Continuing to position San Antonio “as a great value for both large and small meetings, with excellent convention facilities and a vast assortment of accommodations for all meeting types,” Matej is confident of exceeding the bureau’s booking goal of 850,000 room nights.
Pumped Up
Around the Metroplex and across the state, healthy reports are also coming in from smaller markets in Texas.
With its group business rebounding, Frisco, also a strong leisure draw, is enjoying increased business travel this year.
“We are fortunate to have a strong mix of weekday group and transient corporate business and weekend sports and association business,” says Marla Roe, executive director of the Frisco CVB. “On target with our 2011 goals, we anticipate improvement in 2012.”
Drawing mostly state and regional associations from Texas and shoulder states, Mesquite, an attractive value buy in the Metroplex, is “cautiously optimistic” as business picks up in 2011.
With non-professional sports, association and SMERF groups complementing its dominant corporate core, Plano is also on the upswing.
“We have seen business steadily grow over the past two years,” says Mark Thompson, director of the Plano CVB. “With about 4 percent growth in 2011 over 2010, we see that same growth continuing ahead.”
The sun is breaking through post-downturn clouds along coastal Texas. Naming Texas state associations and SMERF meetings as its key markets, Galveston Island’s national association and corporate business is returning, with emerging interest from sports groups.
“2011 has been a strong year for us, and our leisure and group markets are looking positive ahead,” says Meg Winchester, director of the Galveston Island CVB.
Presently running about 11 percent above 2010 in occupancy and 10 percent in RevPAR in hotel occupancy, the Corpus Christi CVB anticipates growth in multistate, regional state conventions, niche markets and outdoor recreation and military associations, reports Keith Arnold, CEO of the Corpus Christi CVB.
In West Texas, safe and affordable El Paso has remained resilient on a steady diet of state and regional meetings. It’s also good news from the Midland CVB, reports Christopher Havins, convention sales manager for the El Paso CVB.
“Midland has remained healthy throughout the recession,” he says. “2011 has been a strong year and in line with our 2010 numbers, which saw an increase in group business over 2009. With many of our hotels at capacity with business and group travel, the outlook continues to look good for 2012.”
