1. Any insights into sectors of medium-sized meetings loss vs. growth? Government, association, faith-based, sports?
My guess is that medium-sized meetings would do fairly well in 2014. Smith Travel Research (STR) has no quantitative data to back this up, just a gut feel. Government will probably continue to be a challenge.
2. Can Bobby put on his magic glasses and forecast for groups in 2015 and 2016? We're having trouble finding group space in 2015 and 2016 at hotels and resorts.
Assuming continued growth in the economy, group performance will probably continue to improve in 2015 and 2016. Travelclick may have forward booking data that could help quantify the long-term outlook.
3. Did he just say that mid-size meetings to smaller meetings are doing better than citywide groups?
Anecdotal information suggests this is true, but there is no quantitative data from STR to support that.
4. Do you feel demand for guest rooms for meetings will ever again exceed transient demand in the top 25 markets?
I think that depends on the hotel. In certain properties, definitely. Taken overall, my opinion is no.
5. If the markets are trying for better rate, then could we negotiate more inclusives in that rate? Would the hotels prefer this to lower rate negotiation?
I think negotiating more inclusives is a good idea. Hotel management can often provide value-added components while holding rate.
6. I assume that these RevPAR/rate numbers do not include resort fees?
STR data guidelines call for the exclusion of resort fees from the data reported to STR. However, in some cases resort fees are included in the data STR receives.
7. Cincinnati is expensive to fly into. But, Nashville is as well.
I'm sure that's true. Airlift into small to mid-sized markets has been reduced in many cases. The offset is usually better hotel pricing.
8. How does New Orleans rate in the market? I know they have rebounded from Hurricane Katrina. Does it seem to be in demand?
New Orleans has definitely been strong in 2013. Expect more of the same in 2014.
9. I find negotiating in the luxury market for 2015 the rates are much higher, with lots of extra charges, including more gratuity with F&B. The hotels are pickier.
Luxury hotel performance has been very strong in 2013. Expect continued strong performance in 2014
10. Is there on comprehensive list that lists all the brands under each chain scale type?
Go to STR.com and check the documents tab. If you have problems locating, email me at bobby@str.com.
Bonus Questions
11. This data is relevant and somewhat helpful, but 10 minutes of this would have been enough. I think most planners want to know how these economic trends will more directly affect us, i.e., rates, concessions. Will hotel sales managers continue to work with planners, or instead start to play more "hard ball?"
Good comments. Maybe we should cut the "data" portion of the presentation down and focus more on how planners should think about negotiating with hotel management.
12. Was the $107 in 2008 prior contracted rates that actualized in the year, or rates sold in the year?
The $107 was actual average daily rate--all rate categories combined into a single number.
13. We are a very small company and I have found that the hotels in our area and the region are courting me more now than before. They are not getting the big groups anymore and know that we have regular offsite meetings of varying sizes.
That lines up with some of the anecdotal information we've heard.
