With 15 different destinations on the Milken Institute’s 2014 list of America’s Top 25 Best-Performing Cities, Texas stands out as a solid bet for business. Lone Star metros held five of the top 10 positions, with Austin-Round Rock-San Marcos just behind the top-ranked San Francisco region. From Dallas-Plano-Irving (ninth place) to Laredo (18th) and Lubbock (20th), bountiful bellwethers are also found in the Texas group market, with bureaus reporting across-the-board optimism for 2016 and beyond.
Metroplex Might
Group and convention business continues to boom in Dallas, with ease of airlift, top-tier amenities and value all major advantages. According to the Dallas CVB, groups can take advantage of all the city has to offer at about 60 percent of the cost of other major U.S. cities such as Chicago, New York, Los Angeles or Miami.
“Hosting a show in Dallas is significantly less expensive across the board,” says Dallas CVB President/CEO, Phillip Jones, citing an industry labor rates study. “Also, boasting a robust hotel supply and highly competitive rates—ADR is half that of Chicago—Dallas is a smart business decision.”
Customized site inspections are yielding strong dividends, as in the case of two new corporate clients meeting in Dallas for the first time. After carefully researching the clients’ past annual meetings, the Dallas CVB teamed with local hospitality leaders to deliver unique tours articulating the city’s culinary scene, thriving nightlife and off-site venues.
“Overcoming their misconceptions while imparting a true sense of community and personalization resulted in six future annual citywide conventions between both organizations,” says Ruben Perez, vice president of sales for the Dallas CVB.
Excitement is the operative word in Fort Worth, with development plans that include a new 14,000-seat multipurpose arena and a supporting 250-room Westin in the Cultural District, as well as a $175 million redevelopment of the Stockyards National Historic District.
“Our 2015 group business is healthy, with meetings like AstraZeneca and Red Bull sports booked for the future,” says John Cychol, vice president of meeting sales for the Fort Worth CVB. “We are optimistic about all the opportunity for group business ahead.”
Irving has its own astute grasp of market dynamics.
“Following an extraordinary 2015, the pace for 2016 looks equally strong,” says Irving CVB Executive Director Maura Gast. “However, following the trend of the last three federal election cycles, we anticipate a slight fourth-quarter corporate market softening from October into the holidays,” Gast continues. “Come January 2017, we’re right back on a normal pace, and we’re expecting that will also be the case in 2018.”
Irving is well-positioned for the future. “The vision for our convention and visitor district, slated for completion by the end of 2017, was to create other legs to stand on when the corporate market inevitably slows,” Gast says. “We have complete confidence that it will deliver.”
After a strong 2015, Grapevine is juiced for 2016 and beyond.
“The city’s branded hotels, highly desirable centralized location, proximity to DFW International Airport and outstanding convention facilities all factor into an exciting outlook for our meetings industry,” says Brady Closson, director of sales for the Grapevine CVB. “Working closely with stakeholders and marketing partners, we are maximizing key growth opportunities in areas such as sponsorship and value-added services to strengthen Grapevine’s position as a preferred meetings and convention destination.”
In Frisco, where the Dallas Cowboys’ new headquarters The Star is part of the “$5 Billion Mile” along the Dallas North Tollway, the outlook is bullish.
“Our mix of weekday and weekend business keeps Frisco strong for meetings and conventions,” says Frisco CVB Executive Director Marla Roe. “With SMERF business rising, corporate groups strong and steady, and gaming emerging as a new market, plans for more full-service meetings properties will allow us to accommodate even more group business.”
Plano continues to solidify its prime position in thriving North Texas.
“The city continues to attract planners with significant venues and amenities, including close proximity to two major airports, DART light rail service, two full-service hotels, the multipurpose Plano Centre, and eclectic dining, retail and nightlife options,” says Plano CVB Executive Director Mark Thompson. “Plus, Plano is annually recognized as one of the nation’s safest and cleanest cities.”
In January 2015, Toyota broke ground on its new $350 million North American headquarters in Plano’s Legacy West development, a move with the potential to attract automotive meetings and expos to the city.
Waco Wows
With new hotels in the pipeline and the newly designated Waco Mammoth National Monument, Waco is in solid shape.
“Having a National Park System site will significantly raise awareness of Waco, increase visitor excitement and ultimately boost group attendance” says Waco & the Heart of Texas Director Elizabeth Taylor.
“We expect more developer interest to meet the rising demand generated by the newly renovated Waco Convention Center,” Taylor says. “For now, groups are responding positively to our midweek availability, also a softer time frame for our hotel partners, which will allow us to continue to grow our convention business.”
Hot Houston
Despite anticipating slightly softer business in 2015 and 2016 given ongoing enhancements to the convention district, Houston’s group market is on the upswing.
“To date, we have hosted 171 meetings, 2 percent more than 2014, with attendance up 7 percent,” reports Greater Houston CVB President Mike Waterman. “We anticipate ending 2015 with 23 citywide conventions, also up from 2014, with 2016 citywide room nights currently pacing up 19 percent from 2015.”
Excitement is building as Houston hosts its second NCAA Men’s Final Four championship next April, and the 2017 Super Bowl, both at NRG Stadium. Commencing in 2017, Houston has a three-year deal to host FIRST, the world’s oldest and largest student robotics competition.
Optimism also defines the outlook in Conroe, north of Houston, based on renewed interest in hotel and conference center development.
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Super-Size San Antonio
With its appeal long tied to the now significantly expanded River Walk, San Antonio has steadily diversified its meetings prowess over recent years. With the $325 million Henry B. Gonzalez Convention Center transformation nearing completion, new UNESCO designation for the city’s five historic missions and other developments, the city is more desirable than ever.
“Taking stock of 2015 so far and looking ahead to 2016, bookings have been strong in terms of attendance and new, short-term opportunities,” says San Antonio CVB Executive Director Casandra Matej. “We expect an increase with larger meetings of 2,000 attendees or more when our convention center expansion opens in January 2016.”
This July, San Antonio hosted its largest (70,000 attendees) and longest (10 days) conference to date, the Seventh-day Adventist 60th General Conference Session. Ahead is the 2018 NCAA Men’s Final Four, which Matej says “has created the opportunity for us to significantly enhance the Alamodome, which will help us attract even more major sporting events.”
In scenic Hill Country, Fredericksburg is seeing rising group demand.
“Planners regularly report increased attendance when bringing clients here,” says Fredericksburg CVB President/CEO Ernie Loeffler, citing draws that include the city’s historic walkable downtown and Hill Country’s expanding wine industry. Encouraging, too, is a May 2015 feasibility study supporting a conference center/hotel project in Fredericksburg.
“Voted third behind Austin and San Antonio in the Hill Country-focused survey, we appreciate that support from the Texas planner community,” Loeffler notes.
Altogether Austin
Runaway hotel expansion, including the new 1,012-room JW Marriott Austin, is stimulating Austin’s convention economy like never before.
“The new inventory is enabling Austin to attract more citywide business and access larger groups than before,” says Steve Genovesi, the Austin CVB’s senior vice president of sales. “Having a second headquarters hotel on the horizon, the Fairmont Austin, is making our hotel package mix even more attractive to planners.”
Underscoring this impact are future conventions including the Modern Language Association of America in January 2016 (7,000 attendees, 4,000 rooms) and November 2016’s Tableau Software, attracting 10,000 attendees utilizing 4,000 rooms.
Galloping Gulf Coast
With recent wins including the U.S. Twirling Association’s U.S. National Baton Twirling Championships, and, for the fourth time, the simultaneous hosting of three different American Legion conventions, Beaumont is cultivating repeat business from local clients and state and national associations.
“Ongoing sales efforts and lasting relationships are key,” says Freddie Willard, director of sales for the Beaumont CVB. “Plus, we offer outstanding hospitality and creative financing solutions as the ‘extra touch’ in enhancing the guest experience and ensuring their conference success.”
On track to meet its booking goals, Galveston Island is benefitting from historic state association bookings in fiscal 2014 to 2015.
“Optimistic about meeting attendance and membership, state associations traditionally uninterested in the island are seeking us out as a meetings destination,” says Galveston Island CVB Director Meg Winchester. “With loyal repeat customers also in the mix, our hotels and convention centers have booked solid meetings business for 2016 and beyond.”
Offering free transportation, Wi-Fi, parking and for qualified groups, free meeting space, Galveston Island ranks among Texas’ most cost-effective destinations.
“Additionally, we continue to promote our incentives and build in cost-savings opportunities for planners to differentiate us from competing destinations,” Winchester notes.
West/Central Texas Calling
El Paso is focused on raising awareness of new visitor products being created by the city’s half-billion-dollar Quality of Life Bond.
“Partnering with the mayor’s office and economic development department, we’ve recently educated and entertained more than 150 travel writers, meeting planners, site consultants and other decision-makers on three mega-FAMs,” says Brooke Underwood, Visit El Paso’s director of convention development. “After hosting more than 48,000 attendees for the 2015 U.S. Bowling Congress Open Championships, with an estimated $75 million economic impact, we have the excitement of more high-impact conferences and events ahead.”
With new hotels, the Lubbock Memorial Civic Center completing renovations this fall and the $85 million Buddy Holly Hall of Performing Arts and Sciences on the horizon, Lubbock is “poised to be a game-changer as we grow our lodging market and available facilities,” says Amy Zientek, director of sales for Visit Lubbock.
In Midland, a recent 36 percent increase in inventory, or 1,100 rooms, plus more in the works, is enhancing bookings.
“That added competition keeps rates attractive while adding capacity for larger groups,” says Melissa Hagins, convention sales manager for the Midland CVB. “With plans to expand the Midland Center, we see a strong, bright future ahead for Midland.”
Optimism is also the watchword for Wichita Falls, a top draw for smaller meetings and state and trade associations.
“We are excited about a feasibility study supporting the need for a full-service convention hotel development, and anticipate that future product to increase our meeting business,” says Wichita Falls CVB Director Lindsay Greer.
Southern Stars
Offering an ideal business-pleasure mix for groups, laid-back Corpus Christi is basking in business and leisure success. Meetings are up 100 percent over 2014, driven by substantial gains in the small meeting and corporate segments. Leisure travel is also surging, courtesy of the Fiesta de la Flor music festival, created and organized by the Corpus Christi CVB and generating 7,500 room nights in one weekend this year.
Laredo is also in a positive mood with its strong economy, and its international cultural, culinary and heritage appeal.
“I would characterize our market overview as having strong potential,” says Laredo CVB Director Blasita Lopez. “Led by smaller meetings, our group business has increased by 50 percent since 2010, and with a successful sales effort in place, we look forward to a strong 2016.”
The future also looks bright in McAllen.
“With one newly opened hotel and four more on the near horizon, 2015 was a banner year for hotel occupancy,” reports McAllen CVB Vice President/Director Nancy Millar. “Sports are also blossoming, with our warm winter weather and new parks and facilities now coming on-line.”
