HOTEL BUSINESS REVIEW

September FOCUS: Hotel Group Meetings

 
September, 2016

Hotel Group Meetings: Demand is Trending Up

Corporations and businesses are once again renewing their investments in people, strategic planning, and training and development. As a result, all indicators point to 2016 being a robust year for the hotel group meetings business. Group demand is strong and rates, especially during peak periods, are trending up. Still, hotels must continue to evolve to meet the changing expectations of group meeting planners and their clients. There are several trends and factors that are driving decision-making which planners have identified as being essential to the process. Though geographic location and room rates continue to be the most important factors when selecting a host property, food and beverage choices are becoming increasingly influential. Planners understand the value of first-class culinary options as these are often used to facilitate networking experiences. Another critical factor is the availability of sufficient bandwidth for high-speed wired and wireless connectivity to the internet. In addition, in an effort to eliminate unsightly and unwieldy power cords, planners are requesting the installation of mobile-device charging stations. These portable charging stations (which do not require devices to be plugged in) can be conveniently placed in common areas or directly in meeting rooms. Finally, there is a greater emphasis on teambuilding activities that are intended to challenge groups, and bring them closer together. Some hotels are offering scenic walking trails, GPS-aided scavenger hunts, kayaking into secluded coves or rollerblading on oceanfront boardwalks, among many other recreational activities. The September Hotel Business Review will examine issues relevant to group business and will report on what some hotels are doing to promote this sector of their operations.

This month's feature articles...

John Hess

Social responsibility enables a culture of caring within organizations in all sectors of business, including the financial services, manufacturing, and retail industries. At organizations of all sizes, from large Fortune 500 companies to small startups, individual team members find satisfaction in helping others and often appreciate the opportunity to do so, because acting with purpose provides a shared experience that is positive and contagious. As the groups business continues to evolve and sales professionals and corporate planners explore the latest bells and whistles, such as 3-D Selfie Stations, to get meetings attendees engaged and excited. READ MORE

Jim Vandevender

As hotels head into the fourth and final quarter of 2016, sales operations and revenue management teams are beginning to look toward next year. Budgets and marketing plans are beginning to be developed that hope to capture the lucrative high demand group market, drive RevPar and meet occupancy and ADR forecasts. But questions loom. Which segments will remain robust and fruitful? Will the high demand within corporate, for example, begin to ebb with the hotel construction pipeline in full swing supplying more and more inventory in most cities? READ MORE

Ben Premack

Meetings and events need not be designed around stuffy, windowless rooms involving information overload and ten-minute stretch breaks. These types of gatherings are neither engaging nor fun for anyone. Today, meeting planners want more than just a location; they want a flexible venue in a desirable destination which offers an array of amenities and add-ons for groups looking to make their out-of-office gathering one to remember, and even envied. Well thought-out and customized corporate meetings and events that feel more like a retreat can create new opportunities for employee growth, networking, and creative-thinking - all while boosting productivity and morale. READ MORE

Dan Berger

A decade ago futurists and armchair analysts were convinced that the internet would move face-to-face interactions online and therefore kill the meetings & events industry as we know it. Instead of joining together under one roof, we'd educate ourselves via webinars, make new connections exclusively over LinkedIn, and swap catered lunches for granola bars and iced-coffee at the office. So, what happened to this dystopia? Today, it's evident that technology is having the opposite effect on events. We're actually seeing that modern connectivity and social networking is driving higher demand for face-to-face interactions. In the past, we predicted that broadband would make in-person meetings redundant. READ MORE

Michael Dominguez

As the meetings market has fully recovered from the 2008 recession, this industry expansion has given all the players in the meetings market some unique circumstances that have not been collectively experienced before at any one given time. If this was a social media relationship, we would have to list it as “it's complicated”! First the good! We are experiencing record demand in North America that has set records now for 3 consecutive years. What is most encouraging is that there is not a particular scale of hotel that is leading this growth, but rather all segments are showing record strength. READ MORE

Brian Bullock

Last year, millennials surpassed Generation X to become the largest generation in the U.S. workforce. They also may be history's most fickle generation. Two-thirds of millennials plan to leave their current organizations by 2020, according to a recent survey by Deloitte. Additionally, 44 percent said they would leave their current employers within the next two years if given the choice. So it's not surprising that businesses are adjusting everything - from office space to company culture to the way business is conducted - to cater to millennial wants and needs. Companies have recognized that attracting and retaining top talent from this burgeoning generation is no joke. READ MORE

Paul Van Deventer

In the U.S. alone, the meeting and event industry drives $280 billion in annual economic impact. To add perspective, that's more than air transportation, the motion picture industry or spectator sports. Additionally, the industry generates a massive amount of taxes, with $88 billion generated at the state, federal and local level last year; taxes that help our communities pay for services, build schools, fix roads and maintain parks. The Meetings Mean Business (MMB) Coalition—an industry advocacy group of which MPI is a part—has been conducting video interviews with top executives at major companies to find out just how important meetings and events are to their bottom line. READ MORE

Mike May

Millennials, Zika, Brexit, elections, the economy, mega-mergers…every quarter brings a newsflash du jour. Hotel professionals need a genie to tell them what to ignore and what requires their action. This article summarizes the most relevant trends affecting group meetings - along with tips from corporate meeting planners on what hotels can do to help their group customers succeed, and help you improve a hotel's group meeting business. Read about the importance of authentic local experiences, unique venues, event apps, and negotiations with buyers. READ MORE

Michael  Hudson

Most progress in human thought occurs by challenging common assumptions; sometimes at great personal peril. Galileo Galilei was placed under house arrest for the last eight years of his life for championing the heliocentric view of our solar system described by Copernicus. It was heresy to suggest that the Earth and the rest of the planets revolved around the sun. Germ Theory of Disease was ridiculed by the leading medical minds of the time. It was not until 300 years after the concept was introduced that it finally trumped the Miasma or “Bad Air” theory of sickness transmission. READ MORE

Charles de Gaspe Beaubien

According to Google Research, Generation C is a powerful new force in consumer culture. It's a category of people who care deeply about creation, curation, connection, and community. It's not an age group; it's an attitude and mindset. Brands that take the time to understand Generation C and better engage with them will find a willing and influential audience. For this new group of consumers, the internet no longer sits behind a screen - it's a way of life - engaging with technology whenever they want. Gen C wants access to goods and services from all their devices in the fewest possible clicks. READ MORE

Karyl Leigh Barnes

Meetings are out. Experiences are in. That's the message that emerges from research Development Counsellors International (DCI) conducted earlier this year, in partnership with the International Association of Conference Centers (IACC), to determine what will be required in the meeting rooms of the future. In a detailed survey of more than 150 meeting planners from five continents —including those specializing in corporate, association, and government meetings — 75 percent of respondents said their job is increasingly about “experience creation.” Before mobile phones and Wi-Fi, meeting participants had no choice but to sit down and engage with what was being presented. READ MORE

Trevor Lynn

From content consumption to meeting and function room design, millennial mindset will continue to be the primary change agent at properties. Millennial: It's a buzzword that we see in just about every article today, but there's good reason for that. By 2025 millennials will make up over 75% of the workforce, which means they're an ever growing portion of hotel guests, attendees, and the event planners you're trying to reach. Asking how to reach millennials today, is really more like asking how to connect with the dominant mindset in hospitality (and every other industry for that matter). READ MORE

Katherine M. Markham

The economy is showing signs of improvement and hotels are reporting record profits. Yet the trends that are affecting convention room blocks today as well as vexing meeting planners are rooted in the past trials of the Great Recession. ConventionPlanit.com looked to its own Advisory Council, supplier members and industry leaders for feedback on the factors that are eroding meeting and convention room blocks. There's no doubt we're in a seller's market and many say we may be headed for a 'buyer's market.' Cyclical timing is critical for hotels capitalizing during gainful times while making up for previous losses from 'buyer market' years. READ MORE

Irby Morvant, Jr.

As hotel group meeting business grows in 2016, groups are looking to hotels to offer cutting edge technology and environments that are especially conducive to collaboration, creativity and fresh perspectives. Gone are the days of professionals working alone in their rooms—across industries, people want to work in open areas, interacting and socializing seamlessly. With this in mind, Hyatt Regency San Francisco Airport, located between Silicon Valley and San Francisco, recently completed a top-to-bottom transformation to become a hub of connectivity for professionals and group meetings. The Burlingame-based property welcomes approximately 330,000 guests each year, with almost half the hotel's overnight guests visiting for meetings and events. READ MORE

John D. Robinson

Hotels and chains are looking to meet the rising demand for more bandwidth as they ramp up their hotel group meetings business. Throughout the industry, hotels are upgrading (or have recently upgraded) their Wi-Fi to serve in-room guests. Now that these properties are growing their group meetings business, they're finding that their existing bandwidth is no longer sufficient. Problems can arise when your Wi-Fi service becomes stretched too thin. This can diminish your competitive advantage and even lose business. On a broader level, it can also damage your branding because, let's face it, few things are more frustrating that attending a conference with spotty, unreliable Wi-Fi. READ MORE

Diego Lowenstein

More and more, smaller independent hotels striving for success in the group meeting business find out they're not truly on their own. Vying for this business remains highly competitive. Some strategies, however, can increase their chances to attract, impress and retain a significant amount of group meeting business. When you're responsible for a lifestyle or boutique hotel's success, go with your strengths. Be unique and distinctive, target a niche in your community, and emphasize how you offer guests a truly different and memorable experience.That's not to say it's easy. Successfully booking group sales at an independent hotel relies less on sheer volume and more on savviness READ MORE

Ken Edwards

Training is an important aspect in every hotel as it is the basis for cultivating superior guest service, maintaining costs, retaining employees and increasing profitability. While some owners and operators may question the return on investment (ROI) of training, the effects of not placing importance on consistent, ongoing staff training can be far greater over the long run. Preparing employees for situations, outlining role responsibilities and explaining how they are important in overall success can lead to happier employees, alleviate misunderstandings, skirt potential issues and result in better guest experience. That leaves more time for staying focused and creating a positive guest experience. READ MORE

David Ashen

When designing today's hospitality venues, whether they're fully outfitted resorts, boutique hotels, or beach side bungalows, hoteliers are finding ways to streamline design and simplify the guest experience. Muted colors and minimal furnishings in combination with earthy textures, expansive views of the outdoors, fresh scents and liberal doses of natural light not only foster a sense of peace but also help today's travelers set aside everyday distractions for the serenity that simplified living provides. In this article, David Ashen, partner and founder of dash design, explores how today's hoteliers are making the most of the trend to simplify. READ MORE

Paul van Meerendonk

It is commonly accepted today that revenue management is critical to the successful operation of any hotel. However, while the adoption of this strategic approach to pricing - and the advanced systems that support this - are becoming more widespread, there is still no industry standard for how to evaluate revenue management outcomes. This lack of universal criteria around how to assess revenue management can pose challenges in trying to sell the success of a program within a hotel, as well challenging how to accurately benchmark a hotel's revenue performance against its competitors. READ MORE

Daniel Wise

Hotel revenue and profit optimization solutions have come a long way since my time as a revenue manager at Best Western several years ago. During those days, I discussed frequently with my co-workers how, while there were clearly benefits to implementing an automated revenue management platform, the technology solutions available at the time were not ideal for the mid-market sector of the industry, let alone independent hoteliers without the power of a flag behind them. READ MORE

Albert Pucciarelli

In my two prior articles on alternative dispute resolution, I discussed mediation and expert resolution. In ascending order in terms of “severity” of the matter in dispute, the next alternative for resolving disputes is arbitration. By “severity”, I am referring to the either the complexity of the question to be resolved where legal interpretations, document discovery and witness testimony, even expert witness testimony, may be utilized by the parties to present their side of the dispute. In short, the matter to be arbitrated typically is not unlike matters over which parties go to court, but for reasons we will explore, arbitration may be preferable. READ MORE

Ken Hutcheson

As hoteliers, you rely on your irrigation systems to help protect the investment you've made on your property's landscape. It is critical for the overall health and appearance of your landscape that the irrigation system is properly installed, operated, and maintained. Otherwise, your system is at risk of wasting water and damaging your property. Scheduling a technician to perform routine maintenance checks can ensure early detection of a problem, increase the efficiency of your irrigation system, and conserve water. Here are three common challenges grounds managers often face with their irrigation system, and how technicians overcome them. READ MORE

Maite Velez-Couto

Effectively communicating brand messages to current and future guests remains an essential business strategy for any hotel. More and more, companies are turning to influencers to reach a broader audience and help boost sales. But not every brand or hotel has mastered the complexity of these partnerships nor are they really sure how to best measure their success. Although there are three basic elements to influencer engagement - plan, research and measure - the key is in the nuances. READ MORE

Lizz Chambers

You show up at 8am for a training workshop, dreading it all week. Right as you are about to step inside, you stop and the question pops into your mind, “Why am I here? Will this be worth my ever-so-fleeting time? And if they make me play games, I think I may be forced to commit hara-kiri.” Does this sound even remotely familiar? Games do not have to be painful or embarrassing. Some games, such as bouncing a beach ball, everyone standing on a sheet and turning it over without anyone leaving the sheet, lining up according to shoe size and everything in between have their place. We've been through them all. READ MORE

Lawrence Adams

As the Architects and the Interior Designers, ForrestPerkins transformed an iconic downtown office building into a vibrant mixed-use property featuring a 326-key Westin hotel in Downtown Dallas. The adaptive reuse of One Main Place to hotel use required paying strict attention to the historic elements of the building in order to satisfy the requirements of the National Park Service and the Texas Historic Commission for achieving federal and state Historic Tax Credits for the owners. Repurposing this important downtown building has given it new life and has contributed to the burgeoning renaissance of Downtown Dallas. READ MORE

S. Lakshmi Narasimhan

As someone who has poured money into a restaurant as an investment vehicle, the owner is looking at a good return on that investment. Restaurant profits cannot match rooms accommodation profits and in most cases tend to be between one third to one half of rooms profits. It is thus critical that the restaurant product is well thought out and harnesses resident hotel guest patronage complemented by non-residents. A well balanced buffet and a la carte offerings in the hotel restaurant will go a long way in delivering that patronage factor as well as producing that return on investment the owner is seeking. A win win situation that owners and stake holders hold dear to their hearts. READ MORE

Sam Cicero

There are various project delivery systems commonly used in today's construction renovation projects, Design-Bid-Build, Construction Management and Design-Build. It's important that an owner examines the pros and cons of each in order to determine which system works best for certain considerations such as project goals, costs to perform, timeline and risk management. In the Design-Bid-Build method, the owner engages entities such as the architect/engineer, designer and construction company separately. Since there is little if any connection between the different entities, this process requires a savvy owner who will be responsible for controlling all aspects of the design and construction process. One of the downfalls of this process, however, occurs if there are design errors for which the owner becomes at risk to the contractor. READ MORE

Charles B. Rosenberg

In July 2016, Starwood Hotels & Resorts opened a new hotel in Havana, Cuba. Once unimaginable for a U.S. hotel company, the Four Points Havana offers more than its 186 guest rooms and modern spa; it provides an authentic Cuban experience where guests can enjoy traditional Cuban cuisine in the Don Quixote restaurant, sip on the island's most popular beers, Cristal and Bucanero, in Starwood's signature bar “Best Brews,” and experience Cuba's most sought after cigars with the guidance of a cigar sommelier in the hotel's 5th Avenue Cigar Bar. As the first U.S. hotel in Cuba in nearly sixty years, the Four Points Havana signals the beginning of a new era, as previous forays into the hotel industry in Cuba did not end auspiciously for U.S. investors. READ MORE

Larry  Gillanders

Americans are increasingly concerned with their water quality. But you should be, too. You may not even know that your property could be liable for delivering lead-contaminated water to guests. But what causes high lead levels in water, anyway? What actions can you take to ensure your hotel's water is safe and healthy? How do insurance companies leave you liable? This article will help provide vital knowledge about the current lead problem and how you can make your property's water safe. READ MORE

Bonnie Knutson

This article is designed to help anyone in the hotel industry answer the challenge of hotel marketing in the 21st Century. It is built on my belief [1] that marketers have overly complicated the marketing process, [2] that marketing is dynamic, constantly evolving to meet the changing needs, wants, and expectations of people and organizations, and [3] that the reasoning behind the AMA's newly revised definition is right on target. In it, you'll read about the three legs that are necessary to support the marketing milk stool for hotels in this increasingly fragmented and competitive global environment. READ MORE

Zoe Connolly

As the summer draws to a close, and many seasonal getaways get ready to wrap their busy-season, the Back-to-School phenomenon kicks itself into high-gear. While kids will get new clothes, haircuts, shoes, notebooks and backpacks,job seekers should do the same (all right, maybe they don't need the Hello Kitty lunchbox). And just like teachers are getting their classrooms set up with new activities for their incoming class, the end of the summer is a great time for hoteliers to refocus their recruiting efforts, gearing up for their next incoming group of team members. READ MORE

Lorraine Abelow

Capturing the adventure travel market, which encompasses a wide span, is a challenge for resorts in today's competitive media environment. Adventure travel is undeniably one of the most popular trends all over the world and growing by leaps and bounds. Social media PR is a vital way to highlight your property's involvement to reap more reservations from this category. While there are many travelers that enjoy a tranquil, white beach with turquoise waters for a calming vacation, the thirst for adrenaline filled and thrilling activities you offer has tremendous promotional opportunities. Finding those influencers who have huge followings on Instagram, in particular, will attract guests to your property. READ MORE

Coming up in March 1970...