CWT Sees Growth For Meetings, Warns Of Buyer Challenges
Despite higher hotel prices, CWT is predicting “positive growth”
for the meetings and events industry in 2016, but the global TMC says there
will be challenges for meetings buyers.
“We anticipate tighter hotel cancellation policies, growing food and beverage
costs and an increased focus on compliance - particularly for our
pharmaceutical clients,” said David Moran, Executive Vice President for CWT
Meetings & Events, as the company released its 2016 Meetings and Events
“Many companies will try to harness their combined spend as they
look for ways to cut costs and improve program efficiency and control.”
The report says the biggest increases in hotel rates were likely to be in North
America where they are set to rise by as much as 4.3% in 2016. The TMC is also predicting a 3.7% hike in prices in the Latin
American and Caribbean markets.
in North America, both transient and group, continues to grow at a rate that exceeds
new supply, and the result is a seller’s market causing challenges for meeting
owners,” the report stated.
But smaller increases are expected in Europe – particularly in the western part
of the continent where rates are set to rise by only 0.7%. Eastern European
hotel rates are predicted to go up by 2%. Elsewhere, hotel prices in Asia are
likely to increase by 3% while rates in the Middle East and Africa are forecast
to rise by 1%.
This year’s report also advises meeting organizers to plan ahead and be
aware that some hotels in high-demand markets no longer hold space when
responding to availability requests. CWT advises to be sure internal decision
makers are aware of this and to decide if they can be flexible on dates.
Also, lead for registration and venue contracts continues to
shrink which can work in the planner’s favour if they are able to increase lead
time for larger events thereby also increasing their negotiating power.