It’s an exciting time for the meetings and conference industries. It will also be daunting if you’re not on top of the competitive arena. The following article outlines the most significant trends and opportunities projected by myself and my team at ARAMARK Harrison Lodging, a leading provider of professional services to 50 conference and corporate training centers, specialty hotels, national and state parks, resorts and other tourist destinations throughout the United States.

The meetings and conference industry will continue to boom
w e’re seeing significant, sustainable growth in the meetings and conference industries. A study conducted by PhoCusWright, and commissioned in part by ARAMARK Harrison Lodging, reports that group and meetings revenues will develop into a $175-billion industry by 2008 – up from $164.1 billion in 2007.  

Bookings are now being scheduled more than two to four months in advance, instead of the average one or two months. This can be attributed to a rebounding economy and strengthening meetings market. A survey conducted by the Wall Street Journal querying 60 economists supports this, forecasting that the U.S. economy is poised for rebound in 2007.

The leisure meetings industry represents the best potential for revenue growth
The social/leisure group travel business will represent the most significant opportunities. The PhoCusWright study backs this, reporting that the leisure meetings segment, representing a $47.2 billion market in 2006, is projected to reach $51.3 billion by 2008.

To capture this business, conference centers and hotels need to be strategic and creative in how they market to this sector.

Competition is going to be as fierce as ever
While the hotel business is still strong, the market will cool down from 2006. Hotels will look to the meeting business to keep profits climbing.

More than ever, online third-party booking agents are going to draw from revenues that traditionally would go to conference centers and hotels. Brick and mortar suppliers will need to streamline business processes and leverage the online bookings trend and the Internet, or face revenue loss to competitors and/or new entrants.

Conference centers may also need to consider joining forces with online entities. Forefront leaders like AHL may consider taking a “hybrid approach” working with online booking agents and/or companies to garner additional revenue, while continuing to work the traditional way to provide top-quality customer service.

The good news for the industry is that more meeting planners are choosing to work directly with venues that offer one point of contact that caters to all of their individual needs. They are seeking out more personalized service at conference facilities that are modern and offer scrumptious dining, excellent customer service and nearby attractions to make their experience more enjoyable and productive.

Business travel and meeting expenses will continue to rise
The American Express Global Business Travel Forecast reports that the cost of business travel will increase in 2007. The average domestic North America trip inclusive of air fare, car rental and hotel stay is expected to increase by 4.5 percent, while the cost of an average international trip will rise 4.6 percent.

Meeting budgets will increase as a result
Another industry report reveals that the United States and Asia will be the top destinations for European meetings in 2007. This will increase competition and fuel the rising costs of meetings due to high passenger traffic, lack of hotel room availability and expensive room rates.

Training is also in demand, with Asian companies hiring more individuals from the U.S. and the proliferation of Generation X and Y into the workforce. Additionally, with a larger number of baby boomers set to retire and a younger generation moving into the management ranks, there is a need for more succession planning and new employee training.

The current landscape has procured opportunity for conference centers to expand their client base and target audiences.

Technology will lead the charge this year
Conference centers will need to offer state-of-the-art meeting technologies. The AHL-managed Babson Executive Conference Center is one such center that offers advanced technology, including simultaneous translation services and video conferencing abilities.

New, technologically-savvy market entrants are upgrading technology to educate the consumer and promote online bookings. To remain competitive, conference centers are going to have to centralize and enhance offerings and resources.

We recommend that meeting planners utilize International Association of Conference Centers’ (IACC) Certified Centers. IACC, a not-for-profit, facilities-based organization geared to assist members in providing the most productive meeting facilities worldwide, utilizes a certification program for member conference centers. It mandates that its active members comply with 30 stringent standards of the universal criteria.

IACC-certified conference centers are required to include amenities such as ergonomically designed chairs and tables that are non-reflective. They provide at least 30 inches of space per occupant, a controllable level of lighting and a dedicated conference planner. IACC certified conference centers are required to have dedicated conference rooms that are separate from living and leisure areas and available to clients on a 24-hour basis for storage of materials.

For more information on the PhoCusWright Study or to locating an IACC Certified Conference Center, log on to www.aramarkharrisonlodging.com.

About the author:
Jeff Weggeman, vice president of sales and marketing for ARAMARK Harrison Lodging (AHL), a leading provider of professional services at conference centers within the U.S., is has been involved in the hospitality industry for more than 25 years. He has held a variety of positions in the industry, from operations to general management. Jeff has extensive background in setting corporate strategy for direct sales and marketing, as well as Web site initiatives for large hospitality organizations like AHL.

Currently, Jeff sits on the board of directors and is the marketing co-chair for the International Association of Conference Centers (IACC), a not-for-profit, facilities-based organization whose mission is to assist members in providing the most productive meeting facilities around the world. Jeff is also a board member of Hotel Executive and a member of Meetings Professional International, Hospitality Sales and Marketing Association International, and the Hotel Electronic Distribution Network Association.