Quarterly forward-looking report informs hoteliers of key market trends to help drive group business growth within the industry
In the latest Cvent Group Business Outlook, a 24-month forward-looking report highlighting United States group booking activity through the Cvent Supplier Network, data shows U.S. hotels may face a more difficult group business environment. Looking out into time, group booking pace is down across all eight quarters year-over-year.
“While we saw a significant increase in awarded request for proposal (RFP) activity at the end of 2018, the increase in activity was likely impacted by the desire to finalize group contracts before commission policy changes made by a number of large hotel chains went into effect this year,” said Jeffrey Emenecker, Senior Director of Analytics at Cvent. “As we look at the next two years, our sourcing data shows an overall decline in group occupancy in the U.S. market. While the downturn shown in our group business data may be attributed to external factors outside of a hotelier’s control, such as current geopolitical events, these unique insights allow hospitality professionals to find more proactive ways to attract group business and stay ahead of market trends.”
Key Highlights from the Q1 2019 Group Business Outlook:
- Overall, the 24-month view highlights a challenging market. Group business demand is relatively flat while supply is increasing, making it a hypercompetitive market, which will require hoteliers to reassess their group strategy and work harder to attract and win group business.
- Awarded request for proposal (RFP) activity decreased in Q1. This downturn was expected as event professionals navigate the new commission policy changes that went into effect this year.
- The average size of group room block, and peak room nights are both up significantly (4 percent). This is somewhat counter to the general downturn that our Group Business Outlook shows.
Click here for the full report.
About the Cvent Group Business Outlook
The Cvent Group Business Outlook is a 24-month forward-looking report highlighting United States group booking activity through the Cvent Supplier Network, the world’s largest venue sourcing database with 255,000 venues globally through which more than $16 billion dollars of group business is sourced annually. The proprietary data within the Group Business Outlook is intended to inform hoteliers of key market trends and support continued group business growth within the industry.