• Hotel Growth - property inventory expanded last year, as developers responded from the growing demand from tourists and businesses.
• M&E Technology - The Cvent merger with Lanyon Solutions will create a near-monopoly, as the new entity will own over 80% of the online event management space. 
• Hotel Mergers - There were several mergers, led by the Westchester-based Starwood's merger with Marriot, along with others. 
• The Zika Virus - Planners were dissuaded from choosing venues where the disease threatened their communities, most notably the gulf coast. 
• Politics and the Economy - The surprising outcome of the election will likely result in a shift towards more conservative policies and a focus on growth, and as the new President comes from the hospitality industry, it should be an interesting year in many ways. Stay tuned!

1. Hotel Rates Projected to Hold Steady or Decrease- As developers continue to build out new hotels, rates should hold steady or decrease slightly in certain markets in the coming year. Meeting planners should be in a better position to negotiate favorable terms, according to STR and Tourism Economics most recent forecast released at the NYU International Hospitality Industry Investment Conference. 

Hotel Outlook 2017

Supply: +1.9%

Demand: +1.9%

Occupancy: 0.0%

ADR: +3.8%

RevPAR: +3.8%

Source: STR/Tourism Economics

In New York City, inventory is projected to grow by more than 12% in 2017, according to CoStar, and other major metro areas are also expanding. As developers continue building new hotel projects to meet the demand, some new venues will add more interesting options.

2. Technology Developments - From enhanced virtual reality to new audience engagement software, technology will play a more prominent role in developing effective meeting strategies in the year to come. 

Corbin Ball and Co. reviewed major event technology developments we can expect to see more of in their  2017 Future Meeting Tech Trends.  Key areas to watch include:

Social Media- many of the major media channels will focus on video and live streaming, including Meerkat , Periscope , Facebook Live , Instagram Story , Snapchat Story and a new video platform from LinkedIn.  

 

Data Analytics- As the clouds expand, big data tools are opening a new world of predictive analytics that can have huge impacts on events, and improved ROI measurement tools, including etouches Integrated Event ROI Tool .

Marketing Automation- New unified marketing programs from  Vista Equity Partners  (owners of Lanyon and Cvent) and their acquisition of marketing automation firm  Marketo  will join to offer integrated live event data with customer profiles, a major step forward for combining data flow to enhance CRM. 

Workforce Training- A recent MPI study indicated that 33% of M&E planners will engage in collaborative, interactive, online learning this year.

3. Marketing- Smart Hotelier's 2017 Top 10 Digital Marketing Resolutions featured a number of significant trends and developments to watch for this year, as hoteliers will push to increase bookings on their websites, from loyalty member-only rates, special incentives and creative packages.

 

One of the most compelling trends to watch for event planners is hotel property management's reactions to Airbnb, as they compete by promoting features and amenities including digital marketing campaigns, guest services, 24/7 security; ADA compliance; baggage storage, room service, concierge, luxuries, and dedicated employees and loyalty Programs supported by a robust CRM Program.

4. "Mixed Reality" Events - EventManagerBlog.com's 10 EVENT TRENDS FOR 2017  highlighted offerings from  VirtuallyLive.com and Evenium , to respond to the demand for more truly immersive experiences for attendees outside of a live meeting or event.  Drones   are becoming more mainstream, with live streaming on social channels.

6. Meetings & Events Budget Growth  

 

According to the MPI 2016 Winter Forecast and survey of M&E planners:  

• 55% predict a favorable budget/spend
• 48% expect the costs of meetings to rise, largely from a growing demand for security.
• 35% believe room rates will increase by 6% or more

• F&B/Catering + 4.6%
• Audiovisual +3.6%
• Air Travel +4.2%
• Room Rates +4.5%
• Meeting Space +3.3%

7. Travel Costs to Head Lower  

 

With oil prices recovering, ground travel costs are expected to increase. Airline prices are projected to increase 2.5%, according to the 2017 GBTA Global Travel Price Outlook, while fares may actually fall below 2015 levels in some markets.

U.S. business air travel volume is predicted to reach 502.8 million person-trips in 2016, according to Travel Industry Wire, and will continue to grow. Car rental prices should also decrease, despite management concerns about safety and security in the new "sharing economy" (driven by Uber and Lyft).

We hope you found this information to be helpful as you move forward with your plans for meetings and events this year. Are you interested in improving your results? If so, give us a call at HRG (914) 761-7111 or email  walter@hrginc.net   for information about our free HRG Event Solutions event audit.