Top 25 Meeting Markets Experiencing Uneven Recovery
A report from the Knowland Group released this week showed that once the fear of the Omicron variant of Covid-19 subsided in February, pent-up demand for in-person business events was unleashed. By March, business meetings will be in most of the top 25 meeting markets in the Middle East The country has exceeded expectationsApril is also on pace to exceed expectations made recently in early February.
Furthermore, Knowland forecasts of meeting business in the largest markets finds that Phoenix and Tampa will regain the volume of their entire 2019 events this year.
On the other hand, 16 of the top 25 markets will recover less than 80% by the end of the year, while Chicago, Detroit and Oahu will have less than 50% return to their 2019 event numbers.
Another recent report, this one from Deloitte, indicates that there are both good and bad signs for collective business travel moving forward. “Throughout the remainder of 2022, corporate travel should grow exponentially from its now small base. Team meetings that have been postponed several times will eventually take place. More conferences will shift from online to in-person, and conferences that have already done so are likely to see An improvement in attendance. Even international flights should grow significantly, although some areas will recover faster than others.”
One of the factors affecting demand and prices in the most important meeting markets in the United States is the strength of transit business travel. For this segment, Deloitte found that “spend is expected to reach 36 percent of 2019 levels by mid-year, and 55 percent by the end of 2022. Business travel takes at least two years to reach pre-pandemic spending levels, such as Some travel use cases are expected to spur fewer trips in the long term.”
And there’s another wrinkle: “[The issue of] Sustainability will drive corporate travel spending in the future. Three out of 10 companies expect sustainability to reduce travel budgets by between 11 and 25 percent by 2025.”
for cities like New York, San Francisco, Chicago, Los Angeles, and BostonAll losers will account for more than 70 percent of their business travel revenue in 2021 compared to 2019, according to a report from the American Hotel & Lodging Association. Deloitte’s forecast is unwelcome.
But for meeting planners, lackluster demand for business trips may provide opportunities to secure space, dates, and prices for their groups in 2022 against pre-pandemic demand and cost scenarios in those cities.