Booking Inside the Block, Part 1

A recent survey of 2010 Meeting Trends by Meetings Media paints a bleak picture of the U.S. hotel industry in 2009. In a webinar reporting the results of the survey, industry analysts reported that:

• Overall hotel room supply increased by 3.2%, while demand decreased by 6.6%. This is a gap of nearly 10 percent between supply and demand, which results in lower prices.
• Occupancy decreased 9.5%
• Overall hotel rates fell by 9.0%, and hotel room revenue plummeted by 15.0%

These rates are aggregated for the U.S. hotel industry; some sectors of the market – particularly luxury and upper upscale – have been hit harder than lower-end products. So it’s no surprise that hotels are trying to win back customers by charging lower rates.

All of this turmoil means that there are excellent bargains out there for meeting planners who are booking future meetings. But one of the biggest challenges for 2010 will be minimizing attrition as attendees snatch up less expensive rooms on the internet. One of the questions that meeting managers dread is this: “I found a cheaper room on the internet. Why shouldn’t I book that one instead of the more expensive conference rate?”

In a time when bargains abound, its important to be forthright with attendees and let them know that booking outside the block hurts your organization. You work hard to provide a valuable educational and networking experience for them, and if they want to continue to benefit from the conference they need to hold up their end of the bargain.

Check back later this week for a sample statement you can include in your conference materials to encourage delegates to book within the block.