Luxury Sector Makes a Comeback
Apr 06
News, Places to Stay economy, Face to Face Meetings, Five Star, meeting industry 1 Comment
Last week I read an interesting article by David Wilkening of TravelMole. I’ve including some of the key points of the article for those who would prefer not to subscribe.
The AIG effect, which caused many luxury hotels to be hit financially with millions of dollars in cancellations, seems to have released its hold on the industry.
Smith Travel Research predicts in 2010, top tier hotels will be the most successful. In fact, STR reports that the luxury sector has experienced an 8% growth over the past few months.
The article quotes Greg Champion, CEO of Benchmark Hospitality:
“Everyone talks about the AIG effect, but there are a lot of planners out there who say ‘If I can stay at a five-star for the same price as a three-or-four star, why wouldn’t I do that?”
In 2009, many of the planners using ConventionPlanit.com told us they could not consider luxury properties for their meetings. In the past few months, we’ve seen a renewed interest in higher-end properties.
These brands have also been offering meeting planners extra amenities, discounts, and meeting space at no charge to secure their business. (Check out the Divine Deal section of CP for current offerings).
While many meetings were cancelled or postponed last year, things seem to be looking up. The mantra for 2010 seems to be meetings will be held – with a solid value and purpose.
Have you experienced this trend in your own planning? Where are you holding your meetings and why?
Luxury hoteliers – has your meetings business increased? What do you attribute it to?
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