New Report On Groups & Meetings Industry Performance And Online Behavior Projects Strong Growth

MCLEAN, VA | A groundbreaking study that reveals the enormity of the groups and meetings market, online behavior, trends and opportunities, has just been released by the Hospitality Sales & Marketing Association International (HSMAI) Foundation and PhoCusWright Inc.

PhoCusWright Inc.’s “Groups and Meetings: Market Opportunity Redefined” puts the groups and meetings market into context by taking into account where the industry has been and where it is headed. The study provides strategies and pragmatic tips to help companies determine how best to plan for the future.

The first-ever in-depth study of its kind reveals that by 2008, the market is expected to grow to a staggering $175 billion (versus $164 billion in 2006), and 41% of all groups and meetings travel revenue will be booked online.

Providing a 360-degree view of this complex market, the report delivers facts, figures and forecasts regarding market size, future technologies, growth trends, key players, new market entrants and purchase influencers.

“What is among the most fascinating findings is the significant amount of growth projected in the ‘small leisure group’ side of the business, and that nearly half of it is projected to be online within just three years,” said Robert A. Gilbert, CHME, CHA, president and CEO of HSMAI.

The report says that while information technology (IT) adoption in the groups and meetings arena tends to lag behind other travel industry sectors, it is about to change, and as a result, that space will quickly become one of the industry’s next major competitive battlegrounds.

The report suggests that, “Given the tipping point this market is reaching, companies must be both proactive and agile and work aggressively to automate the entire distribution network and supply chain supporting groups and meetings or else risk ceding control of this space to competitors and/or new entrants.”

Among the key findings are:

• The small, social/leisure gathering (under nine rooms) represents one of the most significant market opportunities within the groups and meetings arena. This segment, which has fallen outside of the traditional “group” definition, includes family reunions, weddings and religious groups. In the 2005-2008 period, the total travel market for small leisure groups will grow at nearly twice the rate of larger group travel (10+ rooms).
  
  
• Smaller corporate meetings will represent another major opportunity. In 2005, two-thirds of all corporate meetings were for less than 50 attendees. This trend is expected to continue. While the total market for corporate meetings will be relatively flat, corporate meetings with fewer than 25 attendees are projected to grow an impressive 13% in 2007.
  
  
• Becoming keenly aware of the need to reduce and consolidate travel, entertainment, and meeting-related costs, corporations are turning to technology tools, their internal procurement groups, and travel management companies (TMCs) to assist them in tracking and controlling travel, leveraging purchasing volumes for better negotiated rates, and maintaining compliance with corporate travel policies.

The report also details the strategies and guidelines companies should follow to ensure that their services and technology offerings meet the needs of each sub-segment of the groups and meetings marketplace. Among them are:

• Suppliers need to break out of their traditional mindsets to become more competitive in a flat growth market. This study reveals a number of gaps between supplier perceptions and consumer/planner expectations in terms of needs and capabilities sought. These must be rectified to maintain relevance, or the doors will be left open for opportunistic companies to enter the arena and capitalize on these gaps.
  
  
• Suppliers must simplify and streamline business processes to make them more efficient and conducive to moving to online channels having lower overhead.
  
  
• Companies must improve their systems and reporting capabilities to track each sub-segment, particularly small groups under 10, which presently get lumped with transient or leisure business.

The results were based on research conducted by PhoCusWright during the latter part of 2006 within the U.S. Research goals were to size the overall groups and meetings market, to determine what portion would be driven by electronic commerce, and to establish an initial baseline for future tracking and monitoring.

The report is priced at $250 for HSMAI members and $300 for non-members; quantity discounts are available on orders of 25 or more reports. To order, go to . For bulk ordering information, contact Bruce Rosard at PhoCusWright at (860) 350-4084 x375 or [email protected]. To download a copy of the executive summary, go to .

HSMAI | HSMAI is an organization of sales and marketing professionals representing all segments of the hospitality industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry, and bringing together customers and members at annual events, including HSMAI’s Affordable Meetings®. Founded in 1927, HSMAI is an individual membership organization comprising more than 7,000 members worldwide, with 40 chapters in the Americas Region.

For more information on HSMAI, contact the Hospitality Sales & Marketing Association International, 8201 Greensboro Drive, Suite 300, McLean, VA 22102, phone (703) 610-9024; fax (703) 610-9005, or visit the web site at .

PhoCusWright | PhoCusWright facilitates positive decision-making through consumer, business and competitive travel, tourism and hospitality intelligence, complemented with high-profile conferences. Companies across all facets of the industry’s value chain gain competitive advantage from consulting services and both client-driven and syndicated research.

PhoCusWright expertise provides deep insights and efficient guidance to optimize strategy development and avoid costly errors.

Since its founding in 1994, PhoCusWright’s mission has been unswerving: to stimulate competitive advantage through intense, unambiguous and filtered analysis of complex data in a complex market. In 2005, PhoCusWright took the lead in coining “Travel 2.0,” reinforcing our commitment to help organizations improve positioning and exploit a vast array of next-generation travel industry applications. PhoCusWright is immersed in the intricacies encompassing this powerful transformation and is passionate to unlock great potential for its clients. For more information visit PhoCusWright at www.phocuswright.com.

Related Document