Amidst a crisis unforeseen one year ago and certainly not caused by our industry, most members of the International Association of Conference Centers (IACC) are fully in a coping mode having adjusted behavior and instituted expense controls in an exemplary manner. Looking back at 2008, we saw a year consisting of three parts; normal operations for two quarters, a transition decline during the third quarter, and a collapse of the core market for conference centers, business meetings, in the fourth quarter. Never has the conference center industry faced such a constriction in demand, even subsequent to 9/11. Prior recessions have always had a continuing core of corporate meetings, albeit with a change of meeting content from “long range planning” to “crisis management.” The media and political hysteria against corporate meetings in this cycle is truly unprecedented and unfortunate.

Our PKF Hospitality Research (PKF-HR) forecasts for the overall US lodging industry indicate a bottoming-out late this year and a progressive recovery through 2010. This will require some level of common sense returning to the meetings business as fears of retribution from “observers” dwindle. As one pundit has put it, “We talked our way into this recession and we can also talk our way out of it.”

Since the middle of last year, REVAR levels in the overall lodging industry have declined nearly 18 percent. More relevant to the Conference Center industry, revenue per occupied room, (REVPOR) levels increased 1.2 percent from 2007 to 2008 according to the 2009 edition of Trends® in the Conference Center Industry. This demonstrates the importance of the conference center business model where the package rate helps support overall revenues.

Although demand will recover gradually over the next few years, room and CMP rates are likely to lag the recovery as has happened in prior recessions. PKF-HR is forecasting that the average US hotel will suffer a 16 percent decline in total revenue during 2009. While conference centers are also projected to experience a decrease in revenue, the magnitude of the decline should be less than 16 percent average for the overall lodging industry. Accordingly, control of expenses during this period, along with improved revenue management techniques, will be critical to success during this period.

Dave Arnold is C.E.O. East of PKF Consulting and is located in the firm’s Philadelphia office. He also serves as an industry advisor to the I.A.C.C. Board of Directors. To purchase a copy of 2009 Trends® in the Conference Center Industry report, please visit .