For the third year in a row, small meetings focused venues are experiencing improved occupancy and rates, reports the International Association of Conference Centres (IACC) in its just-released 2015 edition of “Trends® in the Conference Center Industry.”
According to Mark Cooper, IACC’s CEO, corporate meeting venues are leading the recovery with the highest Average Daily Rate (ADR) and Revenue per Occupied Room (RevPOR). “Given the package plan represents 90 per cent of this group of IACC members’ business, it can be assumed that corporate customers are investing significantly in training and meetings and in their use of member venues.”
Founded in 1981, the IACC is a not-for-profit association representing a membership of 400 small meeting venues that meet its stringent quality standards and agree to a code of ethics. Members include venues from the United States, Canada, Australia, Japan, China, Kenya, Nigeria, Denmark, Sweden, Belgium, France, Switzerland, Italy, Spain, England, Scotland, Ukraine, The Netherlands, Germany, Hungary and the Philippines.
Other key findings released in the report include:
- a significant rise in the average external day meeting rate to $105 USD
- all venue types are predicting positive occupancy growth, with corporate venues forecasting the greatest improvements by year-end.
- conference centres with more than 200 guest rooms projecting a +6.5 per cent in annual occupancy over 2014
- resort meeting venues achieved the greatest increase in Complete Meeting Package (CMP) rates, showing a 2.6 per cent increase over the previous year
- executive conference venues forecasted a 5.9 per cent increae in conference package rates in 2015 and resort
- day meeting rates reported a 12 per cent increase in package rates (including accommodation, technology and f&b)
“It is encouraging to see another year of improved performance and we are seeing clear signs that ths important sector of the meetings industry is being invested in by member customers,” said Cooper. “We are also seeing a greater number of our members attending learning events and conferences, as they invest in education and innovation, which will result in a skill-enhanced workforce to prepare for increased demand within the small meetings segment in the coming year.”
Trends in the Conference Center Industry is compiled by PKF Consulting / CBRE Hotels on behalf of IACC.