ConventionSouth

OCT 2018

ConventionSouth magazine is the leading resource for meeting planners who book all types of events, conventions, conferences and group travel in the south.

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²ConventionSouth ² O C T O B E R 2 0 1 8 w w w . c o n v e n t i o n s o u t h . c o m 14 ANNUAL STATE OF THE INDUSTRY REPORT Hotel Room Nights In 2018, my meetings/my organization's meetings resulted in... 30% 25% 20% 15% 10% 5% 0% Percentage of Meeting Planners More than 1,000 501-1,000 201-500 100-200 Fewer than 100 14% 24% 21% 17% 24% 0% 10% 20% 30% 40% 50% Percentage of Meeting Planners Local Area Statewide Regional Area National Worldwide Origination From where do your attendees typically originate? 24% 48% 7% 17% 4% Current and Future Challenges Even though the current meetings climate is strong and the outlook for the coming year is optimistic, many planners who responded to the 2018 survey cited budgetary issues as their ELJJHVWFKDOOHQJH)RUW\¿YH percent said they are most challenged by trying to provide attendees with a great meeting while sticking to their budget, 7 percent said it is challenging WR¿QGVXSSOLHUVWKDWZLOOZRUN with their budget and another 7 percent said they have found it challenging to negotiate con- tracts during 2018. Additionally, 28 percent of respondents said they are challenged by the need to increase attendance at their events. These challenges may become more acute in the near IXWXUH:KLOHVRPH¿QDQFLDO forecasters expect the cur- rent economic growth rate to continue through 2019 and into 2020, others, including the Economic and Strategic Research Group, predict that growth will fall back to 2.3 percent in 2019 and there are those who are warning of another poten- tial recession starting in 2020. One factor to consider is that the current U.S. economic upswing, which began in mid-2009, marks one of the longest sustained recoveries in the nation's history and traditional economic cycles indicate a slowdown is likely. Addi- tionally, Americans currently have a very low rate of savings compared to record amounts RIKRXVHKROGPRUWJDJHDQGUH¿QDQFHGHEWDW a time when rising interest rates are predicted to slow consumption and investment growth in 2019, according to the latest U.S. economic data from Capital Economics, an independent economic research company. 6SHFL¿FWRWKHPHHWLQJVLQGXVWU\KRWHOSULFHV and airfare, the two costs that have the most impact, are on the rise. According to Statista, a provider of market and consumer data, the monthly average daily rate of hotels in the U.S. has increased annually for the last seven years. Other studies predict prices will continue to JRKLJKHUQH[W\HDU7KH¿IWKDQQXDO Global Travel Forecast, published by the Global Busi- ness Travel Association (GBTA) and Carlson Wagonlit Travel (CWT), predicts that travel prices will rise sharply in 2019, with hotel prices going up 3.7 percent. Size of Destination Most of the meetings I plan are held within... 55% First-tier Destinations 35% Second-tier Destinations 10% Third-tier Destinations

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