BOOKING WINDOWS REMAIN SHORT TERM OVERALL WITH A LARGE PERCENTAGE OF BOOKINGS WITHIN 90 DAYS OR LESS
– MARK SERGOT , SVP OF GLOBAL SALES ORGANIZATION , IHG HOTELS & RESORTS
negative national press over entities including protests , homelessness and unconcealed drug use that gave these cities a black eye .
However , said Hise , San Francisco received good reviews after hosting Dreamforce , an annual global event organized by Salesforce , and APEC , an electronics-focused conference , last fall , which will hopefully go far to help change perceptions .
Group business travel has come “ roaring back ” because of pent-up demand and a strong economy , said Frank Passanante , SVP and global head of sales for Hilton . As noted on an earnings call by Hilton President and CEO Chris Nassetta , group business volume in the fourth quarter of 2023 exceeded 2019 peak levels with a strong outlook for 2024 .
Brian Gilligan , SVP of sales and distribution , U . S . & Canada , for Marriott International , said fourth-quarter 2023 group revenue rose 7 % over 2022 in his region and is expected to continue to be a meaningful driver of revenue growth going forward . “ We ’ re very pleased that as of the end of last year , 2024 group revenues were pacing up nearly 11 % year over year ,” he said .
Meanwhile , group travel came back “ fast and furious ” after the pandemic , said Brian Macaluso , VP of global sales for Sonesta International Hotels . From a sales lens , he said , current group demand has surpassed peak levels overall , although specific markets still affect overall growth more than others .
At Hyatt , according to Asad Ahmed , SVP of Americas , commercial services , 2024 is poised to be another strong year for group and meeting business . He said that fourthquarter 2023 group room revenue was up 11 % versus the same period in 2022 and accelerated during the quarter . “ We expect commercial travel to drive growth in 2024 , as leisure travel remains at elevated levels ,” he said .
Mark Sergot , SVP of global sales organization at IHG Hotels & Resorts , said the company continues to see an upward trend in meeting and event bookings that exceed 2019 figures . Though IHG expects this to moderate from the surge in 2022 and 2023 , overall meeting and event bookings , he said , will remain above 2019 record levels .
Booking windows remain short term overall with a large percentage of bookings within 90 days or less , said Sergot . Normalized booking patterns ranging from six months to one year out , he said , are becoming more apparent as shortterm availability becomes challenging and economic uncertainty wanes .
Preferred Hotels & Resorts , which represents hundreds of independent hotels globally , saw a record year in group revenue growth and leads in 2023 , actually surpassing pre-pandemic levels , according to Cheryl Williams , who is chief revenue officer . She said they continue to realize
rapid growth in leads and conversions around the world . The pace for leads and bookings continues to grow , she said , but not at the same pace as the last two years , as average daily rates normalize and airfares rise .
SHIFTING PATTERNS The numbers don ’ t tell the whole story . Some patterns around group business have shifted since the pandemic due to trends including hybrid work and workforces spread geographically , said CoStar ’ s Hise , who added that there will be a continued need to meet in person at small- to medium-sized team meetings or more incentive for companies to send additional representatives to larger conferences and conventions with plans for offsite team collaboration .
Looking at the overall proportion of the business mix , said Marriott ’ s Gilligan , it is leisure and business transient that have swapped as far as driving business ,
THERE WILL BE A CONTINUED NEED TO MEET IN PERSON AT SMALL- TO MEDIUM-SIZED TEAM MEETINGS
– EMMY HISE , SENIOR DIRECTOR OF HOSPITALITY ANALYTICS , COSTAR GROUP
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