Published on : Monday, August 12, 2019
The latest Cvent Group Business Outlook report shows that U.S. hotels will continue to face a challenging group business market. The report is a 24-month, forward-looking report highlighting United States group booking activity through the Cvent Supplier Network.
As per Jeffrey Emenecker, senior director of analytics, Cvent, while group booking pace has picked up slightly compared to last quarter’s report, the overall 24-month view is still fairly weak. Supply continues to increase, but booking pace is not keeping up, which means a drop in group occupancy across the board. The sourcing data shows a relatively flat awarded group rooms pace and a slight downturn in awarded RFP activity within the U.S. market.
Overall awarded RFP activity in Q2 is below average and down from Q1. In last quarter’s report, Cvent attributed the Q1 slowdown in part to the commission policy changes that went into effect this year and pulled greater award activity forward into Q4 2018. This quarter’s results could be influenced by the after-effects of this Q4 2018 push but could signal more general softness in the market.
The 24-month view offers some improvement compared to last quarter’s report, but the group business demand trend is still relatively flat. As supply continues to increase around the world, hoteliers will need to work harder to attract and win group business.
Tags: cvent, group booking slowdown, US hotels
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