Marriott Reveals Positive Trends for Meetings Business

May 11, 2015

Marriott’s Convention & Resort Network (CRN), an integrated network of more than 60 JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels and Gaylord Hotels, conducted a survey last month that revealed three positive trends for large meetings at Network hotels: group demand, pickup and spend are all up for 2015 and beyond. Large meetings were defined in this survey as 50 percent of the largest group (peak rooms) a hotel would extend one client/group

Group demand is reaching an all-time high. Overwhelmingly, corporate and incentive meeting leads are increasing. Seventy-eight percent of Network hotels are seeing an increase in corporate leads, 90 percent of those coming from U.S. mainland resorts. And 71 percent of offshore resorts are seeing an increase in incentive groups and 50 percent of U.S. resorts are experiencing an increase in leads for incentive business.

Mike Wainwright, vice president sales strategy, Convention & Resort Network, stated, “We are encouraged to see these trends as they underscore what is happening across our industry as a whole. Demand is exceeding prerecession levels, which we see as increased confidence in the economy and an investment that companies are making in their employees.”

Stability for large group bookings and meeting attendance is strong. Forty-seven percent of Marriott CRN hotels reported a decrease in cancellations versus two years ago, and 65 percent of hotels said the majority of large groups are achieving or exceeding their room blocks. In fact, 60 percent of U.S. resorts in the Network are experiencing groups picking up more than their original blocks. Attendance retention by large groups also is on the rise with about half of CRN hotels reporting an increase in meeting attendees.

“We are experiencing our strongest group pickup across our Network resorts. Attendees enjoy the opportunity to be very productive in meetings while recharging or discovering more about the destination with short pre- and post-stays. Resorts as a powerful option for meetings are back,” said Wainwright.

As evidenced by responses from all 60 CRN hotels, spend has significantly increased over the last two years: 78 percent of Marriott CRN hotels report spend is up in 2015, and 90 percent within that are US resorts. Marriott CRN properties are also reporting that groups are upgrading their events. Sixty-nine percent note increases in spend on food and 63 percent report increase spend on beverages.

“What this tells us is that confidence within the groups and the meeting business is strong. With increased demand and attendance as well as companies upgrading their events, the lodging and meetings industry is experiencing a surge that is projected to continue for many years,” stated Wainwright.

Planners are encouraged to book large groups now to secure desired dates as large meetings are booking further out. Forty-one percent of CRN hotels said that groups with 300 or more rooms are booking further out than just two years ago. For hotels and resorts with 600+ rooms, more than 30 percent report large groups are most commonly booking into 2017 and more than 20 percent report the majority of large groups are booking into 2018.

“We are now seeing an increase of large groups booking in 2017, 2018 and beyond, with many of the Marriott Convention and Resort Network hotels confirming groups in 2024 and 2025. This is compared to mid-size groups on average of 100–250 rooms that are more frequently booking in 2016. Planners are changing their strategies and now are looking much further ahead in order to secure desired dates, locations and patterns,” stated Wainwright.

Additional findings throughout the survey include information about meeting programming:

Nearly 80 percent of CRN Hotels report planners are upgrading event programs with unique destination experiences, followed by 75 percent of hotels reporting an upgrade in staging and AV; and 69 percent of hotels reporting an upgrade in food.
When asked about Millennial/Gen Y meeting attendees, hotels report that planners are modifying the following in their programs: 96 percent technology; 82 percent F&B; 73 percent activities; 55 percent meeting set-up.