 Conference Care, the venue-finding and booking agency, has published the results of its study into the conference and event industry during the last quarter of 2007, from October to December. The analysis – which focuses on trends in delegate rates, lead times from initial enquiries, and individual industry sectors – reflects a degree of corporate belt-tightening, as conference organisers increasingly replace residential conferences with less expensive one-day events.
Delegate day rates (DDRs) appear to be holding up well, with most city-based venues charging marginally higher rates than they did during the same quarter in 2006. However, 24-hour rates for longer events in the provinces are struggling as event bookers look to make economies to counter the effects of a recession, favouring single-day events over residential conferences. Across the entire UK, the average DDR was £50.66 in 2007, compared with £45.84 in 2006 – an increase of 10.51 per cent.
City destinations
Of all the UK’s city destinations, London still commands a premium DDR compared to the rest of the country, averaging at more than £65. Demand for the capital remains high amid limited availability, forcing rates upwards as demand outstrips supply. Accordingly, accommodation rates in the capital have remained consecutively strong for the last two years. Return on investment appears to be top of the list of priorities among London’s hoteliers, as they seek to recoup money spent on developing their properties.
In Birmingham, 24-hour rates saw a decrease in 2007, the effect of fewer event bookings and Birmingham’s saturated hotel market. As a result, many conference organisers took advantage of hotels and their tactical rate offerings. Single-day rates held up well, but again there has been a switch to non-residential events as corporates look to reduce expenditure.
Manchester saw a decrease of 24-hour rates by 6.38 per cent, which can be put down to a lack of demand for residential events coupled with procurement departments tightening their belts. A number of new openings in Manchester have meanwhile provided an increase in quality venues, adding to the city’s bed stock. Concurrent with the rest of the UK, Manchester’s DDRs have increased as a result in the switch from residential to single-day events.
In contrast, Glasgow is rapidly establishing itself as a highly popular conference and congress destination and demand for the city is growing, fuelling rate increases. Regeneration of the city – and its positioning as a premium meeting and event destination – have made it much more desirable to a global audience.
Twenty-four-hour rates in Bristol have dropped significantly, again due to procurement departments looking at reducing expenditure, as well as a reduced demand in the city for residential events. However, Bristol’s accommodation rates have increased with demand, as many head offices have relocated to the city. With this rise, the transient accommodation markets remain strong.
In Leeds, the large number of budget-style hotels on the periphery of the city has affected accommodation rates, as travellers opt for these properties in order to avoid city-centre congestion. Day delegates rates have increased by 2.11 per cent as the inner-city hotels attract larger conferences and meetings.
Lead times
An analysis of lead times from enquiry to event reveals a general trend (compared to 2005) that timings have been reduced. This is generally due to improved diary management by the venues. However, lead times are marginally higher in Birmingham and Glasgow, as they are attracting larger events that require more time to plan. Bristol and Leeds are attracting more of the regional smaller events that require less planning time.
In London, events for up to 100 delegates have seen a decrease in the time it takes to obtain a confirmation, and the overall time from booking to execution. These timings are affected by the high demand of events in the capital, as hoteliers are also less likely to hold space for long periods of time. For events involving more than 100 the lead time to confirmation is considerably shorter compared to 2006, as hoteliers demonstrate reluctance to hold space for long periods and put pressure on event planners to book their events. However, execution time has increased, as clients realise that they have to secure their events early to ensure they get the appropriate venue.
When to hold an event?
The study also reveals that conference organisers are moving away from events on a Friday, as they are concerned that delegates need to leave early to travel home. Thursday remains the most popular business day of the week; however, there is a move towards Mondays and Tuesdays, as hotels offer favorable rates earlier in the week. Wednesday has seen a drop in corporate activity, due to revenue management and hotels not allowing one-day residential conferences midweek, for fear of blocking out a multi-day event.
Looking at specific industry sectors’ conference habits, the retail sector’s average spend on 24-hour bookings has decreased from an average £165.00 in 2005 and £150.83 in 2006 to £144.50 in 2007. At the same time, retail DDRs have decreased from £55.00 in 2005 to £48.26 in 2007. The financial sector has followed suit, with average spending on 24-hour rates decreasing from £142.50 in 2005 to £138.00 in 2007. DDRs in the financial sector also dropped in 2007 to an average £48.99, compared with £61.00 in 2005.
Contact
Website: www.conferencecare.com
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