HSMAI WASHINGTON, DC CHAPTER Brain Berry SVP Sales and Data Analytics, Cvent Inc.
INDUSTRY TRENDS & INSIGHTS ▪ ▪ ▪ ▪
Meeting & Event Performance Industry Threats Meeting Planner Insights Key Strategies and tips
WHAT DOES INDUSTRY DATA SUGGEST?
U.S. GROUP DEMAND & OCCUPANCY (12 MMA) 5.0%
ADR
4.0%
GROUP OCCUPANCY
3.0% 2.0%
Demand
2015: +0.4%
1.0%
2016: -1.7%
0.0%
2017: -2.4%
-1.0% -2.0%
Occupancy
-3.0% -4.0% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 15 16 16 16 16 16 16 16 16 16 16 16 16 17 17 17 17 17 17 17 17 17 17 17 17 18 18 18
Source: STR U.S. Upper Upscale and Luxury Class
YTD: -0.1% July 2018
GROUP OCCUPANCY BY MARKET 2014-2017 Luxury and Upper Upscale Group Occupancy Change (%) 20.0 15.0 10.0 5.0
0.0 -5.0 -10.0 -15.0 -20.0
-4.6
TRANSIENT AND GROUP MIX TREND
DIVERGENT DEMAND DRIVERS TRANSIENT (LEISURE) ▪ Retiring Baby Boomers ▪ Strong Employment ▪ Consumer Confidence
▪ International Arrivals ▪ Experiential Consumers
DIVERGENT DEMAND DRIVERS
Business Confidence Index 102 101 100 99
GROUP (BUSINESS)
98
▪ Business Confidence
97
▪ Spending/Investment
96 95
▪ Alternatives
94
▪ Work-Life Balance
93
▪ Las Vegas
Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
WHAT DOES CVENT’S DATA SUGGEST?
GROUP BUSINESS OUTLOOK To download full report, please visit: explore.cvent.com/groupbusinessoutlook
GROUP BUSINESS OUTLOOK – FUTURE PACE
SMALL IS THE NEW BIG
73% Less than 50 Rooms
42% Growth in 2 Years
INDUSTRY INSIGHTS: TAKEAWAYS AND STRATEGIES
Storm Clouds
Group performance has been softening and appears to be getting weaker
Group-Up!
Typically, the best strategy in an uncertain or declining market is to increase group mix
HyperCompetitive
Growing group isn’t going to be easy. Blocks are shrinking, demand is declining, and supply is increasing
WHAT ARE THE RISKS?
GLOBAL GDP – ALTERNATIVE SCENARIOS
ECONOMIC RISK Impact to GDP
U.S. HOTEL SUPPLY GROWTH Supply
% Chg
160,000
4.5%
140,000
4.0% 3.5%
120,000
3.0% 100,000 2.5% 80,000 2.0% 60,000
1.5% 40,000
1.0%
20,000
0.5%
-
0.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
WHAT ARE PLANNERS SAYING?
PLANNERS EXPECT TO SPEND MORE
52%
50%
32%
31%
How has your budget changed?
17%
INCREASED
NO CHANGE 2018
2017
19%
DECREASED
PLANNERS DON’T VIEW HOTELS AS A COMMODITY
1-3% SAVINGS
A DISCOUNT WOULD NOT CHANGE DECISION 3-5% SAVINGS
Savings level to switch to second choice
6-10% SAVINGS
OVER 10% SAVINGS
2%
10%
20%
33%
35%
PLANNERS ARE FLEXIBLE
PLANNERS WANT CONCESSIONS
Source: Cvent Planner Sourcing Report 2017
PLANNERS ARE CHANGING
67%
PLANNER SOURCING
Online Sourcing Tool Search Engine
The buyer’s journey is now done digitally
*Cvent Planner Report
Direct to Venue Peer Recommendation
Other
38% 29% 17% 12% 4%
DIGITAL TRANSFORMATION Cvent Hospitality Cloud Growth: Revenue Sourced $14.7B $11.4B $9.8B $8.0B $6.5B $4.7B $50M
$600M
2008
2009
$2.4B 2010
$3.2B
2011
2012
2013
2014
2015
2016
2017
THE IMPACT OF CVENT
Unique RFPs Value Sourced $83,013,344,423 Total Room Nights Sourced 258,256,608
Total Unique RFPs Value Sourced
*Source: CSN and Lanyon Group 2008-2017
Total RFPs Sourced 11,898,500
Thank You Brian Berry SVP Sales and Data Analytics, Cvent Inc.
WASHINGTON DC
$1,556,491,047 Sourced through Cvent Aug ‘17 – Jul ‘18
93,687 RFPs received in the last 12 months
SLICING THE DATA FURTHER
~7.8k Per month
257 Per day
BOOKING WINDOW| AUG ‘17 – JUL ‘18 Booking Window
YOY RFP Percent
1-30 Days
-5%
31-60 Days
-2%
61-90 Days
4%
91-120 Days
-1%
121-180 Days
6%
181-270 Days
4%
271-365 Days
7%
366+ Days
5%
AVERAGE AWARDED ADR Brand Scale
AUG ‘17 – JUL ‘18
Luxury
$274
Upper Upscale
$200
Upscale
$188
Upper Midscale
$160
Midscale
$145
Economy
$79
Independent
$195
FUTURE PROPOSED ADR – WASHINGTON DC 300.00 250.00 200.00 150.00
100.00 50.00 0.00 Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
AVERAGE RESPONSE RATE | AUG ‘17 – JUL ‘18
Response Rate
Bid Rate
Turned Down Rate
Turned Down Rate with Planners were Flexible
93.9%
45.9%
45.0%
39.0%
(0.1%) vs. Prior Year
(+8.8%) vs. Prior Year
(-8.4%) vs. Prior Year
(4.6%) vs. Prior Year
TOP 10 COMPETING MARKETS – RECEIVED RFPS FL - ORLANDO DC - WASHINGTON TN - NASHVILLE TX - DALLAS / FORT WORTH
MARKETS
FL - MIAMI CO - DENVER GA - ATLANTA IL - CHICAGO MA - BOSTON PA - PHILADELPHIA MD - BALTIMORE 0
500
1000
1500
SUM OF RECEIVED RFPS
2000
2500
3000
3500
TOP 10 COMPETING MARKETS – AWARDED RFPS DC - WASHINGTON FL - ORLANDO IL - CHICAGO
MARKETS
TX - DALLAS / FORT WORTH GA - ATLANTA CO - DENVER TN - NASHVILLE FL - MIAMI MA - BOSTON PA - PHILADELPHIA MD - BALTIMORE 0
50
100
150
200
250
SUM OF AWARED RFPS
300
350
400
450
500
UNIQUE RFPS THROUGH CVENT 20…
5342
20…
8545
20…
8391
20…
7102
20…
6433
20…
5367
20…
4433
20…
3574
20…
2664
0
2000
4000
6000
8000
10000
FUTURE RECEIVED RFP PACE VS. STLY 900
Current
800
Previous
700 600
500 400 300 200 100
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 ARRIVAL MONTH
FUTURE AWARED RFP PACE VS. STLY 350 Current
300
Previous
250 200
150 100 50
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 ARRIVAL MONTH