Do Conventions Drive Demand?
A February report from Jones & LaSalle’s Hotels and Hospitality Division answers this question. Does is really matter to nearby hotels how many people want to come to town for a convention? Let’s take a look at the information that was discovered to see whether or not the number of hotel reservations dramatically increase during conventions.
Convention centers with recent expansions show the most increase in the revenue-per-available rooms. With up to a 4% increase, this can mean dramatic income for hotels located within the center. The entire market area will actually be able to benefit with these kinds of numbers.
Of course, the larger the market, the larger the revenue. When all the circumstances are in a property’s favor, there is a potential of an $80 million increase within five years. Not only will this help the hotel market, but also the cities in which they reside. The more people that come to town to stay, the more consumers there are to spend at restaurants, points of interest, and other events and activities.
The report also found that the major growth occurs over a three, to five-year period, so immediate results should not be anticipated. Hoteliers should also take a look at the fact that if the convention centers become full, they have the opportunity to bring more meetings and smaller conventions into their own hotels. Expansion and remodeling to accommodate such business events can greatly benefit a property.
Hoteliers needn’t worry about having strong competition in their cities either. Even though hotels may be in close quarters, that just means more travelers will come to town. Most people looking to reserve hotel rooms are looking for proximity to events, as well as other happenings. So, if there are more choices, it won’t hinder a property when it comes to increasing income.
Do conventions drive demand? They sure can! Make sure the properties nearby offer the businessmen and travelers everything they need, make it “pop” out at them, and you can increase your revenue year after year.