Up to 30% less business travel - Market volume of business travel and MICE getting smaller - Increasing conference rates?
Frankfurt, Germany - 13 August 2020 - The decreasing market volume forces conference hotels to more digitalization and professional revenue management: Conference planning and booking via online tool and yielding of conference rates - these are the two major challenges in the current Eldorado Business Travel. Because: The business travel market is changing dramatically. "The vast majority of business travel experts at our member companies, however, are currently expecting a decline in travel activity of ten to a maximum of 30 percent", admits Christoph Carnier, president of German business travel association VDR.
All hoteliers agree that video conferences cannot replace personal meetings. Nevertheless, many companies will increasingly rely on digital conferences. Because: The amended German SARS-CoV-2 occupational safety regulations continue to impose significant restrictions on business trips; we reported.
So-called hybrid meetings are seen as an intermediate stage in the laborious process of economic recovery: smaller meetings in conference rooms that train hundreds of spectators via video conferencing. Technology partners such as KFP and WeFrame are getting involved in this. In any case, MICE experts are assuming smaller conference sizes with a maximum of 25 participants; conference hotels with flexible room sizes see a clear advantage here.
New and stricter rules now apply to the previous big business with conferences: Online booking tools have long been mandatory and up-to-date rates for space, catering and incentives are the future of MICE revenue management - taking all relevant cost factors into account instead of flat-rate cost recovery contributions. It remains exciting to observe which conference hotels will excel in this respect.
However, the question arises as to how the participatory event formats strongly propagated by the German business travel planner association VDVO can be further established? Will even small-scale meeting concepts undergo fundamental changes?
And just as exciting remains the further development of the market in co working: Will specialised business hotels be able to win new guest segments for this?
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