To get an insider’s perspective on industry trends, Prevue spoke with company president Mike Schugt. Teneo Hotel GroupRecord growth in 2022 and 2023 signals an important shift in the group travel landscape.
Teneo Hospitality’s sales team pairs meeting planners with more than 400 convention hotels and DMCs around the world, which Schugt said report that about 50 percent of their business comes from meetings and groups.
“We see the majority of our portfolio hotels ‘gathering’ in 2024 and beyond as leisure demand normalizes,” he said. “Midweek business travel has recovered but remains well below historical levels in most markets. Group meetings and banquet events continue to be a significant source of business for most of our hotels and resorts.”
Teneo has been closely monitoring market changes and gathering insights to reveal current trends and forecasts for 2025. Please see:
- Companies continue to see Increased group demand From 2024 to July, new sales leads increased 5% year-on-year.
- The lead surged 18% year over year in July.
- August trends were flat, reflecting seasonal shifts such as school reopenings and holidays.
- Group booking By 2024, the number of room nights booked will increase by 8% and the number of room nights booked will increase by 17%, indicating that the number of room nights booked will increase Larger group activities and procedures.
- organization is promise Go furtherbookings for future meetings increased by 25% compared to last year.
- 66% of bookings are currently for 2024 travel, compared with 70% for 2023 travel in the same period last year.
- The average lead time for first inquiries has extended to 300 days before the conference date, while group bookings are confirmed approximately 225 days in advance.
- While this significant trend of planners making decisions going forward is positive for long-term business, it poses a challenge for hotels still seeking short-term group bookings.
Shugart expects the trend toward (or back to) longer lead times to continue.
“With 4% of sales leads currently focused on 2025, the trend towards further advance bookings is not only continuing but accelerating,” he said. “This year we have seen a more than 30% increase in meetings planned within one to three years. “We are hearing from clients that they are pushing for further executive decisions to ensure preferred hotels and destinations are selected for important conferences and association meetings are also extending their planning timelines,” he added. conferences and industry meetings.”
purposeful activities
Shugart says how Group gatherings have also changed, not only in terms of the environment but also the residents of the destination.
“Planners and organizations are increasingly looking for venues that align with their environmental impact and social responsibility values, making sustainability a key differentiator for the industry,” said Shugart. Bella Island Beach Resort In the Florida Keys, partnerships are established with organizations such as Save Our Key Deer and Save-A-Turtle.
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