Just a few short years ago, the housing industry was in its heyday. Mortgage rates hit record lows, new home sales reached record highs, and home values were soaring … in fact, many financial advisors were saying real estate was the best investment you could make. Fast forward to today: Home sales - and values - have plummeted, the foreclosure rate is at a record high, and many lenders are struggling to stay solvent. The situation is so dire that many are pressing the government to intervene.

A lot of attention has been paid to the role predatory lending played in this scenario. But the truth is, many people simply got swept up in the excitement of the boom and neglected to consider what might happen if it went bust. Buyers counted on their homes appreciating at record rates, builders expected high-end housing sales to grow, and shortsighted lenders failed to weigh the long-term consequences of their practices.

Are there lessons to be learned here for the meetings industry? I think so.

Of course, no one would say the meetings industry today is experiencing the "glory days" enjoyed by the mortgage industry just a few years ago. (And, thankfully, "predatory" is not a commonly used term in our circles.) However, our industry has been doing quite well: Attendance is up, travel levels are positive, and hotel occupancy is strong. It's human nature to become complacent and think that this will always be the case.

If the housing crisis has anything to teach our industry, it's how quickly things - like the economy - can turn. In fact, it's predicted to do just that after the presidential elections, taking travel and exhibitor budgets with it. With more rooms in supply, the hotel market is slowing as well. Technology continues to compete for face-to-face meeting time, and heaven forbid, there's always the possibility of a natural disaster or terrorist act to turn our current state of business upside down.

The mortgage crisis reminds us not to take any of our industry partners - meeting planners, exhibition managers, CVBs, hotels, airlines, and vendors - for granted. Taken a step further, some bureau partnerships (see sidebar) demonstrate the value in looking for fresh opportunities to help each other succeed, in good times and bad.

A Long-term View

It's easy to put the blinders on when we're experiencing a good market. But that's also how we get blindsided. Instead of simply focusing on this year's numbers or goals, we need to take the longer view. How will today's actions affect us down the road? Better yet, what can we be doing while times are good that will make things easier when a market or industry inevitably changes?

That's the kind of thinking that has led a number of CVBs around the country to partner with each other. (Read this issue's cover story on p. 30.) These second-tier city bureau collaborations, begun in the aftermath of Sept. 11, have taken off today as a way to better compete against the "big leagues" in a healthy economy - and will hopefully hedge against tougher times down the road. It's a model designed to help the cities weather whatever the economy - and the industry - dish out.