What is the most pressing issue/challenge/opportunity you foresee for planners and meetings in the lodging segment in 2007? How should they respond? Here's what those in the know had to say: j "The dominant issue for planners is based on changing economics. Planners have seen the buyer's market of 2002/2003 slowly transition into a seller's market where their leverage has been diminished. However, planners can turn this into an opportunity if they can be more flexible with timing - willing to try off-peak demand periods/shoulder periods; and location - willing to look at secondary and suburban markets. Planners should also remember that there continues to be plenty of availability and great value in meeting in many popular cities such as Dallas, Houston, New Orleans, and San Francisco."

Stevan Porter
President for the Americas Region,
InterContinental Hotels Group

"The biggest challenge facing meeting planners in 2007 will be finding hotel availability especially when date or rate flexibility is not possible. Next year is shaping up to be one of the best years in the history of our industry. Hotel forecasters like PwC, Smith Travel, and Deloitte all project strong hotel revenue growth (7 percent - 10 percent depending upon market and class of hotel) for the coming year. The challenge for meeting planners is that hotel occupancies have been climbing since 2002 and the industry forecasters believe (and I do as well) that there is little room for the projected growth in room nights. The growth will come from increased rates. This does not mean that deals cannot be found. Even at 80 percent occupancy, 20 percent is open. It is having the flexibility to modify date patterns or weeks to find those open dates. Like any supply and demand situation, many of the 'best' dates in 2007 are already taken, so settling for second and third choices may be the norm. Meeting customers have become accustomed to booking very short term and this I believe will be a potential problem."
Ty Helms
Senior Vice President, Sales,
Hyatt Hotel Corporation

"With the continuation of a robust market, meeting professionals should be aware of continued constraints in availability. Increases in transient/business travel continue to put pressure on availability and thus, impact rate negotiations. It will help meeting professionals if they are willing to look at bundling opportunities, altered patterns, and alternative destinations. In a high demand market, flexibility continues to be an important factor."
Christie Hicks
Senior Vice President of Global Sales, North America,
Starwood Hotels and Resorts Worldwide

"One pressing issue/challenge/opportunity I foresee for planners in 2007 is how to approach negotiations at a time when pricing is up and availability is down, as well as the fact that many hotels place a lower priority on conventions and meetings. We have never been in quite an extreme situation especially for convention-orientated hotels with so little supply and such high occupancies. In 2006, occupancies will be the highest since 1996. In major markets we are seeing double- digit increases in rates."

Bjorn Hanson, Ph.D.,
Principal, Hospitality and Leisure Practice,
PricewaterhouseCoopers

"The two biggest 2007 challenges I see in the group segment, although it's also occurring in the leisure and business travel segments as well, is the continued lack of available space and subsequent rate escalation. Because the number of new hotel openings is not keeping pace with demand, planners are forced to go to second- and third-tier cities, and even then, face increased competition for space and high rates. While this circumstance isn't a new one, the severity is. Rates have routinely shot up over 10 percent in most major U.S. cities and 2007 will be similar. The not-so-easy fix for the planner is to maintain the highest degree of date flexibility possible and be willing to accept alternatives if first or second choices aren't available. Even though the overall U.S. occupancy is close to 70 percent, that means there is 30 percent available and it's up to the planners to ask where the holes are in the desired city or specific hotel being sourced. By enlisting the aid of a national sales network or a convention and visitors bureau, planners can enhance their chances of landing space and rooms in their preferred destination. The recipe for disaster in today's marketplace is being inflexible with either dates or location as then planners' chances of finding their required package is greatly diminished."

Dave Scypinski
Senior Vice President,
Industry Relations,
Starwood Hotels and Resorts Worldwide