Meeting planners can look forward to better UK venue rates in 2018, with falls of around 4% on 2017 levels predicted by MeetingsBenchmark.com.
Key city centre locations will continue to outperform the UK average, with London’s DDR rates predicted to increase 2.42% on 2017, according to new MeetingsBenchmark.com data. Rate increases are also predicted in Edinburgh and Birmingham. Outside key city centre locations, DDR rates will either remain static or decrease.
“Early indications show 2018 UK DDR average rates 1.5% down on 2017,” explains Paul Hussey of MeetingsBenchmark.com. “Demand in the UK is naturally higher for city centre locations, so they can charge higher rates. Outside the cities there’s a much softer market and it’s a buyer’s market in locations where there is more supply than demand. There are plenty of those.”
The MeetingsBenchmark.com figures contradict the predictions of some major travel management companies (TMCs), which vary from no change to a 5% across the board rise in rates in 2018.
Hussey believes the rise in bedroom rates during the latter half of 2017 is probably behind those TMC predictions and says: “Our 2017 data supports this view, with 24-hour rates up 5.39% on 2016. However, DDR rates will stay on a downward trend, softening any 24-hour rate increases forecasted. Meetings booked via TMCs are also usually for major destinations. Our data covers venues of all shapes and sizes across the UK.
The MeetingsBenchmark.com live application benchmarks Day Delegate and 24-hour meeting rates for all types of venue. The latest figures, taken from their MEETalytics report for 2018, are based on data for 8,665 meetings already booked. 2017 comparative data is based on 190,812 meetings held at 7,871 venues.
Other trends and predictions for the NewYear highlighted by MeetingsBenchmark.com include:
• On average, meeting planners spent £2,100 per meeting and £93.52 per delegate in 2017.
• Average lead time for meetings bookings will continue to rise as planners realise the benefits of advance planning. The average lead time in 2017 was 83.74 days – up 9.28% on 2016.
• However the number of days it takes to convert an enquiry to a confirmed event will not increase as venues continue to focus on conversion.
