Grass Roots Meetings Industry Report analysis predicts Q4 upturn

Discussing the results of the latest Grass Roots Meetings Industry Report, now in its sixth year, Grass Roots HBI Global Supply Chain Director, Alan Newton, expects an upturn in meetings activity post-Olympics.
 
“The 2012 European hotel market has seen both winners and losers around rates so far this year, with many hub destinations perming strongly, whilst more provincial and secondary cities have struggled to attract enough volume business,” he says. “Different hotel sectors have also shown very varied permances. For example, the five-star market, has continued to see rate growth, while mid-market hotels on the other hand have seen less demand and in many cases suffered rate reductions.”
 
He believes that after seeing a large dip in meetings activity before and during the Olympics, there will now be an upsurge in events for Q4 and 2013. “The forecast for the remainder of 2012 looks largely favourable for hotels. After seeing a large dip in meetings activity before and during the Olympics, we are now seeing an upsurge in events for Q4 of 2012 and 2013.
 
“Despite this, it is unlikely that rate increases will continue at the same level going forward and instead, we expect to see single digit rate growth at most in the UK and Europe for the next six months,” he adds.
 
The Grass Roots Meetings Industry Report is available via a smartphone app for the first time, providing users with regular regional market updates on rate movements, new hotel openings and meeting trends, as well as key industry news. It was launched, 1 May, at a media lunch at the Four Seasons, London.
 
“Looking closer to home, London again has proved to be a mixed bag with five-star 24-hour rates increasing by 18 per cent but four-star 24-hour rates reducing by 10 per cent,” says Newton. “Specifically, the five-star market in the South East has fared well with day delegate rates rising by an inflation-busting 41 per cent. The three-star UK hotels market however, has seen day delegate rates decrease across all regions, with the largest rate falls occurring in the South West, where rates reduced by 35 per cent.
 
“The lack of government meeting activity, which has traditionally driven the mid-market hotel sector, is now clearly taking its toll,” he adds.
   
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