Dive Brief:
- The 2025 State of the Meetings Industry report, released by Cendyn and ConferenceDirect last week, indicates an “optimistic outlook” for meeting planners, with more than 40% expecting bookings to increase this year.
- Despite the positive outlook, meeting planners continue to report dissatisfaction with event costs and are increasingly turning to secondary markets as a cost-saving alternative.
- The shift toward secondary markets presents an opportunity for hotels in these regions, though “there is little room for compromise regarding event quality and the pressure is on to deliver exceptional attendee experiences,” ConferenceDirect Chief Marketing Officer Larry Hanson said in a statement.
Dive Insight:
The report also found that more medium and large meetings will be popular in 2025, following the prevalence of small meetings in 2024. This year, medium meetings (from 100 to 250 attendees) represent 35.8% of all bookings in the U.S. and large events (with more than 500 attendees) accounted for 32.4%.
The shift has created an equalizing trend between smaller and larger events, emphasizing “the need for hoteliers to improve services and amenities tailored to diverse group sizes,” per the report.
In the wake of rising costs, meanwhile, meeting planners’ money-saving measures include shorter meetings, alternative destinations and reduced activities or food and beverage options. Secondary markets are poised to benefit, as planners relocate events to maintain event quality without having to move down a hotel chain scale. Some 90% of planners said they have considered moving meetings to secondary markets to reduce costs, the report found.
Hotels in these secondary and tertiary markets can attract new business through quality products, services and “attractive” pricing alternatives compared to the top 25 market destinations, according to the report.
“Finding a balance between high costs and delivering an amazing customer experience will define winning venues in 2025,” Cendyn President Michael Bennet said in a statement.
Planners are also seeking advanced audio-visual support from event venues, with 33% saying that technology-enabled events are “top of mind,” the report found. In addition to AV support, meeting planners are also most likely to prioritize food and beverage as an add-on.
Secondary market growth for the meetings and events industry exceeded that of the top 25 markets, Cendyn reported last month. Louisville, Kentucky, led U.S. secondary markets for year-over-year events growth in December and November.
