U.S. group booking activity through the Cvent Supplier
Network is poised to decelerate for the next 24 months, according to Cvent's
latest Group Business Outlook. The report shows that the group booking pace for
the U.S. is down year over year across each of the next eight quarters. The number
of RFPs awarded during the first quarter rose 9.8 percent compared to the first
quarter of 2018, a dropoff from the 17.3 percent year-over-year increase in the
fourth quarter of 2018.
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"While we saw a significant increase in awarded request
for proposal activity at the end of 2018, the increase in activity was likely
impacted by the desire to finalize group contracts before commission policy
changes made by a number of large hotel chains went into effect this
year," said Cvent senior director of analytics Jeffrey Emenecker. "As
we look at the next two years, our sourcing data shows an overall decline in
group occupancy in the U.S. market."
Cvent said group business demand is relatively flat while
supply is increasing, making the market for this business more competitive. For
future group blocks contracted during the past 12 months, the average number of
rooms rose 4.4 percent year over year to 229.3, while the average event
duration declined 2.8 percent to 3.3 days.