Meetings Beat - 2006-12-04

DMCs Expect 2007 Revenue Growth But Profit Squeeze

A survey from Global Events Partners, a collection of more than 70 destination management companies around the world, showed that its member DMCs expected 2007 revenues to be stronger than those in 2006, but profitability would be increasingly hard to maintain. U.S.-based DMCs were more optimistic than their international counterparts, according to a GEP release. Though 90 percent of respondents expected more revenue next year, more than half expected profits to be squeezed as corporate meeting planners demand greater flexibility in planning, personalized attention, more service and expanded program options. Respondents listed short lead times and shifting program requirements without an increase in fees; program budget constraints and stringent procurement requirements; and difficulties in finding, training and retaining qualified staff as the top three challenges for 2007. According to the survey, 90 percent of domestic DMCs expected corporate events involving more than 200 attendees to increase, but half of non-U.S. DMCs expected the number of large events to stay the same or decrease next year. The possible falloff in big-event activity was attributed in part to increasing interest among meeting planners in holding smaller, more targeted events in more intimate settings, according to GEP. The DMCs pegged Orlando, Las Vegas, Phoenix/Scottsdale, London, France and Dubai as hot destinations for 2007. More than two-thirds of GEP's partners responded to the survey, representing close to 40 countries.



Hyatt Adds Spa Site, Renews With Passkey

Hyatt Hotels & Resorts last month announced a new Web site, hyattpure.com, dedicated to its spa facilities at 70 destinations worldwide, with links to treatment menus, a spa search feature and a color-therapy tool, according to a company release. Site visitors can locate a spa in their area, plan upcoming travels, view special offers and promotions and purchase gift certificates for treatments. "Hyatt has always been a thought leader in the spa industry, bringing to market ideas such as the residential spa concept and an unparalleled attention to cultural details and traditions," said Gordon Tareta, assistant vice president of spa operations for Hyatt. The chain last month also announced it would renew its partnership, first formed in 2003, with online group reservation facilitator Passkey. Hyatt said it has doubled its Passkey group reservations each year, generating more than $2.7 billion in room revenue alone, according to a company release. The chain said online bookings have increased by more than 30 percent since the Passkey implementation. "This is a great partnership from Hyatt's perspective, as it mirrors our corporate mantra and ongoing drive to adopt tools that will make it easier for planners to do business with our hotels. Passkey has continued to listen not only to our properties, but more importantly to our customers," said Steve Enselein, Hyatt vice president of catering and convention services, in the release. Passkey features direct connectivity to hotels' reservation systems and event registration systems. This enables planners, hotels and delegates to complete the group reservation process, from event registration to hotel reservation, delivering reservations directly to hotels' internal systems, according to the release.



StarCite, OnVantage Claim Rising Profits

StarCite Inc. and OnVantage Inc., in anticipation of their formal merger—expected in early 2007—on Nov. 21 announced increased profits in the third quarter, offering as evidence the market has responded favorably to the news of the merger. "The market response to the merger announcement and StarCite's enhanced value proposition has been tremendous. We've enjoyed a series of major new business wins, and our momentum continues to grow. We're looking forward to completing the merger and continuing to further the cause of strategic meetings management around the world," said Michael Boult, StarCite president and CEO, in a company release. The company announced several new corporate customers, including American Financial Group, Coors Brewing Co., Honeywell, LOMA, Network Appliance and Scotts Miracle-Gro. The company also announced agreements with Experient and GetThere and said it had launched its Partner Certification Program for other industry vendors.



More Travel Managers To Take On Meetings

The National Business Travel Association last month released its 2007 Business Travel Overview and Cost Forecast, in which travel managers indicated they are increasingly responsible for strategic meetings management. According to the survey of 189 direct members, 30 percent of respondents said they are already responsible for meetings and another 11 percent said they had recently been given control over group travel expenditures. In addition, 12 percent of respondents said they expect to be in charge of meetings at their companies within two years.