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Short-term rate hikes push mtgs. to alternate markets.

Article Excerpt
Corporate meeting buyers have begun to move some of their events out of major cities and to secondary markets as competition for space heats up and room rates rise, according to an exclusive Meetings Monitor survey. Buyers confirmed expectations of industry analysts and hoteliers that the meetings industry has shifted to a seller's market, at least in major cities, and that this year will see higher room rates and a return of ancillary fees and food and beverage minimums. Buyers are expected to feel the greatest effect on smaller meetings booked less than 90 days in advance.

More than 30 percent of 189 corporate meeting buyer respondents said they have paid higher hotel rates in the past six months for short-term meetings with fewer than 100 attendees compared with meetings with longer lead times. Buyers first reported higher room rates for small, short-term meetings in a March 2004 Meetings Monitor survey (Meetings Today, March 29, 2004), as the strong buyer's market in place since 2001 started to weaken. The trend of higher short-term rates has continued this year, according to the survey, but buyers said higher rates have extended to ancillary fees and food and beverage minimums.

In response, buyers have moved some corporate meetings to smaller cities, as competition for space intensified from both transient and group business...

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