Photo Credit: Sirwiseowl
As everyone plans their fiscal year and 2012 budgets, what is the meetings forecast? Here’s a round-up and it seems the forecast is party cloudly with the hint of optimism.
Skepticism about an economic downturn and the possibility of another recession has left us wondering what should we expect in 2012. It’s a coin-toss and companies like Fannie Mae are forecasting a 50/50 projection of economic recession again. The rest are just as nervous to make predictions and numb to good news. However, if we were to try to predict the meetings forecast for 2012, what would it be?
We decided on Partly Cloudly with a Hint of Optimism. Why?
PARTLY CLOUDY:
In a San Franscisco Gate article we read, “Spending and hiring decisions have been put on hold, adding a further break on economic growth and negatively impacting job creation.” Ann Thorley-Brown on Cvent explains, job creation in the meetings and hospitality industry is one missed opportunity which could kick-start the economy. She includes valid points such as the U.S. Travel Association’s “U.S. Travel Plan” twhere they emphasize increased travel to the U.S. is the most effective form of economic stimulus and therefore could create 1.3 million jobs.
And, in the hotel industry overall, group travel rates continue to be sluggish according to Fox Business.
CHANCE OF SUNNY:
However, there is a hint of optimism. In the same Fox Business article, we found that the number of group travelers is going to increase along with leisure travelers; as demands increase, so will rates – great news for the hotel industry and the economy. The article states, ” Now that business travel is on the rise, it’s leading the industry’s rebound after a dismal two years of corporate travel-budget cutbacks… Average daily rates have only grown just 3.3% year-to-date, meaning there is room for substantial rate increases.”
In the Cvent article, Brown had an innovative suggestion “…to consider incentives and tax credit for companies that hold business meetings and corporate events of strategic significance at local event venues that are particularly vulnerable in a turbulent economy (e.g. local 3 and 4 star hotels, boutique hotels, and small inns).”
What do you think the meetings forecast should be like for 2012? Did you agree with our 2011 forecast?
