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Group demand increased in 21 of the top 25 hotel markets in the first half of 2024, but overall levels, adjusted for inflation, were still lower than in 2019. Conferences and trade shows are the main drivers of this growth, with regions such as Asia Pacific and North America seeing significant recovery.
Andrea Doyle
According to data from CoStar Analytics, demand for group meetings in 21 of the top 25 largest hotel markets was higher than last year in the first half of 2024.
That’s good news. But from a broader perspective, there are far fewer markets breaking through 2019 levels. Only five do: Tampa; Orlando; Dallas; Nashville; and Las Vegas. (According to CoStar, group rooms are rooms sold in increments of 10 or more.)
A July Deloitte report noted that conferences, trade shows and exhibitions play an important role in tourism growth. More than six in 10 business travelers expect to attend at least one event in 2024.
A quarter of travel managers say meeting attendance will be the biggest driver of travel growth in 2023 and expect this trend to continue into 2024. According to the Deloitte report, six in 10 travelers say they expect to attend a conference in 2024, significantly ahead of all other travel types in terms of traveler volume.
conference growth
Activity levels in 2024 remain stable compared to 2023. In the second quarter, projected attendance increased by 23% and space usage increased by an average of 28%.
“We’re seeing meetings getting bigger and longer,” Knowland CEO Jeff Bzdawka said.
Hilton’s meetings and events performance in the second quarter was strong. “Throughout the year, we will see growth across all segments globally,” Hilton CEO Chris Nassetta said. “Short-term leisure time will be very, very low, but positive. ; a bit higher for business transients and very, very strong for meetings and events.
Business travel spending expected to reach record high
Global business travel spending is expected to reach a record $1.48 trillion by the end of 2024.
By 2028, global business travel spending is expected to exceed US$2 trillion. Despite these figures, spending levels remain below pre-pandemic highs when adjusted for inflation.
Inflation, China’s slow recovery, geopolitical tensions, industrial labor challenges and natural disasters are all headwinds.
Growth is expected to continue to gradually slow down, with a compound annual growth rate of 6.95% from 2025 to 2028.
The recovery of business travel is not uniform across regions. Asia Pacific is the fastest growing region in 2023 (36%), followed by Eastern Europe (33%) and North America (25%).
This year, China and the United States are expected to be the top two markets for overall business travel spending.
The most common purpose of travel for all business travelers is to attend meetings, seminars and training, followed by conferences.
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