According to Hilton, in 2023, the destination of many large conferences and events shifted from large, urban city centers into secondary markets. In the Americas, Milwaukee, Wisconsin, Albuquerque, New Mexico, and Fort Myers, Florida, topped demand growth among one-year-out bookings1. Other recently added prime meeting hotels in secondary cities have included DoubleTree by Hilton Abilene Downtown Convention Center (Texas) and Embassy Suites by Hilton Panama City Beach Resort (Florida).
These emerging destinations offer many advantages for hosting events, such as lower costs, less traffic, more availability, more innovation, and more cultural diversity. They also provide more opportunities for bleisure travel, as attendees can enjoy the local attractions, activities, and experiences that these places have to offer.
The Increase in Airfares and Hotel Rates
One of the challenges that business travelers may face in 2024 is the increase in airfares and hotel rates, due to the high demand and limited supply. According to FCM Consulting, major corporate airlines are projected to have seats offered in the first half of 2024 3% higher than the same period in 2019. Furthermore, 50% of these airlines are scheduled to surpass the number of seats offered in 2019. However, this may not be enough to meet the growing demand for business travel, especially in certain regions and routes. As a result, airfares may rise significantly, especially for premium classes and last-minute bookings.
Similarly, hotel occupancy levels and rates are expected to increase in 2024, as more travelers return to the market. FCM Consulting indicates an average of 68% occupancy per month in 2023, and hotels are imposing rate increases of 3 to 8% for 2024. However, the availability and pricing of hotels may vary depending on the location, season, and type of property. For example, resort and all-inclusive locations may see higher demand and rates, as they are popular for bleisure travel and group and incentive travel.
