According to the April Rubicon Report, based on advance reservations already on the books, the outlook from group bookings (which is the primary portion tracked by them as this is what makes up a bulk of advance bookings for this window of time):

• At the end of February, total occupancy for the upcoming 12 months is up 3.7% year-over-year.
• Occupancy and pace metrics are more pronounced in the group segment, with commitments up by 4.7% year-over-year, but with a decline in pace of 12.9%.
   

So, reading between the two projections, one would conclude that both the group segment as well as corporate segment will both show healthy gains this year: the slowdown in pace may well have much to do with the strengthening base over last year against which the numbers are compared.

So, what does this mean to you? This only helps if you can capitalize on this growing demand;

• Know your back yard: what's happening here will have everything with your local demand over the year. Make sure your team knows the projects underway, or coming to area businesses- store upgrades, contruction projects, technology upgrades bringing in consultants, hospital renovations, business park activity, engineering activity, etc.
• Know your in-house guests: collect company names from guests so you know who they represent - reach out to them. They're at your hotel for a reason - know this and you may find more here than you expected.
• Channel management: needless to say, ensure all you channels are visible, have rate parity, show the correct negotiated rates, correct government rates along with good descriptors of your property. How you look to the shopper, compared to your comp is critical. Are all your approved RFP rates correctly loaded - and visible to the traveler?

With many hotels defering maintenance over the past two+ years, and if you have upgraded, this is your opportunity to share shift: if you haven't, explore how you can value add to the experience for the corporate traveler - obviously focus on your people, add guest acknowledgement tools (welcome amenities, shuttle services, etc.) and recognize your local area demand generators as well as those who drive demand to you - let them know you appreciate them, etc.  

It's a lot easier when demand is growing - don't lose the opportunity!

The fourth quarter of 2010 showed the strongest seasonally-adjusted quarter-over-quarter business travel growth since the recession began. 

"These are very heartening signs. Business travel spending is coming back at robust levels, indicating the shape of things to come - namely more travelers on the road, an improving economy, and a positive environment for continued job growth," said Michael W. McCormick, GBTA Executive Director and COO. "Thanks to increasing corporate confidence, companies are investing more in business travel which will further stimulate business activity and economic growth."

The findings were released today in the latest Business Travel Quarterly Outlook - United States from the Global Business Travel Association Foundation, the education and research arm of the Global Business Travel Association (GBTA), sponsored by Visa.

GBTA Business Travel Index Is Snapping Back to Pre-Recession Levels

The GBTA Business Travel Index (BTI) provides a way to distill market performance and the outlook for business travel into a single metric that can be tracked over time. Initially forecast at 108 for Q4 2010, the BTI has been revised upward to 112 for Q4 2010, its highest point since the beginning of the global recession in Q3 2008.

This revision is equal to $1.9 Billion more business travel spend than previously forecast. The increase of nine points over the Q3 2010 BTI, which came in at 103, means there was a total $4.2 Billion increase in business travel spending between Q3 2010 and Q4 2010.

The rise in the BTI was driven by stronger economic growth and the expectation of slightly higher prices in following quarters. For Q1 2011 the BTI is projected to fall slightly to 110, a small cyclical reduction from a stronger-than-expected fourth quarter but still well above 106, where the BTI stood in Q1 2010.

Rising Prices as Demand Grows

With economic improvement and more business travelers hitting the road, travel prices are also recovering from their sharp declines during the recession. Rate analysis based on an aggregate of airfare, lodging, meals, ground transportation and car rentals shows travel prices in 2010 increased by 2.5 percent and are projected to increase between 2 percent to 4 percent for 2011.

International Travel Increases; Group Travel Continues Its Comeback

International markets continue to present new opportunities for company growth and remain top of mind for many executives as they look to maximize this potential. Final numbers for 2010 show growth of 17.3 percent in international travel spend for the year. International outbound travel is expected to continue to grow by 7.9 percent in 2011, proceeding at a faster rate than overall business travel growth.

Also in line with better-than-expected Q4 results and rising overall business travel levels, group travel spend grew in 2010 by 6.0 percent and is expected to advance by 7.0 percent in 2011.

Concluded McCormick, "Group travel, events and conferences are large expenses with long lead times. Companies lacked the confidence and clarity to make these longer-term investments when the economy was struggling, but these increases are further evidence that companies are feeling much better about investing in business travel and face-to-face meetings once again."

Key Metrics

The Business Travel Quarterly Outlook - United States is free of charge to all GBTA Members (gbta.org/foundation/resourcelibrary). Non-members may purchase the reports through the GBTA Foundation at research@gbta.org. Members of the media seeking report details should contact GBTA Communications at pr@gbta.org.