This year's trends report provides clear signs that IACC onference Centres are experiencing recover and outperforming the broader hotel sector in relation to occupancies and profitability.
NEW YORK – IACC has released the 2013 Edition of “Trends in the Conference Center Industry.”
Demand for Conference Centres grew along with average rates, with Executive style Conference Centres performing better than average with an ADR increase of 5% over the previous year. This led to a higher-than-average rise in rates compared with the hotel industry average in 2012, indicating conference centres are in vogue and the choice of Meeting Planners.
The report, compiled by PKF Hospitality Research on behalf of IACC, showed that Executive Conference Centres enjoyed the greatest gain in occupancy during 2012, growing on average 7.3%. Dave Arnold, Co-President and Chief Executive Officer-East with PKF Consulting USA, LLC commented “Our results this year indicate that a long- awaited recovery is taking place for those centers positioned to do so. Corporate meetings have proven to be the last segment of the market to claw back to some semblance of former glory”.
‘Turnover is Vanity and Profit is Sanity’. In 2012, IACC Resort Centres achieved the highest profits on a dollars per-available-room basis. On average, Operating Profits increased 14.5% during 2012 and in 2012, Residential Centres enjoyed greater gains in Net Operating Income (NOI) compared to comparable transient hotels.
In 2012, Executive Centres achieved the greatest increase in profit margin, increasing by 27.4%.
Mark Cooper, IACC’s CEO commented “With improving margins and greater stability on the marketplace, we expect to see our members investing further in their conference environment for their clients. It will be our aim to provide our members with knowledge, trends and research to help them make the very best choices as they further development their services and facilities”.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
