To Hotel or Not to Hotel

When an important meeting or event is in its inception, there are countless points to consider: The proximity to airports and public transportation, lodging and food places, the meetings spaces, A/V and other technical capabilities, and other essential features and offerings of the venue. There are also all those other more creative elements that make up the look and feel of a particular event/meeting. The choice of venue plays a key role in the overall success of the meeting.  The main viable meeting venues that come to mind are hotels, conference centers and other event settings.  For large-scale meetings, hotels have usually competed with conference/convention centers. Yet, independent event venues potentially offer “out-of-the-box” opportunities to improve the overall impact of the meeting on the participants.  While there have been studies that indicate that hotels have been gradually increasing in popularity over conference centers for many events, there are no statistics regarding the popularity of event venues as compared with hotels or conference centers.  

For over a decade now hotels have been the preferred venues for the most popular congress.  To this day, they maintain that edge.  According to the International Congress and Convention Association (ICCA) statistics, hotels have over 45% of the market share compared with conference and exhibition centers’ share of just over 23%. However, there are no reliable statistics as to how independent venues stack up in this regard.  Regardless of the market share, it is unclear as to which one provides the best value proposition for the meeting planners?

Hotelsvs.Non-hotels

ICCA attributes the increase in the number of meetings at hotels (vis-à-vis conference centers) to an overall decrease in the number of attendees at events and also a decrease in the overall length of shows. Fueled by advancements in technology, there is a push to create a more intimate experience—albeit for fewer attendees.  Advances in technology also allow a broader market to be served through live streaming and social media.  Combined, these factors have resulted in a strong value-proposition for hotels. 

Hotels are also seen as the convenient solution when looking for spaces—a “one-stop shop.”  The lodging is in the same building and the need for transportation is minimal, meals are inclusive and the events spaces are often newly renovated or built. 

Against this industry trend backdrop, meeting planners are often looking for venues with the best fit for their particular event.  Hotels often—but not always—provide a better traditional fit in many of these cases.  However, this is not universally the case.  Hotels are not always the best choice for all events.  A more careful analysis needs to be done of the nature of the planned event and what criteria could make it a success based on which the “perfect” venue could then be selected.   

While hotels do offer specific advantages for some meetings, their ability to compete with conference centers depends a great deal on the nature and most importantly the size of the meeting.  For the most part, hotels are built to appease a mass audience. Their sole function is not events. And hotels can rarely compete with conference/exhibition centers for larger events. In fact, in the US, over half of the market share is still held by meetings with 500 or more attendees.  For events with fewer than 500 participants, hotels and conference centers compete head-on which poses interesting challenges for meeting planners.  

While hosting events at a hotel offers distinct advantages—that of being “all-in”—many event planners view the option with trepidations.  Notwithstanding the convenience of having all the hotel amenities under the proverbial one roof, the experience can often be less than ideal. Meeting planners strive to make their event an immersive experience for the attendees.  Having to transport participants to the event venue, for example, offers attendees an opportunity to connect with each other along the way—thus making the event a lot more impactful for all.  An offsite event venue allows attendees to be more engaged in the meeting—hence making for a richer experience for the participants that could be reflected in the feedback that usually follows such events.   

It is rarely possible to replicate the “atmosphere” of an offsite venue in a hotel. Proximity of lodging facilities offers an escape for attendees—allowing for constant flow of attendees in and out of the meeting room—thus making them potentially more disruptive.  Under these circumstances, it becomes far more difficult for the meeting planner to achieve the immersive experience they vie for.  Getting the attendees out of the hotel, out on the town and away from their “comfort zone,” is part of the ever-important “wholesome” ambiance that many planners want to create. 

The Strongest Value Proposition

Hotels can rarely meet these intangible value propositions.  However, offsite venues—whether they are conference centers or independent event venues—must deliver on this promise, which would constitute their strongest value proposition. Today, meeting planners will not tolerate outdated facilities or the lack of modern luxuries that can be found in most hotels.  As technology dominates many aspects of meetings and events, any venue that aspires to attract prominent events must be able to deliver the ability to create increasingly more personalized event experiences for the attendees. 

Ultimately, event professionals must ask themselves a question: ‘Which of my options will help me create the best experience for my event stakeholders (sponsors, attendees, etc.).’ The data shows that when faced with this choice, many planners are selecting hotels. Is this because they see it as the better fit, or because the alternative venues that they may be evaluating simply don't/can’t provide the same level of experience?

Putting It All Together

Meeting planners must build their strategy based on how they intend to create the best experience for their attendees. Hotels, conference centers and independent event venues compete successfully with one another.  It is the expectations of the planner that can help tilt the scale in favor of one vs. another.  Venues are no longer abstract spaces.  The decision has to be part and parcel of the event’s broader objectives.   

By the same token, venues (whether they are hotels conference/exhibition centers or event venues) must build their own value propositions based on facts and their—hopefully, unique—attributes.  Trends are constantly changing.  Venues must keep abreast of meeting planners’ ever-changing needs and expectations. Strive to offer unique opportunities for immersive experiences event planners are seeking to achieve at their events.    

For the most suitable venue for your next important meeting or event, let professionals at GMS Meetings do the legwork for you.