The latest airfare trends are promising for corporate planners on a tight budget as well as association groups hoping to pick up last-minute registrants.
Specifically, government data shows that airfares in mid-2024 are six percent lower than one year ago, and when adjusted for inflation are down nine percent versus mid-2023, according to aviation-industry group Airlines for America.
On the other hand, any savings gained from lower airfares might be needed to offset rising rates for guest rooms and event space at hotels. The most recent Hospitality Group and Business Performance Index from research firm Knowland and travel-technology platform Amadeus finds that the overall hotel industry is quite healthy, with gains of nearly three percent in both occupancy and rates in 2024 despite the recent slowdown in leisure travel.
When it comes to demand and pricing among hotels that cater to the group segment, though, performance is even stronger. Consider this: The group-segment index has achieved year-over-year growth for seven consecutive quarters, with the Q2 2024 figures more robust than ever: 3.4 percent more room-nights were consumed while room rates were 4.4 percent higher than in Q2 2023.
Other results from the Hospitality Group and Business Performance Index reinforce the current strength of the group market. The report notes that “meetings continue to provide stability for hotels after the 2023 boom year. Overall, event volume is steady, but meetings are getting bigger,” with the average meeting now hosting 145 attendees and using 4,025 square feet of event space.
Further, the higher average daily rate for the top 25 U.S. markets—$229 per night in Q2—“might have caused a share of events to transition to [second-tier] markets, which averaged $185 per night in Q2,” a historical high, the report says.
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