DELEGATE NUMBERS plummeted by two thirds in May, with the duration of events being cut by up to a half, according to Great Hotels Organisation (GHO), a leading hotels sales and marketing company. Typical event size was just 50 delegates - down 66 per cent on the equivalent month in 2008, while the average stay was 1.5 nights.
GHO also reported a sharp drop in advanced bookings hitting lead times. The number of 60-day advance bookings made through global distribution services (GDSs) fell by more than 40 per cent in May year-on-year.
"The booking trends clearly show people are insecure about their finances and thus reluctant to pre-pay bookings in advance," said Yunna Takeuchi, GHO's e-distribution director, adding that it was important for hoteliers to adapt their pricing strategies in accordance to guest booking patterns.
She added: "Flexibility is key - flexible cancellation policies to encourage advance bookings, flexibility in length of stay restrictions, fl exible release dates on allocated inventory and the flexibility to offer last-minute deals are all strategies that should be considered."
GHO urged the MICE industry to use clear pricing policies, targeted rates, creative 'upselling' and strong customer loyalty schemes to combat the effects of the global recession.
It pointed out that although both London and Paris had increased in popularity as travel budgets were slashed, resorts such as the Algarve and Marbella had dropped down the list.