Let’s face it: Even discussing conference and banqueting business right now drips of tone deafness. We get it: There’s not much of it on the books. According to HotStats data, year-to-date revenue from conference and banqueting is down 72% to $8.38 per available room compared to the same period last year.
The days of the iced-over raw bar are over, for now.
The regret is that conference and banqueting, based on normal times, has the potential to bring in a heaping helping of revenue. One study by Oxford Economics saw that eventgoers spent $38 billion in direct sales in 2016. Those events also generated 300 million room nights.
Of course, it’s not all roses. Such events can also come with high costs that spread throughout the operation, forcing hotels to tap into everything from food and beverage (F&B) and marketing to information and telecommunications (I&T) costs. Those expenses can make a dent in a hotel’s profits and losses (P&L).
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