9 Trends Shaping the Future of Group Business

December 29, 2023

By Cvent

Before the Coronavirus pandemic, Group business in Europe and the future of Group business was, understandably, very different.

Now, hoteliers need to ensure they remain nimble and react to trends as they emerge. They also need to adapt to the changing times to ensure event planners feel comfortable enough to host events in their hotel space.

It’s easier said than done, though, and ninja-like adaptation is difficult no matter the industry.

That’s why we’ve put together this list of 9 trends shaping the future of Group business, after the pandemic.

What’s more; they’re happening as we speak, so get reading and learn how you can adapt to new regulations and requirements, increase brand recognition, guest experience and planner satisfaction!

What did the future of Group Business look like before the pandemic?

Spend

Overall Group spend was increasing in Europe, according to American Express. More countries were investing in events and conferences outside of their own country, despite uncertainties connected to Brexit and GDPR.

Airbnb, a new competitor

The sharing economy, which encompasses peer-to-peer (P2P) business models such as FlipKey or Airbnb, had been moving into the Group industry.

Airbnb, the popular online marketplace for homestays and tourism, acquired the event space booking service, Gaest in January 2019. This increased speculation that the B2B segment of the hotel industry was the sharing economy’s next target. Whether this continues after the pandemic, is yet to be seen.

Mixing Group business with pleasure

Mixing events with tourism was proving to be successful within the Group industry.

Traveller demands, primarily from millennials, had influenced lifestyle hotel brands to offer experiences such as artisanal beer tastings and mural walks through local neighbourhoods.

Now with the pandemic, this will return, albeit slowly due to social distancing guidelines.

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Trends shaping the future of MICE business after the pandemic

#1 Hybrid events: a brave new world

As hospitality starts up again and meetings and events return, social distancing and concerns over health and safety mean hybrid events could become the modern, preferred event format.

With hybrid events, companies can have an in-person audience and a virtual one. But it isn’t just a live-stream. Virtual participants should be able to engage with speakers, participate in Q&A sessions, and network with fellow attendees.

Some events, such as TwitchCon, Riot Games eSports Operations and Apple Special Events were already seeing great success in this area.

Some venues such as etc.venues and Church House Westminster are already preparing their sites for hybrid events.

Hotels need to be able to adapt to this rising event format, which means having the technological capabilities.

Make sure you have a stable Wi-Fi connection, enough bandwidth and sufficient power.
Partnering with virtual or hybrid experts such as Glisser will give you a good chance of supporting event planners and their hybrid needs.
You will need to accommodate flexible formats and maximise engagement.
Test, test and test again – it’s vital. Pull off a hybrid event with minimal hiccups, and you could earn yourself repeat business!

#2 “Generation clean” – the new generation of hotel guests

As we navigate Group business in a post-COVID world, hoteliers need to consider a new, emerging audience that they must cater to: “generation clean”. Safety, security and cleanliness will be a critical concern for many planners and travellers.

This generation will have new questions when they look for venues, and RFPs will reflect these. Questions might include:

How will social distancing in event spaces and restaurants be handled?
What are the venue’s health and safety procedures?
How often are hotel rooms cleaned and sanitised?
Can I trust that the hotel is sticking to sanitisation protocols?

So what can hoteliers do to prepare for generation clean?

Hotels need to embrace this increased need for cleanliness and transparency. Incorporating cleanliness into your brand will bring a higher standard of cleanliness and safety, and show guests that you are committed to their health.

Communicate with DMOs and CVBs your new protocols so they can help bring you new Group business.

#3 Less and local travel

International travel will be challenging in a post-COVID world, which means a growing MICE trend will revolve around local events of a much smaller size.

TravelPerk believes that domestic travel will begin to recover around October, while international will take around 18 months.

When travel starts up again, immigration will be vastly different, with compulsory isolation periods, longer queues to accommodate thermal scanning and the need for additional paperwork.

High-end tourism will take a significant blow, according to 4Hoteliers. They theorise that due to financially hurt countries will encourage citizens to travel mostly within their own country. With incomes of most of the world’s population having dropped, local travel will become a more viable option.

#4 Planners are booking Group venues through online travel agencies

More than 76% of consumers compare prices before they purchase, and event delegates are no different. They use online travel agencies and home-sharing sites to search for and book accommodation at a lower rate than the hotel block.

Excellent customer service goes a long way in gaining customer loyalty. Ensure that your property ranks high in online searches. Trawl through your website and tweak keywords and SEO, so Google favours your pages.

You may still compete with home-sharing sites but catching delegates during the discovery stage could give you a higher chance at conversion.

You should also integrate event registration and reservation. Delegates will be more likely to book within the hotel block as soon as they register for an event.

More choice within the hotel block will increase booking possibilities.

#5 Safe events

Given that “generation clean” will be a big target for hoteliers in the coming future, events must adhere to their standards.

Safe meetings and events will take precedence and, in a time where winning Group business is critical for a successful restart, event planners will be looking for venues that prioritise health and safety.

Preparing for hybrid events is the first step to ensuring planners that you take guest safety seriously, followed by food and beverage strategies, social distancing and health and safety.

The way planners source events is also changing too.

#6 Food and beverage will change

Your food and beverage strategy is also vitally important. Not only will you need to remove any buffet or hotpot options, but you will also need to consider the finer details.

Trade association, UKHospitality (UKH), alongside other industry leaders, detailed how the food and beverage industry will restart and gives some guidance on how safe events can take place:

Removing salt and pepper shakers from tables
Making condiments available only on request (in packet form only)
No cutlery laid out on tables
Limiting the use of menus and thoroughly cleaned after use
Room service to be left outside rooms to limit social contact

#7 Cancellation is important

In a post-COVID world, cancellation options will become all the more critical. Event planners will remember their experiences as Coronavirus took over the world, and some, the difficulties they faced with cancellations.

Hotels should make sure they detail their cancellation policies transparently and make them easy to find.

Where possible, give the option for free cancellation or allow planners to defer events to a later date.

#8 Sustainability importance will return

As the world returns to normal (however long that takes), the importance of sustainability will return, and with it, a need for more environmentally friendly practices.

Before COVID-19, hotels such as Hilton and Melia Hotels and Resorts were setting up ways in which to become more sustainable.

Hilton, as part of their Clean the World Challenges in partnership with Clean the World, recycle all of their used soap.

Melia Hotels and Resorts is a fantastic example of sustainable hotel management. Within a year, they had planned for 50 of their hotels in Spain and EMEA to reduce plastic by 45,000 kilos.

#9 Robots will join the workforce

The Westin Houston Medical Center – located near the largest medical complex in the world – took swift action as the pandemic was in its early stages by adding virus-killing robots to enhance the property’s disinfectant process.

The Westin Houston Medical Center is the first U.S. hotel to use this kind of decontaminating technology – called LightStrike Germ-Zapping Robots.

By using intense pulsed xenon ultraviolet light, the robots kill viruses, bacteria, and fungi, and are in use across hundreds of healthcare facilities as part of infection prevention programs.