keep open skies

The U.S. Travel Association sent a message on Thursday urging the Trump administration to preserve the nation’s Open Skies aviation agreements.

One good reason: The agreements align with President Trump’s economic goals.

The Open Skies policy reduces government interference in air travel. The association said American, Delta and United airlines have petitioned the government to break those agreements to curb competition from abroad.

The Big Three airlines seek to sever agreements with Qatar and United Arab Emirates, the association said. That would benefit the airlines by weakening completion from carriers Etihad, Emirates and Qatar Airways.

The travel association says sticking with the accords is good for the U.S. economy.

U.S. Travel Association President and CEO Roger Dow outlined the benefits in a letter sent to Secretary of State Rex Tillerson. Open Skies “agreements have led to hundreds of thousands of new American travel and manufacturing jobs, billions in U.S. economic growth, lower airfares for travelers, more flights to airports to and beyond major gateways, and new opportunities for U.S. airlines,” Dow wrote.

How Open Skies Benefits the U.S. Economy

The association cited several ways Open Skies benefits the United States. Among them:

-In  2015, a single new Emirates flight to Orlando created 1,400 jobs in the region. What’s more, Middle Eastern airlines have committed to buying products from American manufacturers such as Boeing, which supports U.S. manufacturing jobs.

-Every dollar spent by an overseas visit to the U.S. counts as an export, thus putting a dent in America’s trade deficit. In 2015, U.S. travel exports hit $246 billion. Breaking from Open Skies would diminish foreign travel to the United States.

-Open Skies agreements have eliminated government restrictions on routing, capacity and prices. This squares with the president’s goal of rolling back regulations.

“While their arguments are couched in compelling terms,” Dow wrote in the letter, “the Big Three airlines are not seeking a level playing field to compete. Instead, they are lobbying for government intrusion that would benefit themselves, but hurt American manufacturing jobs, threaten U.S. economic growth and undermine U.S. national security.”

The administration on Thursday had not commented on the letter.

Based in Washington, D.C., the nonprofit association represents all components of the travel industry. The industry generates $2.1 trillion in revenue and supports 15.1 million jobs, the association says.

communal guest roomsCourtesy of Marriott International

When deciding on group accommodations, which factor wins out—the desire for shared space or the convenience of hotel services and amenities? Last month, at its Innovation Lab in downtown Los Angeles, Marriott International announced a groundbreaking lodging concept that may render the question moot.

A pilot program at the company’s eco-conscious, extended-stay Element properties will give guests a new option that combines private bedrooms with a shared common area. But don’t mistake this offering for a simple suite.

marriott element communal guest roomsCourtesy of Marriott International

Element’s bold communal guest room design will involve a shared kitchen, dining and lounge space surrounded by four guest rooms. For travelers seeking more unique lodging options, the appeal stems from an increase in not only available space, but also flexibility of use. It’s a natural extension of the Element room design philosophy, which mimics that of urban residences through the use of flowing layouts.


Want to learn more about Marriott? Read our exclusive interview with Bill Marriott

The move addresses a growing consumer demand for unique accommodations. Both business and leisure travelers stand to benefit. Marriott’s target market for communal room offerings spans a variety of customer bases, including families traveling together, athletic teams attending competitions, bachelor and bachelorette parties, and business travelers in need of private collaborative space.

Marriott has not yet announced when the communal guest room inventory will debut, but 2017 is shaping up to be a significant year for the expanding Element brand. This year, Marriott expects to open 14 Element hotels to bolster the existing worldwide inventory, which numbered 23 at the end of 2016.

Modern, forward-thinking Element properties make an ideal testing ground for new innovations. Dually focused on satisfying guests and sustainable operating practices, in 2008 Element became the only major hotel brand to pursue universal LEED certification for high-performance buildings.

At Element, distinctive details abound. Properties feature stylish, sustainable design influenced by the environment, as well as eco-friendly amenities such as loaner bikes and electric vehicle charging stations. Element’s signature Rise breakfast incorporates fresh, healthy ingredients into foods that are convenient to eat, such as smoothie shooters and hot breakfast wraps. Three times per week, guests are invited to eat, drink and mingle at Relax, the hotel’s version of happy hour.

Most business travelers think about hitting the hotel gym, but a new American Express-GBTA Business Travel Sentiment report shows which travelers actually do.

The winning group? Millennials.

Among business travelers who work out regularly at home, millennials were the most committed to maintaining their fitness, according to the survey. Forty-six percent of millennials—representing travelers 18 to 34 years old—said they are more likely to work out during every trip or almost every trip.

GenXers, defined as travelers 35 to 54 years old, came in second place. Forty-one percent said they go to the gym on every trip or almost every trip.

Baby Boomers, those 55 years and older, came in third, with 38 percent voicing a commitment to their hotel-gym workouts.

Top Reason for Skipping Hotel Gym Workouts

Although health consciousness is fashionable, the fact remains that less than half of the leading group, millennials, spends time exercising while on the road.

The survey asked, “Why not?”

The No. 1 reason was time. Seventy-one percent of those surveyed said their schedules were simply too busy to work in a workout.

No. 2 was energy. Forty-seven percent said they were too tired to switch to exercise mode.

The third-most-cited reason for passing on exercise was the break in routine: Travelers said they couldn’t shift into a new exercise regimen.

Meanwhile, 17 percent provided the most valid excuse of all: no gym at the hotel.

But that doesn’t mean that travelers don’t want to work out. Sixty-three percent said that when choosing their business hotel, the availability of fitness facilities or places nearby to take a walk are deciding factors.

The Cure for Workout Guilt?

Another trend noted in the survey may indirectly have an effect on business travelers’ habits at the gym.

American Express-GBTA found that business travelers are booking more nights with home-sharing services such as Airbnb and HomeAway, with a 20 percent spike over the last six months.

And short-term rentals rarely come with gyms.

The Meetings Mean Business Coalition (MMB) crossed over into Canadian territory today with a new licensing agreement with Business Events Industry Coalition of Canada (BEICC).

MMB’s newly created licensing agreement allows meetings industry organizations in other countries to use the coalition’s branding and messaging as an advocacy tool. BEICC is the coalition’s first international licensing partner and plans to change its name to Meetings Mean Business Canada (MMB Canada).

“We are more powerful when we come together to share information and advocate for our industry,” says Grant Snider, BEICC chair and president and CEO of Meeting Escrow. “Building on what has been accomplished by the BEICC, and aligning our efforts with the MMB coalition, will help us better communicate the importance of our $27 billion dollar, 341,000 full-time job industry in Canada and will help MMB create a template for expansion of this new industry-wide platform.”

The announcement comes on the heels of President Trump’s Monday meeting with Canadian Prime Minister Justin Trudeau, the first between the North American leaders. Trade, among other issues such as immigration and terrorism, weighed heavily on the encounter as Trump seeks to renegotiate the North American Free Trade Agreement.

“We are thrilled to welcome more international partners into the MMB family through this global expansion,” said Paul Van Deventer, president and chief executive officer of Meeting Professionals International and MMB co-chair. “This will allow us to extend the MMB brand in an authentic, grass roots and meaningful way, which truly emphasizes that meetings matter all over the world and provide a platform to engage the global events community.”

Far from being a rigid template, the licensing agreement offers the meetings industry professionals a way to build a worldwide lobbying effort that can be tailored to each region’s needs.

“Meeting face-to-face helps build stronger personal connections, yields new business opportunities and supports our local communities throughout Canada,” says Rose Timmerman-Gitzi, president of RTG Events and former BEICC chair. “We’re excited to embark on the transformation of the Business Events Industry Coalition of Canada.”

Business trip costs

If you did any business travel during the fourth quarter of 2016, it looks like you got a deal, depending on your destination.

According to Travel Leaders Corporate’s 4Q16 Data Trends report, the overall cost for domestic and international business trips—air, hotel and car rental—continued to decline.

– Cheapest quarter for business travel: The average cost of a U.S. business trip in 2016’s fourth quarter—air, hotel and car rental—dropped 4 percent, from $980 to $945. Internationally, trips for work cost an average of $2,167, an almost 17 percent decline over the same period in 2014.

– Cheaper hotel rooms: At $151, the average U.S. nightly rate decreased over the third quarter. Abroad, average rates also fell to $179.

– Cheapest quarter. Period: The average price of a domestic trip for the fourth quarter is the second-consecutive quarter that costs have fallen. It’s also the lowest it’s been since 2013.

Thanks to a few key factors—stronger U.S. dollar, cold weather patterns, the traditional business travel slowdown—the fourth quarter generally remains the cheapest time to take a work trip.

“There is a natural cycle in business travel, whereby the fourth quarter is typically slower than the rest of the year,” Travel Leaders Corporate President Gabe Rizzi said. “However, for those companies who continued to invest in travel, they experienced far greater returns based on the overall costs.”  

There are a few outliers to this overall downward cost trend:

– Hotel rates jumped in top U.S. destinations. Average nightly hotel rates in 22 of the top 25 U.S. markets went up over the past three years, with weather directly impacting northern and southern cities.

In Florida, for example, the hotel price per night rose an average of 15 percent over the third quarter of 2016 in Fort Lauderdale, Miami, Orlando and Tampa. Conversely, up north, Minneapolis had the largest decline, with hotel prices down 20 percent over the third quarter of 2016.

– Offsetting higher hotel costs with shorter stays.

– Car rental rates saw a slight increase. The national daily rate average ticked up about 3 percent, especially in the most popular destinations, with rate increases in 15 of the top 25 markets.

Looking ahead, Travel Leaders Corporate predicts that slight hotel cost increases will continue domestically and in Europe.

See the detailed analysis here: https://public.tableau.com/profile/travelleaderscorporate#!/

 

Trump's travel ban

President Trump’s travel ban—an executive order that had blocked travelers from Iraq, Syria, Iran, Libya, Somalia, Sudan and Yemen from entering the United States—has resulted in a huge loss for the travel industry.

As reported by Global Business Travel Association (GBTA) in a blog post, the business travel sector lost nearly $185 million in bookings the week after Trump’s travel ban went into effect.

Since then, a federal appeals court unanimously ruled Thursday to uphold a federal judge’s order to temporarily halt enforcement of the travel ban. Then, on Friday, the White House issued conflicting statements on its plans for appeal. It first indicated that the administration had declined to pursue its case further. Minutes later, the White House reversed course, saying it is considering going to the Supreme Court and rewriting the travel ban.   

Even so, the losses during this short period of time have been massive. As reported by GBTA, business travel transactions had been growing 1.2 percent the week leading up to the travel ban but fell 2.2 percent the week after the ban.

In a report surveying the possible consequences of the executive order, GBTA found that about 30 percent of travel professionals expected the ban to have an immediate negative impact on their business over the next three months and well into the next year.

Internationally, business travel insiders are also concerned about other countries’ response to the travel ban. Specifically:

Difficulty: 63 percent of those surveyed worried that travel would become more difficult for U.S. travelers.

Complications: 56 percent cited possible complications in travelling to the United States.

Threats: 54 percent feared increasing threats against U.S. travelers abroad.

“Business travel drives lasting business growth and is a leading indicator for jobs and the economy at large,” GBTA’s Executive Director Mike McCormick said. “Upholding the travel ban will clearly cause a rippling effect through the travel industry, ultimately hurting the economy. It also unleashes travel disruption like we saw when the order was first implemented.” 

With continuing uncertainty over the future of Trump’s travel ban, the travel industry could be bracing for more impacts.   

airbnb vs. hotels

Airbnb is taking a bigger bite out of the U.S. hotel business.

That’s according to CBRE, which tracks the San Francisco-based home-sharing company and its impact on the hotel industry. In a recent webinar, Jamie Lane, senior economist at CBRE Hotels’ Americas Research, dug into the numbers.

Here are six essential takeaways every hotel professional, meeting planner and business traveler should know.

1. Airbnb is growing fast

Airbnb listed 3.1 million property sites worldwide in 2016. In the U.S., the company’s short-term rental stock ballooned 70 percent, to 652,000 units from 383,000 in the previous year. Meanwhile, U.S. revenue rocketed 147 percent—to $6.8 billion from $2.7 billion during the same period.

2. Business travelers are buying in

Business travelers increasingly see Airbnb as an option for lodging. In 2017, 23 percent are expected to try Airbnb during a business trip, according to Morgan Stanley research. That compares with 12 percent in 2015.

3. New York, Oahu hit the hardest

CBRE measured Airbnb’s market impact by crunching the numbers using three measures:  Airbnb units vs. hotel rooms; Airbnb rates vs. hotel rates; and Airbnb’s growth in a market.

It found Airbnb has the greatest impact on the New York and Oahu hotel markets. Airbnb holds 21 percent of the nightly room supply in New York. And in New York and Oahu, its rental rates run at a 33 percent discount to a hotel room.

Rounding out the top 10 hardest-hit-cities list is Los Angeles at No. 3, followed by Miami, Oakland, Calif., San Francisco, Portland, Ore., Orlando, West Palm Beach and Seattle.

Airbnb nibbles at hotel RevPAR

In 2016, Airbnb shaved 0.9 percent off U.S. hotel  RevPAR—revenue per available room—based on Morgan Stanley research. That translates to $1.9 billion in lost business for hotels. It also represents about 4 percent of the U.S. hotel business—and roughly one-fifth of Airbnb’s revenue.

5. Hotels losing big-event boosts

Hotels typically get higher rates during big events, like the Super Bowl, but Airbnb is skimming that gravy. Take the SXSW Festival in Austin, Texas, for example. In 2013, hotels reaped a 27 percent boost on rates during the March extravaganza. In 2016, the Airbnb effect shrunk the premium to 17 percent.

6. Airbnb growth eases in key cities

Airbnb’s quest for global domination is not assured. In New York, San Francisco and Chicago, Airbnb has bowed to political pressure and instituted a one-host, one-home policy. The new regulations mean property managers cannot list multiple properties on the Airbnb website.

Airbnb is learning what hoteliers already know: You can’t fight City Hall.

U.S. meeting boycott trump travel ban

Since its signing on Jan. 27, President Donald Trump’s executive order banning travel from seven countries with largely Muslim populations has led to media attention, legal challenges and speculation about its impact. Meeting planners work in one of the industries most likely to be affected by this travel ban—particularly if they plan international meetings or conferences with many attendees who live abroad.

Academics in the United States and beyond have been some of the most vocal opponents to the executive order, as academic research and advancements rely on international communication and collaboration. Many scholars in fields ranging from healthcare to anthropology regularly travel to the United States to participate in meetings, so it could have a major impact on the meetings industry.

Academics Speak Out

Thousands of scholars have signed petitions indicating their intent to skip conferences and conventions held in the United States.

One petition has more than 6,300 signatures as of Feb. 9, while another has more than 42,000 supporters, including 62 Nobel Laureates and 30,000 faculty members at U.S.-based universities. “These bans, as proposed, have consequences that reach beyond the scope of national security. The unethical and discriminatory treatment of law-abiding, hard-working, and well-integrated immigrants fundamentally contravenes the founding principles of the United States,” write the petition authors.

Major scientific associations have also taken action to condemn the executive order, and, more concerningly, reconsider planning meetings in the United States. The American Anthropological Association, boasting 10,000 members, recently called on the administration to reverse its executive order.

The International Astronomical Union (IAU), which has nearly 3,000 members from 79 countries, released a statement expressing that it was “profoundly concerned” about the potential impact of the travel ban. In 2015, IAU held its General Assembly in Honolulu; the meeting was attended by more than 3000 astronomers and brought an estimated $10-20 million to the state. Science reports that the organizing committee for IAU will not hold any meetings in the United States until the ban is rescinded. Committee members have also urged other associations to do the same.

Impact on Meetings

The impact on SMERF meetings— previously one of the most reliable and recession-proof segments of the meetings market—could be substantial. Hotels and convention centers may be affected by loss of revenue from lower attendee numbers, as well as conferences being moved from U.S. venues to international locations.

In some cases, attendees and speakers have not voluntarily decided to skip meetings; rather, the ban has blocked them from attending. Corporate, association, medical and SMERF meeting planners should carefully consider their target audience when selecting a host city. If a large international contingent is expected, planners might have to consider an international locale that’s easier to access.

Since the executive order has recently been blocked by U.S. courts, it is hard to predict the long-term effects of the ban. The administration may rewrite and resubmit its travel restrictions, presenting new challenges for the travel, meetings and hospitality industries.

Organizers of ON24 Webinar World, a user conference for webinar marketing, share their experiences

Planning a conference is a complex process that doesn’t come with a handy user manual. You won’t find How to Plan Conferences for Dummies in any bookstore. So what’s a planner to do when faced with the daunting task of planning a first-of-its-kind conference?

Smart Meetings recently spoke with Anna Monogarova, field marketing manager at ON24, and Chrissy Devenny, Event Producer at Dynamo Events. Anna and Chrissy are planning Webinar World, ON24’s first user conference. ON24 is a leading tech company that specializes in webcasting and virtual events. Webinar World will be held Mar. 6–8, 2017 in San Francisco, California.

In an interview, Anna and Chrissy shared conference-planning tips to help planners learn from their experiences.

Start Early

chrissy devennyChrissy: My role with ON24 Webinar World started in early 2016 when the conference was just an idea. We took a step back to look at ON24’s business objectives and growth trajectory, and it really felt like the right time to get their customers together to collaborate, share best practices and ultimately shape the future of webinar marketing.

Set Clear Goals

anna monogarovaAnna: We are gathering hundreds of marketers together to focus on one thing: how to do better webinar marketing. It’s a customer conference at its core, but it’s also open to anyone who would find value in attending. We’re excited to welcome a diverse set of perspectives from marketers in every industry—from exciting, high-growth companies to some of the best-known brands in the world.

Choose a Host City that Fits Your Needs

Anna: The city was an easy pick for us for a few reasons. First, ON24 is headquartered in San Francisco, so it felt natural to look to our hometown as a host. Second, since this is a technology conference, it also felt right to be situated within the heart of Bay Area innovation. Lastly, who wouldn’t love a trip to the City by the Bay? We’re marketing our host city as key selling point of attending the conference.

Select a Theme that Supports Your Goals

Chrissy: We chose “Mastering the Art & Science of Webinar Marketing” because it encapsulates the main value proposition of the event. Attendees will leave as “masters,” having consumed all of the great content from the educational sessions. The sessions themselves, as well as the networking activities, will be centered around how marketers are combining both the creative and data-driven aspects of marketing to create the most powerful webinar marketing programs.

Collaborate Internally and Externally

Chrissy: It all started with a creative brainstorming session where we pulled in different stakeholders—internal teams included executive leadership, content marketing and field marketing. Externally, we brought in the creative design agency who would be doing all of the branding. ON24 also brought me in to provide a perspective on event logistics and how we could incorporate the key messaging into each facet of attendee experience. It really set the stage for a collaborative process the whole way through.

Consider the Value of Live Events

Anna: Though we tend to be fans of virtual events (wink wink!), we see live events as a part of a highly integrated marketing strategy. Our customer base is full of innovators in the field, and we couldn’t deny them the opportunity to come together in person to grow their networks, exchange ideas and learn from one another. We’re also inviting prospective customers, and customer advocacy is one of our most powerful marketing tools, so we just let them do the talking!

Create an Immersive, Interactive Experience

Anna: In addition to two days of expert sessions, we’ll also be incorporating a demo hall, networking activities including the Webinar World Party, and an event app with gamification to increase attendee engagement.

Design an Engaging Space

Chrissy: To elaborate on the demo hall, I have to say that this is definitely the most exciting one I’ve worked on. Attendees will have the chance to meet with webinar solutions experts and really dig into the science of creating engagement-based marketing programs, from virtual learning environments to webcasting to video. Logistically, this includes building out a ballroom with demo pods, a genius bar-esque area, and a whole lot of conversation sets to encourage meeting and idea-sharing during networking breaks and meals.

Don’t Forget Digital Marketing!

Anna: Digital marketing is highly important to include in a promotion plan around both digital and live events. One of the key messages of the conference is that the world of marketing has changed, and marketers need to be ever-smarter about how to reach an audience that is constantly bombarded with many messages across many channels. Fortunately, digital marketing is a channel that marketers can get incredibly strategic with. We’ll have multiple sessions dedicated to this very topic at the conference!

Don’t Be Afraid to Take Inspiration from Social Events

Chrissy: When you’re planning a corporate event, don’t be afraid to pull inspiration from social events. I feel that planners are unfairly bucketed into those two categories as “either-or.” But there’s a lot we can learn from each other in both camps. For me, I think the best wedding planners are masters at curating impactful guest experiences and telling a very specific story from the Save the Date to the newlywed send-off. Shouldn’t corporate meeting planners be doing the same storytelling? That’s what makes a truly unforgettable event, no matter the goal!

apple's tim cook augmented reality

While big-name forays into virtual reality make headlines, such as Steven Spielberg’s plan to build a VR storefront in Los Angeles this fall, another reality is steadily encroaching on real life: augmented reality.   

It’s easy to see why. Virtual reality requires, at minimum, the use of clunky goggles that users must secure their smartphones into and then strap onto their faces. Augmented reality, on the other hand, needs just two things to overlay images and data onto the real world: a smartphone with a camera and a Wi-Fi connection. Who doesn’t have that these days?

Augmented reality is “a big idea, like the smartphone,” Apple CEO Tim Cook said in a February interview with the The Independent. “The smartphone is for everyone; we don’t have to think the iPhone is about a certain demographic, or country or vertical market: It’s for everyone. I think AR is that big. It’s huge. I get excited because of the things that could be done that could improve a lot of lives.”

It’s one of the reasons why the mobile-augmented reality game Pokemon Go was such a blockbuster last summer.  

According to SmithBucklin’s annual trend report Circuit, Groupe Spéciale Mobile Association’s real-time mobile-device tracker found that the number of mobile devices is multiplying five times faster than the world’s population. The market potential is clear.

For professional meeting planners, mobile devices put the power of augmented reality into their hands. Trend reports such as Circuit are already forecasting the growing impact this ubiquitous technology can have in real-time conference planning, attendee outreach, educational programs, product demos and speeches.

Imagine attendees browsing the trade show floor in real life, looking around the event space and seeing these interactive items and information appear in front of them in the real world:

1. Event schedules, vendor information and social media posts
2. Memberships or products to purchase
3. A person’s name and the company or organization she represents, along with contact information

And though augmented reality is rapidly becoming a more accessible technology, virtual meetings are also advancing. Today’s launch of Chime, Amazon’s own virtual meeting service, shows that the world of meeting planning, especially business meetings, knows no boundaries.