Hawaii’s group travel sellers are trying to close hundreds of thousands of dollars worth of deals and future bookings this week at a gathering of meeting and incentive planners.
Some 36 planners, who have business to book, are slated to take part in Destination Hawaii, a three-day conference that kicked off Tuesday at the Wailea Beach Marriott Resort & Spa on Maui. The event, which is the result of a partnership between the Hawaii Visitors and Convention Bureau and Successful Meetings magazine, is aimed at developing new business opportunities for the state’s visitor industry. After the Maui conference, most of the planners, who represent corporations, associations, incentive houses and events or groups, will make site visits to Kauai, Oahu, or Hawaii island.
"I’m confident it will lead to new bookings statewide while reinforcing awareness about the diversity of Hawaii’s offerings to all types of groups," said Mike Murray, HVCB vice president of sales and marketing for corporate meetings and incentives.
Properties that have participated in similar Successful Meetings events have booked between $100,000 and $150,000 and report longer-term benefits of about $800,000, said John Decesare, Publisher for the Northstar Meetings Group, which publishes M&C, Incentive, Meeting News and Successful Meetings, which has a circulation of 50,000 and is a primary planning resource for group travel decision-makers.
"What separates us from the pack is that we have a very stringent screening process. To come here, the meeting planners have to have a real prospect for business in Hawaii," Decesare said.
Thelma DeSouza, meeting planner for the San Francisco-based Pacific Coast Oto Ophthalmological Society, said she’s scouting accommodations and venues for 2013.
"There’s interest in Hawaii," DeSouza said. "There’s so much natural beauty here."
Despite concerns about rising airfares and higher food costs, DeSouza said clients desire to visit Hawaii.
"They love Hawaii," she said. "They’ll come as long as costs are within reason."
DeSouza anticipates signing a contract to bring business to Hawaii after the Destination Hawaii event.
"It’s a very active trade show," said Randy Hunt, president and co-owner of New York-based McVeigh Performance Group. "I’ll be meeting with several companies to get 2014 quotes for 300 people or more."
Business volume has returned after the recession, Hunt said.
"It’s been pretty steady for us. I’ve got 2013 all wrapped up and we are looking for 2014 and beyond," he said.
However, Hunt said, cost concerns are rising since the industry morphed from a buyer’s market to more of a seller’s market.
"Budgets have come down and prices are higher. Most companies have cut back on the number of nights and meals and on the swag," he said.
That said, clients are willing to pay a little more for destinations like Hawaii that "exceed expectations" and offer the "wow factor," Hunt said.
Still, Waikiki’s visitor industry must watch pricing, which has increased along with demand, said Beth Churchill, senior vice president of sales and marketing for Aqua Hotels & Resorts.
"Waikiki has been on fire in the leisure segment and prices are higher than (planners) are used to," Churchill said. "My concern is that we’ll out-price ourselves and lose some of the group business that layers on."
Planners who are flexible about times and locations are likely to find a hotel property in Hawaii within their budget, Murray said.
"From a Waikiki perspective, compression builds out and the neighbor island properties benefit in a huge way," he said.
The event comes at a time when the once recession-trodden industry is booking events again. Jon Conching, Hilton Worldwide regional vice president of sales and marketing for Hawaii and select resorts, said that while Hawaii’s group business has not returned to record-breaking levels, it is rising.
From January through July, 280,254 came to Hawaii to participate in a corporate meeting or convention or to cash in on an incentive, according to Hawaii Tourism Authority data. While that number represented a 5.9 percent rise in the number of people who came for conventions, corporate meetings were down 0.2 percent and incentive travel was down 2.5 percent.
Hawaii’s group business for Hilton is still about 10 percent to 15 percent behind the 2007 or 2008 peak, Conching said.
"Hawaii stacks up pretty well, but some cities like New Orleans, San Diego and San Francisco are doing fabulous," he said.
The price of airfare and the overall economic situation have dampened some demand for Hawaii, he said. Also, a small percentage of companies are still sensitive to Hawaii’s resort branding, said Angela Vento, Starwood Hotels and Resorts’ regional director of sales and marketing for Hawaii and French Polynesia.
"We’re still about 10 percent behind the peak," Vento said of Starwood’s performance in Hawaii.
It could be 2014 or 2015 before Hawaii’s group business travel returns to previous benchmarks, Conching said.
"But it’s definitely trending in the right direction," Vento said.