Tuesday, October 04, 2016

Hotel industry bets on events to grow next year

São Paulo-After a semester with low occupancy, rent of spaces within the hotels back to react, even before the hosting service. With better economic perspective for 2017, companies point to resumption of launches, conventions and training. However, price negotiation should continue to be a priority.
"The next six months will be better. This year was a heart test, "says the Vice President of marketing and distribution of hotel operators Forum of Brazil (FOHB), César Nunes. According to him, with the economic instability, companies no longer hiring for last hour, which ended with the predictability of revenue from hotels and gave strength to negotiate for the contractor.
In terms of revenue, he points out that in the first half the score was still good (equal to or greater than the same period of 2015), however, in the last six months of the year, the occupation was bad. "But for the next semester we see companies resuming hiring in advance."
Another factor that should boost the volume of new business is to search for smaller spaces. "This year, large events [performed in exhibition centers] have had a drop in the number of participants and, consequently, in size. It benefited from the hotels and the trend should continue, "he points out. On average, the spaces in the hotels are capable of 1200 people.
"In addition, the rise of the dollar brought events that had migrated to other countries", he adds. For Nunes, with the U.S. currency''s surge is possible that events that have migrated in the past, back to the Country.
Pricing
Even with the resumption of the volume of events, he explains that the negotiations remain heated. According to him, before 2014, the hotels could afford not to accept a price, due to the heated demand. However, with a 30% drop in the number of budget requests, the hotels must be more flexible. "The price was reduced between 5% and 10% in comparison to 2014," he explains.
"But when we talk about flexibility, not only are the values", points. In addition to negotiate the price, it indicates that the number of services offered in the package increased. Among them, the early check in and late check-out for those staying at the hotel, and flexibility of time for Assembly and disassembly of the event.
Another challenge is the reduction of air mesh in the country. "With the crisis, companies have reduced the supply of seats and the Northeast was the most affected," he explains. With it, the prospect is that targets in the region lose some events to places with greater air connection.
In addition, the Executive points to lack of spaces in the Country. "In the United States, cities with 200,000 or 300,000 inhabitants have the Convention Center," he says. In addition, the problem is not just of distant regions of the large centers. "Campinas, for example, is lacking in space", he comments. An example of this is the new network Convention Center Royal Palm which should open in 2018 and is already full agenda until 2020.
For him, one of the factors that hurt the construction of new spaces was the period of growth of the real estate market that valued the land and made designs for events. "The crisis has given a little space for new construction", he adds.
Without crisis
This lack of space, Tauá network inaugurated this weekend a new hall for events with capacity for 3000 people in your unit of Atibaia (SP) that required investment of 21,000,000 R$. According to the commercial Director of the network, Kelvin Ribeiro, despite the economic moment, the resort received a large number of budgets. "There is a need for spaces in the region."
For her, even around Sao Paulo, the resort was a model attractive. "We''re in the intermediary. We are not a luxury or economical ", points. In 2016, the only month that was below the performance of 2015 was June.
"Even with stronger negotiations with companies, they have left to do the event," he says. To complement the Mice service, she points out that the network will hold a sum of 75,000,000 R$ in construction of new rooms and recreation area. "We have focused on Association and confederations that carry out big events and in most classes meeting families come together," he points out.
The prospect for 2017 is the unit of Atibaia has high among 16% and 20% in revenue, of which 60% comes from the Mice. In 2015, the three resorts have made network R$ 125,000,000.
DCI News Item translated automatically
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