On the road again: high demand for travel will continue to put pressure on hotel rates. Photo Credit: Adobe stock/gumpapa
Northstar Meetings Group’s latest 2023 Convention Cities Index (CCi)
highlights high demand for travel, rising hotel rates, and shifting
safety levels.
The CCi uses an in-depth methodology and weighted ranking system to
determine the top 25 US cities and top 25 global destinations for
hosting large events.
Higher hotel rates remain firm
Data from the June 2023 CCi shows that room rates in the United
States have fallen slightly over the past six months but are above their
pre-pandemic levels. For the top 25 US destinations on this year’s
index, hotel rooms now average US$236, down 4% from six months ago but
still 19% higher than the 2020 CCi, which averaged US$198 a night. New
York continues to be the most expensive city in the US at $450, whilst
Indianapolis is the most affordable US city at just US$172.
The average hotel price for the top 25 global destinations for 2023
is US$167, on par with the previous CCi and US$3 less than the
pre-pandemic rate.
Room rates in Europe cost more than those in Asia, and average US$178
a night, just below the 2020 rate of US$181. The most expensive
European destination is London at US$263, while Dusseldorf, Germany, is
the most affordable, at US$137.
In Asia, room rates average US$116, down 13% from US$133 in 2020.
Prices for Chinese cities range between US$93 to US$99, while other
destinations — such as Bangkok and Singapore cost US$120 and US$240 per
night, respectively. Shanghai tops the global CCi list in terms of total
exhibition space, with some 603,870 sqm across two major venues, the
Shanghai New International Expo Center, and the National Exhibition and
Convention Center. The city has about 337,000 hotel rooms which average
US$95 a night.
From the latest Northstar Meetings Group/Cvent Meetings Industry
PULSE Survey, 75% of respondents who planned cross-border events
pre-Covid are doing so now. These planners are most interested in
booking with the type of destinations featured in the CCi, with the
majority (54%) saying the demand for major cities and city centres has
increased.
However, rising prices will influence site-selections decisions and
planners have ranked higher costs as their top concern in the past seven
cycles of the PULSE Survey, dating from March 2022 to March 2023.
Destination safety levels
Destinations are becoming safer, but planners must continue to keep
this category top-of-mind when selecting a host city for their
convention and consider all possible risk factors.
The safety scores of the top 25 global CCi cities have continued to
move upwards. The average safety rating in June 2022 was 68.4 out of 100
(higher numbers indicate a safer city). This increased to 73.72 in
December 2022 and now stays at 74.4 on the June 2023 CCi.
These scores are provided by the safety-awareness app GeoSure, which
measures seven factors, including health and medical data, night time
safety, women’s safety and LGBTQ+ safety. Singapore, with more than
73,000 hotel rooms, leads globally in safety, with the nation scoring an
impressive 92 out of 100 on GeoSure’s safety index, far above the
global CCi average of 74.4. However, room rates are nearly US$240 per
night.
Overall, the safety ratings in Asian cities surged 22% over the past
year, from an average score of 60 in June 2022 to 73.25 in June 2023. In
comparison, safety scores for the European destinations in our top 25
increased 5 percent year-over-year from an average of 75.08 to 78.58.
In the US, safety has not grown in line with its global CCi
counterparts. In fact, average scores have dropped slightly
year-over-year, from an average of 65.92 in June 2022 to 63.08 in June
2023. San Diego and Phoenix tied for the best safety rating on the US
list, earning scores of 73.
As safety levels shift regularly, planners are advised to monitor these statistics closely.
Methodology
The Convention Cities Index relies on extensive research and a
weighted methodology to calculate the final scores for each destination.
Cities are evaluated based on the following criteria:
· Convention centre size is the primary benchmark for CCi
consideration. US destinations must have at least 46,451 sqm of indoor
exhibit space, while global destinations must meet a minimum of 92,903
sqm of indoor exhibit space. These amounts are sourced directly from the
venues or convention and visitor bureaus. Some cities have more than
one convention centre that meets the exhibit space criteria. The CCi
data for these cities includes the total exhibit space and average
travel time from all eligible convention centres to the nearest
international airport.
· Total hotel rooms were provided by STR and account for all
guest rooms within the city. Past cycles of the CCi relied on research
via Google Maps to identify the number of rooms within a 15-minute walk
of the convention centre.
· Average travel times between the convention centres and
nearest international airport were calculated using Google Maps. Travel
times were recorded for 7am without traffic.
· Average room rates were based on Business Travel News’ 2023
Corporate Travel Index, which uses hotel data from Advito, HRS, Emburse
and Prime Numbers.
· Safety scores were provided by GeoSure, an app that
synthesises data from sources such as the US Centers for Disease Control
and Prevention, and the World Health Organization. Among factors
considered: health and medical concerns, nighttime safety, LGBTQ+
safety, women’s safety, theft and basic freedoms.