The marketplace has changed. Have you?

The increased demand for meetings, conventions and group incentive programs is rapidly changing the landscape in the meetings marketplace, particularly in the luxury-level and upper-tier sectors.

Combine this with an upswing in attendance at both corporate and association programs — with many organizations "busting through their blocks" with much higher attendance than originally anticipated — and planners may be increasingly at risk when it comes to securing the sites, facilities, precise patterns and terms and conditions they desire for their programs.

Despite these trends, some corporations, associations and businesses remain on the same buying cycle as in recent years, despite this growing demand, especially for the Four and Five Diamond hotels and resorts. Nearly 100 percent of executives and planners in 2009 identified the booking environment as a "seller's market," but only 63 percent now consider themselves to be in a "seller's market." A dramatic shift that will only grow wider.

In addition, the average program grew in size in 2012, and more than 50 percent of the groups that actualized in 2012 exceeded their original room block. And all of this was over 2011 levels. 2013 has already proven to be even stronger with pick-up for programs.

This shrinking inventory, combined with little new construction in the upper-tier and luxury-level sectors of the hotel industry to match demand, has made it increasingly challenging for planners booking in the luxury sector.

Next step?

What is the suggested course of action?

If possible, act soon to secure the dates, venues, rates and terms and conditions that will best serve your organization. We also recommend that planners select venues that can accommodate the potential growth in attendance at your programs.

You also may wish to consider a multiyear and/or multiproperty booking approach to get your dates confirmed into 2017 (and beyond) for the best deals. Since PKF Hospitality Research projects the seller's market will continue until at least 2017, the multiyear agreement approach provides the best long-term assurance and leverage for today's high-demand space.

So what are the benefits of making a multiyear and/or multiproperty commitment?

There are many. Planners who book multiyear — and sometimes multidestinations simultaneously — typically obtain the best value pricing, best terms and most desired dates for their organization.

Multiyear bookings at the same venue are particularly beneficial to the planner, often satisfying short- and long-term needs for both parties, and done on one contract negotiation.

Multidestination buying may be a little more complicated and difficult, but often the benefit outweighs the journey.

Making the decision

Ask a sales professional to show you the benefits of "locking in" multiyear and even multidestination agreements. Given the improving economy and growing demand for meeting space, this can prove to be quite beneficial financially to the planning organization.

As demand for program space continues to grow, there may be availability challenges for planners, particularly for 2014 and beyond. Clearly as the market shifts, larger room blocks that are achievable based upon the organization's program trends warrant more meeting and function space accordingly.

Short suiting room blocks may restrict larger spaces for programs that you may need later. So prudence says to consider the laws of supply and demand, and act wisely and soon to best serve your organization. You and your attendees will not regret it.