February 2005 Article                      

Great year for hotels and DMCs

“The meetings industry is not only strong, but continues to grow exceptionally.  2004 was a phenomenal year for Krisam Group and GEP.  Both companies increased their bookings significantly over 2003.  We anticipate this same type of growth for both companies in 2005.” Chris White, chairman & CEO of Krisam Group & Global Events Partners, reports.

Krisam and GEP experienced record bookings for 2004. While their sister company, August Jackson also reported exceptional growth.

Here are the basic numbers:

• Krisam Group, a 17% increase in member hotel room revenue, exceeding $81 million. 
• GEP, a 24% increase in revenue for programs booked, totaling over $24 million. Chris White adds, “We were pleasantly surprised to see that the most significant jump was the 210% increase in revenue booked for our international partners, with a large portion of this representing U.S. outbound business.”
• The August Jackson Company, dramatic increases in billings and revenue with profits exceeding expectations.  To accommodate this growth, August Jackson’s Washington, DC headquarters moved to a larger location and a new office was opened in Chicago.

Jim Schultenover, president of Krisam Group commented, “These results are further evidence that our customers find great value in our three services - hotels, DMCs and production.  These three offerings make us unique in the industry.”

Krisam Group recently opened two offices on the West Coast. Krisam & GEP, together, recently added two operations in Europe to expand the global reach of all three companies. GEP now represents 71 partners worldwide.
 

Hotel and resort trends

Las Vegas, Florida (in spite of the hurricanes), and Arizona were the best performing hotel markets, Jim reports. He attributes this to a combination of good value, convenient transportation, meeting site options, and entertainment and recreation.  Boston, New York, and Washington were also strong, he says.

Other trends he noted:

• Spas. They are hot now, even with men.  “They play golf and then come in for a massage.”
• Short cycles.  “Fifty percent of business is booked and used within a calendar year.” This adds even greater value to Krisam’s partnership with GEP and August Jackson, Jim explains.  Having all three services in one place saves time.
• Uniqueness.  Planners are looking for something different, not the usual mold. Krisam specializes in independent hotels that are by their nature originals.
  
   

Top ten 2004 GEP destinations

In which locations did the DMCs do the most business? Below is a list of the top ten destinations, and their DMCs, in terms of revenue generated during 2004 .

Frank Andrews, president, The August Jackson Company states, “During 2004, August Jackson established multi-year relationships with key clients that will result in over $4 million in billings.  Like Krisam and GEP, we are looking forward to a fantastic 2005.”

San Francisco, CA,  Mana, Allison & Associates
San Diego, Palm Springs, & Orange County, CA, PRA Destination Management
Washington, DC, GEP
Spain, Creatur
New Orleans, LA, BBC Destination Management
Chicago, Chicago Is...,Inc.
New York, Empire Force Events
Italy, Newtours
Arizona,  Show Me Arizona, Inc.
Boston, The Best of Boston, Inc.