The hospitality industry has long relied on meetings, incentives, conferences, and exhibitions (MICE) as a cornerstone of its business model. For decades, hotels with large ballrooms, flexible meeting rooms, and in-house catering were the go-to venues for corporate gatherings, trade shows, and conventions. However, the global shift toward remote work and the acceleration of digital tools has permanently altered this landscape. Virtual and hybrid events are no longer temporary solutions—they are an integral part of the new normal. Corey Maple explains that this evolution poses both challenges and opportunities for hotels, particularly in how they adapt their meeting and event spaces to remain competitive in the face of changing demand.
The Rise of Remote and Hybrid Events
The pandemic acted as a catalyst for the adoption of virtual conferencing platforms such as Zoom, Microsoft Teams, and Hopin. Businesses realized that events once thought to require physical presence could be conducted online with significant cost savings. Attendees benefited from reduced travel expenses, while organizations appreciated the ability to expand their reach globally without the logistical constraints of airfare, accommodations, and venue rentals.
Hybrid events, blending in-person attendance with virtual participation, quickly followed. They emerged as a compromise, offering the networking benefits of physical gatherings while maintaining the inclusivity and cost-effectiveness of online access. This model has since been embraced by industries ranging from tech and healthcare to finance and academia.
For hotels, however, this trend meant a decline in room bookings, food and beverage revenue, and traditional conference packages. A corporate event that once guaranteed hundreds of overnight guests and banquet sales may now result in only a fraction of those numbers.
The Impact on Hotel Demand
Decline in Large-Scale Conventions
Hotels that traditionally hosted massive conferences are seeing reduced demand for sprawling ballrooms and multi-day, city-wide events. Many organizations now prefer smaller, regional gatherings supplemented by virtual streams. This translates to lower occupancy rates tied directly to event tourism.
Shorter Booking Windows
With hybrid events, planning timelines are often compressed. Virtual components can be organized quickly, reducing the need for the long lead times hotels are accustomed to when booking meeting space and room blocks. This makes forecasting demand more difficult for revenue managers.
Reduced Ancillary Revenue
Hotels rely heavily on food, beverage, and ancillary services during conferences. When a significant portion of attendees participate remotely, catering orders shrink, and add-ons like networking receptions or gala dinners become less frequent.
Geographic Shifts
Demand is becoming more decentralized. Instead of traveling cross-country for a large national conference, many attendees are choosing to join smaller, local hubs or participate online. Hotels in secondary markets may benefit from these regionalized gatherings, while urban convention centers face steeper declines.
Reinventing Hotel Meeting and Event Spaces
While challenges are significant, hotels have the opportunity to reposition themselves as essential players in the hybrid event ecosystem. By adapting their spaces and services, they can continue to attract both corporate and leisure clients seeking innovative experiences.
1. Investing in Technology Infrastructure
To remain relevant, hotels must integrate advanced audiovisual capabilities directly into their meeting spaces. High-speed broadband, 4K video streaming, interactive displays, and professional sound systems are now baseline expectations for hybrid events. Hotels that partner with tech providers can offer turnkey solutions, reducing the need for outside vendors.
2. Creating Flexible, Modular Spaces
Traditional ballrooms may no longer be the draw they once were. Instead, hotels can design modular meeting rooms that adapt to groups of varying sizes. Movable walls, multipurpose furniture, and built-in charging stations help create spaces that serve both intimate workshops and larger broadcast-ready sessions.
3. Enhancing the In-Person Experience
If remote participation is here to stay, hotels must make in-person attendance irresistible. That means focusing on experiences that cannot be replicated online, such as elevated culinary offerings, curated networking activities, wellness integrations (like yoga breaks or spa packages), and immersive design features that foster collaboration.
4. Offering Hybrid Event Packages
Hotels can bundle physical space with digital solutions, providing clients with end-to-end event support. This might include professional live-streaming services, tech support staff, branded virtual platforms, and post-event analytics. Such packages position hotels as not just venues, but strategic partners in the success of hybrid gatherings.
5. Leveraging Sustainability
Sustainability is increasingly important to event planners. Hybrid models already reduce carbon footprints by minimizing travel. Hotels that further emphasize green practices—such as zero-waste catering, energy-efficient facilities, and carbon offset partnerships—will have a competitive edge when organizations evaluate venues.
Looking Ahead: Hotels as Hybrid Event Hubs
The shift toward hybrid events doesn’t mark the end of conference tourism—it marks its transformation. While large-scale gatherings may be fewer, the demand for connection, collaboration, and shared experiences remains strong. Hotels that view themselves not merely as physical spaces but as hubs for both digital and in-person engagement will thrive.
The hotels best positioned for success will be those that invest in technology, embrace flexibility, and curate unforgettable experiences for in-person attendees while simultaneously serving virtual audiences. By adapting, they can turn what might initially appear as a threat into an opportunity to redefine their role in the global meetings industry.
Ultimately, the future of hotel demand in the events sector hinges on reinvention. Those who innovate will remain at the center of conference tourism, proving that even in a digital-first world, the value of gathering—whether in a ballroom or on a livestream—endures.