photograph by justin fox burks
Last year saw optimistic signs of recovery in Memphis’ travel and hospitality sector. The number of incoming travelers in 2021 jumped close to the city’s gold standard of 2019, and the city seemed poised to make a full recovery. In fact, the upward trajectory has actually exceeded expectations, thanks to the strong efforts of organizations like Memphis Tourism, and it looks like 2023 could be a banner year.
On the flip side, however, the number of local incoming corporate travelers hasn’t yet bounced back. With the prominence of digital meeting technology, and the recent struggles of inflation and rising fuel costs, it may be some time before Memphis unlocks its full potential as a meeting and events destination.
Leisure Travel
One constant since 2020 has been Memphis outperforming the national average when it comes to travel numbers. Memphis Tourism has been aggressive in keeping Memphis on the map over the last couple of years, targeting cities and travelers within a 600-mile radius. And so far, it’s worked.
“The level we’ve been at, even with our most aggressive estimates, we didn’t think we’d be here until very late in 2022 or early 2023,” says Kevin Kane, Memphis Tourism president and CEO. “So we’ve certainly rebounded way faster than we thought.”
Per the Memphis Tourism 2021 annual report, travelers booked 4.1 million hotel rooms last year, about 93 percent of 2019’s numbers. That exceeded the national average by around 5 percent. And overall, a little over 10.7 million visitors arrived in Memphis in 2021 (compared to 12.4 million in 2019), with an average trip duration of more than three days. “It’s a credit to what Memphis has to offer,” says Kane. “Instead of spending two nights, people have more freedom, and they’re choosing to stay a bit longer.”
In addition to the diversity of activities, restaurants, and culture here, Kane credits Memphis’ location as a key factor in the tourism resurgence, with visitors driving here from cities such as St. Louis, Chicago, Dallas, Houston, Atlanta, and Nashville.
“We were really aggressive in the regional market,” says Kane, “and looked at Memphis as a total drive market.” That bet paid off, with 38 percent of 2021 visitors coming from within that 600-mile radius. Thirty-four percent arrived from national markets, while the remaining 28 percent are what Kane classifies as proximity arrivals, which includes nearby cities like Jackson, Tennessee, or Tupelo, Mississippi. “We really kept the pedal to the metal when it came to promoting Memphis,” continues Kane.
Memphis Tourism had projected that growth to remain during 2022, and so far, the upward trajectory has continued apace. As of May this year, Memphis had sold almost 1.5 million hotel rooms, according to Kane, an increase of 2 percent in demand. “We don’t have most of our summer data in yet, but I know for sure that June was really strong for us. And I anticipate that we’re going to be ahead of the pace for the 2019 June/July numbers. We’re primed for a position of growth, but we still have to be cautious. You look at inflation, and Covid could make a resurgence too. But I’m optimistic.”
Looking ahead to 2023, Kane believes that Memphis can set a new standard for travel numbers. Memphis Tourism’s forecast for next year is that hotel room night demand will surpass 2019 levels by 4.3 percent. “I think this growth is sustainable,” says Kane. “We have more hospitality options — more hotels and Airbnbs. Our goal will be to amplify everything we do, and hopefully next year can be the new standard.”
photograph courtesy westin memphis beale street
The new Westin Memphis Beale Street.
Corporate Travel
While vacationers have come to Memphis en masse, businesses and corporations have still shown some hesitance in booking large events. The cost savings associated with digital conferences conducted via platforms like Zoom have certainly played a role, while Covid and inflation continue to be a cause for concern.
“We’re still waiting for that business and corporate travel to come back up,” says Kane, “but I can say that interest in the Renasant Convention Center is really high. We’ve made it a much more desirable location; it’s the most modern facility that serves the whole region. We have the biggest ballroom in a 250-mile radius. There are some hotel challenges; the Loews project didn’t work out, which hurt us. The Hyatts over at One Beale will help, totaling 750 rooms, but that’s not the total solution if we want to maximize that.”
Again, there’s reason for optimism. The boost in amenities over the past couple of years has made Memphis a more attractive destination, generating more buzz among national meeting and event planners. And while digital conferences are still going to be around, many organizations are relearning the value of face-to-face meetings.
“People are getting tired of screens and monitors,” says Kevin Brewer, a principal at Memphis-based LEO Events. “And they’re starting to really turn back to that face-to-face style where they can have direct interaction with employees, partners, or associates.”
And as companies remobilize to host large gatherings, they have to be mindful that event planning has changed. One of the key factors now, according to Brewer, is flexibility in terms of both logistics and budget. After several years with minimal direct interaction, many businesses have been gunning for meetings in a compressed time period. With plenty of interest, organizations need to plan out their dates far in advance and be ready to adapt their ideas.
“With supply chain and staffing issues, you need to make sure that you can pull off what you want your meeting to be,” says Brewer. “Hotels may not have enough rooms with so many people traveling for leisure. Plus, you look at inflation; your first idea might not be as affordable in terms of labor or food and beverage, or it might be tough to get products in. And then airlines are short staffed too, which adds another wrinkle.”
For the immediate future, Brewer envisions many corporate events having both digital and in-person components. That could mean live-streaming an event to a portion of a company that couldn’t make it in person, or broadcasting the session at a later date.
“Companies still want to have the same scope of outreach that they did before Covid, but there are more ways to do it now,” says Brewer. “A lot of what we’re seeing is that companies still want that live component, but it means figuring out the best way to bring that to their wider base. In some cases, companies just want to find a way to make their meeting content have a home somewhere digitally after the fact. Either way, these days demand a lot of flexibility, but it all comes down to the goals and objectives of your meeting or event.”
photograph by michael donahue
Southland Casino Racing
Memphis Travel by the Numbers
In 2021
- 4.1 million hotel rooms booked
- About 10.7 million visitors to Memphis
- Average trip duration of 3.12 days
- 38 percent of visitors came from regional markets
In 2022
- As of May, around 1.5 million hotel rooms sold
- So far this year, hotel demand is 2 percent higher than 2019
In 2023
- Hotel demand is expected to surpass 2019 levels by 4.3 percent
Information via Memphis Tourism
