The rising cost of meetings is prompting planners to rethink where they host events. Lower hotel rates and service fees in smaller cities are making once-overlooked destinations more attractive.
According to the 2025 CWT-GBTA Global Business Travel Forecast, the average daily cost per meeting attendee is projected to reach $169, up from $162 in 2024. These costs include accommodations, food and beverage, AV, meeting space, activities, transportation, and technology.
Broader economic conditions are adding pressure. J.P. Morgan Research now puts the chance of a 2025 recession at 60%. New tariffs could raise prices across the board.
“Midsize cities can provide a good alternative for many events by providing substantial cost savings and strong service while still offering incredible cultural experiences. Average hotel group rates for the largest cities can be $285 or more, while midsize cities see average rates in the $215-$230 range, depending on the market,” said Steve O’Malley, COO, business events solutions, Maritz. “We will always want to look holistically at the objectives of each event and determine if a second or third-tier city will help our clients attract the right attendees, be the right geographic location for that group, and deliver the experience that the event needs to achieve its desired impact.”
Cost-Effective Alternatives Become Popular
As budgets tighten, planners are gravitating toward secondary and tertiary cities, where hotel and venue costs are significantly lower.
“This isn’t new, but economic headwinds are accelerating the shift,” said Mike Ferreira, founder of Meetings Made Easy. “Nickeling and diming in top-tier cities is crushing budgets. Clients are demanding more cost-effective alternatives.”
His firm increasingly recommends cities like Indianapolis, Detroit, Tempe, Salt Lake City, Kansas City, and Frisco, Texas, which offer strong airport access, short hotel transfer times, and competitive pricing, often without sacrificing service.
Planners are also considering cities like Tulsa. “You can get so much more for your money in Tulsa. We offer a competitive package at a fantastic cost for meeting planners looking to maximize the efficiency and impact of their budget,” said Renee McKenney, senior VP of Tourism, Tulsa Regional Chamber, and president of Tulsa Regional Tourism.
According to Cvent, average room rates in:
Tulsa are $91
Indianapolis: $119
Tempe: $129
Compare that to:
Boston: $287
New York City: $266
Miami: $199
Smaller Cities Scale Up for Meetings
To meet growing demand, many smaller cities are investing in meeting infrastructure.
- Tulsa is building a $390 million, 650-room hotel connected to the Arvest Convention Center, opening in 2029. The city says it lost 154 events in FY 2023–24 due to a lack of hotel inventory.
- Fort Lauderdale will open the Omni Fort Lauderdale Hotel in late 2025. It connects to the Broward County Convention Center and includes 120,000 square feet of flexible meeting space and six dining venues.
- Indianapolis is expanding the Indiana Convention Center by 143,500 square feet and adding a 50,000-square-foot ballroom, with a connected 800-room Signia by Hilton opening in 2026.
- Detroit is building a 600-room JW Marriott connected to Huntington Place Convention Center via skybridge. Completion is slated for early 2027.
- Savannah finished a $276 million expansion in February, doubling exhibit space and adding a 40,000-square-foot ballroom and 15 new meeting rooms.
“We often hear from clients after site visits in mid-tier cities that they get more value for their money,” Ferreira said. “The service is still fantastic, but the budget goes a lot further.”
