PHILADELPHIA-The recession's hit on business travel has definitely taken its toll on the hotel sector. Conference centers feel even more pain, though, according to a recent report.

Last year, conference centers saw net operating income fall 43.5%, according to a report out of the locally based office of Colliers PKF Consulting USA. By contrast, the average hotel net income dropped 35.4% during the same period.

Revenues in the conference arena also took a hit. Total revenue per occupied room dropped 9.2%, with resort and executive centers experiencing the biggest drawbacks. On a brighter note, facilities in educational venues only experienced a 2.4% dip.

Dave Arnold, chief executive officer of Colliers PKF Consulting USA East, says that many organizations might be cutting back on meeting attendance because of the perception that it represents unneeded spending in this economic environment. "Never before have we seen the stigma attached to organizations that attempted to hold valuable training and planning conferences," he says. "With the average conference center occupancy level falling below 50%, the negative impact is obvious."

The "Trends in the Conference Center Industry" report surveyed conference center managers across the country. They expect a 4.8% increase in occupancy this year but only see complete meeting packages increasing 0.5%.