By: W. Scott Bailey | From: San Antonio Business Journal

As San Antonio has witnessed firsthand, convention business has become more competitive and less predictable, but with hotel occupancy lagging, securing more group bookings to augment leisure travel is essential.

Alamo City marketers may have some new tricks up their sleeves.

Visit San Antonio has set its sights on an in-state competitor that’s going to be at a distinct disadvantage over the next few years. It plans to fill that void and lure businesses that could find a permanent home some 70 miles to the South.

Demolition of the Austin Convention Center began several weeks ago to make way for a $1.6 billion replacement that’s not expected to be completed before spring 2029.

That leaves a gaping hole in Austin’s convention facilities infrastructure that will drive business elsewhere. Visit San Antonio believes the Alamo City can fill that void.

“Their convention center is going to be down for four years. They're not looking for any of the large groups,” new Visit San Antonio President and CEO Mario Bass said.

Other markets will look to seize on Austin’s closure.

“We better be really good at closing on those opportunities because I can guarantee that we're not in a silo over here,” Bass said.

The new Austin Convention Center will be nearly double the size of the old one, which spanned 365,000 square feet. It will be more versatile with a roughly 90,000-square-foot flex hall expected to draw more bookings.

But for now, Austin’s construction window is San Antonio’s opportunity, according to Bass. Hotel operators will embrace any additional business as the Alamo City’s occupancy rate over the first quarter of this year dropped below 58% — the lowest among major Texas markets.

Bass, named CEO in early June, believes it’s going to require more collaboration among groups, including Visit San Antonio, the San Antonio Visitor Alliance, and the San Antonio Hotel & Lodging Association, to seek and close more business.

Bass also insists that there is an opportunity to turn those wins, including those that might have otherwise been Austin’s, into repeat business.

“The rate of return, the intent to return if a group has a meeting in San Antonio, is 65%,” Bass said. “Once I get you here, half the battle is won.”