Making Sense of Todays Meetings Industry: Impacts and Outlook

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Making Sense of Todays Meetings Industry
Impacts and Outlook

• Presentation to AOCA Congress
• Buenos Aires, August 2009

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Todays Presentation

• How have we been impacted?
• The convention centre perspective
• The planner perspective
• The exhibition perspective
• The longer term view
• Whats the business outlook?
• What have we learned?
• How is the industry evolving?
• Four issues to watch

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Impacts and Outlook

• The Facility Perspective AIPC Member Survey 2009

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Has your business increased or decreased over
the past year ?
5
More or less confident of business prospects in
2009 than 2008 at this time?
6
Changes in business attributed to the global
economic crisis?
7
Types of business expected to increase /
decrease
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Impacts and Outlook

• The Client Perspective

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PCMA Planner Survey Impacts

• Revenue lost from cancelled/ postponed meetings
  in 2009/2010
• 781,000,000 in room revenue
• 2,500,000,000 in total revenue
• Reasons
• negative media coverage 41
• current economic conditions 37
• corporate downsizing 22

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Meetings Image a Major New Factor in the US

• 50 of US corporations surveyed by Maritz said
  they saw significant non-financial risks to
  holding events in current economic / political
  climate
• Meetings cancelled, downscaled in response to
  media attention
• Devastating to those with luxury or non- business
  image (i.e. Las Vegas)

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PCMA Planner Survey Outlook

• 56 expect attendance in 2009/10 to fall below
  comparable levels recorded in 2008
• 67 expect total 2009 meetings budget to decrease
  compared to 2008 (average cut 23)
• 41 will postpone, cancel or rebook meetings
  already booked in 2009/2010

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PCMA Planner Survey Outlook

• Upscale and luxury accommodations likely to see
  50 reduction in use in 2009/2010
• Planners intend to make greater use of
  alternative meeting methods, including webinars,
  teleconferencing
• 53 of surveyed planners expect impacts to carry
  over into 2010

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Impacts and Outlook

• The Exhibitor Perspective

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Tradeshow Week Survey

• Exhibitors are negative
• 81 have cut events from their 2009 show schedule
• 55 anticipate continuing to cut events over the
  next two years
• 74 would reduce exhibit space to conserve costs
• 65 have trimmed costs in the last year

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But Attendees are Still Positive
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Outlook 84 of Attendees will Participate in
More or the Same Number of Events Over the Next
Two Years
Survey Question Do you expect to participate in
more, fewer or the same number of conventions,
tradeshows and conferences in the next two
years?
Source Tradeshow Week Research Attendee Survey
June 2009 (309 responses)
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Outlook 88 of Attendees and Buyers Believe
Events will Continue to Be Critical for Product
Sourcing and Buying Over the Next Five Years
Survey Question Do you agree that conventions,
tradeshows and conferences will continue to be a
critical part of the business-to-business product
sourcing and buying process over the next five
years?
Source Tradeshow Week Research Attendee Survey
June 2009 (319 responses)
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Impacts and Outlook

• The Government Perspective

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Government Reactions Typically Counterproductive

• Politics of fear instead of logic
• Few understand the role of meetings in economic
  development / recovery
• Meeting cancellations, travel restrictions
  imposed in many areas
• Promotional budgets cut at worst time
• Capital projects cancelled although the time is
  right for construction

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The Good News

• Significant impacts but coming from best years
  ever
• Signs of economic recovery already appearing in
  many areas
• Few association meetings cancelled
• Majority of delegates expect their attendance to
  be stable or increase
• No real momentum for virtual meetings

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The Good News

• Exhibitors still see meetings and exhibitions as
  key tactic
• Meetings, exhibitions will play key role in
  economic growth and restructuring
• Government policy changes could have a big impact
• We have an opportunity to demonstrate the value
  of the industry

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The Longer Term View
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What Have We Learned?

• There are important regional and sector
  differences
• Business diversity is the best defence
• We're resilient but vulnerable
• Our owners and communities dont really
  understand what we do
• Need greater understanding, support for the
  economic role of meetings, but.
• We dont have ability to measure value

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Meetings are Evolving Anyway

• Increasing complexity
• Structural changes (reduced length, attendance
  etc.)
• Increasing need to demonstrate value growing
  emphasis on measurement
• Growing role for Internet technology
• More professional approach to meeting management

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Looking Ahead

• Four issues to keep an eye on
• The attendance factor
• The client relations imperative
• Evolving destination roles
• Our new image problem

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The Attendance Factor

• Attendance threatened by economic, time,
  sustainability factors
• Obscures the real impact of downturn
• A shared concern / opportunity with clients
• Calls for action, including
• Attendance building
• More pre / post promo / packaging
• Enhanced content and perceived value
• Measurability of meeting outcomes

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The Industry Relations Imperative

• Organizers are challenged by attendance,
  financial, resource issues
• Tougher negotiations, renegotiations
• Price, contract, payment issues at stake
• A new partnership attitude needed
• Opportunity to build stronger relationships for
  the future
• Flexibility, transparency are key

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Destination Relations are Evolving

• Hotel equation has shifted
• Centre owners expectations need adjustment
• Need to emphasize industrys broad economic
  impacts, role in recovery
• CVB relations need re-examination
• May have to distance centres from leisure
  messaging

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The Image Issue

• Pharma-codes started the process
• Bailout funding accelerated it
• Negative image resonated with public
• We contributed by using leisure messaging
• 70 of planners concerned about current image of
  meetings (PCMA)
• Need to re-image meetings
• Also requires enhanced content, better value ,
  measurable outcomes

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In Conclusion

• Weve seen lots of recessions this one was
  different in some key areas
• Government policy played a big role (bailout
  regulations, travel restrictions)
• Meetings image called into question, creating a
  new issue
• The industry was already evolving in a number of
  ways
• Better technological alternatives were available

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How Will Next 12 Months Look?

• A lot depends on recovery but many budgets are
  already set
• Association events will outperform corporate
  provide stability
• Attendance will be the big issue
• Exhibition, services spending down
• Booking, contracting likely delayed
• There will be a lot of renegotiation!
• New opportunities will emerge

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How Can the Industry Respond?

• Diversify business
• Work together on attendance building
• Take a more flexible approach to negotiations
• Innovate create value added services
• Help delegates document value
• Support your industry organizations

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Making Sense of Todays Meetings Industry
Impacts and Outlook

• Presentation to AOCA Congress
• Buenos Aires, August 2009