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A Comparative Outlook on the Global Business of Meetings and Events




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                                                         A Comparative Outlook on the Global Business of Meetings   1
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Content Guide                                                        2009:
Executive Summary ...................................02              The Year of the Economy
Budgets......................................................04
Meetings ....................................................05      2009 is shaping up as a decisive year for
Industry .....................................................07
Industry Responds.. ...................................09            the global meetings and events industry,
Venues........................................................10
Technology .................................................11       in which cost savings, value, flexibility,
CSR ............................................................12
Relationships .............................................13        and innovation will be the key drivers of
About FutureWatch 2009 .................14
                                                                     success.
Data collection for this survey was conducted
from November 11, 2008 - November 27, 2008.

*Please note:                                                        FutureWatch 2009 revealed the issues that
In every instance where the title “meeting
professional” is referred to, it is meant to be
                                                                     MPI members are facing and the practical
inclusive of the “event professional” as well.
                                                                     steps they are taking to position meetings
                                                                     and events as an essential resource in
                                                                     addressing the immediate challenges of a
                                                                     tightening economy.




                                                                                                     A Comparative Outlook on the Global Business of Meetings   1
Executive
Summary                                cover once the economy improves.
                                       • Meeting planners anticipate a 9%
                                       decrease in the number of meet-
                                                                                still see face-to-face meetings as the
                                                                                most effective tool for a variety of
                                                                                purposes that are central to their
Based on responses from 2,740          ings their organizations will hold       organizational missions: to build
meeting professionals in 53 coun-      in 2009, a 3% decrease in staffing,      relationships and trust, engender
tries, and in all 70 MPI chapters      and a 5% increase in the number of       a sense of community, conduct
and clubs, FutureWatch 2009 found      meetings they will personally plan,      highly interactive programs, en-
that:                                  manage, or support.                      gage participants at an emotional
                                                                                level, and demonstrate new prod-
• Meeting planners and suppliers       • Suppliers expect a 9% decrease         ucts that require physical use, from
expect that global economic uncer-     in the number of meetings their          medical devices to sporting goods.
tainty will lead to continued reduc-   organizations will support, a 4%
tions in bookings, travel, meeting     decrease in staffing, and a 9%           • Faced with a tough global mar-
and event budgets, staffing, and       increase in the number of meetings       ket, the meeting and event indus-
event attendance. The overall trend    they will personally plan, manage,
will continue, they say, until the     or support.
broader economy begins to re-
bound.                                 • Independent meeting manage-
                                       ment professionals are preparing
                                                                                Meeting planners
• Corporate meeting planners are
already changing the way they
                                       for a 0.5% decrease in the number
                                       of meetings their organizations will
                                                                                anticipate a 9%
do their jobs in response to seri-
ous budget reductions, and 17%
                                       support. But their expectations for
                                       the year ahead vary considerably
                                                                                decrease in the
predict further cuts in 2009. Twelve
percent of association planners
                                       by region, with US independents
                                       predicting a decline in business but
                                                                                number of
and 10% of government planners
expect budget cuts in the next year.
                                       their counterparts in EMEA, and
                                       especially Canada, expecting more
                                                                                meetings their
• Across all meetings, FutureWatch
                                       activity.                                organizations will
2009 respondents expect net profit
per meeting to increase by 2%,
                                       • In the second half of 2008, organ-
                                       izations cancelled an average of 4.1
                                                                                hold in 2009
while gross revenue per meeting        meetings, representing 8% of the
declines by 8%.                        total for that period. For 2009, orga-   try in 2009 will sharpen its focus
                                       nizations have already cancelled an      and streamline its activities to the
• As a percentage of organizations’    average of 3.4 meetings, represent-      necessities of economic life. Plan-
overall budgets, meetings will         ing 7% of all scheduled activity, at     ners’ operational decisions will be
decrease by 6% in 2009.                an average value of US$200,000 per       driven overwhelmingly by cost,
                                       meeting.                                 secondarily by practicalities like
• Attendance, per meeting, is ex-                                               airlift for destinations, and custom-
pected to increase by 3% in Europe,    • As funds become more scarce,           er service for hotels and meeting
Middle East, and Africa (EMEA)         meeting professionals expect a           venues.
and 9% in Canada, but decline by       greater effort to anticipate Return
5% in the United States. U.S. plan-    on Investment before a meeting           • The overall relationship between
ners expect 15% fewer attendees        is booked, based on past per-            planners and suppliers is becoming
at association meetings but 12%        formance, attendee satisfaction,         a buyer’s market, where planners
higher numbers at corporate meet-      adherence to budget, and the abil-       can expect to negotiate more gener-
ings.                                  ity to negotiate “extras” like free      ous concessions, incentives, rates,
                                       transportation and complimentary         and other contract provisions.
• Across all regions, 12% of asso-     meals. Competitive bids will be          Planners and suppliers alike expect
ciation planners expect conference     sought more frequently, while            to build more flexibility into their
attendance to decline in 2009, due     options such as open bars, gifts,        contracts to account for an uncer-
to corporate budget cuts and high      formal dinners, and entertainment        tain market.
travel costs. A small number of as-    will face greater scrutiny.
sociation planners also expect their                                            • Planners predict a scant 2% in-
organizations to lose members.                                                  crease in average expenditure per
Membership numbers and confer-         The Industry Responds                    meeting between 2008 and 2009.
ence attendance are expected to re-    • Meeting and event professionals        Just a year earlier, respondents to
FutureWatch 2008 predicted 11%
growth in meeting budgets and
a 22.6% increase in spending on indi-
vidual meetings.

• About 25% of meeting profession-
als around the world expect that a
reduction in the number of available
flights will reshape the way they
plan and conduct meetings.

• Although meeting organizations
will be on the lookout for employees
with the right training, education,
experience, and attitude, about 7%
of meeting professionals predict a
shortage of qualified staff in 2009.

• Planners and suppliers are still
in the market for technologies that
will help them meet specific objec-
tives related to attendee feedback,
onsite Internet access and wireless
networking, customer relationship
management, audio-visual services,
and buyer-seller relationships. How-
ever, they are not always satisfied
with the technology choices avail-
able to them.

• FutureWatch 2009 respondents
see virtual meetings as an important
trend, and many of them predicted a
shift to Web-based learning as a way
to control meeting and travel costs.
However, they are not entirely con-
vinced that the enabling technolo-
gies are ready for prime time.

• One in 10 FutureWatch 2009
respondents predicted a continu-
ing trend toward greener, more
environmentally friendly meetings,
with specific features ranging from
recycled name badges and biode-
gradable signage to reduced fuel
consumption and paperless meet-
ings.

• Although 61% of respondents re-
ported that corporate social respon-
sibility (CSR) was important to their
organizations, specific CSR initia-
tives may be delayed in organiza-
tions that see them as non-essential
in an uncertain economy.




              A Comparative Outlook on the Global Business of Meetings   3
Economy Impacts Budgets
and Attendance
Ultimately, the 2,740 meeting planners and suppliers who
responded to this year’s FutureWatch survey tie the health
of meetings and events to the broader economic picture.
Over the next year, they expect that global economic uncer-
tainty will lead to continued reductions in bookings, travel,
meeting and event budgets, staffing, and event attendance.
The overall trend will continue, they say, until the broader
economy begins to rebound.

Meeting Planners Predicting Budget Cuts In 2009                       Meeting Organization Budgets Per Meeting 2008-2009

  Sector                                                       %                                           All         Corporate Association
  Corporate Planners                                           17                                      2008    2009     2008     2009   2008         2009

  Association Planners                                         12      Under US$10,0000                15.9    16.7     14.1     15.3   17.1         17.6
  Government Planners                                          10      US$10,000-$49,999               24.3    24.8     23.9     23.4   25.5         26.6
                                                                       US$50,000-$99,000               20.0    19.9     22.0     23.4   25.5         26.6
                                                                       US$100,000-$199,999             12.3    12.5     12.6     12.7   11.8         12.2
• Corporate meeting planners are already changing the way
they do their jobs in response to serious budget reductions,           US$200,000-$499,999             13.4    12.5     15.1     13.0   11.9         12.6
and 17% predict further cuts in 2009. The biggest changes              US$500,000-$999,999              8.8      8.1    6.9      6.5    11.9         10.8
have occurred in the United States, but the pattern is repeat-
                                                                       US$1 million or more             5.2      5.5    5.3      5.8     5.2         5.4
ing in the Europe, Middle East, and Africa (EMEA) region
and Canada. Anticipated staff reductions will require meet-
ing professionals to work harder in 2009, either by stepping
up their sales and marketing or by taking on extra duties.
                                                                      Expected Change in Meeting Attendance, 2008-2009
• About 10% of government planners worldwide predict
budget cuts in 2009. Several reported that their meetings are                        Association      Corporate        Government       All Planners
“required,” and therefore less vulnerable to the economic
                                                                        EMEA             N/A             -28%*            -37%*            +3%*
pressures facing the private sector.
                                                                        Canada          +21%*            -31%*             0%*                 +9%
                                                                        US               -15%            +12%              -4%                 -5%
 Organizational Spend on Meetings 2008-2009 (%)
                                                                      *Accuracy may be limited by small sample size

                              All         Corporate Association       • Across the industry, FutureWatch 2009 respondents
                           2008   2009    2008   2009   2008   2009   predict that meeting attendance, per meeting, will increase
 Under US$10,0000          3.8      3.2   3.2    2.5    4.7    4.3    by 3% in EMEA and 9% in Canada, but decline by 5% in the
                                                                      United States. US planners expect 15% fewer attendees at
 US$10,000-$49,999         2.9      3.3   2.4    2.4    3.6    4.3    association meetings but 12% higher numbers at corporate
 US$50,000-$99,000         3.8      5.4   3.2    5.0    4.7    5.9    meetings
 US$100,000-$199,999       7.5      8.9   5.1    7.9    10.5   10.1
                                                                      • Across all regions, 12% of association planners expect
 US$200,000-$499,999       14.4   15.0    14.1   13.7   14.6   16.6   conference attendance to decline in 2009, due to corporate
 US$500,000-$999,999       6.9      9.8   8.6    7.9    13.5   12.3   budget cuts and high travel costs. A small number of as-
 US$1,000,000-$4,999,999   35.1   34.8    34.4   34.3   36.5   35.3
                                                                      sociation planners also expect their organizations to lose
                                                                      members. Membership numbers and conference attendance
 US$5,000,000 or more      25.6   19.6    29.0   26.3   11.9   11.2   are expected to recover once the economy improves.
More Profit from Fewer Meetings
Across all meetings, FutureWatch 2009 respondents expect net profit
                                                                         Profitability of Meetings, 2008-2009
per meeting to increase by 2%, while gross revenue per meeting de-
clines by 8%. However, while the next year will see no change in the                                                                         2008                2009
proportion of meetings that generate a profit, the association sector
will see a 16.5% decline in profitable meeting ventures, from 49.1%       Association                                                      49.1% 41.0%
of all meetings in 2008 to 41% in 2009. The increase in the proportion    Corporate                                                        21.3% 24.9%
of corporate meetings that generate a profit in 2009 will be almost,
but not quite, statistically significant.                                 All Meetings                                                     32.2% 32.4%

As a percentage of organizations’ overall budgets, meetings will fall
by 6% in 2009.


Fewer Meetings, More Work
FutureWatch 2009 respondents predict a decline in meeting and            Expected Change in Meetings Activity, 2008-2009
event volume and professional staffing over the next year, combined
with an increase in work load for individual planners and suppliers.       Category                      Total              Total                   Personally
Significantly, while client-side planners foresee a 9% drop in volume,                                  Meetings           Staffing                    Plan
independent meeting management professionals expect only a
marginal reduction of 0.5%. This either indicates a re-emergence of        Planners                       -9%                  -3%                          +5%
outsourcing, or independents’ hope that organizations will offset          Suppliers                      -4%                  -4%                          +9%
staff reductions by relying more heavily on external services.
                                                                           Independents                  -0.5%                 -4%                          +4%
• Meeting planners anticipate a 9% decrease in the number of meet-
ings their organizations will hold in 2009, a 3% decrease in staffing,
and a 5% increase in the number of meetings they will personally         Supplier Business Activity Trends, 2008-2009
plan, manage, or support. Planners expect to take direct responsibil-    40
                                                                                                                   39.5%

ity for 1% more meetings in EMEA, 3% more in Canada, and 6%
                                                                         35
more in the United States.
                                                                         30
• Suppliers expect a 4% decrease in the number of meetings their         25
organizations will support, a 4% decrease in staffing, and a 9%
                                                                         20
increase in the number of meetings they will personally manage or                        14.8%
support. The chart shows the differences in business activity trends     15
                                                                                11.0%
                                                                                                                            12.0%

by region, including the increases suppliers expect to see in their      10                                                                               7.6%
personal work loads.                                                      5
                                                                                                 4.8%
                                                                                                                                                                      2.0%

                                                                          0
                                                                                        Canada                     EMEA                                   U.S.

   ...independents hope that
                                                                         -5                                -3.3%                               -4.0%




   organizations will offset staff
                                                                                   Organizationally Supported M/E
                                                                                   Personally Supported M/E


   reductions by relying more
                                                                                   Number of Personal Proposals



   heavily on external services.                                         Expected Change in Meetings that Meeting
                                                                         Management Professionals’ Organizations Will
                                                                         Support, 2008-2009

• Independent meeting management professionals are preparing for                                        Planners             Suppliers                            All
a 0.5% decrease in the number of meetings their organizations will
support. But their expectations for the year ahead vary considerably       EMEA                           +7%                      +4%*                         +5%
by region, with US independents predicting a decline in business but       Canada                        +23%*                    +23%*                        +30%
their counterparts in EMEA, and especially Canada, expecting more
activity.                                                                  U.S.                           -2%                        -5%                         -3%

                                                                         *Accuracy may be limited by small sample size



                                                                                                                      A Comparative Outlook on the Global Business of Meetings   5
• Independents predict a 4% decrease in staffing, and a 4%
                                                                      increase in the number of meetings they will personally
Consistent with the results                                           plan, manage, or support. In EMEA and Canada, they also

in the second half of 2008,
                                                                      expect to spend considerably more time writing propos-
                                                                      als. Five percent of independents expect outsourcing to

organizations cancelled an
                                                                      increase in 2009, although fewer than 1% of client-side
                                                                      planners or suppliers expressed the same expectation.

average of 4.1 meetings, rep-                                         In the second half of 2008, organizations cancelled an aver-

resenting 8% of the total for                                         age of 4.1 meetings, representing 8% of the total for that
                                                                      period. For 2009, organizations have already cancelled an

that period. For 2009, orga-                                          average of 3.4 meetings, representing 7% of all scheduled
                                                                      activity, at an average value of US$200,000 per meeting.

nizations have already can-                                           Among corporate planners, 40% in North America and
                                                                      30% in EMEA already report cancellations for the coming
celled an average of 3.4 meet-                                        year, and nearly one-fifth of all meeting planners (19%)
                                                                      remain uncertain about meetings scheduled for 2009.
ings, representing 7% of all                                          In response to open-ended questions, about 2% of Future-
scheduled activity...                                                 Watch participants predicted that the long-term strength
                                                                      and value of the meetings industry would reassert itself,
                                                                      regardless of difficult times in 2009.

Top Six Influences on Meetings for 2009, by Respondent Type and Region

                                                           Planners                Suppliers         Meeting Management
                                                                                                        Professionals
 Greatest Influence                                   US   EMEA   Canada      US    EMEA    Canada    US     EMEA    Canada

 More economic concerns                                     1†        1       5       3        1       2       1        1
 Lower budgets                                        2     1†
                                                                      3†
                                                                              1      4†
                                                                                               2       1       3        2†
 More remote/virtual meetings                         1      3        4       3       2        4      3†                5
 More green meetings                                  4      2        2               1                        2        4
 Fewer face-to-face meetings                          3      4                2      4†
                                                                                                       4       5        2†
 Focus on value/ROI                                         1†                       4†        5†              4        3
 More in-house/drive meetings                         6               5       4                3
 Less overall travel                                                  3†                       5†
 Political uncertainty                                                                                3†
 Fewer “frills”                                       5
 Fewer industry jobs                                                                                   5
 Smaller meetings                                                             6                                6




† Two or more factors tied with the same percentage
Value for Money
As funds become more scarce, planners and suppliers will
                                                                 Expected Change in Proposal-Writing, Meeting
more often have to demonstrate a return on investment            Management Professionals, 2008-2009
 (ROI) for every meeting—and every part of a meeting.
About three-quarters of organizations currently conduct                                    Planners           Suppliers                           All
some form of in-house meetings evaluation, although the
                                                                   EMEA                       +7%                 +29%*                         +16%
most common measure is still attendee satisfaction, along
with revenue and adherence to budget.                              Canada                    +71%*                  +9%*                        +34%
                                                                   U.S.                        -2%                   +1%                         +0%
In 2009, meeting professionals expect a greater effort to
anticipate ROI before a meeting is booked, based on past         *Accuracy may be limited by small sample size

performance, attendee satisfaction, adherence to budget,
and the ability to negotiate “extras” like free transportation
and complimentary meals. Competitive bids will be sought         Meeting Planners Reporting Cancellations for
                                                                 2009, by Category
more frequently, while “frills” like open bars, gifts, formal
dinners, and entertainment for accompanying persons will                          Association Corporate Government
face greater scrutiny. Beyond immediate budget concerns,
these changes will reflect the growing need for meetings to        EMEA                 7%*                30%                              33%
be seen as fiscally responsible.                                   Canada                4%                40%                              33%
                                                                   U.S.                 25%                40%                              25%
Industry Influences                                              *Accuracy may be limited by small sample size
Once again for 2009, respondents were asked to list the in-
fluences that will have the greatest impact on the industry.
While answers varied by respondent type and region, the
common themes were clear: Almost all the major influ-
ences had to do with the economy, jobs, or the need for the      ...the common themes were
                                                                 clear: Almost all the major
industry to respond by cutting costs and demonstrating
value.

                                                                 influences had to do with
                                                                 the economy, jobs, or the
                                                                 need for the industry to re-
                                                                 spond by cutting costs and
                                                                 demonstrating value.




                                                                                                             A Comparative Outlook on the Global Business of Meetings   7
Within organizations, meetings decision-making is often
shaped by marketing, procurement, and travel depart-
ments. FutureWatch 2009 revealed differences in the way
client-side planners, third-party planners, and independent
suppliers perceived those influences. In-house planners                                              Influence of Various Departments on Canada Meeting Planners
reported that marketing has the most significant input to
                                                                                                     40
their work, generally followed by procurement. Consistent                                                                                                                    37.5%

with the results of MPI’s annual EventView survey, this                                              35                                                  33.9%
                                                                                                                                                              32.7%
finding confirms meetings as a leading component of the                                                    30.8%                                     30.8%
marketing mix in a time of economic turmoil.                                                         30
                                                                                                                                                                                  24.5%
                                                                                                     25
Third-party planners attributed the greatest influence
to procurement, followed by marketing. Supplier-side                                                 20
                                                                                                                      20.4%                 20.4%
                                                                                                                                                                         19.2%
meeting management professionals saw the most balance                                                                             15.4%
among procurement, marketing, and travel.                                                            15        12.5%                   12.5%


Nearly one in five meeting management professionals                                                  10
(18%) expect procurement, travel, or marketing depart-                                                5                                                                                      3.8% 3.6%
ments to influence their fees or business models in 2009,                                                                                                                                                  2.0%

leading to new fee structures or pricing methods, added                                               0
services, greater flexibility, or an increase in à la carte                                                 No Influence          Little Influence   Some Influence       Much Influence     Total Control

service options.                                                                                          Travel Department                 Marketing Department                 Procurement


 Influence of Various Departments on U.S. Meeting Planners                                           Influence of Various Departments on EMEA Meeting Planners
                                                      39.9%
 40                                                                                                  60
                                             37.2%                37.7%
                                                                                                                                                                             53.8%
 35
                                                                                                     50
 30                                              28.9%
                                                                                                                                                                 41.3%
                                                              26.1%
                                                                       25.2%                         40
 25                                                                                                                                                  32.6%                           32.6%

 20                       18.0%
                                    19.4%                                                            30                           26.1%
                               17.0%
                                                                                                                                                             23.1%
       15.1%
 15                                                                                                                                                                      19.6%
                  12.8%                                                                              20    17.4%
                                                                                                                          13.0%
 10        8.6%
                                                                                       7.8%                                            11.5%
                                                                                                                                            10.9%
                                                                                                     10                                                                                             7.7%
  5                                                                             3.6%
                                                                                              2.6%                 3.8%                                                                      4.3%
                                                                                                                                                                                                           2.2%

  0                                                                                                   0
        No Influence      Little Influence   Some Influence    Much Influence   Total Control               No Influence          Little Influence   Some Influence       Much Influence     Total Control

      Travel Department             Marketing Department              Procurement                         Travel Department                 Marketing Department                 Procurement



 Influence of Various Departments on                                                                 Influence of Various Departments on
 Planner Meeting Management Professionals                                                            Supplier Meeting Management Professionals
 40                                              37.5%
                                                                                                     50

 35                                          33.3%
                                                      34.1%                                                                                              42.5%

                                                                       29.5%                         40                                                          38.1%
 30                       28.2%
                                                                                                                                                     32.6%
                                                                  25.0%
 25                                22.7%                                                             30
       20.8%                   20.8%                                                                       26.5%                                                         26.5%
                                                                                                                                                                              24.6%24.6%
 20
                                                              16.9%
                                                                                                                                       20.1%
 15                                                                                                  20               17.2%
                  12.9%                                                                                                                     16.4%


 10        8.3%                                                                        8.3%                    10.4%              10.6%
                                                                                                     10
  5                                                                                                                                                                                          3.8%          3.7%
                                                                                                                                                                                                    2.2%
                                                                                0.8%          0.8%
  0                                                                                                   0
        No Influence      Little Influence   Some Influence    Much Influence   Total Control               No Influence          Little Influence   Some Influence       Much Influence     Total Control

      Travel Department             Marketing Department              Procurement                         Travel Department                 Marketing Department                 Procurement
The Industry
Responds
Flexibility and Innovation
Planners and suppliers expect to fall back on their own creativity to address a vari-
ety of logistical and competitive challenges in 2009.

• The overall relationship between planners and suppliers is becoming a
buyer’s market, where planners can expect to negotiate more generous
concessions, incentives, rates, and other contract provisions. Planners and
suppliers alike expect to build more flexibility into their contracts to account
for an uncertain market.

• On the other hand, about 25% of meeting professionals around the world
expect that a reduction in the number of available flights will reshape the way
they plan and conduct meetings. Arrival and departure windows will be extended,
and air travel will be booked further ahead whenever possible. Meetings will be con-
centrated more heavily in destinations with the most frequent, reliable air service, and
more planners will locate their meetings with drive times in mind.

• Although meeting organizations will be on the lookout for employees with the
right training, education, experience, and attitude, about 7% of meeting professionals
predict a shortage of qualified staff in 2009. Many organizations have responded with
expanded internal training programs; others plan to outsource specific duties.


Back to Basics
Faced with a tough global market, the meetings industry in 2009 will sharpen its
focus and streamline its activities to the necessities of economic life. Planners’
operational decisions will be driven overwhelmingly by cost, and secondarily
by practicalities like airlift for destinations, and customer service for hotels and
meeting venues.

 Factors Influencing Destination            Factors Influencing Hotel                   Factors Influencing Venue
 Selection, 2009                            Selection, 2009                             Selection, 2009
  Overall Cost                     26.0%      Overall Cost                    31.3%      Overall Cost                                              40.3%
  Airlift                          24.9%      Customer Service                14.0%      Customer Service                                          11.2%
  Travel Costs                     15.5%      Location relative to meeting    6.7%       Quality/condition of venue                                 8.2%
                                              purpose
  Location relative to meeting     11.4%                                                 Location relative to meeting                               6.6%
  purpose                                     Willingness to                  6.4%       purpose
                                              negotiate/be flexible
  Ease of access/travel            10.9%                                                 Meeting space requirements                                 6.6%
                                              Incentives/concessions          5.8%
  Proximity to                     7.1%                                                  Flexible/dedicated staff                                   5.4%
  members/attendees                           Room rates                      5.8%
                                                                                         Value                                                      5.1%
                                              Condition/quality of hotel      5.6%
                                              Meeting space requirements      5.1%
                                              Value                           5.1%


                                                                                                        A Comparative Outlook on the Global Business of Meetings   9
In 2009, as in 2008,
corporate planners will
consider a larger number of
facilities than their
association counterparts.
Meeting Planners’ Destination Choices, 2009
              United      Canada      Central      South            European    Asia     Other
                                                                                                   Strategic Use of Technology
              States                  America     America            Union                         Meeting professionals still see face-to-face meetings as
                                                                                                   the most effective tool for a variety of purposes that
  EMEA          12%         19%          7%            9%            36%        9%        8%
                                                                                                   are central to their organizational missions: to build
  Canada        12%         57%          4%            6%            11%        7%        3%       relationships and trust, engender a sense of com-
  U.S.          61%         13%          5%            5%             8%        6%        3%       munity, conduct highly interactive programs, engage
                                                                                                   participants at an emotional level, and demonstrate
                                                                                                   new products that require physical use, from medical
                                                                                                   devices to sporting goods.
 Meeting Planners’ Venue Choices, 2008-2009
                                                                                                   But planners and suppliers are still in the market for
                                          All                Corporate          Association        technologies that will help them conduct business
                                                                                                   more effectively. For the coming year, FutureWatch
                                   2009       2008†          2009      2008†    2009     2008†
                                                                                                   2009 respondents expressed greatest interest in tech-
  City hotel                       32%          35%          31%       35%      34%       38%      nologies that enable them to:
  Resort hotel                     23%          24%          25%       27%      18%       28%
                                                                                                   • Generate better attendee feedback on the meeting
  Airport/suburban                 13%          10%          14%       11%      11%       10%      experience
  hotel
                                                                                                   • Provide better Internet access onsite
  Conference center/                1-%         11%          8%         9%      11%       13%
  university                                                                                       • Introduce customer relationship management
                                                                                                   (CRM) programs or improve their existing ones
  Restaurant/club/                  8%          9%           9%        10%      7%        8%
  unique venue                                                                                     • Improve the audio-visual experience onsite
  Convention center                 9%          10%          7%         8%      12%       13%      • Facilitate the request for proposal (RFP) process
  Other                             6%                       6%                 6%
                                                                                                   • Identify and evaluate vendors, destinations, and
 † For comparison purposes, the 2008 percentages were recast and formatted to match calculation
 methods used in FutureWatch 2009. All relativity between the percentages originally reported in   venues
 FutureWatch 2008 is preserved.


Meeting planners’ decisions on venue type in 2009 will show little                                 • Facilitate wireless networking and other forms of
change over 2008. Increased use of airport hotels, a small decline                                 onsite communication
for city hotels, and a sharper drop for association meetings in
resort hotels, may indicate a preference for shorter meetings with                                 Technology to “get better feedback from attendees
lower costs, more straightforward logistics, and less extensive                                    about their meeting experience” emerged as a top
perks or amenities.                                                                                priority for planners, suppliers, and meeting manage-
                                                                                                   ment professionals, in all regions of the world, and
Planners foresee little change over the next year in the number of                                 more than half of respondents said the technology is
facilities they will consider for each meeting they hold. In 2009, as                              adequate and affordable. But other technology options
in 2008, corporate planners will consider a larger number of facili-                               received more critical review.
ties than their association counterparts.
                                                                                                   • Suppliers in all regions expressed strong interest in
                                                                                                   CRM technology. But more than half in EMEA, 52% in
                                                                                                   Canada, and 46% in the United States said the avail-
 Number of Facilities Considered Per Meeting, 2008-2009                                            able packages are either inadequate or unaffordable.

                             Association        Corporate           Government           All       • Planners placed a premium on technologies that
                                                                                                   “provide better access to the Internet at meeting
  2008 average                    5.20                7.10              5.69*            6.33      venues and hotels,” but 70% said current arrange-
                                                                                                   ments are inadequate or unaffordable.
  2009 average                    5.15                7.11              6.29*            6.32
  Change 2008-2009                -1%            No change              +11%*          No change   • FutureWatch 2009 respondents see virtual meetings
*Accuracy may be limited by small sample size
                                                                                                   as an important trend, and many of them predicted a
                                                                                                   shift to Web-based learning as a way to control meet-
Planners predicted a scant 2% increase in average expenditure per                                  ing and travel costs. However, they are not entirely
meeting between 2008 and 2009. Just a year earlier, respondents to                                 convinced that the enabling technologies are ready for
FutureWatch 2008 predicted 11% growth in meeting budgets and                                       prime time. Webcasting and virtual meeting technolo-
a 22.6% increase in spending on individual meetings.                                               gies ranked lowest for accessibility and affordability
                                                                                                   among planners and meeting management profes-
                                                                                                   sionals in EMEA and Canada, though US respondents
                                                                                                   were more optimistic.




                                                                                                                                 A Comparative Outlook on the Global Business of Meetings   11
Green Meetings and Corporate
FutureWatch 2009 uncovered      Social Responsibility
                                Perceptions and definitions of green meetings vary by
anecdotal evidence that CSR     region. Across the board, 10% of FutureWatch 2009 respon-
                                dents predicted a continuing trend toward greener, more
initiatives may be delayed in   environmentally friendly meetings, with specific features

organizations that see them
                                ranging from recycled name badges and biodegradable
                                signage to reduced fuel consumption and paperless meet-

as non-essential in an uncer-
                                ings.


tain economy.
                                In North America, a focus on green meetings was more
                                prevalent among planners and meeting management
                                professionals, less so among suppliers. Predictions for
                                2009 centered on increased use of virtual meeting technol-
                                ogy, greater emphasis on smaller, regional meetings, and
                                overall reductions in fuel use and carbon emissions. In
                                EMEA, suppliers were more likely to see green meetings
                                as a major focus for the coming year, and their priorities
                                had more to do with recycling, reuse, and corporate social
                                responsibility.

                                Importance of Green Meetings in 2009 by
                                Region and Member Type

                                                    Meeting      Meeting       Meeting
                                                    Planners   Management      Suppliers
                                                               Professionals
                                 EMEA                 14%          15%           19%
                                 Canada               15%          11%            5%
                                 U.S.                 12%          10%            6%


                                Although 61% of respondents reported that corporate
                                social responsibility (CSR) was important to their organi-
                                zations, FutureWatch 2009 uncovered anecdotal evidence
                                that CSR initiatives may be delayed in organizations
                                that see them as non-essential in an uncertain economy.
                                Planners and suppliers expressed statistically equal CSR
                                commitments on their organizations’ behalf, at 63% and
                                61% respectively. Meeting management professionals, at
                                just under 59%, showed a slightly lower degree of interest.
                                On the whole, CSR was a more significant area of concern
                                for meeting professionals outside the United States, and
                                particularly in EMEA.

                                In organizations with CSR programs, the specifics were
                                quite consistent across regions and respondent groups.
                                Most of them had identified in-house leaders to guide and
                                oversee their CSR efforts, and required employees to have
                                some understanding of what was going on and why. Some
                                organizations, particularly in EMEA, had dedicated CSR
                                departments, and a number of respondents said their
                                organizations had CSR champions in various departments.
A Business of Relationships
Suppliers’ strategies for evaluating communications show                      Meeting management professionals, meanwhile, expect to
that they see meetings as a business of relationships, as they                work for fewer clients in 2009. However, apart from a small
have in past years. Suppliers in the United States, Canada,                   number of independent supplier respondents in the EMEA
and EMEA reported that their competitive toolkits would                       region, they hope to plan or support more programs for
include the following approaches:                                             each remaining client.

Meeting Suppliers’ Value Adds, 2009                                           Expected Change in Client Activity, Meeting Management
                                                                              Professionals, 2008-2009
                                                  U.S.       Canada   EMEA
                                                                                                  Number of Clients                        Meetings Per Client

  Follow up communication                        20.4%       34.0%    6.8%                  Planners     Suppliers       All     Planners                Suppliers                All
                                                                                                                        MMP                                                      MMP
  Constant communication                         17.7%       10.6%    18.2%
                                                                               EMEA           -10%         -19%*        -15%         +3%                   -50%*                 -19%
  Build relationship with client                  8.6%       14.9%    18.1%
                                                                               Canada         -3%*         -22%*        -12%       +18%*                     0%*                 +10%
  Excellent customer service                      8.0%       10.6%
                                                                               U.S.            -4%          -15%        -10%         +6%                     +6%                  +6%
  More personal interaction                       6.1%        8.5%
                                                                              *Accuracy may be limited by small sample size
  Thank-you notes                                 5.3%
  Client incentives, complimentary                4.8%        6.4%
  services and amenities                                                      Meeting management professionals largely agree on the fee
                                                                              structures they use most frequently, whether they function
  Pre conference and post confer-                 4.8%        6.4%            as suppliers or planners. The main differences were a stron-
  ence meetings / reports
                                                                              ger preference for head count fees on the part of suppliers,
  Show appreciation                               4.8%        6.4%            and for project fees on the part of independent planners.
  Get feedback on what we could                   4.4%
                                                                              Frequency of Use, Meeting Management
  do better
                                                                              Professional Fee Structures
  Listen and confirm clients needs                4.4%       4.3%%    11.4%
                                                                                                                     Suppliers                         Planners
  Help save them money                                                6.8%
                                                                                                                 Use          Ever              Use                    Ever
  Customize work                                                      4.5%
                                                                                                                 Most         Use               Most                   Use
  Evaluate the outcome and                                            4.5%
                                                                               Head count fee                       1          17%                   5                 26%
  analyze results
                                                                               Project fee                          2          24%                   1                 57%
*Many respondents gave multiple responses to this question
                                                                               Percentage of cost                   3          17%                   3                 34%
The regional breakdowns show an emerging difference in
                                                                               Commission                           4          19%                   4                 41%
perspective. North American suppliers generally favor a
more transactional approach to customer outreach and con-                      Time-spent fee                       5          23%                   2                 52%
stant follow-up, with a small proportion of US respondents                     Retainer                             6          9%                    6                 18%
open to packages of incentives and amenities that gener-
                                                                               Partnership                          7          11%                   7                 15%
ated a degree of discomfort among planners responding to
past FutureWatch surveys. In EMEA, by contrast, supplier
respondents emphasized relationship-building, customiza-
                                                                              Although meeting management professionals often get to
tion, cost control, and an interest in measuring outcomes
                                                                              choose their preferred fee structure, independent planners,
and results.
                                                                              in particular, show a great deal of flexibility in working out
                                                                              the payment arrangements that will satisfy different clients.
In their responses to open-ended questions, suppliers from
all regions agreed that a high level of personal service and
openness will be the key to success in a highly competi-
tive marketplace. They stressed their commitment to being
flexible and helpful, and to delivering on the promises they
make.




                                                                                                                                A Comparative Outlook on the Global Business of Meetings   13
About FutureWatch
Each year, in partnership with American Express, Meeting Pro-              • 9% government
fessionals International (MPI) conducts a comprehensive survey             • 5% independent meeting planning companies
of global meeting and event professionals, aimed at spotting the           • 2% association management companies
key trends and competitive factors that will shape the global              • 2% hotels
industry in the coming year. FutureWatch 2009 is the seventh               • 5% other
installment of this one-of-a-kind study.
                                                                    The vast majority of suppliers represented in this survey worked
This year’s survey drew responses from a record 2,740 MPI mem-      in a sales and/or marketing capacity. They represented*:
bers representing 53 countries, all 69 existing MPI chapters, and      • 51% hotels
one MPI chapter in formation, with more than 15,000 responses          • 11% convention and visitor bureaus
to open-ended questions.                                               • 6% convention or conference center
                                                                       • 3% destination management company
FutureWatch 2009 respondents included:                                 • 2% consultants
  • 1,032 client-side planners, with an average 12 years of            • 2% independent meeting management companies
    industry experience                                                • 1% educational institutions
  • 637 meeting management professionals, with an average              • 1% incentive companies
    15 years of industry experience                                    • 18% other supplier
  • 959 suppliers, with an average 14 years of industry                • 4% other meeting facility
    experience                                                         • 2% other
  • 75 faculty and students
  • 4 lifetime, honorary, or retired members                        Of the meeting management professionals (MMPs) who took part
                                                                    in the survey, 58% (370) identified themselves as planners, 42%
The geographic range of the respondents reflected the rapid         (267) as suppliers.
growth of MPI’s global membership†:
  • 2,167 from the United States                                    Planner-side MMPs worked for departments responsible for event
  • 290 from the EMEA region                                        management, conferences and events, sales, global management,
  • 235 from Canada                                                 marketing, planning, and site selection. Six percent of planner
  • 30 from Central and South America                               MMP respondents were company owners.
  • 15 from the Asia-Pacific region
                                                                    More than half of supplier side MMPs (55%) worked in sales and/
Planners participating in the survey reported their current em-     or marketing, with the remainder drawn from operations, catering
ployment as*:                                                       or dining, management, or the executive offices. Fewer than 1% of
  • 51% corporate                                                   supplier MMP respondents were company owners.
  • 24% association                                                 *
                                                                        May not add to 100% due to rounding
                                                                    †
                                                                        Three respondents did not provide geographic location




About MPI
Meeting Professionals International (MPI), the meeting and event                   Publisher:
industry’s largest and most vibrant global community, helps our                    Bruce MacMillan, CA
members thrive by providing human connections to knowledge
                                                                                   Editorial and Design Support
and ideas, relationships, and marketplaces. MPI membership is
                                                                                   Trey Feiler, Chief Operating Officer, MPI
comprised of more than 24,000 members belonging to 70 chapters                     Bill Voegeli, President, Association Insights
and clubs worldwide.                                                               Mitchell Beer, CMM, President and CEO, The Conference
For additional information, visit mpiweb.org.                                      Publishers Inc.
                                                                                   Randy Crabtree, Marketing Manager, MPI
Meeting Professionals                                                              Jeff Daigle, Creative Director,
International Headquarters                                                         Jason Judy, Graphic Designer
                                       Canada                                      Robin Pittfied, Copywriter
3030 LBJ Freeway, Suite 1700           6519-B Mississauga Road                     Lauren Manford, PR Manager
Dallas, TX 75234-2759                  Mississauga, Ontario                        Val Bhakta, Marketing Specialist
tel +1-972-702-3000                    L5N 1A6
fax +1-972-702-3089                    Canada                                      Publications Staff
                                       tel +905-286-4807                           David Basler, Director of Publications and Editor in Chief
EMEA                                   fax +905-567-7191                           Blair Potter, Managing Editor
                                                                                   Jason Hensel, Association Editor
Europe/Africa                                                                      Michael Pinchera, Associate Editor
28, Rue Henri VII                      Asia Pacific                                Jessica States, Assistant Editor
L1725 Luxembourg                       73, Bukit Timah Rd
tel +352-2687-6141                     #04-01 Rex House                            Special Thanks
fax +352-2687-6343                     Singapore 229832                            American Express,
                                       tel +65-6496-5504                           sponsor of MPI’s FutureWatch 2009
Middle East                            fax +65-6336-2263
PC5 Offices,                                                                       FutureWatch 2009 is an official supplement to the
                                                                                   February 2009 issue of One+, the official publication
Education City,
                                                                                   of Meeting Professionals International.
Doha, Qatar
tel +974 454 8000                                                                  Printed by RR Donnelley & Sons Company
fax +974 454 8047
                                                                                   © 2009, Meeting Professionals International
                                                                                   All Rights Reserved

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Future watch2009

  • 1. A Comparative Outlook on the Global Business of Meetings and Events Presented by: A Comparative Outlook on the Global Business of Meetings 1
  • 3. Content Guide 2009: Executive Summary ...................................02 The Year of the Economy Budgets......................................................04 Meetings ....................................................05 2009 is shaping up as a decisive year for Industry .....................................................07 Industry Responds.. ...................................09 the global meetings and events industry, Venues........................................................10 Technology .................................................11 in which cost savings, value, flexibility, CSR ............................................................12 Relationships .............................................13 and innovation will be the key drivers of About FutureWatch 2009 .................14 success. Data collection for this survey was conducted from November 11, 2008 - November 27, 2008. *Please note: FutureWatch 2009 revealed the issues that In every instance where the title “meeting professional” is referred to, it is meant to be MPI members are facing and the practical inclusive of the “event professional” as well. steps they are taking to position meetings and events as an essential resource in addressing the immediate challenges of a tightening economy. A Comparative Outlook on the Global Business of Meetings 1
  • 4. Executive Summary cover once the economy improves. • Meeting planners anticipate a 9% decrease in the number of meet- still see face-to-face meetings as the most effective tool for a variety of purposes that are central to their Based on responses from 2,740 ings their organizations will hold organizational missions: to build meeting professionals in 53 coun- in 2009, a 3% decrease in staffing, relationships and trust, engender tries, and in all 70 MPI chapters and a 5% increase in the number of a sense of community, conduct and clubs, FutureWatch 2009 found meetings they will personally plan, highly interactive programs, en- that: manage, or support. gage participants at an emotional level, and demonstrate new prod- • Meeting planners and suppliers • Suppliers expect a 9% decrease ucts that require physical use, from expect that global economic uncer- in the number of meetings their medical devices to sporting goods. tainty will lead to continued reduc- organizations will support, a 4% tions in bookings, travel, meeting decrease in staffing, and a 9% • Faced with a tough global mar- and event budgets, staffing, and increase in the number of meetings ket, the meeting and event indus- event attendance. The overall trend they will personally plan, manage, will continue, they say, until the or support. broader economy begins to re- bound. • Independent meeting manage- ment professionals are preparing Meeting planners • Corporate meeting planners are already changing the way they for a 0.5% decrease in the number of meetings their organizations will anticipate a 9% do their jobs in response to seri- ous budget reductions, and 17% support. But their expectations for the year ahead vary considerably decrease in the predict further cuts in 2009. Twelve percent of association planners by region, with US independents predicting a decline in business but number of and 10% of government planners expect budget cuts in the next year. their counterparts in EMEA, and especially Canada, expecting more meetings their • Across all meetings, FutureWatch activity. organizations will 2009 respondents expect net profit per meeting to increase by 2%, • In the second half of 2008, organ- izations cancelled an average of 4.1 hold in 2009 while gross revenue per meeting meetings, representing 8% of the declines by 8%. total for that period. For 2009, orga- try in 2009 will sharpen its focus nizations have already cancelled an and streamline its activities to the • As a percentage of organizations’ average of 3.4 meetings, represent- necessities of economic life. Plan- overall budgets, meetings will ing 7% of all scheduled activity, at ners’ operational decisions will be decrease by 6% in 2009. an average value of US$200,000 per driven overwhelmingly by cost, meeting. secondarily by practicalities like • Attendance, per meeting, is ex- airlift for destinations, and custom- pected to increase by 3% in Europe, • As funds become more scarce, er service for hotels and meeting Middle East, and Africa (EMEA) meeting professionals expect a venues. and 9% in Canada, but decline by greater effort to anticipate Return 5% in the United States. U.S. plan- on Investment before a meeting • The overall relationship between ners expect 15% fewer attendees is booked, based on past per- planners and suppliers is becoming at association meetings but 12% formance, attendee satisfaction, a buyer’s market, where planners higher numbers at corporate meet- adherence to budget, and the abil- can expect to negotiate more gener- ings. ity to negotiate “extras” like free ous concessions, incentives, rates, transportation and complimentary and other contract provisions. • Across all regions, 12% of asso- meals. Competitive bids will be Planners and suppliers alike expect ciation planners expect conference sought more frequently, while to build more flexibility into their attendance to decline in 2009, due options such as open bars, gifts, contracts to account for an uncer- to corporate budget cuts and high formal dinners, and entertainment tain market. travel costs. A small number of as- will face greater scrutiny. sociation planners also expect their • Planners predict a scant 2% in- organizations to lose members. crease in average expenditure per Membership numbers and confer- The Industry Responds meeting between 2008 and 2009. ence attendance are expected to re- • Meeting and event professionals Just a year earlier, respondents to
  • 5. FutureWatch 2008 predicted 11% growth in meeting budgets and a 22.6% increase in spending on indi- vidual meetings. • About 25% of meeting profession- als around the world expect that a reduction in the number of available flights will reshape the way they plan and conduct meetings. • Although meeting organizations will be on the lookout for employees with the right training, education, experience, and attitude, about 7% of meeting professionals predict a shortage of qualified staff in 2009. • Planners and suppliers are still in the market for technologies that will help them meet specific objec- tives related to attendee feedback, onsite Internet access and wireless networking, customer relationship management, audio-visual services, and buyer-seller relationships. How- ever, they are not always satisfied with the technology choices avail- able to them. • FutureWatch 2009 respondents see virtual meetings as an important trend, and many of them predicted a shift to Web-based learning as a way to control meeting and travel costs. However, they are not entirely con- vinced that the enabling technolo- gies are ready for prime time. • One in 10 FutureWatch 2009 respondents predicted a continu- ing trend toward greener, more environmentally friendly meetings, with specific features ranging from recycled name badges and biode- gradable signage to reduced fuel consumption and paperless meet- ings. • Although 61% of respondents re- ported that corporate social respon- sibility (CSR) was important to their organizations, specific CSR initia- tives may be delayed in organiza- tions that see them as non-essential in an uncertain economy. A Comparative Outlook on the Global Business of Meetings 3
  • 6. Economy Impacts Budgets and Attendance Ultimately, the 2,740 meeting planners and suppliers who responded to this year’s FutureWatch survey tie the health of meetings and events to the broader economic picture. Over the next year, they expect that global economic uncer- tainty will lead to continued reductions in bookings, travel, meeting and event budgets, staffing, and event attendance. The overall trend will continue, they say, until the broader economy begins to rebound. Meeting Planners Predicting Budget Cuts In 2009 Meeting Organization Budgets Per Meeting 2008-2009 Sector % All Corporate Association Corporate Planners 17 2008 2009 2008 2009 2008 2009 Association Planners 12 Under US$10,0000 15.9 16.7 14.1 15.3 17.1 17.6 Government Planners 10 US$10,000-$49,999 24.3 24.8 23.9 23.4 25.5 26.6 US$50,000-$99,000 20.0 19.9 22.0 23.4 25.5 26.6 US$100,000-$199,999 12.3 12.5 12.6 12.7 11.8 12.2 • Corporate meeting planners are already changing the way they do their jobs in response to serious budget reductions, US$200,000-$499,999 13.4 12.5 15.1 13.0 11.9 12.6 and 17% predict further cuts in 2009. The biggest changes US$500,000-$999,999 8.8 8.1 6.9 6.5 11.9 10.8 have occurred in the United States, but the pattern is repeat- US$1 million or more 5.2 5.5 5.3 5.8 5.2 5.4 ing in the Europe, Middle East, and Africa (EMEA) region and Canada. Anticipated staff reductions will require meet- ing professionals to work harder in 2009, either by stepping up their sales and marketing or by taking on extra duties. Expected Change in Meeting Attendance, 2008-2009 • About 10% of government planners worldwide predict budget cuts in 2009. Several reported that their meetings are Association Corporate Government All Planners “required,” and therefore less vulnerable to the economic EMEA N/A -28%* -37%* +3%* pressures facing the private sector. Canada +21%* -31%* 0%* +9% US -15% +12% -4% -5% Organizational Spend on Meetings 2008-2009 (%) *Accuracy may be limited by small sample size All Corporate Association • Across the industry, FutureWatch 2009 respondents 2008 2009 2008 2009 2008 2009 predict that meeting attendance, per meeting, will increase Under US$10,0000 3.8 3.2 3.2 2.5 4.7 4.3 by 3% in EMEA and 9% in Canada, but decline by 5% in the United States. US planners expect 15% fewer attendees at US$10,000-$49,999 2.9 3.3 2.4 2.4 3.6 4.3 association meetings but 12% higher numbers at corporate US$50,000-$99,000 3.8 5.4 3.2 5.0 4.7 5.9 meetings US$100,000-$199,999 7.5 8.9 5.1 7.9 10.5 10.1 • Across all regions, 12% of association planners expect US$200,000-$499,999 14.4 15.0 14.1 13.7 14.6 16.6 conference attendance to decline in 2009, due to corporate US$500,000-$999,999 6.9 9.8 8.6 7.9 13.5 12.3 budget cuts and high travel costs. A small number of as- US$1,000,000-$4,999,999 35.1 34.8 34.4 34.3 36.5 35.3 sociation planners also expect their organizations to lose members. Membership numbers and conference attendance US$5,000,000 or more 25.6 19.6 29.0 26.3 11.9 11.2 are expected to recover once the economy improves.
  • 7. More Profit from Fewer Meetings Across all meetings, FutureWatch 2009 respondents expect net profit Profitability of Meetings, 2008-2009 per meeting to increase by 2%, while gross revenue per meeting de- clines by 8%. However, while the next year will see no change in the 2008 2009 proportion of meetings that generate a profit, the association sector will see a 16.5% decline in profitable meeting ventures, from 49.1% Association 49.1% 41.0% of all meetings in 2008 to 41% in 2009. The increase in the proportion Corporate 21.3% 24.9% of corporate meetings that generate a profit in 2009 will be almost, but not quite, statistically significant. All Meetings 32.2% 32.4% As a percentage of organizations’ overall budgets, meetings will fall by 6% in 2009. Fewer Meetings, More Work FutureWatch 2009 respondents predict a decline in meeting and Expected Change in Meetings Activity, 2008-2009 event volume and professional staffing over the next year, combined with an increase in work load for individual planners and suppliers. Category Total Total Personally Significantly, while client-side planners foresee a 9% drop in volume, Meetings Staffing Plan independent meeting management professionals expect only a marginal reduction of 0.5%. This either indicates a re-emergence of Planners -9% -3% +5% outsourcing, or independents’ hope that organizations will offset Suppliers -4% -4% +9% staff reductions by relying more heavily on external services. Independents -0.5% -4% +4% • Meeting planners anticipate a 9% decrease in the number of meet- ings their organizations will hold in 2009, a 3% decrease in staffing, and a 5% increase in the number of meetings they will personally Supplier Business Activity Trends, 2008-2009 plan, manage, or support. Planners expect to take direct responsibil- 40 39.5% ity for 1% more meetings in EMEA, 3% more in Canada, and 6% 35 more in the United States. 30 • Suppliers expect a 4% decrease in the number of meetings their 25 organizations will support, a 4% decrease in staffing, and a 9% 20 increase in the number of meetings they will personally manage or 14.8% support. The chart shows the differences in business activity trends 15 11.0% 12.0% by region, including the increases suppliers expect to see in their 10 7.6% personal work loads. 5 4.8% 2.0% 0 Canada EMEA U.S. ...independents hope that -5 -3.3% -4.0% organizations will offset staff Organizationally Supported M/E Personally Supported M/E reductions by relying more Number of Personal Proposals heavily on external services. Expected Change in Meetings that Meeting Management Professionals’ Organizations Will Support, 2008-2009 • Independent meeting management professionals are preparing for Planners Suppliers All a 0.5% decrease in the number of meetings their organizations will support. But their expectations for the year ahead vary considerably EMEA +7% +4%* +5% by region, with US independents predicting a decline in business but Canada +23%* +23%* +30% their counterparts in EMEA, and especially Canada, expecting more activity. U.S. -2% -5% -3% *Accuracy may be limited by small sample size A Comparative Outlook on the Global Business of Meetings 5
  • 8. • Independents predict a 4% decrease in staffing, and a 4% increase in the number of meetings they will personally Consistent with the results plan, manage, or support. In EMEA and Canada, they also in the second half of 2008, expect to spend considerably more time writing propos- als. Five percent of independents expect outsourcing to organizations cancelled an increase in 2009, although fewer than 1% of client-side planners or suppliers expressed the same expectation. average of 4.1 meetings, rep- In the second half of 2008, organizations cancelled an aver- resenting 8% of the total for age of 4.1 meetings, representing 8% of the total for that period. For 2009, organizations have already cancelled an that period. For 2009, orga- average of 3.4 meetings, representing 7% of all scheduled activity, at an average value of US$200,000 per meeting. nizations have already can- Among corporate planners, 40% in North America and 30% in EMEA already report cancellations for the coming celled an average of 3.4 meet- year, and nearly one-fifth of all meeting planners (19%) remain uncertain about meetings scheduled for 2009. ings, representing 7% of all In response to open-ended questions, about 2% of Future- scheduled activity... Watch participants predicted that the long-term strength and value of the meetings industry would reassert itself, regardless of difficult times in 2009. Top Six Influences on Meetings for 2009, by Respondent Type and Region Planners Suppliers Meeting Management Professionals Greatest Influence US EMEA Canada US EMEA Canada US EMEA Canada More economic concerns 1† 1 5 3 1 2 1 1 Lower budgets 2 1† 3† 1 4† 2 1 3 2† More remote/virtual meetings 1 3 4 3 2 4 3† 5 More green meetings 4 2 2 1 2 4 Fewer face-to-face meetings 3 4 2 4† 4 5 2† Focus on value/ROI 1† 4† 5† 4 3 More in-house/drive meetings 6 5 4 3 Less overall travel 3† 5† Political uncertainty 3† Fewer “frills” 5 Fewer industry jobs 5 Smaller meetings 6 6 † Two or more factors tied with the same percentage
  • 9. Value for Money As funds become more scarce, planners and suppliers will Expected Change in Proposal-Writing, Meeting more often have to demonstrate a return on investment Management Professionals, 2008-2009 (ROI) for every meeting—and every part of a meeting. About three-quarters of organizations currently conduct Planners Suppliers All some form of in-house meetings evaluation, although the EMEA +7% +29%* +16% most common measure is still attendee satisfaction, along with revenue and adherence to budget. Canada +71%* +9%* +34% U.S. -2% +1% +0% In 2009, meeting professionals expect a greater effort to anticipate ROI before a meeting is booked, based on past *Accuracy may be limited by small sample size performance, attendee satisfaction, adherence to budget, and the ability to negotiate “extras” like free transportation and complimentary meals. Competitive bids will be sought Meeting Planners Reporting Cancellations for 2009, by Category more frequently, while “frills” like open bars, gifts, formal dinners, and entertainment for accompanying persons will Association Corporate Government face greater scrutiny. Beyond immediate budget concerns, these changes will reflect the growing need for meetings to EMEA 7%* 30% 33% be seen as fiscally responsible. Canada 4% 40% 33% U.S. 25% 40% 25% Industry Influences *Accuracy may be limited by small sample size Once again for 2009, respondents were asked to list the in- fluences that will have the greatest impact on the industry. While answers varied by respondent type and region, the common themes were clear: Almost all the major influ- ences had to do with the economy, jobs, or the need for the ...the common themes were clear: Almost all the major industry to respond by cutting costs and demonstrating value. influences had to do with the economy, jobs, or the need for the industry to re- spond by cutting costs and demonstrating value. A Comparative Outlook on the Global Business of Meetings 7
  • 10. Within organizations, meetings decision-making is often shaped by marketing, procurement, and travel depart- ments. FutureWatch 2009 revealed differences in the way client-side planners, third-party planners, and independent suppliers perceived those influences. In-house planners Influence of Various Departments on Canada Meeting Planners reported that marketing has the most significant input to 40 their work, generally followed by procurement. Consistent 37.5% with the results of MPI’s annual EventView survey, this 35 33.9% 32.7% finding confirms meetings as a leading component of the 30.8% 30.8% marketing mix in a time of economic turmoil. 30 24.5% 25 Third-party planners attributed the greatest influence to procurement, followed by marketing. Supplier-side 20 20.4% 20.4% 19.2% meeting management professionals saw the most balance 15.4% among procurement, marketing, and travel. 15 12.5% 12.5% Nearly one in five meeting management professionals 10 (18%) expect procurement, travel, or marketing depart- 5 3.8% 3.6% ments to influence their fees or business models in 2009, 2.0% leading to new fee structures or pricing methods, added 0 services, greater flexibility, or an increase in à la carte No Influence Little Influence Some Influence Much Influence Total Control service options. Travel Department Marketing Department Procurement Influence of Various Departments on U.S. Meeting Planners Influence of Various Departments on EMEA Meeting Planners 39.9% 40 60 37.2% 37.7% 53.8% 35 50 30 28.9% 41.3% 26.1% 25.2% 40 25 32.6% 32.6% 20 18.0% 19.4% 30 26.1% 17.0% 23.1% 15.1% 15 19.6% 12.8% 20 17.4% 13.0% 10 8.6% 7.8% 11.5% 10.9% 10 7.7% 5 3.6% 2.6% 3.8% 4.3% 2.2% 0 0 No Influence Little Influence Some Influence Much Influence Total Control No Influence Little Influence Some Influence Much Influence Total Control Travel Department Marketing Department Procurement Travel Department Marketing Department Procurement Influence of Various Departments on Influence of Various Departments on Planner Meeting Management Professionals Supplier Meeting Management Professionals 40 37.5% 50 35 33.3% 34.1% 42.5% 29.5% 40 38.1% 30 28.2% 32.6% 25.0% 25 22.7% 30 20.8% 20.8% 26.5% 26.5% 24.6%24.6% 20 16.9% 20.1% 15 20 17.2% 12.9% 16.4% 10 8.3% 8.3% 10.4% 10.6% 10 5 3.8% 3.7% 2.2% 0.8% 0.8% 0 0 No Influence Little Influence Some Influence Much Influence Total Control No Influence Little Influence Some Influence Much Influence Total Control Travel Department Marketing Department Procurement Travel Department Marketing Department Procurement
  • 11. The Industry Responds Flexibility and Innovation Planners and suppliers expect to fall back on their own creativity to address a vari- ety of logistical and competitive challenges in 2009. • The overall relationship between planners and suppliers is becoming a buyer’s market, where planners can expect to negotiate more generous concessions, incentives, rates, and other contract provisions. Planners and suppliers alike expect to build more flexibility into their contracts to account for an uncertain market. • On the other hand, about 25% of meeting professionals around the world expect that a reduction in the number of available flights will reshape the way they plan and conduct meetings. Arrival and departure windows will be extended, and air travel will be booked further ahead whenever possible. Meetings will be con- centrated more heavily in destinations with the most frequent, reliable air service, and more planners will locate their meetings with drive times in mind. • Although meeting organizations will be on the lookout for employees with the right training, education, experience, and attitude, about 7% of meeting professionals predict a shortage of qualified staff in 2009. Many organizations have responded with expanded internal training programs; others plan to outsource specific duties. Back to Basics Faced with a tough global market, the meetings industry in 2009 will sharpen its focus and streamline its activities to the necessities of economic life. Planners’ operational decisions will be driven overwhelmingly by cost, and secondarily by practicalities like airlift for destinations, and customer service for hotels and meeting venues. Factors Influencing Destination Factors Influencing Hotel Factors Influencing Venue Selection, 2009 Selection, 2009 Selection, 2009 Overall Cost 26.0% Overall Cost 31.3% Overall Cost 40.3% Airlift 24.9% Customer Service 14.0% Customer Service 11.2% Travel Costs 15.5% Location relative to meeting 6.7% Quality/condition of venue 8.2% purpose Location relative to meeting 11.4% Location relative to meeting 6.6% purpose Willingness to 6.4% purpose negotiate/be flexible Ease of access/travel 10.9% Meeting space requirements 6.6% Incentives/concessions 5.8% Proximity to 7.1% Flexible/dedicated staff 5.4% members/attendees Room rates 5.8% Value 5.1% Condition/quality of hotel 5.6% Meeting space requirements 5.1% Value 5.1% A Comparative Outlook on the Global Business of Meetings 9
  • 12. In 2009, as in 2008, corporate planners will consider a larger number of facilities than their association counterparts.
  • 13. Meeting Planners’ Destination Choices, 2009 United Canada Central South European Asia Other Strategic Use of Technology States America America Union Meeting professionals still see face-to-face meetings as the most effective tool for a variety of purposes that EMEA 12% 19% 7% 9% 36% 9% 8% are central to their organizational missions: to build Canada 12% 57% 4% 6% 11% 7% 3% relationships and trust, engender a sense of com- U.S. 61% 13% 5% 5% 8% 6% 3% munity, conduct highly interactive programs, engage participants at an emotional level, and demonstrate new products that require physical use, from medical devices to sporting goods. Meeting Planners’ Venue Choices, 2008-2009 But planners and suppliers are still in the market for All Corporate Association technologies that will help them conduct business more effectively. For the coming year, FutureWatch 2009 2008† 2009 2008† 2009 2008† 2009 respondents expressed greatest interest in tech- City hotel 32% 35% 31% 35% 34% 38% nologies that enable them to: Resort hotel 23% 24% 25% 27% 18% 28% • Generate better attendee feedback on the meeting Airport/suburban 13% 10% 14% 11% 11% 10% experience hotel • Provide better Internet access onsite Conference center/ 1-% 11% 8% 9% 11% 13% university • Introduce customer relationship management (CRM) programs or improve their existing ones Restaurant/club/ 8% 9% 9% 10% 7% 8% unique venue • Improve the audio-visual experience onsite Convention center 9% 10% 7% 8% 12% 13% • Facilitate the request for proposal (RFP) process Other 6% 6% 6% • Identify and evaluate vendors, destinations, and † For comparison purposes, the 2008 percentages were recast and formatted to match calculation methods used in FutureWatch 2009. All relativity between the percentages originally reported in venues FutureWatch 2008 is preserved. Meeting planners’ decisions on venue type in 2009 will show little • Facilitate wireless networking and other forms of change over 2008. Increased use of airport hotels, a small decline onsite communication for city hotels, and a sharper drop for association meetings in resort hotels, may indicate a preference for shorter meetings with Technology to “get better feedback from attendees lower costs, more straightforward logistics, and less extensive about their meeting experience” emerged as a top perks or amenities. priority for planners, suppliers, and meeting manage- ment professionals, in all regions of the world, and Planners foresee little change over the next year in the number of more than half of respondents said the technology is facilities they will consider for each meeting they hold. In 2009, as adequate and affordable. But other technology options in 2008, corporate planners will consider a larger number of facili- received more critical review. ties than their association counterparts. • Suppliers in all regions expressed strong interest in CRM technology. But more than half in EMEA, 52% in Canada, and 46% in the United States said the avail- Number of Facilities Considered Per Meeting, 2008-2009 able packages are either inadequate or unaffordable. Association Corporate Government All • Planners placed a premium on technologies that “provide better access to the Internet at meeting 2008 average 5.20 7.10 5.69* 6.33 venues and hotels,” but 70% said current arrange- ments are inadequate or unaffordable. 2009 average 5.15 7.11 6.29* 6.32 Change 2008-2009 -1% No change +11%* No change • FutureWatch 2009 respondents see virtual meetings *Accuracy may be limited by small sample size as an important trend, and many of them predicted a shift to Web-based learning as a way to control meet- Planners predicted a scant 2% increase in average expenditure per ing and travel costs. However, they are not entirely meeting between 2008 and 2009. Just a year earlier, respondents to convinced that the enabling technologies are ready for FutureWatch 2008 predicted 11% growth in meeting budgets and prime time. Webcasting and virtual meeting technolo- a 22.6% increase in spending on individual meetings. gies ranked lowest for accessibility and affordability among planners and meeting management profes- sionals in EMEA and Canada, though US respondents were more optimistic. A Comparative Outlook on the Global Business of Meetings 11
  • 14. Green Meetings and Corporate FutureWatch 2009 uncovered Social Responsibility Perceptions and definitions of green meetings vary by anecdotal evidence that CSR region. Across the board, 10% of FutureWatch 2009 respon- dents predicted a continuing trend toward greener, more initiatives may be delayed in environmentally friendly meetings, with specific features organizations that see them ranging from recycled name badges and biodegradable signage to reduced fuel consumption and paperless meet- as non-essential in an uncer- ings. tain economy. In North America, a focus on green meetings was more prevalent among planners and meeting management professionals, less so among suppliers. Predictions for 2009 centered on increased use of virtual meeting technol- ogy, greater emphasis on smaller, regional meetings, and overall reductions in fuel use and carbon emissions. In EMEA, suppliers were more likely to see green meetings as a major focus for the coming year, and their priorities had more to do with recycling, reuse, and corporate social responsibility. Importance of Green Meetings in 2009 by Region and Member Type Meeting Meeting Meeting Planners Management Suppliers Professionals EMEA 14% 15% 19% Canada 15% 11% 5% U.S. 12% 10% 6% Although 61% of respondents reported that corporate social responsibility (CSR) was important to their organi- zations, FutureWatch 2009 uncovered anecdotal evidence that CSR initiatives may be delayed in organizations that see them as non-essential in an uncertain economy. Planners and suppliers expressed statistically equal CSR commitments on their organizations’ behalf, at 63% and 61% respectively. Meeting management professionals, at just under 59%, showed a slightly lower degree of interest. On the whole, CSR was a more significant area of concern for meeting professionals outside the United States, and particularly in EMEA. In organizations with CSR programs, the specifics were quite consistent across regions and respondent groups. Most of them had identified in-house leaders to guide and oversee their CSR efforts, and required employees to have some understanding of what was going on and why. Some organizations, particularly in EMEA, had dedicated CSR departments, and a number of respondents said their organizations had CSR champions in various departments.
  • 15. A Business of Relationships Suppliers’ strategies for evaluating communications show Meeting management professionals, meanwhile, expect to that they see meetings as a business of relationships, as they work for fewer clients in 2009. However, apart from a small have in past years. Suppliers in the United States, Canada, number of independent supplier respondents in the EMEA and EMEA reported that their competitive toolkits would region, they hope to plan or support more programs for include the following approaches: each remaining client. Meeting Suppliers’ Value Adds, 2009 Expected Change in Client Activity, Meeting Management Professionals, 2008-2009 U.S. Canada EMEA Number of Clients Meetings Per Client Follow up communication 20.4% 34.0% 6.8% Planners Suppliers All Planners Suppliers All MMP MMP Constant communication 17.7% 10.6% 18.2% EMEA -10% -19%* -15% +3% -50%* -19% Build relationship with client 8.6% 14.9% 18.1% Canada -3%* -22%* -12% +18%* 0%* +10% Excellent customer service 8.0% 10.6% U.S. -4% -15% -10% +6% +6% +6% More personal interaction 6.1% 8.5% *Accuracy may be limited by small sample size Thank-you notes 5.3% Client incentives, complimentary 4.8% 6.4% services and amenities Meeting management professionals largely agree on the fee structures they use most frequently, whether they function Pre conference and post confer- 4.8% 6.4% as suppliers or planners. The main differences were a stron- ence meetings / reports ger preference for head count fees on the part of suppliers, Show appreciation 4.8% 6.4% and for project fees on the part of independent planners. Get feedback on what we could 4.4% Frequency of Use, Meeting Management do better Professional Fee Structures Listen and confirm clients needs 4.4% 4.3%% 11.4% Suppliers Planners Help save them money 6.8% Use Ever Use Ever Customize work 4.5% Most Use Most Use Evaluate the outcome and 4.5% Head count fee 1 17% 5 26% analyze results Project fee 2 24% 1 57% *Many respondents gave multiple responses to this question Percentage of cost 3 17% 3 34% The regional breakdowns show an emerging difference in Commission 4 19% 4 41% perspective. North American suppliers generally favor a more transactional approach to customer outreach and con- Time-spent fee 5 23% 2 52% stant follow-up, with a small proportion of US respondents Retainer 6 9% 6 18% open to packages of incentives and amenities that gener- Partnership 7 11% 7 15% ated a degree of discomfort among planners responding to past FutureWatch surveys. In EMEA, by contrast, supplier respondents emphasized relationship-building, customiza- Although meeting management professionals often get to tion, cost control, and an interest in measuring outcomes choose their preferred fee structure, independent planners, and results. in particular, show a great deal of flexibility in working out the payment arrangements that will satisfy different clients. In their responses to open-ended questions, suppliers from all regions agreed that a high level of personal service and openness will be the key to success in a highly competi- tive marketplace. They stressed their commitment to being flexible and helpful, and to delivering on the promises they make. A Comparative Outlook on the Global Business of Meetings 13
  • 16. About FutureWatch Each year, in partnership with American Express, Meeting Pro- • 9% government fessionals International (MPI) conducts a comprehensive survey • 5% independent meeting planning companies of global meeting and event professionals, aimed at spotting the • 2% association management companies key trends and competitive factors that will shape the global • 2% hotels industry in the coming year. FutureWatch 2009 is the seventh • 5% other installment of this one-of-a-kind study. The vast majority of suppliers represented in this survey worked This year’s survey drew responses from a record 2,740 MPI mem- in a sales and/or marketing capacity. They represented*: bers representing 53 countries, all 69 existing MPI chapters, and • 51% hotels one MPI chapter in formation, with more than 15,000 responses • 11% convention and visitor bureaus to open-ended questions. • 6% convention or conference center • 3% destination management company FutureWatch 2009 respondents included: • 2% consultants • 1,032 client-side planners, with an average 12 years of • 2% independent meeting management companies industry experience • 1% educational institutions • 637 meeting management professionals, with an average • 1% incentive companies 15 years of industry experience • 18% other supplier • 959 suppliers, with an average 14 years of industry • 4% other meeting facility experience • 2% other • 75 faculty and students • 4 lifetime, honorary, or retired members Of the meeting management professionals (MMPs) who took part in the survey, 58% (370) identified themselves as planners, 42% The geographic range of the respondents reflected the rapid (267) as suppliers. growth of MPI’s global membership†: • 2,167 from the United States Planner-side MMPs worked for departments responsible for event • 290 from the EMEA region management, conferences and events, sales, global management, • 235 from Canada marketing, planning, and site selection. Six percent of planner • 30 from Central and South America MMP respondents were company owners. • 15 from the Asia-Pacific region More than half of supplier side MMPs (55%) worked in sales and/ Planners participating in the survey reported their current em- or marketing, with the remainder drawn from operations, catering ployment as*: or dining, management, or the executive offices. Fewer than 1% of • 51% corporate supplier MMP respondents were company owners. • 24% association * May not add to 100% due to rounding † Three respondents did not provide geographic location About MPI Meeting Professionals International (MPI), the meeting and event Publisher: industry’s largest and most vibrant global community, helps our Bruce MacMillan, CA members thrive by providing human connections to knowledge Editorial and Design Support and ideas, relationships, and marketplaces. MPI membership is Trey Feiler, Chief Operating Officer, MPI comprised of more than 24,000 members belonging to 70 chapters Bill Voegeli, President, Association Insights and clubs worldwide. Mitchell Beer, CMM, President and CEO, The Conference For additional information, visit mpiweb.org. Publishers Inc. Randy Crabtree, Marketing Manager, MPI Meeting Professionals Jeff Daigle, Creative Director, International Headquarters Jason Judy, Graphic Designer Canada Robin Pittfied, Copywriter 3030 LBJ Freeway, Suite 1700 6519-B Mississauga Road Lauren Manford, PR Manager Dallas, TX 75234-2759 Mississauga, Ontario Val Bhakta, Marketing Specialist tel +1-972-702-3000 L5N 1A6 fax +1-972-702-3089 Canada Publications Staff tel +905-286-4807 David Basler, Director of Publications and Editor in Chief EMEA fax +905-567-7191 Blair Potter, Managing Editor Jason Hensel, Association Editor Europe/Africa Michael Pinchera, Associate Editor 28, Rue Henri VII Asia Pacific Jessica States, Assistant Editor L1725 Luxembourg 73, Bukit Timah Rd tel +352-2687-6141 #04-01 Rex House Special Thanks fax +352-2687-6343 Singapore 229832 American Express, tel +65-6496-5504 sponsor of MPI’s FutureWatch 2009 Middle East fax +65-6336-2263 PC5 Offices, FutureWatch 2009 is an official supplement to the February 2009 issue of One+, the official publication Education City, of Meeting Professionals International. Doha, Qatar tel +974 454 8000 Printed by RR Donnelley & Sons Company fax +974 454 8047 © 2009, Meeting Professionals International All Rights Reserved