The annual EIBTM Global Industry Trends and Market Share Report* was launched today (Tuesday, November 30) at EIBTM in Barcelona. The report compiled by Rob Davidson, Senior Lecturer in Business Travel and Tourism at The University of Westminster in London and EIBTM Industry Analyst, identifies the key trends for the meeting and incentives markets over the past 12 months and provides an outlook for 2011.
Rob discloses from the report findings that: โWhilst for 2010, most economists were divided on whether the global recovery would grow, stall, or even reverse, now at the end of the year there is talk about favorable prospects for global recovery, albeit it slow and uneven. However, the vast majority of indicators for the meetings and events industry point to improved business conditions ahead in 2011.
โBusiness barometers in 2010 have indicated that the industry continues its recovery apace indicating that current business conditions are better than a year ago. There is definitely a clear majority who feel optimistic about the future.”
KEY FINDINGS
GLOBAL ECONOMIC CONTEXT
โข A mixed picture, but 2010 was a year of recovery
โข Global growth likely to exceed 4% in 2011
โข Growth unevenly distributed between developing and advanced nations
โข Weaker dollar + rebound in strong recovery of US exports helps explain high levels of business confidence
โข Asia Pacific has brushed off the recession
โข Europe split โ Greece, Ireland, Portugal, Spain tackle budget deficits; Germany and France point to recovery
โข BRIC (Brazil, Russia, India, China) set to outperform the world as a whole
โข By 2014 BRIC will account for 61% of the overall growth in the worldโs output
IMPACT OF THE MEETINGS AND EVENTS SECTOR
MPI Business Barometers in 2010 have indicated that the industry continues its recovery at an even pace. The majority of August 2010 Business Barometer respondents (62%) indicate that current business conditions are better than a year ago. At the same time, there is a clear majority feeling optimistic about the future, with 70% of Business Barometer respondents project better upcoming business conditions than a year ago. According to the same source, the domestic association conference market leads the net activity increase in the US, while in the EU, the international corporate meetings market leads the net activity increase.
MEETINGS AND EVENTS INDUSTRY TRENDS
CORPORATE MEETINGS:
โข A discernable relaxing in restrictions on business travel
โข A resurgence in corporate meetings particularly in Europe โ leading a net increase in meetings activity in 2010
โข Buyers have become adept at driving down costs with tough negotiations
โข Shorter lead times โ from 30-45 days on average in US
โข Continuing trend to avoid frills and the appearance of โlavishnessโ in meetings โ more serious in their content
โข Meeting spend is โseriously conservative, highly image conscious, and focused on the basics.
INCENTIVE TRAVEL:
โข Market recovered slightly in 2010 โ but less than the meetings sector
โข Incentives have changed โ to provide a well defined ROI
โข Average number of nights per trip have fallen from 6.5 to 4
โข Trips are less extravagant
โข Destinations are primarily domestic or shorter haul international
โข Growth in long haul is due to down grade of travel from business to economy class
โข Every meeting now includes a business element, e.g., discussions about corporate strategy and direction
โข Predictions that procurement and purchasing involvement within incentives will increase in 2010
ASSOCIATION CONFERENCES:
โข Associations predicting a lower onsite attendance in 2010
โข Strong demand for educational content and sustainable meetings
โข US domestic association conference market led the way in 2010
REGIONAL VARIATIONS:
THE USA
โข Industry shows optimism in growth of volume of meetings towards the end of 2010
โข Growth in the number of off-site meetings predicted in 2010 and the trend set to continue into 2011
โข North American planners are reportedly less likely to postpone, cancel, or rebook future meetings in 2010 than in 2009
โข Those booking meetings are no longer concerned about negative publicity associated with upscale property choices or destinations
โข Outlook for incentive travel looks favourable with predictions to improve in 2011 and 2012
EUROPE
โข Continued to dominate as a focus for association conferences 7 countries in the top 10 destinations being European
โข Carlson Wagonlit Travel seen signs of economic recovery in meetings and events
โข 30% of meetings organized outside their home country (10% increase on 2009)
โข Popular destinations include Barcelona, Madrid, Nice, Paris, and Rome
โข Average spend is up – โฌ175 compared to โฌ150 in 2009
โข Cancellations down from 15โ 0%
CHINA
โข Growth in new cities entering the market in 2010
โข Hong Kong twinning with destinations increasing awareness of secondary cities
โข More destinations are targeting China for meetings and events business
โข Primary industry sectors include financial services, insurance, communications, medical, and automotive
AUSTRALIA
โข The first major industrial economy to recover from the global recession
โข Significant growth in international visitors attending meetings in 2010
โข Increase of 15% over 2009 with 168,000 conventions and conferences
โข Key markets of growth were from India, Korea, China, and Japan
โข Encouraging growth also from US and North American markets
TECHNOLOGY
โข Rapid growth in the use of social media by venues and CVBs as part of marketing strategies
โข Also use of blogs, Facebook, Twitter to drive business to websites and to learn what the market is saying about their products and services
โข Approximately one half-day each week is devoted to promoting venues on social media
CORPORATE SOCIAL RESPONSIBILITY
โข 2010 was the year where CSR is now a โgivenโ in meetings and events
โข Community service projects lead the way with interest from meeting and event planners
WHAT TO TAKE AWAY FROM THIS ARTICLE:
- The report compiled by Rob Davidson, Senior Lecturer in Business Travel and Tourism at The University of Westminster in London and EIBTM Industry Analyst, identifies the key trends for the meeting and incentives markets over the past 12 months and provides an outlook for 2011.
- โข A resurgence in corporate meetings particularly in Europe โ leading a net increase in meetings activity in 2010.
- According to the same source, the domestic association conference market leads the net activity increase in the US, while in the EU, the international corporate meetings market leads the net activity increase.