EIBTM Reports Industry Optimism
In a challenging environment, suppliers who offer exceptional value and service and destinations that target a diversified business base will thrive, according to the annual
EIBTM Industry Trends and Market Share Report. Delivered during the annual EIBTM trade show in Barcelona, the study suggests that more organizations will increase bookings in 2010, though they will continue to select locations that are not considered extravagent or luxurious. Executives predict that business trips will increase in the second half of the year and gather momentum in 2011. Here's what the study shows about the industry in 2009.
General
- The road back to a buoyant economy will be slow and bumpy
- Many developed economies have suffered while emerging markets have continued to prosper and grow
- Emerging markets in 1999 represented about 20 percent of global GDP; but should account for closer to 50 percent by 2010. They account for 80 percent of the world’s population, 70 percent of global foreign exchange reserves and half of world exports
- The economies of Brazil, Russia, India and China have seen a strong and broad-based rebound in business confidence
- In Europe, the picture is mixed—business confidence has rebounded and many national economies have emerged from the recession, but job losses across the continent are set to continue, particularly in manufacturing
- The U.S. unemployment rate settled to 10 percent in November. Fears of further job losses were compounded by concerns over the burgeoning budget U.S. deficit, which hit a record US$1.4 trillion in the year to Sept. 30
Meetings and events trends
- As corporate profits have fallen in most countries, companies have reacted with an array of cost-cutting measures related to their employees’ business travel and their participation in meetings and business events.The industry has seen shorter lead times, clients shopping around more and comparing prices for facilities and services, greater use of one-day events to reduce the number of overnight stays and reduction in the number of suppliers they use, to increase the potential for economies of scale
- As supply outstrips demand in most countries, it is clearly a buyers’ market
- The association sector has been far less affected than the corporate sector
- Demand is buoyant, boosted by the number of new association events created (the International Congress and Convention Association database of international association events grew by over 10 percent this year)
- The SMERF markets (social, military, educational, religious and fraternal markets) have seen demand growing
- Fewer meetings are being held in resorts, and more in hotels and in dedicated conference centers.
World Regions
- Europe maintains its clear lead where most international association meetings are held, even if this lead is being gradually eroded as a growing number of cities beyond the frontiers of Europe enter the market
- The U.S. remains the world’s No. 1 country in terms of the number of meetings of international associations it hosts, but overall, 2009 saw shrinking budgets, fewer participants, shorter events and increased cancellations and postponements of meetings
- China’s potential as an expanding and highly lucrative market for other countries has made it a prime target for the marketing efforts of many destinations beyond it borders
- The Middle East saw high-profile wins such as the International Bar Association’s decision to hold its 2011 annual conference in Dubai’s World Trade Centre
- Investment continues unabated. Bahrain announced the development of its new Expo City, increasing the size of the existing Bahrain International Exhibition and Convention Centre by around 10 times
Technology Trends
- Many corporate buyers have sought a technological solution to help them cut costs
- There was greater use of alternative meeting methods, including webinars, videoconferencing and Web-based learning tools, as a way to control meeting and travel costs
- The was also growing use of social media for meetings
CSR Trends
- CSR continues to shape the way in which meetings and events are held
- The economic downturn has not significantly reduced companies’ concern to consider the impacts that all of their operations, including meetings, have on the environment
- An important step towards the adoption of uniform measurable standards of environmental performance in meetings planning was taken in August, when the Convention Industry Council's Accepted Practices Exchange (APEX) Panel on Green Meeting and Event Practices released the final draft standards for review and comment by the meeting industry
- There was growing interest in the industry's social legacy in the destinations it uses