A new report from American Express Meetings & Events suggests companies will book more meetings in 2012, but will be trying to do more with less.
In summary, the Global Meetings Forecast found:
- 42% of North American meeting planners, 50% of Latin American, 51% of European and 57% of Asian respondents see signs of increased activity from their clients.
- Additionally, 60% of meeting suppliers also expect the number of meetings planned to increase.
- Higher travel and meeting costs are anticipated, driving the need for companies to focus on striking the right balance of cost effectiveness and experience impact when selecting venues.
- Spending for individual meetings are expected to decrease or stay flat compared to 2011. According to the survey, one third (33%) of hoteliers surveyed expect decreasing budgets per individual meeting, while only 7% expect increases.
More meeting trends in 2012
- Shorter and smaller: The number of attendees per meeting will likely decrease as will the number of days, according to 40% and 33% of hotel suppliers respectively. Driving this trend is a demand to do more with less as companies look to hold a higher number of meetings.
- Closer to home: Suppliers indicated planners want meetings closer to their businesses, with 53% of their clients requesting more local meetings. This is also likely tied to the effort to keep individual meeting costs down.
- Fuller agendas: Noting that their clients’ ‘focus on meeting content is more critical than ever,’ hotel suppliers expect to see more incentive programs infused with business focused content, with 47% of customers planning to combine meetings and incentives.
- More green: Hotel suppliers noted 47% of meeting clients have green request/requirements for their events. Meeting planners corroborated this trend with 73% indicating clients are showing increasing interest in reporting green measures. However, it’s not yet impacting property decisions.
- Venue selection: The Meetings Forecast reveals a shift away from bookings in luxury or resort properties with the exception of meetings within Asia Pacific and Latin America. According to suppliers, 40% are seeing an uptick in demand for these properties.
Meeting trends by region
North America
The North America meetings market was fairly robust in 2011 and is expected to grow in 2012, according to the planner survey results from Maxvantage, the strategic alliance between American Express Meetings & Events and Maritz Travel in the region. This market continues to lead others in looking for new ways to optimize meetings spend and up the return on experience. With the number of meetings expected to increase, the survey indicates companies are conscious of avoiding any negative opinions of perceived excessive spending.
2012 North America – Maxvantage Planner Snapshot
- Number of meetings expected: 80% expect to increase or maintain the number of meetings
- Number of attendees per meeting: 25% will decrease the number of attendees while 45% expect about the same
- Meeting locations: 71% booking in primary/large cities; 31% in secondary cities; 13% shifting bookings from primary cities to second-tier cities
- Planner lead time: 62% expect decreases in their lead time for planning meetings and 7% expect an increase
Europe
The meetings market in Europe may experience challenges in growth next year due to the uncertain economic outlook. Despite this, currently it is expected that meetings will to be on a positive trajectory, mirroring the global trends.
2012 Europe – Planner Snapshot:
- Number of meetings expected: 75% expect the same amount or more in terms of the number of events held
- Number of attendees per meeting: 26% will decrease the number of attendees while 53% expect about the same
- Meeting locations: 62% booking in primary/large cities; 12% in secondary cities; 26% shifting bookings from primary cities to second-tier cities
- Planner lead time: 43% expect decreases in their lead time for planning meetings and 11% expect an increase
Asia Pacific
Meetings in the Asia Pacific region break the mold compared to what is forecasted to likely occur in the rest of the world primarily due to the strength of local economies. Unlike other markets, the size of individual meetings is expected to grow and surveys indicate companies are less concerned with avoiding luxury properties or limiting spending.
2012 Asia Pacific – Planner Snapshot:
- Number of meetings expected: 87% expect to increase or maintain the number of meetings held
- Number of attendees per meeting: 2% will decrease the number of attendees while 49% expect about the same; 43% will actually increases attendees per event
- Meeting locations: 62% booking in primary/large cities; 19% in secondary cities; 17% shifting bookings from primary cities to second-tier cities.
- Planner lead time: 26% expect decreases in their lead time for planning meetings and 9% expect an increase
Latin America
Moderate growth is projected for meetings in Latin America, and in particular hotel suppliers are seeing a boom in their meetings demand in key cities such as Rio de Janeiro, Sao Paolo and Panama.
2012 Latin America – Planner Snapshot:
- Number of meetings expected: 61% expect to increase or maintain the number of meetings held
- Number of attendees per meeting: 32% will decrease the number of attendees while 18% expect about the same
- Meeting locations: 27% booking in primary/large cities; 37% in secondary cities; 6% shifting bookings from primary cities to second-tier cities
- Planner lead time: 21% expect decreases in their lead time for planning meetings and 18% expect an increase