1. The Big Picture: Global Industry Status and Prospects: North American Perspective 2012 AMSTERDAM

2. General Economy 1.Consumer confidence showing improvement 2.Unemployment rates falling slightly or stable 3.Housing prices and starts trending upward 4.Some concerns about inflation, interest rates 5.Recovery is somewhat regional

3. Business Travel Trends 2012 predicted to show some improvement Demand for meetings and conventions projected to increase More meetings More attendees Incentive programs growing again

4. Business Travel Trends – cont’d Negligible growth for tradeshows –Number of exhibitors, number of attendees, revenues slightly down; net square foot utilization slightly up Insurance, financial, consulting, high tech, healthcare and education expected to rebound Companies hiring: meetings geared to training Formal emphasis on communicating value of meetings

5. Meeting Characteristics: Planners remain: rate conscious – spending will decrease or remain flat; value focused Budgets take precedence Profit and engagement tactics are new measures: open, audience led meetings; access to business opportunities Some return to recreation and entertainment as part of experience: we can have some fun again Hybrid meetings increasing Increased use of technology

6. Meeting Characteristics-cont’d Planners want: Price flexibility Opportunities to negotiate Shorter lead times Better customer service Better communication lines Added value: free wireless, green meetings consultancy, more services

7. US Snapshot Increased federal emphasis on improving competitive position for tourism Brand USA Increased federal funding Addressing visa issue Value of meetings still in dispute: mandated federal reductions GSA a setback Highly competitive environment

8. Mexican Snapshot Government supportive Continued investment in infrastructure Business travel a critical component of economic development strategy Is coping with destination image issues

9. Latin American Snapshot Limited infrastructure Private investment leading the way Economic growth leading to corporate and exhibition business

10. Canadian Snapshot Relative economic stability Corporate travel improving Continued product development, US economy and travel patterns present challenges Federal government support low for marketing, some assistance with infrastructure

11. Conclusion Supply still over strips demand: competitive environment “A Buyer’s Market” Operational profit/loss goals increasingly difficult Balancing economic impact measures with bottom line realities Travel costs: air, hotel Access issues Competing government priorities: communicating value

12. Marcia Lyons Amsterdam, 2012