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Paul Van Deventer President and CEO INDUSTRY OUTLOOK
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General Session II – REAL Trends Meeting & Event Industry Trends Paul Van Deventer, President & CEO
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Significant Trends in North America 1.Venues gaining the upper hand Transient strength and high occupancy rates challenging group market 2.Increase in both # of meetings and attendance But, budgets not keeping pace 3.Rise of the millennials 4.Ongoing influence and impact of technology
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North American Snapshot of Industry Significant driver of innovation and economic impact: Meetings and Events Held Each Year 1.83 million in the US 585,000 in Canada Total Spending $280 billion in the US $29.1 billion in Canada
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Predictions from MPI Members
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Group Business Has Returned Source: STR, Inc.
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Transient Market Share Strong and Attractive Source: STR, Inc.
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Group vs. Transient ADR Source: STR, Inc. ($28)
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What is on Planners’ Minds? Biggest Challenges Improving overall stakeholder experience Budget increases not keeping pace with rising costs and attendance Do more with less, in shorter time frame! Concerns with Properties Property does not put their best foot forward Only get creative after planner expresses dissatisfaction “Nickel and diming” wastes time and creates frustration Technology costs
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Planners Reactions to High Occupancy Rates Second tier cities are getting more consideration Planners are stretching out lead times, but asking for price guarantees in exchange Events are being slightly scaled back and/or becoming more regional Average conference = ½ day shorter Alternative housing options being utilized/integrated Airbnb; Cruise Ships (example: DreamForce)
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Ways to Attract Planners Without Hurting Margins Focus on low cost ways to wow attendees Be aggressive upfront 40% would switch from #1 choice for 10% discount (Source: Cvent) Put together packages that consider total costs Emphasize property features that provide a unique attendee experience
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Ways to Attract Planners Without Hurting Margins Planner budgets are up a little, but expectations are up…. a lot! Hoteliers working as a team member with a planner, especially a newer planner = highly valued! Get creative - offer a unique, or new experience It is still a relationship and trust business 95% of planners indicate peer recommendations are highly, or somewhat influential (Source: Cvent)
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Compelling New Industry Trends #1: Younger/newer planners are managing large budgets and can benefit from more assistance and partnership This will help foster new long-term relationships Position associations well for professional development and business networking Newer planners are still developing their professional experiences; luxury properties can add valuable support
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Compelling New Industry Trends #2: Legislation that can impact our industry Visa Waiver Program (JOLT Act) Open Skies Debate Government Restrictions on conferences and meetings
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Compelling New Industry Trends #3: Technology continues to disrupt the “norm” Uber, Airbnb, drones, mobile apps, social media… Understand risks, opportunities and impact Millennial planners are 50% more likely to be “highly influenced” by social media (Source: Cvent)
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Thank You! Want to Learn More? www.mpiweb.org
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19 Thanks for Your Time
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