For three years now, the meetings and events industry has done progressively well, and 2016 is predicted to follow suite. “The outlook for growth in all aspects of meetings and events is clear, and the industry experts we interview support those findings with their own stories of expansion as well as increased use of various event types, including incentives,” says Issa Jouaneh, senior vice president and general manager, American Express Meetings & Events.
Following are the trends, numbers and commentary for North America.
On the Up and Up
Meetings Planned
An upwards of 90% of respondents anticipate steady activity for all meeting types. While 4% of respondents expect a decrease in special events and incentive meetings, 22% predict an increase. “Special events are trending upward again. In terms of incentives for first-tier performers and second-tier performers, we are seeing a willingness to incur a higher cost per head, but for smaller numbers of people,” says one respondent.
Sales/Marketing: 12.2
Training: 15.7
Internal Team Meeting: 14.7
Product Launch (Internal/External): 5.1
Conferences/Trade Shows: 10
Senior Leadership Meeting/Board Meeting: 8.1
Advisory Board: 7.6
Incentive/Special Events: 6.2
Attendees per Meeting
Just one in 20 respondents point to decrease in the size of each meeting type, but the remaining indicate stability, if not an increase, in meeting size and length.
Sales/Marketing: 173
Training: 141
Internal Team Meeting: 89
Product Launch (Internal/External): 198
Conferences/Trade Shows: 455
Senior Leadership Meeting/Board Meeting: 862
Advisory Board: 48
Incentive/Special Events: 210
Days per Meetings
While the length of meetings is looking to stay the same, there are incremental increases in some categories that suggest an upward trend.
Sales/Marketing: 2.4 (2.4 in 2015)
Training: 2.5 (2.4 in 2015)
Internal Team Meeting: 1.8 (1.8 in 2015)
Product Launch (Internal/External): 2.3 (2.2 in 2015)
Conferences/Trade Shows: 3.2 (2.9 in 2015)
Senior Leadership Meeting/Board Meeting: 2.2 (2.1 in 2015)
Advisory Board: 2.0 (1.7 in 2015)
Incentive/Special Events: 3.2 (3.2 in 2015)
Spend & Cost
Respondents predict an average 1.9% increase in budgets, which marks the largest forecasted overall spend increase since the first forecast in 2012.
In an effort to improve quality of meeting experiences, over 90% of people surveyed say their cost per attendee will either stay the same or increase. “Most of our customers are looking for a new and unique experience, something different that inspires thought and creativity,” says one respondent.
Cost per Attendee (Excluding Air Costs)
Sales/Marketing: $476
Training: $142
Internal Team Meeting: $273
Product Launch (Internal/External): $419
Conferences/Trade Shows: $609
Senior Leadership Meeting/Board Meeting: $510
Advisory Board: $489
Incentive/Special Events: $711
Location, Location, Location
Respondents still expect more than three-quarters of their meetings activity to take place in large cities. Orlando has taken the No. 1 spot over Chicago, and Phoenix has taken the No. 10 spot over New Orleans. However, more activity in larger cities means limited space. “As demand outpaces supply, getting the right property becomes a bigger driver than cost. The customer may want downtown Chicago but they go to nearby Schaumburg for availability reasons,” says a respondent.
Primary Locations for Budgets
80%: Large-city locations
20%: Second-tier city locations
Top 10 US Cities Based on Meetings & Events Activity
Orlando | Chicago | Las Vegas | San Diego | Atlanta | Washington, D.C. | New York | Dallas | Nashville | Phoenix
Supply and Demand in Hotels
First choice and popular locations are becoming more difficult to secure as the number of meetings increases. Respondents forecast a decrease in space availability (at least 2.6%) through 2016 and 2017 and an increase in hotel rates (4.1%). It comes back to budget and location, as 28% of respondents say budget is the key factor in influencing location. “We have more opportunity to negotiate where there is new hotel development and where there is inventory. … New hotel openings are not keeping up with demand in some key cities, dampening the ability to negotiate as hotels are more frequently at capacity,” says one respondent. However, the significant jump in the number of hotel openings planned in 2016 should help assuage some future of the price pressure.
Group Hotel Rates
Pricing Trends/Change
2016 Group Hotel Rates: 4.2%
2015 Group Hotel Rates: 4.6%
