Transcript Slide 1

WELCOME
Presentation to
Trends in the Meetings Industry
Didier Scaillet
Director of European Operations
and Global Development
MPI Facts and Figures
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20,000 members (1,400 in Europe)
66 chapters and affiliates
9000+ planners, spending € 9+ billions / year
30+ years of experience
Central budget: € 16 millions per year
80+ staff
3 offices: Dallas (HQ), Toronto, Luxembourg
www.mpiweb.org
The Future is No Longer
What It Used To Be…
European Airlines
70
64.83
60
57.54
50
40
35.45
30
26.5
25.8
20
24.3
22.27
10
0
Air
France KLM
British
Airways
Iberia
Passengers (in millions)
Alitalia
FutureWatch 2005
FutureWatch 2005
• In conjunction with American Express
• Third year: allow already for trends to be
identified
• 1851 respondents (11% response rate)
– 960 planners / 891 suppliers
– 8% European planners / 10% European
suppliers
KEY FINDINGS
• Meetings industry to grow gain in 2005:
– Growth in budgets, employment, employee
training, number of attendees per meeting
and expenditures per meeting
– International travel continues to rebound
with largest increase from Canadian and
European planners (weak dollar?)
– Gap between planner and supplier
expectations: 8 percent disparity in
projected spending and revenue
projections (4,5% in Europe)
KEY FINDINGS
More International Meetings
• U.S. Planners: 23% of all meetings
outside U.S.
– Europe (6%) and Canada (5%) as top
destinations
• European Planners: 28%
– U.S. (8%) and Asia (7%) as top destinations
• Canadian Planners: 29%
– U.S. (13%) as top destination, followed at a
distance by Europe (4%)
KEY FINDINGS
Budgets on the rise
• Recovering corporate budget
• Budgets for third parties continue to be
higher are not declining: outsourcing as a
strategy seems to be there to stay
• Association planners budget on the rise as
well
KEY FINDINGS
External Forces
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Budget constraints (number 1 concern)
Commoditization (number 2 concern)
Global Economy
Security
Consolidation
Do more with less and shortened lead
times have become standardised
operating procedures
KEY FINDINGS
Planners « and » Suppliers
• Planners:
– More planners reporting full implementation of
standardized policies and procedures
– About half have adopted or are implementing meeting
management processes, programs, tools and
technology, standardizing purchasing, contracts, RFP
and reports
• Suppliers:
– Technology investments focusing
on web site enhancements and
wireless technology
KEY FINDINGS
Planners «and» Suppliers
• Planners would like from suppliers:
– To work with suppliers as partners rather
than as vendors
– Increased flexibility in attrition/cancellation
– Quicker turnarounds on requests
• Suppliers would like from planners:
– More honest disclosure of budgets
– More comprehensive communication
– More detailed RFP
KEY FINDINGS
Return on Investment
• Measuring ROI becomes the norm for
planners
• Suppliers are often not asked to help build
systems or processes for measuring
meeting returns and are not received
feedback
New Entrants / New Borders
New Entrants / New Borders
• Purchasing, Travel, Communication
Agencies
• Borders between players are getting blurred:
– DMCs, Event, Hotels, etc
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Consolidation
New governance/legal rules
New destinations, new venues
Event Marketing within the
Marketing Mix
MPI Foundation / GPJ Global Study
• Study of Senior Marketing Executives to
determine trends in event marketing.
• 651 senior marketing executives (VP, Director)
at major companies (over $250M) in these
industries:
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Automotive
Healthcare
Financial services
Technology and telecommunications
Consumer and manufacturing
• 100 members from MPI
Confident Industry Forecast
100%
90%
80%
42%
47%
45%
46%
70%
52%
54%
41%
38%
7%
8%
63%
74%
60%
50%
40%
48%
45%
30%
44%
46%
31%
20%
22%
10%
Decrease
6%
Constant
03
G
LO
BA
L
04
*G
LO
BA
L
04
4%
AP
03
04
EU
R
03
*E
UR
04
US
03
US
11%
8%
AP
10%
8%
0%
Increasing
More than 90%
indicate the
importance of
event
marketing is
growing or
stable
Event Marketing Provides Best ROI
0%
5%
10%
15%
20%
25%
30%
35%
40%
Event Marketing
Print Advertising
Broadcast Advertising
Event
marketing
provides the
best ROI
across all
geographies
Sales Promotion
Public Relations
Web or Internet Marketing
Direct Marketing
GLOBAL
Budgets Align with Strategic Tactics
Anticipated increase in budgets for elements of the marketing mix
43% of
companies plan
to increase
event marketing
budgets, which
represents 20%
of marketing
budgets
Event Marketing
Advertising (Broadcast)
Advertising (Print)
Sales Promotion
Public Relations
Web/Internet
Direct Marketing
0%
10%
20%
30%
GLOBAL
40%
50%
60%
Study Summary
• Positive events industry outlook (96% of
respondents utilizes events in their marketing mix)
• Focus on demonstrating ROI in marketing mix
• New role for events in the sales cycle
– Emphasis “enhancing the customer relationship”
• Localized strategies
– Regional priorities and approaches
– Emerging markets have different requirements
• Shifting priorities and budgets
– Highly measurable media
• A move to more integrated
event marketing approach
Impact
• Need to demonstrate ROI: relationships are still
necessary but no longer sufficient
• RFIs / RFPs (importance of right players locally)
• Business models are changing:
– Commissions to fees
– Sales team
– Associations also: core PCOs and/or insourcing, core
destinations, multiple year contracts
• One-stop providers or alliances
• Need to educate procurement on added-value,
complex buying, creativity within our Industry
• New core skills are needed
Other Trends
THANKS