Transcript Document
Where is Incentive Tourism going? The International Market, Trends and Winning Strategies Aperitivo • Padraic Gilligan, Partner & Marketing Director Ovation Group • Conference, Events, Destination Management • Incoming and Outgoing • 40 employees in Dublin and Belfast Aperitivo • “Society of Incentive & Travel Executives (SITE) • Over 2000 members globally • “foster networking and professional development among individuals and business entities involved in use of motivation, incentives and travel rewards” Aperitivo • • • • “Global Events Partners” (GEP) Over 50 DMC partners globally New EU Office in Brussels Leader in each destination Antipasto The Issues: • It’s the Economy, Stupid” Bill Clinton • Global terrorism • Health Concerns – Foot and Mouth, SARS Antipasto The Economy • Three difficult years in a row … airlines, hotels, agencies …much consolidation has taken place … • Economic Outlook for 2004 and beyond more positive than past Antipasto The Economy A “palpable recovery” has taken hold across rich countries, according to the OECD’s latest Economic Outlook. Overall, the OECD expects its member economies to grow by 3.0% in 2004 and 3.1% in 2005. That is up sharply from expected growth of 2.0% in 2003. Among the rich countries, America is likely to have the perkiest economy next year, with GDP growth of 4.2%. Source: The Economist Nov ‘03 Antipasto Global Terrorism • Concentration on destinations closer to home • Shorter lead time … corporation adopting “wait and see” approach • Focus on contracts – force majeure etc • Focus on security Antipasto Health Concerns • Move away from Asia back to EU, US etc • Focus on medical issues … availability of on site health care Primo Piatto SITE Data – (survey 500 US corporations) • • • 64% international incentives 35% remaining in US 1% not doing incentives Source: International Conference Research Inc Primo Piatto SITE Data – (survey 500 US corporations) • • • Programme length 6.8 nights No of pax 334 33% of intl progs are insurance corporations Primo Piatto Global Events Partners Survey Top 5 destinations for 2002 ex US 1. Italy 2. France 3. Spain 4. New York 5. UK Primo Piatto Global Events Partners Survey Top 5 destinations for 2003 ex US 1. New York 2. Washington 3. Las Vegas 4. Italy 5. San Diego Primo Piatto Global Events Partners Survey • Domestic Leads 2002 824 • Domestic Leads 2003 1133 • Increase 37% • International Leads 2002 680 • International Leads 2003 741 • Increase 8% Secondo Piatto • Core trend - Dis-intermediarisation … tendency to cut out the middle man • Classic distribution chain is Client – Incentive House (Agent 1) – Destination Mangement Company (Agent 2) – Destination experience • Room for two intermediaries??? Secondo Piatto • Incentive House (Agent 1) buys direct in the destination • DMC (Agent 2) approaches client direct and offers broader range of services Dolce • Positive economic indicators are carrying through to our industry • Starwood and Marriott released upbeat statements • JW Marriott, Chairman and CEO of Marriott looking “forward to business travel demand building” Caffe • Underlying Concern – weak dollar … • US business may stay at home; US becomes good value destination ex EU … not good for EU based DMCs Digestivo Perspectives for future • Corporate Procurement Turns an event into a commodity Digestivo Perspectives for future • Corporate Procurement Better, Cheaper, Faster Digestivo Winning Strategies • Partnership • “Packaged” Customisation • Added value – what does it mean to YOUR customer?