MEETINGS
DEVELOPED IN
PARTNERSHIP WITH
MEETINGS
Meeting and event industry projections remain solidly
positive as planners and suppliers adapt and learn to
thrive in the evolving seller’s market landscape.
2016 SUMMER EDITION
BE OPEN TO LOWER-COST
OPTIONS THAT ARE DIFFERENT
BUSINESS-CRAFTING
MEETINGS
IN
A STABLE SELLER’S
MARKET
MEETINGS
Smart marketing, flexibility, informed negotiation skills and
even last-minute risks are among the tactics and tools necessary
to craft successful business in today’s market.
MEETINGS
GET MULTIPLE VENUES TO
COMPETE FOR YOUR BUSINESS
By Elaine Pofeldt
K
athy Murphy (MPI Philadelphia Area Chapter),
president of Gray Consulting International, often
finds herself educating clients at the meeting and
event solutions firm in Philadelphia about the ‌need
to make their requests for information and proposals attractive to hoteliers in today’s seller’s market. And when desired hotels are available, she’s encouraging clients to act quickly
and to prioritize a wish list of their three to five most-desired concessions from hotels—instead of ticking off 15 items.
Based on the findings of MPI’s latest Meetings Outlook survey,
Murphy isn’t alone. The research found that the seller’s market is
changing, with hotels and venues getting clearer on the sectors of
clients with whom they want to do business and more precisely
targeting their marketing to reflect this. Sometimes, properties
are turning away bookings from clientele who no longer fit their business model well.
“What we’re seeing is hotels and venues becoming more
sophisticated in their target market definition and doing a better job of tracking their target market customers and accepting the types of business for which they are best suited,” says
Bill Voegeli (MPI Georgia Chapter), president of Association
Insights, the Atlanta-area research firm that conducts the survey. “You’ll find hotels and venues turning away customers with
whom they used to work in favor of customers for whom they
can do a better job or possibly enjoy a higher yield.”
The trends could ultimately benefit the meeting and event
industry overall, according to Voegeli. “It bodes very well for the
industry long term because the hotels and venues are taking
time to better define and understand whom they want to work
with and better understand whom they serve the best,” he says.
Continued on pg. 70
TREND FORECAST
respondents are avoiding destinations with laws
30% ofprohibiting
universal restroom use; 19% are avoiding
locations with more liberal handgun or weapons laws.
KATHY MURPHY
MPI Philadelphia Area Chapter
President of Gray Consulting International
“Rates are up, because demand is up
and supply is down. We are asking clients
up front if they have alternative dates, as well
as taking a look at where the base of their
attendees is coming from.”
REVIEW YOUR BUDGET AND
DETERMINE HOW YOU CAN
SUPPORT A REDUCED PROGRAM
PURSUE LAST-MINUTE
BOOKINGS WHEN
AND WHERE ROOMS
ARE AVAILABLE
BOOKING
FOR THE
FUTURE
When Mary O’Connor was asked to
plan a retail food service company’s
annual conference in Las Vegas for the
second quarter of 2017, she strongly
encouraged her clients to consider
booking for 2018 and 2019, too. The
meeting attracts about 1,900 attendees. With hotel occupancies going up
and prices rising, making longer-term
commitments is a smart way for
meeting organizers to gain leverage,
according to O’Connor, president
of strategic meetings management
firm Mary O’Connor & Company in St.
Charles, Ill.
“Demand is going to continue to
increase and supply is increasing at
a much lower rate,” she says. “The big
boxes in particular are definitely at a
premium right now.”
O’Connor aims to apply this strategy to many of her clients, who typically
hire her firm to manage internal business events or B2B events. To educate
them on the reasons, her firm sends
them a state-of-the-industry report.
“We have converted most of our
big shows to a multi-year requirement
so they can have confidence they are
going to get what they actually need,”
she says.
Of course, to give clients a level of
comfort, O’Connor’s team will negotiate a reasonable “out” clause for the
years that are further into the future.
Why would the hotels agree?
“Ultimately, there is such lack of
capacity that if we were to cancel,
they could replace it with higher-rated
business,” she says.
For clients unwilling to book several
years ahead, O’Connor’s team recommends strategies such as considering
second-tier cities or changing the
pattern of an event to times that are
in less demand. For instance, an event
traditionally held Monday through
Thursday might be held from Saturday
to Tuesday instead.
“You have to really start thinking
out of the box if you’re not willing to
commit to booking further out right
now,” she says.
TREND FORECAST
respondents said political elections have a
27% ofsignificant
influence on meetings and events.
Continued from pg. 66
Nonetheless, there’s no denying that current market conditions are leading to frustrating situations for planners.
“Meeting space is scarce, both short-term and long-term,”
says one U.S.-based planner respondent, who requested anonymity. “Planners have to work particularly hard to show venues the value of their meeting versus others to be considered
for space.”
Another anonymous U.S.-based planner mentioned the
challenges of having to explain to organizers that rates and
concessions available three to five years ago have changed.
The planner reported actively working with clients “to provide to the hotel a better piece of business” by adjusting the
total meeting rooms needed and making other changes. “Hotels are simply not responding or turning down RFPs because
the room space ratio is not good,” the planner commented. “In
the past they would book anything.”
Barry Jones (MPI Brazil Chapter), who does strategic
meetings management for the nonprofit organization FamilyLife in Little Rock, Ark., has found that in the current climate, venues are asking more of organizers.
“Meeting room rental is now expected, even in markets with no
prior history of demanding rental,” Jones stated. Those cities have
included Charlotte, N.C.; Charleston, S.C.; St. Augustine, Fla.; and
Houston.
Though the current seller’s marketplace is forcing up prices and
reducing concessions, Leslie Selby, CMP, CMM (MPI Toronto Chapter), director of meetings and events at Aimia Proprietary Loyalty
Canada, says clients are running their programs with the same budgets as in previous years.
“This is forcing us to negotiate certain points harder, try to suggest different options that are lower-cost and help our clients determine how their budget can support a reduced program,” he says.
With venues charging higher prices, meeting organizers are
having to adjust their expectations, too, the survey found.
“Rates are up, because demand is up and supply is down,” Murphy says. “We are asking clients up front if they have alternative
dates, as well as taking a look at where the base of their attendees is
coming from—and asking if they have an alternative city in mind if
we are not able to place their program in the preferred location.”
MaryEllen Parmer, CMP (MPI Middle Pennsylvania Chap-
GLIMPSE AT CURRENT
EMPLOYMENT TRENDS
FULL-TIME
PART-TIME
CONTRACT
30%
31%
42
FLAT
50
63
51
DECREASE
20%
INCREASE
%
%
6%
%
%
7%
BARRY JONES
MPI Brazil Chapter
Strategic Meeting Management at
FamilyLife
“Meeting room rental is now expected,
even in markets with no prior history of
demanding rental.”
ter), who coordinates and oversees conferences for PWW
Media—a compliance solutions provider for the electronic
manufacturing services industry—commented that one of
her current challenges is “going to a seller’s market and trying to still meet the needs of the attendees.”
Suppliers, too, are feeling the squeeze. “Events and meetings are still very last-minute in regards to signing off and
planning details,” says a supplier, who sought anonymity.
“Dates for meetings and events are normally planned in an
acceptable time frame, but confirming and planning details
are often last minute and prevent suppliers from delivering
their very best in customer service and pricing.”
Nonetheless, some planners are making the most of the
seller’s market, pursuing last-minute bookings when and
where rooms are available and getting multiple venues to
compete for the business to get a lower rate than would be
expected, the survey found. Suppliers are aware that this is
being done and are actively participating in it.
Murphy, for her part, is taking a long-term approach,
encouraging clients to commit to repeat programs in hotels
they like, so they have more leverage.
“We’re encouraging them to book multiple years out,”
she says.
GLUTEN-FREE
AND BEYOND
Along with rising room rates, food and beverage prices are
ticking up, as added costs for meals tailored to dietary restrictions contribute to costs that many meeting professionals already view as disproportionately large. In keeping
with current dietary trends, more attendees are asking for
gluten-free, low-cholesterol, low-carb, vegetarian and vegan
options, notes Voegeli, and organizers and planners are trying to keep them happy.
“We’re simply seeing a stronger rhetoric towards making
sure that what is provided is as hypoallergenic as possible,
as culturally acceptable as possible and as dietarily flexible
as possible,” he says.
As part of this trend, there has been increased emphasis
on diets that meet attendees’ religious requirements. “We
see in some cases a focus on making sure someone has access to a Kosher kitchen, for example, or that someone is not
serving pork as part of the cuisine,” Voegeli says.
The added costs have spurred some planners and organizers to shy away from offering meals altogether. Some
are instead coming up with alternative experiences that can
replace the time or cost that would be used organizing and
Business Conditions
throughout 2016
OVERALL FIGURES INDICATE STABLE
BUSINESS CONDITIONS—HOWEVER
7% FEWER RESPONDENTS INDICATED “FAVORABLE” BUSINESS CONDITIONS OVER THE PREVIOUS QUARTER.
63
%
of respondents predict
FAVORABLE
business conditions
20%
of respondents predict
NEUTRAL
business conditions
17%
of respondents predict
NEGATIVE
business conditions
Projected Budget/
Spend Over the
Next Year
54
%
of respondents predict
FAVORABLE
budget/spend
29
%
of respondents predict
FLAT
budget/spend
18%
of respondents predict
NEGATIVE
budget/spend
TREND FORECAST
take notes by
57% ofhandrespondents
during meetings.
“Everyone wants all information electronically using
Dropbox for handouts, sending evaluations electronically and
[having] schedules easily accessed on smartphones.”
paying for a meal or coffee break.
Ann Buhl, CMP, CMM (MPI Virginia Chapter), senior
manager of meetings, events and planning for the Federal Reserve Bank of Richmond, Va., says that given the
prevalence of food allergies, she can see registration
websites becoming more important.
“I can see a day where if you are serving food,
pre-registration may include a more detailed food information section,” she says.
TECHNOLOGY
MARCHES ON
In a trend that continues to gain momentum, technological innovation continues to disrupt meetings, with planners increasingly expecting new technology to be part of
the mix. For instance, the survey found that 55 percent
of respondents expect virtual attendance at meetings to
rise. In keeping with this trend, some industry profes-
BARBARA LOUIS, CMP
MPI Minnesota Chapter
CEO of Best Meetings Inc.
sionals are looking for budgets not simply for technology, but
for experimenting with new approaches.
One factor that is driving this is demand from organizers
and attendees. “Everyone wants all information electronically using Dropbox for handouts, sending evaluations electronically and [having] schedules easily accessed on smartphones,” says Barbara Louis, CMP (MPI Minnesota Chapter),
CEO at Best Meetings Inc. in Bloomington, Minn.
Buhl is seeing more use of technology, videoconferencing
and webstreaming to reduce travel and increase attendee
participation.
“For these meetings to be successful [the technology]
needs to become an integrated part of the meeting, not an
ATTENDANCE
FORECASTS
THE PAST YEAR HAS SEEN A 12% DROP IN RESPONDENTS THAT PROJECT
POSITIVE GROWTH FOR UPCOMING LIVE EVENT ATTENDANCE (DOWN
FROM 62%).* YET, LIVE AND VIRTUAL ATTENDANCE FIGURES ARE STILL
EXPECTED TO GROW 1.5% AND 2.5%, RESPECTIVELY.
Projected Live
Attendance
50
%
POSITIVE
34
FLAT
%
*The percentages
included in this
sentence have been
updated with the
correct data.
16%
NEGATIVE
TREND FORECAST
respondents identified the ideal length of
84% ofa traditional
conference presentation with a
single speaker as 20 or 30 minutes.
“I try to keep up-to-date on the
virus and build our contingency
plan accordingly. I’m taking the
media hype with a grain of salt. It’s a
very delicate balance. You have to
look at the odds.”
he says. “A lot of times I end up having to do floor plans
and squish people in.”
Given tight turnarounds, their firm is well aware that
it has to provide quotes much more quickly than in the
past and plan and schedule production and labor more
rapidly, as well. To offset those challenges, the firm has
tried to educate planners so they understand that more
planning time is needed to make the most of technology.
“It’s the tool that’s going to
get the message across—which
SHARON SCHENK, CMP
is the real reason for the event,
MPI New England Chapter
Director, Conventions and Event Management
whether you are delivering some
for CCA Global Partners Inc.
type of message, doing a product
launch or speaking about a specific cause,” Awad says.
add-on,” she says.
Buhl’s district
office, which organizes videoconferences that include anywhere from 20 to hundreds of
attendees, has prioritized the experience of joining these
gatherings to such an extent that it has developed a specification guide for videoconferences, offering guidance
on topics such as where the speaker should sit for the
best sound quality, how to ensure that remote participants can easily join the discussion and that remote and
non-remote participants all take breaks and lunch at the
same time.
“For us to be successful when we are a doing a videoconference meeting, it has to be set up like any meeting,
where best practices come into play,” she says.
Though many meeting organizers are putting technology front and center, providers say they still have
some educating to do, when it comes to integrating it
successfully into meetings.
Mark Awad (MPI Toronto Chapter), business development manager at bb Blanc, an audiovisual and entertainment firm headquartered in Toronto, has found that
some planners don’t allow enough lead time for audiovisual quotes for large programs.
“I can’t say every planner does that, but a couple
of times this year, it really affected the outcome for an
event,” he says.
Sometimes, his firm is asked to get involved in meetings well past the stage where it could be most helpful, he
and colleagues have found.
Mike Agard, an account manager who works with
Awad at bb Blanc, says the firm recently did some
last-minute work as a supplier for a large-scale event for
1,600 people for a large tech company in Toronto that included a trade show and breakout rooms. bb Blanc only
learned it had won the bid about a month beforehand.
“We basically had less than a month to make it all
happen,” he says. Ideally, he adds, event planners would
involve an AV firm in an event of that scale about a year
ahead.
“If AV companies were there from the start, we could
say, ‘Does this room work for this amount of people?’”
ZIKA FEARS
REMAIN IN CHECK
Although the Zika virus and threats of terrorism have
been in the news, these did not show up often among respondent concerns in the survey, which was conducted
May 18-31 (notably, prior to the mass shooting in Orlando). However, Sharon Schenk, CMP (MPI New England
Chapter), director, conventions and event management
at CCA Global Partners Inc., a large floor covering cooperative in Manchester, N.H., and St. Louis, Mo., has been
keeping abreast of reports on Zika and news on infected
areas, given that her firm plans conventions in and incentive trips to warm places—the Southern U.S. and the
Caribbean.
“Their safety is the most important concern to our
team,” she says.
Schenk has made it a regular part of her routine to
check government websites to see where outbreaks are
originating and keep up with preventative measures.
“I try to keep up-to-date on the virus and build our
contingency plan accordingly,” she says.
At the same time, she adds, “I’m taking the media
hype with a grain of salt. It’s a very delicate balance. You
have to look at the odds.” n
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Research conducted by Association Insights.
© 2016 Meeting Professionals International