THE annual EIBTM Global Industry Trends and Market Share Report showed cautious optimism for the coming year with indicators pointing to improved business conditions.
The report, which identifies the key trends for the meeting and incentives markets over the past 12 months and provides an outlook for 2011, was compiled by Rob Davidson, senior lecturer in business travel and tourism at the University of Westminster in London and EIBTM industry analyst.
He said: “Whilst for 2010 most economists were divided on whether the global recovery would grow, stall or even reverse, now there is talk about favourable prospects for global recovery albeit slow and uneven. The vast majority of indicators for the meetings and events industry points to improved business conditions ahead in 2011.”
Key findings included that global growth is likely to exceed four per cent in 2011, growth will continue to be unevenly distributed between developing and advanced nations, the weaker dollar and a rebound in the strong recovery of US exports helps explain high levels of business confidence and Asia Pacific has brushed off the recession.
Research also showed Europe to be split – while Greece, Ireland, Portugal and Spain tackle budget deficits, Germany and France point to recovery – the BRIC countries are set to outperform the world as a whole and by 2014 BRIC will account for 61 per cent of the overall growth in the world’s output.
MPI Business Barometers in 2010 have indicated that the industry continues its recovery at an even pace. The majority of August 2010 Business Barometer respondents (62 per cent) found business conditions are better than a year ago. At the same time, there was a clear majority feeling optimistic about the future, with 70 per cent projecting better upcoming business conditions than a year ago. According to the same source, the domestic association conference market leads the net activity increase in the US; while in the EU, the international corporate meetings market leads the net activity increase.
Trends in the corporate meetings sector include a discernable relaxing in restrictions on business travel, a resurgence in corporate meetings, particularly in Europe, leading a net increase in meetings activity in 2010, buyers becoming adept at driving down costs with tough negotiations, shorter lead times – from 30-45 days on average in the US – a continuing trend to avoid frills and the appearance of ‘lavishness’ and meetings spend becoming seriously conservative, highly image-conscious and focused on the basics.
In incentive travel, the market recovered slightly in 2010 – but less than the meetings sector – incentives have changed to provide a well defined ROI, the average number of nights per trip has fallen from 6.5 to four, trips are less extravagant, destinations are primarily domestic or shorter-haul international, growth in long haul is due to down grade of travel from business to economy class, every meeting now includes a business element and there are predictions that procurement and purchasing involvement within incentives will increase.
For association conferences lower onsite attendance has been predicted and there is a strong demand for educational content and sustainable meetings.
Other trends included the rapid growth in the use of social media by venues as part of marketing strategies and use of blogs, Facebook and Twitter to drive business to websites and learn what the market is saying.
Corporate social responsibility (CSR) also came in for a mention with 2010 seen as the year CSR became a ‘given’ in the industry.