LAST year presented many challenges for the international meetings industry including a volcanic ash cloud and continuing global instability. However, according to the Imex Meetings Industry Outlook Report, how to provide added value in the face of cost constraints was the issue that dominated most industry professionals’ thinking.
In general, respondents were pleased with the flexible attitude of venues in the face of changing demands. They also widely support a collaborative approach to developing return on investment metrics.
The survey attracted responses from 177 senior representatives in the meetings industry, including managing directors and CEOs, planners and business travel organisers.
While results from the 2009 survey revealed that just over half the respondents had needed to change their criteria for booking a venue – largely due to cost pressures – just over 58 per cent said there had been little change in their booking criteria this time around.
However cost pressures are still evident and a high proportion of respondents also agreed with the statements, ‘we put pressure on existing suppliers to reduce rates’ and ‘pressure on travel and accommodation costs meant we used more domestic and local venues than usual’.
Ranking their replies in order of priority, the majority relegated the use of venues with better broadband, Wi-Fi and technology to fourth place. Finding green venues ranked fifth.
Asked to comment on the status of their biggest annual event or meeting, 64 per cent of respondents said they went ahead as usual. For 25 per cent, however, it was different with reasons given for change as budget restrictions and the economic climate. Just 11 per cent said their main event did not go ahead in 2010, a drop of eight per cent from 2009 figures.
For 51 per cent of respondents, the most significant factor when booking a venue in 2010 was cost-effectiveness. However, ‘venues with exceptional standards and levels of service – not necessarily the cheapest’ also ranked highly along with ease of travel and location.
The survey also looked at how meeting and event organisers are making changes that add value. Making registration quicker and easier, incorporating online and SMS showed as the most frequent change for just over 81 per cent with the use of more dynamic speakers and presenters ranking a close second and conducting more pre-event research into content to match the expectations of delegates seen as equally important.
The need to give delegates live networking time was also acknowledged as important.
When asked what proportion of their client contracts in 2010 involved working through the procurement department, nearly 21 per cent of agency planners said more than half.
Just over 21 per cent said they had participated in at least one online auction over the past 12 months but the vast majority had not.
However, the drive to reduce costs means corporations and associations are forcing agencies to pitch more fiercely than ever against each other but almost half had turned down requests for proposals in the last 12 months amid fears of a bidding war, or because too many agencies were asked to tender.