the big picture: global industry status and prospects: north american perspective 2012 amsterdam
TRANSCRIPT
The Big Picture: Global Industry
Status and Prospects:
North American Perspective2012
AMSTERDAM
General Economy
1. Consumer confidence showing improvement
2. Unemployment rates falling slightly or stable
3. Housing prices and starts trending upward
4. Some concerns about inflation, interest rates
5. Recovery is somewhat regional
Business Travel Trends
2012 predicted to show some improvement
Demand for meetings and conventions projected to increase
• More meetings
• More attendees
• Incentive programs growing again
Business Travel Trends – cont’d
• Negligible growth for tradeshows– Number of exhibitors, number of attendees, revenues
slightly down; net square foot utilization slightly up
• Insurance, financial, consulting, high tech, healthcare and education expected to rebound
• Companies hiring: meetings geared to training
• Formal emphasis on communicating value of meetings
Meeting Characteristics:
• Planners remain: rate conscious – spending will decrease or remain flat; value focused
• Budgets take precedence• Profit and engagement tactics are new
measures: open, audience led meetings; access to business opportunities
• Some return to recreation and entertainment as part of experience: we can have some fun again
• Hybrid meetings increasing• Increased use of technology
Meeting Characteristics-cont’d
• Planners want: Price flexibility Opportunities to negotiate Shorter lead times Better customer service Better communication lines Added value: free wireless, green meetings consultancy, more services
US Snapshot
• Increased federal emphasis on improving competitive position for tourism
Brand USA
Increased federal funding
Addressing visa issue
Value of meetings still in dispute: mandated federal reductions
GSA a setback
Highly competitive environment
Mexican Snapshot
• Government supportive
• Continued investment in infrastructure
• Business travel a critical component of economic development strategy
• Is coping with destination image issues
Latin American Snapshot
• Limited infrastructure
• Private investment leading the way
• Economic growth leading to corporate and exhibition business
Canadian Snapshot
• Relative economic stability
• Corporate travel improving
• Continued product development, US economy and travel patterns present challenges
• Federal government support low for marketing, some assistance with infrastructure
Conclusion
Supply still over strips demand: competitive environment
“A Buyer’s Market”Operational profit/loss goals increasingly difficultBalancing economic impact measures with bottom
line realitiesTravel costs: air, hotelAccess issuesCompeting government priorities: communicating
value
Marcia Lyons Amsterdam, 2012