Plan Your Meetings

Meeting growth despite perception, attrition woes

For the first time since September 2008, meeting suppliers reported an improvement in business activity in the June 2009 MPI Business Barometer, and that upward swing has continued. According to the August 2009 MPI Business Barometer, 12 percent of suppliers are seeing an increase in bookings, versus 10 percent in June. Seven percent of planners report an increase in meetings and events.

For the first time in a year, the “poor economy” is no longer cited as the top trend affecting meeting professionals. The rate of meeting cancellations also appears to have slowed. Less than one percent of participants, versus seven percent in February 2009, report being affected by new cancellations. Concern over staffing reductions, meeting cancellations and government intervention have all declined significantly from percentages recorded in the February 2009 MPI Business Barometer.

Short lead times continue to be a pressing concern, and eight percent of suppliers say it is their most significant trend. But overall, the most influential trends cited by respondents is concern over the public perception of meetings and events. Even though it’s been months since negative rhetoric and media attention was directed at the industry, meeting professionals say they’re still dealing with how incentives, optional events, celebrations and “frills” may be perceived. As a result, planners are paying more attention to selecting meeting destinations that are not considered extravagant or luxurious and planning events strategically, putting more focus on efficiency, ROI, controlling costs and aligning meeting architecture to mirror business objectives. Planners also are using social networks to market events and drive attendance, and looking at incorporating more virtual meeting technology.

Domestic associations and government groups show the greatest positive growth. Twenty-eight percent of domestic association respondents report an increase of activity; 15 percent report a decline. Twenty-four percent of government respondents say they are seeing an increase of meetings, while only four percent indicate they are seeing less government business. The domestic corporate market remains the weakest. Although 19 percent of respondents are seeing an increase in corporate activity, 52 percent are experiencing a decrease in activity.

Other findings:

• 32 percent report a more than 10 percent decrease in attendance over last year’s numbers; 23 percent are seeing a six to 10 percent decrease; and 20 percent are seeing a decrease of one to five percent.
• 37 percent have cut meeting and event budgets by more than 10 percent this year.
• 43 percent say that, to a moderate extent, rising travel costs have caused them to change the way their business operates. Eighteen percent say the costs have had a significant impact, and 38 percent report no change.