Trends in the Meetings Industry
Edward E. Scannell, CMP, CSP
Things are looking up!!
Finally, after all our industry has been through the past few years, we’re seeing an upturn
in most all facets of the meetings arena.
That the world has changed dramatically is a trite truism. The impact of the events of September 11th will continue to affect our industry as it has the world over.
In all likelihood, there is not a single reader who was not -or is not- affected by those events. Even with the passing of time, the healing process is a long and painful one, both personally and professionally. Even after all these months, our industry is still feeling the aftermath.
Question: “When will things return to normal?”
Answer: “Get used to it! This IS normal!”yh
That our meetings industry had been dramatically impacted is a gross understatement. For starters, consider these facts:
·
Air Travel:
Although passenger traffic is climbing steadily, so are the prices of fuel, thereby still cutting profitability. For example, the Air Transport Assn. tells
us that every $1 increase in the price of a barrel adds $425 million to their operating costs.
· Lodging: Occupancy had been down 18-20%, but AHLA (American Hotel and Lodging Association) reports 2003 sales were up to $105.3 billion (almost a 3% increase over 2002). Pre-tax profits, however, dropped from $14.2 billion to $12.8 billion.
For simplicity, let’s talk in terms of the “ABC’s” of the factors facing us in the years ahead. Take a look at the top ten:
1. Attendance
While many associations had reported numbers decreasing as much as 15-50% from earlier years, remember that even before September 11, 2001, we had fewer numbers at our annual events. Happily, this, too, is finally changing. M&C’s 2004 Meetings Market Report suggests that overall attendance jumped a healthy 6%
from 2001 to 2003. In like manner, the number of meetings rose a modest 2%.
2. Attrition:
This issue just won’t go away! Almost one third (32%) of us paid attrition penalties in 2003. With attendees booking their rooms on the net rather than through the association’s housing offices, adds fuel to this fire. Sadly, 75% of our attendees just don’t get it!” and still seek ways to save those few dollars for themselves, not realizing the impact on their own association.
3. Accountability:
The ROI on our meetings has never been more critical. Members of our associations cope with this daily in every aspect of their jobs. The so-called “bottom line” seems to permeate everything. Certainly, even a formerly mundane type of decision in deciding whether or not to attend the association annual conference is now being scrutinized closely to see what kind of return on investment is brought forth.
4. Balance:
Consider that in most parts of our industry, the vast majority of our members are women. Many are single parents. Juggling the ever-increasing number of job responsibilities with fewer resources is, in itself a strong challenge. The constant challenge of “doing more with less” makes “Life Balance” a critical workplace issue.
5. Budgets:
The
aforementioned M&C study reports that 60% of
6. Business Ethics (or lack thereof):
A newcomer to the list, and a most unfortunate one at that. It would even be a good bet that any of us recite a litany of some well-known global companies who no longer exist. In far too many cases, the causal factors have been well publicized and in many, the disease of corporate greed has been the culprit. Ethics, integrity—call it what you will—it all comes out the same. The lack of basic values and honesty has impacted all of us directly or indirectly. And please don’t misunderstand—it’s not only in the corporate boardroom. A few years ago, in a southwestern university, 27 students were caught cheating in a final examination. Even that is not a surprising item to most of us—but the really sad point about this story is that the class was an Ethics class!
7. Corporate Downsizing:
Pick a paper—any paper—any day, and you’ll see evidence this ever-present challenge. This is particularly true of the airline industry. With most domestic carriers reporting losses in the billions, we’ll continue to see these downward movements in the workforce.
8. Demographics:
By 2005, 50% of all U.S. workers will be 40 years or older, and 25% will be 50 or over. In that same year, women will make up 63% of the workforce. We’re getting older (sorry about that). Of the 77 million baby boomers (born between 1946 and 1964), one now turns 50 every seven seconds (...and you know who you are!!). One of every ten people in the world is 60 years of age or older. By mid-century, that number will climb to one in five!
9. Education:
With due deference to the colleges and universities around the world, our meetings industry represents the largest classroom in the world! And though we had been experiencing a slowdown in “student enrollments”, those numbers will continue to increase in the coming months.
10. Forging Technology:
Today, there are over 500 million people online. In the U.S., 90% of all schoolchildren have access to the net. According to the World Future Society, technological change “..isn’t just happening fast. It’s happening at an exponential rate. In this century, we’ll see not just 100 years of progress, but 20,000 years of progress!”
SUMMARY
As you review your ABC’s, you’ll agree that our opening line, “Things are looking up!” is finally approphriate for our industry. And even these “top ten” are not at all
an exhaustive listing. For example, think about globalization, shorter meetings, shorter lead times, to name just a few. Moreover, the safety and travels are of real concern. (A recent USA Today article reported that 44% of Americans are still afraid to fly!) According to some reporters, this fear factor may never go away.
But ours is a resilient business with an even more enthusiastic workforce to match. We all understand the importance of face-to-face meetings and the results they achieve. We’ll need to continually tell – and sell- this important fact. The ball is in your court-- what are you going to do with it?
About the Author:
A frequent speaker at industry events,
Edward E. Scannell, Director of the Center for Professional Development and
Training in