Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle

For Planners, Sellers’ Market Demands New Approach

by Harvey Chipkin / October 28, 2013

The tide is turning for meetings and events as the industry enters a sellers’ market. The shift will require a new approach by meeting planners, according to a CWT Meetings & Events report.

The M&E Forecast is a supplement to the company’s 2014 Travel Price Forecast, which predicted increasing costs for airfare, hotels, ground transportations, and meetings and events.

The data indicate that providers will be successful in raising prices around the world next year, as demand continues to outpace supply in most locations, according to Tom Wagner, vice president for the Americas, CWT Meetings & Events.

Smaller meetings?
As costs increase, “we typically see planners pull back on group size to maintain their budgets,” he told Travel Market Report.

But that won’t be the case everywhere in 2014, Wagner added.

“The Asia-Pacific region will see an increase of 4% to 5% in cost per attendee per day and their group sizes are expected to climb between 3% to 5%. That indicates healthy M&E demand in that region.”

“Group sizes were more directly connected to price,” last year, said Wagner. “Where prices were going up significantly, group sizes went down [even in Asia-Pacific], and where prices were flat or increasing just a bit, planners were willing to increase group size slightly.”

Prepare to negotiate
Wagner said the changing landscape means planners should focus on the big picture and prepare to negotiate on total spend.

“The spending that is freed up, which could be up to 25%, can then be reinvested into the event to enhance the creative elements and attendee experience, leaving them with great memories and increased motivation to accomplish the goals that were identified during the meeting.”

6 tips for planners
CWT in its M&E Supplement offered the following recommendations for planners dealing with the shifting outlook:

1. Define the goal. Clearly define the meeting’s goal and how to measure its effectiveness.

2. Consider the big picture. Understand external factors and how they impact M&E suppliers and, ultimately, you. Examples: in your planning include economic indicators such as gross domestic product and inflation, and major events like the FIFA World Cup in soccer.

3. Book in advance. Book at least 45 days out for best availability and price for smaller meetings, longer for larger meetings or for those with unique requirements.

4. Invest in attendees. Take savings from improved overall M&E management and put it back into creative elements and attendee experience so that attendees leave with both great memories and increased motivation.

5. Broaden the approach. Consider secondary cities, alternative dates and midscale hotels that may deliver more for the budget.

6. Negotiate on total spend. Go beyond sleeping rooms and meeting space to include food and beverage, audio/visual support including Internet business center charges, and miscellaneous elements.

  0
  0
Related Articles
Meeting Trends Put Planners to the Test in 2016
Face-to-Face Time Drives Destination Decisions, Survey Says
Slow RFP Response Time Frustrates Planners

MOST VIEWED

  1. Why Travel Advisors Need to Learn to Say No to New Business
  2. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  3. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  4. Government of Canada Updates Its Mexico Travel Advisory
  5. European Union Delays Launch of ETIAS Until At Least 2024
  6. Royal Caribbean Eliminates Sky Pad Experience

MOST EMAILED

  1. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  2. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  3. Why Travel Advisors Need to Learn to Say No to New Business
  4. European Union Delays Launch of ETIAS Until At Least 2024
  5. Travelers Believe That Working With Advisors Is Only Way to Get a True Luxury Experience
  6. 9 Travel-Advisor Friendly Paris Boutique Hotels to Know About
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Selecting The Right Venue For Meetings And Events
Selecting The Right Venue For Meetings And Events

Look to these six trends in the MICE industry.

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/BDz_-mzUmZA/0.jpg
Meet South Africa with Your Local Guides
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy