2015 Meetings & Events Forecast

2015 Global Meetings & Events Forecast 2 AMERICAN EXPRESS MEETINGS & EVENTS 2015 MEETINGS & EVENTS FORECAST Contents

EXECUTIVE SUMMARY 5 TRENDS BY REGION AND COMMENTARY 59

North America 60

2015 GLOBAL MEETING ACTIVITY 8 Meetings Activity 60

Meetings Activity & Characteristics 9 Meetings Budgets & Planning 62

Budgets & Planning 11 Meeting Locations 63

Group Hotel Rates 13 Pricing Trends 63

Global Meeting Property Demand EMEA 64 & Supply 13 Meetings Activity 64

Global Group Air Trends 18 Meetings Budgets & Planning 67

Meeting Locations 67

GLOBAL TRENDS 23 Pricing Trends 68

Meetings Program & Policy Trends 24 Asia Pacific 69

Emerging Regions 36 Meetings Activity 69

Meetings Budgets & Planning 70

SPECIAL SECTIONS 39 Meeting Locations 70

Four Empowering Digital Pricing Trends 71 Event Solutions 40 Central/South America 72 Planning Meetings & Events in Meetings Activity 72 Emerging Countries 46 Meetings Budgets & Planning 73 The Benefits of Attendee Travel Management 51 Meeting Locations 74

Event Production Trends and Insights 55 Pricing Trends 75

2015 GLOBAL MEETINGS & EVENTS FORECAST 3 Methodology

To develop this 2015 Meetings Forecast, a number of sources were used including proprietary American Express Meetings & Events data sources, licensed third-party data and industry information, as well as interviews with industry leaders.

Information and data was gathered from actual and planned meetings activity of American Express Meetings & Events globally. Surveys of meeting professionals were conducted via Cvent’s proprietary web survey software to gather trends across North America, Europe (France, BeNe- Lux, Germany, Nordic, Spain and United Kingdom), Asia Pacific and Central/South America. A survey of leading hotel suppliers and follow-up interviews were also used to inform the finding in this forecast.

Please note that all information stated within this forecast is based on a survey distributed by American Express Meetings & Events to meeting industry professionals and suppliers during the months of July, August and September 2014.

This report contains confidential and proprietary information of GBT III B.V. d/b/a American Express Global Business Travel (“GBT”), and may not be copied, reproduced, modified, distributed, transferred or disclosed in whole or in part to any third parties without prior written consent of GBT. The information contained in this report is prepared from sources and data which we believe to be reliable, but we make no representation as to its accuracy or completeness and we assume neither responsibility nor liability for any damages or any type resulting from any errors or omissions. The report is provided solely for informational purposes and is not to be construed as providing advice, recommendations, endorsements, representations or warranties of any kind whatsoever. Opinions and analysis contained in this report represent the opinions and analysis of American Express Meetings & Events (a division of GBT) and do not represent the opinions or analysis of GBT, American Express Company or any of their respective affiliates, subsidiaries or divisions (including, without limitation, American Express Global Business Travel).

“American Express Meetings & Events” is a division of GBT. GBT is a joint venture that is not wholly-owned by American Express Company or any of its subsidiaries (“American Express”). “American Express Global Business Travel”, “American Express” and the American Express logo are trademarks of American Express, and are used under limited license.

4 AMERICAN EXPRESS MEETINGS & EVENTS EXECUTIVE SUMMARY ‘Back in Business’

Dear Reader, processes, increased scrutiny on spend and a larger focus around accountability It is our pleasure to bring you our fourth for delivering expected outcomes from annual global forecast for the Meetings or meetings activity. We believe this and Events industry. In reviewing the focus and discipline should help drive the results of the forecast surveys and long term health of the industry. observing worldwide activity in the ISSA JOUANEH marketplace, it appears that meetings New to the survey this year, we asked Vice President and are very much ‘back in business’, in respondents to answer questions on General Manager, particular as a key component of sales meeting activity, number of attendees, American Express Meetings & Events and marketing strategies for many length and more by individual meeting organizations. We see meetings playing type. This more detailed analysis has a critical role in an overall return to helped to shed more light on how indi- business fundamentals due to powerful vidual meeting types are faring within drivers, such as compliance, global overall meetings programs. For exam- expansion and standardized processes ple, the average advisory board meeting that will help to reduce risk and elevate is predicted to be 1.7 days, while most its visibility and strategic importance conferences and trade shows are likely within companies. to be 2.6 days on average.

2014 brought the meetings industry a Meeting budgets are showing movement continued broad recovery. Of course in in the most positive direction since our some micro economic climates uncer- initial 2011 forecast. Regional survey tainty remains, and some traditional respondents are either predicting growth high-growth areas such as Asia Pacific in their overall program spend, or a have seen a slowing of their growth, but smaller decline than in 2014. Program the industry overall continues to be on cuts appear to be either getting smaller track for expansion. In many organiza- or reversing, which is a new trend and tions, budget pressure exists, however clear a positive development. Within people are still holding meetings where organizations, it appears that changes there is clear need and purpose. The last in meeting budgets are much more likely few years have highlighted meetings and to reflect overall budgetary changes in events in a way that has driven a more 2015, rather than being singled out for disciplined approach around approvals smaller increases or more significant

2015 GLOBAL MEETINGS & EVENTS FORECAST 5 cuts than other spend categories. advantage of group rates and help address duty of care needs. As we look to 2015, hoteliers we surveyed are very optimistic about their When we asked planners about their ability to increase rates, as well as fill top concern when planning a meeting, rooms, predicting increases in both perception around use of resort desti- room rates and occupancy. Meeting nations was their number one concern. planners, particularly those seeking Economic / Political instability concerns high-demand locations for their meet- ranked second, perhaps reflecting con- ings, will likely feel the additional pres- tinued awareness of the uncertainties sure on their meeting budgets. With the that exist in many parts of the world, exception of Central/South America, coupled with increased duty of care the optimism expressed by hoteliers concerns. Environmental Issues / Green is supported by the positive outlook of were not on the radar of many planners meeting plannerswho predict increases surveyed and appears to have declined in nearly all meeting types included in in importance. our survey. In all regions, planners indicate meet- For the third year in a row, we expect a ings policies are increasingly present rise in demand for mid-tier properties in their organizations. Among policy across the globe. Those planners hoping components, payment and procure- to shift to mid-tier locations in an effort ment processes are noted as being to control their budgets should consider present more often in organizations booking well in advance as they are than other components. Meetings-re- likely to face increased competition lated compliance concerns within many for those rooms from other planners organizations continue to increase, and travelers. Hotel executives predict related to meetings in response to rising growth in the resort segment as well, as regulatory pressures for multinational they are seeing increased demand from corporations, particularly those operat- returning incentive travel programs and ing in foreign jurisdictions. high-end leisure travelers. The area of policy that saw one of the Air costs are also predicted to rise largest increases over the prior year was worldwide due to the combination of the notion of the globalization of meet- slightly higher demand and the tight ings programs. Inclusion of language management of capacity by airlines. in policies around global expansion Overall, an increase of 2% is predicted jumped significantly from last year with for air fares in 2015, slightly up from the more than 24% of respondents in all increase of 1.6% predicted for 2014. regions, with Central/South America These increases may be driving some of reporting 37%, indicating they are now the rising practice of integration of air applying their meeting policies globally. into the planning of the meeting overall, Whether driven purely by overall corpo- both to increase efficiency by taking rate global expansion or by increased

6 AMERICAN EXPRESS MEETINGS & EVENTS compliance pressures as companies incorporating attendee travel manage- As 2015 increasingly operate in emerging econ- ment into your meetings. We continue approaches, omies, globalization is a rising trend. to look for ways to enhance the forecast the meetings We see it driving many organizations’ and hope you’ll find this a valuable and events selection of suppliers, relying more on change. industry those with established global capabili- appears to ties to bring global expertise and local This year has been an exciting one for us once again capabilities together to deliver on their at American Express Meetings & Events, have a solid meeting program needs. as we have worked with clients to help foundation, develop and expand their programs – with an Technology continues to rise in impor- often in response to global need and increased tance with more meeting planners indi- growth, and together identified strate- focus on cating an increase in implementation of gies to capitalize on the opportunities optimizing technology in one aspect or another as presented by the changing technology spend and part of their meetings program. With landscape. In 2015, we will continue to delivering regard to virtual technology, planners help clients meet rising global expecta- results. indicate continued interest; however, tions for their meetings programs and adoption is slower than originally antic- implement expansion plans. For new ipated when comparing predicted use customers, we look forward to jointly to actual use. That said, in 2014, more designing and implementing meetings than a quarter of the planners in North programs that will help them bring clear America, Central / South America and purpose, disciplined processes and Asia Pacific indicated using virtual as a measurable outcomes to their meetings component of their meetings. Looking investment. ahead to 2015, planners across all regions are predicting virtual will be a As 2015 approaches, the meetings part of at least 10% of their meetings. and events industry appears to once The evolution and sophistication of the again have a solid foundation, with an technology appears to be making it increased focus on optimizing spend easier to use, leading to more serious and delivering results that will make this consideration around implementing next year an exciting and productive virtual/hybrid today, whereas in past one for the industry. We look forward to years the discussions were much more experiencing it with you. theoretical. Thank you, as always, for your interest We’ve taken a different direction with in the forecast. our special sections for the forecast this year, with a goal of providing greater Regards, insight and best practices in some key areas including planning meetings in ISSA JOUANEH emerging countries, integrating technology into your meetings, working Vice President and General Manager, with event production companies, and American Express Meetings & Events

2015 GLOBAL MEETINGS & EVENTS FORECAST 7 2015 Global Meeting Activity

In This Section 1. Meetings Activity & Characteristics 2. Budgets & Planning 3. Group Hotel Rates 4. Global Meeting Property Demand & Supply 5. Global Group Air Trends

8 AMERICAN EXPRESS MEETINGS & EVENTS Meetings Activity & Characteristics

Number of Meetings by Why are the predicted changes so small across Meeting Type all meeting types? During the last economic downturn many organizations cut meetings that Minor adjustments. In this year’s forecast sur- were deemed ‘non-essential’ and implemented vey, we asked respondents to provide meetings or refined their formal meeting approval pro- activity predictions per meeting type, to help cesses. Adding a new meeting to a program is uncover any shifts in priorities within meetings likely to face greater scrutiny in today’s environ- programs. Not surprisingly, the projected movement than in the past, and organizations may be ments in activity are small once again this year more inclined to repurpose or expand an existing but primarily predict growth and there are some event, rather than add a new one. Deep cuts interesting indicators of where program owners in activity are also less likely as the remaining are increasing and decreasing their meetings events are often those that are critical to achiev- investments. ing business objectives such as training events.

Overall, survey respondents in North America, Suppliers are bullish. Interestingly, hotel sup- Europe and Asia Pacific are positive in their pliers surveyed are much more positive in their predictions. The increase in predicted meetings predictions for meetings activity overall, as they activity in Asia Pacific, leads all regions, and rep- anticipate a 3.7% increase in 2015. It is possible resents a reversal from a small decline predicted that, while individual organizations are not plan- for 2014 when there was a bit of a slowdown ning significant increases, more organizations after years of growth as meeting activity in Asia in general are beginning to hold meetings, or Pacific leveled out along with the economy. increase the scope of existing meetings to add room nights, thus resulting in larger increases In North America, the positive sentiment for predicted by hoteliers. 2015 is a continuation from last year’s prediction of a 1.5% increase in meetings activity for 2014. Number of Attendees

European respondents overall predict minor Predictions for changes in attendee levels activity increases in most meeting types, up appear to mirror the activity predictions; the from a zero growth prediction for 2014. There changes expected are relatively small, and no is some variance within the major European one meeting type stands out from the others countries, which is discussed in more detail in across the regions. the Europe section of this forecast. Unlike activity levels however, there are a larger In Central/South America, respondents see number of declines predicted, particularly in overall meetings activity essentially remaining Europe and Central/South America, where the the same in 2015, similar to their 2014 forecast overall response is slightly negative. Meeting prediction but they are making the most sig- professionals in Asia Pacific predict the most nificant adjustments in the make-up of their significant increases in attendance, while North programs. American attendee levels will likely remain flat next year.

2015 GLOBAL MEETINGS & EVENTS FORECAST 9 PREDICTIONS

Indicates highest response in each region

Number of Meetings by Meeting Type

TYPE NORTH EUROPE CENTRAL/SOUTH ASIA GLOBAL AMERICA AMERICA HOTELIERS Sales/Marketing 0.5% 0.2% –1.2% 1.1% 3.7% Training 0.9% 0.1% 2.4% 1.0% Internal Team Meeting 0.0% 0.5% 0.4% 1.9% Product Launch (Internal/External) 0.0% 0.0% –0.5% 0.6% Conferences/Tradeshows 0.1% 0.4% –1.1% 0.9% Senior Leadership/Board Meeting 0.7% 0.5% –0.2% 2.0% Advisory Board 0.5% 1.2% –0.7% 0.2% Incentive/Special events –0.2% 0.0% 1.3% 0.7%

Number of Attendees

TYPE OF MEETING NORTH EUROPE CENTRAL/SOUTH ASIA AMERICA AMERICA Sales/Marketing 0.2% -0.9% -0.8% 1.4% Training 0.6% -0.8% -0.1% 0.6% GLOBAL HOTELIERS Internal Team Meeting -0.1% -0.4% -1.3% 0.7% Product Launch (Internal/External) 0.1% -0.6% -1.3% 0.4% 2.4% Conferences/Tradeshows 0.5% -0.8% 0.1% 1.1% Senior Leadership Meeting/Board Meeting 0.3% -0.6% -0.4% 0.6% Advisory Board -0.2% -0.1% -0.3% -0.3% Incentive/Special events -0.2% -1.0% -0.1% 1.1%

Number of Days per Meeting

TYPE NORTH EUROPE CENTRAL/SOUTH ASIA AVERAGE AMERICA AMERICA Sales/Marketing 2.4 2.0 2.6 2.2 2.3 Training 2.4 2.0 2.5 1.8 2.2 Internal Team Meeting 1.8 1.8 2.2 1.5 1.8 Product Launch (Internal/External) 2.2 2.1 2.0 1.3 1.9 Conferences/Tradeshows 2.9 2.8 1.9 2.6 2.6 Senior Leadership Meeting/Board Meeting 2.1 1.8 2.0 1.8 2.0 Advisory Board 1.7 1.6 1.8 1.6 1.7 Incentive/Special events 3.2 3.1 3.8 2.9 3.2

(Sources: American Express Meetings & Events North American, European, Asia Pacific, Central/South American and Key Supplier Surveys, August 2014)

10 AMERICAN EXPRESS MEETINGS & EVENTS The narrow range of predictions again suggests Regionally, results indicate that meetings in Asia that there is no industry wide emphasis on Pacific tend to be just slightly shorter than in increasing or decreasing the size of a particular other regions, by approximately 10%, on aver- meeting type. The small declines also suggest age. Meeting experts in the region see meeting that many organizations have already ‘right- owners who are facing budget constraints sized’ their meetings during the past few years choosing to condense their meetings to a shorter and there is little room for further reductions. duration in order to reduce their spend. As travel can also take significant time in the region, meet- Days per Meeting ing owners may also be trying to minimize time away from the office for attendees. To each its own. Where respondents predicted some significant variation is in average duration Shorter and more succinct. Kaaren Hamilton, of different meeting types. Respondents indi- Vice President of Global Sales for Carlson-Rez- cated that global average for all meeting types idor noted that in the past it wasn’t unusual to was 2.2 days. Conferences/Tradeshows (2.6 see a 4 or 5-day meeting. Over the last few years, days) and Incentives/Special Events (3.2 days) since the recession, meetings of that length have are significantly longer than the average, while disappeared for the most part in an effort by Advisory Board (1.7 days) and Internal Team organizations to be more efficient. She believes Meetings (1.8 days) are somewhat shorter in this change is likely a permanent one and the length. survey results seem to concur.

Budgets & Planning

Overall Meeting Spend within Individual Meeting Budgets Organizations More, for a discount. While meeting spend Slowly moving in the right direction. Respon- overall is predicted to increase slightly, likely due dent predictions for overall meetings program to more volume of meetings,individual meeting spend in 2015 are slightly more optimistic budgets are predicted to decline across the compared to their 2014 predictions. North globe, except in Central/South America. Meeting American and Central/South American respon- owners and planners will likely be in a position dents expect slight growth in program spending. of trying to execute meetings of the same mag- Respondents from Europe and Asia Pacific nitude in 2015 with fewer funds to spend on a predict declines that are smaller in magnitude per-meeting basis. Planners interviewed have than in 2014. Program cuts appear to either be noticed that meeting owners are being pres- getting smaller or reversing, which is a good sign sured to deliver the same quality of experience for the industry. as in previous years, but hotel and air rates are expected to rise which, according to several

2015 GLOBAL MEETINGS & EVENTS FORECAST 11 PREDICTIONS

Overall Meeting Spend within Organizations

Overall Spend Individual Budgets Lead Times

1.2% 1.2 North America -2.1% 0.9% 0.8% 0.6% Europe -1.9% 0.6 0.3% Central/South America -0.3% 0 Asia -1.8% -0.2% -0.2% -0.6 Global Hotelier -2.0% -0.4% -0.7% -1.2

-1.5% (Sources: American Express Meetings & Events North American, European, Asia NORTH EUROPE CENTRAL/SOUTH ASIA GLOBAL Pacific, Central/South American and AMERICA AMERICA HOTELIER Key Supplier Surveys, August 2014)

Group Hotel Rates 2014 Reported 2015 Projected

4.6% 4.6% 5% 4.1% 4% 3.3% 3.4% (Sources: American Express 2.7% 3% Meetings & Events North 2.3% American, European, Asia 1.8% 2% Pacific, Central/South 1.1% American and Key Supplier 1% Surveys, August 2014 and 0% September 2013) 0 NORTH EUROPE CENTRAL/SOUTH ASIA GLOBAL AMERICA AMERICA HOTELIER

Property Type Demand

Indicates highest response in each region

TYPE NORTH EUROPECENTRAL/SOUTH ASIA GLOBAL AMERICA AMERICA HOTELIER Resort Properties -0.6% -2.6% 0.0% -0.9% 3.2% Luxury Properties -0.9% -2.2% -3.1% -1.9% 2.1% Mid Tier Properties 2.3% 1.4% 1.6% 1.8% 3.8% Lower-Tier Properties -0.6% -0.1% 1.1% 0.1% 1.9% Non-Traditional Meetings facilities 2.1% 1.6% 0.0% 3.4% 4.5%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, Central/South American and Key Supplier Surveys, August 2014)

12 AMERICAN EXPRESS MEETINGS & EVENTS meetings executives interviewed for this fore- Group Hotel Rates cast, has already made some negotiations with suppliers quite difficult. Hotel suppliers are once A higher price to pay. Average group hotel again more positive in their predictions, with rates are expected to rise between 1% and 5% small global increases predicted for both overall globally, putting pressure on individual meeting meeting spend and individual meeting budgets. budgets, as mentioned above. Respondent predictions are a close match to their 2014 rate predictions, with North America leading this year Lead Times at 4.6% and Europe on the lower end at a 1.1% increase. A little tighter. Respondent predictions for shorter lead times are very consistent across all Global Hoteliers are predicting a 3.4% increase but the Central/South America region. The 2% in rates that is on the higher side of most decline expected is relatively small and commen- regional predictions. A Director of Corporate tary from multiple experts interviewed around the Sales for a major hotel supplier noted that world seems to mirror this prediction. They feel “Mid-week, hotels are filling up and occupancy is that lead times have declined so much in the past reaching 2007 levels.” He believes that the meet- few years that any further significant declines are ings industry has moved into a sellers’ market in highly unlikely. They also see the increasing occu- many locations around the globe. This situation pancy rates at hotels putting pressure on meeting will increase the challenge for meeting planners owners to begin their planning sooner in order to looking to negotiate discounts on their room secure their desired meeting locations. rates in 2015, particularly if they are working with a short lead time.

Global Meeting Property Demand & Supply

Property Type Demand space required for their meetings at mid-tier properties, particularly in high-demand cities like Meeting in the middle. Respondents see the Chicago or Paris. Hotel executives are predicting demand for mid-tier properties continuing to more growth in the resort segment, reflecting rise in all parts of the world, likely pulling some increases in incentives and higher-end leisure demand away from resort and luxury properties. travel. Unfortunately for meeting planners, global hoteliers are seeing demand in the mid-tier sector A need for something new. Meeting experts rising even higher, and demand rising in general, interviewed have noted that owners are looking for all property types. Therefore, meeting for something new or different as it relates owners will likely face increased competition for to their meeting location, hence the highest hotel rooms from not only other meetings but predicted rise in demand is for non-traditional from increasing numbers of transient business meetings facilities – a continuing and growing and leisure travelers as well. Some meeting trend from prior years. Meeting owners are planners may face challenges in securing the asking their planners to research locations such

2015 GLOBAL MEETINGS & EVENTS FORECAST 13 as museums and ball parks in their desire to find 2015 Hotel Openings & a unique location for their events. One expert Construction by Region even noticed a level of competition between meeting owners within some organizations as Construction remains steady. A look at mid- they attempt to secure the ‘best new location’ scale to luxury hotel openings from 2013 to for their meetings. 2015, compiled by TOPHOTELPROJECTS GmbH illustrates a very consistent pattern of Europe Within traditional properties, hotel suppliers are leading in new openings, followed by Asia Pacific seeing meetings owners asking to hold events in and North & Central America. This trend is likely innovative locations, such as an outdoor garden to continue; new hotel construction figures for or courtyard to provide an alternative to typical 2015 also align closely with 2014 figures, albeit meeting rooms for a portion of their events. higher in all regions except for Europe. Some of this demand is a result of the new generation of meetings attendees who “are used Rolf W. Schmidt, Managing Director of to multi-tasking with lots of things happening at TOPHOTELPROJECTS GmbH does not per- the same time,” says Yma Sherry, Vice President ceive any“dramatic changes” in openings and of American Express Meetings and Events, North construction, although he does see new con- America. “Put them into a dark ballroom with struction activity in North and Central America PowerPoint and you’ve lost them.” returning to pre-recession levels, which is a

Hotel Openings (Midscale to Luxury Segments) 2013-2015

2013 2014 2015

600

500

400

300

200

100 (Source: TOPHOTELPROJECTS 0 GmbH, as of August 2014)

EUROPE APAC MIDDLE NORTH & CENTRAL SOUTH AFRICA EAST AMERICA AMERICA

14 AMERICAN EXPRESS MEETINGS & EVENTS welcome sign for meeting planners looking for Varying levels of luxury. A look at the ratio new and interesting properties. His sense is that of midscale to luxury properties highlights nearly all upscale, and upper upscale projects the differences in regional hotel construction. are building for meeting space, as are many Europe and North America in particular expect leisure properties that look to meetings activity more than 3.5 midscale property openings for to help fill their space in low seasons. each luxury hotel opening, reflecting the demand from leisure, business and meeting travel in Africa. The heat is on. Mr. Schmidt has noticed those regions. In Asia, the Middle East and that Africa has been referred to as a ‘hot spot’ Africa, more luxury properties plan to open than with 2015 planned openings up 40% from its midscale ones in 2015. 2013 value. There are some doubts within the industry however, whether this level of new The Middle East complex model. In the Middle construction within the region is sustainable, East, hotels under construction are often built as particularly given some of the political instabil- part of a larger infrastructure complex, such as ity present in some African countries and the a shopping area, or a dedicated conference area. challenges associated with initiating and devel- The hotels are designed specifically to integrate oping hotel projects in a number of sub-Saharan with these new complexes. countries.

4 & 5 Star Hotels Under Construction 2015 vs. 2014

2014 2015

1200 Europe -4%

APAC +3%

900 Middle East +17%

North & +12% Central America 600 South America +21%

Africa +16%

300

(Source: TOPHOTELPROJECTS 0 GmbH, as of August 2014)

EUROPE APAC MIDDLE NORTH & CENTRAL SOUTH AFRICA EAST AMERICA AMERICA

2015 GLOBAL MEETINGS & EVENTS FORECAST 15 Top Cities for Hotel Openings

LONDON Top four remain the same. London, Dubai, New York and Riyadh top the list of cities for global hotel openings in 2015, as they did in 38 2014. Munich and Jakarta have joined this year’s Top 10 list while Paris has dropped off the list. Chengdu and Berlin just made the DUBAI cut, tied for 10th position. 34 Regionally, Jakarta is leading in hotel openings, an indication of its NEW YORK rising tourism development, supported by the Indonesian govern- ment. Mr. Schmidt also noted that a similar number of projects 31 are planned for Bali.

RIYADH In China, the leading cities are Chengdu, a ‘secondary’ city, but still very large with a population of over 14 million, and Sanya, a 21 popular tourist destination.

(Source: TOPHOTELPROJECTS Noteworthy as well is South America’s list, which includes Cart- GmbH, as of August 2014) agena, a city seeing increased demand for meetings and events according to meetings experts within the region.

Ratio of Midscale to Luxury Hotel Openings, 2013-2015 Number of midscale hotel openings for every luxury hotel opening

2013 2014 2015

(Source: TOPHOTELPROJECTS 0 GmbH, as of August 2014)

EUROPE APAC MIDDLE NORTH & CENTRAL SOUTH AFRICA EAST AMERICA AMERICA

16 AMERICAN EXPRESS MEETINGS & EVENTS Top 3 Cities per region: 2015 Hotel Openings

CITY HOTELS CITY HOTELS New York 31 Dubai 34 NORTH Chicago 12 MIDDLE Riyadh 21 AMERICA EAST Miami 11 Doha 17

London 38 Jakarta 15 EUROPE Munich 17 ASIA Chengdu 14 Istanbul 15 Sanya (China) 13

Cartagena 5 Marrakech 10 SOUTH AFRICA AMERICA Lima 4 Algiers 6 Montevideo 4 Cairo 6

(Source: TOPHOTELPROJECTS GmbH, as of August 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 17

Global Group Air Trends Regional Group Air Rates Group Air Rates Higher occupancies push North American Rising higher. The results of our group air survey fares higher. Survey respondents all see group point towards increases of approximately 2% for airfares rising in 2015, with North American both 2015 and 2016, up slightly from the predic- respondents anticipating the largest increase of tion of a 1.6% increase for 2014. 5%. Group air experts within American Express Meetings & Events have noted that additional With crude oil prices predicted by the U.S. Energy fees associated with airfares are helping to push Information Administration to decline by approxi- North American fares higher, and airlines appear mately 4% ($96.08 in 2015 vs. $100.45 in 2014), it to be less willing to negotiate as their occupancy is unlikely that a significant change in jet fuel prices levels rise. will be the main driver of these increases. Increas- ing demand for air travel in general, and tighter According to one group air expert, it appears controls on supply by the airlin es is likely providing that airlines are monitoring their flights more them with the ability to push fares higher. carefully and are eliminating lower cost fares more quickly. She also feels that if a particular market is not performing as well as expected,

PREDICTION airlines are quicker to reduce their schedules or exit that airport altogether.

Group Air Rates One market that may not see an increase of this magnitude is Las Vegas due to the high volume demand that exists for that city. 2015 2016 Greater competition in Europe. European +2.0% +2.3% predictions of an increase are much lower than North America, at just 1%. The stiff competition amongst airlines within the major European markets helps to mitigate the impact of higher Regional Group Air Rates demand on air rates. REGION INCREASE Airline Capacity & Group Volume North America 5.0% Europe 1.0% More seats available. Group air experts sur- Central/South America 1.4% veyed all see both airline capacity and volume Asia Pacific 1.6% rising slightly in all regions next year. As air availability increases in importance in the meetings (Source: American Express Meetings & Events Group Air Expert Survey, August 2014) location selection process, this is expansion in capacity is welcome.

18 AMERICAN EXPRESS MEETINGS & EVENTS Air experts however, see the airlines being very While it may rise slightly in 2015, an American strategic about the placement of larger aircraft, Express Meetings & Events group air buyer specifically into markets where it is clear the based in Atlanta noted that demand for business demand exists. In other cases, airlines are class seats for group air programs, in general, reconfiguring some aircraft to increase their has declined significantly over the past few seat capacity instead of adding flights or larger years. “Six years ago, we saw more business aircraft. Either way, high demand cities will likely class, particularly for international flights but we see added capacity, while lower demand cities very rarely get business class requests any- may continue to pose a challenge for large more,” according to our buyer. group movements. Managing Attendee Air Fare Class Usage

The inclusion of group air management into Respondents to this year’s group air survey are event planning can have many benefits, both indicating a slight increase in the ratio of business for meeting owners, and for attendees. For class seats to economy seats in group air pro- more details, see the special section entitled grams. Those surveyed are indicating that the ratio “Attendee Travel Management: Why It’s Worth has risen to 10% from 8% in our 2014 forecast. the Effort” included in this forecast.

PREDICTION

2015 Airline Capacity and Volume

2013 2014 2015

600

500

400

300

200

100 (Source: American Express Meetings & Events Group Air 0 Expert Survey, August 2014)

EUROPE APAC MIDDLE NORTH & CENTRAL SOUTH AFRICA EAST AMERICA AMERICA

2015 GLOBAL MEETINGS & EVENTS FORECAST 19 SURVEY RESULTS Percentage of Meetings that Include Group Air Management

1-10% 10%-25% 26%-50% Over 50%

NORTH AMERICA

EUROPE

CENTRAL & SOUTH AMERICA

ASIA

0 20 40 60 80 100

(Source: American Express Meetings & Events Group Air Expert Survey, August 2014)

This year’s survey results illustrate that the buyers are seeing more meeting owners who have integration of air travel into meetings planning meetings of 50 or more travelers requesting an is not a standard practice across the majority air analysis as part of their planning process. of organizations. Instead, it is a relatively common practice (included in 50%+ meetings) Norma Dean, Director of Specialty Sales for for approximately 30% of North American Delta Air Lines, has also noticed a significant and European respondents and nearly 50% of increase in demand from North American Central/South American respondents. In Asia organizations for the airline’s group and meet- Pacific, the practice is much less mature. ings travel products. She is seeing an increased involvement in group airfare discussions from Meeting owners who are asking their planners to individuals responsible for transient travel within manage air travel as part of the meeting overall, their organizations, as companies are viewing indicate they are often doing so because it helps their transient and meetings spend from a holis- to keep air costs under control by ensuring that tic perspective. “There’s a greater tie between attendee flights are within the parameters set the transient and the meetings business than for the meeting, versus allowing them to book on has existed in the past,” says Dean. their own. There have also been increased efforts by many Air Analysis Resurgence: In North America, organizations to integrate their online booking meeting professionals have seen resurgence in tools with their attendee registration tools, which the demand for assistance in conducting an air allows attendees to link directly to a sub-site of analysis for corporate meetings and events. Air the transient booking tool to make meetings-re- analysis provides a reasonable estimate of the lated travel purchases. This integration also can airfare costs associated with the event to poten- enable meeting owners to easily access attendee tial destinations to assist the meeting owner with travel data from the registration tools. selecting the best destination for the event. Air

20 AMERICAN EXPRESS MEETINGS & EVENTS Coastal preferences. Our group air expert agreement as there is a sense that many attend- also noted that most requests for group air are ees will need to fly with that airline, regardless of related to events in North American on either the presence of a discount. the east or west coast of the US. The lower air lift available for many Midwest cities, such as St. Alliances aligning. Norma Dean of Delta men- Louis or Kansas City, is seen as a factor in driv- tioned that alliances such as SkyTeam have ing down demand for events in those locations. aligned their meetings product policies and processes to make the pricing and experience more Types of Contracts consistent across alliance partners. Terms and pricing for group air contracts, consisting of 10+ Flat rates preferred. Air experts indicate that passengers for a specific routing are more likely airlines prefer to negotiate flat rate contracts for to vary across airlines within a given alliance, as single destinations, and are open to adding mini they are negotiated on a specific airline basis. (Source: American Express Meetings & Events Group Air Expert Survey, August 2014) route deals or conference rates as well. However the results indicate they do not like to negotiate Bigger in Japan? Japan’s efforts to promote mini-route deals or conference window rates on itself as an attractive destination for meetings their own. and events appears to be paying off. Norma Dean noted the Delta’s meetings-related busi- Group air professionals interviewed also ness for Japanese destinations is relatively mentioned that they often secure block space small, but is growing at a very significant rate. agreements with airlines to carry typically 20 to 40 attendees from a particular city, but securing Group Air Contract Elements discounts from airlines of more than 3-5% can be challenging. Above 40 travelers, the airlines are often less inclined to negotiate an Deadlines & deviations are open for negotiation. Ticketing deadlines and deviations, such as altering a routing or adding a stopover city, are the contract elements that respondents find airlines SURVEY RESULTS are most often willing to negotiate, likely because these elements do not directly result in a loss of What Type of Deals Do Airlines revenue or increased hard dollar costs, and there is Prefer to Negotiate? a recognition among airlines that meeting planners have to be flexible with their groups.

Not surprisingly, carbon emissions, cancellation 14% 41% Other Flat rate fees and attrition penalties are more difficult for from one respondents to negotiate with airlines as they destination + Mini routes do directly impact revenues and costs for the deals/conferece airlines. Cancellation penalties for many North 45% window rates American based airlines are now on average Flat rate $200, according to our group air buyer. from one destination

2015 GLOBAL MEETINGS & EVENTS FORECAST 21

(Source: American Express Meetings & Events Group Air Expert Survey, August 2014) SURVEY RESULTS

Indicates highest response

Terms Included in Terms Airlines are Open to Group Air Contracts Negotiate in Contract

In line with the negotiation information above, Cancellation Fees 37% the incorporation of terms related to ticketing deadlines into group air contracts is increasing, Change Fees 61% according to respondents. Attrition Penalties 38%

More respondents see complimentary lounge Concession Tickets 56% access and carbon emission offset terms Name Changes 70% decreasing in contracts than any other terms. Ticketing Deadlines 95% Air experts interviewed noted that they rarely are asked by meeting owners to request compli- Deviations 81% mentary lounge access as prior experience has Complimentary Lounge Access 57% shown it is difficult to secure. Complimentary Carbon Emissions Offsets 33% Wi-Fi access and concession tickets are also less often included in contracts for over 40% of Complimentary Wifi 56% respondents. Where Available

Terms Included in Group Air Contracts

LESS OFTEN STAYING THE SAME MORE OFTEN REDUCED CANCELLATION FEES REMOVAL OF CHANGE FEES REDUCED ATTRITION PENALTIES CONCESSION TICKETS NAME CHANGES TICKETING DEADLINES

DEVIATIONS

COMPLIMENTARY LOUNGE ACCESS CARBON EMISSIONS OFFSETS COMPLIMENTARY WIFI WHERE AVAILABLE

(Source:22 AMERICAN American EXPRESS Express MEETINGS Meetings & EVENTS & Events Group Air Expert Survey, August 2014) Global Trends

In This Section

1. Meetings Program & Policy Trends 2. Emerging Regions

2015 GLOBAL MEETINGS & EVENTS FORECAST 23 Meetings Top Concerns Program Perception, and reality. When asked to select their top concern when planning a meeting, the stigma attached to selecting a resort-style & Policy destination was the top concern for respondents in all regions, except for Asia Pacific, where there Trends appears to be a greater acceptance of these destinations from a public relations perspective.

Economic and political instability concerns were also highly rated, as these uncertainties existed in many parts of the world during the latter half of 2014. Safety concerns, a top selection in the 2014 forecast, did not rate as highly this year, as compared to the other two concerns, though given the interrelated nature of these concepts, safety is still on the minds of planners.

Has ‘green’ lost its luster? Environmental or green issues was least selected as a top concern by all regional respondents. According to a meetings executive based in Germany, “Green is not really a trend anymore. It’s something people talk about, but it’s not driving the property decisions,

PREDICTION

Indicates highest response in each region

Top Concern When Planning a Meeting

TOP CONCERN NORTH EUROPE CENTRAL/ ASIA GLOBAL AMERICA SOUTH AMERICA HOTELIERS Economic/Political Instability Concerns 23% 34% 32% 38% 34% Currency/Exchange Rate 11% 4% 21% 9% 24% Environmental Issues/Green 3% 3% 0% 2% 0% Safety Concerns 23% 18% 16% 32% 17% Perceptions around "resort" 40% 41% 32% 18% 24% destinations for meetings

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

24 AMERICAN EXPRESS MEETINGS & EVENTS whereas two to three years ago it could drive the the results of meetings that receive investments location choice.” He sees a much greater interest be measured in some quantifiable manner. in how well a hotel is equipped with the desired technology for an event. There does not appear to be one consistent way meetings are measured. Companies use a variety of techniques to understand and Policy Status & Components measure the value of their meetings including traditional post-event satisfaction surveys, pre Meeting planning gets more formal. We asked and post-event attendee surveys measuring meeting professionals about the state of their progress against key objectives, or reviewing formal meeting policies. Except in Central/ engagement metrics via mobile app data. South America, similar to last year, planners Agreeing on key metrics for the meeting before see policies becoming more formalized around planning begins should help keep the meeting the world. Over two-thirds of North American owners and planners focused on delivering and European respondents report that a formal against those metrics. policy is in place for the entire organization, and nearly two-thirds of respondents in Asia Pacific Global Expansion and have policies at least in place for some parts of Standardization their organization.

It appears that many more organizations have Thinking globally, successfully. Policy lan- initiated or implemented a policy as well, with guage related to global expansion and standard- only Asia Pacific reporting more than 21% of ization of meetings and events programs has organizations having no formal policy at all. also apparently jumped significantly since last year’s survey when 17-18% of respondents in all Respondents were also asked to indicate which regions reported their organizations included it of the following meetings components are explic- in their overall meetings policy. itly addressed within their meetings polices. Now, more than 24% of all respondents in all regions, and as many as 37%, indicate that they Meetings ROI Metrics are applying their meeting policies globally.

ROI matters more. While still relatively small Milton Rivera, Vice President, Global Business compared to other policy components, the Development for American Express Meetings & percentage of respondents reporting explicit Events has noticed that a higher level of collabo- language around the expanded use of ROI met- ration between company departments, such as rics has risen significantly in all regions, except sales, marketing, finance, communications and for Central/South America, from single-digit procurement, often in the form of global meet- percentages in our 2014 forecast. ings-focused project teams or steering commit- tees, is driving the successful implementation Closely tied with increased scrutiny of meetings of standardized meeting practices. Whereas, in during the approval process, more companies one example, Rivera had seen a procurement around the world appear to be demanding that department make seven unsuccessful attempts

2015 GLOBAL MEETINGS & EVENTS FORECAST 25 SURVEY RESULTS

Formal Meetings Policy Status

Formal policy is in place for the entire organization

Policies are in place for some parts of the organization (e.g. not all departments, geographies)

Formal policy is in development

No formal policy exists

NORTH asdasd

80 60 40 0 AMERICA 68% 18% 2 8%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

EUROPE 72% 20%

CENTRAL & 63% 21% 11% SOUTH AMERICA

ASIA PACIFIC 21% 42% 17% 21%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

Components Included in Organizational Meetings Policies

Indicates highest response in each region

TYPE NORTH EUROPE CENTRAL/ ASIA AMERICA SOUTH AMERICA Expansion of meetings ROI metrics 13% 18% 5% 20% Global expansion/standardization of 24% 30% 37% 26% meetings and events program Implementation of meeting planning technology 22% 29% 16% 23% Meetings/events payments tools 44% 31% 58% 35% Social Media 10% 9% 5% 2% Payment methods and processes 59% 45% 68% 38% associated with meeting/events goods and services Procurement of meetings/events goods and services 59% 45% 58% 34% Safety and security 37% 37% 68% 38% Use of 3rd party meeting planners 35% 18% 32% 17%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

26 AMERICAN EXPRESS MEETINGS & EVENTS Striking a Balance: to standardize meetings practices globally in a ten year period, this new level of co-operation Global Standardization Tips has “certainly resulted in a much higher success There appears to be a need to find a rate.” Rivera believes the impetus for this effort balance between standardization and is the desire of organizations to manage their global meeting management activities from a allowing for unique requirements within transparency, financial and process standpoint. the individual markets. Here are a few points of advice based on our experience Experts have also noticed that, as the business helping global clients to standardize their market begins to operate more globally, compa- meeting programs. nies are more capable of implementing global level programs. While many companies in the There’s rarely a ‘one-size-fits-all’ past have struggled to take a successful stra- 1 approach that works across an entire tegic meetings management program in North global organization. America to other regions, due to market level autonomy and limited infrastructure, meet- A global governance infrastructure ings-focused efforts can now take advantage 2 that is then enabled by the local of global infrastructures that have been put in market service, execution and place for other business objectives. delivery personnel has been seen to work well for many companies. Meeting Planning Technology Consider a set of strategies, Technology rises in importance. Policies 3 guidelines and policies that is globally associated with implementing meeting plan- driven, and then allow for some ning technology have also increased across all customization to account for local regions from a 2014 forecast range of 14-17%, to market differences and regulations. a range of 16-28% for 2015. One reason noted by experts interviewed is the increased integration Keep in mind that from market between meeting technologies and other critical 4 to market, the volume of activity, business systems that have increased their available resources, and the potential value. vendor community will likely vary considerably, which can impact your Extending the conversation. A North American organization’s ability to operate at meeting expert notes that many meeting pro- the same strategic level across all gram owners are investigating how to integrate markets. attendee management technologies into customer relationship management and marketing Each organization is unique. Take systems such as Salesforce.com. Within the 5 last year, he is seeing an increase in companies the time to identify the different taking a “thoughtful and systemic approach inte- departments and stakeholders that grating meetings management technology into will be impacted and gain consensus the end-to-end sales and marketing process.” on the degree of influence they will have on the design of the global program. 2015 GLOBAL MEETINGS & EVENTS FORECAST 27 One example noted is the goal of using each of mobile apps for meetings and events, the attendee’s unique session attendance informa- most popular feature within their apps is the tion to influence and refine the sales process. activity feed, which is a contained social media Ideally, these efforts will result in an improved feed that pertains directly to the event. It is understanding of the ROI associated with each seen that attendees participate more actively event as well. the event app’s activity feed over broader social media channels, such as Twitter or Facebook, Technology as the enabler, not the answer. On because event-specific posts are highly relevant another positive note, Milton Rivera has wit- and immediately actionable, may not be to the nessed, “a prevailing new understanding that broader audience that exists on traditional social meetings technology, in isolation, won’t deliver a media channels. This focused social channel strategic meetings management program for an provides a more engaging outlet for attendees organization. It’s a driver and enabler.” Accord- and the ability for planners to listen and respond ing to Rivera, there’s a recognition that it takes a to attendees easily, while capturing their implicit combination of technology and formalized pro- social signals of interest. Much can be learned cesses to ensure that the technology delivers the from these app engagement metrics, empower- information and results an organization requires. ing planners to improve future events. In the past, he’d seen many global organizations purchase technology only to see it implemented John Iannini, Vice President Melia Hotels Interna- properly by a small set of divisions and generate tional, Meetings & Events noted that one of the data that was both insufficient and incomplete. reasons hotel rates are likely to rise is the need for properties to increase the Internet bandwidth available to meeting attendees who are increas- Social Media ing their use of mobile devices at events. It’s likely that a significant portion of the bandwidth Social media continues to be a source of consumption is related to social media activity. opportunity and risk for meeting owners, but its importance has yet to be reflected in many Payment Trends organizational meetings policies. No more than 10% of respondents in any region indicate the incorporation of specific language around social Policies specifying meetings and payments tools media use within their meetings policies. Ameri- are incorporated into 31% to 58% of organiza- can Express Meetings & Events recently release tions, depending on the region with Central/ a study specifically looking at technology use in South American respondents reporting the meetings. In that study, we observed that social highest percentage. media is growing in importance to both meeting planners and attendees, so it is likely that the Card use rising. Survey respondents are number of organizations incorporating social indicating significant increases in the use of media into their meetings policies will increase in company- issued cards as the most frequent the coming years. payment method for meetings-related expenses in Europe and Central/South America, at 56% According to DoubleDutch, a leading provider and 79% respectively, compared to 32% and

28 AMERICAN EXPRESS MEETINGS & EVENTS GLOBAL COMPLIANCE INSIGHTS

In recent years, regulatory pressures for mul- perspective. More and more companies are tinational corporations operating in foreign requiring accurate expense tracking and post- jurisdictions have become intense. From overall event reporting, and audit services from their scrutiny around engagement of third parties meeting management companies, as well and outsourcing, to information security, data as putting strict controls in place to prevent privacy, and anti-corruption regulations, global expense fraud at the execution level. Meetings companies are faced with overlapping and management organizations vary in their experi- sometimes conflicting regulations and presence with regard to working with companies to sures from multiple enforcement agencies from build policies and processes designed to help various different jurisdictions. Meetings is one companies achieve compliance, making careful area where these pressures create the need for review of potential partners even more import- organizations to consider their options and put ant as regulatory pressures increase. programs in place to help mitigate their risk. Challenges are even greater in emerging coun- Control around expense management is a hot tries, where business growth opportunities and button not only from an internal budgeting the need for in-person face-to-face training or perspective as meeting planners need to do conferences can be greater. Internal compliance more with less, but also due to the potential departments are often being inserted as final need to defend against allegations or scrutiny approvers for engagement of meetings manage- around corruption or bribery issues. The num- ment companies as well as for each individual ber of global companies that are being investi- meeting or event to occur. Some controls being gated for their use of third party intermediaries put in place include review of agenda, control including meeting management companies is over attendee list, per attendee spending bud- growing, and travel and entertainment expenses get reports including accumulative reporting on are increasingly becoming the focus of US as an annualized basis, and follow-through on the well as overseas and local regulators. As such, backend to confirm attendance, spending, and getting internal approvals to conduct meetings other key metrics. Meetings policies nowadays and conferences where external parties, busi- will also often include a review of regulatory ness partners, suppliers, customers and local compliance, in addition to budgeting. regulators attend are difficult not only from an expense management perspective but also from As organizations increase meeting spend and a regulatory compliance perspective. activity, and look to expand into emerging countries, it is important to keep in mind the need for Some companies are still trying to figure policies and processes that drive compliance to out what the appropriate metrics or thresh- help mitigate risk. old should be from a regulatory defense

2015 GLOBAL MEETINGS & EVENTS FORECAST 29 SURVEY RESULTS

Indicates highest response in each region

Most Frequently Used Payment Method

TYPE NORTH EUROPE CENTRAL/ ASIA AMERICA SOUTH AMERICA Company-issued Card (Meeting Card, Corp Card) 83% 47% 79% 37% Electronic Funds Transfer 2% 21% 21% 37% Invoice/Check 13% 32% 0% 25% Personal Card 2% 0% 0% 2%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

43% in our 2014 forecast survey. North Ameri- towards the consolidation and outsourcing of the can card use remains high, while Asia Pacific is meeting planning process for both compliance much more evenly split between company-is- and financial reasons. A Director of Meetings sued cards and Electronic Fund Transfers as the and Events in the UK has noticed this trend as most frequent payment method. well, “Whereas a few years ago, many companies were taking their meeting planning activities At a high level, meetings experts responsible for back ‘in-house’ they’re now looking to out- Europe and Central/South American activity source their entire program.” The single-source think that the increased use of company-issued reporting that comes from the consolidation of cards is tied to an increased interest in under- meetings management with one planner can standing and monitoring the costs associated greatly simplify the organization’s efforts to with meetings activity. Payment cards can serve meet compliance reporting requirements and as a means to consolidate meetings spend infor- can increase the accuracy of financial tracking of mation particularly as an initial step to under- overall meetings activity. stand total meetings spend, similar to their use for office supplies or transient travel expenses. Another trend is in the consolidation of meetings spend within the clinical research arena. According to one expert, previously the use of Use of Third-Party third party meeting planners was common place Meeting Planners and without many restrictions. Now she sees many clinical research organizations consoli- Leaving it to the experts. Policy language dating their meeting spend with a small network specifying the use of third party meeting of preferred suppliers to both help ensure their planners is highest in North America at 35%, end customers receive the value and help meet closely followed by Central/South America at compliance needs. 32%. There appears to be an increasing trend

30 AMERICAN EXPRESS MEETINGS & EVENTS Meeting Approvals amongst North American companies. One approach involves sourcing the meeting up to In this year’s survey, we probed respondents the point of having a contract ready to sign and about the level of difficulty associated with the then awaiting approval before moving forward. approval process for different types of meet- A second approach involves providing monthly ings. The responses were perhaps surprisingly reports to executives of new meetings that are relatively uniform, indicating that, in general, all being planned and may already be under con- meeting types face a similar level of scrutiny. tract, with the understanding that the executives may then force a cancellation of the event. In Incentives and special events did rank as the both situations, she has noticed that few meet- most difficult meeting type to approve in three ings are actually cancelled or not approved, as out of four regions. Senior leadership and board they have been ‘socialized’ (e.g. in one-on-one meetings appear slightly easier to get approved, sessions) with the approvers well in advance of except in Central/South America. the formal approval process. Events that meetings owners sense are not likely to be approved It starts with socialization. Yma Sherry of therefore do not ever proceed to the point of American Express Meetings & Events has reaching the formal approval process. noticed two different approaches to approvals

SURVEY RESULTS

Meetings Approval Process Difficulty of getting approvals for each type of meeting on a scale from 1 to 5.

1 = VERY EASY 2 = EASY 3 = NEUTRAL 4 = DIFFICULT 5 = VERY DIFFICULT

TYPE NORTH EUROPE CENTRAL/ ASIA AMERICA SOUTH AMERICA Sales/Marketing 2.9 3.1 2.7 2.9 Training 2.7 2.9 2.6 2.8 Internal Team Meeting 2.9 2.9 2.8 2.8 Product Launch (Internal/External) 2.9 3.4 3.6 3.0 Conferences/Tradeshows 2.9 3.2 3.6 3.2 Senior Leadership Meeting/Board Meeting 2.7 2.9 3.2 2.7 Advisory Board 2.8 3.0 3.0 2.9 Incentive/Special events 3.3 3.7 3.8 3.4

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 31 SURVEY RESULTS

Virtual/Hybrid Usage 2013–2015 (More than 10% of meetings)

2013 Reported 2014 Reported 2015 Projected

NORTH AMERICA EUROPE CENTRAL/SOUTH AMERICA ASIA

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

Virtual & Hybrid Meetings rebound in Europe and Central/South America but no significant change in North America and Experiencing some turbulence. The prevalence Asia Pacific. of virtual/hybrid meetings has varied considerably in 2014 according to respondents. Reported Brighter skies ahead. Milton Rivera of Amer- use of virtual/hybrid solutions in more than 10% ican Express Meetings & Events sees meeting of meetings has climbed from 20% to 30% in owners starting to develop virtual strategies to North America, but has stagnated in Asia Pacific help them extend the audience, or to reinforce and has fallen significantly in Europe and Cen- the key messages before and/or after the tral/South America. event. “They are interested in leveraging virtual technology but they are struggling with how to Respondent predictions for next year indicate a design their meetings to take advantage of it,”

32 AMERICAN EXPRESS MEETINGS & EVENTS Indicates highest response in each region

Most Compelling Reason to Use Virtual/Hybrid Solution

REASON NORTH EUROPE CENTRAL/SOUTH ASIA AMERICA AMERICA Ability to reach a broader audience 26% 25% 19% 27% Ability to re-purpose meeting content for multiple uses 9% 9% 13% 12% Cost savings 32% 35% 36% 31% Improve the overall effectiveness of the meeting 6% 8% 12% 6% Reduce travel and time out of office 27% 22% 19% 24%

Obstacles to Expanding Use of Virtual/Hybrid Solution

OBSTACLES NORTH EUROPE CENTRAL/SOUTH ASIA GLOBAL AMERICA AMERICA HOTELIERS Dealing with complex technology issues 22% 31% 25% 31% 34% Inability to effectively engage audience 36% 19% 38% 27% 17% and monitor active participation Lack of project management skills 7% 4% 0% 7% 3% to support logistics requirements for these solutions Lack of understanding around 8% 14% 25% 15% 14% how to build an agenda and deliver content in virtual or hybrid meeting Meeting owners are not ready to 11% 19% 13% 13% 14% think traditional live meeting formats Virtual and hybrid meetings are 16% 15% 0% 7% 14% not viable alternatives to live meetings Other (only answer choice for Hoteliers) 3%

he notes. He also believes that meeting owners past survey results. This is a welcome sign that are becoming better equipped to utilize the meeting professionals are beginning to value the available virtual solutions but that it’s an evolu- ability of virtual/hybrid solutions to drive busi- tionary process. Up until recently, Rivera felt that ness outcomes, almost as much as their ability “the complexity and sophistication of the tools to reduce meeting spend. outstripped the ability of the marketplace to use them effectively.” Kaaren Hamilton of Carlson-Rezidor reports that she is “definitely seeing more hybrid activity Cost savings and more. Cost savings is ranked in larger meetings where the desire is to reach the most compelling reason to use a virtual larger audience, in particular with respect to solution, but the ability to extend the reach of association events and conventions.” an event is not as far behind as it has been in

2015 GLOBAL MEETINGS & EVENTS FORECAST 33 SURVEY RESULTS

Indicates highest response in each region

Clearly Defined Virtual Policy

ANSWER NORTH EUROPE CENTRAL/SOUTH ASIA AMERICA AMERICA Yes 10% 4% 11% 11% Most Clients Do 7% 9% 11% 5% Most Clients Don’t 6% 14% 32% 12% No 46% 25% 26% 46% I Don’t Know 31% 47% 21% 26%

Clearly Defined Virtual Strategy

ANSWER NORTH EUROPE CENTRAL/SOUTH ASIA AMERICA AMERICA Yes 9% 3% 11% 12% Most Clients Do 6% 8% 11% 5% Most Clients Don’t 7% 16% 32% 11% No 46% 25% 16% 46% I Don’t Know 33% 48% 32% 26%

Primary Responsibility for Integrating Virtual Meetings

RESPONSIBILITY NORTH EUROPE CENTRAL/SOUTH ASIA AMERICA AMERICA Communication 8% 10% 13% 0% HR 4% 0% 0% 0% IT 25% 11% 0% 20% Learning & Development 15% 11% 31% 20% Marketing 13% 20% 31% 5% Meeting Planning 23% 35% 13% 20% Procurement 13% 13% 13% 35%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

34 AMERICAN EXPRESS MEETINGS & EVENTS Complexity and apprehension remain. to respondents. Only in Europe do respondents Complexity and apprehension remain. Concerns indicate that the meeting planning department regarding technology use and effectively engag- has this responsibility in more than a third of ing attendees remain significant obstacles to organizations. This fragmentation is a good expanding the use of virtual/hybrid solutions indication that virtual/hybrid solution usage is in 2015. A Director of Meeting & Events in the not managed strategically in the majority of UK sees concerns about technology amongst organizations. For organizations where virtual meeting professionals in the country. “Live or hybrid meetings will play an increasing role, virtual meetings are perceived as a real risk. If there appears to be opportunity for meeting attendees are all connecting remotely, there’s planners to come forward and lead the strategy, a concern that they might not be able to, or and create ownership over the use of virtual and won’t know how to use the technology,” leading hybrid meeting tools. attendees to either miss the meeting or have a suboptimal experience. Mobility

A Director of Meeting & Events in the Asia Pacific region agrees and adds that, “Often, meeting Improving real time communications, consis- owners don’t think about incorporating virtual tently. According to a recent American Express or hybrid solutions far enough in advance. Then, Meetings & Events study on technology in meet- there is insufficient time for the technical due ings, mobile apps continue to grow in popularity, diligence required to ensure it will work properly with scheduling and communications features the day of the event, which results in it not being being most popular among both planners and utilized.” attendees. Meeting attendees are looking for ways to connect and communicate more effi- Survey results indicate that a small percentage ciently with one another, arranging networking of companies are developing both virtual-related meetings, sharing their thoughts on sessions strategies and policies, with little movement and speakers, and providing feedback to meeting from the numbers reported in the 2014 forecast. owners. Doing this via a mobile app fits well with how attendees using their mobile devices in the As noted in our special section on virtual and rest of their lives, and is becoming an expecta- hybrid meetings in the 2014 forecast, “The cre- tion within the meetings environment. ation of a strategy supported by policy is crucial to ensure organizations have the appropriate Meeting planners are also looking for easier ways infrastructure and skill set in place, along with to communicate with attendees, share updates the alignment of meeting owners.” Combined, and communicate changes to rooms, sched- these documents can help increase both the use ules and more during meetings. The industry and the effectiveness or virtual/hybrid meeting appears to be in a test and learn phase as related solutions for an organization. to mobile apps with all regions indicating an increase in the use of mobile apps in 2015 with Frustratingly fragmented. Responsibility for Asia Pacific and North America leading, predict- integrating virtual/hybrid solutions remains ing a 4-5% increase in use. highly fragmented across all regions, according

2015 GLOBAL MEETINGS & EVENTS FORECAST 35 Emerging Formalizing Meetings Programs

Already formalized? The degree to which Regions organizations are formalizing their meetings pro- For the second year in a row, grams in these emerging countries appears to be declining when survey results are compared with we asked meeting professionals the 2014 forecast figures. Whereas 43% to 70% about their activities in the of respondents from all regions were formalizing emerging countries of Brazil, their programs in at least one country in last Russia, India and China, often year’s survey, the range has dropped to 21% to referred to as the BRIC states. 49% in this forecast survey. It may be the case that respondents have already formalized their meetings programs in many of these countries.

China is the country where program formaliza- tion is most likely to take place for North Amer- ican, European, and Asia Pacific organizations. Yma Sherry of American Express Meetings & Events has noted that many organizations have “a perception that their meetings in China are not being managed well and the proper controls

PREDICTION

Indicates highest response in each region

Formalizing Meeting Programs

REGION NORTH EUROPE CENTRAL/ ASIA AMERICA SOUTH AMERICA

Brazil 18% 13% 21% 8% Russia 4% 4% 0% 2% India 16% 3% 0% 17% China 24% 16% 0% 40% None of the Above 66% 76% 79% 51%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

36 AMERICAN EXPRESS MEETINGS & EVENTS SURVEY RESULTS

Indicates highest response in each region

Greatest Area of Focus by Region

AREA OF FOCUS BRAZIL RUSSIA INDIA CHINA Enforcement of Meetings Policy 19% 11% 14% 15% Identifying Appropriate Destinations 21% 16% 17% 13%

NORTH Securing Preferred Supplier Agreements 11% 4% 5% 7% AMERICA Complying with Company Expense Policies 11% 11% 8% 6% Destination Management Support 9% 18% 12% 10% Overall Program Management in Country 23% 24% 36% 31% Complying with Local Privacy Laws 7% 16% 8% 16%

AREA OF FOCUS BRAZIL RUSSIA INDIA CHINA Enforcement of Meetings Policy 23% 35% 20% 24% Identifying Appropriate Destinations 18% 24% 20% 14%

EUROPE Securing Preferred Supplier Agreements 5% 0% 0% 5% Complying with Company Expense Policies 14% 12% 20% 14% Destination Management Support 32% 12% 13% 29% Overall Program Management in Country 9% 18% 27% 10% Complying with Local Privacy Laws 0% 0% 0% 5%

AREA OF FOCUS BRAZIL RUSSIA INDIA CHINA Enforcement of Meetings Policy 0% 17% 17% 50% Identifying Appropriate Destinations 17% 17% 0% 0% CENTRAL & SOUTH Securing Preferred Supplier Agreements 33% 33% 50% 17% AMERICA Complying with Company Expense Policies 0% 17% 17% 17% Destination Management Support 33% 17% 17% 17% Overall Program Management in Country 17% 0% 0% 0% Complying with Local Privacy Laws 0% 0% 0% 0%

AREA OF FOCUS BRAZIL RUSSIA INDIA CHINA Enforcement of Meetings Policy 0% 0% 4% 9% Identifying Appropriate Destinations 21% 19% 11% 15%

ASIA Securing Preferred Supplier Agreements 11% 0% 7% 12% Complying with Company Expense Policies 5% 6% 15% 12% Destination Management Support 42% 63% 30% 15% Overall Program Management in Country 16% 6% 30% 24% Complying with Local Privacy Laws 5% 6% 4% 15%

(Sources: American Express Meetings & Events North American, European, Asia Pacific, and Central/South American Surveys, August 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 37 aren’t in place. They are starting to look for help because their meetings activity is only increasing in China.”

Areas of Focus

Regional influences dominate. When asked about their greatest areas of focus within these emerging countries, responses appeared to be driven more by the location of the respondent rather than the destination country. North American meeting professionals are focused most highly on overall program management, whereas Asia Pacific-based professionals are more interested in destination management support. European respondents are more likely to vary their focus across several areas, such as enforcement of meetings policy in Russia, compared to destination management support in China. Central/South American respondents show a higher interest in securing preferred agreements in most of these countries.

Tips

For tips related to planning meetings within these emerging countries, see our special section entitled “Consider- ations for Planning Meetings & Events in Emerging Countries”.

38 AMERICAN EXPRESS MEETINGS & EVENTS SPECIAL SECTIONS

Four Planning Benefits of Event Empowering Events in Attendee Production Digital Event Emerging Travel Trends and Solutions Countries Management Insights PAGE 40 PAGE 46 PAGE 51 PAGE 55 2015 GLOBAL MEETINGS & EVENTS FORECAST 39 Four Empowering Digital Event Solutions

Meeting professionals now have the THE FOUR SOLUTIONS: opportunity to rethink meeting design and content delivery to capitalize on In this section, we’ll discuss the potential digital solutions and engage the audi- uses and value of four different digital ence in new and exciting ways. New meetings solutions that are increasing in technologies are enabling meeting their prevalence and importance around the planners to: world: • Improve the quality of the content 1. Attendee Management Solutions delivered; 2. Event Mobile Applications • Streamline the registration process; 3. Social Media Solutions • Enhance the meeting experience 4. Hybrid Meeting Solutions with the integration of mobile apps and social media; and We’ll also offer some insight regarding their • Expand their audience through implementation to help you make the most virtual meeting solutions. of your investment in digital solutions.

40 AMERICAN EXPRESS MEETINGS & EVENTS 1. Attendee Management Solutions

POTENTIAL IMPACT IMPLEMENTATION ADVICE Personalized Attendee management software • Design the look and feel of the event content can solutions are now offering many new website to align with the theme of the features to help ensure that each meeting, to help evoke the appropriate now be pushed participant’s experience is optimized response from attendees. Business to specific based on their unique interests and meetings may be simple and to the the specific goals of the meeting host. point, while client meetings or incen- attendees to Personalized content can now be tives may require features that gener- match their pushed to specific attendees to match ate more excitement. interests. their interests. Based on their profile, attendees can receive customized • Create an event website that is simple promotional materials by e-mail and be for attendees to navigate while giving served relevant and useful information them the necessary information for via the event website and/or the event the meeting. Ensure contact infor- mobile application. Event websites can mation is easily found on the site in be linked to social event networking case an attendee has questions or features in order to engage participants issues during or after the registration with each other. Combined, these process. capabilities can help the planner deliver much more individualized experiences • From this one location, collect all the for each attendee. attendee information that is necessary to enable effective program planning. KEY FEATURES Do not ask for more than needed, • Attendee registration and manage- to reduce any attendee discomfort ment in one single web platform. around the gathering of personally identifiable information. • Preparation and management of personalized invitations through e-mailing • Think ahead and gather information campaigns. in areas such as food choices, t-shirt sizes or mobile device platforms. Not • Promotion of the event using a only will attendees be pleased to get branded website and social media. what they need onsite, but the planner will be able to adjust the meeting logis- • Attendee check-in using QR codes, tics accordingly to meet the needs and e-badges or the mobile event availability of the attendees. application.

• Real-time data collection and consoli- dated event reporting.

2015 GLOBAL MEETINGS & EVENTS FORECAST 41 2. Event Mobile Applications

POTENTIAL IMPACT Personalized • Participation: Polls, surveys, instant content can Event mobile applications provide messaging, Q&A sessions, Twitter numerous benefits to participants, from feeds and other social networks now be pushed helping to manage event information to integration, gamification. to specific driving engagement with event content and other attendees. On-site attendees IMPLEMENTATION ADVICE attendees to are now expecting a “heads-down” • Define what portions of the event life match their mobile experience. They’re at the event cycle the event mobile applications will interests. physically, but also planning their next address. sessions, asking questions, sharing comments and answering polling ques- • Develop an editorial process for any tions all from their mobile application. app features that require content man- Mobile apps also offer additional value agement, such as session descriptions by extending the lifetime of the event or exhibitor information. beyond the physical event, both before and long after the event has concluded. • Distribute and promote the event application at least a month prior to KEY FEATURES the event using print, QR codes, social • Event information: Event agenda/ media channels, websites or any other schedule, floor plan & maps, push relevant marketing channel. notifications, speaker profiles, branding, exhibitor list, on-site registration, • Track and monitor social feeds or video player. “activity feeds” during the event to enable planners to make onsite • Networking: Attendee profiles, event adjustments to better meet attendee calendar sharing, lead retrieval, instant needs or address areas of dissatisfac- messaging. tion where possible.

42 AMERICAN EXPRESS MEETINGS & EVENTS 3. Social Media Solutions

POTENTIAL IMPACT IMPLEMENTATION ADVICE Social media Consuming user-generated content, • Select the social media channels that blog posts, videos, tweets and other are most relevant to the event. can drive posts are the norm for a large portion attendance of today’s attendees, in virtually any • Prioritize simplicity, consistency and country. They expect to interact, learn seamless integration across all digital and create from and create relationships with each solutions (e.g. integrate social media buzz before, other. Social media channels can help with online registration and mobile during and to drive attendance; create buzz before, event applications). during and after an event; and ensure after an event. that the event receives maximum • Use Facebook or LinkedIn to post exposure. about the event topics, speakers, build a community, start discussions As the social media options and poten- on the event wall and groups. tial uses are numerous, it is critical to clarify your objectives and audience’s • For smaller, private meetings and needs. This initial assessment will help events, consider an activity feed via a to define the key themes to develop meeting app to allow event attendees across social media channels, such as to share socially within the context of event awareness and attendee interac- the event itself. tions, and also identify which channels are most appropriate for the event. • Create a unique event hashtag on Twitter. Introduce the hashtag Social media activity can be monitored specific to the event on invitations and displayed live through social walls. and on the event website. Follow the Social walls are a single place where conversations happening in Twitter comments from all social media can be about the conference. Engage in brought together for easy viewing by those conversations by answering attendees. A good practice for these questions and thanking participants. walls is to generate a curated feed of Re-Tweet relevant messages that use the user generated content developed the hashtag and/or the event Twitter during the event from all the social account. media channels (streams of pictures, tweets, videos and comments). Curat- • Produce short video teasers or a ing helps ensure that you’re sharing the welcome video and post them on a most relevant information to attendees, YouTube channel and promote them which helps maintain their interest and through Twitter and the event website. generate increased participation. • Use Pinterest or Instagram to streamline pictures and short-videos.

2015 GLOBAL MEETINGS & EVENTS FORECAST 43 TIPS FOR COORDINATING TOP 10 A SUCCESSFUL HYBRID EVENT 4. Hybrid Meetings Run an in-studio event with live audience whenever POTENTIAL IMPACT 1 possible

Organizations can complement their In the video being broadcast, incorporate close ups face-to-face, on-site, physical meeting 2 of presenters while giving their speeches mixed with simultaneous online viewing over the with wide views of the audience and studio. web, and on-demand post-event. Hybrid solutions can enhance and expand the Poll the webcast audience live, then push the poll value of in-person meetings by connect- 3 results for the audience to see, and discuss the ing with new audiences online giving feedback live. Use polling features that display both percentages and easy-to-read pie graphs, to them a taste of what the on-site event is allow the audience a glimpse of how their fellow like. remote audience members are responding.

They add value by increasing interaction, In addition to the live video, pre-recorded videos, reaching a broader audience with the 4 downloads and information around your live con- event content and boosting event expo- tent could be added to the webcast to give some sure. High bandwidth internet availability background, highlighting the importance of the live in venues, at the office or on-the-go event and creating excitement. and the added benefit of incorporating remote presenters are boosting adoption Track the consumption of pre-recorded content so rates as organizations strive to extend 5 you can analyze which attendees accessed which their reach and capture a larger global materials. audience. Small details, such as the name of the current or KEY FEATURES 6 upcoming presenter and presenter biographies, add context for live viewers and anyone joining the • Ability to create an online experience webcast mid-event. that mirrors the face-to-face event, complete with high-quality synchro- Easy sharing through social media integration can nized real-time video, audio, and con- 7 be enabled to spread event awareness and create a tent including interactive tools features. buzz around your content.

• Replay/archive capabilities for people Incorporate Q&A when possible, that includes both who are unable to be present. 8 live and remote audience questions.

• The tracking of metrics, including Use animation in your PowerPoint presentation attendance during live and archived 9 and other interactive website features. sessions, poll/survey/Q&As statistics. Post-event, execute an email campaign to reach anyone who was unable to attend in person • A cost-effective way to get the message 10 or unable to watch live from their computer, out to your audience at the same time, and provide access to the archived webcast regardless of their physical location. on-demand. The campaign can help extend the reach of the in-person event to not only the full intended audience, but also a social audience

44 AMERICAN EXPRESS MEETINGS & EVENTS through replays. Best Practice Advice for Selecting and Implementing Digital Event Solutions

Every digital solution offers a unique opportunity internal resources and aligned third parties. to increase the overall value of an event. Here are Open communication is essential. some best practices based on the experience of American Express Meetings & Events meeting 5. Identify Tasks and Assignments: Clearly planners from around the world who have helped define all tasks associated with the fulfillment of integrate digital solutions into a wide variety of digital events and meeting projects. Then assign events for our clients. each task to the appropriate group or individual. For each event, initial tasks include: 1. Define the Desired Area of Impact: Work • A well-defined scope of work with a clearly with meeting owners to identify, by meeting type defined event flow and content delivery and meeting objectives, what portions of the road-map. event lifecycle you wish to improve through the • A detailed implementation project plan and use of one or more digital event solutions. timeline for completion of tasks. • Identification of required interactions with 2. Assess the Audience: Before selecting a attendees across all digital tools. digital solution, it is important to assess how • Plan for any required training related to the likely it is that your audience is familiar with the usage of the digital event solutions – both for technologies you are considering. The results of speakers / presenters and attendees. this assessment can not only impact the choice Digital event solutions cannot be effective with- of solutions but also the way in which they are out context, planning, content, promotion, staff implemented and introduced to the audience. participation, technical support, processes and integration. A clearly defined digital deployment 3. Select the Solution(s): Evaluate all solutions tactic helps to unify everyone in the organization to understand which will, enhance the audience around what needs to be done and why. It is crit- experience and improve business outcomes. ical that the primary objectives and key timeline events are clearly understood and agreed upon 4. Identify Stakeholders: A key component of by all stakeholders. the process will be to identify all key stakeholder groups that are responsible for the implementa- Conclusion: Meeting planners are constantly tion and/or are impacted by its integration. Typi- looking for opportunities to elevate their event cal internal and external stakeholders include: ‘to the next level’ and taking advantage of one or more of these four digital solutions offers • Meeting owner great potential for success. As with any aspect • Procurement of meeting planning however, none of these • Compliance solutions will deliver the results you’re looking • IT and Digital for on their own. The best results are achieved • Meeting Management Company when a planner takes the time to select the right The successful execution of digital events is a solution for an event, and effectively plan for its collaborative effort involving interaction among integration in the overall event plan.

2015 GLOBAL MEETINGS & EVENTS FORECAST 45 Planning Meetings & Events in Emerging Countries

Have you considered placing a meeting in an emerging country? What do you need to look out for when planning an event there? And what is an emerging country anyway?

An emerging country is a country that has economies have increased in importance. There been typically less developed but the economy is a much greater desire to meet in these coun- is beginning to rapidly grow. The four largest tries than ever before, and that brings to light a emerging and developing economies are the different set of challenges, experiences, as well BRIC countries (Brazil, Russia, India and China), as a greater sense of duty of care for planners. with India and China considered to be the largest. Some other countries that are considered There are five aspects to meeting planning that by some to be emerging are Mexico, Indonesia, are imperative for planners to focus on in order South Africa, South Korea and Turkey. to ensure their meeting goes smoothly in an emerging country: security, technology, trans- The meetings business in emerging countries portation, food & beverage, and payments. has grown significantly in recent years, as these

46 AMERICAN EXPRESS MEETINGS & EVENTS BE PREPARED FOR VARYING etc. You should also know who your LEVELS OF SECURITY main point of contact is in case of an 5 1 Security issues vary country to emergency and have their number with SUCCESS country and it is essential that planners you at all times while onsite. FACTORS are up to date on security in emerging countries. The U.S. Department of KNOW THE TECHNOLOGY State site (www.travel.state.gov) is LANGUAGE, AND KEEP ATTENDEES IN TOUCH a great resource for ensuring your 2 meeting is in a location that meets Even though technology in emerging the security needs for your client. In countries is not as different from that countries where unrest or other political in developed countries as one may SECURITY issues may be a factor, a strong force think, it is important to make sure you majeure clause is required in your are speaking the same technology contract can help ensure you are able to language. As a simple example, confirm cancel the meeting without penalty if a that the adapters you need for your security issue arises. Items to consider printers or laptops are readily available in a force majeure clause should include or you will need to bring these with you. consideration of curtailment of trans- Ideally, connecting a technology spe- TECHNOLOGY portation due to strikes or unrestas cialist from your home country with a well as consideration for attrition if technology specialist in the host coun- attendees cannot arrive on time due to try can go a long way to ensure that you these issues. have everything you need to make your event successful. Be sure to make your Meeting with security experts in the onsite technology requests early on, so local country can help planners ensure the venue can meet the needs of your understanding of issues to be on the program. TRANSPORT lookout for, and how local security, the venues and the planner should Beyond attendee security, there is the handle those concerns. Be sure to added question of IT security. Due to a ask the venue about their policies and lack of transparency, as well as rumors procedures for medical situations (i.e. about the way other countries manage whether there is a doctor on staff, technology, many companies choose the location of the closest hospital, to err on the side of caution rather than FOOD & BEVERAGE whether the staff is trained in CPR, assume data will be secure. Recently, etc.). Ideally, planners should meet with one company’s security director hotel security during a site inspection strongly advised against attendees prior to the meeting regardless of the bringing work laptops with them to a location, but it’s especially important in meeting program operating in China emerging countries. However if that is and suggested they bring a clean laptop not possible, talk to the hotel security without proprietary information. This to ask specific questions about their decision was due to the company’s PAYMENTS contingency plans for natural disasters, security concerns that China could have medical issues, political unrest, strikes, the capability to obtain proprietary

2015 GLOBAL MEETINGS & EVENTS FORECAST 47 information from electronic devices addition to educating them on what once entering the country. Although the specific country is able to offer in not all companies will have clean laptops terms of transportation. A local Desti- Ask for drivers for a situation like this, it is important to nation Management Company (DMC) who speak consider these possibilities. or your hotel contact should be helpful resources. both your Mobile networks in emerging countries language as are often quite advanced and can be Take into consideration that many very useful in maintaining contact. attendees may need to take connecting well as the Suggest to your attendees that they flights in order to arrive in an emerging local language purchase a temporary international country destination, either due to their to ensure cell phone plan if they don’t have one. travel distance or reduced airline capac- If their phone does not accommodate ity into certain areas of the country. you and your international calling or their cell phone attendees feel remains off unless they are making Duty of care is also an important item outgoing calls, you may not be able to for companies to consider. One must comfortable. reach them in an emergency, even if you be able to reach attendees in case of have their contact information. a natural disaster or any kind of emergency situation. If attendees book their You may want to consider the option of own transportation, duty of care can renting a satellite phone while onsite in become a big issue as there is no central an emerging country. Satellite phones record of attendee travel plans. For are able to work even if the normal example, throughout parts of Asia and infrastructure for communications goes Europe, train tickets must be purchased down. While they may be costly to rent, by the individual traveler. In these it is a small price to pay for peace of types of situations, self-reporting of mind. reservations by an attendee within their meeting registration should be required TRANSPORTATION in order to help provide a way to manage PREFERENCES AND changes or required communication POLICIES WILL BE 3 throughout their journey. DIFFERENT Transportation can be challenging in Additionally, traveling in a country emerging countries, and one country where you don’t speak the language can may offer very different modes of be quite challenging. Ask for drivers transportation and have different who speak both your language as well requirements when booking travel as the local language to ensure you from another. For example, in China it and your attendees feel comfortable is important to ensure attendees are when traveling in a foreign region. The booked with changeable airline ticket- local DMC can be a great resource in sas schedules can frequently shift. It is arranging transportation and providing important to discuss all booking options a sense of comfort and understanding and preferences with your client, in of the local culture and language.

48 AMERICAN EXPRESS MEETINGS & EVENTS Many countries require a Visa for entry. to understand the food and beverage Although it may be easier, discourage norms in each country and work with attendees from trying to enter these the chef to ensure all food needs are countries as a tourist if they are truly met. Try to there for a work-related event, as they incorporate risk being banned from the country and When building your menu, keep alcohol turned away upon arrival. Partner with in mind. In some countries, alcohol can as many local a group that specializes in Visa appli- be very expensive due to taxes and dis- foods as cations (i.e. CIBTvisas) to make certain tribution costs. Serving local wines and that attendees are able to answer all beers can not only have a big impact possible. of the questions on the application on reducing your budget, but also This gives your correctly. Visa regulations are updated gives your attendees a chance to taste attendees constantly, and these service provid- beverages that they may not otherwise ers can help ensure the most current have the chance to try. Conversely, it is a chance to requirements are met, allowing all important to know that in some areas of experience applications to be are processed as the world (for example, parts of India) efficiently as possible. Applications can alcohol is prohibited. This may be a food that be lengthy, so planning ahead is the challenge for some clients and knowing may only be best course of action. Some countries this before you start to source your available to even require individuals to apply in location can eliminate unnecessary person which will take additional time. challenges in the planning process. them once in If you are working with a hotel and/or a lifetime. DMC, they may be able to provide a Visa Make sure your attendees understand invitation letter stating the purpose of the culture of dining in the country they the visit and/or confirming the exis- are visiting. In many countries, meals tence of a hotel reservation. are not only for sustenance but also for socializing and can start much later Many applications need to be sent via than attendees are used to. Be sure a hard copy and require your passport, to highlight the timing of the meals so so planning is required should travel to attendees are prepared to eat at the other foreign destinations be required appropriate time as well as any other during the approval process. If there important local customs or norms in is a possibility that someone will be pre-trip communications. visiting the same country again in the future, look at a multiple entry Visa When planning your menu, try to incor- application versus a single entry; while porate as many local foods as possible. the cost may be higher the advantages This gives your attendees a chance can outweigh the expense. to experience food that may only be available to them once in a lifetime. For TAKE FOOD & BEVERAGE example Stroganoff is traditionally INTO CONSIDERATION thought of as Russian. Although ver- 4 Food and beverage is an integral sions of Stroganoff are available around part of every meeting. It is important the world, experiencing this food in

2015 GLOBAL MEETINGS & EVENTS FORECAST 49 Russia, made by a Russian chef, can making for a smooth payment process. make for an impactful and memorable culinary experience for your attendees. One also needs to be aware that not all Holding attendees in some of these countries meetings in THE DIFFERENCE IN may have access to credit cards. For PAYMENTS example, in China, it is less common emerging 5 Billing and payments can be for attendees to have personal credit countries a very complex process in emerging cards so incidentals must be charged countries. In some, it is required to pay to the master account at the hotel. The can be a very the entire bill up front before arrival. Be attendee would need to settle with cash rewarding prepared that this may be the norm and upon check-out. experience that a partial payment or the waiving of a deposit may not be acceptable. MAKE A PLAN FOR SUCCESS for attendees In general, whenever planning in a and planners In some countries, like Brazil, it is diffi- foreign country, one must be aware of cult to navigate the payment waters due cultural norms and language barriers. alike and can to country restrictions and paperwork. Additionally, it is imperative to start bring a new And while globally the US dollar is more your planning early to ensure you have dimension to widely accepted than some other forms enough time to account for differences of payment as there are fewer restric- in time zones, currencies, country spe- your event. tions on sending USD to many coun- cific holidays and work/life philosophy. tries. Alternatively, in countries such as China, local payment or cash may Holding meetings in emerging countries be more easily accepted. Also keep in can be a very rewarding experience for mind that international corporate card attendees and planners alike and can or meeting card acceptance may be bring a new dimension to your event. limited. Both establishing clarity around Keeping technology, security, transpor- payment expectations with vendors and tation, food & beverage and payments understanding your company regula- front of mind can make planning meet- tions as well as the financial nuances ings smooth, rewarding and enjoyable of the host country will go a long way in for everyone.

50 AMERICAN EXPRESS MEETINGS & EVENTS The Benefits of Attendee Travel Management

Travel to and from a meeting or an event is very much part of each attendee’s event experience. Meeting planners and attendees alike can benefit from inclusion of air travel as part of the overall planning process. Best practices and customer feedback have demonstrated that integrating travel planning with meetings management can provide substantial benefits related to experience, cost and duty of care.

INFORMING THE DESTINATION CHOICE • Average flying time and number of direct Air travel can influence the choice of destination flights – Flight time should be considered as for a meeting. In particular, performing an event part of the attendee experience, especially for travel analysis as part of the planning process situations where attendees may need to transi- can help planners to select the best destination tion into meetings immediately upon arrival. among those under consideration. Items to consider when evaluating destinations from an • Airfare costs – Airfare cost comparisons can air travel perspective include: obviously have a major influence on the destination choice. In the case of two similar destina- • Accessibility – Where is the airport located tions, a significant difference in air cost can be in relation to potential hotels and venues? How deciding factor. long is the ground transfer time to the meeting location? • Focus destinations – Most airlines have focus

2015 GLOBAL MEETINGS & EVENTS FORECAST 51 or new destinations where they are pro- ahead for meals, negotiate late check- moting reduced fares or new aircraft. out past the typical 11 a.m. timing and These destinations can offer savings. manage luggage storage as needed. Understanding the flight • Risk Management – A limited number REDUCING THE BUDGETARY of flight choices could result in the IMPACT pattern for number of attendees per flight exceed- Integrating the management of air travel an event in ing organizational guidelines. Early as part of planning allows planners to indication and joint air / meeting plan- manage the budget in a comprehensive advance can ning can help to avoid this increased fashion. If not controlled, air travel can influence the risk by identifying alternative routes, easily consume up a significant portion agenda timing and enables planners to seek additional of an event budget. However, savings insurance cover in advance rather than achieved through proper management and often after ticket issue of air travel can provide funding for reduce event other areas such as food and beverage. • Previous event & travel analysis costs. – Understanding past air travel expe- Ancillary expenses associated with air riences and issues can help planners travel, such as ground transportation, to make recommendations for future can also be managed to improve the events. attendee experience and deliver savings. Use of complimentary airport OPTIMIZING THE EVENT AGENDA shuttles can be optimized via pre-trip Understanding the flight pattern for communications, or the movement an event in advance can influence the of an entire group from the airport to agenda timing and often reduce event the meeting site through a negotiated costs. Arrival pattern reports can reveal agreement with a ground transportation where a lack of air options may prevent company can result in savings as well. attendees from arriving in time for a planned start. This information will FACILITATING EFFICIENT give planners the opportunity to make COMMUNICATIONS informed choices about the agenda and Communication is another area that weigh alternatives. For example: Do we benefits from integrated air travel allow 50% of attendees to arrive the planning. Communicating information night before increasing the budget for regarding the booking process is bedrooms and food and beverage? Or is simpler as air, ground transfers and it better to move the start time to allow accommodations are all being managed for morning arrivals? through a single source, giving planners what they need to minimize back and Departure reports also can help with forth with attendees. Attendees benefit agenda planning and addressing logisti- as their experience is being managed cal issues. If you can see that the major- and communicated in a comprehensive ity of your attendees must depart later manner and they can view the entire trip in the day, you can make arrangements on one complete itinerary, inclusive of

52 AMERICAN EXPRESS MEETINGS & EVENTS MEETINGS SOLUTIONS FOR TRAVEL ground transfers. This single view helps minimize the need for additional commu- AIRLINE ALLIANCES nications to attendees, and reduce the number of attendee questions sent to Many airlines and airline alliances have planners. offerings to benefit groups. Airlines typically define groups as ten or more individuals per Hotels and other associated suppliers flight. These offerings vary from airline to also benefit. With access to all attendee airline, but often include benefits such as: arrival and departure information, planners can work with the property • One agreement/contract for all tickets / management to ensure all rooms are attendees ready as needed. This single list elimi- • Discounted fares & incentives nates guesswork and helps with manage the flow at check-in and check-out. • Ability to make name changes

• Streamline operations / simplify planning During program operations, the planning team has the needed information to However, research shows many groups do reach out and assist passengers in the not fit into the definition of 10+ per flight. case of a travel disruption, and to work Therefore, more products are coming directly with the hotel on any resulting to market offering solutions for group changes that may be required. No shows movements of 10+ from multiple departure for air travel can be communicated to the points. For example, some airlines are now ground transportation resource to avoid offering ‘conference window fares’ valid unnecessary waits at the airport that with one airline or within an alliance for the may delay other passengers on the same duration of an event, allowing similar savings transfer. Plus, early notification regarding for multiple points of origin. changes to both ground transportation and hotels, as a result of a missed or delayed flight, may mean savings to the program.

Integration of air travel provides both the meeting planner and the attendee with one clear communication framework, simplifying the planning, booking and change process so all associated elements of the meeting can be managed holistically.

INCREASING VISIBILITY & RESPONSE TIMES Technology such as online meeting registration sites simplify the collection

2015 GLOBAL MEETINGS & EVENTS FORECAST 53 of attendee air travel requirements years where air was incorporated for including nearest airport and desired five of the eight years and unmanaged arrival/departure time information. for the other three. The chart below These systems enable planners to run shows the attendee experience is better ad hoc reports rather than wait for an when travel is factored into the planning automated daily download of the latest stages. information, which facilitates faster turnaround time for air bookings. Air travel is an integral part of the logistical, financial and experiential This centralization of all meetings and aspect of an event. In this paper, travel data provides planners with quick we’ve shown how integrated group air access to critical attendee information planning can benefit a meeting at all in the event of an emergency situation. stages, from destination evaluation, budgetary savings, agenda optimization, ATTENDEE SATISFACTION improved communications, increased Ultimately, managing air travel as part productivity, and risk reduction. When of the event planning process can also a single event component can have that increase attendee satisfaction for the significant of an impacts on the desired reasons listed above. As an example, results, it’s worth incorporating it into we surveyed attendees of the same the overall event planning process. incentive event over the course of eight

Impact of Attendee Travel Management Attendee meeting satisfaction where travel is managed vs. unmanaged.

UNMANAGED 3.6 MANAGED 4.2

(Source: American Express Meetings & Events Attendee Satisfaction Survey)

54 AMERICAN EXPRESS MEETINGS & EVENTS Event Production Trends and Insights

Meetings and events are held to achieve engagement tools, all fall under the cate- specific outcomes including training, gen- gory of event production. erating awareness and excitement, devel- When properly executed, event produc- oping loyalty, launching new products and tion effectively utilizes an audience-ap- more. How the event’s key messages are propriate combination of these tools to conveyed, its look and feel from staging create a visually stimulating environment and lighting to graphic design and audio/ in which to engage, inform, educate, visual usage, and its use of audience inspire and even entertain attendees.

2015 GLOBAL MEETINGS & EVENTS FORECAST 55 WHAT IS AN EVENT PRODUCTION AN OFTEN UNCONTROLLED COMPANY? CATEGORY Event production companies range from Within organizations where meetings ‘Event traditional audio/visual (A/V firms) programs and policies exist, event with a focus on providing equipment, production often remains an uncon- production is through to end-to-end experiential trolled category of spend due to its really about marketing design firms and full-service complexity and the emotional nature of marketing or branding agencies. Before the purchase. Typically event produc- storytelling, you engage a firm to assist with your tion is approximately 35% of the total not just head meeting, it is important to understand budget for a meeting. As a significant knowledge, desired outcomes, budget, and your investment, it’s worthwhile taking the meeting type as many event production time to understand how it can deliver but heart companies specialize in different areas the greatest results and return on knowledge. such as live events, meetings/confer- investment. ences, media/press events, and trade We know that shows / exhibits. The elements associated with event emotion drives production are high visibility: Event production firms include: a message • Do the microphones work in the general session? home. It’s our • Traditional A/V firms — Focus on • Is the lighting right? equipment and hardware. job to help • Do slides, sound effects and music • Event design firms — Focus on the cue as expected to provide a seam- create that environment including the audio and less experience for presenters and visual experience. emotion.’ attendees? • Experiential agencies — Focus on SETH KERR immersing an audience by incorporat- Mistakes in this area are very visible and Enliven Productions ing multiple technologies in order to often impact leadership during presen- engage and motivate them to action. tations – a situation meeting planners and meeting owners want to avoid. • Individual/Freelance event produc- Therefore once a trusted resource is ers — Act as general contractors on found, planners tend to prefer working behalf of the client. with that resource as the ‘lower risk • In-House agencies — Outsourced option’ when compared to contracting third-parties associated with specific with another firm. That said, in many hotels, convention centers, etc. – a companies, procurement is turning growing trend. their attention to this category as they are to all categories of meeting spend, Meeting planners need to understand which typically means that ‘trust’ is their options within this category and no longer the overriding factor in the be prepared to ask relevant questions decision-making process. Greg Van in order to determine which partner can Dyke, SVP Global Sales & Marketing best meet their needs. for PSAV has observed this dynamic and sees both sides. “Trust is always

56 AMERICAN EXPRESS MEETINGS & EVENTS SOLUTIONS important, particularly onsite. The live team has to have trust with their provider GETTING THE MOST as production is a very visible part of a meeting. Many organizations are going FROM YOUR EVENT to a preferred model with a sub-set of providers. We would rather be preferred PRODUCTION AGENCY than mandated, so the trust is there and we have a sense of partnership with the • Engage them as early as possible in the client.” process - site selection, venue evaluation, agenda development Strategic sourcing processes can be applied to event production, however it’s • Clearly share theme, messaging and important to realize that not all of the desired outcomes at the beginning of deliverables of event production agencies the engagement - this information will fit neatly into defined categories. In provide the event production agency the addition to rate card, gear rental costs, best opportunity to create an immersive labor rates and other fees, consideration environment should be given for creative development, delivery quality, ability to handle last • Tap into their experience and the perspec- minute changes and more that come tive their work with other clients provides with the event production category. – many times they have “been there done “Procurement must be able to recog- that,” so can help guide you by sharing nize the overall value event production other successful approaches agencies bring to their meetings and to their organization beyond the more easily • Understand that not all event production compared common denominators. For companies are alike, and know what you example, firms that own their equipment are looking for from your production inventory have a substantive pricing resource to ensure you have the right advantage that other agencies do not. match for your event – are they an equip- That is not solely, however, a reflection of ment provider only? Do they have live the quality of service delivered, creativity meeting experience? Is their experience and other elements they may bring to the consistent with the scale and scope of your table,” says Seth Kerr, vice president and event? CMO of Enliven Production Group, Inc. • Be open to new technologies and CREATING AN ENGAGING approaches that can enhance the meeting ENVIRONMENT experience for attendees and deliver a Today’s event production companies are better return on your meeting objectives more likely to ask questions about your meeting goals and desired outcomes in an effort to help design and deliver the most effective environment in which to get your message across to attendees.

2015 GLOBAL MEETINGS & EVENTS FORECAST 57 Seth Kerr notes, “Event production is on the side of a building. Taking images really about storytelling, not just head beyond the traditional screen opens up knowledge, but heart knowledge. We the opportunities for meeting planners Just like we know that emotion drives a message to create a truly immersive environment. may watch home. It’s our job to help create that emotion – through music, sound, visuals and ‘Second screen’ is also a big opportunity the Oscars more.” Agencies are focusing on creating for meeting planners. Attendees are at home break-through; new environments to already pre-disposed to multitasking pique interest and full engage attendees. and looking at their personal devices. and tweet “Getting the most from your event pro- Event production companies like PSAV along on our duction agency today means sharing the are working with an increasing number of smartphones, full picture with them and allowing them clients to embrace this natural tendency. to come to the table with new ideas, it’s They use it to provide additional content we can not about ordering a screen and wireless and forums for audience interaction, engage event microphones,” says Kerr. for example. Just like we may watch the Oscars at home and tweet along on attendees As technology and the role of mobile our smartphones, we can engage event in similar apps, virtual / hybrid meeting tools and attendees in similar behavior to deepen behavior more play an increasing role in meetings their level of engagement. and events, event production agencies to deepen can serve as a guide to integration Social Q&A is another trend PSAV is their level of into the overarching event experience. seeing. Avoiding the traditional passing “Today, technology is pushing us at of the microphone, Social Q&A allows for engagement. warp speed toward a fully integrated questions to be submitted and vetted via and more immersive event environment a mobile app. The audience can then rate — which incorporates branding, mobile the questions submitted, ensuring your apps, smartphone technology and the speakers are spending time responding integration of tablets/devices, digital to questions that are of interest to the signage and social media overlays,” Kerr majority of your audience. observes. “It’s important, however, not to use it all just because you can. Meeting It’s not just about A/V anymore, but owners must weigh the advantages and rather about using the right tools in then carefully consider if a certain tech- the right way to engage your audience nology is right for the event experience – whether they are in the room at the or if it’s just cool and trendy but serves meeting, or attending via a virtual tech- no measurable and relevant purpose.” nology. Event production plays a role in working to ensure the engagement of Other growing trends in event production every attendee. As a significant portion include use of super-wide screens and of meeting budgets, and an important video mapping — the ability to project contributor to meeting their objectives, images in a way that works with the developing a process for selecting the environment, such as projecting images right event production firm is definitely that wrap around columns or appear worth the investment.

58 AMERICAN EXPRESS MEETINGS & EVENTS Trends by Region and Commentary

In This Section 1. North America 2. EMEA 3. Asia Pacific 4. Central & South America

2015 GLOBAL MEETINGS & EVENTS FORECAST 59 NORTH AMERICA

Meetings Activity

Number of Meetings category that may be experiencing resurgence by Meeting Type greater than the survey data suggests. “We’re seeing a lot of requests for training meetings. A few more and a bit bigger. Changes to the There’s a pent-up demand for training events number of meetings and their size for all meeting that weren’t happening post-recession,” accord- types are forecast to be quite small, but mostly ing to one North American meeting leader. As positive in North America. Training programs with other meeting categories, the emphasis have the slightest of leads over other meeting on results and return on investment is leading types with the highest increase in activity and to closer monitoring of meeting effectiveness. size, though overall are predicted to be flat. “There’s a scrutiny on objectives and weighing that against the costs before approving training, Hard questions. After several years of reducing though,” she also notes. “Companies are also meeting activity in the aftermath of the economic looking to measure the effectiveness of the downturn, North American companies appear to training, doing pre- and post-event surveys to be asking themselves hard questions in an effort see if participants gained knowledge and found to maximize their budget. “‘Should we have a the meeting worthwhile.” meeting at all?’ is a much more prevalent question than ever before,” says one North American Number of Attendees meetings professional managing programs for per Meeting multiple clients. If the answer is yes, “then the focus is on being creative with what they have, and getting more bang for their buck.” Attendee levels seem to have stabilized, with no major changes for any specific meeting Focus on results. Training is one meeting type. Overall, there seems to be pressure within

60 AMERICAN EXPRESS MEETINGS & EVENTS SURVEY RESULTS

Indicates highest response

Number of Meetings

MEETING TYPE CHANGE Sales/Marketing 0.5% Training 0.9% Internal Team Meeting 0.0% Product Launch (Internal/External) 0.0% Conferences/Tradeshows 0.1% Senior Leadership Meeting/Board Meeting 0.7% Advisory Board 0.5% Incentive/Special events -0.2%

Number of Attendees per Meeting

MEETING TYPE CHANGE Sales/Marketing 0.2% Training 0.6% companies to limit the number of attendees to Internal Team Meeting -0.1% only those deemed as necessary. Product Launch (Internal/External) 0.1% Conferences/Tradeshows 0.5% Days per Meeting Senior Leadership Meeting/Board Meeting 0.3% Advisory Board -0.2% Incentive/Special events -0.2% New to this year’s survey was a question about average length of meetings by type. Respon- dents were asked to estimate the length of their events, as a way to set benchmarks within the Days per Meeting industry and for future forecasts. Similar to the MEETING TYPE DAYS global market, in North America incentive and Sales/Marketing 2.4 special events were reported to be the longest meeting by category, followed by conferences. Training 2.4 Internal Team Meeting 1.8 Meeting experts and hotel suppliers have Product Launch noticed that many meetings have been reduced (Internal/External) 2.2 in size over the past few years, which is increas- Conferences/Tradeshows 2.9 ing the demand for meetings at airport properties, as meeting owners try to maximize the Senior Leadership productive time available for attendees. Meeting/Board Meeting 2.1 Advisory Board 1.7

Incentive/Special events 3.2

2015 GLOBAL MEETINGS & EVENTS FORECAST 61 SURVEY RESULTS

Overall Meeting Spend and Meetings Budgets Individual Budgets & Planning MEETING BUDGETS CHANGE

Overall Spend 0.3% Overall Meeting Spend and Individual Budgets Individual Budgets –0.2%

Overall meeting spend and individual budgets are predicted to remain essentially unchanged Primary Locations for Meetings in 2015, according to North American survey respondents. Less than 7% of respondents pre- 78.3% dicted changes of 10% or more to their program Primarily spend or meeting budgets. large city locations 21.7% More strategy, higher expectations. Meeting Primarily planning continues to undergo transformation at second-tier city many companies, with the trend toward strate- locations gic meeting management driving greater collab- oration to ensure value for money. Milton Rivera Group Hotel Rates of American Express Meetings & Events says

PRICING TRENDS CHANGE organizations are making an effort “to determine the best way to pursue building a strategic Group Rates for Hotels 4.6% program within the organization and understand (Source: American Express Meetings & Events what each group wants to accomplish.” Rivera North American Survey, August 2014) says a coherent plan that puts sales, marketing and procurement all on the same page makes Top 10 U.S. Cities based on dealing with third-party suppliers much easier Meetings & Events Activity and more effective.

Others see the same evolution in client sophisti- 1. Chicago cation leading to pressure for meeting organiz- 2. Orlando ers to do more with less, with one noting, “The 3. Las Vegas expectations from 3 to 5 years ago are no longer sufficient. The meeting owner is expected to 4. Atlanta drive more results, so they’re looking for more 5. San Diego, Calif. creativity from their meeting planners.” 6. New York Policies with teeth. For some companies, 7. Dallas meeting and event policies are one line in a long 8. Washington, D.C. corporate document, but many are now developing comprehensive guidelines putting budgeting 9. New Orleans and approvals into a formal process. Approval 10. Nashville, Tenn. processes bring more scrutiny to the rationale (Source: Cvent, 2014)

62 AMERICAN EXPRESS MEETINGS & EVENTS and effectiveness of individual meetings as part Top 10 U.S.Cities of the decision-making, and there is increased pressure to keep individual meeting budgets in The top ten cities for meetings and events within check. the U.S. according to Cvent, Inc. are listed on the facing page. Based on activity within the Incentives untouched. North American meeting Cvent Supplier Network between July 2013 experts interviewed did note that demand for and June 2014, Chicago claimed the top spot. incentives and client meetings and their associ- Orlando slipped to second place, while Las Vegas ated budgets remain largely intact as corporate remained in third place. leaders make it a priority to invest in maintaining company morale. Pricing Trends Meeting Locations Group Hotel Rates Primary Locations for Meetings No vacancy. Meetings, leisure and transient business travel demand continues to outpace Staying close to home. “There’s a continued capacity in the hotel sector, with occupancies push to stay close to home and host meetings reaching record levels in some locations, and where the highest number of attendees live,” rates rising as result. Thus, survey respondents says one North American meeting expert. “This are anticipating group rate increases of 4.6%. ties back to reduced budget and need for cost This rise is putting increased pressure on meet- savings.” At the same time, Kaaren Hamilton, ing budgets, pointing to the value of things like Vice President of Global Sales for Carlson-Rez- pre-negotiated corporate rates or preferred idor, sees strong demand in both primary and hotel programs that lock in rates to help insulate secondary city destinations in North America. organizations from further rate increases during Even close to home, there’s a push for fun or the contract term. unique locations, especially ones that offer high-tech experiences for today’s multi-tasking Not quite as nice. Event owners without attendee. preferred programs may increasingly find themselves in the challenging position of trying Resorts vs. reality. The desire to hold an event to drive cost savings in a seller’s market. Some at a resort location remains, with some meeting meeting owners scale back their expectations owners being unaware that the use of these — for example, from a four-star to a three-star properties may be prohibited by their company’s property — in order to meet budget objectives. guidelines. This highlights the need for organizations to communicate and promote guidelines internally to ensure the company is not put at risk. It also points to the benefit of centrally managing meetings, in order to avoid inappropriate locations being selected without the company’s knowledge.

2015 GLOBAL MEETINGS & EVENTS FORECAST 63 EMEA

Meetings Activity

Number of Meetings High-tech heating up. Meeting owners in Europe, by Meeting Type particularly Spain and France, are driving exper- imentation with newer and diverse technology. Uneven recovery. Meetings activity predictions Event planners are offering everything from social from European survey respondents generally media to connect attendees, to tablets to facilitate mirrors the economic situation of the individual interaction with speakers or hosts. The pressure countries in 2014. As Germany has struggled to innovate is leading to the development of economically, its events market predictions have meeting-specific apps in some markets. softened from a 4.1% predicted increase in overall activity for 2014 to a range of declines for each Pharmaceutical congresses under pressure. A meeting type of up to 2.2%. Similarly in France Belgian meetings expert has noted that pharma- and Denmark, predictions for small decreases in ceutical congress participation is under pressure meeting activity and spending reflect economies as companies try to minimize travel expenses. that haven’t yet fully stabilized. Spain however, One company has chosen to stop hold congresses after a difficult period, has seen some strong altogether and has chosen instead to host smaller, growth economically, which is playing out in the local meetings to reach the same audience. meetings sector through predicted increases in events, particularly internal meetings and incen- Number of Attendees per Meeting tive travel to motivate sales teams.

UK respondents are positive predicting small The personal touch. Across the European market, increases across all meeting types, but less so only incremental declines are predicted for the than last year when a 4.5% increase was expected number of attendees in nearly all meeting types. for 2014. Germany and the UK, two countries with positive predictions for 2014, are expecting slight declines Less Incentive in Germany. Perhaps not surpris- across the board, while Spain and France are ingly, incentives and special events are declining seeing smaller declines predicted for 2015 than in popularity in Germany. Companies are looking in our previous 2014 forecast. Virtual meetings for other ways to motivate people, fueling a trend have not captured the hearts of meeting owners toward educational workshops and networking in Europe as much as in North America, but a few events, and away from all-inclusive trips to exotic markets such as Spain are experimenting more destinations. than others. Experts see growth in hybrid and

64 AMERICAN EXPRESS MEETINGS & EVENTS SURVEY RESULTS

Indicates highest response in each region

Number of Meetings

MEETING TYPE EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM SWEDEN NETHERLANDS Sales/Marketing 0.2% 0.6% -1.4% -1.8% 3.0% -0.6% 0.2% Training 0.1% 1.4% -2.2% 0.3% 0.5% -1.1% 3.1% Internal Team Meeting 0.5% 0.9% -1.7% -0.1% 2.6% -0.6% 2.0% Product Launch (Internal/External) 0.0% 0.3% -1.4% 0.9% 2.1% -2.7% -0.3% Conferences/Tradeshows 0.4% 1.1% -1.8% 1.5% 1.1% -2.5% 4.7% Senior Leadership/Board Meeting 0.5% 1.4% -0.3% -0.5% 1.5% -1.1% 1.8% Advisory Board 1.2% 3.3% -0.1% 2.4% 1.5% -0.8% 2.1% Incentive/Special events 0.0% 0.6% -0.3% 0.6% 2.1% -4.8% -0.6%

Number of Attendees per Meeting

MEETING TYPE EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM SWEDEN NETHERLANDS Sales/Marketing -0.9% -1.6% -1.1% 1.2% 0.1% -1.5% -2.0% Training -0.8% 0.2% -1.2% -2.1% -0.4% -2.7% 1.2% Internal Team Meeting -0.4% -0.6% -1.1% -1.4% 0.7% -1.3% 1.3% Product Launch (Internal/External) -0.6% -0.4% -1.1% -0.4% 0.1% -1.4% 0.0% Conferences/Tradeshows -0.8% -1.2% -1.3% 0.6% -0.2% -3.6% 0.8% Senior Leadership/Board Meeting -0.6% 0.2% -0.5% -2.8% 0.0% -1.8% -0.7% Advisory Board -0.1% 1.0% -0.5% 1.8% 0.0% -1.7% -0.3% Incentive/Special events -1.0% -0.3% -0.1% -2.0% -0.8% -3.3% -2.4%

Days per Meeting

MEETING TYPE EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM SWEDEN NETHERLANDS Sales/Marketing 2.0 2.2 1.6 2.7 2.5 2.1 1.6 Training 2.0 2.6 1.8 2.9 1.8 1.6 1.9 Internal Team Meeting 1.8 2.0 1.5 3.2 2.0 1.5 1.6 Product Launch (Internal/External) 2.1 2.0 1.8 2.3 2.5 2.2 1.7 Conferences/Tradeshows 2.8 2.6 3.0 2.7 3.2 2.1 3.1 Senior Leadership/Board Meeting 1.8 1.6 1.9 3.0 2.0 1.8 1.5 Advisory Board 1.6 1.7 1.5 1.8 1.7 1.5 1.2 Incentive/Special events 3.1 2.6 2.5 1.8 4.7 2.7 2.5

(Source: American Express Meetings & Events European Survey, August 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 65 virtual solutions coming, but not in the immedi- last on average almost 5 days, nearly two days ate future. longer than the European average. France consistently leads the market in length of other meetings, particularly internal events such Days per Meeting as advisory board, leadership and training sessions. At 3.2 days, internal team meetings Investment in incentives. The outlier among in France are a full 1.4 days longer than the European markets in meeting length is clearly European average. Spain, where incentives and special events

SURVEY RESULTS

Indicates highest response in each region

Individual Meeting Budgets EEMMEEAA UUKK GGEERRMMAANNYY FFRRAANNCCEE SSPPAAIINN DDEENNMMAARRKK BBEELLGGIIUUMM SSWWEEDDEENN NNEETTHHEERRLLAANNDDSS MEETING BUDGETS EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM SWEDEN NETHERLANDS

Overall Spend -0.7% -1.1% 0.2% -3.8% -0.4% -3.8% 1.4% EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM SWEDEN NETHERLANDS Individual Budgets -0.4% -0.7% 0.5% -2.9% 0.3% -2.9% 0.2%

EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM EMEA UK GER1M2A.6N%Y FRANCE SPAIN DENMARK BELGIUM 1 2 . 6% SSWWEEDDEENN N NETETHHEERRLALANNDDSS

9944 ..1 1%% 1199..22%% 9922..33%%

Primary LocationsEMEMEAE A forUKU KMeetings GGEREMRMANANY Y FRFARNANCEC E SPSAPIANIN DEDNENMMARAKR K BEBLEGLGIUIMUM SWSWEDEEDNEN N NETEHTHERELRALNANDSDS 12.6%

Primarily large city locations Primarily second-tier city94. 1% 19.2% 92.3% 8877..44 % 8800..88%%

55..99% 77..77%%

1212.6.6%% 44..33%

9944.1.%1% 19.2% 9922.3.3%% 8877..5%5% 3300..88% 19.2%87.4% 80.8%

DENMARK UK FRANCE5.9% 7.7% 121.26.%6% SWEDEN 4.3% 949.41.%1% 191.92.%2% 929.23.%3% 87.5% 30.8% 95.7% 69.2% 887.74.4%% 8800.8.8%% 95.7% 69.2%

55.9.9%% 7.77.%7% 1 122..5%5% EMEA GERMANY SPAIN BELGIUM 44.3.3%% NETHERLANDS 878.74.%4% 808.08.%8% 887.75%.5% 3300.8.8%% 95.7% 69.2%

5.59.%9% 7.7.%7% 12.5% 4.43.%3%

878.75%.5% 303.08.%8%

9955.7.%7% 6699.2.2%%

Group Hotel Rates 1212.5%.5% EMEA UK GERMANY FRANCE SPAIN DENMARK BELGIUM 959.57.%7% 696.92.%2% SWEDEN NETHERLANDS Group Rates for Hotels 1.1% 2.8% -1.5% 121.25%.5% 1.4% 1.7% 2.5% 1.8%

(Source: American Express Meetings & Events European Survey, August 2014)

66 AMERICAN EXPRESS MEETINGS & EVENTS Meetings Budgets developed a silver lining for some markets, & Planning as southern European cities hard-hit by the downturn, such as Madrid, Athens and Rome, have become more attractive to meeting owners Overall Meeting Spend looking for lower rates. Classic big-city destina- & Individual Budgets tions such as Paris, London and Dublin continue to draw clients – but at a price, says one expert Creativity within constraints. Doing more with on the Benelux meetings market. “Other desti- less is the mantra of most meeting owners, and nations such as Warsaw, Lisbon, Bratislava and their 2015 budgets reflect that. Even in Spain, Budapest are also becoming more popular for where the economy is gaining strength and cost conscious meeting owners,” she notes. companies are more willing to invest in meetings, budgets are predicted to be relatively flat in Four-star, no-star. The trend toward choosing 2015, however that is an improvement over the four-star over five-star hotels continues. Accord- 7.1% decline predicted for 2014. Respondents ing to a meetings expert in France, this situation also indicated spending will drop most signifi- is prompting some new hotel properties to take cantly in France and Denmark, while Germany, an innovative approach by launch with no star Belgium, and the Netherlands registered incre- rating at all, in order to avoid being excluded mental increases over the previous year. The UK from hosting meetings for compliance reasons. is predicted to see a decline of just over 1%. British thrift. Some companies from the United Kingdom are organizing more meetings in the Individual Meeting Budgets European Union, in part to boost participation from Central European attendees without Fewer snack breaks? Per meeting spending pushing travel costs too high. One veteran is expected to shift downward slightly in most observer of the UK market sees a trend toward countries in 2015. Predicted declines in the airport locations, driven by the mandate to keep number of attendees will certainly help facilitate meetings short. “The meeting needs to be easy these cuts in many markets. to get to, and airport properties are getting more attention because of the convenience factor. It Meeting Locations addresses the need for face-to-face connection in a shorter time frame.”

Primary Locations for Meetings In the Benelux countries, for many meeting owners, being cost-conscious means pursuing Large cities maintain their dominance. Large alternatives to face-to-face meetings where city locations are once again predicted to see appropriate, such as the increased use of con- the lion’s share of meetings activity across the ference calls or webinars, something experts region. Respondents from Belgium and Nether- expect to continue. lands are the most likely to select a second-tier city for their events next year. Cutting the distance. Moving away from large events that draw attendees globally, some New hot spots. The economic crisis has European companies are continuing to pursue

2015 GLOBAL MEETINGS & EVENTS FORECAST 67 regional meetings instead. The content and largely point to increases for 2015, led by the programming remain consistent, but the delivery UK and Denmark/Sweden at 2.8% and 2.5%, in different locations enables some cost saving respectively. Spain respondents have reversed on travel. In Spain, many clients are thinking a predicted 1.8% decline in 2014 into a 1.7% even more local, according to a Barcelona-based anticipated increase for 2015. German respon- meeting industry leader. “Many meeting own- dents have done the opposite; after two years of ers prefer to choose domestic venues and are predicted increases of 2.4% and 2.7%, 2015 is staying within Spain.” expected to bring a slight decline of 1.5%.

Easier access. For delegates traveling from AV included in the Nordic rates. In the Nordic Eastern Europe to meetings, one experts sees markets, basic technology requirements – such Istanbul as a popular destination due to the as projectors and other AV capabilities – are ability to purchase visas online with relative increasingly seen as standard inclusions in a ease prior to travel, as compared to longer visa meeting contract. “Venues have invested a lot application processes associated with other into their spaces to win these events,” says an destinations. M&E manager for the Nordic countries. “Now you often get Wi-Fi, projectors, sound systems, hearing aids, and microphones all included in Top Ten European Cities the meeting room price.” This trend may help meeting owners with meeting their budget Based on the activity American Express Meet- constraints within those countries as room rates ings & Events clients, the list of top 10 European increase. cities has once again remained quite stable and contains a list of familiar and traditionally popular meeting locations. All top four cities have retained their spots from last year’s forecast. Berlin has traded places with Brus- Top 10 European Cities based sels as a slightly more popular location, now in on Meetings & Events Activity fifth position. 1. London Pricing Trends 2. Paris Group Hotel Rates 3. Barcelona 4. Amsterdam Higher occupancy, higher prices. As occu- 5. Berlin pancy rates rise in many European markets 6. Nice from the combination of leisure, business and meetings demand, suppliers are predicting 7. Brussels increased rates, and meeting survey respon- 8. Rome dents are no different. After a flat prediction for Europe in our 2014 forecast, survey results 9. Frankfurt 10. Munich

(Source: American Express Meetings & Events Destination Analysis, September 2014) 68 AMERICAN EXPRESS MEETINGS & EVENTS ASIA PACIFIC

Meetings Activity

China’s star still rising. Meeting activity in says one meeting professional. “Nothing dra- Asia Pacific is surging ahead in some countries, matic, but enough to monitor closely.” yet softening in others. The Chinese mainland continues to experience strong demand as a Number of Attendees destination and healthy growth in the number per Meeting of meetings, while in Australia some meeting cancellations are contributing to a slowdown according to a meetings leader in the region. A Spending wisely. Across the region, attendee similar softening seems to be underway in Hong levels range from stable to moderately reduced. Kong. In some cases, that reduction reflects a desire to reallocate meeting budgets. “Companies want Concerns about compliance. Behind the to be sure they’re spending their money on the scenes, many companies in Asia Pacific are right people and the right event,” says a local continuing work on their internal processes, with meetings professional, based in Melbourne. concerns about compliance appearing to be at the forefront across the region. Heavy compli- Days per Meeting ance fines levied against companies in China have led many organizations to review their practices. Shorter, but longer. Meetings in the Asia Pacific region tend to be shorter overall than those in the North American region, with the exception Number of Meetings by of product launches and conferences. Meeting Meeting Type owners are leaning toward fewer and shorter meetings overall, freeing up resources to spend Big meetings, small drop. Survey respondents on marquee events. One Asia Pacific meeting confirmed that meeting activity in Asia Pacific professional has observed, “That priority event region is stable, but the level of activity varies may even be a little longer than the norm, such greatly within the region. “We’re seeing a small as an intensive training meeting that might decrease in the number of very large meetings,” extend from half a day to overnight.”

2015 GLOBAL MEETINGS & EVENTS FORECAST 69 SURVEY RESULTS

Indicates highest response in each region

Number of Meetings Meetings Budgets MEETING TYPE ASIA AUSTRALIA & Planning Sales/Marketing 1.1% 0.6% Training 1.0% 0.8% Overall Meeting Spend & Internal Team Meeting 1.9% 2.7% Individual Meeting Budgets Product Launch (Internal/External) 0.6% 0.0% Conferences/Tradeshows 0.9% 0.3% A little less. Cost-cutting related to program Senior Leadership Meeting spend and individual budgets in AsiaPacific is /Board Meeting 2.0% 2.8% expected to be incremental overall. In fact, a Advisory Board 0.2% 0.5% slightly higher number of respondents predicted Incentive/Special events 0.7% 0.3% increases than decreases in their overall spend, but the percentage increases were smaller. Responses for individual budgets point more definitively to a small decline, with those pre- Number of Attendees per Meeting dicting a decrease nearly double the number MEETING TYPE ASIA AUSTRALIA predicting an increase. Sales/Marketing 1.4% 1.3% Training 0.6% 0.4% Meeting Locations Internal Team Meeting 0.7% 0.8% Product Launch Primary Locations for Meetings (Internal/External) 0.4% 0.2% Conferences/Tradeshows 1.1% 0.8% Senior Leadership Meeting Big cities still reign. Over 85% of meetings and /Board Meeting 0.6% 0.9% events are expected to take place in large cities Advisory Board -0.3% -0.1% in Asia Pacific, essentially the same as last year. Incentive/Special events 1.1% 0.8% Australians are even more focused on major cities, at 94%.

A new normal. Asia Pacific meetings profession- Days per Meeting als observe that more and more meeting owners MEETING TYPE ASIA AUSTRALIA are looking to four-star hotels as their standard Sales/Marketing 2.2 1.8 destination instead of five-star. The “wow” factor Training 1.8 1.5 remains important for meeting owners in the Internal Team Meeting 1.5 1.4 region, with a keen interest in keeping up to Product Launch date on the newest venues. Meeting owners in (Internal/External) 1.3 1.2 Australia and elsewhere in Asia are increasingly Conferences/Tradeshows 2.6 2.5 interested in Singapore as a destination with Senior Leadership Meeting their relatively new integrated resorts. Interest /Board Meeting 1.8 1.8 in Thailand has fallen due to political instability, Advisory Board 1.6 1.4 while Vietnam and Japan have generated more Incentive/Special events 2.9 2.7 interest recently.

(Source: American Express Meetings & Events Asia Pacific Survey, August 2014)

70 AMERICAN EXPRESS MEETINGS & EVENTS SURVEY RESULTS

Top 10 Asia Pacific Cities Overall Meeting Spend and Individual Budgets The top ten cities for meetings and events within MEETING BUDGETS ASIA AUSTRALIA Asia Pacific according to an American Express Meetings & Events destination analysis are listed Overall Spend -0.2% 0.2% on this page. The top four cities are the same Individual Budgets -1.5% -1.3% as last year’s forecast but have shifted in order.

Singapore replaces Shanghai as the top-ranked city, and Sydney drops one spot to third. Primary Locations for Meetings

The American Express Meetings & Events team Primarily large city Primarily second-tier city in Asia Pacific feel that Bali is back “on the rise.” They also have seen that Seoul, with its increase 86.9% 93.9% in internationally branded hotels, is being AUS- ASIA increasingly requested, particularly for meeting TRALIA owners that are looking for an alternative to Tokyo. Sydney continues to be a popular destination for China outbound meetings. 13.1% 6.1%

Pricing Trends Group Hotel Rates

MEETING LOCATIONS ASIA AUSTRALIA Group Hotel Rates Group Rates for Hotels 2.7% 2.4% Up again, but not as much. Survey respon- (Source: American Express Meetings & Events Asia Pacific Survey, August 2014) dents expect group hotel rates to rise once again in Asia Pacific, but the predicted increase of 2.2% continues to decline from estimates of Top 10 Asia Pacific Cities based 4.7% for 2013 and 3.3% in 2014. Supply appears on Meetings & Events Activity to be catching up to demand in the region. 1. Singapore Boosting supply. In Asia, meeting experts 2.Hong Kong/Macau note that rates for high-demand cities such as 3. Shanghai Singapore have been rising and are expected to 4. Sydney continue to climb. Interestingly, Chinese hotel 5. Bali companies are bringing new supply into the country so quickly – nearly tripling growth in 18 6. Bangkok & Phuket months – that it is outpacing demand and some 7. Tokyo experts anticipate rate declines in China as a 8. Seoul result. At the same time, there is some indication 9. Ho Chi Minh & Hanoi of softening Asia-to-Asia demand as organiza- 10. New Delhi tions indicate they are choosing to host their (Source: American Express Meetings & Events Destination Analysis, events locally to reduce transportation costs. September 2014)September 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 71 CENTRAL & SOUTH AMERICA

Meetings Activity

Number of Meetings is expected to continue through the 2016 global by Meeting Type sporting event in Rio de Janeiro. Companies not affiliated with the football tournament orga- A slight rise? Predictions for the number of nized fewer events across the region and many meetings by meeting type point are essentially Brazilians took time off during the tournament, flat. While the changes by meeting type are prompting meeting organizers to shift some small, they are more significant in Central/South activity to other dates on the calendar. It will America than the shifts anticipated in other be interesting to see how demand for Brazil is regions. impacted over the long term as a result of the increased exposure and new infrastructure Like North America, training meetings appear resulting from these events. to be ‘coming back’ in 2014, with the largest increase of 2.4% predicted, followed by incen- Number of Attendees per Meeting tive/special events at 1.3%. Unlike in other regions, Central South American respondents are the only ones to predict a decline in sales More RSVPs for fewer places. Meeting size and marketing-related events. Meeting experts is predicted to remain stable in most markets, interviewed however are not seeing a decline in with very small adjustments anticipated in each the requests for these types of events perhaps meeting type. In Mexico, for example, there are pointing to differences in activity within specific some indications that the reduction in the num- companies or industries. Internal meetings ber of large meetings over the past few years is and large conferences and tradeshows are also leading to more individuals accepting invitations predicted to experience a modest reduction. to the smaller events that are being organized. The preference for more local meetings in The recent world football (soccer) tournament some markets is also helping to consolidate the in Brazil dominated that market, and the effect attendance rates.

72 AMERICAN EXPRESS MEETINGS & EVENTS SURVEY RESULTS

Indicates highest response in each region

Days per Meeting Number of Meetings

MEETING TYPE CHANGE More time to meet. According to survey Sales/Marketing -1.2% respondents, average meeting lengths in the Training 2.4% region are longer than the average for all other Internal Team Meeting 0.4% regions, with the exception of conferences and Product Launch (Internal/External) -0.5% tradeshows. Conferences/Tradeshows -1.1% Senior Leadership Meeting/Board Meeting -0.2% Incentives and special events stand out as the Advisory Board -0.7% longest events; they are reported to be nearly Incentive/Special events 1.3% 20% longer on average than the rest of the world. A Latin American meetings expert has seen a rise in incentive trips from South America that are both larger and are being held in more Number of Attendees per Meeting distant locations such as Russia and China. The MEETING TYPE CHANGE increased time to travel to those destinations Sales/Marketing -0.8% may account for the lengthier events predicted, Training -0.1% particularly incentives and special events. Internal Team Meeting -1.3% Product Launch (Internal/External) -1.3% Meetings Budgets Conferences/Tradeshows 0.1% & Planning Senior Leadership Meeting/Board Meeting -0.4% Advisory Board -0.3% Overall Meeting Spend and Incentive/Special events -0.1% Individual Budgets

The biggest jump. Spending on meetings Days per Meeting overall and on individual meetings is poised for MEETING TYPE DAYS a small increase in 2015. Although activity is at Sales/Marketing 2.6 lower levels than before the economic downturn, Training 2.5 these increases are the largest predicted for any region, a positive sign for the future. Internal Team Meeting 2.2

Product Launch More money per meeting. An even more posi- (Internal/External) 2.0 tive sign for the region is that individual budgets Conferences/Tradeshows 1.9 are anticipated to rise for the first time since we began preparing the forecast in 2012. Although Senior Leadership Meeting/Board Meeting 2.0 companies continue to implement approval processes, especially large international organi- Advisory Board 1.8 zations, it appears that organizations are seeing Incentive/Special events 3.8 the benefit of increasing their investment in meetings, even if it is a relatively small amount!

(Source: American Express Meetings & Events Central/South American Survey, August 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 73 SURVEY RESULTS

Indicates highest response in each region

Overall Meeting Spend and Meeting Locations Individual Budgets Primary Locations for Meetings MEETING BUDGETS CHANGE

Overall Spend 0.9% More for the major cities. Respondents are predicting a rise in the share of meetings in large Individual Budgets 1.2% cities from 65% for 2014 to 72% in 2015. This reversal will be interesting to follow and may be related to the slight rise in available funds for the events. A Latin American meetings expert notes Primary Locations that she is seeing an increase in centralized for Meetings events that are concentrated in the larger cities.

72.2% Being selective vs. luxurious. With tighter resources overall and price increases antici- Primarily large city pated, regional experts noted that meeting own- locations ers are looking to maximize location quality while

staying within their budgets. The expansion of hotel space, particularly in the 4-star category, is helping meet that demand. Elsewhere in Latin

27.8% America, hotel chains are building additional Primarily properties – domestic chains in Mexico and second-tier city locations Argentina, international chains in Colombia and Costa Rica. Experts believe the demand for those properties will continue.

Group Hotel Rates Top Ten Central/ CHANGE South American Cities

Group Rates for Hotels 2.3% The top ten cities for meetings and events within (Source: American Express Meetings & Events Central/South American Survey, August 2014) Central/South America according to an Ameri- can Express Meetings & Events destination analysis are listedon the facing page. Rio de Janeiro, Brazil and the Riviera Maya/Cancun region of Mexico have retained the top two spots from our 2014 forecast. Ciudad de Panama, Panama has made a big jump to third place (from ninth last year) due to its location, reasonable cost, and the expansion of its hotel infrastructure.

Also new to this year’s list is Sao Paulo, Brazil.

74 AMERICAN EXPRESS MEETINGS & EVENTS Pricing Trends Top 10 Central/South American Cities based on Group Hotel Rates Meetings & Events Activity

Up again. Respondents expect hotel rates to 1. Rio De Janeiro, Brazil continue to rise at an average of 2.3% overall, and experts see increases of up to 4 per cent in 2. Riviera Maya / Cancun, Mexico some markets. This rise is less however, than the 3. Ciudad De Panama, Panama 4.6% increase predicted for 2014. 4. Sao Paulo, Brazil Border discount disappears. Mexico’s tax increase in its border region from 11% to 16% to 5. Cartagena De Indias/Bogotá, match the rate in the rest of the country applies Colombia to hotel, food and beverage purchases, and has led to an increase in costs for many hotel events. 6. Punta Cana, Dominican Republic 7. Buenos Aires/Mendoza, Similarly the major global football competition Argentina sparked significant rate increases in Brazil’s major cities. With the major global sporting 8. Cusco / Macchu Pichu / Lima, event coming to Rio de Janeiro in 2016, rates are Peru expected to remain high for the near future. The rest of Latin America is enjoying stable rates, 9, Puerto Vallarta, Mexico with just the expected 2-3% increase. 10. San José / Punta Arena, Costa Rica

(Source: American Express Meetings & Events Destination Analysis, September 2014)

2015 GLOBAL MEETINGS & EVENTS FORECAST 75 TOP 10 CITIES PER REGION

EMEA 1. London 2 Paris NORTH AMERICA 3. Barcelona 1. Chicago 4. Amsterdam 2. Orlando 5. Berlin 3. Las Vegas 6. Nice 4. Atlanta 7. Brussels 5. San Diego, Calif. 8. Rome 6. New York 9. Frankfurt 7. Dallas 10. Munich 8. Washington, D.C. 9. New Orleans 10. Nashville, Tenn.

CENTRAL & SOUTH AMERICA 1. Rio De Janeiro, Brazil 2. Riviera Maya / Cancun, Mexico 3. Ciudad De Panama, Panama 4. Sao Paulo, Brazil 5. Cartagena De Indias/Bogotá, Colombia 6. Punta Cana, Dominican Republic 7. Buenos Aires/Mendoza, Argentina 8. Cusco / Macchu Pichu / Lima, Peru 9, Puerto Vallarta, Mexico 10. San José / Punta Arena, Costa Rica

76 AMERICAN EXPRESS MEETINGS & EVENTS ASIA PACIFIC 1. Singapore 2.Hong Kong/Macau 3. Shanghai 4. Sydney 5. Bali 6. Bangkok & Phuket 7. Tokyo 8. Seoul 9. Ho Chi Minh & Hanoi 10. New Delhi

2015 GLOBAL MEETINGS & EVENTS FORECAST 77 Contributors

In addition to those quoted in the report, the following provided their expertise and perspective for this forecast:

Cvent Web Survey Software American Express Meetings & Events:

Norma Dean, Delta Air Lines Kerri Boytis

Dorie Deebold, Starwood Hotels & Resorts Lissa Evans

DoubleDutch, Mobile Event Apps Stephanie Harris

Russell Green, IHG Naequan Jones

Kaaren Hamilton, Carlson Rezidor Hotel Group Nanci Lempert

John Iannini, Melia Hotels International Sam Ming

Seth Kerr, Enliven Production Group, Inc. Shannon O’Neill

Andrew Kidde, L.E. Hotels Mina Patel

Si-Yeon Kim, American Express Milton Rivera Global Business Travel Allison Russell Andee Oleno, PSAV® Aracely Santos Emmanuel Pain Yma Sherry Bryan Reid, Altitude Management Inc. Mary-Ann Urbanovich Rolf W. Schmidt, TOPHOTELPROJECTS GmbH

Taylor Simonin, American Express

Greg Van Dyke, PSAV®

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