Planners eye 2009 with apprehension, see need to prove worth

More than 2,000 meeting professionals agree: The biggest challenges they face in 2009 are the economy, proving the value of meetings and events, and enacting cost-saving measures. A record 2,740 Meetings Professional International (MPI) members, representing 53 countries, responded to the FutureWatch 2009 survey between Nov. 11 and 27, 2008.

Survey participants reported that out of all scheduled 2009 events, an average of 3.4 meetings per organization, at an average value of $200,000 per meeting, were cancelled in fourth quarter 2008. That amount represented, on average, 7 percent of each organization’s scheduled meeting activity for the year. Since then, many high-profile cancellations have made the news, from Primerica’s 55,000-person biennial conference in Atlanta and Wells Fargo’s employee appreciation event in Las Vegas to the 160 meetings and events cancelled by AIG earlier this year. Respondents said they expected reductions in bookings, travel, meeting, budgets, staffing and attendance to continue until the economy rebounds.

At the same time, those surveyed felt face-to-face meetings are the most effective way to build relationships and trust, engender a sense of community, conduct highly interactive programs, engage participants at an emotional level and demonstrate new products that require physical use. Going forward, meeting professionals see the need to:
1. prepare return on investment reports before a meeting is booked, using data such as past performance
2. attendee satisfaction, adherence to budget
3. the planner’s ability to negotiate “extras” like free transportation and complimentary meals.

FutureWatch found that nearly 75 percent of organizations currently conduct some form of in-house meetings evaluation, although primarily it’s for attendee satisfaction, along with revenue and adherence to budget. Also, to create a successful business case for meetings, planners will need to include business impact and return on investment information, as well.

In terms of meeting trends, both suppliers and planners felt that it was a buyer’s market, and 10 percent expect to see more environmentally friendly meetings. But despite 61 percent of respondents saying that corporate social responsibility is important to their organizations, most felt that those CSR initiatives would be delayed until the economy improves.

American planners said the top six influences on their meetings this year are:
1. the demand for more remote/virtual meetings
2. lower budgets
3. fewer face-to-face meetings
4. more green meetings
5. less frills (open bars, gifts, formal dinners and spousal entertainment, etc.)
6. more in-house/drive meetings.

Across the board, 25 percent of meeting and event planners said that the reduction in the number of available flights would reshape how they would plan and conduct meetings. Airlift was the No. 2 factor influencing destination selection in 2009, behind overall cost (26 percent). Other top factors influencing destination selection included:
1. travel costs (16 percent)
2. location relative to meeting purpose (11 percent)
3. ease of access/travel (11 percent)
4. proximity to members/attendees (7 percent).

The top two factors influencing hotel and venue selection in 2009 were reported to be overall cost (31 percent for hotel selection and 40 percent for venue selection) and customer service (14 and 11 percent, respectively). Other top factors influencing hotel selection included location relative to meeting purpose, willingness to negotiate, incentives/concessions, room rates, quality/condition of hotel, meeting space requirements and value. Other factors influencing venue selection included quality/condition of venue, location relative to meeting purpose, meeting space requirements, flexible/dedicated staff and value.

Source: By Kristi Casey Sanders