MPI Meetings Outlook - Winter 2016
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Safety and security concerns have emerged as the strongest yet in MPI's Meetings Outlook survey amid continued cautious optimism in the industry. 48% of respondents expect rising costs of meetings due to greater security needs, and suppliers' costs are increasing. In response to recent terrorist attacks, 28% of meeting professionals plan to change how they run meetings, such as introducing new security programming, working with law enforcement, and providing employee training.
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MPI Meetings Outlook - Winter 2016
- 1. MEETINGS 2016 WINTER EDITION Safety and security concerns emergethe strongest yet in the history of MPIs Meetings Outlook surveyas cautious optimism and growth continues in the industry. DEVELOPED IN PARTNERSHIP WITH MOWinter2016.indd 59MOWinter2016.indd 59 1/22/16 10:56 AM1/22/16 10:56 AM
- 2. 60 MPI MEETINGS OUTLOOK: 2016 Winter Edition By Elaine Pofeldt MEETINGS I just planned a ilm festival in Arkansas, and it was very much part of the discussionworking with police, having an evacuation plan, says Bethney Ruggiero, CMP, founder and principal of Strategic Event Design, based in the New York City area. In addition, 48 percent of respondents said they ex- pected the costs of meetings to rise, because of the need for greater security. Supplier costs are already ticking up, the research found. Some meeting professionals reported meetings were being cancelled, at a cost to both planners and suppliers. I n the wake of the terrorist attacks in Paris and San Bernardino, Calif.both of which involved meeting and event venuesLori Hedrick, CMP, CMM, MHA, CSEP, is introducing brand new educational program- ming to the MPI Carolinas Chapter. Its about security. Risk management is not a new topic for most meeting professionals, but this time Hedrick plans to bring in local law enforcement and the Red Cross to address questions about what to do if the worst happens. For instance, shed like them to answer: What do you do in that minute before help arrives, with the people with you in the room? Who would have thought two years ago youd be wor- ried about doing triage in the middle of a meeting, says Hedrick, vice president of education for the MPI Carolinas Chapter, as well as a meeting professional with the Bur- roughs Wellcome Fund in Research Triangle Park, N.C. Hedrick is not alone in her concern. In the latest Meet- ings Outlook survey, 28 percent of meeting professionals said they are making changes in how they run meetings in response to the recent terrorist incidents. The vast majority of people are taking a very sober and thoughtful approach to ways to improve security with- out alarming the attendee, says Bill Voegeli (MPI Georgia Chapter), president of Association Insights, the Atlanta-ar- ea research irm that conducts the survey. MORE DESTINATION RESEARCH AND COMMUNICATIONS REGARDING RISK 15% MORE ATTENDEE SCREENING 5% COMBATING TERRORISMof industry professionals anticipate changes to the meeting and event industry due to the increasing prevalence and threat of terrorism. Following are the ways in which these organizations are focusing their efforts. 44% 48% TREND FORECAST of respondents expect the costs of meetings to rise because of the need for greater security. PROVIDING MORE EMPLOYEE TRAINING 19% MOWinter2016.indd 60MOWinter2016.indd 60 1/22/16 10:56 AM1/22/16 10:56 AM
- 3. SECURING EVENTS With big global events on his agenda, Bruce Johnson, manager of business development and events for manufacturer Emerson Electric in Round Rock, Texas, has given careful thought to how to keep attendees safe from terrorism. The companys Global Users Exchange conferenceheld in October 2015 in Denvertook place before the recent wave of terrorism. But the next iteration of that conference is slated from Oct. 12-14, 2016, in Brussels, Belgium, at the Square Brussels Meeting Centre, where many in Europe are especially on edge about the Paris attacks. Right now, we are being ex- tremely cautious there,Johnson says.Were monitoring all reg- istrations on our visa screening. We are doing double and triple checking to make sure people are who they say they are. Emerson Electric is a multina- tional that makes products rang- ing from food-waste disposals for sinks to technology solutions related to heating, cooling and refrigeration. With seven hotels booked in Brussels, Emerson Electrics team is putting very tight security in place that will identify everyone on its team and all attendees, col- laborating closely with the hotels. Theyll look through their housing list to make sure those people have room,Johnson says. Weve asked if they could pro- vide additional security to screen the other tenants in the hotel. Even prior to the terrorist attacks in Paris and San Bernardi- no, Calif., Emerson Electric had a key-employees policy that does not allow more than five senior managers to be on the same flight at any given time. We loosely enforce that normally,he says.Were closely watching that now. Developed in Partnership with VISIT DENVER 61 LORI HEDRICK, CMP,CMM,MHA,CSEP MPI Carolinas Chapter Meeting professional with Burroughs Wellcome Fund Who would have thought two years ago youd be worried about doing triage in the middle of a meeting. DEVELOPING NEW SECURITY PLANS 14% UPDATING PROCEDURES AND CONTINGENCY PLANS 9% PREDICT NO CHANGES DUE TO INCREASING THREAT OF TERRORISM Respondents agreeing to this statement most often explained that they believe their current actions are suf鍖cient to keep them safe, that they are statistically unlikely to be victims or that their locations and events are of little or no value to terrorists. 27% ADDING MORE SECURITY STAFF 15% WORKING WITH LOCAL AND FEDERAL LAW ENFORCEMENT5%W LOCAL MOWinter2016.indd 61MOWinter2016.indd 61 2/10/16 11:34 AM2/10/16 11:34 AM
- 4. 62 MPI MEETINGS OUTLOOK: 2016 Winter Edition Meeting professionals concerns about terrorism are con- tributing to an overall mood of caution in the industry one that also extends to projections about budgets and business conditions. SECURITY 2.0 Although security is on the minds of many meeting profes- sionals, how their organizations react to the recent terror- ist attacks is all over the map. We see very little indication people are saying this is someone elses problem, Voegeli says. They temper that awareness with a variety of factors that are applicable to them. The irst step for many organizations, especially large ones, has been to more rigorously evaluate the threat level at their destinations. Both large companies and the meet- ing and event professionals who serve them are turning to security agencies, Voegeli says, though some such respon- dents were reluctant to share the names of their providers. Some organizations are also re-evaluating corporate travel plans. That is the case at telecommunica- tions irm CommScope Inc. of North Carolina, where Paula A. Klinger (MPI Carolinas Chapter) works as a corporate meeting and event plan- ner. Though the compa- ny has large facilities in China, Klinger says she would be cautious about taking a large team on a global trip. Well really think that through seriously now, with the situations that are happening, she says. Not that it cant happen here at homewe know it can. Klinger also anticipates it will be more dif icult to get visas processed for her team than in the past and that air- port security will become more of a factor. Well need more planning for our international team to come in to us, she says. Other organizations have become cautiousin the wake of the attacksabout trying new destinations. When Vanessa Whitehead, CEO of Global Organization and Plan- ning Services LLC in Newark, N.J., attended a presentation in December about pursuing business in Africa and the Caribbean, attendees at her table discussed their leeriness about traveling overseas at the moment. If folks are leery, they are pretty much not going to pursue opportunities to host events, she says. Some organizations are amping up already tight se- curity, particularly at events where controversial topics might be discussed. Freeman, a Dallas-based integrator of solutions for live events, took that approach at an autumn conference in Houston that attracted a number of ener- gy-related speakers. While there has always been a need for diligence, the carefulness is even more important now, according to Bob Walker (MPI Dallas/Fort Worth Chapter), SVP of client solutions at Freeman. Its not just having people at the registration desk but having a bit of heightened security on site, he says. You 35% TREND FORECAST of respondents believe room rates will increase by 6% or more over the next year. BOB WALKER MPI Dallas/Fort Worth Chapter SVP of client solutions at Freeman Its not just having people at the registration desk but having a bit of heightened security on site. You have a larger security detail that is checking badges and making sure the people that are in various areas of a hotel or convention hall have the credentials to be there. BUYING POWER PINCH A stress between rising budgets and faster rising costs was inferred last quarter. It is expressed this quarter as an observation that in- creasing budgets are even tighter than before. The latest statistics bear this out: Spend is projected to increase by 1.6% (down, sta- tistically, over last quarter), but prices are projected to increase by 4.1% overall. On average, this is a 2.5% decline in buying power. MOWinter2016.indd 62MOWinter2016.indd 62 1/22/16 10:57 AM1/22/16 10:57 AM
- 5. Developed in Partnership with VISIT DENVER 63 have a larger security detail that is checking badges and making sure the people that are in various areas of a hotel or convention hall have the credentials to be there. Freeman has also encouraged attendees to keep an eye on the environment at events, something Walker has seen happening throughout the industry. I see more and more events suggesting to attendees that if something seems to be wrong, let us know, he says. The concern goes beyond terrorism. Some deranged person could walk in with an automat- ic weapon and just start iring, he says. Its up to us, as those who plan these events, to put some procedures in place. Although these procedures exist now, he has found, that recent events highlight how much more important theyre becoming. But other organizations are sticking with their existing security plans. Some companies have always done threat assess- ments, Voegeli says. Those companies say nothing has changed for them. Thats been the experience of Timothy Neill (MPI Ore- gon Chapter), whose employer is not changing its security plans as it evaluates what the recent terrorist attacks mean for itself, its clients and attendees of events in which it is involved. We have a risk assessment we do with virtually any event were involved in, says Neill, rental sales manager for AV Rental Services, a division of Henry V Events in Port- land, Ore., as well as ship and store manager for Henry V. Business Conditions for 2016 OVERALL, RESPONDENTS PROJECT A POSITIVE 3% CHANGE IN BUSINESS CONDITIONSDOWN FROM 3.8% LAST QUARTER. 68% of respondents predict FAVORABLE business conditions 24% of respondents predict NEUTRAL business conditions 8% of respondents predict NEGATIVE business conditions Projected Budget/ Spend Over the Next Year 55% of respondents predict FAVORABLE budget/spend 29% of respondents predict NEUTRAL budget/spend 16% of respondents predict NEGATIVE budget/spend Projected Price Change Over the Next Year F&B/Catering 4.6% Audiovisual 3.6% Air Travel 4.2% Room Rates 4.5% Meeting Space 3.3% MOWinter2016.indd 63MOWinter2016.indd 63 2/10/16 11:37 AM2/10/16 11:37 AM
- 6. 64 MPI MEETINGS OUTLOOK: 2016 Winter Edition CAUTIOUS GROWTH Despite the pall that terrorism has caused, the fundamen- tals of the meetings and events market remain strong, Meetings Outlook found. That is true in areas such as em- ployment growth, in lation, declining inventories and more competition. Still, there has been a slow cooling of growth projec- tions. Budgets are rising, but expenses are skyrocketing so fast that budgets cant keep up, the research showed. Overall spending on meetings will increase by 1.6 percent, but prices are projected to increase by 4.1 percent overall, Meetings Outlook found. This has led to a 2.5 percent de- cline in buying power, on average. Some meeting professionals are responding by trying to lock in good deals now. Because its more of a sellers market, with groups book- ing further out, theyre booking multiple years at the same time to leverage rates as well as concessions, says Doug Tewnion (MPI British Columbia Chapter), senior sales manag- er at Atli ic Hotels in Victoria, British Columbia, who solicits partnerships for the Victoria Marriott Inner Harbour. Other meeting professionals are now taking a very careful approach to spending on meetings. Klinger at CommScope has found that with the prices of both hotel accommodations and airfare rising, there is more cost-consciousness. If costs contin- TRENDFORECAST of respondents say their organizationsnumbers of full-time employees are increasing.31% INCREASE FLAT DECREASE DEMOGRAPHICALLY BALANCED STAFFA signi鍖cant need brought out is that of identifying, training and retaining the right demographic of employees who can embrace the new meeting and event indus- tryhelping to support some of the experienced professionals who are unfamiliar with emerging expectations. That is, the more seasoned professionals may not have the socio-technological anticipation of newer professionals; newer professionals may not have the experience needed to develop broad new business strategies. Each side is discovering they need each other. GLIMPSE AT CURRENT EMPLOYMENT TRENDS 46% CONTRACT 31% PART-TIME 32% FULL-TIME 54% FULL-TIME 14% FULL-TIME 7% PART-TIME 62PART-TIME % 49% CONTRACT 6% CONTRACT MOWinter2016.indd 64MOWinter2016.indd 64 1/22/16 2:20 PM1/22/16 2:20 PM
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- 8. Meetings Outlook is developed in partnership with VISIT DENVER. Meetings Outlook is supported in partnership with IMEX Group. Research conducted by Association Insights. 息 2016 Meeting Professionals International Explore and compare the latest and all archived editions of Meetings Outlook at www.mpiweb.org/MeetingsOutlook. 66 MPI MEETINGS OUTLOOK: 2016 Winter Edition ind its not as inexpen- sive or ef icient as you thought. The level of service makes all of the difference. Sometimes, the caution has prevented meeting organiz- ers from making needed investments in a meeting. White- head at Global Organization and Planning Services recently worked with a nonpro it client that made a series of com- promises that she felt hurt the inal quality of the event. For instance, the client said no to a backdrop that would have made the stage background look much better. It was frustrating, she says. It would have cost a little under US$1,000. We knew that without it, the stage area would not look good. Most of the attention would be in that area. The organizer expected the event to attract 150 attend- ees but it ultimately only pulled in 100, she says. With non- pro its, she notes, the event helps sell your organization. The level of the event can make or break whether people want to participate. For many meeting professionals, the challenge in com- ing months will be to balance concerns about lower spend- ing power with the need to take advantage of current op- portunities. Its not an easy one to tackle, but clearly, its an increasingly important one to master. ue to rise, the irm might reduce the list of attendees for whom it is mandatory to attend the irms global opera- tions meeting, she says. Typically, 75 to 100 executives attend. We would de initely review our list of who real- ly needs to attend more closely, now that expenses are risingand looking at the executive team going back and telling their team members about their ex- periences, as opposed to adding more attendees, she says. I think particularly as costs continue to rise, we will look at it and perhaps cut back on attendance. The active mergers and acquisitions market in many industries has also been raising questions in meeting professionals minds about what the fu- ture may hold for existing accounts. Thats the case at Freeman, which is actively planning for potential changes. Maybe we have companies we have tradition- ally worked with merging with other companies we are also working with, Walker says. Of course that brings about new questions about who is going to be in charge, who is going to be running their meetings and what meetings they are going to have us pro- duce. To prepare, Freeman has been working on put- ting continuity plans in place, he says. In the nonpro it sector, some meeting planners have found that their clients, feeling pinched in the current environment, are spending cautiously. Thats the case for Lisa Lipowski, CMP (MPI Ottawa Chapter), president of Curly Dog Communications, a healthcare conference management services irm. Lipowski has found that inancial support for meetings in the non- pro it sector has waned. The healthcare system is really, really suffering, she says. As a result, inding sponsorships for medical meetings has gotten tougher. Youve got to jump through more hoops from a sponsorship point of view, she says. Sponsors are very selective about what they choose to sponsor. Some of her clients have, as a result, asked to hold events at universities, rather than hotels. My experience has not been great, Lipowksi says. When you get into the nitty gritty of it, you can 33% TREND FORECAST of respondents say online collaborative, interactive learning is very important. PAULA A.KLINGER MPI Carolinas Chapter Corporate meeting planner at CommScope Inc. We would de鍖nitely review our list of who really needs to attend more closely, now that expenses are risingand looking at the executive team going back and telling their team members about their experiences, as opposed to adding more attendees. I think particularly as costs continue to rise, we will look at it and perhaps cut back on attendance. MOWinter2016.indd 66MOWinter2016.indd 66 1/22/16 10:58 AM1/22/16 10:58 AM