Upload
laurel-clarke
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
AIPC 2009 AIPC 2009 Industry Outlook Industry Outlook SurveySurvey
Presentation to AIPC Annual Presentation to AIPC Annual Conference A Coruna, July Conference A Coruna, July 20092009
Today’s Presentation:Today’s Presentation:
Results of the 2009 surveyResults of the 2009 survey Comparison with other recent Comparison with other recent
industry researchindustry research Some major issues to watch going Some major issues to watch going
forward forward
Number of AIPC memberNumber of AIPC membercentres participating in the surveycentres participating in the survey
64.12% 35.78%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Has your business increased Has your business increased or decreased over the past year ?or decreased over the past year ?
16%
52%
84%
48%
0% 20% 40% 60% 80% 100%
2008
2009
Increase Decreased
More or less confident of business More or less confident of business prospects in 2009 than 2008 at this time?prospects in 2009 than 2008 at this time?
12.00%
46.00%
42.00%
58.00%
7.00%
35.00%
0% 20% 40% 60% 80%
Less
More
Same
2008 2009
Reasons for Reduced Confidence:Reasons for Reduced Confidence:
Bookings downBookings down Attendance offAttendance off Reduced spending, space, F&BReduced spending, space, F&B Further anticipated impacts of Further anticipated impacts of
recessionrecession Clients using alternativesClients using alternatives Multiple impediments to travelMultiple impediments to travel
Changes in business attributed to the global economic crisis?
18.90%
19.20%
16.80%
16.10%
15.20%
13.80%
0% 5% 10% 15% 20% 25%
Delays in booking / contracting
Tougher negotiations with clients
Reduced spending by clients
Changes in food and beveragerevenues
Reduced attendance
Event cancellations
Challenges over the next three years: Challenges over the next three years: owner’s perspectiveowner’s perspective
20,8%
18,9%
16,9%
16,6%
22,7%24,50%
26,20%
18,70%
15,50%
15,10%
0% 10% 20% 30%
Reviewing management of the centre
Reviewing governance of the centre
Reviewing financing of the center
Changing revenue expectations
Higher expectations for increasedprofitability
2008 2009
Challenges over the next three years: Challenges over the next three years: market perspectivemarket perspective
20,0%
17,0%
17,0%
16,2%
14,4%
13,3%12,60%
9,70%
13,50%
13,60%
11,60%
13,90%
0% 10% 20% 30%
Reduced attendance at events
Greater influence by PCO's andassociation management companies
Client reluctance to pay for extra services
Downward pressure on rental rates
Greater concern about substainability /environmental issues
More competition from other centers
Challenges over the next three years: Challenges over the next three years: internal perspectiveinternal perspective
24,9%
13,1%
17%
20,1%
22,2%
25,20%
14,70%
17,20%
26,30%
16,60%
0% 5% 10% 15% 20% 25% 30%
Need for training
Labour disruptions
Labour shortages
Increasing government regulation
Increasing operating costs
2008 2009
Types of business expected to Types of business expected to increase / decrease:increase / decrease:
17%
27%
8%
15%
20%
9%
31%
49%
36%
29%
12%
43%
39%
26%
27%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Entertainment / sports
Consumer events
Trade exhibitions
Associationconventions
Corporate meetings
Increase Decrease Same
Where do you see the best Where do you see the best opportunities for revenue growth?opportunities for revenue growth?
27,2%
24,7%
6,6%
13,3%
24,7%
8,20%
9,80%
18,30%
19,90%
23,10%
0% 5% 10% 15% 20% 25% 30%
Retail (if applicable)
Parking (if applicable)
Space rental
F&B
Event services
2008 2009
Initiated significant new developments in Initiated significant new developments in operations / marketing over past year?operations / marketing over past year?
20,0%
17,6%
15,2%
14,8%
13,1%
10,3%
8,3%9,13%
9,89%
12,17%
14,07%
14,83%
18,25%
19,77%
0% 10% 20%
Obtained any form of operating certification
Obtained a substainability / environmentalcertification
Developed new or enhanced community /government rel initiatives
Lauched major new market initiatives
Developed quality standards program / taskforce
Created new staff training / professionaldevelopment initiatives
Developed / enhanced substainability /environmental policies / programs
2008 2009
Planned Actions to Address Planned Actions to Address Challenges?Challenges?
Greater client interaction / servicingGreater client interaction / servicing More intense marketing effortsMore intense marketing efforts Price / service flexibilityPrice / service flexibility Packaging / discountsPackaging / discounts Diversify marketsDiversify markets Expense control (including staffing)Expense control (including staffing) Produce own eventsProduce own events
Analysis:Analysis:
Business impacts finally apparentBusiness impacts finally apparent Confidence has dropped significantlyConfidence has dropped significantly Worst is likely yet to comeWorst is likely yet to come Corporate business impacts are greatestCorporate business impacts are greatest Revenue, client management bigger Revenue, client management bigger
issues than outright cancellationsissues than outright cancellations Training need greatest single challengeTraining need greatest single challenge No specific growth opportunities No specific growth opportunities
Analysis (cont’d):Analysis (cont’d):
Significant variation (some actually Significant variation (some actually increased business), based onincreased business), based on– Different countriesDifferent countries– Business mix / diversificationBusiness mix / diversification– Local business conditionsLocal business conditions
Innovation, diversification key, but…Innovation, diversification key, but… Centre initiatives largely unchanged Centre initiatives largely unchanged
(sustainability still highest) (sustainability still highest)
Other Industry Surveys are Other Industry Surveys are Showing….Showing….
Combination of impacts from economic Combination of impacts from economic conditions, image concernsconditions, image concerns
Corporate, incentive hit hardest (about Corporate, incentive hit hardest (about half expect decreases in activity)half expect decreases in activity)
Associations are struggling, but Associations are struggling, but outright cancellations less frequentoutright cancellations less frequent
Attendance, event spending reducedAttendance, event spending reduced
Other Industry Surveys are Other Industry Surveys are Showing….Showing….
Exhibitors have cut events, space, Exhibitors have cut events, space, participationparticipation
Renegotiation of contracts anticipated Renegotiation of contracts anticipated Increasing use of meeting alternatives Increasing use of meeting alternatives
(webinars, teleconferencing)(webinars, teleconferencing) Competition continues to grow but at Competition continues to grow but at
reduced levelsreduced levels
Government Reactions Government Reactions Typically Typically Counterproductive:Counterproductive: ““Politics of fear” trump logicPolitics of fear” trump logic Don’t understand the economic Don’t understand the economic
development / recovery connectiondevelopment / recovery connection Meetings cancellations, travel Meetings cancellations, travel
restrictions imposed in many areasrestrictions imposed in many areas Promotional budgets cut at worst timePromotional budgets cut at worst time Capital projects cancelled even Capital projects cancelled even
though time right for constructionthough time right for construction
Looking Ahead:Looking Ahead:
Four issues to keep an eye on:Four issues to keep an eye on: The attendance factorThe attendance factor The client relations imperative The client relations imperative Evolving destination rolesEvolving destination roles Our new “image problem”Our new “image problem”
The Attendance Factor:The Attendance Factor:
Attendance threatened by economic, time, Attendance threatened by economic, time, sustainability factorssustainability factors
Obscures the Obscures the realreal impact of downturn impact of downturn A shared concern / opportunity with clientsA shared concern / opportunity with clients Demands action, including:Demands action, including:
– Attendance buildingAttendance building– More pre / post promo / packagingMore pre / post promo / packaging– Enhanced content and perceived valueEnhanced content and perceived value– Measurability of meeting outcomes Measurability of meeting outcomes
The Client Relations The Client Relations Imperative:Imperative:
Clients are challenged by attendance, Clients are challenged by attendance, financial, resource issuesfinancial, resource issues
Tougher negotiations, renegotiations Tougher negotiations, renegotiations Price, contract, payment issues at stakePrice, contract, payment issues at stake A new “partnership attitude” neededA new “partnership attitude” needed Opportunity to demonstrate shared Opportunity to demonstrate shared
interest; build stronger relationships for interest; build stronger relationships for the futurethe future
PCO interface may need greater focusPCO interface may need greater focus
Destination Relations Destination Relations Evolving:Evolving:
Hotel equation has shiftedHotel equation has shifted Owner expectations need Owner expectations need
adjustmentadjustment Need to emphasize broad Need to emphasize broad
economic impacts, role in recoveryeconomic impacts, role in recovery CVB relations need re-examinationCVB relations need re-examination May have to distance centres from May have to distance centres from
leisure messagingleisure messaging
The Image Issue:The Image Issue:
Pharma-codes started the processPharma-codes started the process Bailout funding accelerated itBailout funding accelerated it Negative image resonated with publicNegative image resonated with public We contributed with leisure messagingWe contributed with leisure messaging 50% of US corporations now see “non-50% of US corporations now see “non-
financial risks” to holding events financial risks” to holding events Need to “re-image” meetingsNeed to “re-image” meetings Also requires enhanced content, better Also requires enhanced content, better
value , measurable outcomesvalue , measurable outcomes
AIPC 2009 AIPC 2009 Industry Outlook SurveyIndustry Outlook Survey
Presentation to AIPC Annual Presentation to AIPC Annual Conference A Coruna 2009Conference A Coruna 2009