Slide 1
HelmsBriscoeMeeting Industry Trends2011September 10, 2010
Agenda
HelmsBriscoe OverviewMarket ConditionsKey Meeting Industry
TrendsQ&A
HB By the NumbersThe largest meetings procurement firm in the
world
Contracted >$1.1 billion in group room revenue over the past
2 yearsPlaced over 6.5 million room nights over the past 2
yearsContract over 21,000 meetings annuallyAnnually delivers more
than $1 billion in gross meeting spend to the hospitality
communityGlobal presence with 1,150+ associates in over 35
countriesBusiness Mix:72% Corporate/Incentive18% Association10%
Government/Other
Cancun Production
% Revenue Per City
Destination PartnerCancun is a Preferred Partner with
HelmsBriscoeAs of July, 2010 December, 2011Unique access to
associatesExposure via marketing, events & educationHost of
MOMs conference November, 2010HBs ABC in January, 2011January 5-7,
2011 - Gaylord National
Market Conditions
All this can mean a lot of pain and frustration8
Contrary to popular belief, the global economy is in
recovery
Source: Oxford EconomicsGlobal GDP ChangeGDP has rebounded
around the world
Source: Oxford EconomicsGlobal Private Consumption ChangeAnd
consumers are buying more
Source: Oxford EconomicsRetail SpendingMonthly--Last Six
MonthsIndexed to 2007Total retail spending now at pre-recession
levels, except in Japan and the US.
2007 Level
Source: Oxford EconomicsBusiness ConfidenceLast Six
MonthsYear-Over-Year ChangeBusiness confidence continues to rise
while its rate of growth has slowed considerably
Global Industry RevPAR ChangeConstant USDYear-Over-Year
ChangeHotel performance is on the rise & increasing occupancy
is driving recoverySource: STR Global; Smith Travel Research
14
Source: STR Global, Smith Travel Research Occupancy By
RegionJuly YTDLast Four Years (2007 2010)Butoverall occupancy is
still well below pre-recession levels
Source: STR Global, Smith Travel Research Occupancy By Selected
CountriesJuly YTDLast Four Years (2007 2010)Most key countries have
increasing occupancy, but most well below 2007
US OccupancyJuly YTDLast years US occupancy was the lowest since
the early 1970sSource: PWC; Smith Travel Research
17
US Industry Rooms SoldLast Three Months Ending July YTDThe US
has sold about the same number of rooms as it did prior to the
recessionSource: STR Global
18
Global Industry Average Rate ChangeConstant USDAfter declining
for a record 17-monthsaverage rates are beginning to riseSource:
STR Global
19
Source: STR Global, Smith Travel Research Average Rate By
Selected CountriesJuly YTDLast Four Years (2007 2010)Average rates
are still depressed in most countries
Source: Smith Travel Research Global Industry Performance By
Industry Segments Last Three Months Ending July 2010
Over the last three months, nearly all segments posted gains in
average rate 15.5%9.8%10.6%7.4%6.5%4.6%
21
Source: Smith Travel Research Global Industry Occupancy By
Industry Segments Last Three Months Ending July 2010
Occupancy has been strong across most segments, especially over
the past three months
22
US Upper Tier Demand Change By Consumer Segment28-Day Moving
AverageThe growth in demand is the result of increasing transient
and group businessSource: Smith Travel Research
23
US Upper Tier Average Rate Change By Consumer Segment28-Day
Moving AverageAverage rate is now rising for both group and
transientSource: Smith Travel Research
24
Source: Smith Travel ResearchOccupancy By Selected MarketsLast
Three Months Ending July 2010
The last three months have seen many key cities at near sell-out
levels
25
Source: Smith Travel ResearchAverage Rate Change By Selected
MarketsLast Three Months Ending July 2010
In the last three months, nearly all key cities had an increase
in ADR
26
Outlook
27
The road ahead is still likely to be rough
Global and US leading indicators have flattened or declined -
soft patch ahead
Economic Leading Indicators
Source: Global data from Organization for Economic Cooperation
and Development (OECD); US data from Economic Cycle Research
Institute (ECRI)
Not surprisingly, travel intentions also appear to be
slowing
US Travel IntentionsDiffusion Index, 4-Week Moving
AverageSource: US Travel Association
Source: Oxford EconomicsGDP ChangeAnnual Percentage
ChangeEconomic growth is expected to strengthen in 2011 and
2012
31
Summary
Occupancy levels remain weak around the world but improvingADR
is beginning to recoverContinued volatility of airline industryA
more difficult second half of the year may be in storeA 1 in 4
chance of a US double-dip recessionOdds are greater for another
European recession Solid overall long-term economic and industry
recoveryStronger 2011Much stronger 2012
32
Key Meeting Industry Trends
General Industry TrendsShorter meeting length of stayShorter
booking windowsIncrease of multi-year contractsLarger cities
stealing share from smaller citiesAggressive destinations buying
conventionsInternational SubventionsGrowth of 3rd Parties The Big
Three = $2 billion+ meeting spendGreening of meetings impacting
buying decisionsCorporate social responsibility impacting buying
decisionsTechnology resources and accessPrevalence of social
technology use at meetingsStreaming videoInternet access
Corporate &Incentive Segment TrendsShift to Strategic
Meeting Management/ProcurementMaxvantage = Amex + MaritzExperient
HelmsBriscoeIndustry focus on SMM NBTA, PCMA, MPIShorter booking
windowsSmaller incentive meetings with less flashMore individual
incentives vs. groupAIG affect still alive but waningFocus on
ROI/ROO/ROMSecurity is a BIG issue
Association Segment TrendsDeclining Membership - Lack of Growth-
Decreased Retention- Impact of generationalsReduced Attendance at
MeetingsFocus on bottom lineReduced sponsorshipDeclining exhibitor
attendanceRedesign of exhibition formatsShorter/smaller
showsAppointment drivenHosted buyer modelIncreased outsourcing of
core servicesSecurity is an issue
36
Tradeshow Trends
2010 Exhibitor Trends Survey Champion Exh. Scvs.81 percent of
exhibitors sending fewer staff to trade shows, reducing the number
of events as well as downsizing booth space Exhibitors are adopting
and seeking new engagement points from show organizers including
year round promotion, virtual events, and online tools for
attendees While impact of the recession has been far reaching,
exhibitors remain committed to trade shows, and are planning to
increase trade show investments when the economy
recoverswww.championexpo.com
37
Tradeshow Trends
Niche shows and hosted buyer/appointment driven shows on the
rise i.e.:Connect (Association)Rejuvenate (Religious)TEAMS
(Sports)New shows AIBTM June, 2011 BaltimoreIMEX AM October, 2011
Las VegasIT&ME future in doubtNBTA more group & procurement
focus (SMM)MPI tradeshows in fluxIncrease in co-locations i.e. PCMA
& AIBTMMPI & IMEX AM
38
Meeting Planners Intention Survey June
There is a net increase in the number of off-site meetings
planners' expect to book in 2010 and 2011 versus 2009There is a net
increase in expected attendance at off-site meetings in 2010 and
2011 versus 2009 Professional meeting planners are less concerned
about the negative publicity associated with hosting meetings in
upscale properties/destinations, although there is still a palpable
level of concern about booking resorts and cruise ships.
39
Potential Intl. Destinations
40
Meeting Planners Intention Survey
www.pcma.org/Resources/Research/MeetingPlannersIntentionsSurvey.htm
41
Q & A
42
David [email protected]
you
43
Chart13302000378300018940001278000
Revenue
Sheet12007200820092010
YTDRevenue$3,302,000$3,783,000$1,894,000$1,278,000Programs47552611Category
33.51.83Category 44.52.85To resize chart data range, drag lower
right corner of range.
Chart10.450.250.250.220.220.190
Convene Planners Survey 2010Canada45%UK25%Mexico25%W.
Europe22%Caribbean22%Asia19%
Sheet1Convene Planners Survey 2010Canada45%UK25%Mexico25%W.
Europe22%Carribean22%Asia19%To resize chart data range, drag lower
right corner of range.
