Meeting News - September 21, 2009 - (Page 63)

News Insiders Sees Slow Industry Recovery Ahead continued from page 1 of the U, but starting on the upslope. We see some drop-in business coming for fall. By that I mean we had clients that were holding their budgets tight to the vest, but now decided to operate some programs this fall. This business is a much tighter timeframe now because we can all put on an event in a month. “We see a nice first quarter shaping up, probably not as strong as 2008, but much better than 2009,” Beauchine continued.“In the first quarter of 2009 is when the AIG effect really took effect. It was fourth quarter, lots of media bashing, and then first quarter, lots of cancellations.” A Meeting Professionals International and American Express bimonthly Business Barometer survey of more than 700 respondents released this month indicated that poor business conditions have continued since June, but in the next six months some respondents expect increases in the number of meetings booked. Twelve percent of suppliers and 7 percent of planner respondents indicated an improvement in current booking activity, while just 1 percent and 2 percent reported a decrease, respectively. BCD Meetings & Incentives executives said that 2010 meetings budgets largely would be flat compared with 2009. The companies planning increases are those holding meetings around mergers and acquisitions or product launches. “For the foreseeable future, every company is very financially responsible. They are evaluating every program and ensuring there is a reason behind the meeting and that they will get some return element before they move forward,” said Dave Sonricker, BCD senior vice president of MICE for the United States and Mexico. Wyeth Pharmaceuticals associate director of global congress and convention management Nancy Hoppe expects similar meetings spending levels next year in the United States. Internationally, however, Hoppe said the company might spend about 10 percent to 15 percent more than in 2009 because many of its major conventions occur in even-year cycles. Maritz vice president of channel management Rhonda Brewer said budgets are loosening slightly and anticipates an overall increase over 2009 levels. “It’s a slow uptick,” she said. “People are still very cautious about where things are www.meetingnews.com Lomanno, however, said the firm would watch group travel results closely this month to look for unexpected signs of a quicker recovery. Gaylord Hotels senior vice president of sales going to go. They may have a budget, but it may Mike Mason said he’s seeing companies that cannot be as dynamic as it was in the past.” celed meetings in the first half of the year reinOne association meeting planner, responding state them. While he expects 2010 to be similar to an International Congress & Convention to 2009 on a larger economic scale, he said comAssociation and meetings and incentive travel panies might move toward former meeting levels exhibition IMEX survey released this month (see in preparation for the eventual recovery. story, page 8), said, “Our association meeting “I’m not sure if the light at the end of the tunattendance is down 22 percent in 2009. We antic- nel is sunlight or not, but there’s a sense we have ipate a similar decrease in 2010 of between 15 that there’s a loosening, and our customers are percent and 18 percent.” The association planner able to talk more about planning meetings,” expects attendance to not “return to normal lev- Mason said. “There’s still a lag in making deciels” until the second quarter of 2011. sions and getting contracts signed, but the front Major factors contributing to flat or lower end of the process seems to be moving much spending expectations include deep hotel and smoother than it was 45 days ago.” meeting venue discounting and concessions. “2010 is the year to get the oar back in the This month, lodging industry data supplier water,” Carlson Marketing’s Beauchine said. Smith Travel Research reaffirmed its forecast of “Hotels are willing to structure more flexible continued occupancy, revenue and rate declines attrition clauses and more flexible cancellation for the U.S. lodging industry through 2010, penalties. If demand for 2010 is higher than ‘09, despite slight signs of but lower than ‘08, as long recovery seen in July. as the supply-demand The research firm proequation remains where jected a full-year average the supply is larger than daily rate drop of 9.7 perthe demand, you are going cent this year, a 17.1 perto see good deals.” cent drop in revenue per Global Conference available room and an 8.4 Associates president Jim percent drop in occupancy, Fausel Jr. said the deals and it expects those drops seen in 2009 will carry to continue, albeit more throughout 2010 as meetmodestly, in 2010. Even ing venues try to attract though July showed signs those looking for value of recovery, with gains in during the demand slump. weekend leisure demand, “It has lessened the Smith Travel Research bridge between supplier, industry research manager the planner and compaChad Church said there ny,” said Fausel, who was no reason to alter those added that the increase in Carlson Marketing’s Fay Beauchine expectations. advance bookings are for “It seems that November 2009 would be our events beyond 2010, as well. “Gone are the days best opportunity to see demand move into flat that this is the price, take it or leave it.” or positive territory, but that’s more a function Egencia Meetings & Incentives director of of the comparison to large demand losses in North America Debbie Grossi said, “Hotels are 2008 than true demand growth,” Church said on trying to hold strong and clients believe the STR’s HotelNewsNow Web site. longer they hold off, the more the hotel will fold Demand might take a further hit if unemploy- and reduce the pricing. It’s hard to come up with ment numbers do not improve or if the swine flu that happy medium.” H virus has a significant impact on travel, said Jay Boehmer and Michael B. Baker contributed Church. Smith Travel Research president Mark to this story. September 21, 2009 MeetingNews 63 http://www.meetingnews.com

Table of Contents for the Digital Edition of Meeting News - September 21, 2009

Meeting News - September 21, 2009

Contents
Pricing Forecast
Newsmaker
Meetings Spotlight
Event Profile

Meeting News - September 21, 2009

Meeting News - September 21, 2009 -

Meeting News - September 21, 2009

(Page Cover1)
Meeting News - September 21, 2009 -

Meeting News - September 21, 2009