Kerrin MacPhie, chief executive of the mia reveals the latest findings from its sector surveillance and how its informing government departments to help direct future support.
As an association, the Meetings Industry Association’s (mia’s) role is to support our members while championing the sector to strengthen business and drive standards. Here at the mia, we’re also widely recognised for equipping members and the wider industry with key resources, information and guidance as well as developing initiatives and opportunities that enable organisations to develop their own strategies, plans and tactics.
However, while these forward-facing elements and benefits are often front-of-mind when members, prospective members and industry professionals consider an association’s role, our role continues to be so much more.
In recent years, the business meetings and events sector has faced an array of challenges, of which the collateral damage of some remain, while others are still arising and ongoing. It is when such eventualities occur that the duties of an association become even more imperative, providing the sector with representation, ensuring its voice is heard by the right parties and people.
Since being appointed as chief executive of the mia in November 2021, we’ve continued to work hard to reinforce our relations with government departments, providing pertinent counsel and representation behind-the-scenes.
I’m pleased to have established regular diarised meetings with the Department for Business, Energy and Industrial Strategy (BEIS), as well as the Department for Digital, Culture, Media and Sport (DCMS) to actively inform them of the state of the sector, its challenges and any proposed support it may be calling for.
Our regular insight surveys, which you may be familiar with, serve as a key tool aiding these discussions. They provide a valuable snapshot of the sector – reinforcing what is being directly faced by those working in business meetings and events and enabling us to escalate pressing priorities accordingly.
The findings
The latest findings from our January 2023 survey have revealed the extent of how the sector has been impacted by the industrial strikes, rising costs, recruitment challenges and more. While they provide us with optimism that demand is returning, they also demonstrate the significant damage and disruption caused by ongoing externalities.
Surveying over 125 event venues and suppliers, two-thirds revealed that their forecasted revenue for 2023 is more than that forecasted for 2022. Reflecting welcomed optimism, almost a third (27%) state that they have more confirmed business for the year ahead than they did at the same time in 2019, with a similar proportion (27%) having the same level of confirmed business as they did pre-pandemic.
While demonstrating great strides the sector has made in its recovery projections, we remain acutely aware of the impact of rising energy costs and how these may impact forecasts, particularly with the energy support scheme to ease from April. Our research has revealed that the sector has averaged a 13% increase in energy costs in the last six months, with more than three-quarters increasing their prices to mitigate this – most notably on F and B, DDR’s and room hire.
We also recognise and have highlighted the knock-on effects of recent industrial action and how this is not only impacting accessibility, but also consumer confidence once more. Almost all (94%) of the organisations we spoke to were affected by recent rail strikes, leading to vast event cancellations and postponements which resonate with trends of recent years.
Our findings revealed the total estimated value of cancelled business due to rail strikes to be £4,529,810, which can be scaled up to represent £337,326,277 across the entire sector. Similarly, when scaled up the estimated value of postponed business exceeds £552m.
While organisation’s will naturally be doing all they can to hold onto this business, with more than a third (36%) offering alternative dates at no additional cost, time-sensitive bookings won’t necessarily return, punishing venues through no fault of their own.
What’s next?
Once again, the vast insights we’ve gained have been imperative in reinforcing our understanding of the sector’s needs and priorities, any feedback that can be provided to us goes a long way in supporting our lobbying for necessary government intervention.
This research is also invaluable in highlighting emerging trends and steering the development of our resources, guidance and advice to members. Beyond assessing financial positions, it enables us to confirm what’s top of the agenda for organisations, with sustainability leading the way once more.
While nine in 10 (91%) organisations listed sustainability as a key part of its organisation’s business strategy, these are largely focused on areas such as waste management and reducing their carbon footprint. By comparison, the ‘people’ pillar of sustainability is less prominent, with a third of organisation’s not holding a dedicated wellbeing and mental health strategy.
Addressing this, we’re actively supporting knowledge and providing education by forming a partnership with Stress Matters to help our members make wellbeing a strategic priority. As a result, we are now able to offer our members mental health first aid training, a wellness manager programme as well as a series of informative events on management employee wellbeing.
We will continue to conduct our surveillance of the sector throughout the year to support our discussions with government and the development of our member benefits. Your feedback really is essential, we always welcome members and non-members to get in touch to find out more about the mia, our work and how we may be able to support you.
