Grass Roots HBI’s annual Meetings Industry Report (MIR) is delivered in an app format for 2012.
The
sixth MIR 2012 indicates the outlook for the meetings industry in the
UK remains positive for the second half of 2012, with like-for-like
meeting spend in 2012 up four per cent in the first quarter compared to
last year.
The new report also highlights that much of the
meetings growth is expected to come from training, with the average UK
24-hour rate expected to reach £230 + VAT by the end of 2012.
The
Grass Roots client survey, contained in the report, reveals the biggest
challenge facing over 100 companies surveyed is cost reduction.
Securing delegate attendance was ranked second and securing internal
meeting space third.
The new app means the MIR can be updated
regularly to provide quarterly summaries of industry research combined
with GRG’s own data on hotel room rates and venue launches.
The move from print to app also saves Grass Roots £80,000 in print costs, according to MD Des McLaughlin.
While
the UK has an established events industry marketplace, McLaughlin’s
team predicts the US is hot on its heels and that it is likely to see
key trends filtering across the Atlantic. Asia has been slow to adopt a
strategic approach to managing meetings but is now beginning to examine
event spend, according to the report.
McLaughlin said 2011 proved to be a much stronger year for the meetings and event sector than many predicted.
“The
first half of 2012 has been solid,” he said, “if not as spectacular as
2011 and we would hope for similar patterns to continue in the second
half of the year. Given the fragile global economy, however, a further
downtown would undoubtedly have a negative impact on the meetings
industry.”
He added: “The Jubilee and Olympics are very much
double edged swords for the meetings industry. While these events
further enhance London’s reputation as a leading meetings destination,
and will undoubtedly generate business in the mid to long term; in the
short-term we are seeing companies avoiding holding meetings in the
capital while these events are taking place.”
Sales Director
David Taylor added that LOCOG had “messed up” the hotel inventory
stock placed with it according to the London Visitor Charter. What had
been given back was not necessarily enough for the meetings market,
Taylor believed.
“The Government encouraging people to work from
home if possible during the Olympics had not been good for giving
confidence to those keen to stage events in the capital,” McLaughlin
added.
Summary figures from MIR 2012 also included total Grass
Roots client meetings spend increasing by 14 per cent in 2011 compared
to the previous year, despite research in late 2010 indicating that
companies thought spend levels would remain static at best.
The
number of international meetings booked increased by five per cent in
2011 suggesting the ‘green agenda’ has yet to really filter through and
influence the meetings industry, the report noted.
Consolidation of
meetings spend remains a strong theme, with clients continuing to focus
their spending with fewer suppliers in 2011 than in 2010.
Training
centres continue to be a popular choice, MIR 2012 noted, with bookings
increasing by almost a third (27%). The training centre product
offering, coupled with highly competitive pricing, seems to meet with
the current corporate sentiment.
Graduate training programmes are
one of the few areas to have bucked recent trends with the average
programme value falling 18 per cent in 2011 and it is projected to fall a
further 10 per cent in 2012. The fall, according to Grass Roots, can be
explained by a number of factors, including lower recruitment levels,
shorter programmes and more internal training.
One investment
bank client, GRG said, had moved a large graduate training programme
from London to New York for 2012 as a result of London 2012.
Grass
Roots Global Supply Chain Director Alan Newton said statistics on
rising day delegate rates (DDRs) in the UK five-star market in the South
East showed a 12 per cent increase in 2011. This Newton contrasted with
a 13 per cent drop in DDR in the four-star market in the North West of
England. “If I were a weatherman I would say it would be a mixed
meetings outlook with some sunny spells,” said Newton.
He also
pointed to dynamic Asian markets. In Shanghai MIR identified a 21 per
cent rise in room rates, with Singapore and Sydney recording double
digit rate growth in the mid- market hotels.
However, rates in Greece were dropping, Newton noted, “by as much as 19 per cent in the five-star hotel rate category”.
In the Americas, Montreal led the way in terms of percentage rise in room rates, up 34 per cent in 2011.
“The
meetings market has been written off several times, yet the core
business for Grass Roots HBI remains strong with investment banks and
accountancy firms,” McLaughlin noted.
“Quarter one 2012 has been above target, although Q2 has seen a dip. We expect a dip in Q3 with a strong finish for Q4.”
Last
year Grass Roots HBI grew its revenue by around 30 per cent and Taylor
said the division was looking to expand further into European markets.
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To show stopping content… and beyond
MIR
2012 contains many expert insights, including from Ben Atherton , Cisco
London 2012 Programme Manager, Customer Hosting: “The Olympics will
leave a long tail for the events industry. The Paralympic Games, in
particular, will showcase Britain at its best. Corporates will use the
core values of the Paralympics within their event activity during 2012
and beyond.
“Venues need to step up their offer and invest in enhanced connectivity if they wish to remain competitive.
A
change in attitude towards ubiquitous broadband at many of the larger
venues will filter down through hotels and smaller meetings venues. As a
corporate, I expect my chosen hotel
to recognise the investment I’m
making in staging my event there. In return, I expect them to take
their technology infrastructure seriously and charge a sensible price. I
don’t expect to have to pay one price, only for my delegates to then be
charged an additional cost for logging on in their bedrooms.
“Show-stopping
conference content will become the norm. Holographic presenters and
theatrical production techniques will increase. Corporates will rely on
social media to set the event agenda and maintain the correct tone
throughout the event.
The number of event apps will grow quickly and digital audience engagement will become an integrated part of event planning.”
This was first published in the June edition of Conference News. Any comments? Email conferencenews@mashmedia.net
