Economic recovery, inflation and rising business costs are the biggest challenges for today’s conference and events industry, according to a survey conducted by PwC, the Hotel Booking Agents Association (HBAA) and Conference Centres of Excellence. Procurement and the process were also cited as key obstructions to business growth in 2013.
Completed by 80 agencies and venues, the survey sought to gauge the industry’s trading outlook for the remainder of 2013 and 2014.
Confidence appears to be on the up, with 86 per cent of respondents claiming to be ‘more optimistic’ than six months previously. However, 81 per cent of the surveyed businesses listed weak economic growth as one of the three biggest obstacles facing their trade, while inflation and rising business costs was a key issue for 49 per cent of companies.
A further 32 per cent of survey respondents chose ‘structural issues’ such as changes in meeting trends as one of the biggest obstacles, and 20 per cent selected technology-based issues. Other concerns included over-supply and price discounting, location, weak regional economies, attracting talent, and short lead-in times. It was also stated that increased competition from ‘secondary stream’ venues whose core business is the provision of leisure facilities has resulted in ‘unrealistic’ and ‘unmatchable’ rates.
Yet optimism in trading for the remainder of 2013 remains high, with 83 per cent of those surveyed being ‘more optimistic’ about the rest of the year, and 80 per cent of businesses feeling similarly about trading in 2014.
Juliet Price (pictured), Executive Director of the HBAA, said: “The economy has dominated the thoughts and worries of the event industry in the last half-decade, and although it remains a concern, it’s great to see that as a sector, we are becoming more optimistic about the future of business trading. The survey results are especially important in understanding where the concerns of our members lie so that the association can offer support and look for solutions accordingly.”
Liz Hall, Head of Hospitality and Leisure Research at PwC, said: “While it’s still early days in any economic recovery, we are cautiously optimistic about prospects. Business travel should benefit from improved confidence and the economic pick-up: positive signs for conference and meetings venues.”
Conference Centres of Excellence’s Executive Director, Anthony Lishman, added: “Our venues have been listening to the changing needs of clients and adapting accordingly. Maintaining a strong focus on the overall customer experience will remain top priorities into 2014.”
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