The future of… global meetings & events
Explore the opportunities and challenges for the meetings & events industry in 2020 and beyond
Globally, the meetings and events industry is estimated at $840 billion, and growing. It is a time of rapid innovation in technology, economic investment, and advances in sustainability. While we see some signs of economic uncertainty around some major European markets, causing a contracting of lead times. The potential instability caused by the UK's exit from the EU is heightening as the divorce date approaches at the end of October. However, overall there is steady growth.
The bigger markets such as the US, Europe and Asia are driving most of that demand, and it is expected emerging markets, such as India and China, will see more dramatic growth in the years to come as they continue to be brought into centrally-managed programs, especially with populations motivated by travel, events and training.
The overall growth trajectory in the meetings and events industry is rising at a steady 8% rate, which is encouraging.
Derek Sharp, Senior Vice President and Managing Director, CWT Meetings & Events
"With increasing recognition of the crucial role that meetings and events play in the success of a business, attention is being paid to overall spend," says Derek Sharp, Senior Vice President and Managing Director, CWT Meetings & Events. “We expect significant growth in the next five to ten years in supporting multinational companies needing services in those markets which have a huge untapped potential,” he forecasts.
Ian Cummings, Vice President, EMEA, CWT Meetings & Events, adds that companies have realized the way to cut through all the social media noise is to hold face-to-face events. “We see approximately 25-30% of overall marketing budgets being spent on live events,” he says.
CWT’s data shows a rapid expansion in the numbers of event websites being created, up 52% year-over-year, while the number of mobile apps created has more than doubled since 2017. “The meetings and events business will look very different in three years with huge changes, particularly around digitalization,” adds Saskia Gentil, Vice President, Global Sales, CWT Meetings & Events.
The opportunities around machine learning and artificial intelligence abound, with businesses in the wider marketing space already taking advantage of the burgeoning technology to create content. Combining creativity with machine learning could allow for more effective events content, while the rollout of 5G means faster connections for attendees.
Responsible business
A key trend for 2020 is environmental, economic and social sustainability. One of the key trends for 2020 is sustainability, from an environmental, economic, and social perspective. While images of the Amazon rainforest fires have brought sustainability issues to the fore, in 2020 the focus is on extending the concept to cover diversity and inclusion, modern day slavery, and even data privacy.
“There is a trend towards the idea that events should do more than just educate or have a business development opportunity, but also to create good for communities globally,” says Jessie States, Director of the MPI Academy at Meeting Professionals International. “It is more than just being an add-on, it is about the entire experience. Big brands are making a statement about what they stand for, and ultimately it is the consumer demanding it.”
Average air and hotels prices are projected to rise slightly in the coming year.
Air prices are expected to increase by 1.2% (in USD) on average worldwide, though regional variations show that prices will vary between -1.6% and 2.3% across Asia Pacific, the Middle East & Africa, North America, and Latin America.
Meanwhile, Europe will see prices remain steady, with a small 0.5% gain in Western Europe, while Eastern Europe is expected to experience a 0.2% dip. In Latin America and the Caribbean, however, air prices are forecast to fall by 1.6%, mainly driven by contraction in business, continental and domestic rates.
Hotel accommodation is experiencing a similarly small, but notable, expansion in pricing of 1.3% (in USD) on average across the globe.
Reflecting conditions in air travel, the greatest price increases will be felt in the Middle East, Africa, and North America. Overall, only Latin America and the Caribbean are forecast to see a regional price reduction, with prices across Europe increasing by an average 0.7%.
The dismantling of the commission model that took place in the airline world is happening in the hotel space, and we have to be ready for a world where commission goes to zero.
Derek Sharp, Senior Vice President and Managing Director, CWT Meetings & Events
Global 2020 air and hotel price projections
Source: CWT – GBTA –Rockport Global Travel Price Forecast
Safety and security is a top priority
Meetings arrangers are taking security and safety more seriously as an issue but this isn’t stopping them from being more adventurous with their choice of destinations. This is having an impact on how they manage safety and security
Aditya Luthra, Security Consulting Director, Asia, at International SOS, says, “More events are going to more remote tier two and three cities where access to medical care may be subpar and sub-standard, and the security environment could be more volatile.”
To prepare for these risks, medical and security risk services firms, such as International SOS, provide clients with pre-travel risk assessments to decide if the destination is suitable to host the event. This covers not just the event venue and offsite activities venues, but also “vicinity” risks, such as any crime “hotspots” near the hotel that attendees should be advised about, or any risks associated with traveling between different event venues.
“Every location is assigned a risk rating – from low risk to extreme risk,” explains Luthra. “This covers both medical and security issues. It’s important to have access to accurate and timely information and advice, and also having an accurate understanding of the potential exposure to the event."
There is an increased focus on safety, security and risk. Event organizers want to ensure attendees are protected at meetings. If they are bringing a large group of people to a destination they want to know what their exposure to safety and security risks are. Clients are more attuned to these risks than before. They are making sure they have contingency plans in place.
Sam Lay, Senior Director, Asia Pacific, CWT Meetings & Events, Asia Pacific
The future of… events and local trends
A snapshot of the meetings and events industry by region
Global outlook
The meetings and events market is an increasingly globalized space, with growing consistency around how face-to-face programs are planned and delivered.
Whether you are in Boston or Bogota, London or Lagos, trends around attendee experience, technology, sustainability, security and creativity are aligning for a uniform approach.
But each region has its own unique demands, pressures and innovations, from the ripples of political changes in Europe and Latin America, to the fast-moving tech environment in the US and China.
There is enormous learning potential for a global business in pinpointing exactly where and what changes are taking place.
Demand still rising
Overall demand for meetings and events in North America is continuing to increase, but the pace of growth has fallen.
More than ever, political events have a direct impact on more than ever on companies’ quarterly and annual outlooks. Some industry segments are pulling back, such as agriculture because of the trade situation, and are being a bit more cautious.
Tony Wagner, Vice President, Americas & South Pacific Regions at CWT Meetings & Events
Despite these headwinds, the US economy continues to be strong with event sizes rising, including many companies in the tech sector that have moved to consolidate their smaller meetings into larger events.
Rebalancing act for buyers and suppliers
In recent years, buyers have been on the back foot in their negotiations with suppliers due to tight inventories.
But there are signs this is changing thanks to new supply in the US. This can potentially give clients more leverage in 2020 to secure improved rates from hotels and venues, which can relieve the feeling that event owners must rush to source.
Worries about the global economy and potential trade wars may also be having an impact on booking times.
Suppliers are seeing much shorter booking windows with small groups (of up to 50 people) down to 30 days. Larger events previously being booked six months in advance are now seeing booking windows of three months.
Nathan Brooks, Global Lead, Supplier Management, CWT Meetings & Events
Secondary cities in focus
Destinations such as Nashville and Austin are rising in popularity thanks to new hotels, venues and a strong cultural appeal.
Rates continue to rise in Seattle due to strong demand and tight capacity, with the city fast becoming “the new San Francisco.”
Meanwhile, Austin has also seen a material increase in properties that cater to the upscale and the luxury market place.
Nashville is really in demand because of new properties as well as a vibrant entertainment scene –it’s built for events.
Tony Wagner, Vice President, Americas & South Pacific Regions, CWT Meetings & Events
New innovative venues in North America:
Jacob K Javits Center, New York
The Manhattan convention center is undergoing a $1.5 billion expansion increasing its size to 3.3 million square feet, including adding an extra 22,000 square feet to the city’s largest green roof overlooking the Hudson River. Expansion will be completed by 2021.
Caesars Forum, Las Vegas
In March 2020, Caesars Entertainment will be debuting Caesars Forum, a new 550,000-square-foot conference center, located at the center of Las Vegas Strip. It will have over 300,000 square feet of flexible meeting space with the two largest pillarless ballrooms in the world at 110,000 square feet each.
San Diego Convention Center
The citizens of the Southern Californian city will get to vote on whether to approve a major expansion of the San Diego Convention Center in March 2020.
Source: CWT Global Data Aggregation - FY2018 – June 2019
Destinations on the rise in North America
Destinations on the rise are locations offering better value rates than first-tier cities. They are also becoming more attractive due to an increase in facilities including new hotels and M&E venues.
Meetings and events by numbers in North America
CWT Global Data Aggregation - FY2018 – June 2019
Election fever grips the region
Latin America’s two biggest economies have undergone an electoral tempest as right-wing former army captain Jair Bolsonaro broke the Workers’ Party’s four-election winning streak in Brazil, while leftist populist Andrés Manuel López Obrador enjoyed a landslide victory in Mexico.
However, an explosion in growth is predicted for 2020-21 as activity is unleashed following the hiatus.
Gustavo Elbaum, Senior Director, Latin America, CWT Meetings & Events
Argentina faces its own presidential elections at the end of the year. A weakening Argentinian peso ahead of the referendum is encouraging international bookings into the country.
The evolution of Panama
As one of the fastest growing economies in Latin America—with 6% growth in real GDP in 2019, according to the International Monetary Fund—Panama is capitalizing on its highly-developed services sector.
The investment buzz in the central American country is cementing Panama’s place as a business and events hub for the region, with the opening of Tocumen International Airport’s Terminal 2 set to double passenger capacity this year, along with the launch of the new 24,000-capacity Amador Convention Center expected after its scheduled completion at the end of September 2019.
Geographically and logistically attractive, Elbaum points out that “costs are around 20% less in Panama than Brazil and Mexico.”
The rise of large events
The majority of events in the region are mini meetings of up to 30 people for healthcare and pharma companies, covering training or salesforce meetings, with around 75% of meetings lasting one to two days.
But this trend is changing, with growth in larger conventions. As companies globalize, they want to consolidate their events regionally,
looking at efficiency of cost and logistics. This can allow for more investment in the content, hiring external speakers, and having additional days to make the meeting more effective.
Lengthening lead times
Lead times for events in the region are currently around 30-45 days with pressure from political and economic uncertainties affecting business decisions.
While these short lead times are challenging in terms of venue availability and accommodation occupancy, increasing numbers of businesses are taking steps to better manage their events program.
As strategic meetings management matures, lead times will be positively affected in the next 18 months.
Gustavo Elbaum, Senior Director, Latin America, CWT Meetings & Events
New innovative venues in Latin America
Isla Secas Reserve & Lodge, Panama
For the ultimate luxury incentive, the nine villa Isla Secas reserve is a private island resort that opened in January 2019.
Its 1,556 solar panels power the island in an eco-friendly way, while fresh, local food brings a taste of Panama to guests.
The Grand Reserve at Paradisus Palma Real, Dominican Republic
The modern, elegant design of the resort is in tune with the natural environment, creating an ambience in which the connection with nature inspires unforgettable memories. Excellent suites, fully equipped lounges with the latest technology, wellness activities and luxurious amenities.
Buenos Aires Convention Centre, Argentina
This convention center’s innovative architectural design gives it column-free exhibition spaces for up to 5,000 people, while prioritizing sustainability. The center's innovative design features include solar panels, use of natural light to save energy, and rainwater collection for watering plants.
Source: CWT Global Data Aggregation - FY2018 – June 2019
Destinations on the rise in Latin America
Destinations on the rise are locations offering better value rates than first-tier cities. They are also becoming more attractive due to an increase in facilities including new hotels and M&E venues.
Meetings and events by numbers in Latin America
CWT Global Data Aggregation - FY2018 – June 2019
The winds of economic concern?
There is no doubt the Brexit vote in 2016 was the beginning of economic uncertainty around the euro zone. Nevertheless, economies and business bounded on with a positive outlook and finding opportunities to capitalize on currency fluctuations.
The uncertainty has given meeting planners some financial benefit.
London and the UK continue to be strong for meetings and events and the resulting devaluing of the pound has made the UK even more attractive.
Ian Cummings, Vice President, EMEA, CWT Meetings & Events.
No surprise then that London continues to top the region’s destinations, while Manchester is a key location to watch, with major development that include a second arena on the horizon, with a 20,000 capacity.
Economic concerns in many of the other large European economies, election uncertainties and social unrest has begun to take their toll on some of the larger corporations future spending and budgets. “Lead times are beginning to fall again” remarks Cummings, “companies are holding off on spends and cancellations are becoming more frequent again."
There are many forecasters talking of economic recession ahead and it’s likely the euro zone would be one of the first to feel it.
The Middle East continues to be back in vogue as a destination with great uplift and some of the top carriers in the world offering great value for money, plenty of new hotel openings and whole host of forthcoming major events such as the EXPO 2020 Dubai and the usual sporting events. Africa also remains a hot destination for incentives and the safari opportunities are expanding to new destinations such as Rwanda.
A sustainable future – legislating for change
When the French Parliament enacted its new Loi PACTE in April 2019 – otherwise known as the Action Plan for Business Growth and Transformation law – it signaled a drive to make businesses more sustainable.
The law created a new corporate form, called the société à mission. A company can register if it stipulates a mission, or social and environmental goals beyond profit. It must also form a second board, distinct from the board of directors, to evaluate progress.
“This is a huge movement that in five years, is expected to incorporate 10-20% of French companies,” explains Clarisse Charot, Sales Director, France, CWT Meetings & Events France. “Any business that wants to go on working with them will have to have the same ethos. It is a huge risk, but also a huge opportunity.”
Electric movement – the evolution of automotive
The investment in electric vehicles by all major manufacturers is expected to be very significant for the region as an automotive hub.
While challenges remain, including an increasingly regulated automotive industry, innovation is moving ahead—and with it is a need for training, product launches, sales conferences and immersive events.
Porsche is set to launch its electric Taycan by the end of the year, and Audi is hot on its heels with the e-Tron GT in 2020, with rumors of an electric Jaguar F-type in 2023, following closely behind.
Every manufacturer is investing in that area, and although the auto industry might be facing some challenges, investments across the board and a need to showcase new products at roadshows will continue, ensuring that sector remains buoyant.
Emerging destinations in Europe, the Middle East and Africa are increasingly popular. Possibilities abound in cities that offer value, excitement and inspiration.
Copenhagen has become renowned for its sustainability credentials, and is aiming to become the world’s first carbon neutral city by 2020. It is already well on the way, with more than 70% of its hotel rooms holding official eco-certification. It is also home to six hotels in the Brøchner and Arthur Hotel Group, the world’s first carbon neutral hotel group.
Other up-and-coming destinations include Athens, Greece; Budapest, Hungary; Dublin, Ireland; and Istanbul, Turkey.
New innovative venues in Europe, Middle East & Africa
Hamburg Messe CCH, Germany
Congress Center Hamburg is set to re-open in 2020 as the largest convention center in Germany, with state-of-the-art exhibition halls seating up to 12,000, all with low energy consumption, and designed to let light flow in.
Paris Expo Porte de Versailles, France
Pavilion 6 will be transformed with an urban farm atop its 150,000 sq ft (14,000 sq m) rooftop available in 2020 for team-building and other events. A rooftop bar and restaurant on the panoramic terrace will be run by Le Perchoir, serving food created with the farm’s organic produce.
Red Bull MK-7, Milton Keynes, UK
For the ‘wow’ factor, the new Red Bull MK-7 venue in Milton Keynes, UK, centers around an auditorium housing the team’s collection of racing cars dating back to 2005, with a separate mezzanine area and 22-seat boardroom. The venue can be hired exclusively for up to 450 guests for a reception.
Source: CWT Global Data Aggregation - FY2018 – June 2019
Destinations on the rise in Europe, Middle East & Africa
Destinations on the rise are locations offering better value rates than first-tier cities. They are also becoming more attractive due to an increase in facilities including new hotels and M&E venues.
Meetings and events by numbers in Europe, Middle East & Africa
Source: CWT Global Data Aggregation - FY2018 – June 2019
Growth continues in uncertain times
While the protests in Hong Kong caused immediate disruption to the M&E market, the longer-term outlook for the city and the wider Asia Pacific region remains strong.
Events and meetings due to be held in Hong Kong had to be rescheduled or relocated. Demand is still there despite short-term challenges, planners are starting to plan forward for the following year.
Sam Lay, Senior Director, Asia Pacific, CWT Meetings & Events
Fears about the potential detrimental impact of a prolonged US-China trade war on economies across the region have also caused some nervousness among companies.
Despite this cloud, there are dynamic opportunities in Southeast Asia with major corporates and multinationals relocating their production and manufacturing units to countries such as Thailand, Vietnam and Indonesia.
“Growing local talent pools, strong government incentives coupled with cost advantages puts these ASEAN markets in a strong position for future economic growth,” adds Lay. “Availability of quality tourism and hospitality infrastructure provides a strong catalyst for more global and regional meetings and events.”
Up and coming destinations
There is growing demand from event organizers for the region’s second and third tier cities and destinations beyond the key regional hubs.
Many groups are going to tier-two and tier-three cities in China. Japan is strong for incentives as groups prefer to go to a stable destination with cultural appeal and good infrastructure.
Bali remains an attractive incentive destination while Suwon in South Korea is benefiting from the opening of a new convention center. Malaysian cities such as Penang and Kuching are also competing for more M&E business.
“These tier two and three destinations are understanding more how this industry can bring benefits to their community and are putting themselves on the map as locations for meetings and events,” PCMA’s Codinach adds.
Australia continues to be a very strong and resilient market – both for inbound meetings and events, as well as domestic clients.
New innovative venues in Asia Pacific:
Yokohama Minato Mirai International Convention Center, Japan
Japan’s second largest city will see the opening of this latest addition to the PACIFICO Yokohama convention center in 2020, offering a 7,600 square meters hall and a range of other meeting spaces.
The Londoner Macao, China
The Sands Cotai Central resort in Macao is being given a London-themed makeover including a façade modeled on the Houses of Parliament and suites designed by former England footballer David Beckham. Events space of 34,300 square meters will include 13 ballrooms and six meeting rooms. The Londoner Macao opens in 2020.
